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MEMORANDUM

From

Chhattisgarh Vidyut Mandal Abhiyanta Sangh

to

Wage Advisory Committee

Chhattisgarh State Power Companies,

RAIPUR

for

REVISION OF PAY SCALES

FRINGE BENEFITS & OTHER ALLOWANCES

OF CLASS I & II OFFICERS

(In response to CSPHCL Notice vide No. 01-01/GM (HR) / 646 Dtd. 02/03/14

read with subsequent correspondences)

Due From 01.04.2014

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Table of Contents

1. Preface - 5

2. CSEB : A Historical Perspective - 7

3. Principles of Wage Revision - 11

4. Proposed Wage Structure - 19

5. Allowances & Fringe Benefits - 25

6. Terminal Benefits - 47

Our only limitations are those which we set in

our minds.

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PREFACE Like many other things in life, ―Status‖ is also relative. The Society and the

economy both are live and dynamic. Periodic wage revision is required to address

the relative ―Status‖ in the society.

The Indian economy is all set to enter into a phase of vibrant growth. As the

economic growth has a direct co-relation with the energy demand, power sector is

also expected to witness a very vibrant shakeup. The complicated network of

electrical power rests on huge Hardware structures and intricate control Software

yet the soul of the network lies in the intangible Peopleware. With crucial

amendments in the electricity act on anvil and the increasing chorus of PPP

models, the sector is set to enter into a new era where public utilities will have to

compete with the private enterprises. The war for recruitment and retention of

competent and efficient executives is all set to intensify. Though profitability cannot

be the prime motive of any public utility, yet as spelled out by the management

guru Peter F Drucker, profit will remain the ultimate test of survival of any utility.

It is in this backdrop that recruitment and retention of competent and efficient

executives will become crucial. It seems impossible that recruits of right stamp can

be obtained and retained without paying them packages at par with competition.

Excellence is extract of sufferings and it does not come without a premium.

At this point it may be interesting to review two valuable quotes:-

The Royal Pay Commission (Islington Commission) on Public Services in India

(1912-1913) has enunciated:-

“….The only safe criterion is that Government should pay so much to their

employee as is necessary to obtain recruits of the right stamp, and to maintain them

in such a degree of comfort and dignity as will shield from temptation and keep them

efficient for the term of their service…….”

Commenting on the report of V CPC, the expert panel commented:-

“The real question which should be asked with regard to the wage revision

recommendations is not that whether the Government can afford to pay the wage

revision, rather the real question is whether the Government can afford not to pay

the wage revision.”

The instant memorandum draws heavily on this basic philosophy and we

have moved to the mainstream compensation package so that fairness is

maintained in the compensation package for officers of Chhattisgarh State Power

Companies i.e. erstwhile CSEB.

Equity is the soul of all civilization, without equity all ills flow as natural consequence.

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CHAPTER -I

Chhattisgarh State Power Companies

(Successor of CSEB)

A Historical Perspective

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CSEB: A Historical Perspective

CSEB

The Electricity (Supply) Act, 1948 came into force on 10th Sept. 1948 and with the

reorganization of States from 1.1.1956, the State Govt. vide Electricity Department

Notification No.103/XIII dated 30-03-57 had constituted the Madhya Pradesh

Electricity Board from 1.4.1957 under provision of section 5(1) read with section 1

of the Electricity (Supply) act 1948. Subsequent to bifurcation of state of MP into

MP and Chhattisgarh, Chhattisgarh State Electricity Board (CSEB) came into

existence as successor of erstwhile M.P. Electricity Board w.e.f. 1st Dec 2000 vide

GoI Notification No. 28 of 2000 Dt. 25th August 2000. With 1st January 2009, CSEB

has been unbundled in five companies, collectively called Chhattisgarh state

Power Companies.

The above brief intends to submit that irrespective of the reorganization of

SEB, autonomous character of the employer remains undisputed.

ROLE OF ENGINEERS:

The working in Electricity Board is strenuous & expertise oriented and are

defined as Essential Services. In Power Houses as well as in

400/220/132/33/11kV Sub-stations, even Class I and Class II engineers are

required to be on duty round the clock. If there is any break-down either in the

Plant or in the Line or in Sub-stations, the same is required to be immediately

attended. Moreover, working conditions are categorized as hazardous. The

generation wing officers suffer from pollution in the thermal stations, the load

dispatchers / transmission wing officers bear the challenge of maintaining the

demand / supply balance and distribution engineers have to every day pass the

litmus test of dealing with the tension of political tinge and public expectations.

Traditionally, the Engineers of the Board are well known for their

quality work in the Power Sector. Few citations about MPEB (predecessor of

CSEB) will suffice to describe their devotion, hard work, sense of duty and

responsibility.

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Dr. N.Tata Rao, Padmshri, former Chairman APSEB, stated that :-

“Madhya Pradesh is lucky-very lucky indeed to have in MPEB, Engineers

and staff of whom anyone in the entire world can be proud of associating himself

with, for doing almost impossible things.”. He further states, “MPEB can still claim

to have officers of this type who could devote themselves more to work of the

Board in every sphere without ever thinking of their own notional comfort”.

MPEB‘s Ex-Chairman Shri G.Jagathpati (IAS) stated—

“May I conclude by saying that MPEB’s Engineers, Officers, and workers are

among the finest and most devoted this country has. In spite of crippling, capacity

shortage, I believe we have not fared badly. ……... Given the devotion and the

efficiency of its employees, I should be pardoned for my immodesty in saying that

it is impossible for the Board not to be efficient”.

Since the formation of new state, role of engineers working in the

CSEB has been more demanding and challenging. Taking into account the

resource constraints, the engineers outperformed the expectations.

EARLIER REVISIONS:

The Scale of Pay of the employees of MPEB was first revised through

collective bargaining w.e.f. 1st April 1969 and thereafter, followed subsequent

revisions w.e.f. 1st April 1974, 1st April 1980, 1st April 1984, 1st April 1989 & 1st April

1994. The Pay Revision of the erstwhile MPEB became due w.e.f. 1st April 1999.

The need and right of the pay revision was accepted by all the parties..

For wage revisions due w.e.f 01.04.1999 and 01.04.2004, CSEB, successor

of the erstwhile MPEB, had set up a wage advisory committee under Hon‘ble Retd.

Chief Justice (High-Court) G.G. Sohani. On the basis of the recommendations of

the committee CSEB provided the respective wage revisions. The last revision was

done vide Notification No. 01-03/WAC/1229, Dtd 07.04.2010 and now the revision

has become due w.e.f. 01/04/2014.

