The Ordnance Factory Board first set up by the British in the year 1775 stands dissolved, with its 41 factories, assets, employees and management being transferred to the seven new public sector units in accordance with the Cabinet decision to corporatize the entity. OFB is the 37th largest defence equipment manufacturer in the world and second largest in Asia. It’s vitally important for ordnance factories to be able to meet large requirements of arms, ammunition, vehicles, and various equipment. It seems that PM Narendra Modi’s recent call for ‘Atmanirbhar Bharat’ is expected to accelerate the process of manufacturing of all the mentioned material in India. With the opening-up of the defence sector to the private industry, the armed forces are able to procure comparatively better products. In view of the unprecedented tension between the Indian and the Chinese Army on the Line of Actual Control in 2020, it is vitally important for ordnance factories to be able to meet large requirements of arms, ammunition, vehicles, and various equipment. But the major concern of the OFB employees is that corporatisation is the first step towards privatisation and is likely to result in layoffs and job cuts.
