Ordnance Factory Board (OFB): Lok Sabha QA
Ordnance Factory Board (OFB): Details on conversion to 7 PSUs, reason of corporatization, assurance given to federation etc – Lok Sabha QA
GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEPARTMENT OF DEFENCE PRODUCTION
LOK SABHA
UNSTARRED QUESTION NO.994
TO BE ANSWERED ON 3rd DECEMBER, 2021
ORDNANCE FACTORIES
994. SHRI RAM KRIPAL YADAV:
DR. KALANIDHI VEERASWAMY:
Will the Minister of DEFENCE be pleased to state:
(a) the total number of ordnance factories within the country, State/UT-wise including Tamil Nadu;
(b) whether the Government has dissolved the Ordnance Factory Board (OFB) and transferred its assets, employees and management to seven Public Sector Units (PSUs);
(c) if so, the details thereof along with the reasons for the corporatization of the OFB; and
(d) whether the assurances given to the federations in this context have not been fulfilled, if so, the details thereof and the stand of the Government thereon?
ANSWER
MINISTER OF STATE (SHRI AJAY BHATT) IN THE MINISTRY OF DEFENCE
(a) There are 41 Ordnance Factories in the country. STATE/UT-wise status of Ordnance factories including Tamil Nadu is appended below. Details are at Annexure-C
| S. No. | State/UT | No. of Ordnance Factories |
| 1 | Chandigarh | 01 |
| 2 | Uttarakhand | 02 |
| 3 | Uttar Pradesh | 09 |
| 4 | Bihar | 01 |
| 5 | West Bengal | 04 |
| 6 | Madhya Pradesh | 06 |
| 7 | Maharashtra | 10 |
| 8 | Telangana | 01 |
| 9 | Tamil Nadu | 06 |
| 10 | Odisha | 01 |
| Total | 41 |
(b) & (c) Yes Sir, to enhance functional autonomy, efficiency and unleash new growth potential and innovation in Ordnance Factories, the production units of Ordnance Factory Board have been converted into 7 Defence Public Sector Undertakings with 41 Units w.e.f. 1st October, 2021 (“Appointed Date”).
(i) The Government of India has transferred, with effect from the Appointed Date, the management, control, operations and maintenance of these 41 units to 7 Government companies (wholly owned by the Government of India), namely (i) Munitions India Limited, (ii) Armoured Vehicles Nigam Limited, (iii) Advanced Weapons and Equipment India Limited, (iv) Troop Comforts Limited, (v) Yantra India Limited, (vi)India Optel Limited, and (vii) Gliders India Limited (collectively “New DPSUs”) in respect of (a) production activities, viz production of arms, ammunitions, weapons, vehicles, defence equipment and non-defence equipment; and (b) identified non-production activities, as set out in Annexure A. The Government of India has also transferred, with effect from the Appointed Date, the management, control, operations and maintenance of certain identified non-production units of OFB and identified surplus land at 16 production units of OFB to the Directorate of Ordnance (Coordination & Services) (“Directorate”) under the DDP, as set out in Annexure B.
(ii) On and with effect from the Appointed Date, OFB, which has been set up vide Ministry of Defence letter no. 1(82)/78/D(Fy.I) dated 09.01.1979, has ceased to exist as a body.
(iii) The Government of India has also transferred all assets and liabilities of OFB to the New DPSUs and the Directorate as per the structure set out in Annexures A and B, with effect from the Appointed Date.
(iv) All the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units (as per the structure set out in Annexure A) have been transferred en masse to the New DPSUs on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the Appointed Date.
(v) All the employees of OFB (Group A, B & C) belonging to OFB HQ (at Kolkata), OFB New Delhi Office, OF Schools and OF Hospitals (Group A, B & C), have been transferred en masse to the Directorate under DDP, initially for a period of two years from the Appointed Date.
(d) The Government is committed to safeguard the interests of the employees of erstwhile Ordnance Factory Board (OFB), as mentioned at various forums including during interactions with the Federations. Accordingly the Government has taken the following steps:-
(i) All the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units (as per the structure set out in Annexure-A) have been transferred en masse to the new DPSUs on terms of foreign service, without any deputation allowance (deemed deputation) initially for a period of two years from the Appointed Date.
(ii) 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.
(iii) All the employees of OFB (Group A, B & C) belonging to OFB Head Quarter (at Kolkata), OFB New Delhi Office, OF Schools and OF Hospitals have been transferred en masse to the Directorate of Ordnance (Coordination & Services) under the Department of Defence Production, initially for a period of two years from the Appointed Date.
(iv) 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 continuation of all special provisions applicable to Central Government employees under the National Pension System.