***

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CHAPTER -II

PRINCIPLES OF

WAGE REVISION

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PRINCIPLES OF WAGE REVISION

Since the dawn of civilization, the payment of wages has been a very crucial

subject. According to David A. Hume, it dates back at least to the time of Christ.

Reference to payment for labour is made in the Holy Bible, the Gospel according

to Matthew 20:1-2:

"For the Kingdom of heaven is like a landowner who went out in early

morning to hire men to work in his vineyard. He agreed to pay them a

denarius for the day and sent them into his vineyard."

In ‗Arthshastra’ Kautilya advised the King:

“….in the happiness of his subjects lies his happiness, in their welfare

his welfare; whatever pleases himself he shall not consider as good, but

whatever pleases his subjects, he shall consider as good.”

Before we proceed for submission of our proposal for pay revision, it seems

essential to narrate a brief of principles laid down by various pay commissions, on

which we have rested our case.

GENERAL PRINCIPLES LAID BY VARIOUS PAY COMMISSIONS:-

The Royal Pay Commission (Islington Commission) on Public Services in

India (1912-1913) has enunciated the following principle:-

“….The only safe criterion is that Government should pay so much to

their employee as is necessary to obtain recruits of the right stamp, and

to maintain them in such a degree of comfort and dignity as will shield

from temptation and keep them efficient for the term of their service…….

Where we have advised change of salary it has been to meet inequalities

of remuneration prejudicial to efficiency, to fulfill expectations reasonably

and to improve recruitment, where the existing terms have been shown to

be in-sufficient to obtain satisfactory personnel…‖

Thus even in the days of British rule, the Islington Commission moderated

the operation of law of supply and demand and recommended the necessity of

placing the officers above the reach of temptation. The principle was accepted

even by the Royal (Lee) Commission constituted in 1923 for Superior Services in

India.

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The Vardachariar Commission (1946-47),

The pre-independence commission in view of Indian conditions had laid down

the following principle:-

“In its practical application principles enunciated by the Islington

Commission have to be amplified or supplemented by other ways of

stating the test even more important is the nature of duty and

responsibility of office. Great stress is laid on the necessity of enabling

the holder of the office to maintain its status and dignity.”

Principles Propagated By First Central Pay Commission:

The First CPC innovated the principle of "living wage" to Government

employees. It observed that "the test formulated by the Islington Commission is

only to be liberally interpreted to suit the conditions of the present day and to be

qualified by the condition that in no case should be a man‘s pay be less than a

living wage." While considering the question of maximum salary, the Commission

agreed with the view that the State should compete with private enterprise in

respect of prize posts; but expressed their inability to agree that the salaries of

public servants could be reduced below the standard remuneration available to

similarly situated employees in the private sector.

Principles Propagated By Second Central Pay Commission:

The Second Central Pay Commission reiterated the principle that the pay

structure and the conditions of service of Government employees should be so

designed as to ensure recruitment of persons with requisite qualifications and

ability at all levels and to maintain their efficiency. It went on to state that, after

determining the minimum and the maximum salaries on a combination of both

economic and social considerations, the intermediate salaries should be fixed on

sound and equitable relativities.

Principles Propagated By Third Central Pay Commission:

Third Central Pay Commission proceeded on the premise, inter alia, that the

pay structure, if it is to be sound, should satisfy the tests of "inclusiveness",

"comprehensibility" and "adequacy" and should, at the same time, be fairly simple

and rational. It considered Skill, Strain, Experience, Training, Fatigue, Technical

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qualification, Promotion avenues as key factors in evolving the pay scales after

taking into account the recommendations of Fare Wages Committee.

It also remarked that true test to be adopted should be whether the Government service is

attracting & retaining persons it needs and whether such persons are reasonably satisfied

with the pay and other benefits taken together.

Principles Propagated By Fourth Central Pay Commission:

The Fourth Central Pay Commission was, however, guided by a number of

factors for determining the pay structure, viz., social status regard to which the

public employment carries in society, the authority of the post, security of tenure

and the welfare measures adopted by the Government for the benefit of its

employees. Motivation for employees, efficient performance and comparability

were also considered by the Commission.

Principles Propagated By Fifth Central Pay Commission:

The Fifth Central Pay Commission was specifically asked to evolve the

principles which should govern the structure of emoluments and other conditions of

service. So, the Commission had to survey the principles adopted by the

antecedent Commissions and accepted some of the general principles including

the three characteristics of a sound pay structure, namely, inclusiveness,

comprehensibility and adequacy as has been elaborated by III CPC.

The Fifth pay commission addressed the factor of erosion squarely. The

recommendations of 100% neutralization of inflation in DA and provision in the pay

structure for compensation of previous losses incurred to higher cadres and

merger of DA every time it crosses the 50% mark were the steps in this direction.

The Commission also recommended an Assured Carrier Progression (ACP)

scheme to ensure that if an employee after completion of certain number of years

does not get promotion, he should at least get pay up-gradation as higher post.

The Commission also laid emphasis on the principle of intrinsic value of a job, "fair

compensation", "productivity" and "model employer". However finally the

commission has stated that:-

―We would like to adopt a modified version of the constant relative income

criteria as possibly the most equitable norms, both from the point of view of the

employee as well as the Government”1

1 Para 41.37 (iv) of chapter 41 Vol.I of fifth CPC report

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Besides, the Commission has considered certain other criteria like the, de-

linking pay from position in the hierarchy, justice to lowest and highest paid

functionaries, liberal reimbursement of actual expenses and full compensation for

entering into the public service.

Principles Propagated By Sixth Central Pay Commission:

The Terms of Reference (ToR) for Sixth Central Pay Commission provided:-

1. “Transforming the Central Government organizations into modern,

professional and citizen friendly entities that are dedicated to the

service of the people; and

2. Harmonizing functioning of the Central Government Organizations with

the demands of the emerging global economic scenario. ―

The commission on its part has made some dynamic recommendations

regarding 1+X model of Performance Related Incentive (PRI). The report states:-

“A system that primarily lays emphasis on delivery and end results

and which continuously rewards performance has been put in place

by incorporating features like Performance Related Incentive (PRI)

and variable increments in the basic scheme of pay scales.

Flexibility is also inherent in the proposed scheme of running

pay bands.‖

The commission also deviated from the fixed stages to percentage

based increments as already adopted by many CPSUs. With wide ranging

running pay bands {in comparison to earlier 32 scales in GoI, (4+1) pay

bands have been prescribed}, the problem of stagnation was resolved for

once and all. The commission was very categorical in allowing neutralization

of impact of price rise on allowances. Contrary to earlier approach and

attitude, it has recommended for making early retirement from service

attractive, by providing full pension benefit after 20 years of service, with

enhanced value of gratuity.

