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Production halts as strike hits ordnance factories

Champion_Usmani

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KOLKATA/NAGPUR: Production of defence materiel like ammunition, rifles, artillery guns, tanks and aerial bombs came to a standstill after three unions operating across all the 41 ordnance factories in India jointly went on a month-long strike from Tuesday.


All unions, including Bhartiya Mazdoor Sangh — the trade union wing of RSS — have threatened to continue the strike till September 19 after talks with government failed. According to figures available with the Ordnance Factory Board, only about 10% of employees (below officer rank) turned up for work at the factories.

The agitation by nearly 82,000 permanent employees and 40,000 temporary staff of the ordnance factories under the three outfits — All-India Defence Employees’ Federation, Indian National Defence Workers’ Federation and Bhartiya Pratiraksha Mazdoor Sangh — are agitating against a decision by the Centre to corporatise the ordnance factories.

https://timesofindia.indiatimes.com...s-ordnance-factories/articleshow/70762716.cms

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Champion_Usmani

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Strike total at all 41 ordnance factories, say unions on day one

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Government to hold talks today to resolve issues

More than one lakh workers in the 41 ordnance factories across the country started a month-long strike on Tuesday, demanding the Centre drop the move to corporatise the ordnance factory board. The government will hold parleys with the striking trade unions and officers’ associations on Wednesday.

The three major trade unions — the Bharatiya Pratiraksha Mazdoor Sangh, the Indian National Defence Workers Federation, and the All India Defence Employees Federation — claimed in a joint statement that the strike was total and there was no production on the first day.

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“The strike has commenced at 6 am and the entire workforce are staying away from work, resulting in scaling down of the defence production to zero level. Strike was a total success in Tamil Nadu, Telangana, Odisha, West Bengal, Madhya Pradesh (Jabalpur, Katni), Maharashtra, Uttar Pradesh, Uttarakhand, Bihar and Chandigarh, where the ordnance factories are located. The strike was a total success at ordnance factory board headquarters, Kolkata,” the statement said.

Arbitary move
They added that the Centre had arbitrarily decided to convert ordnance factories from a government department to a corporation or a PSU. “In the past two decades, so many committees have recommended converting the ordnance factories into a PSU. However, the ordnance factories, being war-reserve and solely dependent on the armed forces, cannot function as a commercially viable PSU. Therefore, the previous defence ministers, George Fernandes, Pranab Mukherjee, AK Antony and Manohar Parikkar have rejected those recommendations and have assured the Federations that the ordnance factories would not be corporatised,” the union leaders claimed. They alleged that the Centre, without any justification, has brought corporatisation as an agenda in its 100 days programme.

“The three recognised Federations, the CDRA and other unrecognised Federations and Trade Unions, have decided to protest against the arbitrary decision of the government. Once the ordnance factories are converted into a corporation/PSU, then in due course it will lead to privatisation by disinvestment, etc,” they said.

Strike hailed
Various central trade unions congratulated the workers of Ordnance factories for protesting the alleged privatisation move.

“It is ironic that the BJP and (Prime Minister Narendra) Modi who campaigned on the plank of ‘nationalism’ have no qualms in placing our national security at the mercy of the profit greedy corporates including foreign companies by privatising the defence sector including allowing 100 per cent FDI,” CITU President Hemalatha said in a statement.

“The ordnance factories, treated as the fourth force of defence in India, have played a crucial role in ensuring timely and quality supplies to our forces, including during the Kargil war and the surgical strikes undertaken by the Indian army on various occasions. Through their hard work and dedication, it is these workers and employees who have proved their commitment to the nation while the BJP government is trying to mortgage national security,” Hemalatha added.

The AITUC termed the Centre’s move as “anti-national.” “The government wants these 41 Indian ordnance factories to produce ₹30,000 crore worth of goods by 2024. The unions have accepted the challenge, but want the government to assure them that the plans to corporatise the ordnance factories will be shelved,” AITUC said in a statement.

https://www.thehindubusinessline.co...ies-say-unions-on-day-one/article29183842.ece
 

CONNAN

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good news let them strike they are useless anyway with substandard products , hope GOI shuts them down for good
 

Water Car Engineer

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OFB was one of Pakistan's blessings. Those days of OFB being the only ones to produce everything from small arms to tanks are coming to an end.
 
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Type59

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OFB was one of Pakistan's blessings. Those days of OFB being the only ones to produce everything from small arms to tanks are coming to an end.
Russians and other nations are happy to fill the gap. No way Tata can build tanks, unless licence production of foreign product.
 

Water Car Engineer

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Russians and other nations are happy to fill the gap. No way Tata can build tanks, unless licence production of foreign product.
Well, they are new to the game. The Russians or whoever can fill the gap, but they will need to tag with a local partner now, creating India's MIC in the long run.

Initially, they will either get ToT from outside OEMs, OEMs will help them with the platform and production, testing plant - Example -









For Example - K9 Varja, Koreans the OEMs, L&T as the local partner. First private sector armor plant. Great method.

Next PPP model.




TATA SED Model



Bharat Forge Model

Example DRDO as the design agency producing basic design, two private sector vendors produced their variants on top of it, ATAGS. This is an increasingly popular method now, finally.


With both methods working together, eventually these guys wont need foreign OEMs or DRDO for non strategic programs they way their pace is going. Eventually they will produce their own IP, with no strings attached.



The private sector will change the face of Indian defence in the next 10-20 years. They already are. For example Bharat Forge bought out a whole artillery plant from Europe years ago forcing lazy OFB to dust off the blueprints to produce Dhanush.

The largest infrastructure, automotive, etc. companies in India are entering in defence and aero, they will use outside OEM methodologies, along with what they know from their own original industry to change Indian defence. Indian armed forces lethality and efficiency will greatly improve due to them. OFB has every right to fear.
 
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Zulfiqar

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Conversion of factories into LTD Cos is the way forward.

Right now PA/POF/FWO is on a similar path since long. We are creating JVs and separate LTD cos out of the viable entities. BMR/Capex is being done by raising debt which previously was not possible fully due to legal hurdles.

One of the factories that I know about was converted into a ltd company a few years ago. Equity was injected by the military org and production capacity was significantly enhanced by raising debt.

Some factories after conversion to companies are also taking in foreign/local investors.

Especially after success of FWO expansion and few other entities in last decade, the future strategy now is to create more SPVs/JVs and manage them professionally along with raising financing from banks for BMR/Capex.

POF is working on the same strategy. However, some other organizations under MODP have to catch up and involve more private players.
 

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