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ANNEXURE-A
Structure for Transfer of Production Units and identified Non-Production Units to the 7 New DPSUs
| Sl.No. | Name of transferring production unit | Name of transferee New DPSUs and main objectives / business |
| 1. | Ammunition Factory Khadki | Munitions India Limited. This DPSU will be engaged in the business of manufacturing ammunition and explosives. Registered and corporate office: Ammunition Factory Khadki, Pune, Maharashtra, India, 411003 |
| Cordite Factory Aruvankadu | ||
| High Energy Projectile Factory Tiruchirappalli | ||
| High Explosive Factory Khadki | ||
| Ordnance Factory Bhandara | ||
| Ordnance Factory Bolangir | ||
| Ordnance Factory ChandaChandrapur | ||
| Ordnance Factory Dehu Road | ||
| Ordnance Factory Itarsi | ||
| Ordnance Factory Khamaria | ||
| Ordnance Factory Nalanda | ||
| Ordnance Factory Varangaon | ||
| 2. | Engine Factory Avadi | Armoured Vehicles Nigam Limited. This DPSU will be engaged in the business of manufacturing vehicles. Registered and corporate office: HVF Road, Bhaktavatsalapuram, Avadi, Chennai, Tamil Nadu, India, 600054 |
| Heavy Vehicle Factory Avadi | ||
| Machine Tool Prototype Factory Ambernath | ||
| Ordnance Factory Medak | ||
| Vehicle Factory Jabalpur | ||
| 3. | Field Gun Factory Kanpur | Advanced Weapons and Equipment India Limited. This DPSU will be engaged in the business of manufacturing weapons and equipment. Registered and corporate office: Ordnance Factory Kanpur, Kalpi Road, Kanpur, Uttar Pradesh, India, 208009 |
| Gun Carriage Factory Jabalpur | ||
| Gun and Shell Factory Cossipore | ||
| Ordnance Factory Kanpur | ||
| Ordnance Factory Project Korwa | ||
| Ordnance Factory Tiruchirappalli | ||
| Rifle Factory Ishapore | ||
| Small Arms Factory Kanpur | ||
| 4. | Ordnance Clothing Factory Avadi | Troop Comforts Limited. This DPSU will be engaged in the business of manufacturing troop comfort items. Registered and corporate office: C/o Ordnance Factory Equipment, Headquarter G T Road, Kanpur, Uttar Pradesh, India, 208013 |
| Ordnance Clothing Factory Shahjahanpur | ||
| Ordnance Equipment Factory Kanpur | ||
| Ordnance Equipment Factory Hazratpur | ||
| 5. | Grey Iron Foundry Jabalpur | Yantra India Limited. This DPSU will be engaged in the business of manufacturing Military Grade components and Ancillary products. Registered and corporate office: C/o The General Manager Ordnance Factory, Ambajhari Amravati Road Ambajhari, Nagpur, Maharashtra, India, 440021 |
| Metal and Steel Factory Ishapore | ||
| Ordnance Factory Ambernath | ||
| Ordnance Factory Ambajhari | ||
| Ordnance Factory Bhusawal | ||
| Ordnance Factory Dumdum | ||
| Ordnance Factory Katni | ||
| Ordnance Factory Muradnagar | ||
| 6. | Ordnance Cable Factory Chandigarh | India Optel Limited. This DPSU will be engaged in the business of manufacturing opto-electronic items. Registered and corporate office: C/oOpto Electronic Factory, Raipur,Dehradun, Uttarakhand, India, 248008 |
| Ordnance Factory Dehradun | ||
| Opto-Electronics Factory Dehradun | ||
| 7. | Ordnance Parachute Factory Kanpur | Gliders India Limited. This DPSU will be engaged in the business of manufacturing parachutes. Registered and corporate office: C/o Ordnance Factory Equipment Headquarter, G T Road, Kanpur, Uttar Pradesh, India, 208005 |
| Sl.No. | Name of transferring non-production unit | Name of transferee New DPSUs |
| 1. | Ordnance Factories Institute of Learning, Khamaria | Munitions India Limited |
| National Academy of Defence Production, Ambajhari | ||
| Regional Controllerate of Safety Pune. | ||
| Regional Marketing Centre, Pune | ||
| 2. | Ordnance Factories Institute of Learning, Ambernath | Armoured Vehicles Nigam Limited |
| Ordnance Factories Institute of Learning, Avadi | ||
| Ordnance Factories Institute of Learning, Medak | ||
| Regional Controllerate of Safety, Avadi | ||
| Regional Marketing Centre, Chennai | ||
| AV Head Quarter, Avadi | ||
| OFB Mumbai Office | ||
| 3. | Ordnance Factories Institute of Learning, Ishapore | Advanced Weapons and Equipment India Limited |
| Regional Controllerate of Safety, Kanpur | ||
| 4. | Ordnance Factories Institute of Learning, Kanpur* | Troop Comforts Limited |
| OEF Head Quarter, Kanpur | ||
| 5. | Ordnance Factories Institute of Learning, Ambajhari | Yantra India Limited |
| Regional Controllerate of Safety, Ambajhari | ||
| Regional Controllerate of Safety, Ishapore | ||
| Ordnance Factory Recruitment Centre located in NADP premises at Ambajhari | ||
| Regional Marketing Centre, New Delhi | ||
| 6. | Ordnance Factories Institute of Learning, Dehradun | India Optel Limited |
| Sl.No. | Name of the asset | Name of transferee New DPSUs and % of paid-up equity share capital of the asset |
| 1. | Indo-Russia Rifles Private Limited (IRRPL) | Advanced Weapons and Equipment India Limited;42.5% of the paid-up equity share capital of IRRPL |
| Munitions India Limited;8% of the paid-up equity share capital of IRRPL |
*Ordnance Factories Institute of Learning, Kanpur would continue to cater to the training needs of the staff of Gliders India Limited.