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OBSERVATIONS OF PAY COMMISSIONS FOR ELECTRICITY UTILITIES:-

Pay Committee for MPEB Officers observed: -

―For the efficient functioning of any organization the manner in which the

human resources are built up and utilized is more important than other

aspects. The optimum exploitation of available natural and financial

resources depends on the quality of human resources. Quality of human

resources in a public sector corporation like the State Electricity Board is

primarily dependent on the top executives, middle managers and the

lower rungs at the plant and office levels. The State Electricity Board is

today experiencing several difficulties in recruiting and retaining

personnel of good quality………

……. In fact, the officers of the Board have always been getting higher

emoluments than their counterparts in the State Government. The

success of the Board is considerably conditioned by the quality of its

officers, which in turn greatly depends amongst other things, upon the

emoluments. If the difference in the emoluments of similar public sector

undertakings and the Board continue to be as large as at present the

Board will have to satisfy itself with average quality of personnel”.

Justice Sankaran, Retd. Chief Justice of Kerala High Court while

adjudicating as an arbitrator in the matter of dispute between Kerala State

Electricity Board Engineers Association and K.S.E.B. has observed that:-

“The technical qualification required for these engineers (State Electricity

Board) is of higher order. It is well known fact that the best talent in the

country is given preference in Selection to Engineering and Medical

courses which are tough and difficult”.

Further Shri G. G. Sohani, Retd. Chief Justice (Patna High Court) acting as

Chairman of the Wage Advisory Committee for C.S.E.B., observed–

―The working in any Electricity Board is quite different from that of the

State Govt. The State Electricity Boards are engaged in Generation,

Transmission and Distribution of power, which requires constant and

continuous attendance, observation and monitoring……..the basic job in

electrical industry is to maintain dynamic stability which obviously call for

online monitoring of various technical parameters in the entire network”

After all, the bottom line goes to state a simple principle that the pay revision

should be such as to attract and retain the competent and efficient engineers

in the power companies.

***

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CHAPTER -III

PROPOSED WAGE STRUCTURE

“……the ‘fairness’ in pay structure is the most

commonly used and most commonly abused term in this area

….Fairness, like beauty, is only too often in the eye of

the beholder; but it would be too cynical to maintain

that, its use in this context is really a disguised form

of envy.“

A.P. Williams

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WAGE STRUCTURE - PROPOSAL & RATIONAL

The wage revision is done in order to maintain the relative ‘Status’ in the

society. While payment of DA is a mechanism, which maintains the purchasing

power of an employee at the level defined during the wage revision, the revision is

done to maintain the relative status in a dynamic and progressive society. In simple

terms if a person owned a scooter in 1980, he held a relatively high status in the

society. The payment of DA ensures that he remains capable of maintaining the

scooter in spite of the rising fuel and maintenance costs, but at the same time if all

others in the society switch from cycles to bikes and then cars, then even by

maintaining the scooter that person‘s relative status in the society deteriorates. The

wage revision is the mechanism by which he is allowed to move along with his

fellow-man in the society. Interestingly the concept of wage revision is older than the

concept of regular DA. Wage revision history as narrated in the earlier chapter date

backs to centuries while the system of DA is in force since Second World War and

has been updated during different pay revisions.

As surmised above, the purpose of revision is to maintain the relative status

(measured by per capita income) of an employee in the society. It is prudent to

refer to the report of the V CPC in this regard. It states:-

“We are of the view that inadequate salaries in the public service are an

expense and not an economy…….. “2

IAS officers association pointed out before Pay Commission very categorically :-

“Earlier the comparison of civil services pay scales with those in the private

sector was generally avoided on various considerations like the higher social

status, the insecurity in the private sector etc. …. However now the scenario has

changed totally due to demand supply gap. . Things have deteriorated in the public

sector. Capacious transfers and constant fear of political victimization have

undermined the moral and self esteem of the public servant. …Therefore a

comparison with the financial package available to the private sector has become

unavoidable. ….”

At this juncture, it may not be out of place to recall that after opening up of

the power sector a private major attempted hijacking of a complete batch of

leading CPSU (NTPC). Even from our own organization, officers have been picked

up by private companies at attractive packages.

2 Vth CPC report – Volume I, para 42.32

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It is also relevant to mention that the packages in the private sector have moved at

a rate more than double the growth in per capita net national income. In the span

2009-1204, packages of private sector executives have already gone up by about

60%.

For deciding the relativity, another approach may be to judge that what others are

looking for. In May 2014, in draft response to 7th CPC, the present pay scales of

group A services have been recommended to be revised to 3 to 4 folds. Similarly,

National Council of Joint Consultative Machinery (NCJCM) for Central Government

Employees has proposed a multiplying factor of about four times.

National income at factor cost at 2004-05 prices may be the perfect basis for

determination of wage fixation benefit as it gives the growth after diluting the effect

of inflation.

Table 3.2-NATIONAL INCOME AT FACTOR COST

(AT 2004-05 PRICES) Index Number(2004-05=100)

Item Gross

National Income(GNI)

Net National Income(NNI)

Estimated Population

(Million)

Per Capita Net National

Income (`) GNI NNI

Per Capita NNI

2004-05 2949089 2629198 1089 24143 100.0 100.0 100.0

2005-06 3228177 2877284 1106 26015 109.5 109.4 107.8

2006-07 3534849 3149149 1122 28067 119.9 119.8 116.3

2007-08 3879457 3451829 1138 30332 131.5 131.3 125.6

2008-09 4133292 3664388 1154 31754 140.2 139.4 131.5

2009-10 4488314 3966408 1170 33901 152.2 150.9 140.4

2010-11 4882249 4310195 1186 36342 165.6 163.9 150.5

2011-12 5196848 4572075 1202 38037 176.2 173.9 157.5

2012-13 5449104 4766754 1217 39168 184.8 181.3 162.2

2013-14 awaited from GOI 174*

source - http://mospi.nic.in/Mospi_New/upload/SYB2014/ch3.html Website of the Ministry of Statistics and Programme Implementation * - expected, calculated by considering the trend of last 10 years through scatter plot

From the above table one can easily see that after adjustment to the 2004-05

prices the actual growth during FY09-FY14 is as under

The growth in Per Capita Income --- 32.6%%

In view of the above, fixation benefit of 33% is rational and justified

The instant revision is proposed for the period 2014-2019.

