GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEPARTMENT OF MILITARY AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO. 2455
TO BE ANSWERED ON 08th August, 2022

CENTRAL ORDNANCE DEPOT

2455 DR. SANTANU SEN:
Will the Minister of Defence be pleased to state:

(a) the reasons behind the delay in orders of over ₹700 crore which have not been met for 19 years by Central Ordnance Depot (COD), Agra as per the CAG report on inventory management in ordnance services;

(b) the details of such delay in orders across the Ordnance Depots in the country; and

(c) by when such orders will be met across the Ordnance Depots?

ANSWER

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

(a)& (b): The orders have been pending from different defence industries, including erstwhile Ordnance Factory Board (OFB), DPSUs and Private industries over many years. The reasons for delays have been obsolescence, time taken in trials/specialized testing, capacity limitations, delay in receipt of product support from the Original Equipment Manufacturers (OEMs). These reasons have led to delays in supplies of stores (less ammunition) worth Rs. 991.03 Cr. of all CODs from erstwhile OFB and DPSUs.

(c): In Order to streamline production, shorten the delays and to improve their accountability, OFB has been reorganized into 7 new DPSUs for meeting supply targets across the Ordnance Depots

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Payment of Productivity Linked Bonus to Civilian Employees of Defence Production Establishments for the year 2019-20

No.10(1)/2020-D(Est LING)
Government of India,
Ministry of Defence,
(Deptt, Of Defence Production)
New Delhi

Dated: the 23rd Oct, 2020

To
The Chairman.
Ordnance Factory Board,
10A, S. K. Bose Road.
Kolkata- 700 001.

The Controller General of Defence Accounts.
New Delhi.
The Director general of Quality Assurance,
New Delhi.
The Director General of Aeronautical Quality Assurance,
New Delhi.

Subject: Payment of Productivity Linked Bonus to Civilian Employees of Defence Production Establishments for the year 2019-2020.

Madam / Sir,

I am directed to refer to this Ministry’s letter No.48(4)/98/D(B&C) dated 27th July, 2000 on the above subject and to convey the sanction of the President to payment of Productivity Linked Bonus for the year 2019-20 equivalent to 37 days wages to the eligible employees in Defence Production Establishments as mentioned therein with an overall ceiling of wages of Rs.7000/- per month. PLB is to be calculated taking average number of days per month as 30.4 days.

02. The casual labour who has worked for at least 240 days, in each year, for 03 years or more, will be eligible for this PLB payment. The amount will be paid on a notional monthly wages of Rs.1200/-. In case where the actual emoluments fall below Rs.1200/- per month, the amount will be calculated on actual monthly emoluments, All payments under these orders will he rounded oft’ to the nearest rupee.

3. The above sanction is subject to the following condition:-

(a) OFB will submit a monthly status report on the progress achieved to review the formula for calculation of PLB which otherwise would have been reviewed after three years from implementation i.e, from the accounting year 1999-2000.

(b) GMs each of the respective factories should submit the Certificate regarding standard man-hours for jobs whenever there is a change in production processes or when new labour saving machines are introduced, incorporating the following details:

• Standard Man Hours before the installation of CNC Machines.
• Standard Man Hours after the installation of CNC Machines,
• Difference between the above two leading to savings in Standard Man Hours.

In the event of more than one CNC’ Machine being installed on two different occasions, each t me figures are to be updated for additional subsequent addition of CNC Machine.

(c) The financial implications on this account would be met from your existing sanctioned Budget of FY 2020-21 without any additionality from the Government.

4. It is also advised that formula for working out PLB may be revisited/re-examined for future years. However since PLB for the current year has been computed as per the approved formula. the proposal of OFB for Payment of 37 days PLB for 2019-20 to the 75016 eligible employee of OFB, DGQA, DGQAQA and DAD working in OFB is sanctioned.

5. The expenditure will be debited to Major head 2079 of the Defence Service Estimates (Ordnance Factories) from the existing budget provisions for the F.Y. 2020-21 and to the respective Heads to which the pay and allowances of employees of allied establishments are debited.

6. This issues with the concurrence of Ministry of Finance vide ID No.7-39/2007-E-III(A), dated 21.10.2020/eFTS 1506055/2020 and MoD (Finance Division) vide N-23 dated 23.10.2020 in MoD File No. 10(1)/2020-D(Estt/NG).

(ManishaBhatnagar)
Deputy Secretary to the Govt. of India

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Corporatisation of Ordnance Factory Board: Ministry of Defence

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 Shri Rajnath Singh, to oversee and guide the entire process, including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits. Other ministers in the EGoM are Home Minister Shri Amit Shah, Finance Minister Smt Nirmala Sitharaman, Minister for Law & justice Shri Ravi Shankar Prasad, Minister of State for Labour & Employment Shri Santosh Kumar Gangwar and Minister of State for Personnel, Public Grievance & Pension Dr Jitendra Singh.