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ANNEXURE-B
Structure for Transfer of identified Non-Production Units and Surplus Land to the Directorate of Ordnance (Coordination & Services)
| Sl.No. | Name of transferring non-production unit | |
| 1. | OF Hospitals / independent dispensaries | Metal and Steel Factory Ishapore |
| Ammunition Factory Khadki | ||
| Ordnance Factory Kanpur | ||
| Ordnance Factory Khamaria | ||
| Gun and Shell Factory Cossipore | ||
| Ordnance Equipment Factory Kanpur | ||
| Ordnance Clothing Factory Shahjahanpur | ||
| Gun Carriage Factory Jabalpur | ||
| Vehicle Factory Jabalpur | ||
| Heavy Vehicle Factory Avadi | ||
| Ordnance Factory Ambernath | ||
| Cordite Factory Aruvankadu | ||
| Ordnance Factory Medak | ||
| Ordnance Factory Muradnagar | ||
| Ordnance Factory Bhandara | ||
| Ordnance Factory ChandaChandrapur | ||
| Ordnance Factory Ambajhari | ||
| Ordnance Factory Varangaon | ||
| Ordnance Factory Dehradun | ||
| Ordnance Factory Katni | ||
| Ordnance Factory Tiruchirappalli | ||
| Ordnance Factory Itarsi | ||
| Ordnance Factory Dehu Road | ||
| Ordnance Factory Bolangir | ||
| Ordnance Factory Bhusawal | ||
| Ordnance Cable Factory Chandigarh | ||
| Ordnance Equipment Factory Hazratpur | ||
| Ordnance Factory Project Nalanda | ||
| Ordnance Factory Project Korwa | ||
| 2. | OF Schools | Ordnance Factory Bhandara |
| Ordnance Factory Ambarnath | ||
| Ordnance Factory Ambajhari | ||
| Ordnance Factory Bhusawal | ||
| Ordnance Factory Chandrapur | ||
| Ordnance Factory Varangaon | ||
| Ordnance Factory Itarsi | ||
| Ordnance Factory Katni | ||
| Gun Carriage Factory Jabalpur | ||
| Ordnance Factory Khamaria | ||
| Vehicle Factory Jabalpur | ||
| Cordite Factory Aruvankadu | ||
| Ordnance Factory Tiruchirappalli | ||
| Ordnance Clothing Factory Avadi | ||
| Ordnance Factory Badmal | ||
| Gun and Shell Factory Cossipore | ||
| Metal and Steel Factory Ishapore | ||
| Rifle Factory Ishapore | ||
| Ordnance Factory Dum Dum | ||
| Ordnance Factory Muradnagar | ||
| Ordnance Clothing Factory Shajahanpur | ||
| Ordnance Equipment Factory Kanpur | ||
| Ordnance Factory Kanpur | ||
| Ordnance Factory Dehradun | ||
| 3. | OFB Head Quarter Units | OFB Head Quarter (located at Kolkata) and OFB New Delhi Office |
| 4. | Identified surplus land of 3152.11 acres located at 16 Ordnance factories, as follows:
(a) Ordnance Factory Bhandara: 420 acres |
|
ANNEXURE-C
Ordnance Factories (State/UT-wise)
| S. No. | Factory | Location | State | Defence PSU |
| 1 | Ammunition Factory Khadki (AFK) | Pune | Maharashtra | Munitions India Limited |
| 2 | Cordite Factory (CFA) | Aruvankadu | Tamil Nadu | Munitions India Limited |
| 3 | Engine Factory Avadi (EFA) | Chennai | Tamil Nadu | Armoured Vehicles Nigam Limited |
| 4 | Field Gun Factory, Kanpur (FGK) | Kanpur | Uttar Pradesh | Advanced Weapons and Equipment India Limited |
| 5 | Gun Carriage Factory Jabalpur (GCF) | Jabalpur | Madhya Pradesh | Advanced Weapons and Equipment India Limited |
| 6 | Grey Iron Foundry (GIF) | Jabalpur | Madhya Pradesh | Yantra India Limited |
| 7 | Gun and Shell Factory (GSF) | Kolkata | West Bengal | Advanced Weapons and Equipment India Limited |
| 8 | Heavy Alloy Penetrator Project (HAPP) | Tiruchirappalli | Tamil Nadu | Munitions India Limited |
