Reports regarding supply of Defective Ammunition by OFB

BHARATIYA PRATIRAKSHA MAZDOOR SANGH
(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)
(AN INDUSTRIAL UNIT OF B.M.S.)
(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)
CENTRAL OFFICE: 2-A, NAVEEN MARKET, KANPUR – 208001, PH & FAX : (0512) 2296229
MOBILE: 09335621629, 08765070982 WEB : www.bpms.org.in, Email: [email protected]

REF: BPMS / MOD / Production / 186 (8/1/R)

Dated: 16.05.2019

To
The Secretary,
Department of Defence Production,
Govt of India, Min of Defence,
South Block, DHQ PO,
New Delhi – 110011

Subject: Reports regarding supply of Defective Ammunition by OFB

Respected Sir,
I am directed to bring the following for your personal attention with a request to take immediate cognizance.

For the past few days, there has been a flurry of reports in the Media on the subject issue, quoting documents available in your Office and pegging loss amounting to crores of rupees on account of defective ammunition.

The manufacture of arms and ammunition was regulated under a licensing system established by the Arms Acts (1959) and Arms Rules (1962) and was under Government domain. The manufacturing of Small Arms for armed forces/paramilitary forces/police, have always been confined to the Department of Defence Production. Even after liberalization of the Indian economy and removal of licensing regime for major industries, the private sector was not allowed in this sector. There are 95 firms licensed by the Ministry of Home Affairs, Government of India for the manufacture of guns (single barrel/double barrel) and 25 firms manufacturing cartridges (either blank cartridges or live cartridges or both) up to the quota permitted in their licenses. The Department of Industrial Policy and Promotion (DIPP) obtained a decision from the Cabinet during 2001 – 2002 to allow manufacture of arms and ammunition in the private sector with nil or upto 26% FDI, and issued Industrial licenses to some firms in the private sector namely Max Aerospace, Bharat Forge, L&T and Punj Lloyd etc to manufacture arms and ammunition, but the MHA never cleared it basically due to security concerns.

However, during 2016, in a U-Turn and under the aegis of ―Make In India‖ The Government notified New Arms Rules vide GSR-701€ dt.15/07/2017 and permitted the Private Sector to set up manufacturing units for Small Arms and Ammunition.

During the last week of November 2016, as per press reports, a request of information (RFI) was issued for participation in a $400 million program to manufacture of variety of ammunition in the next five to eight years, including 20,000 units of 125mm ammunition for T90 and T-72 tanks; 500,000 units of 23mm ammunition for Strella air defense systems; 300,000 units of 40mm ammunition for grenade launchers; 500,000 units of 40mm ammunition for multi-grenade launchers; 5,000 units of ammunition for Grad multi-barrel rocket launchers; 600,000 fuses for 155mm M-46 howitzers; 188,600 units of 30mm ammunition for the BMP armored vehicles; and 100,000 units of ammunition for 155mm FH77/B howitzers.

Indian private sector companies participating in the manufacturing of ammunition for the first time include both leading industrial houses — Chowgule Group, Kalyani Group, Reliance Defence Engineering Limited, and Godrej & Boyce — and several small- and medium-sized sector companies — Indtech Construction Private Limited, HYT Engineering Company Private Limited, Micron Instruments, Premier Explosives Limited, Solar Industries India Limited, Himachal Futuristic Communications Limited and Continental Defence Solutions Private Limited.

The report further mentioned that several overseas defense companies — such as Expal of Spain, Nexter of France, Rosoboronexport of Russia, Chemring Group of the United Kingdom, Saab of Sweden, Elbit of Israel, RheinmetallDefence of Germany, Diehl Defence of Germany, Denel of South Africa, Yugoimport of Serbia, Bumar of Poland, Orbital ATK Armament Systems of the United States and Arsenal of Bulgaria — are negotiating with
private Indian companies to provide cutting-edge technology for multiple Indian ammunition programs.

Expected DA from July 2019: DA 4% Confirm…5% Possible! – Click for more details

Press reports also indicate that a private player StumppSchuele Casings (SSC) Private Limited has decided to set up an ammunition manufacturing unit in Anantapur (AP) with an investment of Rs 1,020 crore.

The above was important to be mentioned because, the present report covers the entire range of ammunition covered under the RFI issued and hence a direct conspiracy to defame the OFB and create a favorable atmosphere towards the private sector stands established beyond doubt.

