Defence Ministry appoints guide for corporatisation of OFB

Written by Sushant Kulkarni
| Pune |

September 11, 2020 2:40:09 pm

india defence ministry, Ordnance Factory Board, Ordnance Factory Board corporatisation, indian express newsThe strike poll referred to as by these federations in opposition to the proposal had concluded June 17 and employees had voted in favour of a nationwide strike in opposition to the corporatisation. (Representational)

THE Ministry of Defence on Thursday mentioned that it has chosen a KPMG Advisory Services- led consortium because the guide for corporatisation of the Ordnance Factory Board (OFB).

In a press assertion, the MoD acknowledged, “Consequent to analysis of the technical and monetary proposals of the bidders, the Department has chosen M/s KPMG Advisory Services Pvt Ltd, the Lead Consortium Member with M/s Khaitan & Co Ltd as Consortium Member, because the Consultancy Agency for the mentioned venture. The contract with the consultancy company can be signed shortly and subsequently, the consultancy company would begin its providers as per the phrases and situations of the contract.”

The three important federations of the employees have mentioned that they are going to go on indefinite nationwide strike on October 12, as introduced earlier, and have pointed to complaints to Central Vigilance Commission about alleged irregularities within the bids referred to as for collection of the guide.

In the primary week of July, the Department of Defence Production (DDP) of the MoD had invited Expression of Interest (EOI) cum Request for Proposal (RFP) for the collection of a guide for strategising and implementing the proposed corporatisation.

The three important federations of the employees, which signify over 85 per cent of the 82,000 workforce from 41 ordnance factories throughout the nation, have strongly opposed the proposal of corporatisation since its inception.
The strike poll referred to as by these federations in opposition to the proposal had concluded June 17 and employees had voted in favour of a nationwide strike in opposition to the corporatisation. On July 19, the federations had collectively introduced that they are going to go on strike from October 12.

The office-bearers of the three federations — Bhartiya Pratiraksha Mazdoor Sangh (BPMS) — an arm of RSS affiliate Bharatiya Mazdoor Sangh, federation of Left unions All India Defence Employees’ Federation (AIDEF) and the Indian National Defence Workers’ Federation (INDWF) of the Congress’s INTUC – mentioned they are going to touch upon specifics of the appointment of the guide after finding out the main points of the mentioned entity.

BPMS common secretary Mukesh Singh mentioned, “We are agency on our stand in opposition to corporatisation and can go on strike as deliberate on October 12. Three federations will challenge a joint assertion on this announcement of collection of the guide after finding out it and discussing it with different federations.”

C Srikumar, common cecretary of AIDEF, mentioned, “There had been two complaints which had been filed with the Central Vigilance Commission in regards to the irregularities in EOI cum RFP. This reveals that there have been critical issues with the method itself. Three federations had collectively written to the defence minister and likewise the President of India, searching for intervention within the course of.”

As a part of the Atmanirbhar Bharat bundle, Finance Minister Nirmala Sitharaman had in May introduced the choice of corporatisation of OFB for “enhancing autonomy, accountability and effectivity in ordnance suppliers”.

The three federations have argued {that a} company entity wouldn’t be capable of survive the distinctive market atmosphere of defence merchandise, which have very unstable demand and provide dynamics.

The MoD invitation for EOI cum RFP had mentioned, “The guide shall work in shut interplay with the DDP to provide a complete report for corporatisation of OFB, conserving in thoughts the background and targets. This should allow the DDP to find out the best-suited mannequin for changing OFB into a number of company entity(ies), in gentle of the prevailing monetary, authorized, operational and financial situation…”.

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