Professional Documents
Culture Documents
Fifth
Central Pay Commission
Volume I
BAHRI BROTHERS
742, LAJPAT RAI MARKET,
DELHI 1 10 006
PHONES :2961740,2966291
Published by :
J.P. Chaubey
General Secretary, AIRF
4, State Entry Road,
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110 032
VOLUME =l
CHAPTER
PAGE NO.
BART I : GENERAL I N T R O D U C T I ~
I
I . Introduction
I PART I1 :
1-82
83-88
89-94
95-98
99- 104
105-114
115-1 18
119-126
127- 130
I0
137- I4 I
I1
142-145
l4(>-149
1.3
Opcnncss
1 SO-153
14
154- 156
I5
157- 161
162- 164
17 Rccruitmcnt
I8
170- 72
173- 76
177- 81
2I
182-187
Performance Appraisal
22 Promotion Policy
188-202
203-205
24 Accountability
206-2 14
25 Transfcr Policy
2 15-220
221-241
242-246
247-258
29
259-269
30
270-280
31
28 1-28')
( ii )
290-296
297-306
307-3 17
3 18-327
328-361
362-369
3 70-39 1
392-402
403-409
4 10-429
430-448
449-460
46 1-466
45
467-495
496-5 1 1
5 12-523
( iii )
524-553
49 Central S c ~ r c c Group
s
' B'
553-558
5 0 Enginccring Scrviccs
3 59-62 0
5I
Scientific Services
62 1-637
638-676
53 Group 'DStaff
677-686
54 Workshop Staff
687-7 10
711,.
i ~ ~ l f I c , yI ! /f
' I P.11
( iiittiiiissiiiii
j:h'l:
I:,)
( ~ t J f ~ i l l I I . S . S I ~ Idt i SJ
I(
.\I
jir~icdiwe
1 I
Pay C'oniniission is a pcculiarly Indian inslitut 1011 tocla!
Histoncall\..it is a successor to the RO!A Commissions sct up during thc f3ritisli
pcriod for \.arious purposcs. including for pa!' rc\.rsion. likc thc , 4 1 [ ~ / 7 f . ) ~ ( ~ t ?
( i)mmi.s.sion( 1886-87) aiid thc /.slirigron ('0mhis.sion' ( I9 12- 15) The practice 01.
scttiiig up of Commissions at intcnds w t h the s p c c h objCcli\.cof re\.ising pi]!
and allo\vanccs of Govcriinient cmployccs has beczi discontin~~cd
by niost. if n o i
all. countries of thc ivorki. including ttic United Kingdom. WChave thc uniquc
distinction of having a cunibcrsomc and ccntralixd systcm of'dctcnnination ol'
basic pays that remain unchangcd for inorc than a decade at a tinic. rcinforccd tl!
instaliiicnts of dearness allou ancc which arc rclcascd c\.cn. six months \lost
couritncs have now witched ovcr to qcgotiatcd pa!. scttlcincnts at tl!c dcccntralid
departmental level. in \vhich the salrtrics arc rc\xxd c\.cn' ?car aftcr taking into
account all factors, including thc changc in the cost of living tndcs. Wc' shall. i n
a subscquciit chapter. dcal with the question of ivhat \vould be a bcitcr s!stciii 0 1
pa?; revision.
12
Go\cmnicnt in thc !car I000 to promote harmonious relations and scciirc thc
grcatcst Inc;isurc of coopcration bct\xcn thc Go\ ernmait in its c,ipacit! .IS
cmplo).cr aiid thc gcncral bod! of eniplo!ccs (belonging to Groups (* & I)) i n
niattcrs of common coiiccrn
sclicnic for joint consultativc machinen, rind compulsory arbitration for Ccntral
Govcninmt cnlployccs,niattcrs dctcmiiilod by thc (iovcrnnicnt in accordancc with
llic rccaiinmdations of a Commission of Enquiry arc riot subjcct t o arbitration for
a pcriod of fivc ycars froni thc datc of thc rw~iiiiii~ndation~
Thus Pay
Coniniissiolis arc a dcvicc by which an indcpcndcnt body invcstigatcs tlic dcniands
of Ccntral Govcmmcnt cmployccs and submits its rccor~inici~datiotis
which arc
binding on both Govcmmcnt and its cniployKs. Conccptuall>.tlicy fall short of
a forum for ml,lcdivc bargaining, but he do providc an opportunity for a pcriodic
rcvicw by M ouhidc body in whom bolh thc Go\annicnt and thc cmployecs haw
confidcnic.
I .4
Rcgdngthc junsdiction of' thc Pa\. Commission. Suprcnic Court
has rcpcatcdly hcld h e view that equations ofjob c\.;lltiiitiotiof posts or cquation
of pay or dctcnnination of pay scalcs arc thc primary functions of cspcrt bodics
likc tlic Pay Commission with which nomially thc Courts should not intcrfcrc.
csccpt on any of thc grounds of unjust and arbitran statc action or inaction or on
any gnvc crror having crcpt in whilc fiiing tlic pay scalcs which may \\arrant thc
intcrfcrcnccof tllc COW. Following cstracts of thc jiidgctiicnts throw light on this
aspccr.
I .z
Hon'blc M.H.kg.C h d l w i c c of thc Suprcnic Coun of India while
spcaking for thc Bcncli in Prabhst Kiran Maittiani and Others Vs. Union of
India and Another 199 Suareme Court Cases ( L A 9 270 has made thc
following obscwations :
"Wc arc afraid this is a rnattcr \vhich lay ciitiicl! wthin the sphere of tlic
functions of thc Pa\. Commission. Thc Court cannot ~iitisfactoril~.
dccidc such
disputcd qucstions on thc slcnder material on uhich the lrarncd counscl for the
paitionor relics in ordcr to displacc \\hat appears to us to bc. prima facic. thc cfl'cct
of thc Rcport of the Third Pay Commission of 1973."
I6
111 anothcr cnsq m l y . Statc of (1 P aid Othcrs V s I P Chaurnsia
and Othcrs 1989 ( 1) SCC 12 1. it has bccn rulcd thus
I .7
A Division Bench of thc Suprcnic Court. presidcd ovcr b!. Justice
A.M. Ahmadi, (presently learned Chicf Justicc of India) made thc foHo\ving
observation in Secretarv, Finance Deaartnient and Others Vs. West Beneal
Registration Service Association and Others 1993 (Suuu.) ( I ) SCC.1.
ilISTOHICAL PERSPECTIVE
I .x
7ha*,fir.yt.fiiur
I'UV ( iulrllrl.Y.~ltnr.c
Pay Commission
Time Taken
First
Sccond
Third
Fourth
Seltiirg up qf
'W Q'"
Onc ?car
Two ycars
Thrcc ycars
Thrcc ycars and
clcvcn months
I .9
Thc Fourth CPC had rccommcndcd that thcrc should bc a
pcrmanent machinery to undertake periodical rcvicw of pay and allowances of
Central G o v c m e n t employees. This .was considcrcd by thc Govcmncnt, which
did not find it possible to accept and iniplcmcnt this rccommendation. Various
cmployces' unions, associations and co,ifdcrations wcrc not satisfied with this
dcclsion of the Govemmcnt. They w r c prcssing o w r the years for thc acceptancc
and implementation of this rccomnicndalion. Thc matter was discussed in a
number of meetings of the National Couricil of thc Joint Consultative Machincry.
Finally, in September, 1993Government, without agreeing to implement the above
rccommendation, promised to appoint a new Pay Commission to rcvicw the pay
structure of Central Govanmcnt employ&. Thc notificatCon constituting thc Fifth
Central Pay Commission was issued on 9th Aprii: 1994.
