1

Government of India
Ministry of Defence
Ordnance Factory Board
10-A, S.K. Bose Road
Kolkata 700 001
Advertisement no. 13/06/2013-Per/HRD, dtd 13-01-2015
Subject: Induction of 54th Batch Trade Apprentices under the Apprentices Act 1961 in Ordnance & Ordnance
Equipment Factories.
On-line application is invited from Indian citizens for Induction as Trade Apprentices in Non-ITI & II categories
in Ordnance & Ordnance Equipment Factories, located in different States of India.
Eligibility Qualification:
For Non-ITI category:
Passed Trade Test from an Institute recognized by NCVT or SCVT or any other authority specified through Gaette
Notification of Mathematics & Science.
For ITI category:
Passed Trade Test from an Institute recognied by NCVT or SCVT or any other authority specified through Gazette
Notification of Ministry of Labour & Employment.
Qualifying Age: 14 to 22 years (as on 01-01-2014)
Relaxation in upper age limit is permitted for the candidates belonging to Sc/ST: 5 years, OBC: 03 years, PH/PC:
10 years. For ITI candidates, upper age limit will be relaxed by the period of training already undergone as per the
normal duration of NCVT/SCVT, in the relevant trade.
Submission of on-line Applications starts from: 03-02-2015
Last Date of on-line Submission of application: 28-02-2015
Note: Detailed advertisement is available at ordnance Factory board website: http://www.ofbindia.gov.in.
However, candidates must apply online directly through the website link: www.examfeedback.net/ofb/ofb.asp.
Change, if any, in respect of the dates for submission of application will be declared through OFB website as well as
on the website link being used for online submission.
davp 10201/11/1990/1415

NAIR Committee Report

NAIR COMMITTEE REPORT ON MEDIUM/ LONG TERM GROWTH OF ORDNANCE

FACTORIES.
Nair Committee has submitted their report on the subject. They had
broadly classified the Ord. Fys in three groups.
In first group they have included 20 factories which they have identified as
OPPURTUNITY and have recommended for their Corporatisation.
In the second group they have included 7 factories which they have
identified as ASSEST and have recommended for their conversion to Defence Public
sector Undertakings.
In the third group they have included 12 factories which they have
identified as CHALLENGE and have recommended to be delinked / divested from GOI.

OPPORTUNITY
1. AFK
A&E
2. CFA

3. HEF

4. OFBA

5. OFBOL
6. OFCH

7. OFDR

8. OFI

9. OFK

10 OFV

(20) A&E- 10, WV&E-04, M&C- 05, AV- 01

11 GSF
12.OFT
13 HAPP
14 RFI
15. SAF
16. MSF
17. OFAJ
18. OFA
19. OF KAT
20. OFD

ASSETS ( 07) WV&E- 03, AV-04 CHALLENGE (12)

1. GCF
WV&E
2.
OFC
WV&E
3.
FGK
WV&E
4.
EFA
AV
5.
HVF
AV

1.

WV&E

M&C
WV&E
WV&E
M&C

AV

M&C - 04, WV&E- 03, OEF- 05

OFM
M&C
2. GIF
WV&E
3. VFJ
WV&E
4. OCFC
M&C
5. MTPF
M&C

6.
7.

OFPM AV
OLF
AV

6. OF DUM
7. OFBH
8. OEFC
9. OPF
10. OCFS
11. OCF AV
12 OEFHAZ

WV&E
M&C
OEF
OEF
OEF
OEF
OEF

AS PER NAIR COMMITTEE REPORT (EFFECT ON NGOS)

_______________________________________
OPPORTUNITY

11264

IN FYS TO BE CORPORATISED

ASSETS

4108

IN FYS TO BE CONVERTED TO PSUS

CHALLENGE

3898

IN FYS TO BE DISINVESTED

-----------------------------------------------------------

SUP CADRE IN O.FYS

19270

_______________________________________

SUPERVISORY CADRE
00565
POSTED IN HQS/RTIS ETC.
-------------------------------------------------TOTAL SUP CADRE IN OFYS 19835

NAIR COMMITTEE REPORT ON MEDIUM/ LONG TERM GROWTH OF ORDNANCE

FACTORIES WAS RE-EXAMINED BY THE COMMITTEE HEADED BY DR

KELKAR

DR. KELKAR COMMITTEE,S RECOMMENDATIONS (DRAFT REPORT)

ON RESTRUCTURING OF ORDNANCE FACTORIES
GROUPING OF ORDNANCE FACTORIES

STRATEGEIC (20) A&E- 10, WV&E-04, M&C- 05, AV- 01

1 AF KIRKEE
2 CF ARUVANKADU
3 HE FY KIRKEE
4 OF BHANDARA
5 OF BOLANGIR
6 OF CHANDA
7 OF DEHU ROAD
8 OF ITARSI
9 OF KHAMARIA
10 OF V ARANGAON

A&E

11 GSF COSSIPORE
12. OF TRICHI
13 HAPP TRICHI
14 RF ICHAPUR
15. SAF KANPUR
16. MSF ICHAPUR
17. OF AMBAJHARI
18. OF AMBERNATH
19. OF KATNI
20. OF DEHRADUN

ESSENTIAL ( 07) WV&E- 03, AV-04

1
2
3
4
5
6
7

GCF
OFC
FGK
EFY
HVF
OFPM
OLF

JABALPUR WV&E
KANPUR
WV&E
KANPUR
WV&E
AVADI
AV
AVADI
AV
MEDAK
AV
DEHRADUN AV

1.
2.
3.
4.
5.
6.
7.

