BPMS: Drastic reduction in Budgetary support to Ordnance Factories
REF: BPMS /MOD /Budget /186 (8/1/R)
Dated: 10.02.2018
To
Smt. Nirmala Sitharamari, Defence Minister,
Government of India,
South Block, New Delhi
Sub :
Drastic reduction in Budgetary support to Ordnance Factories
Hon'ble madam,
With due regards, I would like to bring the following for your kind personal intervention at the earliest please:-
We
were not surprised on your statement speaking on the eve to mark 90
years of the setting up of leading industry body FICCI on 14.12.2017
when you said: "This may be a proper and suitable occasion to say that I
am doing a major review of the ordnance factories, to make sure we
understand where they are, what is it that they have to be given, are
they going to be in a position to be joint venture partners for people
trying to benefit from transfer of technology… so OFBs (ordnance factory
boards) are also being looked into."
But we are consternated to
note that all of a sudden the government has drastically cut down the
Budgetary support of the Ordnance Factories, both for the Revised
Estimates for the year 2017-18 and the Budgetary Estimates for the year
2018-19. In the current year Value of Issue for Army was planned at Rs.
14496 crore which has been reduced to Rs. 11419 crore (reduction by
21.22%). Budget Estimate for the year 2018-19 indicates reduction from
Rs. 14872 crore to Rs. 11743 crore for issues to Army. Due to this,
spares of 'A' Vehicles and Artillery Guns, sighting Systems and
Electronics, General Stores and Clothing, Small Arms cannot be supplied
to Army. This will have a cascading adverse effect on the capacity
utilization of concerned 12 Ordnance Factories, pay pocket of employees
and society at large.
As a major stakeholder, this development is
being view with great concern as it directly and brutally affects not
only the Defence Production sector per se, but the war preparedness of
the Nation too.
In this connection we seek to bring to your kind
attention various correspondence of this Federation wherein we have
reiterated the fact that depending on the Private Sector on critical
supplies have been a failure till date and will continue to be so in the
future too, after all, this sector cannot just perform on the single
point agenda of "return on investment", the mainstay of the private
enterprises.
Suffice to mention once again that the private
sector can only make sound & fury but cannot deliver due to the
vagarity of the situation prevalent in defence purchases.
It is
worth to mention here that erstwhile Defence Minister, Shri Manohar
Parrikar had been encouraging the Ordnance Factories'
employees/organization as they ensured defence production upto Rs 14,000
crore in the financial year 2015-16. He noticed that the output of the
ordnance factory had improved for the first time by 17 per cent. It was
stagnant for four to five years and hovering around Rs 10,000 to Rs
11,000 crore. He used to say, "
Ordnance Factories have
achieved new milestones in production of ammunition and defence weapons.
These defence establishments have a bright future for feeding defence
products for security of the nation. Now, ordnance factories are eyeing
production of Rs 20,000 crore in near future,"
The drastic
reduction in Budgetary support, it is apprehended, will entail stoppage
of supplies of various critical spares, general items, electronic items
and even small arms and ammunitions, directly affecting the work load of
more than a dozen factories and thousands of workmen.
In view of
the above, we seek your kind personal intervention in the matter with
an request to restore the budgetary support to its original state to
avoid a major collapse of supplies which may eventually cause impediment
to the war preparedness of the Nation.
An immediate action in the matter is therefore solicited.
Thanking you in anticipation.
Sincerely yours
S/d,
(MUKESH SINGH)
Secretary/BPMS &
Member, JCM-II Level Council (MOD)
Source : BPMS
