Newly Carved Out Ordnance Factory Corporations In Deep Crisis Within 5 Months

The Government of India has rolled out 7 Corporations of Ordnance Factories with lot of fan-fare claiming it has a de-project of the Department of Defence Production. However, the Federations of the Defence Civilian Employees of these Factories were opposing the decision of the Govt and have challenged the same in the Madras High Court.

They are all along claiming that the Corporations will be non-viable since the Ordnance Factories were not established as a Commercial Entity and that the Ordnance Factories should be treated at par with Army, Navy & Air Force since Ordnance Factories are the fourth Force of the Defence of the Country and it should continue to remain as a war reserve for meeting any exigencies. Within 5 months of the implementation of Corporatisation of Ordnance Faactories the Federations have already brought to the notice of the Defence Minister and the Defence Ministry senior officials about the various problems being faced by the Ordnance Factories and its employees.
Today AIDEF, BPMS & CDRA have submitted a Joint letter to Singh, Defence Minister wherein they have stated their apprehension which they have told several times to the Government that Corporatisation is going to seriously affect the existence of Ordnance Factories as come true since one of the Corporation YIL is facing deep financial crisis even to pay salary for the employees and hence YIL has taken Rs.450 crores loan from SBI. They have demanded in their letter that the DEfence Minister may reconsider the corporatization decision and may withdraw the same and should allow the Ordnance Factories to continue to be a Government organization.

www.indianpsu.com accessed a copy of the Joint letter dt.10.02.2022 addressed to Rajnath Singh, Defence Minister and the same is published here for the information of our viewers.

To
Shri.Rajnath Singh Ji,
Hon’ble Defence Minister
Government of India,
New Delhi – 110 001.

Sub: Pathetic situation of Yantra India Ltd., within 5 months of Corporatisation.

Respected Sir,
The Hon’ble RM has assured us that even after Corporatisation of Ordnance Factories the Government will extend all support to the Ordnance Factories for its survival. However within a period of 5 months majority of the Ordnance Factories are facing various problems. Employees are not getting their own GPF money on time, Pension papers are getting delayed, NPS contribution submission is getting delayed, medical reimbursement claims etc. are not being paid on time on the plea of shortage of funds. The rosy picture painted by the DDP that the total turnover will increase to Rs.30,000/ crore by 2024-25, the expert will be 25% of their turnover by 2024-25, the self-reliance on technology will increase to 75% by 2028-29, from above 20% of the value of OFB production, thereby reducing dependents on imported technology and ushering greater self-reliance has been proved to the False. The story after almost five months is that some of the new DPSUs may default even in payment of salaries. To make payment of salaries to its employees and to meet other expenditure Yantra India Limited, Nagpur already availed loan of Rs.450.00 Crores from State Bank of India, this is just beginning.

Our apprehension which we have repeatedly communicated to the DDP in all the meetings held with us that Government decision of Corporatisation is going to badly affect the Ordnance Factories and it will be very difficult for the Ordnance Factories to survive and it will be liquidated which will have very serious impact on the National Security and Defence Preparedness of our Country have come true. Moreover the future of the employees also will be in stake, if this situation continues.

In view of the above, it is requested that now at least the Hon’ble RM may kindly reconsider the decision of Corporatising the Ordnance Factories and withdraw the same and permit the Ordnance Factories to continue as Government Organisation as it was existing on 30.09.2021. Moreover for further effective functioning of the Ordnance Factories the alternative proposals and the robust proposals given by the Federations may be favorably considered and implemented by holding discussions with us.

Awaiting for your earlier and favorable decision please.