Who Will Be Held Responsible If 7 OFB & Non-Viable Corporations Fail, Ask Federations

AIDEF and BPMS raise series of questions before the government regarding the road ahead for OFBs and employees

The Secretary (DP) of the DDP had today, convened a meeting with the recognized Federations of Defence Civilian employees to discuss point Corporatization issues objecting the employees of Ordnance Factories. Secretary (DP) asked from the Federations the Agenda Points for the meeting.


Since the INDWF is now not a part of the Joint Action Committee against Corporatization of OFB, The AIDEF and BPMS forwarded a joint letter to the Secretary DP in which they have told that their single point Agenda is withdrawal of Corporatization since this is the major reason for all problem. They have further asked 12 important questions / queries about the future of the 7 non-viable corporatizations and the status of the employees. In the meeting held on 27/08/2021 AIDEF & BPMS raised the same queries. Responding to the queries the Secretary stated the following :-

  1. The 7 Corporations will remain as 100% Government entity
  2. Service Conditions of the employees will be protected so far they remain as Central Government Employees
  3. Cabinet has not taken any decision to close any factory or privatize
  4. During the two years deputation period the corporations will frame the service conditions of the employees and there after option will be asked
    from the employees whether they wanted to be absorbed in the corporation or remain as Government employees. If more number of employees opt to
    remain as Government employees then the matter shall be brought to the notice of EGOM
  5. For NPS employees so far they remain as Government employees whatever available to the Government employees will be applicable to them
  6. In the case of employees governed under old pension scheme, pension will be paid for the period of service rendered in government service from the
    consolidated fund of India/ Defence Services estimates
  7. No specific assurance can be given on workload

Responding to above statement of the Secretary DP representatives of AIDEF and BPMS have stated that the employees are having a mistrust on DDP since for the past 5 years none of the demands / grievances of the employees of Ordnance Factories such as piece work correlation, DOT to piece workers, incentive for all employees, cadre restructuring, NDA ceiling, HPCA / PCA for paramedical Staff, one time relaxation for compassionate appointment are settled by the DDP, rather all these proposals are either turned down by the DDP or kept in cold storage. Therefore employees are not ready to accept corporatization.

www.indianpsu.com accessed a copy of the Joint letter written by AIDEF and BPMS on 24/08/2021. The contents of the letter is published here for the object of our viewers who are closely watching the developments in the Ordnance Factories.

You will appreciate that in any bipartite meeting the Record of Discussion/ Minutes of the Meeting are always issued after vetting and concurrence by both the side. However, unfortunately the Minutes / RoD of the meeting held with the Hon’ble RM on 16.07.2021 was issued unilaterally without recording the views expressed by us and the other Federation without our vetting of the draft Minutes. Vide our Letter referred at 2 above we have objected the RoD and have proposed amendments to be carried out in the RoD, and for redrafting the Minutes.

We regret to inform you that no action has been taken on that by the DDP. We hope in future Minutes / RoD will be issued after our vetting as in practice. Apart from the above we have written to the RM and your goodself protesting against the DDPs decision to abolish vacant posts and to handover the Ordnance Factory Hospitals to the ESIC. For these Letters referred to at 2, 3 and 4 above, so far we have not received any reply from your Office. This is against the MoD / DOPT instructions about dealing with recognized Federations.

You are aware that the entire workforce of the Ordnance Factories have rejected the Government decision to splinter the 41 Ordnance Factories into 7 non viable Corporations (in case of any doubt by the DDP a Referendum may be held amongst the employees of all the 41 Ordnance Factories, OFB Headquarters and other Offices under OFB.) Accordingly, AIDEF and BPMS vehemently opposed and protested against the decision of the Government to corporatize the Ordnance Factories, which we have conveyed to the Hon’ble RM on 16.07.2021 in the meeting held with him. Moreover, you are well aware that other than INDWF and all other Organizations including AIDEF, BPMS, CDRA (recognized) NPDEF and AIBDEF (unrecognized) and even IOFSOA is opposing Corporatization. We continue to oppose the Government decision to corporatize and splinter the Ordnance Factories into 7 pieces, since we are convinced that this decision of the Government is neither in the interest of the Security, Armed Forces, Defence Preparedness nor the entire workforce of the Ordnance Factories.

At present vide Letter referred at 1 above you have asked Agenda / issues from us for discussion in the meeting. The issue of the future of the entire workforce of Ordnance Factories including their service conditions are closely related to the working and existence of the 7 non viable Corporations. Hence the Federations have got every right to know about the viability of this most hastily and unilaterally established Corporations.

In this regard without prejudice to our right to continue to oppose and fight against Corporatization of the Ordnance Factories in whatever manner possible, we would like to know the following from the DDP before we submit our Agenda Points.

1) Whether any road map has been prepared by the DDP for the survival and sustainability of the 7 non viable corporations.
2) Whether all the 41 Factories will be ensured with full workload for fully utilizing the available capacity both plant and machinery and human resources.
3) Whether is there any guarantee that none of the Factories will be closed / privatized.
4) The two models of Corporatization of Government Departments / Organizations viz. BSNL and STMCIL are failure models and both the industries and its employees are struggling for their existence. When this is the fact how the new 7 Corporations will be a success which depends on a single customer base.
5) What is the logic of splintering the 41 Ordnance Factories into 7 non viable Corporations / Companies.
6) Please clarify how the 7 Corporations will together achieve Rs. 30,000 crore turnover by 2025. Is there any white paper available with the Government in this regard.
7) Is there any accountability for the DDP and consultants if the 7 Corporations fails.
8) The selection of CMDs and Directors are challenged by the IOFS Officers themselves. Is it the beginning of launching unfair practices, nepotism and favoritism.
9) Kindly give us a copy of the cabinet note along with all its enclosures including the Minutes of the EGOM Meetings for transparency.
10) Whether all the existing employees on the strength of the Ordnance Factories will remain as Central Government Employees / Defence Civilian Employees till their superannuation.
11) Whether the interest of NPS Employees to claim their rights for guaranteed Pension under CCS (Pension) Rules, 1972 will be guaranteed.
12) Whether the payment of Pension and other terminal benefits for the employees governed under CCS (Pension) Rules, 1972 will be from the Consolidated Fund of India / Defence Services Estimate.

After receipt of reply from your office on all the above issues, we shall be submitting the Agenda Points for discussion in the scheduled meeting. However, we shall be attending the meeting on 27.08.2021 to convey our views.

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