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CGVAMS demands 33% fixation benefit on basic in pre-revised scale

as following –

The pre-revised initial basic pay of AE is = 20425 + Add pay @ 8% (1634)=22059

The fixation benefit should be 30% of pre-revised basic

Basic pay in revised pay scale should be – 22059*1.33 = 28677 say 28700

Further CGVMAS demands the increment at each stage should be 5% of running

basic. Needless to iterate that as and when the Central DA scheme may change

the same shall be adopted in an appropriate and rational manner.

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PERIODICITY OF WAGE REVISION

As detailed in the chapter ‗CSEB: Historical Perspective‘, it is clear that the

periodicity of wage revision of MPEB / CSEB has been 5 years & looking to the

settled customary position, the periodicity for wage revision in future also shall

remain five years. It is also pertinent to mention that Section 133 of the Electricity

Act 2003 specifically assures against any adverse change in the service

conditions. As the periodicity of wage revision form part and parcel of service

conditions, the same needs to be protected.

Abhiyanta Sangh also wish to state categorically that the proposals made in this

document are holistic and has to be treated as an organic whole since all the

major demands are inextricably inter-twined. Accordingly, any modification in the

scheme of proposal can severely affect the outcome. Therefore it is requested to

consider the proposals contained in the memorandum as a package.

Higher Pay Scale AND CAREER PROGRESSION

In any organization, promotion resulting in a better future in terms of the

status as well as the financial compensation is the main incentive which drives a

person to put his best. Unfortunately there has been lack of opportunities of

promotions because of which an alternative in the form of scheme for grant of

higher pay scale (Like Assured Career Progression- ACP) was formulated.

After continuous persuasion the third HPS facility was allowed, however the

periodicity of the higher pay scale fails to pass the test of fair expectations. It may

be interesting to note that in 1994 a committee under chairmanship of Shri R.G.

Shahane was set up to suggest remedial measures. The committee recommended

grant of HPS options for higher pay scale on completion of 7/14/21/28 years of

service. With the present level & intensity of stagnation, it appears fair that the

fourth option shall be allowed and the periodicity and number of options may be

revised to allow 4 HPS options after completion of 7/14/21/28 years of service.

However, Sangh submits that the time has come when one needs to

rethink over the whole scheme of career progression. Higher pay scale

undoubtedly provides financial consolation against the pain of stagnation; however

it does not nullify the sufferings. It is proposed that cadres AE to ED may be re-

defined as E2 to E9 with one single running master pay scale. The gain to

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organization may be much higher if a time bound career progression scheme is

considered. On one hand it will give the engineers social recognition and

motivation and at the same time it will benefit the organization with better

productivity at a much lesser cost (the need for HPS will evaporate and moreover

the pay scales will automatically rationalized). The promotion up to E7 may be

time-bound at interval of 5 years and E 8 and E 9 should be vacancy based. It

is submitted Sangh is willing to make a detail presentation on the issue at the time

of discussion with Commission.

***

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CHAPTER -V

ALLOWANCES

& FRINGE BENEFITS

Icing alone is of no value, but icing on the cake is

of great value addition.

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The Broad Principle

Generally, rate of allowances is fixed on the basis of costs incurred to accomplish

such activity (facility) on the day of finalization, whereas it is fixed for a time period

of 5 year so either the expected cost should be considered for mid- point (i.e.

1/10/2018 in case of pay revision period 2014-2019) of wage revision period or

should be linked with dearness allowances as it has been adopted by Central

Govt. as per sixth pay commission recommendations. Therefore CGVAMS also

demands for adoption of same methodology incase of conveyance allowance,

children education allowance etc. whereas the compensatory allowance may be

linked with rate declared by collector for unskilled labour six monthly. The detailed

submissions are as under- in 2 part –

Part A – Reimbursement of the expenses incurred as currently admissible

Part B – The allowances /facilities which are currently available

Part C - The allowances /facilities to be started

Part D – Concept of cafeteria allowances

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Part A : Reimbursement of the expenses as currently admissible There are certain provisions and facilities which are not regular allowances,

rather are in the form of reimbursement against actual expenses, as and when the

situation arises.

Accordingly the provisions need review so as to ensure that actual expenses are

reimbursed and employees don‘t feel like cheated or neglected.

1. Traveling Allowance

The present entitlement may be continued with corresponding revised Basic pay.

However, looking to the softening of the air travel rates & time saving

associated with saving in accommodation & DA charges, Air travel should be

allowed to all the designated class-I & class –II officers.

For CE/ ED scale - Business/ Club class by Air/ AC – I – Train

For SE/ACE scale - Economy class by Air/ AC – I – Train

For AE/ EE scale - Economy class by Air/ AC – II – Train

Further, travel by own car should be allowed @ Rs. 20/- per Km, subject to

maximum ceiling of the train fare of the class to which a person is entitled. For

international /sea journey GoI rules as amended from time to time any be adopted.

2. Daily Allowance

This is granted to an officer to cover daily expenses incurred by him during

the journey undertaken in the interest of official work. In view of the high

inflationary trends, the allowance should be raised to 1.6 (25% on every 50% rise

of DA) times from the prevailing rates. In future the rates shall be increased by

25% every time the DA payable on revised pay scales goes up by additional 50%.

3. Accommodation Charges

Following the logic as explained above, the accommodation charges

presently also need to enhance to 1.6 times of the prevailing rates. In future the

rates shall be increased by 25% every time the DA payable on revised pay scales

goes up by additional 50%.

4. Transfer Grant & Luggage charges

It is not an allowance; rather it is a reimbursement, that too against

expenditure incurred by an employee in compliance of Board orders. There cannot

be any debate that such expenses should be fully reimbursed.

Therefore, it is proposed that:-

1. Rate of transfer grant should be revised to one month pay.

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2. Luggage charges (per KM basis) should be 28/- per Km.

3. Travel by own car to be allowed @ RS. 20/- per Km.

The rates shall be increased by 25% every time the DA payable on revised pay

scales goes up by additional 50%.

5. Medical Facilities

At present at major centers dispensaries have been provided while at power

stations and at headquarter to meet out contingencies hospitals are operational.

However the condition of such facilities is far from satisfactory. The system needs

to be thoroughly improved. Today there is a need that patients should be treated by

specialist doctors which is generally not available in such dispensaries operated by

CG power companies. Even in case of reimbursements as per rule, the

reimbursement is meager in comparison to actual expenses.