1.10
fOIlO\\S
Chairman
Mcnibcr
Mcmbcr Sccrctan
1.12
It is also intcrcsting to obscrvc that thc First CPC did not havc a
Mcmbcr Secrbtary. Its Sccrctary was Shri K.R.P. Aiyangar. Thc Mmber
Scadarics of chc lata CPCs wccc Shn L.P. Singh ICS, Shri H.N. Ray ICS and Shri
A.K. Majumdaf IAS, rcspcctivcly.
TERMS OF REFERENCE
The tcrms of rcfcrcncc of thc Conunission arc thc following :
1.13
(a)
(b)
v) Oficcrs and employees of the Suprcme Court of India and thc High
Court of Delhi.
(c)
(d)
in thc counlry, thc rcsourccs of thc Cciitral Govcrnincnt and thc dcmands
thcrcon such as thosc on account of cconomic and social dcvclopmcnt.
dcfcncc and national sccurity and rcquircmcnts of sound fiscal
managemcnt
Additiimal
Ternis of
He$cc.rcncr.
January. I993
1 14
By a subscqucnt R d u f i o n No 5( 12)/E-llI/93datcd 12th Jmuar).,
1995, sub para 2(f) was addcd so as to amcnd the terms of reference as under."2(Q The Commission may consider the demands of rhc staff side of the
Na6onal Council of the JCM for grant of moth instalmat of interim relief and
merger of a further portion of DA with pay (for the purpose ofgratuity alone) and
send a =port thereon, if thc Commission fccls that it will not bc possible for thcm
10 submit their final report within a period of 18 months 'from the date of its
appointment.
Additional Terms
o]R$erence.
Ociober, 19%
Additional Temts
o$Re$erenre.
November. 1996
1.16
On 24th October, 1996, another amcndmcnt led to the exclusion of
Members ofthe Subrdinatc Judiciary of the Union Territories from our purview.
A new para was added to the Terms of Reference by Government
notification dated 19th November, 1996 as under :
1.17
"201):
~~
~~
1-19
I n tcrnis of paragraph 2 of thc Rcsolution. thcrc arc ccrtain
difimnccs b c t \ \ m thc Icrnis of Rcfcrcncc of thc Fourth and Fifth CPCs. Wliilc
thc Fifth CPC is rcquircd to cnquirc into and niakc rcconimc~idntionson thc
principlcs which should govcm thc structurc of cniolumcnts and conditions of
scrvicc of Ccntral Govcmmcnt cmplqccs \vhich havc a financial bcaring, thcre was
no such pmvisbi in *h
tcrms ofrcfcrcncc of thc Fourth CPC. Wc havc not takcn
a rigid view o f h phrasc which havc a fitmicia1k i n g , as most mattcrs relating
to structurc ofcmolumcnts and conditions of s c n k do havc a financial bcaring.
directly or indircctly. In any casc thcrc invariably arc implications for cfficicncy
and productivity, rcduction of papcr work or optimisation of manpowcr. all of
which arc covcrcd bv our Tcmis of Rcfcrcncc.
Arttied Ftwws
1 ,2()
prrmtitid
Thc Fifth CPC has bccn askcd, for thc first timc, to csaniinc thc
tcmis atid conditions ofscn,icc of Armcd Forccs Pcrsonncl and to suggcst changcs
which arc considcrcd dcsirablc and fcasiblc. Examination of thc conditions of
scnicc of Amicd Forccs Pcrsonnel did not figurc in thc Tcniis of Rcfcrcncc of
Fourth CPC. Even thcir rccomnicndatioiis with rcgard to changcs in thc structurc
of cnioluniciitsincluding dmthcun-ictircn&t gratuity in rcspcct of Armcd Forccs
Pcrsoiiticl had to bc niadc with duc rcgard to tlic tmiis and conditions of thcir
scnicc
1.21
1~wiotrer.s
<*oinp~~rismi
wrh
1 .22
ISl :r
S u p r e t ) Cottrr
~
01
,23
l h c Fifth CPC is also rcquircd to csaniinc thc prcscrit structurc of
Jtldid anoluiients and conditions of scnicc of the oficcrs and employees of thc Suprcmc
( ourt c$l)ellri
Court of India and tlic High Court of Dclhi. Thc above Courts w r c riot iiicludcd
i i i thi: tanis o!rcfcrcncc of Third CPC and otil!, tlic officcrs and cmplo!.ccs of the
Suprctiw Coiirt were iricludcd in thc aiiicndcd Icrnisof Kefcrcncc 0 1 tlic Fourth
lldiu
CIC
1.24
This Comniission is rcquircd to csaniinc tlic work iticthods and
\vork cnvironmcnt as also thc varicty of allowances and bcncfits in kind that w r c
a\.ailablc to Ccntral Govcnimcnt cmployccs and to suggcst rationalisation and
I26
Thc csprcssion 'Ccntral Govcrnmcnt cmployecs' in the icnns of
refcrcncc of the Fifth CPC covcrs e m p l o y s of the Govcn.mcnt, bclonging both
to tbc civilian and dcfcncc scn%xs.
127
Thc cxprcssion "Central Govcrnmcnt cmployccs" has not bccn
dcfird in the Constitution or any other law. Thc Second Pay Commission, for the
purpose of the enquiry, had taken all pcrsons in the civil services of the Ccntral
Government or holding civil posts undcr that Govcrnmcnt and paid out of the
Consolidated Fund of India, to be Ccntral Govcrnmcnt cmployccs. Employees of
thc llnion territories \vcrc also includcd.
1.28
Thc Third CPC madc a rcfmncc to the krni "Govcment Senant'
as gi\ cn in some of the scrvicc rulcs govcrning thc Govcrnmcnt cmploygs such as
Ccntral Civil Scrviccs (Conduct) Rulcs, 1964 and Ccntral Civil Scrviccs
(Classification, Control and Appeal) Rules, 1965 and found that thesc scrvicc rulcs
I .29
Cailral (jovcrtiiiictit ctiiplqccs'covcrcd all such ctiiplq.ccs. and riot mcrcly those
in the "(*ivil" scrviccs of thc Cctitriil Govcrnnicnt or holding "Civil" posts undcr
that Giovcninicnt, I'or tlic siriiplc rcilsoii that tlicrc wiis no sirch rcstrictivc OI'
ii)
iii)
1.31
So far as ttic Estra Dcpannicntal Agcnts undcr thc Ilcparlnicnt of
Posts arc conccmcd, a onc-man Comniittcc undcr thc Chainiianship of. Justicc
Cliaranjit Ialwar. a Rctircd Judgc of thc Dclhi High Court. was constitutcd by thc
Govcmniait on 3 1.3.95. to csaniinc thc conditions of' scn.icc. cniolunicnts and
othcr l'acilitics availablc to thc Estra Dcpartmcntal Agcnts. As in thc past.
thcrcforc. thcy stood cscludcd from thc purvicw of this Comniission.
132
Ccrtain associations rcprcscnting thc cniployccs of Ccntral Public
Scctor Entcrpriscs govcmcd by the scalcs of pay and Ccntral Dcarncss Allowance
pattcrn applicablc to Ccntral Govcnimait cniployccs subnitttcd mcnioranda to thc
Conitiitssion rcqucstirtg that tlicir dcniands should also bc constdcrcd by thc
Coninitssion \Vc niadc a rcfcrcncc to tlic Go\crtimcnt and it was clarified that
eniployees of Public Sector Undertakings, irrespectivc of whether they were
borne on Central Dearness Allowance pattern or industrial Dearness
Allowance pattern were not included in the ternis of reference of this
Commission. It was also cbrified that employees of the Central Autonomous
Bodies were not covered $y our terms of reference.
1.33
Thcrc is no formal definition of tlic tcnn "Conditions of Scnicc".
