Marking the auspicious occasion of Vijayadashami, Prime Minister Modi will deliver a video address on Friday during an event organised by the defence ministry and formally announce the seven new defence companies and the government’s initiative to modernise the defence sector.
On the occasion of Vijayadashami on Friday, Prime Minister Narendra Modi will make the landmark inauguration of seven new defence companies carved out of the Ordnance Factory Board (OFB), which was dissolved by the defence ministry earlier this year. In line with a decision made by the Union cabinet, the 200-year-old OFB’s assets were divided into these seven newly established defence public sector undertakings (DPSUs), and its nearly 70,000 employees transferred to these seven new entities with no change in their service conditions.
Marking the auspicious occasion of Vijayadashami, Prime Minister Modi will deliver a video address on Friday during an event organised by the defence ministry and formally announce the seven new defence companies and the government’s initiative to modernise the defence sector. According to reports, defence minister Rajnath Singh and minister of state for defence Ajay Bhatt will also be present at the occasion, along with other representatives from the defence industry.
The names of these seven new defence PSUs are – Munition India Ltd, Armoured Vehicles Nigam Ltd, Advanced Weapons and Equipment India Ltd, Troop Comforts Ltd, Yantra India Ltd, India Optel Ltd and Gliders India Ltd. The Prime Minister’s Office (PMO) said earlier that the conversion of the older defence entity into these seven brand new fully government-owned corporate entities will boost the country’s self-reliance on defence preparedness. The move will also bring about enhanced functional autonomy and efficiency and will unleash new growth potential and innovation, it said.
All the employees of OFB (Groups A, B, and C), belonging to the production units and also the identified non-production units, are to be transferred en masse to the new DPSUs on terms of foreign service. They will, however, not be provided with any deputation allowance (deemed deputation) initially for a period of two years from the appointed date, an official order stated.
It said each of the new DPSUs is required to frame rules and regulations related to service conditions of the absorbed employees and seek an option for permanent absorption from the employees on deemed deputation to the respective DPSUs within a period of two years.
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