Now a day, number of utilities, are entering in cash less medical treatment

contracts for their employees & wards. It may be in the form of direct contract with

major hospitals or in the form of medical insurance.

Abhiyanta Sangh demands that:-

1. 100% reimbursement in all cases (whether referred or not) for treatment

taken in identified hospitals.

2. Now health insurance scheme are available at comparatively cheaper cost

than what-ever cost is incurred by the employee and CG power companies,

together. Therefore CGVAMS demands that employee should be given an

option to be covered under present scheme of medical facilities or to be

covered under Cashless Health Insurance scheme of Rs. 5 lac per family

option, and if the sufficient numbers ( > 25%) of employee opts the cashless

treatment insurance scheme, then CG power companies should go for Group

health insurance scheme for such employees.

3. Further, in accordance to the pith and substance of the Hon‘ble Supreme

court decision in civil appeal no 1368 of 1990, the definition of family shall be

extended to cover the parents of serving employees and the restriction

related to ―wholly dependence‖ should be withdrawn.

4. The same facility should be extended to retired engineers (and dependent

family members) also. It may be noted that all leading PSUs have adopted

such humanitarian approach.

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Part –B – The allowances /facilities which are currently available

1.1 Dearness allowance and House Rent Allowance

Presently the DA & HRA are being paid at par with the rates declared by

Govt. of India for civil services. CGVAMS demands for continuation of same

procedure and the rates of these allowances should be immediately revised

whenever same are being revised by the GoI.

1.2. Conveyance Allowance

The Conveyance Allowance is paid to employees to cover expenses on running and

maintenance of vehicle for their local movement. Considering abnormal increase in

cost of petroleum products, vehicle maintenance cost, every utility has given

substantial relief on this count.

Central Govt. employees of civil services are being paid conveyance allowance at

following rates

Gr. Pay 5400 & above ( Pay scale 15600 and above)

4200, 4600, 4800 ( Pay scale 7440 and up to 15600)

below 4200 (Pay scale below 7440 )

1600/+DA 800/+DA 400/+DA

Since cost of conveyance is directly linked with dearness so the allowance has been

linked with dearness allowance by GOI, therefore the CGVAMS demands for

applicability of the same pattern for conveyance allowance, as applicable to central

Govt. Civil services, as following –

Class I officer – Rs.1600 pm + DA (thereon) as applicable from time to time

Class II officer - Rs.1200 pm + DA (thereon) as applicable from time to time

1.3. Conveyance Allowance for physically challenged

The present rate of Conveyance Allowance for handicapped officers is paid @

5% of basic pay subject to min. of Rs. 400/- pm. We demand to keep continue the

same provision.

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1.4. Compensatory Allowance

The Board was providing orderlies to its officers at the rate of one orderly for

class-II officers and two orderlies to class-I officers and 3 for senior class-I officers

CE /ED. In view of the problems associated with labor and increase in wages, Board

had changed the system of providing orderlies and instead started cash payment in

lieu of orderlies. For all the existing officers of the Board, the facility of orderly /

allowance stands as an established term of service package. When the facility was

introduced it was linked with the minimum daily wages for an unskilled worker.

Later on, in 1987 the rate was revised to 250/-pm per orderly, at that time the

minimum rate was about 10/- per day and calculation was done for 26 working

days/month. These rates were revised lastly in 1/4/2010 and the rates admissible

are Rs. 1800 for Class II officers and Rs. 3600 for class I officers. These rates were

fixed on the basis of change in CPI index.

It is pertinent to mention here that the monthly wage of unskilled labour in

Govt offices as per (list K) is fixed as Rs.5468 vide circular no 1571 dtd 25/4/2014,

for the period April14 to Sept 14, by Assistant labour commissioner Raipur.

Accordingly, based on above principle, Abhiyanta Sangh demands a rate of

compensatory allowances to be increased to Rs. 5500 and Rs. 11000 per month

for class II officers and class I officers respectively. This allowance should be linked

with the rate of wages declared time to time by Assistant labour commissioner

Raipur.

1.5 .NIGHT SHIFT ALLOWANCE

After a long pending demand during pay revision of 1989, Board agreed to

grant night shift allowance, which is at present Rs. 125.00 per night for A.E. and

Rs.166.67 per night for EE. The meager amount being paid presently on following

pre- conditions:

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1. The allowance is being paid only when one performed at-least 4 night shifts.

2. Maximum limit for this allowance is restricted to 6 night shifts only per month.

In view of the hardship being faced it is proposed that the rates of this allowance

should be revised as below;

For Assistant Engineer -- Rs. 300.00 per night shift

For Executive Engineer --- Rs. 500.00 per night shift.

The above rates are based on the rates presently being applicable in NTPC

Engineers. Further the conditions mentioned above needs to be withdrawn.

1.6. Boiler Proficiency Allowance

Boiler Proficiency Allowance is presently payable @ Rs. 500/- pm on

acquiring Boiler Proficiency certificate. At present this allowance is only admissible

for those who are engaged in operation of Power plant. However it is an additional

specialized qualification which helps in improving the technical knowledge and

working of an engineer. Hence it is proposed that this allowance should be

extended to all engineers on acquiring Boiler Proficiency certificate irrespective of

their place of posting. Present BOE allowance is far less as compared with other

utilities. It helps to encourage the employees to take interest and pass the BOE

examination and benefits the CSPGCL. The rate should be revised to 5% of pay.

1.7. Baster (Risky area) allowance

Since CG is badly affected with Naxal problems and its boundaries are spreading

from Baster to other area of CG . Working in these are becoming difficult and risk to

life in increasing day by day so there is an urgent need to compensate suitably the

risk through monetary benefits to keep the employee motivated who are working

in that area. Therefore CGVAMS demands that the name of allowance should be

changed to “Risk area allowance” and shall be applicable to all employees working

in the district, which has been declared by state Govt as Naxal affected area. The

present rate of allowance is as 20% of basic pay and it should be allowed in all the

naxal affected area (declared by GoCG), on uniform basis.

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1.8. C-OFF ENCASHMENT

The facility of C-off encashment in lieu of work done on gazette holidays is

presently available to engineers working in operation and maintenance of power

station, Load Dispatch Centre and 400KV substations (Operation). The present rates

for C-Off encashment are @ Rs 2230.00/- and @ Rs 2750.00/- per day for AE and EE

respectively, with maximum 30 days encashment per annum. The present rules

provide that the rate of C-Off encashment shall be revised with every DA increased

and Board shall issue Orders for such revisions.