Thc Sccond CPC did not rcstrict itsclf to tlic provisions ofthc rulcs. but adoptcd
a widcr, intcrprctation.of ttic abovc csprcssion to covcr a11 niaticrs Ivhich had a
bcaring on :the contcntnicnt, xnoralc and cl'fcicnc\*of tlic cniplo!~ccs. It madc no
distinction bctwccn the financial and non-financial conditions of scrvice. The Third
CI'C intcqirctcd thc csprcssion in a lintitcd scnsc and cscludcd ccnain niattcrs
from its iiiquic. for rcasons given in para' 14 of Chaptcr 1 of its Rcport. Ttic
f:ourth CPC !\as ofthc vicw that thc tcrm "Conditions of Scrvicc" covcrcd not only
thc regulatory aspcct of a scrvicc and its cmolunicnts, but also all othcr niattcrs
bcaring on thc scrvicc of an ctnploycc including thc tcnninal bcncfits.
PKOCE1)UHE OF WORK
A s pcr our Tcrins of Kcf'crciicc. thc ('otiiiiiissioti \\as to d c \ w 11s
~~roccditrc
iis i t nitglit considcr ncccssary for an!' particular purposc Wc
dccidcd upon our stralcgy aftcr studying tlic mcthodolog!. adoptcd b! our
1-74
oivn
I .35
All thc Ministries/Departmcnts of thc Central Govcmment wcrc
rcqucstcd to s d us mcmwanda on the subjccts covcrcd by our terms of rcfcrcncc.
Wc also issued a detailed proforma to all thc Ministried Departments, callizig for
uifomiation about posts, pay scales, recruitment and promotion rulcs, ctc. Central
Ministrics/Departmcntsand Statc GovcmmentsNnion Tcrritorics were rcquestcd
tdnominatc a senior ofTicer cach of a Icvel not below Joint Secretmy, to cffcctivcly
liaise with the Commission,.so as 10 cnsurc supply of cokect and comprehensivc
information. Accordingly 82 liaison oflicers of the Ministrics/Dcpartmcnts of thc
Ccntral Govcmmcnt and 30 liaison ofliccrs of thc Statc GovcmmcntsNnion
Tcrritorics wcrc nominatcd.
I-.36
In ordertomufe ~~pcd~tious
processing of rcqucsts received from
thc Commission for the supply of datahnformation, Ministrics/Departments werc
rcqucstcd to set up dedicated Pay Commission Cclls. Sincc all corrcspondencc
b
c the Commission
~
~ and various Ministrics/departments was to bc dealt with
only by the respixhvc nominatcd Liaison Officers, the ddls were to function undcr
thc dmct supervision of thcsc oficcrs. Accordingly, Pay Commission Cells werc
sct up in most of thc Ministricsl~ljammciits
1.37
At our rcquest, Governmcnt.issued instructions to 811 departments
advising hem to cxtcnd their fullcst cmpaatjon and assistancc to the Commission.
Whilc furnishing information to the Comniission, thc following instructions wcrc
to bc kcpt in view :
1)
ii)
\Uiencver thc sicws of the Govemmcnt on any policy mattcr wcrc dcsircd
by the Commission, the vicws should bc finaliscd expeditiously in
coilsultation with all the conccrned Ministrics/Departments or authorities.
Whcrescr it was not possible to asccrtain thc final vicw of Govcrnmcnt
cspcditiously, Sccretarids might, if thcy so dcsirc, give thcir pcrsonal
vicus, in thc light of thcjrknoivlcdgc and cspcricncc. In such cascs. it
should spccificallybc ma& 6lcar that thc victvs w r c pcrsonal and not thc
official stand of thc Dcpartnicnt.
iii)
\\ark. Thq could giw cvidcncc orally allcr obtaining prior approval In
such C ~ S C Stlic views might bc itidicatcd as thcir pcrsotiiil VICWS
11)
1 , 38
(2ueshtinairr
Orol ,*I,dF,,Cf
I ,3!,
From 27th Junc, 1993 to 20th March, 1996. thc Commission took
oral evidcncc of various Unions,' Fcdcrations and Associations of Ccntral
Gownniait employees. In all, oral cvidcncc of 553 Unions/ Federations was takcn
ivliich is at Annexc 1.6. During such oral cvidcncc, a considcrablc nurnbcr o i
documents were also prescntcd to us. Wc also had thc bcncfit of advice from
Sccrctancs, Heads of Departments and cniincnt pcrsons, lists of whom may bc sccn
at Anncscs 1.7 and 1 .X.
I BilS
Itis1itutimul
1.41
coll.~~4lllllil.~
1.40
Commission and extracts froni thcm haw bccti includcd at suitablc placcs in the
tcst. It is hopcd h a t uith this pioncaing cffort. a trcnd towards dcvcloping a bod!.
of litcraturc conccming mattas rclatcd to Govcmmcnt cniployccs. thcir conditions
of service, conipcnsation packagcs, rcstructuring of Gov&nmcntal organizations,
ctc. Will bc sct. We recommend that all these Reports be made available to a
larger audience outside the Government. 'I'hc mcchanism of institutional
consultants, wc found, was prcfcrablc to appointmcnt of individual cxpcrts as
advisers to thc Pay Commission. It providcd an institutional cxpcrt input, instcad
of nicrcly individual imprcssions:
ltitrrdqwirttiitwd
Cminiitttw
1.42
A study of thc Rcporls of thc prcviocls CPCs rcvcalcd that on a
number of issucs thcy had rccommcndcd thc sctting up of Inter-Dcpartmcntal
Committax by thc Govcmmcnt in ordcr to considcr contcntious mattcrs and comc
up with solutions. It was found that in a numbcr of instanccs, somc Committccs
wwc eithcr not set up or took an unconscionablc time to submit thcir Rcports.
Whcrc their rccornmcndations bccanic nvailablc, thc Govcrnrncnt failed in
nunlerous qscs to rcsolvc tkmattcrs finaliy. somctinics cvcn till today. Lcaming
from thc past, thc Commission dccidcd that some of thc iniportant IntcrDcpartmcntrrlCommittccs should bc sct up during thc currcncy of thc Commission
itsclf. In a fcw cascs whcn thc conccrncd Ministrics showed rcluctancc, thc
Conimission constituted die Committccs on its min. Thc idca was to havc their
rccommcndations and makc lhcse Ihc basis for our final rcport. Wc arc glad to
statc that \vc havc largcly succccdcd in our objcctivc. A list of thcsc Committccs
is placcd at Anncsc 1. I 1.
INTERIM REPORTS
Fir.st ciitdSecotid
Ifitcrmni Haports
f .43
The Commission sq6mittcd its first Rcport, which pertained to
lntcrim Relicf to pensioncrs, on 2 1st Octobcr, 1994. It was rccomicn4cd. that all
pcnsioncrs and family pcnsionm be sanctioncd an lntcrim Rclicf at a wifonn rate
of Rs.50per month. This was to be trcatcd as a distinct and scparate clcmcnt to
bc sd off against the rctircmcnt bcnefits to be finally rcwmmended. The Second
Rcport of the Commission was submitted to Govcmmcnt on 2nd May, 1995. It
recommended the grant of Interim Rclief equal to 10% of basic pay, subject to a
minimum of Rs.1OO/- per month. A further instalnient of lntcrim Rclief cqual to
10% of thc basic pemiodfamily pension subjcct to a minimum of Rs.50 per month
\\as also rccommcndcd . It was suggcstcd that Deanicss Alloivancc linked to thc
avcragc AICPl 1201.66 as on July 1,1993 bc lrcatcd as dcarncss pay for reckoning
crnoluments for thc purposc of rctircmcnt and death gratuitics, and lhc ceiling on
gratuity be cnhanccd to Rs.2.5Iakhs. Thcsc rccommcndations wcrc to be given
effect lo from 1 st April, 1995.
