82,000 employees of Ordnance Factory Board go on strike | Photo Credit: Times Now

Forty-one factories, 82,000 employees - but this is not an ordinary strike. Workers of the Ordnance Factory Board (OFB), which makes critical arms and ammunition for the armed forces and the para-military outfits are on strike from today and already, there is a concern in South Block.

The OFB is currently a "subordinate" or "attached" office of the Ministry of Defence and the government proposes to "corporatise" or convert it into public sector firms. This, the government says, will ensure autonomy to the OFB and allow more research and development, quality control and early decision for better marketing and technological upgradation. Naturally, this could make them more accountable. Top government sources emphasised that corporatisation was not privatisation.

This is what Saurabh Kumar, chairman OFB, has said about the proposed month-long strike: "(It) is aimed at providing greater flexibility in day-to-day functioning, increased operational freedom, autonomy in decision-making, leading to enhanced productivity."

The three unions oppose corporatisation and have said it is a breach of past assurances. They also say they were not consulted.

The worry in South Block relates to defence preparedness particularly if the strike continues.

These are the weapons the 41 factories produce: Artillery - the 155 mm guns and also, the 105mm and 130mm guns, rifles, carbines, small arms, mortars and rocket launchers.

* Ammunition for all the weapons, besides, explosives, fuses, bombs, rockets and other chemicals

* Different kinds of tanks for the armoured corps, including the T-90 main tattle tank, the indigenous Arjun tank, the T-72 tank, the armoured personnel carrier, engines and night vision devices

* Combat uniforms, bridges, boats, cables, parachutes

* Trucks mine-protected and special security vehicles.

The armed forces are clearly worried about the long strike. Ammunition, not to speak of rifles and carbines are essential; they are required for fighting terrorists in Jammu and Kashmir. There is also the matter of replying to the firing of small arms and mortars from across the Line of Control. The armed forces have handed over a list of absolutely essential items to the OFB. Sources said that the OFB top-brass has promised to keep supplies going. But there are, quite naturally, concerns about the OFB keeping its promise. And the strike will not just affect the armed forces, but also the para-military forces.

The OFB supplies a substantial amount of arms and ammunition to the armed forces. In the last financial year, it supplied material worth Rs 10,900 crores (down from Rs 13,600 crore the previous year) to the army, worth Rs 458 crores to the Navy and material worth Rs 764 crores to the air force. The Home Ministry bought arms and ammunition worth Rs 1,260 crore.

Top government sources said there were a number of reasons why corporatisation was necessary. They are:

* The armed forces have received poor quality of manufactured goods. A lot of the stuff produced is returned for rectification.

* The cost of production, because of high overheads and maintenance charges and also, large inventories because of "unprofessional procurement".

* Lack of innovation.

* Low productivity. There is no penalty for delayed delivery to the armed forces.

* Lack of flexibility as decisions relating to modernisation, entering into joint ventures, and transfer of technology agreements - because OFB is a government organisation - is subject to certain regulations.

* As a government organisation, it has no incentive to make profits.

* In the last six years, there have been 10 chairmen. As a result, bold, long-term decisions are difficult.

Even earlier, committees have spoken about restructuring. The T.K.A. Nair committee of 2000, the Vijay Kelkar committee of 2004 and the Raman Puri committee of 2015 have also spoken about major changes. Nair had suggested that the OFB be converted into the Ordnance Factory Corporation. Kelkar felt that the OFB could be corporatised the way the Bharat Sanchar Nigam Ltd (BSNL) was as in its present state it would have to fight the problem of obsolescence continuously. Puri had said the OFB should be broken up into three or four DPSUs.

Top government sources have listed over a dozen reasons for corporatisation, an internal memo suggests. They are: to improve levels of efficiency, reduce import dependency, improve combat effectiveness of the armed forces, more exports, better availability of technology, long-term job-creation, higher production capacity, improved flexibility, competitive pricing, better utilisation of capacity, better supply of material, the utilisation of indigenous technology, improved profit, better leadership, financial independence and the ability to link up with foreign firms.

Now, it is about the government and the unions, three of them affiliated to political parties. Just how long the strike lasts and how much it affects preparedness will have to be seen.