Lok Sabha Question No. 2729 (UNSTARRED), answered on 2021-08-04
Subject: Defence related Industrial Establishments
Ministry: DEFENCE
Asked by: Thalikkottai Rajuthevar Baalu

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA UNSTARRED QUESTION NO.2729

TO BE ANSWERED ON 4 th  August, 2021

## DEFENCE RELATED INDUSTRIAL ESTABLISHMENTS

2729. SHRI T.R. BAALU:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a)  whether  the  Government  has  decided  to  convert  all  the  country's  departmental defence  related  industrial  establishments  including  AVADI  complex,  Chennai,  Heavy Alloy  Penetrator  Project  and  Small  Arms  Project,  Trichy,  etc.  in  Tamil  Nadu  into corporate entities;
- (b) if so, the reasons for such an unprecedented move;
- (c) whether such a radical change will not adversely affect the national security interests;
- (d) if not, the safeguards proposed to ensure nation's defence concerns; and
- (e)  whether  the  Government  assure  that  the  existing  service  conditions  and  rights  of employees including pension and other retirement benefits will not be deprived of lakhs of employees of these departmental establishment and if so, the details thereof?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a) & (b):  To enhance functional autonomy, efficiency and unleash new growth potential and innovation in Ordnance Factories, the Government of India has decided to convert the  production  units  of  Ordnance  Factory  Board  (OFB)  into  07  Defence  Public  Sector Undertakings, including the production units of OFB located in Tamil Nadu.

(c)  &  (d):    No,  Sir.    The  Government  has  decided  to  grandfather  the  indents/orders pending with OFB post corporatisation to ensure continuity in supply of strategic arms and ammunition to the Services, MHA and others.

(e)    The  Government  has  assured  safeguarding  the  interests  of  the  employees  of Ordnance Factory Board (OFB) post corporatization of OFB, inter-alia, in the following manner:-

- (i) It  has  been  decided  that  all  the  employees  of  OFB  (Group  A,  B  &  C), belonging to the production units and also the non-production units being handed over to the new Defence Public Sector Undertakings (to be formed) would be transferred to these DPSU(s) on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the appointed date.
- (ii) All  the  employees  of  OFB  Head  Quarter,  OFB  New  Delhi  Office,  OF Schools  and  OF  Hospitals,  would  be  transferred  to  the  Directorate  of Ordnance  Factories  (to  be  formed)  under  the  Department  of  Defence Production, initially for a period of two years from the appointed date.
- (iii) Till  such  time  the  employees  remain  on  deemed  deputation  to  the  new entities, they shall continue to be subject to all rules and regulations as are applicable to the Central Government servants. Their pay scales, allowances,  leave,  medical  facilities,  career  progression  and  other  service conditions will also continue to be governed by the extant rules, regulations and orders, as are applicable to the Central Government servants.
- (iv) The pension liabilities of the retirees and existing employees will continue to be borne by the Government.

*****