It may be pertinent to note that while OFB follows international best practices in QC, Quality is deeply ingrained in the Management practices in OFB, TQM is a major thrust area. Quality System Certification ISO 9001-2008, 14001-2004 have been obtained by all Factories. Further, as a result of such stringent quality control measures (like formation of Quality Audit Group), time and again the factories have been awarded the Golden Peacock National Quality Awards, Golden Peacock Innovation Award, Rajiv Gandhi National Quality Award. One factory is also recipient of first prize in the National Quality Competition organized by Indian Institute of Metals.

The SOP on Quality Management Systems is an exhaustive document intricately ingraining every element and suggestions received from time to time from MoD, Raman Puri Committee etc.

It may also be pertinent to note the observations of the 38th Report of the Standing Committee on Defence (2017-18) presented in the Lok Sabha on 13/03/2018 wherein under Para D-18 it is mentioned that ―Quality Management including Input material Inspection – OFB is being entrusted with 1st Party QA functions in addition to existing responsibility for input material inspection, as part of implementation of Raman Puri Committee recommendations on QA functions, in the pilot project mode. The Ministry has considered the recommendations of Raman Puri Committee with regards to Quality function and Integration of Finance at factory level. In the first phase of the pilot project, 6 factories have been selected where OFs will be responsible and accountable for the quality of their products and DGQA will be responsible only for FAI (Final Acceptance Inspection). Based on outcome of the pilot project, decision will be taken for expanding the scope of the project to other factories under OFB.‖

From the above it is abundantly clear that all the products are cleared only after strict quality check by the Factory and followed up by DGQA which is controlled by Army Officers.

Hence we fail to understand as to how one set of Army Officers pass defective ammunition for use by another set of Army Officers? However, you are requested to do the needful so that a certain percentage (1% to 5%) of each & every lot of ammunition supplied by OFB may be used by Army/Air Force/Navy without delay for the counter checking and insuring the quality of the product in the interest of stake holders.

Nevertheless, we reiterate that the present press reports are false, baseless and are a conspiracy to defame OFB and promote the private sector.

As a responsible stake holder, we request you to quash such unfounded allegations and ensure that OFB gets more funds to modernize its plants.

In this connection, we also inform that OFB has already adopted the global architecture in the age of Industry 4.0, suffice to mention that implementation of the cyber-physical system will facilitate fundamental improvements to the Industrial processes involved in manufacturing, engineering, material usage, supply chain, QUALITY and life cycle management of products.

Thus, the systematic tarnishing of the image of a dynamic and agile organization by vested elements in conjunction with a section of the press is not only condemned but is strongly protested upon.

We do hope you shall take cognizance of this and arrange to do the needful at the earliest.

Thanking You,

Sincerely yours
sd/-
(MUKESH SINGH)
General Secretary/BPMS &
Member, JCM-II Level Council (MOD)

Copy to: The DGOF & Chairman,
OFB, Kolkata – 700001
– With request to take appropriate action.

Similar Posts:

• Promotion of Defence Production
• Struggle Against Defence Privatization – Confederation
• Joint Memorandum Submitted to Defence Minister on 12.1.2018 – INDWF
• Employees of BWEL will be Benefitted from the Voluntary Retirement Scheme to be Offered at 2007 Pay Scale
• Employment News Weekly Report – 18 to 24 Feb 2017

Government of India
Ministry of Defence
OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)

No.416/AN-III/Confirmation/Vol-79

Date:25.04.2019

To
1. All Controllers of Finance and Accounts (Factories)
2. All Branch Accounts Officers
3. All Sections of Main Office including Railways ‘G’ & RTC
4. The CIA(OFs), 10-A, S K Bose Road, Kolkata.

Subject: Confirmation of MTS-CLKs-Auditors-Hindi Translators-DEOs-Staff Car Drivers-Canteen Employees.

