Restructuring and Privatisation Policy

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The Government had constituted an Expert Committee on enhancing combat capability and re-balancing defence expenditure under chairmanship of Lt. General DB Shekatkar (Retd).  On the basis of recommendations of the Committee, the Government has decided to disband two Advance Base Workshops, one Static Workshop and four ordnance depots.  Also, eight Army Base Workshops are recommended to be corporatized on Government Owned Contractor Operated (GOCO) model.  The above decisions have been taken in the overall interest of the Army and the Nation.

The functioning of different organizations including defence workshops has been reviewed and interaction held from time to time with stakeholders.

A decision has been taken in the Ministry to declare 275 items produced by Ordnance Factories as non-core, as these items can be easily procured by the Users from private players.  No retrenchment of employees would take place as a result of this decision and the available manpower will be re-trained and re-skilled on voluntary basis to work in core areas of production as per their changed specialization.

This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Shri Kodikunnil Suresh in Lok Sabha today

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