| 9 | High Explosives Factory (HEF) | Pune | Maharashtra | Munitions India Limited |
| 10 | Heavy Vehicles Factory, Chennai (HVF) | Chennai | Tamil Nadu | Armoured Vehicles Nigam Limited |
| 11 | Machine Tool Prototype Factory Ambernath (MPF) | Mumbai | Maharashtra | Armoured Vehicles Nigam Limited |
| 12 | Metal and Steel Factory (MSF) | Kolkata | West Bengal | Yantra India Limited |
| 13 | Ordnance Clothing Factory Avadi (OCFAV) | Chennai | Tamil Nadu | Troop Comforts Limited |
| 14 | Ordnance Factory Chandigarh (OCFC) | Chandigarh | Chandigarh (UT) | India Optel Limited |
| 15 | Ordnance Clothing Factory (OCFS) | Shahjahanpur | Uttar Pradesh | Troop Comforts Limited |
| 16 | Ordnance Equipment Factory Kanpur (OEFC) | Kanpur | Uttar Pradesh | Troop Comforts Limited |
| 17 | Ordnance Equipment Factory Hazratpur (OEFHZ) | Hazratpur | Uttar Pradesh | Troop Comforts Limited |
| 18 | Ordnance Factory Ambernath (OFA) | Mumbai | Maharashtra | Yantra India Limited |
| 19 | Ordnance Factory Ambajhari (OFAJ) | Nagpur | Maharashtra | Yantra India Limited |
| 20 | Ordnance Factory Bhandara (OFBA) | Bhandara | Maharashtra | Munitions India Limited |
| 21 | Ordnance Factory Bhusawal (OFBH) | Bhusawal | Maharashtra | Yantra India Limited |
| 22 | Ordnance Factory Bolangir (OFBOL) | Bolangir | Odisha | Munitions India Limited |
| 23 | Ordnance Factory Kanpur (OFC) | Kanpur | Uttar Pradesh | Advanced Weapons and Equipment India Limited |
| 24 | Ordnance Factory Chandrapur (OFCH) | Chandrapur | Maharashtra | Munitions India Limited |
| 25 | Ordnance Factory Dumdum (OFDC) | Kolkata | West Bengal | Yantra India Limited |
| 26 | Ordnance Factory Dehu Road (OFDR) | Pune | Maharashtra | Munitions India Limited |
| 27 | Ordnance Factory Dehradun (OFDUN) | Dehradun | Uttarakhand | India Optel Limited |
| 28 | Ordnance Factory Itarsi (OFI) | Itarsi | Madhya Pradesh | Munitions India Limited |
| 29 | Ordnance Factory Khamaria (OFK) | Jabalpur | Madhya Pradesh | Munitions India Limited |
| 30 | Ordnance Factory Katni (OFKAT) | Katni | Madhya Pradesh | Yantra India Limited |
| 31 | Ordnance Factory Muradnagar (OFM) | Muradnagar | Uttar Pradesh | Yantra India Limited |
| 32 | Ordnance Factory Project (OFN) | Nalanda | Bihar | Munitions India Limited |
| 33 | Ordnance Factory Project Korwa (OFPKR) | Korwa | Uttar Pradesh | Advanced Weapons and Equipment India Limited |
| 34 | Ordnance Factory Project Medak (OFPM) | Hyderabad | Telangana | Armoured Vehicles Nigam Limited |
| 35 | Ordnance Factory Tiruchirappalli (OFT) | Tiruchirappalli | Tamil Nadu | Advanced Weapons and Equipment India Limited |
| 36 | Ordnance Factory Varangaon (OFV) | Varangaon | Maharashtra | Munitions India Limited |
| 37 | Opto Electronics Factory (OLF) | Dehradun | Uttarakhand | India Optel Limited |
| 38 | Ordnance Parachute Factory (OPF) | Kanpur | Uttar Pradesh | Gliders India Limited |
| 39 | Rifle Factory Ishapore (RFI) | Kolkata | West Bengal | Advanced Weapons and Equipment India Limited |
| 41 | Small Arms Factory (SAF) | Kanpur | Uttar Pradesh | Advanced Weapons and Equipment India Limited |
| 41 | Vehicle Factory Jabalpur (VFJ) | Jabalpur | Madhya Pradesh | Armoured Vehicles Nigam Limited |
Source: Lok Sabha