New Delhi: Amid strike by Ordnance Factory Board (OFB) employees, Defence Ministry on Wednesday said that OFB’s products are of high cost, have poor quality issues and there is lack or minimal innovation in the factories.

It said the proposed transformation of OFB into a public sector corporate entity will improve efficiency, reduce import dependence and enhance combat efficiency of the armed forces.

Only last week the MoD had clarified, as reported by ANI, that there was no proposal to privatise the OFB. It said the government was considering plans to turn the OFBs into public sector units fully owned by the Defence Ministry.

Defence Production Secretary Ajay Kumar said that discussions were being held by a committee regarding the corporatisation of the OFB. He said, “Discussions are continuously being held by a Committee of very senior officials of MoD with employees federations of OFB.”

Kumar said that the Defence Ministry is going to engage with OFB employees federation in a positive and constructive manner on all aspects relating to the corporatization of OFB. “It was also clarified that Govt isn’t proposing to privatise OFB. Any apprehension in this regard is misplaced,” he added.

Ordnance factory’s unions across India have been on strike since Tuesday in protest against the handing over of the ordnance factories of the country to the corporate sector. The strike is likely to continue for a month, till September 19.

According to a release issued by the protesting unions, the strike against the corporation of ordnance factories. The unions alleged that the Indian ordinance defence factories, which are called the fourth pillar of national security, were being handed over to the corporate companies, putting the national security in danger.