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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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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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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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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Modernisation of Ordnance Factories

05 MAR 2018

To keep pace with contemporary manufacturing technologies, Ordnance Factory Board (OFB) has undertaken modernisation of Ordnance Factories including the six factories located in the State of Tamil Nadu. In addition to modernisation of Plant & Machinery, capacity augmentation programme is also under way in three factories namely Heavy Vehicles Factory, Avadi, Engine Factory Avadi and Heavy Alloy Penetrator Project, Trichy.

Details of factory-wise expenditure incurred in the year 2016-17 on modernisation of the six Ordnance Factories located in the State of Tamil Nadu are as follows:

This information was given by RakshaRajyaMantriDr. Subhash Bhamre in a written reply to ShrimatiSasikalaPushpain Rajya Sabha today.

PIB

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BHARATIYA PRATIRAKSHA MAZDOOR SANGH
CENTRAL OFFICE: 2-A, NAVEEN MARKET, KANPUR – 208001
REF: BPMS / MOD / OFB / 186 (8/1/R)

Dated: 19.08.2017

To
Shri Arun Jaitley Ji.,
Hon’ ble Raksha Mantri Ji.,
Government of India
Ministry of Defence,
South Block,
NEW DELHI : 110 011

Subject: Stoppage of Holiday Over-Time in Ordnance Factories – Protest of.

Reference: MoD ID No.DDP-P0012/8/2017-D(Prod-II) dt.08-08-2017.

Respected Sir,

I have been directed to bring the following for your kind immediate intervention.

Vide Ministry of Defence letter cited under reference above, Ordnance Factory Board has been directed to completely stop Holiday Overtime in the Factories.

In this connection we submit that the said order issued by concerned officials is totally unjustified and is without proper application of mind, suffice to say that Over time in the Ordnance Factories is not granted as a matter of routine or luxury but there is a time tested and logical formula vis-à-vis production output on the basis of which the action is taken and it is quantifiable.

Here it may also be pertinent to note that as per the annual statement of accounts of the factories, the total cost of labour on the cost of production is constant between 12 to 13% whereas other elements like Material, Fixed Over heads ,Variable Over heads consumes bulk of cost of production.

Thus targeting Labour to cut cost is not only an unprofessional approach but also shows the biased mindset of the concerned Officials of MoD which is adversely affecting the moral, dedication of the employee and output of the OFB organization.

There is large scale resentment amongst employees as a result of which whimsical diktat of the Ministry and we seek your immediate personal intervention in the matter to provide justice to the workmen.

We therefore once again demand that status quo ante be restored, pending further discussion on the matter.

Thanking You,

Sincerely yours

(M P SINGH)
General Secretary

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REF: BPMS / OFB / Leave / 57 (7/3/L)

Dated: 10.07.2017

To,
The Director IR,
Ordnance Factory Board,
10 A, S K Bose Road,
Kolkata – 700001

Subject: Extension of Injury Leave beyond 28 months in factory accident case.

Reference: Minutes of 21st SCM of JCM-III Level Council (OFB) held on 30.03.2017

Respected Sir,

Having gone through the minutes circulated vide OFB letter No.20/14/21(11)/A/IR, Dated 15.05.2017, it is observed that Secretary, Staff Side Shri R Srinivasan has raised the issue that the employee who met with an accident while on duty is being granted hospital leave upto 120 days with full pay and thereafter he may be granted half pay leave upto 28 months. But after 28 months there is no benefit, no pay is allowed because there is no provision of half pay leave. Minutes further states that the matter has been taken up with MoD wide OFB letter No. 1240/Per/Policy/Accident, Dated 24.06.2016.

In this regard, it is submitted that Rule 46 of CCS (Leave) Rules, 1972 & Article 291 of Civil Service Regulations deals with the Hospital Leave.

As per Rule 46 of CCS (Leave Rules) the authority competent to grant leave may grant hospital leave to Class IV & Class III Government servants, while under medical treatment in a hospital or otherwise, for illness or injury not exceeding 28 months. Hospital Leave may be granted for 120 days equal to earned leave and the remaining period will be equal to half pay leave.

