Ordnance Factory Board (OFB): Details on conversion to 7 PSUs, reason of corporatization, assurance given to federation etc.

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Ordnance Factory Board (OFB): Details on conversion to 7 PSUs, reason of corporatization, assurance given to federation etc.

Ordnance Factory Board (OFB): Details on conversion to 7 PSUs, reason of corporatization, assurance given to federation etc.

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEPARTMENT OF DEFENCE PRODUCTION
LOK SABHA
UNSTARRED QUESTION NO.994
TO BE ANSWERED ON 3rd DECEMBER, 2021

ORDNANCE FACTORIES

994. SHRI RAM KRIPAL YADAV:
DR. KALANIDHI VEERASWAMY:
Will the Minister of DEFENCE be pleased to state:

(a) the total number of ordnance factories within the country, State/UT-wise including Tamil Nadu;

(b) whether the Government has dissolved the Ordnance Factory Board (OFB) and transferred its assets, employees and management to seven Public Sector Units (PSUs);

(c) if so, the details thereof along with the reasons for the corporatization of the OFB; and

(d) whether the assurances given to the federations in this context have not been fulfilled, if so, the details thereof and the stand of the Government thereon?

ANSWER

MINISTER OF STATE (SHRI AJAY BHATT) IN THE MINISTRY OF DEFENCE

(a) There are 41 Ordnance Factories in the country. STATE/UT-wise status of Ordnance factories including Tamil Nadu is appended below. Details are at Annexure-C

S. No. State/UT No. of Ordnance Factories
1 Chandigarh 01
2 Uttarakhand 02
3 Uttar Pradesh 09
4 Bihar 01
5 West Bengal 04
6 Madhya Pradesh 06
7 Maharashtra 10
8 Telangana 01
9 Tamil Nadu 06
10 Odisha 01
Total 41

(b) & (c) Yes Sir, to enhance functional autonomy, efficiency and unleash new growth potential and innovation in Ordnance Factories, the production units of Ordnance Factory Board have been converted into 7 Defence Public Sector Undertakings with 41 Units w.e.f. 1st October, 2021 (“Appointed Date”).

(i) The Government of India has transferred, with effect from the Appointed Date, the management, control, operations and maintenance of these 41 units to 7 Government companies (wholly owned by the Government of India), namely (i) Munitions India Limited, (ii) Armoured Vehicles Nigam Limited, (iii) Advanced Weapons and Equipment India Limited, (iv) Troop Comforts Limited, (v) Yantra India Limited, (vi)India Optel Limited, and (vii) Gliders India Limited (collectively “New DPSUs”) in respect of (a) production activities, viz production of arms, ammunitions, weapons, vehicles, defence equipment and non-defence equipment; and (b) identified non-production activities, as set out in Annexure A. The Government of India has also transferred, with effect from the Appointed Date, the management, control, operations and maintenance of certain identified non-production units of OFB and identified surplus land at 16 production units of OFB to the Directorate of Ordnance (Coordination & Services) (“Directorate”) under the DDP, as set out in Annexure B.

(ii) On and with effect from the Appointed Date, OFB, which has been set up vide Ministry of Defence letter no. 1(82)/78/D(Fy.I) dated 09.01.1979, has ceased to exist as a body.

(iii) The Government of India has also transferred all assets and liabilities of OFB to the New DPSUs and the Directorate as per the structure set out in Annexures A and B, with effect from the Appointed Date.

(iv) All the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units (as per the structure set out in Annexure A) have been transferred en masse to the New DPSUs on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the Appointed Date.

(v) All the employees of OFB (Group A, B & C) belonging to OFB HQ (at Kolkata), OFB New Delhi Office, OF Schools and OF Hospitals (Group A, B & C), have been transferred en masse to the Directorate under DDP, initially for a period of two years from the Appointed Date.

(d) The Government is committed to safeguard the interests of the employees of erstwhile Ordnance Factory Board (OFB), as mentioned at various forums including during interactions with the Federations. Accordingly the Government has taken the following steps:-

(i) All the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units (as per the structure set out in Annexure-A) have been transferred en masse to the new DPSUs on terms of foreign service, without any deputation allowance (deemed deputation) initially for a period of two years from the Appointed Date.

(ii) Till such time, the employees remain on deemed deputation to the new DPSUs, they shall continue to be subject to all the extant rules, regulations and orders as are applicable to the Central Government servants, including related to their pay scales, allowances, leave, medical facilities, career progression and other service conditions.

(iii) All the employees of OFB (Group A, B & C) belonging to OFB Head Quarter (at Kolkata), OFB New Delhi Office, OF Schools and OF Hospitals have been transferred en masse to the Directorate of Ordnance (Coordination & Services) under the Department of Defence Production, initially for a period of two years from the Appointed Date.