Third Iiltt*riin
1.44
Hc.pirt
Gcneml l*imat
1.45
Part I
1 46
1.47
Porr I1
~It
is our clcar
~ bclicf
that thc natmn should first buiM a cotlsc~uson ccrtain fundamcntal issucs relating
to its public serviccs. These are connectcd to thc kind of govcmancc wc wish to
havc in the coutitry. In the light of thc changing social, cconomic, political and
other trends, it is neccssary to examine the changing face of thc Central
~
o
~and thc
j role~of the
t public services therein.
1.48
I .54
Part N dcals with pay scatcs of civilian cmployccs We first makc
our rmmcndalions with rC@ to orgmiscd services and comnion catcgorics and
12
thcn fix thc pay scalcs for othcr posts in thc various Minisuics and Dcpartnxnts
of thc Ccntral Gomnment. This is followd by a Section on thc oficcrs and
cmployces of thc Suprcmc Court of India and thc High Court of Dclhi We
concl& this Part by suggcsting thc paltcrn for thc Union Tcrritorics
hrLs
1'6 L'I
I .55
Part V deals with allowances and f'acilitics, and Part VI with
pensions and othcr retiremcnt benefits fot civilians
Pam MI 6i C711
Part Vii concans itself with the pay scales and allowmces of
A ~ C XFONXS
I
personne~6nd part VIII with their conditions of service ~IKI
pcnsionary btnefits.
Part u'
I57
( h r owrull
Sh'rlg,
136
1.58
The whole idcaofhaving Public Service Management first and Pay
scales later is that wc should first k i & what we ilft going to do with our
bureaucracy, its size, cfioiency, productivity, effcctivcness and accountability.
before we take up the question of what it should bc p a d We hope that the
government will appreciate the nexus that we seek to establish between the
utility of the public servant to the nation and the payment he receives for his
work Our report should be implemented as an integral whole* in its entirety,
as a complete package.
Certain Limiting
Factors
Greot
cqxclations
I 39
In the Report &chave tried to i
d upon d1important issucs r a i d
bcfofk us. We havc not consciously sidestepped any issue: the attcmpt has bccn
to express-our vicws and suggest a clear line of action. As' far as possible. the
effort has been to indicate the reasons, in brief, that have HCI 'ghcd with us for
acceptance or rcjeclion of tach demand. However, due to paucity of space. it is not
fkasiblc to furnish detailed jllstification on every point. This in itself should not,
be interpreted to imply any, lacuna in the proper examination of thc matter.
Decision on evay issue has bden taken a h punctilious scrutiny at various stages
tn the Secretariat of the Conhission. To ensure objectivity and.impsrtialit). in
decision malung, recQmincndations m& by Team Liaders were submitted to a
Core &p set up unda he chairmanship of thc Member Sccrew and with fouf
senior officers as members. All proposals finally went to thc Commission in
accordance with the mommendations ofthe Core Group.
1.GO
The present Pay C<mmission has mused great expectations in the
minds ofGntral Government employces and it has perhaps not been possiblc fm
13
SmaJ
1.61
Whilc-thcnotification sctting up thc Filth CPC was issucd on 9th
April, 1994, thc Chairman took ovcr chargc.of his officc on 13th April. 1994. Thc
Sccrctariat of thc Commission start& functioning on 2nd May. I994 with thc
assumption of chargc b! the M c m b Sccrctary. At thc,very outsct. a policy
decision was taken to have a small team of officials in thc Commission. As
compared to 209 p t s sanctioned for thc Fourth CPC, we initially obtnincd
sanction for only 107 posts with the lrndcrstanding that niorc posts would bc asked
for whicn thc prcssurc of work mounted. Thc Commission received a rocord
numbcr of mcmoranda and rcplics to qucstionnaircs. Thc work rclating to oral
cvidcncc by associations and individuals, finalisation of consultancy reports and
obtaining thc recommendations of Intcr-departmental Comniittccs, ctc. addcd up
and morc posts \wre got sanctioned subsequcntly: Thc total numbcr of posts
sanctioned went up to 141, but the maximum numbcr dcploycd at no stagc
cscccded I 35.
1.63
Staff at lower lcvels was d r a m on deputation from diffcrcnt
Ministries and hpartments. We took a policy decision to takc only such pcrsons
as were holding analogous posts in their parent Departmcnts. With dcputation
allo\vancc having bcen reducedto 5% of basic pay by thc F o d i CPCI posts in thc
Commission remained unattractive. It was partly thc Conunission's own
experience in this regard that bccame the basis for our recommendations on
deputation duty allowvmce.
Org&in$ational
S!rUClUN
Accmmodarion
The work of the Commission was dividcd into three wings Administration Wing, Coordination Wing (including Computer and Statistical
Units) and T e c h d Wing (misting of six teams). The work allocation amsngst
the various teams, along with the details of staff sanctioned to cach team is given
in Annexc I . 12. Organizational Chart of the Commission is at Annexe 1.13.
Namc of cach oflicial deployd in thc Commission,along with his scnicc. is s h o w
unit wisc.at Anncsc 1.14.
1.64
1 65
The Commission was initially provided accommodation m 22 rooms
of Vig?,an Bhavan Annexc. As this was found inadcquatc for a rcgular ofice, the
Dircctoratc of Estates subscquently allotted 1 1,659 87 sq feet arca on thc 2nd and
3rd floors of Trikoot-I Building at Bhikaji Cama Placc. R K Puraiii. h'cu Dcllii
l'hc Cotiiinission shrftcd to its ncw prcmiscs on I 1 th March. 1995
14
ANNEXE 1.1
(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY
RART-I swnos-1)
CX)\"EWNMRNI O F INDIA
XlIHISTRY O F FINANCE
I)EI'AWlMENT 01;ESI'KNI)ITl!HI.:
Nm Dd&chcP(hAprll. 19pl
Ckltrr 19.1916 (W)
I
2
Chrinnan
Stcrnlwr
Stemhcr-Sccrctrn
'I o ex;lni~ncrhz wirh methuds atid work cnvironnicnt as also the varwty ofallowancxs and bcnefitz i.1 kind h a t a x Iircxmtl)
av.ulithlc to I)*:alcxcvrwrianrxlcawgmics in adrliticn to pay and IO suggest rationalisation and simplification thcrcof with a view
to p w i ~ ~ x uctli,i,alc?
ig
in adminiswation r h i i n g ndundant papcr-wnrk and optimising the size of rhe Govm~ncmtmachincry
'1 I) niAc rruinmwdolinu UI
6111
Ilmxoing
~
having regard. among other rclrvanl faam%to the prevahg pay sIrudure
and rctirenient hcnefits available under the State <iovemmenl. etc.. ecmnnmic conditions in the country, thc resources oftht
Central Govcmmmt and the demands thenrin such as t h c w on acwunt of economic and social de~rlopmcnt.defince and
i i i t i m i i l siiiii ilx and rcquirenicnts of sound t&il
mrnagcment.
3.
'111~
Conmsi+w:~ 1 1J1s v i s its o \ w procedure and may iippoint such Advisers. institutional consultants and e x p t s as it may ccmsida
muwsiry for any p.mi;ular piqnxc. It may call fiw such intiomintion and take such evidence as it may cwnsidcr nrccJs.T?'. Minislnes and
I~cpartnaentsof thc i;o\crnnic.nt of India'will furnish such inkmiation and documents and other assistance as may bc required by the
C'cvnnikion 'Ih:
Govmmiuit nf11di;i mist h a t SWC Govr.mmciits. Service rlswiationn and others cnnccmed will d e n d l o the Commission
their litllcst crxpration and a>sist;lnie.
4.
32
. 'lhc C;namkkxi \ v d make IL, icwmiuidaticm as stion ;as t>~siidc. It m;ly consider. if'nece<sary. sending repotls On an?.of thc manen
:rnd u hcn the rc;oiiitii~iiil.itir,n~
i r e linitliscd.