It is interesting to note that originally C-off rates were derived by working out one

day salary for average of minimum and maximum of salary (pay + DA).. The average

pay scale philosophy was adopted for the purpose of administrative convenience as

at that time pay bills were prepared manually and working out one day pay in each

individual would have created administrative difficulties, however now-a-days with

computerized pay administration there is no such problem. Hence, in accordance

to the fundamental approach and philosophy adopted for deciding the C-off rates,

the C-off encashment may be provided @ average rate of one day salary (Pay +

DA) to the individual engineers. Further the limit of maximum encashment per

annum be increased to 45 days per annum and it should be allowed to all field

officers.

1.9.Electricity Concession

Electricity concession has been hold as part and parcel of the service

condition of the existing employees. NTPC gives free electricity to its employees;

Coal India provides free energy (in the form of LPG Cylinders & Electricity). On the

same line free electricity should be provided to the officers (serving as well as

retired) of CS Power Companies.

1.10. Mobile / Phone allowance

The communication has gained significance only second to Electricity. For the

class I & II officers who have to perform functions of planning, monitoring,

execution and reporting on various fronts simultaneously, the use of mobile phones

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and where mobile phone are not available the use of nearby landline phones is

such prerequisite which cannot be avoided by them. It helps the top management

in faster decision making and saves considerable time and cost too. At present

phone or mobile facility is being given to select officers on discretionary basis which

either causes discrepancy and undue loading on the deprived ones. As the need for

better communication to an executive is something which carries a self propelling

logic, hence it is proposed that a reimbursement to the class II officers @ 2000/-

and to class I officers @ 3000/- per quarter may be allowed.

1.11. Stagnation Allowance

Stagnation allowance is needed to redress the problem of stagnation in the

utility. If a person reaches the maximum of his scale and he is constrained to serve

at that post because of the pyramid-cal structure of the organization and lack of

vacancies at higher levels he gets stagnated at that level for no fault of his own. The

problem is more often gets severe turn with the persons having higher education.

It is proposed that stagnation allowance @ one increment (last increment drawn)

per year may be allowed without any restriction of number of years and it should

be accounted for all purposes such as pension, gratuity and other terminal benefits.

1.13. Grant of Additional increments on acquiring Higher Education

As has been illustrated elsewhere, the wage structure is determined on the

basis of various factors and along with other things it is commensurate with the

requisite educational and professional qualification for a given post. If a person

acquires higher education during the service, he not only puts up extra effort but it

also reflects his commitment and zeal to upgrade him. Such commitment and zeal

have a definite impact on the work pattern of an individual. Coupled with the

know-how acquired through the higher education the ultimate contribution to the

utility gets bettered. As there are no free lunches, the quality is also not without

premium. To promote higher education and quality workers, traditionally some

benefits are allowed in the wage structure. Earlier, two increments were given to

the engineers who acquired ME/ M Tech. degree before or after joining the Board.

However, in rapidly changing world, the importance of modern management in the

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industrial organization cannot be ignored. Hence it is proposed that two advance

increments may be allowed to the professionals acquiring higher education of

management as MBA and equivalent like PGDM from IIM like institute and three

advance increment for executives pursing doctoral program as FPM and one

advance increment may be provided against acquisition of PG Diploma in

Management.

It is also useful to mention here that looking to the growing energy crisis,

shortage of fossil fuel and all out stress on energy conservation, the parliament has

passed the Energy Conservation Bill 2001. The provisions of the act will become

mandatory for scheduled industries from 2006 and power utilities fall in the ambit

of scheduled industries. As per the provisions of the act, a Bureau of Energy

Efficiency has been set up and it conducts rigorous written & oral examination on

national level. The qualified persons are accredited with the certification of “Energy

Auditor / Energy Manager” as the case may be. It is proposed that one advance

increments may be allowed for such “Energy Auditors” and one increment may

be allowed to such “Energy Managers”.

It is also submitted that the condition of acquiring higher education on the

instruction of the Board is a primitive one and has no relevance in the liberalized

world. Prior intimation may be treated sufficient.

***

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Part C– The allowances /facilities to be started

2.1 CHILDREN EDUCATION ALLOWANCE

Education of the children is one of the biggest problems faced by the

Engineers due to their frequent transfers all over the state. The problem of

education has been compounded by the steep raise in the cost of higher education

particularly after the introduction “commercial fee structure”. The Board is

presently granting reimbursement of tuition fee to class III & IV employees only. It

is therefore, became essential to provide children education allowance to all the

Engineers so as to enable them to meet the rising cost of education. In support to

the above, we wish to reproduce the observations made by honorable Justice G.G.

Sohani, Retd Chief Justice, on his report of Wage Advisory Committee for CSEB,

“The GoI as well as state Govt. were earlier providing basic education

at very nominal fees. But recently education of children has become costly requisite

because the Govt. has withdrawn various subsidies/ Grants in aid to educational

institutions/ colleges. Further reasonably good education is not available at cheaper

rates and in view of keen competitions which our young generation will required to

face, all classes of employees are anxious and rightly so that their children are

educated at good schools but in such schools tuition fees are higher than those in

Govt. school/ college. Moreover, the Govt. has also enhanced the structure of fees

in their schools/ colleges/ Universities.”

Earlier the need for neutralization of the cost of education was acknowledged for

class III & IV employees only with the understanding that the fee at the then

prevailing levels (1994) could very well be absorbed by the class I & II officers on

their own. But with the extraordinary rise in the cost of higher education, the need

for reimbursement for officers also has become too evident. It may be further

useful to note here that the implicit burden on the Board will be meager, but for

the individual it will be a big relief. In view of the above, it is proposed that the

cost of higher education may be reimbursed at the rate of 100% of tuition fee and

50% of Hostel subsidy per child. For single girl child, the hostel subsidy shall be

100%.

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2.2 SHIFT ALLOWANCES

This has been a long pending demand of Abhiyanta Sangh. Some of the arguments

are listed below for perusal of the pay commission. Given a choice no one likes to

work in shifts. It is therefore essential that shift duties are made more attractive.

Considering the arduous nature of duties and extra hour of work Abhiyanta Sangh

requests that engineers/ equivalents working in shifts be compensated at the rate

of 10% of their basic pay. The arguments in brief are as under:-

1. Electricity generation precedes its transmission & distribution. It is a 24X365

job. They have to put in extra hours of work (8 hrs in comparison to 6.5 hrs). The

shift operation is the most important and critical job in any power utility.

2. Operation needs continuous monitoring and quick reflexes for continuous 8

hours causes’ lot of stress. The shift duty in a power utility is considered one of the

top ten strenuous jobs. Hence compensation is justified.