NON-CORE (12)

OF MURADNAGAR
GIF JABALPUR
VF J ABALPUR
OCF CHANDIGARH
MTPF AMBERNATH
OF DUM DUM
OF BHUSAVAL

WV&E

M&C
WV&E
WV&E
M&C

AV

M&C - 04, WV&E- 03, OEF- 05

M&C
WV&E
WV&E
M&C
M&C
WV&E
M&C

8.
9.
10.
11.
12

OEF KANPUR
OPF KANPUR
OCF SHAHJAHANPUR
OCF AVADI
OEF HAZRATPUR

OEF
OEF
OEF
OEF
OEF

AIANGOS KHAMARIA

EXTRACT: DRAFT RECOMMENDATIONS Dr KELKAR COMMITTEE ON

RESTRUCTURING OF ORDNANCE FACTORIES
THE COMMITTEE HAS ALSO GONE THROUGH EXTENSIVE STUDIES THAT HAVE BEEN
DONE IN THE PAST IN THIS AREA. BASED ON INPUTS FROM PREVIOUS AND OUR OWN
DISCUSSIONS WITH THE CONCERNED AGENCIES OUR COMMITTEE RECOMMENDS
THAT ALL
EXISTING OFYS SHOULD BE GROUPED INTO THREE CATEGORIES
DEPENDING UPON THE NATURE OF EQUIPMENT PRODUCED BY THESE UNITS. THE
THREE CATEGORIES UNDER WHICH ORDNANCE FACTORIES WOULD BE GROUPED
COULD BE AS FOLLOWS: STRATEGIC
THIS GROUP WOULD CONSIST FACTORIES WHERE ITEMS HAVE
TO BE PRODUCED INDIGENOUSLY AT ANY COST, INVOLVE HIGHLY COMPLEX
TECHNOLOGY AND WHERE QUANTITY MAY NOT BE LARGE
BUT WOULD ANY
HOW NEED TO BE PRODUCED IN STRATEGIC INTEREST OF THE COUNTRY.
ESSENTIAL
THIS CATEGORY WOULD INCLUDE FACTORIES THAT HAVE
REASONABLE CORE COMPETENCIES, SKILL SETS, CAPACITIES AND PRODUCE
LARGE VOLUMES OF MASS WEAPONS ITEMS AND SYSTEMS REQUIRED BY THE
ARMED FORCES. THE COMMITTEE FEELS THAT SUCH FACTORIES HAVE
TREMENDOUS POTENTIAL TO IMPROVE THEIR COMPETITIVENESS.
NON-CORE
THIS CATEGORY WOULD INCLUDE FACTORIES THAT PRODUCE
ITEMS THAT ARE ANY WAY MASS PRODUCED IN THE COUNTRY IN THE CIVILIAN
SECTOR ALSO.
THE COMMITTEE RECOMMENDS THAT THE STRATEGIC GROUP SHOULD BE
RETAINED IN ITS EXISTING STRUTURE IN THE INTEREST OF NATIONAL SECURITY
WHILE
THE ESSENTIAL AND NON-CORE GROUPS SHOULD BE CORPORATISED UNDER
LEADERSHIP OF COMPETITIVE MANAGEMENT.
THE COMMITTEE ALSO RECOMMENDS THAT CORPORATISATION COULD BE ON THE
LINES OF BSNL. ALSO AS PART OF HAND-HOLDING PROCESS THE EXISTING
DISPENSATION BY THE GOVERNMENT TO THE ORDNANCE FACTORIES SHOULD
CONTINUE TO BE GIVEN TO OFS FOR A PERIOD OF ANOTHER THREE YEARS TO HELP
THEM STEER THE CHANGE PROCESS, INTERNALLY. ALONG WITH THE FINANCIAL
SUPPORT ORDNANCE FACTORIES WILL ALSO REQUIRE TRAINING SUPPORT NOT
ONLY TO UPGRADE THEIR SKILL SETS BUT. ALSO ADOPT MODERN MANAGEMENT
PRACTICES. THIS WOULD HELP THE TWO CORPORATIONS EMERGE STRONGER POST
TRANSITION PERIOD.

AIANGOs standing on the Kelkar Committees report(Draft)

As per the committee due to its present existing set up under the government
have a limited decision making power, No responsibilities in functions of R & D,
Raw material selection, Vendor development, Quality control & Assurance,
Raising financial resources, Marketing & sales, Problems of Obsolescence &
Lack of cost effectiveness & having limited abilities to meet users
requirement.

As pere committees report (draft)

The 20 factories engaged in production of arms, ammunition weapons
and directly related ones coming within the STRATEGIC GROUP
should be retained in existing structure under the OFB

The 07 factories coming under the ESSENTIAL Group and

The 12 factories coming under the NON-CORE Group
should be corporatised under two independent corporations, on the
lines of BSNL. The existing dispensation shall continue for three
years.
The committee has made it very clear that not a single factory will be
recommended for privatization. It was also made clear that the
Pension/Retirement Benefits & job security will continue after
corporatisation to ensure no financial loss to the employee
AIANGOs,while opposing the move of corporatisation of the o.Fys, has
put the proposal that all the 39 factories are presently engaged in the
defence preparedness of the country and are strategic in nature and

were designed for the vary purpose. Hence any proposal to trifurcate
this organization will prove counterproductive and the it shall hamper
the productivity and also paralyse the developmental work of new
armament store presently under the process in the factories which have
the inter connectivity. Hence it was argued on behalf of AIANGOs that
to come over the shortcomings of ordnance factories the full autonomy
can be granted to O.F.B. at par with Railway Board.. while allowing
operational & financial freedom, with control over functions of

R & D,

Raw material selection, Quality control, etc .all the 39 fys be retained
with the Govt. with the existing set-up under OFB. It was also stated
that the 1.20 lakhs employees working in Ordnance Factories are
working round the clock to cater the needs of soldiers who give their
blood for the nation and since have the self satisfaction of being the
soldiers in the plain cloths. Dr Kelkar agreed that the entire workforce
of the Ordnance fys

are the peace soldiers and have been

performing excellent job , but there is a need for all-round betterment

of these fys which is possible only though the restructuring of the fys
while off-loading the low technology work
The concept of corporatisation was once again vehemently opposed by
all federations/associations present in the meeting..
The employee federations/Associations have been further allowed to
th

submit their proposal with open mind before 15 July 2005.

From the deliberation in the meeting it appears that ordnance
factories are partly heading for corporatisation . The employees
federations/ Associations will chalk out the further programme for
effectively opposing the move of the Govt.