15
(WVLIKNMEN'I' 0 1 ; I N I N A
MINIS'IRY O F FINAN(II
1)13I'AHTMENT OF E;XPI.:NI)I'IlJHK
HESOLUTION
No. S( 12)/E.111/93. Ciovernmerit of' India have decided that !he 'Icrms of Kefcrencc of' thc Fifth ('Clltrdl
Pay ('ommission as contained
111
this Ministry's Resolution 01' even oumher diited 0 t h April. 1004 shall
tk amended by addition of a new pmit 2(f) below 2(e) of the Resoluh)n iis undcr :2(l.):
,., .
I he (.'ommission may consider the demands 01' the stall' side ot the N i ~ t i ~ ~Council
ii~l
of the JCM for grant of another iristalment of interim relief and mergcr o t ;I further portion
o f D A with pay (Ior the purpose of gratuity alone) and send it rcport thereon. it' the
Conimission feels that it will not be possible for them to submit their filial Kcport within a
period ot' 1 X moiiths from the date of,its appointment.
While considering these demands. the Fifth C~ntralPay ('ommission may take i n t o :tC'L+ O I l I l I
the interim relief and h e merger of 204 of DA with pay only tor (he purpose of grittuity.
already sanctioned hy the Government in September, 1903."
Sdi(K. VENKATESAN)
SECh'kTAh'Y 01;'
THE.GOVEKNMEhT O F INDIA
16
ANNEXE- 1.3
GOVERNMENT O F INDIA
MINISTRY OF FINANCE
DEPARTMENT O F EXPENDITURE
New Dclhi, the 17th July, 1996
Asadha 26,19 18(Saka)
RESOLUTION
No 5( 12yE-IIl/93 The Gov.mncnt have decided that the Terms of Reference of the FifUr Central Pay
Commission as contained in this Ministrys Resolution of even number datcd 9th A p d , 1994 and
amended wdc this Minisos Resolubon of even number dated 12th J a n u q , 1995 shall be fiuther
amended by thc addition of a new para 2(g) below para 2(F) as under 2(9)
The Commission may consider whether another instalment of mtmm relief may be
granted to the Central Government employees and give an interim report thereon Thc
interim relief, if recommended, shall have to be fully adjusted agunst and subsumed
III the package which m y become adrmssible to the Central Government employees on
acceptancc of the final recommendations of the Pay Commission
Sd(N.K. SINGH)
SECRETARY TO GOVERNMENT OF INDIA
17
RESOLUTION
No.5(12)/E-111/93 Thc Ciovcrnmcnt have dccidcd that Para 2(b) (iv) of thc Tcnns of Refcrcncc of
the FiW Ccntral Pay Commssion as containcd in this Ministc's Rcsolution ofcvcn nwnbcr datcd
9th April, 1994 may be modified on thc following lincs
Existing tcmi
Personncl of union
Temtorics: and
Sd/(C. RAMACHANDRAN)
SECRETARY TO GOVERNMENT OF INDIA
No 5( 12)E-111/93 The Government have decided that the Terms of Reference of the Fifth Central Pay
Commission as contained rn this Ministry's Resolution of even number dated 9th Aprd. I994 and mended
nde h s MIIUSQ'SResoluhons of even numbers dated 12th January, 1995. 17th July, 19% and 24th October,
1996 shall be further amended by the addition of a new para 2(h) below para 2(g) as under 2(h)
"To examine the vanous methodology employed for deterrmnauon and payment of
Productivity Linked Bonus (PLR) in the Ministnes and Departments of the Central
Government and recommend the general pnnciples and conditions m hich should govern
p m e n t of bonus and also to recommend the sqxcific parameters for evolvmg bonus
formulae for each Ministry and D e p m e n t where PLB schemes are in FQKX at present
The Commission may also examine the ' !id hoc' bonus scheme in force in those
Departments where PLB schemes. are not in opcration,with a view to
recommendmg the desirability and feasibility of introducing productiviQ linked
incentive scheme and may rcxomrnend a specific formulae for detamining the
productivity index and other related parameters."
Ordered that the Resolution be published in the Gazette of India.
Ordered that 3 copy of the Resolution be communicated to Fifth Central Pay Commission
.w(N.K.SINGl4)
SECREIAKY '1'0 GOVI3WMEN'I' 01: INDIA
: 19:
ANNEXE - 1.6
LIST OF FEDERATlONS/UNIONS/ASSOCIATION
WHO
TENDERED ORALEMDENCE BEFORE PPY COMMISSION
S.NO.
1.
2.
3.
4.
5.
MINISTRY OF COMMERCE
7.
8.
9.
10.
I I.
12.
13.
14.
IS.
16.
17
18.
19.
20.
21.
22
23
24
S.NO.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.'
43.
44.
45.
46.
MINISTRY OF DEFENCE
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
5 7.
58.
59.
60.
0I
17713
S.NO.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
94.
95.
96.
97
98.
S.NO.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
S.NO.
129.
151.
152.
153.
154.
155.
156.
157.
158.
159.
160.
161.
162
S.NO.
163.
164
165
166
I67
168
169.
170
171
172
173
174
175
176
177
178
179
180
181
1a2
183
184
185
186
187
188
I89
S.NO.
190
191.
192.
208.
209
210
21 I .
212.
213.
214
215.
216.
217
218
2 I0
S.NO.
220.
221.
222.
223.
224.
225.
226.
227.
228.
229.
230.
231.
232.
233.
242
243.
244.
245.
246.
247.
248.
S.NO.
NAME OF T H E FEDERATION/UNlON/ASSOClATlON
249
250
25 I
252
253
254
255
256
257
258
259
260
26 1
262
263
263
265
266
267
268
2 69
2 70
27 1
2 72
273
274
275
276
277
278
279
2x0
28 1
282
2x3
S.NO.
N A M E O F THE FEDERATION/UNION/ASSOClATlON
284
285
286
31 I
112
-3 1 3
314
315
3 10
S.NO.
3 17.
ASSOCb4
318.
319.
320.
321.
322.
333.
334.
335.
336.
337.
338.
339.
340.
341.
342.
343.
344.
345.
346.
347.
:30 :
S.NO.
INDIA
348.
349.
350.
351.
352.
353.
354.
355.
356.
357.
358.
359.
360,
361.
362.
363.
364.
365.
366.
367.
368.
369.
370.
371.
372.
373.
374.
375.
376.
377.
3I
S.NO.
37x
3 70
380
38 1
382
3x3
3 84
385
386
387
388
NCT DELHI
389
390
39 1
392
393
394
395
396
3 97
398
3 99
400
40 1
402
403
404
405
306
S.NO.
N A M E OF THE FEDERATION/UNION/ASSOC1ATlON
UNION TERRITORY - PONDICIHERRY
407.
408.
409.
410.
41 I .
4 1.2:
413.
414.
415.
416:
417.
418.
419
420.
421.
322.
423.
424.
425.
426.
427.
428.
429
43.0.
431.
432.
433.
434.
435.
436.
437.
438.
439.
S.NO.
440.
441.
442.
443.
444.
445.
UNION
446.
447.
448.
449.
450.
451.
452.
453.
454.
455.
456.
457.
458.
459.
460.
461.
462.
463.
464.
465.
466,
467.
.46X.
469
470.
471.
472.
473
474.
S.NO.
475.
476.
477:
478.
470.
480
48 I
4x2.
4x3.
4x4.
4x5
4x6.
4x7.
4x8.
4x9
490.
401.
492.
493.
404.
495.
PENS1 ONERS
496.
497.
498.
499.
500.
501.
502.
503.
504.
505.
5 06.
w7.
?OX.
so0
S .NO.
-5 10
51 1
5 12
513
i I4
5 15
5 10
517
518
01'H K HS
5 1')
520
51 I
522
523
524
i2i
5%
527
528
529
530
53 1
532
533
534
53s
536
537
538
530
540
\'
'
S.NO.