Also check: Ordnance Factory Board (OFB) has designated 285 beds for isolation wards in handling Coronavirus (COVID-19) cases

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

(1) Decision on conversion of OFB into a single Defence Public Sector Undertaking (DPSU) or as multiple DPSUs;

(2) Matters related to various categories of employees including protection of their salary and pension of existing employees;

(3) Financial support that may be provided to the entity/entities to make them economically viable and self-reliant;

(4) Grandfathering of orders already being executed by OFB or for which facilities created in OFB;

(5) Treatment for land assets of OFB.

The composition of EGoM along with ToRs have been communicated to the OFB and various Federations, Unions and Associations at Board/ Factory/Unit level and they have been requested to place all their suggestions, issues and concerns relating to corporatisation of OFB before the EGoM.

The Department has also selected M/s KPMG Advisory Services Pvt. Ltd. (Lead Consortium Member) with M/s Khaitan& Co. Ltd. as another Consortium Member, as the Consultancy Agency for providing strategic and implementation management consulting services to assist the Department of Defence Production in the process of corporatisation of the OFB

Source: PIB

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No. 50(50)2018-D (Estt/NG)
MINISTRY OF DEFENCE
DEPARTMENT OF DEFENCE PRODUCTION
D(Estt/NG)/ Sena-Bhawan

Subject: Up gradation of pay scale for Laboratory Technicians working in the DGOF Organisation – Clarifications regarding

Refer OFB ID No. 044/01/15/ NIE/PER/M dated 30.07.2018 & 042/BPMS/CAT/ PER/M dated 25.11.2019 on the above mentioned Subject.

2. Clarification/ comments with regard to (i) the review of ACP/ MACP benefits for awarding Grade Pay Rs. 4600 to Laboratory Technicians in OFB Hospitals who has already been awarded ACP-I in the scale of Rs. 5000-8000 corresponding to Grade Pay Rs. 4200 and (ii) grant of Upgraded Pay to Laboratory Technicians who do not possess qualification as per RRs of 2005 have been examined in this Department in consultation with DoP&T and Department of Expenditure, Ministry of Finance. The clarifications in this respect as provided by the DOPT & concurred in by Department of Expenditure, Ministry of Finance are as follows

Also check: Check List for Permanent Duty Claim: PCDA(O) Pune Instructions

• Two Laboratory Technicians, whose case has been referred to the DOPT, would, be eligible to get their pay fixed as on 01.01.2006 under the CCS(RP) Rules, 2006 initially in PB-2, Grade Pay of Rs. 4200/-, being their replacement scale as they fulfil the eligibility norms under the RRs notified in 2005. Thereafter, as per para ‘5’ of the MACP guidelines, the 1st ACP earned by them in 2001 in the scale of pay of Rs. 5000-8000 (pre-revised) shall be ignored, and they would be entitled to get their pay refixed as on 01.09.2008 on grant of 1st MACP in PB-2, Grade Pay of Rs.4600/- and further grant of 2nd MACP as on 28.04.2009/03.05.2009, on completion of 20 years of service, in PB-2, Grade Pay of Rs. 4800/-, provided they fulfil the other eligibility norms prescribed under DOPT’s OM dated 19.05.2009, as amended from time to time.
• For the remaining 5 Laboratory Technicians, who do not fulfil the eligibility norms prescribed under the revised Recruitment Rules of 2005, the financial upgradation granted under the erstwhile ACP Scheme, if any, in the pre-revised Day scale of RS. 5000-8000 prior to 0.01.2006 or revised pay scale of PB-2, Grade Pay of Rs.4200/- between 01.01.2006 to 30.08.2008, as the case may be, shall be counted against their entitlement of benefits under the MACP scheme w.e.f. 01.09.2008 and they shall be eligible for only 2nd MACP on completion of 20 years of regular service and that too in PB-2, Grade Pay of Rs. 4600/-.

(Manisha Bhatnagar)
Deputy Secretary to the Govt. of India

Dr. P.P, Wadikhaye
DHS,
Ordnance Factory Board
10-A, Shaheed Khudiram Bose Road,
Kolkata-700 001.

MOD ID No. 50(50)/2018-D (Estt/NG) dated 17.03.2020

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BPMS condemns the Government’s decision of Corporatization of OFB

Press Note

Today as part of the Part-4 of the Atmanirbhar Bharat – New Horizons of Growth, the Finance Minister under the topic “Enhancing self reliance in Defence Production, announced the policy decision of the Government to Corporatise the Ordnance Factories.

