New Delhi: The government’s plan for a radical overhaul of the Ordnance Factory Board (OFB) by corporatising it has gained pace even as the military has been flagging the need for a reliable supplier of ammunition to maintain operational preparedness.
The military has raised several concerns over the current functioning of the organisation, with a major worry being OFB’s inability to absorb technology developed by the Defence Research and Development Organisation (DRDO).
The absence of a reliable defence manufacturing organisation could have a cascading impact on the military’s war waging capability, especially given the current state of border tensions with both Pakistan and China, sources said.
The defence ministry is in the process of finalising a leading consulting firm to draw up a roadmap for corporatisation of 41OFB factories, and a series of detailed presentations are planned next week.
A final call is likely to be taken before the end of the month among three contenders – KPMG, Deloitte and EY.
The government is looking at an uphill task, given the sheer size and geographic spread of the organisation, besides the series of protests by workers unions that have erupted since last year when the plan was rolled out.
The ministry will give the selected consulting firm six months to draw up a detailed plan and a further six month period to implement the restructuring of the organisation. It has repeatedly clarified that there is no plan to privatise the OFB but to bring it to modern standards of industry.
However, there is a firm belief within the military that a corporatisation process will transform OFB into a potent organisation that can compete with the private sector and lead to the manufacturing of state of-the-art products and absorption of new age technology, as several defence public sector units have been able to achieve.