3. Due to lack of fresh recruitments the problem has compounded significantly

because replacements are not available.

4. Working in different shifts disturbs “Biological Clock” causing adverse effect on

health and leads to premature deterioration. Due to above majority of engineers

are suffering from numerous diseases viz. High Blood Pressure, Acidity, Gas, Low

bone density etc, such irreparable loss needs to be compensated at least partially

as is being done in other utilities.

2.3 SLDC Allowance

In August 2008 Ministry of Power, Government of India has

constituted a Committee on Manpower, Certification and Incentive for system

operation and ring fencing of the Load Despatch Centers. The committee has

submitted its report along with recommendations in the year 2009. In one of the

recommendations, i.e. no.3, the committee has recommended that “all LDCs must

ensure that all the personnel of LDCs undergo basic level training and certification

and only certified personnel, staff the LDCs within 2 years from the release of the

report”.

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The above committee recommended a suitable compensation

structure to attract and retain talent at SLDC and also recommended monetary

incentive after achieving the certification to attract and retain talent in SLDC.

In March 2009, another report by the task force constituted by

Ministry of Power, Government of India in March 2009 on capital expenditure,

issues related to emoluments for personnel in Load Despatch Centers was

submitted. In the clause 15.3 of the report, the committee has recommended a

lump sum monthly amount to the LDC personnel during the validity period of

appropriate certificate i.e. Basic, Specialist and Management level. This committee

has recommended 10% of ceiling basic pay subject to monthly incentive amount of

Rs. 5000/- for Basic Level and 7500/-or 15% of basic pay.

Maharashtra State Transmission Company Limited vide their order

dated 01.01.2013 have already granted additional incentive of 5% of basic salary

(circular enclosed ) as special allowance for staff working in LD operations including

maintenance staff and staff of finance and accounts w.e.f. 01.01.2013,till the staff is

posted in LDC.

It is requested to grant 10% of basic salary, maximum 5000/- and

15% or 7500/- maximum payable monthly, for basic level and specialist level

achieving officer and staff respectively in the State Load Despatch Centre, Raipur,

from the date of their achieving certification to till their posting in SLDC or validity

of certification whichever is earlier.

2.4 Earned Leave Encashment

Every employee on a regular establishment is entitled for earned leave @ 15 days

for every six month block served by him. The basic purpose of the leave was to

allow an employee to take a long break from work and get refreshed periodically.

Earlier, with sufficient number of employees there was sufficient scope for availing

the leave and even at that time also, encashment of leave @ 15 days in an interval

of 1 year or 30 days in an interval of 2 years was allowed. The encashment facility

was restricted to half the entitlement so that one cannot utilize the whole of the

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leave for monitory purposes and simultaneously if one is not allowed to avail the

full leave, he may en-cash a part of it and can enjoy the life with more colors during

whatever leave he is able to get.

However, with the downsizing drive becoming a frenzy, and targets

becoming a buzz word in the daily life, not only the strain has shot through the roof

but chances of getting long breaks have also become far and few. An engineer who

is of higher value to the organization is allowed fewer leave by the superiors than

his counterpart who is just able to fill the gap only. In such pressure cooker

situations it has become far more important that the gems are preserved with

more care and for that, it is essential that encashment of a part of the leave is

allowed so that those who do not get opportunity to avail the full leave available to

their credit, can get part encashment and utilize whatever leave they get in a

quality manner so that they get refreshed in lesser time. Therefore, it is proposed

that the facility of periodic EL encashment (15 days in a year or 30 days in a block

of two years) may be restored urgently. Further, there shall be no limit at the

time of retirement. It will not only increase the motivational levels of the

individuals but the efficiency of the system too.

2.5 Encashment of Half Pay Leave (Medical leave)

Every employee on a regular establishment is entitled for Half Pay Leave @ 20 days

for every year served by him. The leave can be commuted to full pay leave on

medical grounds and gets accumulated throughout the service. It has often been

seen that once a person reaches to the far end of his career he intends to take such

leave on even flimsy grounds. It is proposed that encashment of Half Pay Leave at

the time of retirement to without restriction may be allowed to arrest such

tendency and to ensure that the Board work do not get suffered because one has

no motivation for not utilizing the leave available to his credit. It has become all the

more significant in view of the staff shortage prevailing in the Board. At present

approximately 31% shortage of staff exists and the average age has reached 49

years. Every year about 5% of the workforce is getting retired and in case of non

redressal of problem, the same may become too costly to be affordable.

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2.6 GENERATION ALLOWANCE

All the Power stations are located in remote areas where basic

facilities are not available and the social life is almost nil. The cost of living at

generating power stations is very much higher due to non availability of

Competitive & good Markets/ Hospitals/ Schools/ Entertainment means. At most of

power stations the education facilities are available up to 12th standard only that

to, the schools are not comparable with those available to the employees posted in

cities & towns. And for the Higher Education employees have to send their children

in nearby cities and keep them in hostels for which they have to spend about Rs.

3000.00 per month per child towards hostel charges and other expenditures.

Therefore the engineers posted at power stations are forced to bear extra

expenditure because of higher cost of living. This problem was perhaps faced by

other Electricity Boards also and that is why they have been compelled to give

compensation in the form of Special Pay/ Allowances under one or other name and

some extra facilities to engineers working in Generation Wing so as to boost up the

moral of the employees.

It is, therefore, proposed that Generation allowance should be paid to

engineers posted at power stations at the rate of 8% of basic pay. It is pertinent to

mention that the Generation Allowance @ 8% is being paid in GEB.

2.7 FIELD ALLOWANCE

The engineers engaged in distribution of power have to maintain

uninterrupted power supply to the consumers. The duty of the same becomes

more vital during rainy season, festival and other important occasions. The

engineers working in O&M. EHT, ST/RE, Load Dispatch & Power System, Testing

and communication, Electronic Data Processing, STM, Survey and Investigation,

Civil construction etc. have to play a vital role in maintaining the system. Nature of

work in these fields is of continues type & they have to be vigilant round the clock.

Keeping in view, the responsibility and nature of job, Field Allowance

should be paid at the rate 8% of basic pay to the field engineers posted in field

duty of T&D wing of CSPDCL and CSPTCL.

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2.8 CONSTRUCTION/ PROJECT ALLOWANCE

The earlier rates of the Project Allowances were Rs. 75/- to Rs. 375/-

based on the range of pay. The rates were at par with the rates adopted by the

Govt. of India in Fourth Pay Revision. Since then the consumer prices index has

risen multifold. In the Fifth pay commission report the rates of project allowance

recommended from Rs.150/- to Rs. 750/- with the following observation “The more

than double the existing project allowance recommended .”