Further, under “Policy Reforms” raised the FDI under the automatic route from 49% to 74%. Further also, under the chapter ‘India to become a global hub for Aircraft maintenance. Repair and Overhaul (MRO)” announced “Convergence between Defence Sector and Civil MROs will be established to create economies of scale” thereby indicating privatization of Base Repair Depots of Indian Air Force, The Government also issued RFI for converting 505 Army Based Workshop under the GOCO Model on 10/05/2020.

As a responsible stake holder, Bharatiya Pratiraksha Mazdoor Sangh, condemns and opposes these decisions of the Government which has been taken unilaterally without consulting the Federation, as assured from time to time by all authorities including the Hobble Raksha Mantri and also the written decision as minutised under Para 3 & 4 of the meeting dt.23/08/2019. In fact during those discussions, the Government had assured to give a target of 30K Crore and the employees had accepted the challenge thrown by the Government.

The above act of the Government in making such declaration when the Nation is engaged in fighting the Covld¬19 pandemic, not only amounts to an act of dishonouring of commitment, but also establishes the arrogance of the administration and a derailment of the democratic process.

Here it may be pertinent to note that during this sudden unprecedented situation of Covid-19 situation, almost overnight, Ordnance Factories responded to the Nation’s requirements by starting production of essential items like Coveralls, Hand Sanitisers, Tents, Face Masks, Repairs of Ventilators, Stretchers etc.

This has been applauded by all authorities through various modes including PIB release, Twitter etc. Here it may also be important to note that this could happen because in the present set up the OFs are totally dedicated to the Nations requirement without having to bother about commercial interests and Return on Investment etc. Can this be possible as a “Corporate set up where every money spent will have focus an RoI ?

Last week itself, the Hontile CDS and also top Army Officers made a commendable statement that under the given situation, the Army will opt for Made in India products and OFB being the single largest entity for Make in India products were all set to deliver to the expectations of the Government and even started the process of ramping up its production machinery, including cost cutting measures.

Similarly, the Army Base Workshops and the Base Repair Depots play a crutial role in maintaining the hardware of the forces and many “trade secrets” are being kept in the process. Opening up these important sector to private parties is a cause of concern as there are chances of jeopardizing the national interest_

BPMS hereby calls upon the Government to immediately roll back its decision, failing which it will launch a Nation wide agitation, which will be at the risk and cost of the Government.

Under no circumstances, shall BPMS tolerate such unilateral, unjust and bad decisions of the Government.

Dated: 16.05.2020

S/d
(Mukesh Singh)
General Secretary

Download BPMS Press Release

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25-March, 2020

Ordnance Factory Board earmarks 285 beds for COVID-19 isolation wards

Ordnance Factory Board (OFB) has designated 285 beds for isolation wards in handling Coronavirus (COVID-19) cases. Forty beds have been earmarked in hospitals at Vehicle Factory Jabalpur, thirty beds each at Metal and Steel Factory Ishapore, Gun and Shell Factory Cossipore, Ammunition Factory Khadki, Ordnance Factory Kanpur, Ordnance Factory Khamaria, Ordnance Factory Ambajhari, 25 beds at Ordnance Factory Ambernath and twenty beds each at Heavy Vehicle Factory Avadi and Ordnance Factory Medak.

Functioning of Central Govt Office – Operation to prevent the COVID-19

Setting up of Isolation ward and corresponding number of beds in OFB hospitals. This has been done by Chairman OFB as per Ministry of Health and Family Welfare (MoHFW) instructions in the Cabinet Secretary’s meeting yesterday. The OFB is also trying to produce personal protection equipment and face masks as per pilot order quantity placed by HLL Lifecare Limited (HLL), a PSU under MoHFW.

Source: PIB

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Ordnance Factories strike called off

Ministry of Defence
Ordnance Factories strike called off

24 AUG 2019

Continuing the process of dialogue which had started from 14 August 2019, the fourth meeting was held yesterday with the office bearers of AIDEF, INDWF, BPMS and CDRA under the Chairmanship of Secretary, DDP. While reaffirming that the proposed corporatisation of OFB is under examination of the Government, Secretary, DDP patiently listened to the concerns expressed by the Employees Federations regarding how the benefits/interests of employees in terms of wages, health facilities and other service matters may be affected due to corporatisation of OFB. The Employees Federations inter-alia suggested that their views should be considered while preparing the roadmap for increasing the turnover of the proposed entity from the current levels. After detailed deliberations, it was agreed to recommend to the Government, the setting up of a High Level Official Committee to interact with Employees Federations to examine their concerns and other aspects of the proposed new entity. The Federations on their part have agreed to withdraw the ongoing strike and continue with the process of dialogue. With this, employees will now be resuming their duties with effect from Monday, 26th August, 2019.

