THE Defence Ministry has dissolved the Ordnance Factory Board (OFB) with effect from October 1 and transferred its assets, employees and management to seven public sector units (PSUs), according to an official order. As part of the “Atmanirbhar Bharat” (self-reliant India) package, the Central Government had announced on May 16 last year that it would improve autonomy, accountability and efficiency in ordnance supplies by corporatisation of the OFB. In an order dated September 28, the Defence Ministry said: “Government of India has decided to transfer, with effect from October 1, 2021, the management, control, operations and maintenance of these 41 production units and identified non-production units to seven Government companies (wholly owned by the Government of India).”

 

According to the order, the name of the seven Defence Public Sector Undertakings (also called DPSUs) are Munition India Limited, Armoured Vehicles Nigam Limited, Advanced Weapons and Equipment India Limited, Troop Comforts Limited, Yantra India Limited, India Optel Limited and Gliders India Limited. The order said: “Government has decided that all the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units… shall be transferred en masse to the new DPSUs on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of 2 years from the appointed date (October 1).”