Why in News?

• Rumours being spread that Ordnance Factory Board (OFB)is being privatised has resulted in its employees calling for a 30 days’ strike.

Highlights:

• Committee of senior officials of Ministry of Defenceled by Additional Secretary, Department of Defence Production alongwith Chairman of OFB, 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.
• It was also stated that corporatisation of OFB will bring OFB at par with other DPSUs of Ministry of Defence.  This is in the interest of OFB as it will provide operational freedom and flexibility to OFB which it presently lacks.

Ordnance Factory Board:

• Ordnance Factory Board(OFB) consisting of the Indian Ordnance Factories is a defense contractor owned by the Indian government.
• OFB comprises forty-one ordnance factories, nine training institutes, three regional marketing centres and four regional controllerates of safety which are spread all across the country.
• OFB is the world’s largest government-operated production organisation, and the oldest organisation run by the Government of India.
• It is often called the “Fourth Arm of Defence” and the “Force Behind the Armed Forces” of India.
• OFB is the 37th largest defence equipment manufacturer in the world, 2nd largest in Asia, and the largest in India.