541.
542.
543.
544.
545.
546.
547.
548.
549.
550.
551.
552.
TRIPURA
KARAMCHARI CLASS IV UNION, SURVEY OF INDIA. MEGHALAYA
MINISTERIAL STAFF ASSOCIATION. SURVEY OF INDIA. MEGHALAYA
METEOROLOGICAL DEPTT STAFF UNION, GUWAHATI BRANCH
NATIONAL FEDERATION O F THE BLIND, NEW DELHl
NORTH EASTERN COUNCIL SECTT EMPLOYEES ASSOCIATION. SHILLONG
N E RAILWAY EMPLOYEES ASSOCIATION, ASSAM
N E RAILWAY PROMOI'EE OFFICERS' ASSOCIATION. ASSAM
N E RAILWAY OFFICERS' ASSOCIATION (CLASS I). ASSAM
PROGRAMME ASSOCIATION O F AIR AND DDK. MEGHALAYA
REGIONAL COORDINATION COMMITTEE OF P fl: T UNll . ASSAM
SURVEYORS' ASSOCIATION. MEGHALAYA
TECHNICAL STAFF ASSOCIATION BUREAU. SHIMLA
: 37
DEFEhCE FORCES
-I
G E N E R A L S R O Y C'HOWDHURY. CHIEF O F A R M Y S T A F F
.4Dh4lRAI, R H TAHILIAKl(RI'TD). P V S A4
10
BRlCi S P SIBAL(RE1.D)
SI,SO
KAME A N D DESIGNATION
13
SH K I (; 13ALA KR ISHN AN. S1X.R I T A RY. DEPA K'I'M!-:N'T OF A(; K K'ljLT\ Jlili
AN11 COOPERATION
I4
15
I6
17.
I x.
19.
20.
21.
7')
23.
24.
25.
26.
27.
28.
--.
39
42
43.
HEADS OF DEPARTMENTS
44
45
46
SL N O
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
58.
59,
GO.
GI.
62.
63.
41
04
hS .
00.
GX.
69,
70.
71.
72.
73.
.
74.
75.
76
77.
42
COVEHNORS.
1
*
7
6.
7.
S.
10.
11
12.
13.
14.
15.
10.
17.
IS.
43
PP
'SZ
'PT
'S
'ZZ
'I2
'OZ
-6 I
DEFENCE ESTABLISHMENTS
29. Hcadquancrs Military Engineering Scnicc. New Dclhi.
30. InfantF Division. Pooncli and Infan@. Division. Jammu & Kashmir.
32. DRDO Snow and Avalanchc Study Establishment, Manali, Himachal Pradcsh
33. .Air Forcc Firc P o w r Dcnionstration. Pokhran
34. Dcsert Scctor in Rajasthan - Army Exercises
46
53. Passcngcr Rescrvation System, Control Oficc of Dclhi Division of Northcm Railway.
Dclhi
54. Cardiolog?, Unit; Railway Hospital, Pcrambur.
5 5 . Nagorc and Nagapattinatp Railway Stations, Pondicheny
OTHER ESTABLISHMENTS
56. C.P.1V.Dconstruction in Vigyan Bhawan, New Delhi.
57. C.P.\V.D. construction of Parliament Lbrary and Hall of Special Display at Pragati
59.
48
ANKEXE: -1.10
SL
NO
INSTITUTE TO WHICH
STUDY WAS ASSIGNED
NAME OF THE
STUDY
RI:STKUCTURING OF SEKVICI'S IN
THE: FIF1,II OF SCIENCE AND
TECI lNOLOGY & AGRICUL'I'IJKAI,
KESEARCH
SUIU'I,US M A N P O W K O N '1*1-11: INDIAN
IIAII .WAY S
49
SI.
NO
NAME OF I H E
STUDY
10.
11.
12.
13.
14.
15.
16.
17.
I')I:.'lI~RMINATION OF MINIMUM
S N A K Y FOK CENTRAL GOVERNMIXI'
IJMI'I.OYEI~S
1 x.
1~E'II~RM!NA'I'ION
OF A KA'I'IONN,
SALARY STRUC'I'IJRE FOK SENIOH
FIINC'I'IONARIES IN THE Cl%l"AI,
GOVIJI<NMI-:NT
19.
so
ANNEXI;:-1.1 1
I . Laboratory
Technicians
Scope of
Constitution
S1udy
To examine the
disparities in the pay
structure of Laboratory
Technicians, Laboratory
Asstts., Chemists,
Laboratory Attendants
etc.
Deptt of Supply
Ministry'of Commerce
4. Jt. Secretary (Admn.)
Railway Board
Ministry of Railways
2
Constitution
Scope of
Study
Working Group
Cooperat ion
Ministty cif Agriculture
4. Executive Director
Railway Board
Ministry of Railways
5 . Director of Personnel
Para Medical
Staff
Ministry of Defence
5 Director General
Deptt. of Posts
7 J t Secretary
Ministry of Environment & Forest
52
L'etei-inarians
I . Director General
Remount Veterinary Corps
Ministry of Defence
2 Jt Secretary (Admn )
Deptt of Animal IIusbandry
Ministry of Agriculture
3. J t . Secretary (Admn.)
Deptt. of Health
4 Jt Secretary
Ministry of Environment R:
Forests
6 Director
Veterinary Services
Delhi Administration
7 Representatives of
Para Military Forces and
Border Security Force
5
Printing Staff
3 Jt Secretary
Ministry of Finance
Scope of
( onstit ut ion
Study
4 Jt Secretary
f rin t ing
Directorate o! Printing
6
1 Spl Secretary
Planning.Commission
2 Director General
National Informatics Centre
3 J t Secreta?
Deptt of Personnel Kr Training
3 J t Secretary
Deptt of Expenditure
5 Executive Director (Acctts)
Ministry of Railways
6 Scientist/Engineer (Grade SG)
Deptt, of Electronics
7 J t . Secretary
Atinistry of Honie Aftairs
8 Director
Ministry of Defence .
Work
EstabliShment
Charged
Nornis
Stenographers
outside
Secretariat
1 Jt Secretary (S)
Fifth Centra! Pay Coniniission
2 Executive Director
Ministry of Kailways
3 Jt Secretary
Ministry of Defence
4 Director (C)
studied by the
W orki rig G 1-011 11
Scope of
st lid!
7 Dircctor (1;)
I>eptt of I e r s ~ n ~K:
i ~Training
l
Language
1nst ruct ors
1 It Secretary(S)
5 J t Secretary (Training)
hlinistn. o! Ilefknce
10. Accounts Staff To esamine the need h i paritv in pay scales and
s c n k e conditions
1 .It Sccietar->.(S)
!-itill (enti-al Pay (ommission
Scope of
Study
6 Director ( C )
Slinistry of Railways
9 I>y Secretary (A)
Artists
I J t Secretary ( R )
Fifth Central Pay Commission
2 Jr Secretary (IP&CA)
\finistry of Inforniation K:
. Broadcasting
Secretary (B)
Slinistry of' Information K:
13 road casting
-3 J t
4 J t Secretary (Films)
3linistry of Information K:
Broadcasting
I2
Cameramad
Photographer
I Jt Secretary (K)
Fifih Central Pav Conimission
2 Jt Sccrelary ( E )
Ili riis~rv 01. Defcncc
57
Scope of
Study
Working Group
3 Jt. Secretary
Defence Production
Ministry of Defence
4 Jt Secretary (Admn )
Deptt. of Education
Ministry of Human Resource
Development
5 . .it. Secretary (Admn )
13
I4
Central Police
Organisations
(CPOS)
Restructuring and
rationalisation of ClOs
1 . J t . Secretary (R)
Si
Kc).
<'atcgory of Posts
studied by the
Working Group
Scope of
Stiidy
3 Director General
BPR&D
6 J t . Secretary (NE)
59
1.12
STAFF
SAhCII O
N E I)
ANNEXC.