AIANGOS KHAMARIA
Presentation by Dr. Kelkar Committee on Restructuring of
Ordnance Factories at New Delhi

PRESENTATION ON THE
DRAFT REPORT
PART II
RESTRUCTURING
OF
DEFENCE PUBLIC SECTOR

10

MANDATE OF THE
COMMITTEE
TERMS OF REFERENCE NO 4

TO SET UP A SUBGROUP/SUBCOMMITTEE OF MEMBERS

OF THE MAIN GROUP TO EXAMINE AND
MAKE
RECOMMENDATIONS FOR APPROPRIATE CHANGES IN
THE AREAS AS INDICATED BELOW :-

OF THE
END
THE ARE

TO EXAMINE THE CHANGES REQUIRED TO FACILITATE

DPSUS AND ORDNANCE FACTORIES TO ASSUME THE
ROLE OF DESIGNER AND INTEGRATOR , ENABLING
THEM TO BUILD CONSORTIUM OF INDUSTRIES AROUND
THEM FOR PRODUCT DEVELOPMENT AND PRODUCTION

CONSTITUTION OF SUB- COMMITTEE

THE COMMITTEE CONSTITUTED A SUB-GROUP

HEADED BY SHRI JAGDISH KHATTAR MD MARUTI
UDYOG LTD. TO SUBMIT ITS DRAFT REPORT
AS PER TERMS OF REFERENCE

SUB COMMITTEE SUBMITTED ITS DRAFT

REPORT
WHICH HAS BEEN DELIBERATED UPON BY THE MAIN
COMMITTEE

11

EXISTING OPERATING ENVIRONMENT

IN ORDNANCE FACTORIES

FUNCTIONS LIKE GOVT. DEPARTMENT

PRODUCTION OF ITEMS BASED ON NOMINATIONS

DO NOT MAINTAIN INDEPENDENT ACCOUNTS

LIMITED DECISION MAKING POWER

NO RESPONSIBILITY IN FUNCTIONS OF R & D, RAW

MATERIAL SELECTION , VENDOR DEVELOPMENT ,
QUALITY CONTROL & ASSURANCE , RAISING FINANCIAL
RESOURCES, MARKETING AND SALES
PROBLEM OF OBSOLESCENCE & LACK OF COST

EFFECTIVENESS

STRUCTURAL CHANGES
REQUIRED IN OFS

NEED TO UNSHAKLE; NECESSITY FOR ENHANCED

AUTONOMY AND DELEGATION OF POWERS

OPERATIONAL AND FINANCIAL AUTONOMY WITH

RESPONSIBILITY AND ACCOUNTABILITY.

FORMATION OF JOINT VENTURES , PRODUCTION

UNITS AND CONSORTIUMS

TAP OPPORTUNITY FOR GROWTH THROUGH

COMPETITIVE EDGE

12

RECOMMENDATIONS
ORDNANCE FACTORIES
FORM THREE CATAGORIES- STRATEGIC ,
ESSENTIAL, AND NONCORE
RETAIN STRATEGIC GROUP IN EXISTING
STRUCTURE CORPORATIZE OTHER TWO GROUPS
ON LINES OF BSNL.
CORPORATIZATION DOES NOT MEAN
PRIVATISATION
CONTINUE EXISTING DISPENSATION FOR THREE
YEARS.
TRAINING SUPPORT TO UPGRADE SKILL
SETS: ADOPT MODERN MANAGEMENT
PRACTICES.

VIEWS OF DGOF
CORPORATISE ALL OFS AS ONE CORPORATION UNDER
A STATUTE ON THE LINES OF BSNL
ALLOW OPERATIONAL AND FINANCIAL FREEDOM
CONTROL OVER FUNCTIONS OF R & D RAW
MATERIAL SELECTION, VENDOR DEVELOPMENT
QUALITY CONTROL AND ASSURANCE , RAISING
FINANCIAL RESOURCES, MAEKETING AND SALES

13

CONTINUE EXISTING DISPENSATION FOR TWO YEARS

FORMATION OF BSNL- IMPACT OF

CORPORATIZATION ON EMPLOYEES

NUMBER OF EMPLOYEES-3.63 LAKHS

KEY ISSUE-TERMS & CONDITIONS OF SERVICE

POST CORPORATIZATION

PENSION & RETIREMENT BENEFITS

JOB SECURITY

NO FINANCIAL LOSS TO ANY EMPLOYEE

FORMATION OF BSNL- IMPACT OF

CORPORATIZATION ON EMPLOYEES
PENSION & RETIREMENT BENEFITS
ALL EMPLOYEES ENTITLED TO GOVT. SCHEME
OF PENSION EVEN AFTER ABSORPTION
TECHNICAL RESIGNATION NOT REQUIRED

14

PAYMENT OF PENSION MADE BY GOVT

PENSION CONTRIBUTION FROM PSU TO GOVT

JOB SECURITY
ADMINISTRATIVE MINISTRY TO REVIEW ORDER
OF REMOVAL/DISMISSAL

AIANGOs/CE/KH/05/01

DT 6-07-2005

TO,
SHRI ALOK PERTI IAS
MEMBER SECRETARY
DR. KELKAR COMMITTEE &
JOINT SECRETARY (SUPPLIES)
MINISTRY OF DEFENCE
SOUTH BLOCK DHQ PO
NEW-DELHI 110 011
SUB :- COMMENTS ON THE DRAFT RECOMMENDATIONS OF DR. KELKAR
COMMITTEE ON RESTRUCTURING OF ORDNANCE FACTORIES
REF :- MOD NO. 8(1)/2004/D (S-III) DATED JUNE 2 2005
SIR,

We take this opportunity to record our sincere thanks to the committee

headed by Dr Vijaj Kelkar for inviting us on two occasions for deliberations on
the subject issue, and for sending us the gist of draft recommendations of the
committee on restructuring of the ordnance factories.

