What is meant by corporatisation?
What is meant by corporatisation?
Corporatization refers to the restructuring or transformation of a state-owned asset or organization into a corporation. These organizations typically have a board of directors, management, and shareholders.
Why is corporatisation important?
Corporatization is intended to create greater financial transparency, reduce political interference, and strengthen managerial accountability.
What is the impact of the restructuring of Ordnance Factories?
The pension liabilities of the retirees and existing employees will continue to be borne by the Government. This restructuring is aimed at transforming the Ordnance Factories into productive and profitable assets, deepen specialization in the product range, enhance competitiveness, improve quality and cost-efficiency.
Should the Ordnance Factory Board (OFB) be corporated?
Corporatisation of the Ordnance Factory Board will bring about competitiveness, improve efficiency, quality and accountability. Nothing speaks more about the priorities of the leadership of the Ordnance Factory Board (OFB) than its threat to go on a strike in the middle of a national security crisis.
What does the government’s plan to corporatize Ordnance Factories mean?
In a landmark decision, the Union cabinet on Wednesday approved the plan to corporatize the 41 Ordnance Factories into seven fully government-owned corporate entities, based on their production type. It means, the Ordnance Factory Board, establishment by British India in 1775, will cease to exist.
What is the history of the Board of Ordnance?
The OFBs originated in 1775 as British authorities accepted the establishment of Board of Ordnance in Fort William, Kolkata. In 1787 a gun powder factory was established at Ishapore which started production from 1791. There were 18 ordnance factories before India became independent in 1947.