New Delhi: The government on Monday said that steps have been taken to safeguard the interests of employees of the Ordnance Factory Board (OFB) after it is split into seven state-owned corporate entities.
In a major reform initiative, the government last month approved a long-pending proposal to restructure the OFB which operates 41 ammunition and military equipment production facilities across the country to improve its accountability, efficiency and competitiveness.
"The government has ensured safeguarding the interests of the employees of Ordnance Factory Board (OFB) post corporatisation of the OFB," said Minister of State for Defence Ajay Bhatt while replying to a question in the Rajya Sabha.
The decision to corporatise the OFB on the lines of defence public sector undertakings was taken nearly two decades after the reform measure was first mooted to bring professionalism and significantly enhance its productivity.
Bhatt said all the employees of the OFB (Group A, B and C) who have been working in the production units and also the non-production units will be handed over to the new DPSUs.
"It has been decided that all the employees of OFB belonging to the production units and also the non-production units being handed over to the new DPSUs (to be formed) would be transferred to these DPSUs on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the appointed date," he said in a written reply.