Uncertainty Looms Over Future of 63,000 Ordnance Factory Employees as Deemed Deputation Ends on December 31, 2025
AIDEF, INDWF, BPMS, and CDRA – have jointly opposed any attempt to push employees out on grounds of surplus
As the fourth year of the corporatization of Ordnance Factories draws to a close on December 31, 2025, the fate of nearly 63,000 Defence Civilian Employees remains uncertain. These employees, originally Central Government staff, have been on deemed deputation in the newly created seven Defence Public Sector Undertakings (DPSUs) carved out of the 41 Ordnance Factories. Their deputation too ends on the same day.
The government has constituted a committee of senior retired officers to suggest measures for the way forward, including:
- Absorption of employees into the seven DPSUs,
- Introduction of Voluntary Retirement Scheme (VRS) / Special VRS, particularly for those under the Old Pension Scheme, and
- Redeployment options for those unwilling to join the DPSUs.
Adding to the anxiety, the Empowered Group of Ministers (EGoM) has already slashed the sanctioned strength of the 07 DPSUs, reducing posts from 1.44 lakh to just 58,903. Currently, 61,783 employees remain on roll in the DPSUs, creating a surplus situation if they all continue as government employees.
The major federations and associations – AIDEF, INDWF, BPMS, and CDRA – have jointly opposed any attempt to push employees out on grounds of surplus. In their letter to Defence Minister Rajnath Singh, Chairman of the EGoM, and five other senior ministers including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, they reminded the government of its written commitment before the High Courts.
In an affidavit before the Madras High Court, the Ministry of Defence had categorically assured that employees unwilling to get absorbed into the DPSUs would continue as Central Government employees on deemed deputation till their retirement. This assurance has now been reinforced in a joint circular issued on September 1, 2025, along with an advance option form circulated to the 61,783 deputed employees to formally state their choice.
The federations have made it clear that the employees intend to remain as Central Government Employees till retirement, rejecting absorption into the DPSUs.
Now, Defence Minister Rajnath Singh, who had earlier assured unions that employees’ service conditions would be protected, faces the challenge of ensuring the government honours its commitments.
With federations gearing up for a strike action, the situation is turning tense in Ordnance Factories across the country.
The letter written by the four unions to Raksha Mantri Rajnath Singh and copies sent to the Group of Ministers is given below for the benefit of the viewers of www.indianpsu.com –
