Govt sets up Empowered Group of Ministers to oversee OFB’s Corporatisation

Central Government has constituted an Empowered Group of Ministers (EGoM) to oversee the process of the corporatisation of the Ordnance Factory Board (OFB). Defence Minister Rajnath Singh is the chairman of this EGoM. As part of the “Aatmanirbhar Bharat” (self-reliant India) initiative, the government had announced on May 16 that it would improve the autonomy, accountability and efficiency in ordnance supplies by converting the OFB, which is a subordinate office of the defence ministry, into one or more government-owned corporate entities.

Boost your Banking Awareness Knowledge with Adda247 Live Batch: TARGET GA BATCH | Banking Awareness Batch for SBI, RRB, RBI and IBPS Exams

About Empowered Group of Ministers (EGoM):

  • EGoM will “oversee and guide the entire process of corporatisation, including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits”.
  • The ordnance factories form an integrated base for indigenous production of defence hardware and equipment.
  • Corporatization is the process of transforming state assets, government agencies, or municipal organizations into corporations.
  • The OFB has 41 factories under it to produce ordnance for the country’s armed forces.