Please furnish names of MTS-CLKs-Auditors-Hindi Translators-DEOs-Staff Car Drivers-Canteen Employees appointed whether directly or as fresh entrant between 01.04.2016 to 31.03.2017 and also left over cases, if Auditor grade between the period should not be sent.
While furnishing names of the eligible candidates, the Part II Office Order notifying the result of passing their New Recruit Training Test and in respect of Those Clerks who are required to pass the typing test or otherwise as per conditions of their appointment Part II Officer Order, such aspect must be highlighted according to which they will be considered for confirmation If the concerned individual has passed the typing test, relevant Par II Office Order no. may be furnished along with disciplinary-Vigilance certificate. If the two years probation reports and the second year APAR still have not been sent to this office those should been sent immediately.

In the case of Inter Departmental candidates if they have already acquired substantive capacity in their previous department their names need not be furnished.

Reply should reach this office/section positively by 31/05/2019

Nil report is also required.

sd/-
(Subhankar Chatterjee)
Sr. Accounts Officer (AN)

Similar Posts:

• Grant of 1st, 2nd and 3rd Financial Up-gradation under MACP – PCAFYS Orders
• Grand 1st, 2nd and 3rd MACP Upgradation under MACP – PCAFYS Circular
• KVS LDC Recruitment – Cancellation of Typing Test
• Promotion of Clerks to Auditors – PCAFYs Orders dt.18.1.2018
• KVS LDC-UDC Skill Test Schedule Declared by KVS

GOVERNMENT OF INDIA
OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)
10-A, S.K. BOSE ROAD, KOLKATA

No.PR/II/895/XVI

Dated: 11.4.2019

To
The Officer-in-Charge,
All Accounts Office

Sub: Appointment of Training Expenses to Production Cost During 2018-19

The percentage of distribution of Trg Expenses in respect of both of Officers and Workmen in Ordnance and Ordnance Equipement Fys for the accounting year 2018-19 shown in the statement enclosed (Annexure-I) is forwarded herewith for the prupose of allocation of the expenditure in the accounts for the year 2018-19.

Please acknowledge as above.

sd/-
Sr. Accounts Officer(Fys)

Similar Posts:

• New Rates of Superannuation Charges – Interim Rates as per 7th CPC
• Clarification on definition of Hometown LTC
• Grand 1st, 2nd and 3rd MACP Upgradation under MACP – PCAFYS Circular
• Travel by Premium Trains on LTC, Official Duty, Tour, Training, Transfer – Clarification orders issued by PCAFYS
• Promotion of Clerks to Auditors – PCAFYs Orders dt.18.1.2018

ALL INDIA DEFENCE EMPLOYEES’ FEDERATION
INDIAN NATIONAL DEFENCE WORKERS FEDERATION
BHARATIYA PRATIRAKSHA MAZDOOR SANGH

No.: 01/AIDEF/INDWF/BPMS/16

Date: November, 2016

To
Shri. Manohar Parrikar
Hon’ble Defence Minister,
Government of India
South Block, New Delhi – 110 001

Subject: Protest against the proposal of corporatizing the Ordnance Factories against the assurances given to the recognized Federations of Trade Unions of Defence Civilian Employees.

Respected Sir,

Introduction

Your kind and immediate attention is invited to the above mentioned subject matter. Indian Ordnance Factory Organization is more than 215 years old Government Industrial Organization. Ordnance Factories are strategic industries established to take care of the requirement of Armed Forces and hence are directly concerned with the security of the Country. The Ordnance Factories are effectively functioning as a Departmental Organization and we are taking all efforts to reach the target of Rs. 20,000 crores given by the Hon’ble Defence Minister in the next two years. In this situation to divert the attention of the committed workforce of Ordnance Factories and to demoralize them a news is being spread all over the Ordnance Factories that the Government is seriously considering a proposal for converting the departmentally run Ordnance Factories into a Corporation. It is also being told that a note in this regard from DDP has been forwarded to the office of the Hon’ble Prime Minister. We are completely in the dark in this regard. In the last Departmental Council (JCM) Meeting chaired by the Defence Secretary the entire Staff Side has opposed the recommendations of the Raman Puri Committee to corporatizes Ordnance Factories. Moreover, in the past the Defence Ministers including the present Hon’ble President of India and also your honour have given assurances that Ordnance Factories would continue to remain as Departmental Organization under MoD.

In view of the developments we submit the following for your kind and favourable consideration and also we request you to give us an audience in this regard.