For compensating for lack of basic civil amenities at the project site and

compensation for separation with family and maintaining two establishment

project allowance is needed. Hence the rates of Construction/ Project Allowance

should be revised to 25% of pay should be allowed. The same is already applicable

for Madwa TPP.

2.9 Additional Charge allowance

Due to extra ordinary shortage of field officers it is becoming common that

the competent and better performing officers are being loaded with Additional

charge of another post frequently and for long spans. There are examples where

one officer has been loaded with four additional charges simultaneously and that

too for months together. Such additional charges make the life just miserable.

Sangh requests that the practice of Additional charges must be put to rest by

recruiting Engineers down the level and filling up the higher posts through regular

promotions. However, for time being till such arrangements take shape,

Here pertinent to mention that AP state power companies are giving Additional

Charge Allowance @ 20% of pay ( Basic +DA) per charge for first 3 month, and

then 10% of pay (Basic +DA) thereafter to partially compensate the associated

strain CGVMAS requests for same provision for officers of CG state power

companies.

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2.10 Performance Related Incentive

The VI CPC has recommended for PRI based (1+X) compensation. Long term

performance related incentive policy is call of the day. The Sangh acknowledges the

fact that the present committee is for wage revision and not for formulation of an

incentive policy which is a tool of performance improvisation through the

application of modern HR techniques. However, looking to the importance and

criticality of an appropriate scientific incentive policy, the Sangh requests liberty of

the honorable committee to submit that a strong recommendation may be made

to prepare and implement a long term (say 5 year) incentive policy for different

functions, after due deliberation with the Sangh/ unions, so that the officers and

employees may get additional motivation for performance improvement and whole

state may get benefited. The Sangh is more than willing to forward its suggestions

as and when opportunity is given.

2.11 Non Practice allowance for engineers

NPA @25% of pay (for all purposes) should be provided to Engineers (as allowed to

medical officers).

2.12 Home Town/Leave Travel Concession

Home Town / Leave travel concession is provided to the employees as more

and more employees are constrained to live outside their home town. The twin

facilities are a means to facilitate to get a change from the routine and such

changes provide the booster dose to the work engines of the organization. GoI has

liberalized the provisions considerably.

Abhiyanta Sangh demands that:-

1. Home town travel concession should be allowed once in a year.

2. LTC should be allowed in block of 2 years. There should not be distance

limitation (within India).

3. Dependent parents are to be included in definition of family.

4. Encashment shall be allowed for the class of entitlement.

***

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Part D – Cafeteria Approach

Sangh alternatively suggests that CG power companies should adopt the cafeteria

approach for perk and allowances like NPTC, as following - The Cafeteria Approach

for perks and allowances was adopted in NTPC as part of the salary & wage revision

with effect from 26.11.2008 allowing employees choose from a given basket of

perquisite allowances subject to the conditions that cafeteria shall be limited to

47% of revised basic pay. Keeping the overall ceiling limit of 47% of basic pay on the

cafeteria the following shall form part of the cafeteria:

For Executives:

S. N Perks and Allowances Cafeteria (Up to) (% of basic pay)

1 Child Education and Hostel Subsidy Allowance

( up to 2 children) Tuition Fee - 5% Hostel Subsidy - 5%

2 Professional Updation Allowance 10%

3 Conveyance/Transport Allowance 5%

4 Reimbursement of expenditure on vehicle repair & maintenance

5%

5 Domestic Help Allowance 10%

6 Electricity Reimbursement 10%

7 Newspaper / Professional Literature Reimbursement

5%

8 Driver Allowance 10%

9 House Upkeep Allowance 5%

10 Self Development and Personality 15%

11 Enhancement Allowance

12 Club Membership 10%

Gardener Allowance 10%

13 LTC 20%

14 Other Allowances 10%

CGVAMS demands that the same should be adopted by CG power companies.

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CHAPTER -VI

TERMINAL BENEFITS

- 38-

TERMINAL BENEFITS

Genesis of civil servant pension in India:

The concept of old age security in India dates back to the 3rd century B.C.5

According to Sukraneeti, a king had to pay half of the wages for people who had

completed forty years of service.

Terminal Benefits of the Civil Servants in Modern India:

Making government career attractive was largely the concern of the government in

the early years of planning. Pension payment is one among the many strategies

pursued by the government in attracting talented workers in to the public sector

from the private sector.

The honourable Supreme Court of India in the landmark judgment of D.S. Nakara and

others vs. Union of India (AIR 1983, SC 130) The Supreme Court of India, held:

―A pension scheme consistent with available resources must provide that the

pensioner would be able to live:

Free from want, with decency, independence and self-respect; and

At a standard equivalent at the pre-retirement level.”

Further, it ruled:

“Pension is neither a bounty nor a matter of grace depending upon the sweet will

of the employer. It is not an ex gratia payment, but a payment for past services

rendered. It is a social welfare measure, rendering socio-economic justice to

those who in the heyday of their life ceaselessly toiled for the employer on an

assurance that in their old age, they would not be left in the lurch”.

Larry Wilmore observes

“Actually, civil service pensions, because they are not based on contributions, are

best described as deferred wages. Civil servants accept a lower current wage in

exchange for the promise of a pension in their old age. If this pension were

contributory, they would insist on a higher wage and government would have to

either increase taxes or borrow (issue debt) to pay it. The real cost of civil servants

is thus much higher than recorded under the current system of cash accounting.

A good reform would be to move to a system of accrual accounting setting up

at least a notional fund to pay these deferred wages” (Larry Wilmore, 2004)

The retirement benefits currently available to Board employees can be categorized

as follows:

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1. NEW PENSION SCHEME :-

It is seen that new pension scheme is being implemented in haste without proper

transparency and taking in confidence all the stakeholders. Sangh requests that the

Committee should recommend that the NPS provisions should be made transparent

and wide ranging deliberations should be made by the power companies with the

actual stakeholders. The apprehensions are causing very high level of anxiety,

financial loss and de-motivation causing negative impact on efficiency of

administration. Further, the employees who are interested to contribute sum

investment in EPF should be allowed for the same.

Further, the pension commutation should be at par with prevailing rules and rates

as applicable for all India civil services.

2. GRATUITY:

The provision should continue should be at par with prevailing rules and rates

as applicable for all India civil service.

3. MEDICAL FACILITIES As mentioned in the pre-paras medical facility for retired

engineers should continue at par with serving employees. .

***