CORPORATISATION OF ORDNANCE FACTORIES

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

• 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.
• 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 the continuation of all special provisions applicable to Central Government employees under the National Pension System.

The Ministry has received representations from the erstwhile OFB employees’ Federations and Associations. The Department has held several discussions at various levels with them regarding their concerns about the service conditions of the employees of the erstwhile OFB. It has been explained and assured to them that the service conditions of the employees of the erstwhile OFB would continue as Central Government employees till they are on deemed deputation to the new DPSUs.

The employees of the erstwhile OFB belonging to the production units and also the identified non-production units are on deemed deputation to the seven new corporations initially for a period of two years from the Appointed Date, that is from 01.10.2021.

Currently, 115 contracts with contract value of Rs. 79,834.05 crore are available with the seven new Corporations.

This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Binoy Viswam in Rajya Sabha on February 07, 2022.