Indian Ordnance Factories

Prior to independence there were 16 Ordnance Factories which was subsequently expanded to achieve self reliance in Defence and today there are 41 Ordnance Factories. Ordnance Factories are the major supplier for the Indian Army. OFB makes a wide range of products with wide variation of technology such as Armoured Vehicles, Artillery Gun, Small Arms, Ammunition (both large and small calibre), Vehicles, Optical and Electronic Instruments, Troop Comfort items like Strategic Uniforms like Army Logo, Uniform, extreme climate clothing, Boots, Tents and Parachutes etc. The OFBs product mix comprise around 600 final products and 300 intermediate products. It is pertinent to mention here that our Army was able to drive back Pakistan in the 1971 war and subsequent liberation of Bangladesh, followed by the Kargil crisis and the recent Surgical Strike of the Indian Army only with the Arms, Ammunitions and other equipments produced by the Indian Ordnance Factories.

OFB is not a commercial organization for earning profit like any other business. OFB is performing with all efficiency inspite of various limitations such as:-

(a) Uneconomic quantities to be produced to meet strategic needs
(b) Difficulties in entering into long term agreement with dedicated vendors.
(c) Non integration of Finance functions.
(d) Clash with DGQA on Quality Assurance responsibility.
(e) Transition period during change over from one weapon/equipment/ strategic uniform/vehicle etc. affects the workload of the Factories. Recent example is Army has stopped taking INSAS Rifle, Army has not selected a suitable replacement of INSAS. To meet the requirement of Army OFB has developed weapons like Amogh, JVPC, Ex-Calibre, 7.62 Assault Rifles, MCIWS etc. through R&D efforts along with DRDO. Because of delay in decision making process by Army, three Small Arms Factories are having acute shortage of workload.
(f) Products developed first by DRDO and then technology for mass production given to Ordnance Factories results in delay in mass production and capacity creation for same.
(g) Provisions in DPP-2013 which force Ordnance Factories to compete with private suppliers to acquire workload of new products.
(h) Recent decision of Government to increase the FDI limit from the existing level of 26% to 49%.

It is matter of great satisfaction that inspite of all the above hurdles the value of issues of OFB for the year 2013-2014 was Rs.11,234 crores and the targeted value of issues for the current financial year is Rs. 12,380 crores. Here we would like to mention about some of the outstanding achievement of the OFB in the recent past.

Outstanding achievements:

1. Project DHANUSH (155 mm * 45 caliber Artillery Gun): The indigenously developed 155mm * 45 caliber Artillery Gun, named Dhanush, has been

successfully test fired. Both Winter and Summer trials of Dhanush have thus been successful. An indent of 114 Nos. of Dhanush is already in hand.

PINAKA has been one of OFBs ambitious projects. The current capacity of 1000 nos. which was initially created at OF Chanda is now being enhanced to 1500 nos. per year. Indents for 2300 nos. are already in hand, and future indents are in progress. Besides this, certain other versions of PINAKA are being planned:

(a) A project is being planned at OF Badmal for incendiary and bomblet versions of PINAKA with elecctronic fuze. The trials are in progress for the same in collaboration with DRDO.
(b) PINAKA Mark II version with a range of 60 Km is in final stages of development which will have case bonded technology, going to be used first time in any OFB product.

DGQA and user trial for indigenous BMCS was conducted at PFFR range at Pokhran from 27th June to 15th July. The performance was satisfactory. The formal report and Bulk Production Clearance (BPC) is awaited from Army. OF Nalanda is geared up to supply BMCS @4000 per month after receipt of BPC and indent.

A major milestone has been achieved with the successful conduction of the Life Cycle Test (LCT) of T-72 modified chemistry barrels (M.A.P.L.E. Barel) recently conducted at ACC&S, Ahmednager. Formal LCT of these barrels had not been carried out since its introduction in service in 2002. Subsequently, LCT was made contingent for placing further indents for T-72 auto-frettage barrels by Army. Consequent upon successful conduction of LCT, which is a 100% R&D effort of OFC, indent for 450 barrels is expected to be placed by Army on OFB. OFB is in the process of designing Auto-frettage barrels for T-90 tanks on similar lines.

FGK launched 0.32 Revolver MK-III(L) (NIRBHEEK) which received overwhelming response from media & customers. The initial two months have witnessed booking of more than 60 revolvers despite its higher issue price.

Under Barrel Grenade Launcher (UBGL) has been successfully productionized and OF Trichy is having a target of 5000 nos. for the current financial year.