15

2.
In view of the deliberations held with the committee on the subject issue
and the contents of the gist of the draft recommendations received by this
association we have formulated our stand on the issue.
3.
While communicating our viewpoint , we have formulated our comments
on the specific recommendations proposed to be made by the committee.
Please find herewith the viewpoint of this association incorporating our
comments on the draft report.
Thanking You,
Sincerely yours
( R R Pashine )
General Secretary
Encl : One
AIANGOS Memorandum on the Draft Report

MEMORANDUM
TO
COMMITTEE ON RESTRUCTURING OF
ORDNANCE FACTORIES
HEADED BY

DR. VIJAY KELKAR

FROM

(AIANGOS)

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ALL INDIA ASSOCIATION OF NON-GAZETTED OFFICERS

OF
ORDNANCE & EQUIPMENT FACTORIES
&
QUALITY ASSURANCE ORGANISATIONS
(Ministry of Defence)
CENTRAL EXECUTIVE HQ
ORDNANCE FACTORY, KHAMARIA JABALPUR

AIANGOS/ CE/ KH/ KC/ 05/01

DATED 7th July 2005

TO,
DR VIJAY KELKAR
CHAIRMAN
COMMITTEE ON RESTRUCTURING
OF DEFENCE PUBLIC SECTOR
MINISTRY OF DEFENCE
NEW-DELHI
SUB : SUBMISSION OF MEMORANDUM ON COMMITTEES DRAFT RECOMMENDATION
ON RESTRUCTURING OF ORDNANCE FACTORIES UNDER MIN. OF DEFENCE

REF : MOD LETTER NO. 8(1) / 2004/D ( S-III ) DATED 2nd JUNE 2005

17

DEAR SIR,
I HAVE BEEN DIRECTED TO COMMUNICATE THE FOLLOWING FOR
CONSIDERATION OF THE COMMITTEE ON RESTRUCTURING OF THE ORDNANCE
FACTORIES.
2.
FROM THE DELIBERATIONS IN THE TWO MEETINGS OF THE COMMITTEE
ATTENDED BY THE REPRESENTATIVES OF THIS ASSOCIATION AND THE GIST OF
DRAFT RECOMMENDATIONS FORWARDED BY THE COMMITTEE, IT HAS BEEN
BROUGHT TO OUR NOTICE THAT THE COMMITTEE IS OF THE OPINION THAT O.FYS
HAVE SHORTCOMINGS OWING TO ITS WORKING UNDER THE GOVERNMENTAL
SET UP .
3
IT HAS ALSO BEEN OBSERVED FROM THE DRAFT RECOMMENDATIONS THAT
THE ORGANISATION LIKE ORDNANCE FACTORIES IS EXPECTED TO COMPETE IN A
GLOBAL DEFENCE INDUSTRIAL SECTOR. IN THIS PRETEXT THIS ASSOCIATION IS
OF THE OPINION THAT ORDNANCE FACTORIES SHOULD BE STRENGTHENED SO
AS TO BE SELF SUFFICIENT FOR THE DEFENCE PREPAREDNESS OF THE COUNTRY
AND EMERGES AS THE WORLD CLASS INDIGENOUS DEFENCE PRODUCTION
BASE. IN OUR OPINION THERE SHOULD NOT ARISE ANY NEED FOR INDIAN
ORDNANCE FACTORIES TO ENTER INTO GLOBAL COMPETITION.

2
4.

(A)

THE PARA WISE COMMENTS ON THE DRAFT RECOMMENDATION IS

SUBMITTED HEREWITH.
AS PER DR. VIJAY KELKAR COMMITTEE

EXISTING OPERATING ENVIRONMENT IN ORDNANCE FACTORIES

FUNCTIONS LIKE GOVT. DEPARTMENT

PRODUCTION OF ITEMS BASED ON NOMINATIONS

DO NOT MAINTAIN INDEPENDENT ACCOUNTS

LIMITED DECISION MAKING POWER

NO RESPONSIBILITY IN FUNCTIONS OF
R & D , RAW
MATERIAL
SELECTION ,
VENDOR DEVELOPMENT , QUALITY CONTROL AND

18

ASSURANCE , RAISING FINANCIAL RESOURCES, MARKETING AND SALES

PROBLEM OF OBSOLESCENCE & LACK OF COST EFFECTIVENESS

EXISTING OPERATING ENVIRONMENT IN ORDNANCE FACTORIES

AS ENUMERATED BY THE COMMITTEE
O PARA WISE COMMENTS
FUNCTIONS LIKE GOVT. DEPARTMENT

BEING A GOVT. DEPT O.FYS ARE WORKING LIKE ANY OTHER GOVT. DEPT.
PRODUCTION OF ITEMS BASED ON NOMINATIONS

O.FYS WERE DESIGNED IN THE PRE-INDEPENDENCE AND POST

INDEPENDENCE ERA TO MEET THE SPECIFIC REQUIREMENTS OF
ARMED FORCES, AND HENCE HAVE TO GO FOR THE MASS
PRODUCTION OF ARMAMENT / ALLIED STORES AS ORDERED BY
USERS. O.FY ORGANISATION IS A 200 YEAR OLD ORGANISATION AND
AS PER THE GRADUAL INCREASE IN THE REQUIREMENTS OF THE
ARMED FORCES THE ORDNANCE FACTORIES WERE ESTABLISHED IN
A PHASED MANNER
BEFORE 1ST WORLD WAR.. 04 Factories
AFTER 1ST WORLD WAR.. 05 Factories
AFTER 2ND WORLD WAR..

09 Factories

AFTER INDEPENDENCE &

BEFORE 1962

05 Factories

AFTER 1962
16 Factories
(i.e. post Chinese Aggression period)
{ O.Fy Project Nalanda the 40th factory in commissioning /Project stage}

3
AS SUCH IT IS EVIDENT THAT THE O.FYS ARE PERFORMING THEIR ROLE
TO CATER TO THE SPECIFIC REQUIREMENTS OF THE ARMED FORCES
AS WAS PLANNED.

DO NOT MAINTAIN INDEPENDENT ACCOUNTS

IT IS FACT THAT AS PER EXECUTIVE INSTRUCTIONS BOTH ACCOUNTS

& FINANCE IS LOOKED AFTER BY ANOTHER AGENCY.

