Ordnance Factory Board to be made 100% govt equity firm

New Delhi, Aug 16 (IANS) The Defence Ministry on Friday clarified there is no proposal to privatise the Ordnance Factory Board (OFB) whose employees had called for a 30 days' strike.

Officials have termed reports about privatisation of the OFB merely as rumours that are misleading in nature.

A Defence Ministry panel of senior officials constituted to deal with concerns of the agitated employees instead said that there is a proposal to convert the OFB into Defence Public Sector Undertakings (DPSUs) that will have 100 per cent government equity.

The panel, headed by the additional secretary in the department of defence production, met the agitating employees on Friday. Office bearers of four employees' associations had given a 30-day strike call from August 20 against the proposal to privatise the OFB.

The associations include the All India Defence Employees Federation, Indian National Defence Workers Federation, Bhartiya Pratiksha Mazdoor Sangh and Confederation of Defence Recognized Association.

The panel said that rumours are being spread about privatising the OFB in order to mislead workers.

"Corporatisation of OFB will bring it at par with other DPSUs of the Defence Ministry. This is in the interest of OFB as it will provide it with operational freedom and flexibility. Interests of workers will also be adequately safeguarded," said an official.

The panel highlighted to the employees' associations that the government is continuously trying to strengthen the functioning of OFB, including steps taken to modernise factories, carry out capital upgradation, re-train and re-skill employees, and enable development of products and components with indigenous technology.