New products which have been developed recently are
(a) Propellant for AK 100 Ammn
(b) PINAKA POD Assembly
(c) 84 MM TPT Projectile
(d) Rocket RGB – 12 (Practice Version), FUZE K3M For RGB-12
(e) Rocket RGB -60 HE Version
(f) Single Base propellant for 155 mm BMC Ammn.

The Troop Comfort Strategic Army Logo Uniform has successfully improved the personality and confidence of the Soldier along with the specialized boots produced by the OEF Group of Factories.

Keeping an eye on future, OFB has identified future technology areas from the Technology Perspective & Capability Road Map (TPCR) of Armed forces for certain products, which have already been taken up for development.

Recent achievements of Ordnance Factories

1. Trial evaluation of Rifle 5.56 mm Excalibur by Air Force: Indian Air Force is looking for a modern, reliable, robust and new generation state-of-the-art Assault Rifle to replace their old inventory of 5.56 mm INSAS Rifle introduced in IAF 2002. Accordingly, IAF has identified indigenously developed 5.56 mm Excalibur Rifle as a preferable replacement to existing INSAS Rifle and also equipping their QRTs.

A trial directive was issued by Air Hqr on 12th May 16 and a team of IAF officers conducted exhaustive trial of the weapon at Rifle Factory Ichapur from 23rd to 26th May 2016. The weapon fared satisfactorily on test parameters like accuracy and climatic tests etc. OFB is expecting order from IAF for this indigenously developed weapon in near future.

2. Supply of Indigenous NBC Recce vehicle: Ordnance Factory Medak in association with DRDO has indigenously developed and supplied the first NBC vehicle in July 16 to Indian Army against an Indent received for 16 Nos. NBCRV (Nuclear Biological & Chemical Reconnaissance Vehicle) is based on the versatile BMP IIK Amphibious Infantry Combat Vehicle and is designed to meet the tactical requirements of the Military Engineers for carrying out Nuclear, Biological & Chemical contamination survey. The vehicle can cross the water obstacles, remain afloat and can also be air transported. This is an important milestone towards in-house R&D and ‘Make-in-India’ initiative.

3. User Trial of 130mm upgunning at Pokharan: OFB has participated in the user trial of upgunning of 130 mm Gun to 155*45 calibre Gun in the month of July 2016 at Pokharan against RFP issued by the User, by fielding OFB SLB (Soltam Gun). The gun has fully complied with all RFP firing and non-firing parameters. The Gun has now been positioned at Jabalpur for DGQA and MET Trials, which will be followed by winter trials.

4. Supply of Anti Riot Ammunition for Internal Security: Extreme urgency for supply of 12 bore Anti riot ammunition (shot-9) was conveyed by MHA for use in Jammu & Kashmir to handle prevailing law and order situation. Though the ammunition was not in production line, Ammunition Factory Khadki was directed to commence production of this ammunition on war-footing and 1.10 Lakh rounds were issued to CRPF against their immediate requirement to tackle the prevailing law and order situation. Further, 1.00 Lakh rounds is also ready for collection by J&K police.

5. Kavach MOD-II: Kavach MOD-II Chaff launcher system has been developed, manufactured and installed on board INS Chennai (MDL Built ship). The Installation Test Firing (ITF) of Long Range & Medium Range Launchers of Kavach MOD-II was successfully carried out for the first time onboard the Naval ship on 04.08.2016.

6. Firing Trial of 7.62 mm * 39 mm Assault Rifle “GHAATAK”: OFB has developed 7.62 mm*39mm Assault Rifle “GHAATAK” as an alternative to AK-47. Rifle Factory Ishapore organized Demonstration cum firing trial on 10th August 2016 for CAPFs and on 19th & 23rd August 2016 for SPOs. It has been decided by CAPFs that each CAPF will buy 500 Assault Rifle each for wider exploitation. Subsequent to satisfactory exploitation, Bulk Order is expected from MHA for

“GHAATAK”. Ordnance Factory Trichy has also developed an Assault Rifle namely “TAR (Trichy Assault Rifle)”

7. Issue of Tear Gas Gun to CRPF: As requested by MHA, Rifle Factory Ishapore has issued 1000 Nos. of 12 Bore PAG and 500 Nos. of TGG to CRPF considering the operational requirement due to prevailing law & Order situation in Kashmir Valley.