HAVING INDEPENDENT ACCOUNTING SYSTEM IS AN ESSENTIAL

REQUIREMENT FOR THE DEVELOPMENT AND SUSTAINED GROWTH
OF ANY PRODUCTION ORGANISATION.

LIMITED DECISION MAKING POWER

19

BEING A GOVT. ORGANISATION UNDER THE DEPT. OF DEFENCE

PRODUCTION, MOD, THE DECISION MAKING POWER RESTS WITH THE
MOD. DECISION MAKING POWER IS ABSOLUTELY ESSENTIAL
FOR THE
DEVELOPMENT OF ANY PRODUCTION ORGANISATION.
DELEGATION OF POWER THROUGH A LEGISLATION IS A MUST FOR
THIS ORGANISATION.
NO RESPONSIBILITY IN FUNCTIONS OF R & D, RAW
MATERIAL
SELECTION ,
VENDOR
DEVELOPMENT , QUALITY CONTROL &
ASSURANCE, RAISING FINANCIAL RESOURCES, MARKETING AND
SALES
AS PER THE SYSTEM PREVAILING
THE R&D RESTS WITH DRDO.
THE RAW MATERIAL SELECTION , VENDOR DEVELOPMENT , QUALITY
CONTROL & ASSURANCE RESTS WITH THE RESPECTIVE USERS
REPRESENTATIVE i.e. DGQA, DGAQA & DGNAI.
IT IS A MATTER OF FACT THAT WHEN THE RESPONSIBILITY OF
ACCEPTABILITY OF FINAL /FINISHED PRODUCT LIES ON THE PRODUCER
i.e. O. FYS , THE R & D , THE RAW MATERIAL SELECTION , VENDOR
DEVELOPMENT QUALITY CONTROL & ASSURANCE ,SHOULD ALSO BE
THE RESPONSIBILITY OF O.FYS. SINCE IT IS A ESTABLISHED FACT THAT
THE OUTSIDE AGENCIES DO NOT MAKE EXPECTED CONTRIBUTION FOR
THE DEVELOPMENT OF THE ORGANISATION , AND PROVE TO BE THE
UNWARRANTED LIABILITY.

PROBLEM OF OBSOLESCENCE & LACK OF COST EFFECTIVENESS

OBSOLESCENCE

AS THE MODERN WARFARE HAS TURNED TO BE A VERY

SOPHISTICATED WITH THE HELP OF TECHNICAL DEVELOPMENT
TAKING PLACE, THE PROBLEM OF OBSOLESCENCE SHALL ALWAYS
EXIST, BUT WITH THE CONTINUOUS UPDATING OF TECHNOLOGY THIS
AREA CAN BE ADDRESSED EFFECTIVELY FOR WHICH DECISION

20

MAKING POWER IS REQUIRED TO BE ENSHRINED WITH THE O . FYS

ONLY.
COST EFFECTIVENESS

IT IS EVIDENT THAT THE ARMS AMMUNITION AND ALLIED ITEMS TO

ARMED FORCES & PARAMILITARY FORCES ARE BEING SUPPLIED AT
AN GLOBALLY COMPETITIVE PRICES. IN CASE THE O.FY S ARE GIVEN
FULL AUTONOMY IN THE AREAS, PARTICULARLY THE DECISION
MAKING POWER, QUALITY ASSURANCE & ENTIRE ACCOUNTING
SYSTEM WHICH PRESENTLY CONTRIBUTE TOWARDS THE OVERHEAD
EXPENDITURE MAKING THE PRODUCTION COSTLIER , WILL ENABLE
THE O.FYS TO FURTHER REDUCE THE ISSUE/SALE PRICES TO USERS.
AS O.FYS WILL BE IN A POSITION TO TAKE QUICK AND SUITABLE
DECISION TO ADOPT THE CONCEPT OF TRANSFER OF TECHNOLOGY
(TOT), JOINT VENTURE-SHIP WITH OTHER PUBLIC & PRIVATE SECTOR
BOTH WITHIN THE COUNTRY AND ABROAD.

(B)

STRUCTURAL CHANGES FOR O.FYS

AS SUGGESTED BY THE Dr. KELKAR COMMITTEE

NEED TO UNSHACKLE ; NECESSITY FOR ENHANCED AUTONOMY

AND DELEGATION OF POWERS

OPERATIONAL AND FINANCIAL AUTONOMY WITH RESPONSIBILITY

AND ACCOUNTABILITY.

FORMATION OF JOINT VENTURES , PRODUCTION

CONSORTIUMS

TAP OPPORTUNITY FOR GROWTH THROUGH COMPETITIVE EDGE

UNITS AND

O OUR COMMENTS

THE ORDNANCE FACTORY ORGANISATION IS AN TIME TESTED

PRODUCTION ORGANISATION, HAVING ALWAYS RISED TO THE OCCASION
AT TIMES OF WARS. THE 1.2 LAKHS SKILLED AND ONE OF THE BEST
WORKFORCE, IS ENGAGED ROUND THE CLOCK IN THE DEFENCE
PREPAREDNESS OF THE COUNTRY HAVING THE UTMOST SATISFACTION
OF THE JOB THAT WE SERVE THOSE WHO SHED THEIR BLOOD TO FENCE
OUR BOARDERS. IN FACT WE TREAT OURSELVES AS THE PLAIN CLOTH
SOLDIERS.

