State Finance and Health Minister Harish Rao has appealed to Union Defence Minister Rajnath Singh to halt the corporatisation of the Medak Ordnance Factory and other ordnance factories in the country.
Harish said argued that these facilities play a critical role in national defence and that corporatisation could have negative consequences for both the country’s security and the thousands of employees who work in these factories.
In his appeal, Harish expressed concern that privatising seven public sector units in the defence sector could lead to competition that could hinder the development of new weapons and undermine the Make in India initiative.
He also said that the Medak Ordnance Factory had sufficient work for its staff in the previous financial year, but lack of work in the current financial year could lead to the factory being declared a “sick unit,” resulting in loss of employment for 2,500 employees directly and 5,000 people indirectly.
Responding to a request from the Ayudha Karmagara Telangana Employees Samakhya, Harish presented six demands to Union Defence Minister Rajnath Singh.
They are rolling back the decision to privatise defence enterprises, strengthening R&D, modernising facilities, providing skill training to employees, simplifying administration and procurement procedures and giving orders to the ordnance factory in line with army requirements.
Considering the importance of ordnance factories to national defence and the potential negative impact of corporatisation, Harish urged the Centre to scrap its move to privatise these critical facilities.
The appeal comes amidst growing concerns about the impact of corporatisation on India’s defence production sector with some experts warning that corporatisation could lead to a loss of autonomy and endanger the country’s security.