8. Supply of Jacket & Trousers (Modified Design): Production & dispatch of 22,300 set of Jackets & Trousers Army Logo (Modified Design) for 5515 soldiers & Officers, assigned for deputation in UN Mission abroad has been completed in record time. Being highly satisfied with the quality & maintenance of time schedule of dispatch, MGO’s Office organized a ceremonial handing over of these Combat Uniforms to the troops proceeding on UN Mission.

9. 155 * 45 Cal ‘Dhanush’ Gun: Indian Army was not able to purchase a 155 mm Howitzer from global market despite vigorous search & efforts. GCF Jabalpur by its own R&D effort developed 155*45 mm Howitzer (Dhanush) which meets all aspirations of the Indian Army. Further, 03 guns have been handed over to the Army for Trials at Deserts and the same is underway. Also, the guns are ready for issue for exploitation in High Altitude Areas (HAA).

10. 5.56 mm Assault Rifle: This project is a joint exercise of Infantry Directorate of the Indian Army & OFB and is a perfect example of a “Make-in-India” weapon by joint task force.

RFI, Ichapore has produced 15 nos. of prototypes with modifications based on Users feedback on reliability, weight, length, compatibility with international sight, Aesthetics etc.

The assault Rifle could meet a reliability of 1 stoppage in 2400 rounds which is very much comparable to International Standards.

15 Nos. of Rifles are ready at RFI, Ichapore for User and DGQA evaluation and awaiting for Trial Directive from Dte. of Infantry for further action.

11. License Agreement has been signed on 12th Jan 2016 between GOI and M/S SAAB, FFV Ordnance AB, Sweden, for supply of three new types of ammunition viz., HEAT-751, HEDP-502 & Smoke-469C alongwith a License agreement for transfer of Technology (TOT) for use with the Carl Gustaf weapon system.

R & D

1. Electronic Point Detonation Fuze: In-house R&D project on Electronic PD Fuze was taken up by Ordnance Factory (MPF) to fulfill the RFP requirement of Indian Army. At present Electronic PD Fuze is being imported by ECIL for Indian Army. “This is the first indigenous successful effort by OFB.

Dynamic trial of 155 mm Eletronic PD Fuze developed by OFB (MPF) took place at PXE Balasore. The first trial has achieved objectives and was successful.

It is planned to manufacture a pilot lot of 125 Nos. which will be subjected to firing trial in association with DGQA in January, 2017.

One important development is that as per DPP-2016, OFB no longer enjoys the status of nominated production Agency (PA) and therefore, OFB has to participate in RFPS and compete with Indian/Global private/public Industries. Keeping this in view, OFB is making efforts to have a tie up with technology providers to acquire TOT.

Accordingly, OFB has forwarded a proposal of Generic MOU for approval of MOD. Apart from the above, following proposals have also been forwarded to DDP.
* MoU with M/s ATK for production of 30 mm Gun & Ammunition
* MoU with M/s BAE, UK for production various caliber of ammunition
* MoU with M/s BAE, Sweden for production of MGS
* Umbrella MoU with M/S BEML

OFB is also making its presence felt at various conferences and seminars being conducted by CII, FICCI etc

Challenges before the Ordnance Factories.

As mentioned earlier the entire workforce of the Ordnance Factories are always kept under tension and stress, by regularly subjecting them to different types of threats through report of various Committees such as Nair Committee, Kelkar Committee etc., for Corporatizing Ordnance Factories, by opening the Defence Production Sector to 100% Privatization through DPP-2013 and once in a decade threat in the name of noncore items and low technology items, allowing FDI etc. In this regard we would like to place the following views on each of the above threats for the kind and favourable consideration of the Hon’ble Defence Minister.