Min of Defence ID No. 11(13)(60)1511/D(Civ-II), Dated 10.02.1961 under Article 291 of CSR states that it has been decided in modification of the provisions of Article 291, Civil Service Regulations that hospital leave may be granted upto 03 months on full pay or six months on half pay in any period of three years to all class IV Government servants and also to those class III Government servants whose duties involve handling of dangerous machinery, explosive materials, poisonous drugs, etc. or the performance of hazardous tasks.

Further, it states that Industrial staff will also be entitled to hospital leave in the same manner as indicated above. Subsequently, vide MoD ID No. 11(13)60/5678/D (Civ-II), Dated 28.05.1962 it was clarified that all categories of staff other than Gazetted Officers in the Defence Establishments will be entitled to hospital leave.

Further, MoD issued Memo No. 11(6)67/5255/D(Civ-II), Dated 15.05.1967 which reads as under:-

“The Government has had under consideration for some time the question of removing the restrictions on the quantum of hospital leave to Government servants who suffer illness or injury directly due to risks incurred in the course of their official duties.

The President is now pleased to decide that the categories of the Defence civilians eligible for this kind of leave in terms of Defence Ministry‟s Office Memorandum No. 11(13)/60/1511/D(Civ-II), Dated 10.02.1961 and 11(13)/60/5678/D(Civ-II) , dated 28.05.1962 will be entitled to hospital leave without any restriction on the quantum of leave. This kind of leave can be granted for such period as is considered necessary by the authority competent to grant it.

The decision takes effect from 31.03.1967.

Article 291 Civil Services Regulations will be amended in due course.”

From above, it may be deduced that all the employees (upto Non-Gazetted) of Ord Fys are entitled for hospital leave without any restriction on the quantum of leave if he met with accident while on duty.

Therefore, you are requested to issue necessary clarification to resolve the issue without further delay.

Thanking you.

Sincerely yours
S/d,
(MUKESH SINGH)
Secretary/BPMS & Member,
JCM-II Level Council (MOD).

Signed Copy

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Instruction No.3502/2017/Per/Policy

ORDNANCE FACTORY BOARD
MINISTRY OF DEFENCE
AYUDH BHAVAN
10-, SHAHEED KHUDIRAM BOSE ROAD
KOLKATA – 700 001
TEL: (033) 22485077-80
TELEFAX: (033) 22437822

No.32/OT/Per/Policy

Dated: 244-03-2017

(Through OFB Comnet)

To,

The Sr.General Managers/General Managers/Head of Units of
All Ordnance Factories/Units

Sub: Restriction of Overtime Working – regarding
Ref:  No.32/OT/Per/Policy dated 10-08-2016.

The matter regarding detailment of employees in various OFs/Units has been reviewed at OFB. Now, it has been decided that, in addition to the existing guidelines for sanction of OT working as communicated vide circular indicated at Ref. above, there shall be no detailment of employees on overtime working on Sundays/Holidays except in respect of essential staffs related to maintenance, security, fire brigade etc. for the 1st Qtr. of next Financial Year i.e. from April 2017 to June 2017. For subsequent quarters, separate orders will be issued after review at OFB.

02. All OFs/Units are, therefore, requested to comply with the above decision of OFB positively while granting Overtime working to their employees w.e.f. 01-04-2017 to 30-06-2017.

[Dr.(Smt.) Vani A Singh]
Director/Admin
For Director General, Ordnance Factories

OFB-Circular

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Ordnance Factory Board (OFB) was established in 1979. It is a departmentally run production organization functioning under the Department of Defence Production, Ministry of Defence and manufactures Arms, Ammunitions, Artillery Guns, Tanks, Combat Vehicles, Troop Comfort items and other equipment required by the Armed Forces. It serves as a dedicated production base for military hardware needs of the Armed Forces, with a view to achieve self-reliance in defence preparedness of the country.

Performance of OFB in terms of value of issue during the last three years and current year is as below:

(Rs. in Crore)

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Laxmi Narayan Yadav in Lok Sabha today.

PIB

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