THE FULL AUTONOMY IN FUNCTIONS OF R & D, RAW MATERIAL

SELECTION , VENDOR DEVELOPMENT, QUALITY CONTROL & ASSURANCE,
RAISING FINANCIAL RESOURCES , MARKETING AND
SALES WITH
ENHANCED DECISION MAKING POWERS AND OPERATIONAL AND
FINANCIAL AUTONOMY SHALL BE A MILESTONE TO TAKE THIS VITAL

21

ORGANISATION TO THE GLORIOUS HEIGHTS , AND THERE WILL NOT

ARISE ANY NEED FOR ANY STRUCTURAL CHANGES IN THE EXISTING
SET- UP OF THE ORDNANCE FACTORIES.
C)

DR. KELKAR COMMITTEES RECOMMENDATIONS

ON RESTRUCTURING OF ORDNANCE FACTORIES
FORM THREE CATEGORIES STRATEGIC , ESSENTIAL, AND
NON-CORE
RETAIN STRATEGIC GROUP IN EXISTING STRUCTURE
CORPORATIZE OTHER TWO GROUPS ON LINES OF BSNL.
CORPORATIZATION DOES NOT MEAN PRIVATISATION
CONTINUE EXISTING DISPENSATION FOR THREE YEARS.
TRAINING SUPPORT TO UPGRADE SKILL SETS:
ADOPT MODERN MANAGEMENT PRACTICES.

STRATEGIC
THIS GROUP WOULD CONSIST FACTORIES WHERE ITEMS
HAVE TO BE PRODUCED INDIGENOUSLY AT ANY COST, INVOLVE HIGHLY
COMPLEX TECHNOLOGY AND WHERE QUANTITY MAY NOT BE LARGE
BUT WOULD ANY HOW NEED TO BE PRODUCED IN STRATEGIC INTEREST
OF THE COUNTRY.
ESSENTIAL
THIS CATEGORY WOULD INCLUDE FACTORIES THAT
HAVE REASONABLE CORE COMPETENCIES, SKILL SETS, CAPACITIES
AND PRODUCE LARGE VOLUMES OF MASS WEAPONS ITEMS AND
SYSTEMS REQUIRED BY THE ARMED FORCES. THE COMMITTEE FEELS
THAT SUCH FACTORIES HAVE TREMENDOUS POTENTIAL TO IMPROVE
THEIR COMPETITIVENESS.
NON-CORE
THIS CATEGORY WOULD INCLUDE FACTORIES THAT
PRODUCE ITEMS THAT ARE ANY WAY MASS PRODUCED IN THE COUNTRY
IN THE CIVILIAN SECTOR ALSO.
THE COMMITTEE RECOMMENDS THAT THE STRATEGIC GROUP SHOULD BE RETAINED
IN ITS EXISTING STRUCTURE IN THE INTEREST OF NATIONAL SECURITY WHILE THE
ESSENTIAL AND NON-CORE GROUPS SHOULD BE CORPORATISED UNDER
LEADERSHIP OF COMPETITIVE MANAGEMENT.
.

22

(D) AIANGOS SUGGETIONS ON RECOMMENDATIONS

AS PER THE EXISTING PATTERN THE 39 ORDNANCE FYS ARE WORKING
UNDER ONE SINGLE NETWORK AS A GOVT. DEPARTMENT, AND ANY ATTEMPT
TO TRIFURCATE THEM RETAINING SOME FYS IN THE EXISTING SET-UP UNDER
THE GOVT. DEPT, AND CONVERTING OTHERS AS TWO CORPORATIONS MAY
PROVE COUNTER PRODUCTIVE SINCE THE CONNECTIVITY BETWEEN THESE 39
FYS REGARDING MEETING USERS REQUIREMENTS AND EXISTING ACTIVITIES
OF BEING PRESENTLY ENGAGED IN THE DEVELOPMENT OF NEW WARFARE
ITEMS CATERING TO THE NEEDS OF THE USERS, MAY SUFFER A MAJOR
SETBACK.
KEEPING IN VIEW THE EXISTING GLOBAL SCENARIO, THE POLITICAL
RELATIONS WITH THE NEIGHBORING COUNTRIES AND THE DEFENCE
PREPAREDNESS OF THE COUNTRY O IT IS SUGGESTED THAT

THIS ASSOCIATION OPPOSES THE PLANNED CONVERSION OF SOME

ORDNANCE FACTORIES INTO CORPORATIONS. AS SUCH NO HASTY
DECISION BE TAKEN TO CORPORATISE ANY OF THE INDIAN ORDNANCE
FACTORIES AS THESE UNITS BEING STRATEGICALLY PLANNED AND
DESIGNED, ARE ENGAGED IN THE MOST VITAL AND SENSITIVE ISSUE OF
PRODUCTION /SUPPLY OF ARMS /AMMUNITION TO THE MAN OF THE
FIGHTING FORCES WHO SHED THEIR BLOOD TO DEFEND BORDERS OF
OUR COUNTRY , AND NOT OF ANY CONSUMER ITEM OF GENERALISED
IMPORTANCE.

THE 39 ORDNANCE FYS HAVING INTER-CONNECTIVITY BE RETAINED IN

ITS PRESENT EXISTING SINGLE SET-UP AS A GOVT. DEPARTMENT UNDER
MINISTRY OF DEFENCE.

TO ADDRESS THE ENLISTED SHORTCOMINGS AND STRENGTHENING THE

ORDNANCE FACTORIES, IT DO NOT ESSENTIALLY REQUIRE TO MAKE
ANY STRUCTURAL CHANGES, BUT CAN BE ADDRESSED THROUGH
NECESSARY GOVERNMENTAL ORDER TO GRANT THE FULL AUTONOMY
TO O.FYS FUNCTIONING UNDER THE OF BOARD AT PAR WITH THE
RAILWAY BOARD WHICH IS FUNCTIONING AS GOVT. DEPARTMENT WITH
FULL AUTONOMY AND HAS CREATED HISTORY AS THE MOST
SUCCESSFUL SINGLE LARGEST ORGANISATION OF THE WORLD
FUNCTIONING UNDER GOVERNMENTAL SET- UP. WE ARE CONFIDENT
THAT WHEN EVEN AFTER THE ENLISTED SHORTCOMINGS DUE TO LACK
OF AUTONOMY THE ORDNANCE FACTORIES HAVE BEEN FUNCTIONING
WITHOUT ANY BUDGETARY SUPPORT AND HAVE BEEN GENERATING THE
NET SURPLUS FOR THE COUNTRY WHILE MAINTAINING THE SUSTAINED
GROWTH RATE. IT IS NEEDLESS TO SAY THAT MANY OF THE PSU S /
CORPORATIONS NEITHER EARN ANY PROFIT NOR HAVE RECORDED ANY
GROWTH.