NO CORPORATIZATION OF ORDNANCE FACTORIES

1) The more than 2 centuries old organization has effectively remainded as a Government Organization since Ordnance Factories are set up for strategic reason mainly as the fourth arm of the Defence of the Country and to achieve self reliance and indigenization in Defence Production. Ordnance Factories are not set up for doing commercial business and minting profit. The strategic requirement and existence of the Ordnance Factories should be treates at part with the Armed Forces. Therefore, in the interest of national security, this Federation and the other Federations in the Defence Ministry have taken the correct stand that Ordnance Factories should remain as a Departmental Organization. Any disturbance in its structure like converting the Organization into a Corporation as recommended by the Nair Committee and Kelkar Committee will ultimately result in the Ordnance Factories becoming sick Industries which is not in the interest of the security of our Country. In the past whenever the Government has thought about converting the OFB into a Corporation the 4lakhs Defence Civilian Employees have always opposed this move of the Government. In this regard we draw the kind attention of the Hon’ble Defence Minister to the assurance given by the then Def. Minister Shri. George Fernandes in a meeting taken by him on 18.07.2001 with the Federations. The extract from the minutes of the meeting is given below:

“Raksha Mantri, while appreciating the sentiments of the Staff Side on issues of national security etc. intimated the Staff Side that there is no proposal to privatize the Ordnance Factories. He reiterated the Government’s Commitment to full utilization of the installed capacities of the Ordnance Factories, and their growth. He asserted that the first choice for productionising any equipment, was always Ordnance Factories and Defence Public Sector Undertakings. R.M. also mentioned that there was no proposal for corporatization of Ordnance Factories function under the control of the Ministry of Defence and shall continue to do so. He also stressed that there would be no FDI in Ordnance Factories.

We also draw your kind attention of the assurance given by the then Defence Minister and the Present Hon’ble President of India Shri. Pranab Mukherjee in a strike negotiation meeting held under hos Chairmanship on 18.09.2006. The extract of the minutes of the meeting is reproducted below:-

“The Government has not decided to corporatize Ordance Factories and that there is no intention to implement the recommendation.”

“Government does not intend to dilute the role of Ordnance Factories and DPSUs in Defence Production.”

“Hon’ble RM accepted the suggestion to have a frequent interaction at the level of Secretary (DP) and other Senior Officers with the representatives of the Federations, which will improve mutual understanding and provide cordial working environment.”

We also invite your kind attention to the minutes of another meeting held under the Chairmanship of the then Defence Minister Shri. A.K.Antony on 26th June,2007 with the three Federations. The relevant portion of the minutes is reproduces below for your kind information please:-

“Allowing the private sector to enter in the Defence Production Sector will not create any situation that will damage the interest of either OFB or Defence PSUs. RM further observed that the Federations were opposed to corporatization of OFs, his predecessor had categorically assured them that there was no intention to implement the recommendation of the Kelkar Committee relating to corporatization of Ordnance Factories. He said that the present policy is the same.”
Apart from the above the Ministry of Defence, Department of Defence Production have informed in the Rajya Sabha vide Unstarred Question No. 833 (Answered on 03.03.2015) that “there is no proposal at present to corporatizw the Ordnance Factories in the Country and since such a proposal is not there the issue of taking the Federations of the Defence Civilian Employees into confidence does not arise.”

Morover, the Department of Defence Production vide Letter F. No. 15(4)/2015-D (Esst./NG) dated 15th April,2015 has informed that at present there is no proposal to corporatize the Ordnance Factories.

In view of the above the three recognized Federations appeals to the Hon’ble Defence Minister that Corporatizing the Ordnance Factories is not going to help the organization in any manner. Moreover, this will abruptly change the service conditions of the almost 1 lakh civilian employees which will result in unneccessary labour unrest and litigations. Moreover, an analysis of the Defence import over the years indicates that most of the imports have been made in the areas other than Military hardware produced by OFB. Infact the import of Air Craft, Naval Ships and other equipments are substantial and these fall in the product range of DPSUs like HAL, Ship Yards, BEL etc. Therefore, the argument of import replacement for conversion of OFB into a PSU may not neccessarily address the issue of self reliance. Moreover, the investment made at OFB should be construed as a War Reserve / War Insurance to the nation and as already mentioned OFB is the fourth arm of the nation and it is a strategic asset of the Country.

Apart from this the Hon’ble Minister may also consider the following negative aspects, in case the Ordnance Factories are corporatized:-

a) Today OFB being an integral part of the Government, OFB is obliged to make all types of equipments demanded by the Army irrespective of its number or value and also whether commercially viable or not. If it is corporatized OFB also will adopt its own business/ surviving strategy and will go only for producing those items the volume of which is more through which they can earn profit. This is not in the interest of Armed Forces.

b) At present OFB provides lifelong warranty for weapons and other systems produced by them. If it becomes a Corporation then Armed Forces should be forced to pay for maintenance/ servicing since the warranty period of the equipment will get over by the time the items reach the Depots/ Units.

c) At present OFB issues the products on no profit basis. If Corporatized the items will be issues on cost plus profit basis and International pricing strategy for Defence Equipment will be applied.