PIB

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MoD clarifies there is no proposal to privatise OFB

16th AUG 2019

In continuation of the meeting held on August 14, a Committee of senior officials of Ministry of Defence led by Additional Secretary, Department of Defence Production alongwith Chairman, Ordnance Factory Board (OFB) once again met the office bearers of the All India Defence Employees Federation, Indian National Defence Workers Federation, Bhartiya Pratiksha Mazdoor Sangh and Confederation of Defence Recognized Association here today on the issue of Strike notice given by them starting with effect from August 20,2019. The meeting was also attended by officials from the Ministry of Labour & Employment, Government of India.

The Committee also pointed out that the employees’ call for 30 days’ strike was unprecedented, especially when Government has already agreed to their demand to hold discussions at the MoD level and is in process of continuously engaging with them.

The Committee explained to the employee organisations that there is no proposal to privatise OFB. The proposal under consideration of Government is to make it into Defence Public Sector Undertakings (DPSUs), which is 100 per cent Government owned. Rumours being spread that OFB is being privatised are misguiding and with the intent to mislead the workers. Corporatisation of OFB will bring OFB at par with other DPSUs of MoD. This is in the interest of OFB as it will provide operational freedom and flexibility to OFB which it presently lacks. Besides, the interests of the workers will be adequately safeguarded in any decision taken on the subject.

The Committee also pointed out that Government has been continuously trying to strengthen the functioning of OFB, including having taken several steps to modernise the factories, carry out capital upgradation, re-train and re-skill OFB employees at Government costs, enable development of products and components with indigenous technology. The Committee urged the employee organisations to recognise Government’s efforts to make OFB into a competitive, productive and efficient organisation with higher turnover and enhanced profitability, which would also be in the interest of the employees. Therefore, the Committee once again urged the employee organisations to withdraw their proposed strike.

PIB

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R.Srinivasan
General Secretary

INDWF/Circular/028/2018 Date:04.12.2018
To
ALL Affiliated unions of INDWF
Ordnance and Ordnance Equipment factories

Sub: Amendment in Part-V of schedule to CCS (CCA) Rules 1965-Appointing Authority Disciplinary Authority in respect of Group B and C post in the Ordnance Factories and Other units under OFB-reg

Ref:1. MoD(D-Estt) (NG)Id No.50(23)/2013D(EStt)NG Dated 29.11.2018
2.OFB letter No.3977/BM/Per/DISC Dated 03.11.2018

Dear Colleagues,
After 6th CPC,the employees who are granted Rs.4200/- Grade Pay have been classified as Group ‘B’ Industrial and Non-Gazetted by DOP&T. Though these categories of employees have been appointed by the Sr. General Managers/General Managers of Heads of the establishments but disciplinary powers in respect of Group ‘B’ and ‘C’ Civil posts have been authorised to Chairman OFB.

The issue of delegation of powers to Sr.GM/GM of the respective factoris was discussed in JCM III and the same was taken up by OFB to MoD and DOP&T. Now it has been approved by amending the Part V schedule to CCS(CCA) Rules 1995 delegating the powers to the appointing authority in respect of dealing the disciplinary cases of Group ‘B’ Non-gazetted and Non-Industrial and Industrial employees drawing the Grade pay of Rs.4200/- and below. In respect of Group ‘B’ Gazetted officials will be concerned by ADCOF.

This is submitted for information of all the unions.

Yours Sincerely,
sd/-
(R.SRINIVASAN)
General Secretary

Source: INDWF

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GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)
10-A, S.K. BOSE ROAD, KOLKATA: 700001
PAY TECH SECTION

No.Pay/Tech-1/0195

Dated 14.11.2018

To
The CsFA (Fys)
_____________
_____________
_____________

Subject : Modification of pay-slip of Industrial employees under OFB- regarding.

Reference : This office earlier circular no dated 25/09/2017 and further 16/10/2017.

Consequent on implementation of 7th CPC OFB had invited proposal from all SGMs/GMs as well as PCA (Fys) on modifications of pay-slips of IEs in OFB. On receiving feedback from different Gp controllers, the suggestions were forwarded to Wage Package Team, Ishapore for incorporation in the Wage Package. The updated format of wage package has been accepted by OFB and some further modifications for incorporation of Aadhaar No, Bank Account No, Date of Retirement (copy enclosed) has now been sought in the Wage Package by OFB.

It is therefore, requested to kindly look into it and offer your valuable suggestions/proposals in consultation with Br. Accounts Offices under your jurisdiction for onward submission to OFB.

Kindly accord priority.

sd/-
Dy. Controller of Accounts (Fys)

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