23

AFTER GIVING FULL AUTONOMY TO THE OF BOARD, IT SHOULD BE KEPT

UNDER OBSERVATION FOR A PERIOD OF 5 YEARS TO MONITOR THE
DEVELOPMENTAL CHANGES AS A RESULT OF GIVEN
AUTONOMY. IN
CASE THE DESIRED CHANGES ARE NOT VISIBLE THEN THE GOVT.
SHOULD FORMULATE THE REVIEW COMMITTEE COMPRISING OF THE
SENIOR SERVING / RETIRED BUREAUCRATS AND TECHNOCRATS
(DEFENCE PRODUCTION / FINANCIAL EXPERTS) FOR TAKING FURTHER
NECESSARY MEASURES.
CONCLUSION

IN VIEW OF THE FOREGOING PARAS IT IS SUBMITTED THAT THE

ORDNANCE FACTORY ORGANISATION BE ALLOWED FULL FINANCIAL AND
OPERATIONAL AUTONOMY WITH ENHANCED DECISION MAKING POWER
.WE ARE CONFIDENT THIS WILL ADDRESS THE ENLISTED AREAS OF
SHORTCOMINGS. AS SUCH ALL THE 39 ORDNANCE FACTORIES BE
CONTINUED TO FUNCTION UNDER THE ORDNANCE FACTORY BOARD WITH
THE GOVERNMENTAL SET-UP, SO AS TO ENSURE THAT THE
ORGANISATION EMERGES AS THE WORLD CLASS DEFENCE PRODUCTION
BASE.
THANKING

YOU ,
( R. R .PASHINE )
GENERAL SECRETARY

Copy to:
Chairman
OFB HQ Kolkata

( Through Dir / IR)

24

AIANGOS CE HQ KHAMARIA

EXTRACT: DRAFT RECOMMENDATIONS Dr KELKAR COMMITTEE ON

RESTRUCTURING OF ORDNANCE FACTORIES
THE COMMITTEE HAS ALSO GONE THROUGH EXTENSIVE STUDIES THAT HAVE BEEN
DONE IN THE PAST IN THIS AREA. BASED ON INPUTS FROM PREVIOUS AND OUR OWN
DISCUSSIONS WITH THE CONCERNED AGENCIES OUR COMMITTEE RECOMMENDS
THAT ALL
EXISTING OFYS SHOULD BE GROUPED INTO THREE CATEGORIES
DEPENDING UPON THE NATURE OF EQUIPMENT PRODUCED BY THESE UNITS. THE
THREE CATEGORIES UNDER WHICH ORDNANCE FACTORIES WOULD BE GROUPED
COULD BE AS FOLLOWS: STRATEGIC
THIS GROUP WOULD CONSIST FACTORIES WHERE ITEMS HAVE
TO BE PRODUCED INDIGENOUSLY AT ANY COST, INVOLVE HIGHLY COMPLEX
TECHNOLOGY AND WHERE QUANTITY MAY NOT BE LARGE
BUT WOULD ANY
HOW NEED TO BE PRODUCED IN STRATEGIC INTEREST OF THE COUNTRY.
ESSENTIAL
THIS CATEGORY WOULD INCLUDE FACTORIES THAT HAVE
REASONABLE CORE COMPETENCIES, SKILL SETS, CAPACITIES AND PRODUCE
LARGE VOLUMES OF MASS WEAPONS ITEMS AND SYSTEMS REQUIRED BY THE
ARMED FORCES. THE COMMITTEE FEELS THAT SUCH FACTORIES HAVE
TREMENDOUS POTENTIAL TO IMPROVE THEIR COMPETITIVENESS.
NON-CORE
THIS CATEGORY WOULD INCLUDE FACTORIES THAT PRODUCE
ITEMS THAT ARE ANY WAY MASS PRODUCED IN THE COUNTRY IN THE CIVILIAN
SECTOR ALSO.
THE COMMITTEE RECOMMENDS THAT THE STRATEGIC GROUP SHOULD BE
RETAINED IN ITS EXISTING STRUTURE IN THE INTEREST OF NATIONAL SECURITY
WHILE
THE ESSENTIAL AND NON-CORE GROUPS SHOULD BE CORPORATISED UNDER
LEADERSHIP OF COMPETITIVE MANAGEMENT.
THE COMMITTEE ALSO RECOMMENDS THAT CORPORATISATION COULD BE ON THE
LINES OF BSNL. ALSO AS PART OF HAND-HOLDING PROCESS THE EXISTING
DISPENSATION BY THE GOVERNMENT TO THE ORDNANCE FACTORIES SHOULD
CONTINUE TO BE GIVEN TO OFS FOR A PERIOD OF ANOTHER THREE YEARS TO HELP
THEM STEER THE CHANGE PROCESS, INTERNALLY. ALONG WITH THE FINANCIAL
SUPPORT ORDNANCE FACTORIES WILL ALSO REQUIRE TRAINING SUPPORT NOT
ONLY TO UPGRADE THEIR SKILL SETS ,BUT ALSO ADOPT MODERN MANAGEMENT
PRACTICES. THIS WOULD HELP THE TWO CORPORATIONS EMERGE STRONGER POST
TRANSITION PERIOD.

25

FINAL REPORT OF THE DR VIJAY KELKAR COMMITTEE

ON RESTRUCTURING OF ORDNANCE FACTORIES

* THE REPORT RECOMMENDS CORPORATRISATION OF ALL THE 39

ORDNANCE FACTORIES UNDER

ONE CORPORATION.

* THE REPORT HAS BEEN PRESENTED TO THE PARLIAMENTARY

COMMITTEE ON DEFENCE ON 7 th & 8 th NOV 2005.
* THE REPORT HAS BEEN SUBMITTED TO THE DEFENCE MINISTER ON
10-11-2005
FINAL DECISION OF THE GOVT IS AWAITED.