Cilsh
COORDINATION
01
01
02
Asstt.
01
stcno
01
IS)(..
'I'cl.Opr. (1 1
( 1.4
Driver
I'COll
0I
Scction
Coordination I
WING
Coordination I1
D.S
01.
1J.S.
S.O.
Steno
L DC
Pcori
0I
01
03
01
02
0I
01
Asstt.
PA.
IJ S
0I
Asslt
03
stcno
LIX
I'COII
01
01
01
SECI'ION/
TEAM
AI.LO('ATION
Statistical Unit
Matters pcrtaining to M i n i s e of
Planning and Progrmmc
Implimcntation; Planning Conmission
PS.A
01
Prog Asstt 0 1
D & 0 'E'OI.
(On loan froni
NIC)
L DC
03
Pcon
0I
u s.
Asstt
lssucs rclating to dcamcss allowancc.
JRA
compensatory allowanccs. dctcrm t nation Stcno
of minimum and inasimum salan and
LDC
comparison of salarics and pcrquisites
Pcon
with PSUs/Privatc Scctor/Statc Govcmmcnt
ctc as wvcll as collcctton and
compilation of Statisttcal Datc
Team "B"
D.S.
S.O.
Asstt.
P.A.
Stcno
L.D.C
Peon
D.S.
Matters pcrtaining to the Ministries of
Agriculture, Chemicals & Fertiliser,
D.D.
Civil Supplies, Consunicr Affairs and
J.A.
Public Distribution, Communication,
Asstt
P.A.
.Enviro&ent & Forcbts, Food, Food
Processing Industries, Health & Family Stcno
Welfare, M~JICS,
Non-Con\m~tionalEnergy UDC
Sources, Rural Dcvclopmcnt, Scicncc & Pcon
Technology; Departments of Atomic
Enera, Occcan Dcvclopmait and Space.
61
01
RO.
01
Consultant 0 I
02
04
02
01
0I
02
01
03
01
01
01
01
01
01
01
01
01
01
01
SKCTI ON/
TEAM
AI,I,OCATION
S'TA FI;
SA NCI'10 N E I)
Tcam "D"
Team "E"
02 :
0I
01
01
03
01
01
01
01
01
01
0I
03
01
01
0I
01
Tcam "F"
J I)
s0
ASStl
I' .4
Issucs pcrtaiiiing to coninioii atcgorics J K A
Iih; Kaitna! l'rotcctioii Force. Fire
Stcno
Scr\ icc Staff. Artists. Can~crmicri.
Pcon
I'hotoynplms. ('incnia I'rolcct ionists and
O p c i ~ ~ t oeditorial
i~.
stnl'l' I ranslators.
inlcrlmtoi~and Sccurit\ Yt:ilT 1)cIhi
Policc (ollicr tliaii Group ;\' K, 13')
0I
0I
0-1
01
0I
01
0I
ANNEXE 1.13
- .-
____
JCHAIRMANI
LEQEND : DIR
---
Dkrc(or
D.S. mputy ~rcrrewy
J.O.
D.D. -Joint
-payDhw&x
-r
64
SI Name of Official
so (S/Sh.)
Designation
Service
Parent Oflice/Cadre
Remarks
h 4 K Kaw
Member Secretary
Indian Administrative.Sen..ice
3 Sunder Rajan
J6int Secretary
Rakesh
Joint Secretary
Manipur-Tripura Cadre
Director
Ministry of Railways
1 1) 1 1 Gautani
5
Director
Ministry of Defence
Snit P Janaki
Deputy Secretary
Ministry of Defence
M R Iania
Deputy Secretary
Department of Posts
8 Anind Kumar
Deputy Secretary
Sikkim Cadre
65
Repatriated n e f
31 3 95 (.AS)
SI Sariic of Official
Designation
Service
Parent Office/Cadre
Deputy Secretary
Ministry of Finance
Ken1 a r ks
S o (S/Sh.)
..\
ti Chandna
Ktd
\i
e I-
? ! I Oh( I\)
Ministry of Finance
Repatriated
'>\
I; 1296(F\t
Deputy Secretary
Ministry of Defence
Deputy Secretary
Ministrv of Finance
I>epu t y S ec re t ary
Minist?. of Finance
Joint Di rec t or
I'rincipal Systems
Analvst
Plannipg Commission
tinder Secretary
Ministn of Finance
Under Secretary
Ministq of Finance
60
ef
~~
SI S;irne o f Oniciirl
so (S/Sh.)
IJesignat ion
Service
Parerit Onicc/Cadre
i S K John
Under Secretary
Ministry of Finance
S 11 f3aijal
IJndcr Secretary
hlinistry of Finance
20 Y \: Srivas:a\.a
Deputy Director
21. R . N . Sood
.Deputy Director
Principal Private
Secretary
Employee of the
Supreme Court of India
Scnior Analyst
10
Remarks
Ktd
w e f 30 9 96(.-lS)
24 .4mn Kumar
ReseearchOfficer
Ministry of Finance
25 S K Ctitiikara
Section Oflicer
Ministry of Finance
67
Designation
Service
Parent OfliceKadre
Scction Oficcr
Ministry of Commerce
Scction Officer
Ministry of Commerce
Section Officer
Ministry of Finance
Section Officer
Ministry of Defence
30. S. Balasubramanian
Section Oficer
Ministry of Finance
Section Officer
Section Officer
Ministry of Finance
3 3 . Jagmohan Singh
Stction Officer
34. V . K Tondon
Private Secretary
Ministry of Finance
Ministry of Agriculture
SI Name of Offcial
No (WSh.)
26.
!lrlil
Ioshi
68
Remarks
Kepat riat ed
w e f 18 4 95(A>V)
Repatriated
w e f 2 2 1096
SI . Y a m of Official
No (S/Sh.)
Designation
Service
36 Jagdish Mittcr
Privatc Sccrctary
Ministry of Defence
Private Secretary
Ministry of Defence
38 C.S S Raghav
A.A.O.
39 P K Gupta
A.A.O.
Controller General of
F.epat riated
w e f 24 5 95
Defence Accounts
Controller Genera: of
Accounts, Ministry of Finance
40 h4 R Sadagopan
A.h.0
Controller General of
Defence Accounts
Junior Analyst
37
41
E R Padmanbhan
K nhaskaran
4 2 S, Sankar Kanian
3 3 Gulshan Arora
Data Entry
Operator(E)
Data Entry
Operator(E)
69
Repatriated
wef 5 6 96(AS I
1)esignation
Service
Parent OflicelCadre
45 S~ihhashChander
Assistant
Ministry of Finance
46 Anil Jain
Assistant
Ministry of Finance
Assistant
Ministry of Finance
-18. A K Misra
Assistant
Ministry of Finance
49 V K Goel
Assistant
Department of Posts
SO R P S Neyi
A ssi st ant
Ministry of Agriculture
Assistant
52 Kailash Chander
Assist ant
Ministry of Agriculture
5 3 U S Iaiidey
Assist ant
Ministry of Labour
54 Lila Ram
Assistant
C A 0 , Ministry of Defence
SI X;;~nicof Officinl
So (S/Sh.)
70
Remarks
SI Same of Official
S o (S/Sh.)
Designation
Service
Parent Office/Cadre
5 5 ii P Bahl
Assist ant
A FH
C.A.O.,Ministry of Ilefence
56 R I' Sharma
Assistant
Ministry of Finance
5 7 \; K Sikka
Assistant
Ministry of Finance
58 \'inas Malhotra
Assistant
N K Pandey
Assistant
A F 14 Q Civil Service
60 S R Sharma
Assistant
C.A.O.,Ministry of Defence
P S Kalra'
6 2 .?rrun Goswami
Assistant
59
01
Q Civil Service
Repatriated w e f
3 I . 12.96(AZN)
03
Assistant
04
K C George
Psis! an:
Intelligence Bureau
Intelligence Bureau,
71
Remarks
SI Name of Official
No (S/Sh.)
