ESMA doesn't guarantee that the employees won't make duds out of spite. Government got a once in a lifetime justification to privatize OFB (betrayal in time of war).
Private industry can churn out better quality products at far greater economies of scale and production rate than OFB.
The Govt. just needs to say yes, when and pay them on time.
Go to Tiruppur in TN - The best quality 180 GSM biowashed T-Shirts start at Rs. 110-115. Cargos, clothing, jackets, you name it. How much does OCF charge the defence forces?
Only in India do you have a tailoring unit called OCF that eats into Defence Budget and dares the Govt. of going on strike.
Float a requirement for 20 lakh t shirts, you will have the whole textile industry scrambling to get a pie at competitive rates and they can probably fill the orderbook within a few weeks. What's more, MoD won't have to support Tiruppur and its factories when there are no orders forthcoming, no pension liability either.