India News | Govt Constitutes EGoM Led by Rajnath to Oversee OFB's Corporatisation
Get latest articles and stories on India at LatestLY. Following Centre's decision to convert Ordnance Factory Board (OFB), a subordinate office of Ministry of Defence (MoD), into one or more than one 100 per cent Government-owned corporate entities, the Government has constituted an Empowered Group of Ministers (EGoM), under the chairmanship of Defence Minister Rajnath Singh.
New Delhi [India], September 11 (ANI): Following Centre's decision to convert Ordnance Factory Board (OFB), a subordinate office of Ministry of Defence (MoD), into one or more than one 100 per cent Government-owned corporate entities, the Government has constituted an Empowered Group of Ministers (EGoM), under the chairmanship of Defence Minister Rajnath Singh.
EGoM will oversee and guide the entire process, including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits, according to a release by the defence ministry.
Union Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Minister for Law & Justice Ravi Shankar Prasad, Minister of State for Labour & Employment Santosh Kumar Gangwar and Minister of State for Personnel, Public Grievance & Pension Dr Jitendra Singh are also in the EGoM.
The Terms of Reference (ToR) of the EGoM inter alia include the decision on the conversion of OFB into a single Defence Public Sector Undertaking (DPSU) or as multiple DPSUs.
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Matters related to various categories of employees including protection of their salary and pension of existing employees, financial support that may be provided to the entity/entities to make them economically viable and self-reliant, grandfathering of orders already being executed by OFB or for which facilities created in OFB and treatment for land assets of OFB are among other terms of reference.
The composition of EGoM along with ToRs have been communicated to the OFB and various Federations, Unions and Associations at Board/ Factory/Unit level and they have been requested to place all their suggestions, issues and concerns relating to corporatisation of OFB before the EGoM.
"The Department has also selected M/s KPMG Advisory Services Pvt. Ltd. (Lead Consortium Member) with M/s Khaitan& Co. Ltd. as another Consortium Member, as the Consultancy Agency for providing strategic and implementation management consulting services to assist the Department of Defence Production in the process of corporatisation of the OFB," read the release. (ANI)
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