(iv) The pension liabilities of the retirees and existing employees will continue to be borne by the Government. For the employees recruited after 01.01.2004, National Pension Scheme applicable to the Central Government employees is in vogue and the same would be adopted by the new DPSUs, including continuation of all special provisions applicable to Central Government employees under the National Pension System.

****

ANNEXURE-A 

Structure for Transfer of Production Units and identified Non-Production Units to the 7 New
DPSUs

Sl.No. Name of transferring production unit Name of transferee New DPSUs and main objectives / business
1. Ammunition Factory Khadki Munitions India Limited. This DPSU will be engaged in the business of manufacturing ammunition and explosives. Registered and corporate office: Ammunition Factory Khadki, Pune, Maharashtra, India, 411003
Cordite Factory Aruvankadu
High Energy Projectile Factory Tiruchirappalli
High Explosive Factory Khadki
Ordnance Factory Bhandara
Ordnance Factory Bolangir
Ordnance Factory ChandaChandrapur
Ordnance Factory Dehu Road
Ordnance Factory Itarsi
Ordnance Factory Khamaria
Ordnance Factory Nalanda
Ordnance Factory Varangaon
2. Engine Factory Avadi Armoured Vehicles Nigam Limited. This DPSU will be engaged in the business of manufacturing vehicles. Registered and corporate office: HVF Road, Bhaktavatsalapuram, Avadi, Chennai, Tamil Nadu, India, 600054
Heavy Vehicle Factory Avadi
Machine Tool Prototype Factory Ambernath
Ordnance Factory Medak
Vehicle Factory Jabalpur
3. Field Gun Factory Kanpur Advanced Weapons and Equipment India Limited. This DPSU will be engaged in the business of manufacturing weapons and equipment. Registered and corporate office: Ordnance Factory Kanpur, Kalpi Road, Kanpur, Uttar Pradesh, India, 208009
Gun Carriage Factory Jabalpur
Gun and Shell Factory Cossipore
Ordnance Factory Kanpur
Ordnance Factory Project Korwa
Ordnance Factory Tiruchirappalli
Rifle Factory Ishapore
Small Arms Factory Kanpur
4. Ordnance Clothing Factory Avadi Troop Comforts Limited. This DPSU will be engaged in the business of manufacturing troop comfort items. Registered and corporate office: C/o Ordnance Factory Equipment, Headquarter G T Road, Kanpur, Uttar Pradesh, India, 208013
Ordnance Clothing Factory Shahjahanpur
Ordnance Equipment Factory Kanpur
Ordnance Equipment Factory Hazratpur
5. Grey Iron Foundry Jabalpur Yantra India Limited. This DPSU will be engaged in the business of manufacturing Military Grade components and Ancillary products. Registered and corporate office: C/o The General Manager Ordnance Factory, Ambajhari Amravati Road Ambajhari, Nagpur, Maharashtra, India, 440021
Metal and Steel Factory Ishapore
Ordnance Factory Ambernath
Ordnance Factory Ambajhari
Ordnance Factory Bhusawal
Ordnance Factory Dumdum
Ordnance Factory Katni
Ordnance Factory Muradnagar
6. Ordnance Cable Factory Chandigarh India Optel Limited. This DPSU will be engaged in the business of manufacturing opto-electronic items. Registered and corporate office: C/oOpto Electronic Factory, Raipur,Dehradun, Uttarakhand, India, 248008
Ordnance Factory Dehradun
Opto-Electronics Factory Dehradun
7. Ordnance Parachute Factory Kanpur Gliders India Limited. This DPSU will be engaged in the business of manufacturing parachutes.Registered and corporate office: C/o Ordnance Factory Equipment Headquarter, G T Road, Kanpur, Uttar Pradesh, India, 208005

 

Sl.No. Name of transferring non-production unit Name of transferee New DPSUs
1. Ordnance Factories Institute of Learning, Khamaria Munitions India Limited
National Academy of Defence Production, Ambajhari
Regional Controllerate of Safety Pune.
Regional Marketing Centre, Pune
2. Ordnance Factories Institute of Learning, Ambernath Armoured Vehicles Nigam Limited
Ordnance Factories Institute of Learning, Avadi
Ordnance Factories Institute of Learning, Medak
Regional Controllerate of Safety, Avadi
Regional Marketing Centre, Chennai
AV Head Quarter, Avadi
OFB Mumbai Office
3. Ordnance Factories Institute of Learning, Ishapore Advanced Weapons and Equipment India Limited
Regional Controllerate of Safety, Kanpur
4. Ordnance Factories Institute of Learning, Kanpur* Troop Comforts Limited
OEF Head Quarter, Kanpur
5. Ordnance Factories Institute of Learning, Ambajhari Yantra India Limited
Regional Controllerate of Safety, Ambajhari
Regional Controllerate of Safety, Ishapore
Ordnance Factory Recruitment Centre located in NADP premises at Ambajhari
Regional Marketing Centre, New Delhi
6. Ordnance Factories Institute of Learning, Dehradun India Optel Limited