26

AIANGOs/CE/KH/05/

DT 19-11-2005

TO,
THE RAKSHA MANTRI
RAKSHA MANTRALAYA
SOUTH BLOCK DHQ PO
NEW DELHI

SUB :- OBSERVATION OF ANTI CORPORATISATION DAY AGAINST THE

FINAL REPORT OF DR. KELKAR COMMITTEE ON RESTRUCTURING
OF ORDNANCE FACTORIES
REF :- 1. Draft recommendations of Dr Kelkar Committee circulated vide
MOD NO. 8(1)/2004/D (S-III ) Dated June 2, 2005
2. Memorandum submitted by AIANGOs vide our letter no
AIANGOs/CE/KH/05/01 Dt 06-07-2005
3. Meeting with Chairman OFB Hq Kolkata held on 09-11-2005
Sir ,
I have been directed to submit the following for your information and
necessary action please.
2

This association has come to know that Dr Kelkar committee on

restructuring of ordnance factories and the Defence PSUs has submitted the final
report to the Govt on 10-11-2005, wherein it has been recommended to
corporatise all the 39 factories under a single corporation. We had received the
draft recommendation of the committee vide MOD letter referred at (i) above, and
we had submitted our memorandum incorporating the Para-wise comments on
the same. It is most unfortunate that ultimately the committee has finally
recommended to corporatise the ordnance factories.

This association opposes the planned conversion of the ordnance factories

into corporations. It is reiterated that no hasty decision be taken to corporatise

27

any of the Indian Ordnance factories as these units have been strategically
planned/designed and are engaged in the most vital and sensitive issue of
production/supply of arms ammunition to the man of the fighting forces, who
shed their blood to defend the boarders of our country ,and not of any consumer
item of generalized importance.
4.
The 39 Ordnance factories having inter connectivity be retained in its
present existing set - up as a government department under the ministry of
Defence..
5.
To address the enlisted shortcomings and strengthening the
ordnance factories, it do not essentially require to make any structural changes,
but can be addressed through necessary governmental order to grant the full
autonomy to O.Fys functioning under the OF Board at par with the railway board
which is functioning as govt. department with full autonomy and has created
history as the most successful single largest organisation of the world
functioning under governmental set- up. We are confident that, when even
after the enlisted shortcomings due to lack of autonomy the ordnance factories
have been functioning without any budgetary support and have been generating
the net surplus for the country while maintaining the sustained growth rate. It is
needless to say that many of the PSUs / Corporations neither earn any profit nor
have recorded any growth.
6
As communicated through our memorandum referred at (ii) above it is
once again submitted that the ordnance factory organisation be allowed full
financial and operational autonomy with enhanced decision making power .we
are confident this will address the enlisted areas of shortcomings. as such all the
39 ordnance factories be continued to function under the Ordnance Factory
Board with the governmental set-up, so as to ensure that the organisation
emerges as the world class defence production base.
7
As a mark of protest against the proposed corporatisation by the Dr
Kelkar Committee the members of this association working in the ordnance
factories and the Quality Assurance organisations under DGQA, DGAQA &
DGANAI through-out the country shall wear black badges during the working
hours on 25-11-2005, observing the day as ANTI_CORPORATISATION DAY.
It is also requested that before taking any final decision on the Dr Kelkar
Committee report the matter should be discussed in depth with the employees
representatives of the Federation/Associations functioning in the Ordnance
factories.
Thanking You ,
Sincerely Yours
( R.R. PASHINE )
General Secretary
Copy to:
The Secretary
Ministry of Defence New- Delhi
The Secretary Defence Production

28

Ministry of Defence South Block New-Delhi

Chairman OFB HQ Kolkata
Director General
DGQA HQ New-Delhi
Director General
DGAQA HQ New-Delhi
Director General
DGNAI HQ New-Delhi

Dear Sir,
Participation of 13 employees of Ordnance Factory Medak for the progrmme RM02 is confirmed.

Details of RM 02- Short term training on dry rubber goods manufacture is given below.
Course Content: Natural and synthetic rubbers, compounding ingredients, principles of rubber
compounding, moulded, extruded and calendered goods, process control and vulcanisates tests etc.
Duration : 8days
Date : 09-18 February 2015 (14 & 15 th January 2015 are holidays being Saturday& Sunday)
Fees: Rs.3200/- per person. + (service tax 12.36%)
Payments:- The course fee can be remitted to our account with Central Bank of India, RRII, Kottayam
IFSC Code CBIN 0284156 A/c No. 1450300184. Please bring the remittance receipt at the time of
registration at Rubber Training Institute.
Accommodation: Accommodation at the RTI hostel is available @ Rs. 250/- per day for boarding &
lodging during training days and Rs. 375/- per day on intervening holidays. Also a list of Hotels in
Kottayam with phone Nos. is available in our webwww.rubberboard.org.in
For Clarifications contact Ph.no.0481 2353325
SMS (RT)

29

Dear Sir,
Participation of 13 employees of Ordnance Factory Medak for the progrmme RM02 is confirmed.

Details of RM 02- Short term training on dry rubber goods manufacture is given below.
Course Content: Natural and synthetic rubbers, compounding ingredients, principles of rubber
compounding, moulded, extruded and calendered goods, process control and vulcanisates tests etc.
Duration : 8days
Date : 09-18 February 2015 (14 & 15 th January 2015 are holidays being Saturday& Sunday)
Fees: Rs.3200/- per person. + (service tax 12.36%)
Payments:- The course fee can be remitted to our account with Central Bank of India, RRII, Kottayam
IFSC Code CBIN 0284156 A/c No. 1450300184. Please bring the remittance receipt at the time of
registration at Rubber Training Institute.
Accommodation: Accommodation at the RTI hostel is available @ Rs. 250/- per day for boarding &
lodging during training days and Rs. 375/- per day on intervening holidays. Also a list of Hotels in
Kottayam with phone Nos. is available in our webwww.rubberboard.org.in
For Clarifications contact Ph.no.0481 2353325
SMS (RT)

30