Hence, we are of the firm opinion that the OFB should continue as a Departmental Organization under MoD and we suggest the following for further strengthening the Ordnance Factories so that it fulfills its commitment and duty as a Defence Production Organization in an effective manner to the fullest satisfaction of the Armed Forces.

• OFB should become a solution provider to Indian Armed Forces.
• OFB should remain as an integral part of Defence Management of the Country.
•  OFB should continue to be a reliable partner of the Indian Armed Forces by providing life cycle support to the equipments.
•  Integration of Finance, Accounts and Internal Audit with OFB.
•  A mechanism to be derived for maintaining proper co-ordination between DGQA and OFB both at the apex level and Factory level for ensuring a Better Quality Management System.
• OFB should be empowered to select technological partners.
•  Long term Roll-on indents for all items of production.
•  Grant of design agencies status to speed up in house research and development efforts.

Therefore, we conclude that the Ordnance Factories may continue as a Departmental Organization under MoD. Any decision on the part of the Government to corporatize Ordnance Factories would amount to a violation of the assurance given to the Federations by the Government of India and will result in a confrontation between the Government and the Defence Civilian Employees. We are confident that the Hon’ble Defence Minister will take all efforts to avoid such a situation when the border of the country is in serious tension and the requirement of the day is to ensure that all of us rise to the occasion and strengthen our Armed Forces.

Sir, we request you to kindly spare a bit of your valuable time so as to enable the representatives of the three Federations to meet you and express our views in this regard.

Yours Sincerely,

sd/-
C. Srikumar
General Secretary/AIDEF

sd/-
R. Srinivasan
General Secretary/INDWF

sd/-
M.P.Singh
General Secretary/BPMS

Similar Posts:

• New Rates of Superannuation Charges – Interim Rates as per 7th CPC
• Grant of meeting to discuss about the Ordnance Factories
• Stoppage of Holiday Over-Time in Ordnance Factories
• Drastic reduction in Budgetary support to Ordnance Factories – BPMS
• Defence Employees 30 Days Strike started on 20th August, 2019

Grant of Canteen Facilities to the Family Pensioners of Retired Defence Civilians: DDGCS letter

Annexure-I

Integrated HQ of MOD (Army)
Quartermaster General’s Branch
Dy Dte Gen Canteen Services
Wing-III, West Block-III, RK Puram
New Delhi – 66

No. 95350/Q/DDGCS/POLICY/15/2016

10 Mar 2016

GRANT OF CANTEEN FACILITIES TO THE FAMILY PENSIONERS OF RETIRED DEFENCE CIVILIANS

1. Further to this HQ letter No. 96301/Q/DDGCS/Policy dated 12 Aug 2015.

2. Govt of India, MoD vide letter No. 8(14)/2015 dated 04 Mar 2016 has extended Canteen facilities to family pensioners of retired Defence Civilian employees. The procedure for processing of application will be as per this Dte letter No. 96301/Q/DDGCS/Policy dated 12 Aug 2015. The applicant must write Family Pensioner of retired defence civilian on the application form.

3. All HQ are requested to disseminate this letter to all Fmns/Units/URCs in their jurisdiction.

sd/-
(MP Varghese)
Col
OIC Smart Card Cell
Canteen Services
For DDGCS

Source: http://www.aimesccgdea.org/index.php

Click to view the order issued on 10.10.2016

Click to view the order issued on 31.07.2015

Clarification on CSD Canteen Facilities to retired Defence Civilians

Extension of Canteen Facilities to retired Defence Civilians

Similar Posts:

• CSD Canteen Facilities to retired Defence Civilians – Clarification issued by CGDA
• CSD Canteen facility to retired Defence Civilian employees
• CGDA Orders 2015 : Grant of CSD Canteen facilities to retired Defence Civilians
• Grant of CSD Canteen facilities to Retired Defence Civilian Employees: PCDA Orders
• CSD facilities for Retired employees – MoD Order with Application Forms