 

Sl.No. Name of the asset Name of transferee New DPSUs and % of paid-up equity share capital of the asset
1. Indo-Russia Rifles Private Limited (IRRPL) Advanced Weapons and Equipment India Limited;42.5% of the paid-up equity share capital of IRRPL
Munitions India Limited;8% of the paid-up equity share capital of IRRPL

*Ordnance Factories Institute of Learning, Kanpur would continue to cater to the training needs of the staff of Gliders India Limited.

****

ANNEXURE-B 

Structure for Transfer of identified Non-Production Units and Surplus Land to the Directorate of Ordnance (Coordination & Services)

Sl.No. Name of transferring non-production unit
1. OF Hospitals / independent dispensaries Metal and Steel Factory Ishapore
Ammunition Factory Khadki
Ordnance Factory Kanpur
Ordnance Factory Khamaria
Gun and Shell Factory Cossipore
Ordnance Equipment Factory Kanpur
Ordnance Clothing Factory Shahjahanpur
Gun Carriage Factory Jabalpur
Vehicle Factory Jabalpur
Heavy Vehicle Factory Avadi
Ordnance Factory Ambernath
Cordite Factory Aruvankadu
Ordnance Factory Medak
Ordnance Factory Muradnagar
Ordnance Factory Bhandara
Ordnance Factory ChandaChandrapur
Ordnance Factory Ambajhari
Ordnance Factory Varangaon
Ordnance Factory Dehradun
Ordnance Factory Katni
Ordnance Factory Tiruchirappalli
Ordnance Factory Itarsi
Ordnance Factory Dehu Road
Ordnance Factory Bolangir
Ordnance Factory Bhusawal
Ordnance Cable Factory Chandigarh
Ordnance Equipment Factory Hazratpur
Ordnance Factory Project Nalanda
Ordnance Factory Project Korwa
2. OF Schools Ordnance Factory Bhandara
Ordnance Factory Ambarnath
Ordnance Factory Ambajhari
Ordnance Factory Bhusawal
Ordnance Factory Chandrapur
Ordnance Factory Varangaon
Ordnance Factory Itarsi
Ordnance Factory Katni
Gun Carriage Factory Jabalpur
Ordnance Factory Khamaria
Vehicle Factory Jabalpur
Cordite Factory Aruvankadu
Ordnance Factory Tiruchirappalli
Ordnance Clothing Factory Avadi
Ordnance Factory Badmal
Gun and Shell Factory Cossipore
Metal and Steel Factory Ishapore
Rifle Factory Ishapore
Ordnance Factory Dum Dum
Ordnance Factory Muradnagar
Ordnance Clothing Factory Shajahanpur
Ordnance Equipment Factory Kanpur
Ordnance Factory Kanpur
Ordnance Factory Dehradun
3. OFB Head Quarter Units OFB Head Quarter (located at Kolkata) and OFB New Delhi Office
4. Identified surplus land of 3152.11 acres located at 16 Ordnance factories, as follows:

(a) Ordnance Factory Bhandara: 420 acres
(b) Ordnance Factory Ambernath: 168.32 acres
(c) Ordnance Factory Ambajhari: 552 acres
(d) Ordnance Factory Varangaon: 140 acres
(e) Ordnance Factory Itarsi: 585 acres
(f) Ordnance Factory Katni: 45 acres
(g) Gun Carriage Factory Jabalpur: 168 acres
(h) Ordnance Factory Khamaria: 307 acres
(i) High Energy Projectile Factory Tiruchirappalli: 288.55 acres
(j) Ordnance Factory Tiruchirappalli: 160 acres
(k) Heavy Vehicle Factory Avadi: 43.81 acres
(l) Ordnance Factory Medak: 36 acres
(m) Metal and Steel Factory Ishapore: 36.09 acres
(n) Ordnance Factory Muradnagar: 87.35 acres
(o) Ordnance Clothing Factory Shahjahanpur: 52.02 acres
(p) Ordnance Factory Kanpur: 62.97 acres

ANNEXURE-C

Ordnance Factories (State/UT-wise)

