Corporatisation of Ordinance Factory Board

  • Consequent to the decision of the Government to convert Ordnance Factory Board (OFB), a subordinate office of Ministry of Defence (MoD) into one or more than one 100 per cent Government owned corporate entities,
    • the Government has constituted an Empowered Group of Ministers (EGoM), under the Chairmanship of Raksha Mantri,
    • to oversee and guide the entire process,
    • including transition support and redeployment plan of employees
    • While safeguarding their wages and retirement benefits.

The Terms of Reference (ToR) of the EGoM inter alia include:

  • Decision on conversion of OFB into a single Defence Public Sector Undertaking (DPSU) or as multiple DPSUs;
  • Matters related to various categories of employees including protection of their salary and pension of existing employees;
  • Financial support that may be provided to the entity/entities to make them economically viable and self-reliant;
  • Grandfathering of orders already being executed by OFB or for which facilities created in OFB;
  • Treatment for land assets of OFB.