S. No.  Factory  Location  State  Defence PSU
1 Ammunition Factory Khadki (AFK)  Pune  Maharashtra  Munitions India Limited
2  Cordite Factory (CFA)  Aruvankadu  Tamil Nadu  Munitions India Limited
3  Engine Factory Avadi (EFA)  Chennai  Tamil Nadu  Armoured Vehicles Nigam Limited
4 Field Gun Factory, Kanpur (FGK)  Kanpur  Uttar Pradesh Advanced Weapons and Equipment India Limited
5  Gun Carriage Factory Jabalpur (GCF)  Jabalpur  Madhya Pradesh  Advanced Weapons and Equipment India Limited
6  Grey Iron Foundry (GIF)  Jabalpur  Madhya Pradesh  Yantra India Limited
7  Gun and Shell Factory (GSF)  Kolkata  West Bengal  Advanced Weapons and Equipment India Limited
8 Heavy Alloy Penetrator Project (HAPP)  Tiruchirappalli  Tamil Nadu  Munitions India Limited
9  High Explosives Factory (HEF)  Pune  Maharashtra  Munitions India Limited
10 Heavy Vehicles Factory, Chennai (HVF)  Chennai  Tamil Nadu Armoured Vehicles Nigam Limited
11  Machine Tool Prototype Factory Ambernath (MPF)  Mumbai  Maharashtra  Armoured Vehicles Nigam Limited
12  Metal and Steel Factory (MSF)  Kolkata  West Bengal  Yantra India Limited
13 Ordnance Clothing Factory Avadi (OCFAV)  Chennai  Tamil Nadu Troop Comforts Limited
14  Ordnance Factory Chandigarh (OCFC)  Chandigarh  Chandigarh (UT)  India Optel Limited
15  Ordnance Clothing Factory (OCFS)  Shahjahanpur  Uttar Pradesh  Troop Comforts Limited
16  Ordnance Equipment Factory Kanpur (OEFC)  Kanpur  Uttar Pradesh  Troop Comforts Limited
17  Ordnance Equipment Factory Hazratpur (OEFHZ)  Hazratpur  Uttar Pradesh  Troop Comforts Limited
18  Ordnance Factory Ambernath (OFA)  Mumbai  Maharashtra  Yantra India Limited
19  Ordnance Factory Ambajhari (OFAJ)  Nagpur  Maharashtra  Yantra India Limited
20  Ordnance Factory Bhandara (OFBA)  Bhandara  Maharashtra  Munitions India Limited
21  Ordnance Factory Bhusawal (OFBH)  Bhusawal  Maharashtra  Yantra India Limited
22  Ordnance Factory Bolangir (OFBOL)  Bolangir  Odisha  Munitions India Limited
23  Ordnance Factory Kanpur (OFC)  Kanpur  Uttar Pradesh  Advanced Weapons and Equipment India Limited
24  Ordnance Factory Chandrapur (OFCH)  Chandrapur  Maharashtra  Munitions India Limited
25  Ordnance Factory Dumdum (OFDC)  Kolkata  West Bengal  Yantra India Limited
26  Ordnance Factory Dehu Road (OFDR)  Pune  Maharashtra  Munitions India Limited
27  Ordnance Factory Dehradun (OFDUN)  Dehradun  Uttarakhand  India Optel Limited
28  Ordnance Factory Itarsi (OFI)  Itarsi  Madhya Pradesh  Munitions India Limited
29  Ordnance Factory Khamaria (OFK)  Jabalpur  Madhya Pradesh  Munitions India Limited
30  Ordnance Factory Katni (OFKAT)  Katni  Madhya Pradesh  Yantra India Limited
31 Ordnance Factory Muradnagar (OFM)  Muradnagar  Uttar Pradesh  Yantra India Limited
32  Ordnance Factory Project (OFN)  Nalanda  Bihar  Munitions India Limited
33  Ordnance Factory Project Korwa (OFPKR)  Korwa  Uttar Pradesh Advanced Weapons and Equipment India Limited
34  Ordnance Factory Project Medak (OFPM)  Hyderabad  Telangana  Armoured Vehicles Nigam Limited
35  Ordnance Factory Tiruchirappalli (OFT)  Tiruchirappalli  Tamil Nadu  Advanced Weapons and Equipment India Limited
36  Ordnance Factory Varangaon (OFV)  Varangaon  Maharashtra  Munitions India Limited
37  Opto Electronics Factory (OLF)  Dehradun  Uttarakhand  India Optel Limited
38 Ordnance Parachute Factory (OPF)  Kanpur  Uttar Pradesh  Gliders India Limited
39  Rifle Factory Ishapore (RFI)  Kolkata  West Bengal  Advanced Weapons and Equipment India Limited
41  Small Arms Factory (SAF)  Kanpur  Uttar Pradesh  Advanced Weapons and Equipment India Limited
41  Vehicle Factory Jabalpur (VFJ)  Jabalpur  Madhya Pradesh  Armoured Vehicles Nigam Limited

ordnance-factory-board-ofb-details-on-conversion-to-7-psus

Source: Lok Sabha PDF

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