Designation
Service
Parent OfTice/Cadre
65 Amit Das
Assist ant
Intelligence Bureau
Intelligence Bureau,
66 P G Banai
Assistant
67 R K. Suryanarayanan
Assistant
68 Devki Nandan
Assistant
Ministry of Labour
69 Mohd Salahuddin
Assistant
C.A.O.,Ministry of Defence
70 S N Munjal
71 Arun Kansal
Assistant
72 Krishan Kumar
Assist ant
73 Umesh Pande
Assistant
72
Re marks
SI Name of Oflicial
No (S/Sh.)
Designation
Service
Parent Ofice/Cadre
Employment
74 K.L Ahuja
Assistant
Intelligence Bureau
Intelligence Bureau,
7 5 Manjeet Singh
Personal Assistant
Ministry of Welfare
76. 1 Narayanan
Personal Assistant
Ministry of Finance
77 TamnKumar
Personal Assistant
Ministry of Finance
78. P. Suresh
Personal Assistant
Ministry of Finance
79 Praveep Singh
Personal Assistant
Ministry of Finance
73
Remarks
.-cd
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-0
.-c
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(d
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u
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73
cd
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.-+a
L-,
SI Name of Official
S o (S/Sh.)
Des ig nat io 11
Service
Parent Ofice/Cadre
88 .A K Sharfi,ci
1J L) C
A.F.H.Q.Clerical Service
C A 0 , Ministry of Defence
89 Cr Sreeniwas
UDC
A F H Q. Clerical Service
C A 0 , Ministry of Defence
90 \IS Bisht
II D c
Deptt of Industrial
Development
91 S (hakravany
UDC
AFH
92 A K Bhatnagar
IJ D C
JRA
Ministry of Finance
91 Ravinder Kotq
JRA
Department of Posts
JRA
Department of Posts
96 K K Kohella
UDC
N S S 0 (FOD),New Delhi
97 h i 1 Kumar
UDC
N S S 0 (FOD),New Delhi
95
0 Clerical Service
75
C A 0 , Ministry of Defence
Remarks
Designation
Service
Parent OiEce/Cadre
U D.C.
N.S.S.O.(FOD),New Delhi
Steno Grade D
Ministry of Finance
Steno Grade D
Ministry of Finance
10 1 Rajeev Sethi
Steno Grade D
Ministry of Finance
Steno Grade D
Ministry of Finance
103 W a s Avasthi
Steno Grade D
Ministry of Finance
Steno Grade D
Ministry of Railway
Steno Grade D
Ministry of Information Rr
Broadcasting
SI Name of Official
S o (S/Sh.)
Kumar
: 76 :
Remarks
SI Name of Official
No (S/Sh.)
Designation
Service
Parent OtTce/Cadre
Steno Grade D
Ministry of Finance
Steno Grade D
Ministry of Finance
108 P L Sanyal
Steno Grade D
Ministry of Agriculture
'
Steno Grade D
(ad hoc)
Casual appointment
Steno Grade D
(ad hoc)
Casual appointment
Steno Grade D
(ad hoc)
Casual appointment
Steno Grade D
(ad hoc)
Casual appointment
77
Remarks
SI Name of Official
Designation
Semite
Parent Ofice/Cadre
Steno Grade D
(ad hoe)
Casual appointment
113 P S Bedi
LDC
1 15 Shardha Nand
LDC
116 S S Phuloria
LDC
117 S C Rawat
LDC
Ministry of Finance
LDC
Ministry of Agriculture
I I9 P V S S Kaladhar
LDC
Ministry of Agriculture
S o (S/Sh.)
Remarks
a,
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SI S a m e of Oflicial
S o (S/Sh.)
Designation
Service
Parent Of?ice/Cadre
Ministry of Finance
Ministry of Finance
Department of Posts
130 S S. Rawat
Daftry
Group D
13 1 Sultan Singh
Jamadar
Group D
Ministry of Finance
152 K Kanan
Jamadar
1 3 3 . Satya Narain
Peon
Group D
Peon
Group D
N S.S.O.(FOD),New Delhi
Peon
Group D
Ministry of Finance
Peon
Group D
Ministry of Finance
'
Remarks
135 . h a m a t h
1 36. . h i n d Dayal
80
SI Name of Official
50 (S/Sh.)
Designation
Service
Parent Office/Cadre
113 C K Murmu
Peon
Group D
Peon
G-roup D
Farash
Casual appointrnent
I37 M Manoharan
Peon
Group D
Peon
Group D
Peon
Group D
1.10 Om Prakash
Peon
Group D
Ministry of Finance
14 I Sajjan Kumar
Peon
Group D
Peon
Group D
81 :
--
Remarks
B K Aggarwal
(2 1 9s to 31 1 97)
.+IK Chandna
( 1 2 9 6 t o 3 1 796)
-3
A L Shastry
( 1 3 9 96 to 31 12 96)
S Balasubramanian
( 1 1096to31 197)
TERMS OF REFERENCE
2. I
Thcre is a conscious dcparturc from the past as far as the Tcrms of
Reference of this Commission arc conccr~icd.Wc have becn asked :
"to examine thc work methods and work environment as also the variety
of allowances and bcncfits in kind that are presently available to the
aforementioned categories in addition to pay and to suggcst rationalisation
and simplification thereof with a view to promoting eficicncy in
administration, reducing redundant papcnvork and optimising the size of
the Gowxnment machine?."
Admrnistrativc
Rejbrms
Commission
2.2
This enlarges considerably the scope of this Commission. Although
it would possibly be an exaggeration to call it an Administrative Reforms
Commission, as was stated by a national newspaper, it brings under our purview
certain significant issues of public service management which we may not
othenvise have dealt with at length. We welcome this opportunity to express our
views on the general policy which the Government ought to pursue in the area of
civil service reform.
1
Supporlivr
role
~~~~
2.3
Thc staflsidc of the National JCM havc not bcen aversc to this parl
ofour charter. They havc repeatedly asserted their comniitincnt to a ncw stylc'of
zovcmancc in his counu). and pledged their support to an); rcfomiist ideas that we
may cspoux Tlicy had only two ca\'cilts . thc consideration of such issues should
be taken up af'tcr thc main report on pil\.scalcs and allowances was submitted and
ConsuItuncy
reporb
24
It must be admitted at the outset that the time at our disposal \\as
not enough to delve deeply into the controversial arms of public senice
management However, we tried to enlarge our horiLons by resorting to
c~nsdtancicson such diverse subjects as the emcrging scenario af govcrnanco in
the 2 1st ccntq, restructuring of organizations, optimisation of manpowcr etc
Visit to
25
We also tried to analyze the mcasures taken by somc
Commonwealth countries which have atuactcd vide attention Tlic Coinniission
paid a brief visit to Malaysia. New Zealand, Canada and the U K which havc
undertaken widc ranging & succcssful refoms In public administration We had
fruitful intcraction with the pcoplc who were involved with thc ncu s\stcms
Commonwecaltlr
countries
2.6
In the U n i t 4 Kingdom, the effort started in 1979 whcn it was
realized that the countn wa$ excessively bureaucratizcd and regulated. At first,
Efficiency Units werc created in the Prime Ministers Ofice. Scrutiny Exercises
revealed several flaws in the civil service, which w r e saught to be remedied
throygh the Financial Management Initiative. Government departments werc
allowed to manage their own budgets and managers made personally accountable
for results. Then came the Next Steps Study, which resuited in the creation of
Executive Agencies. In 1991, the Government launched the Citizens Charter, a ten -:
year programme designed to raise the standards of public service. Privatisation has
been a key strategy in order to promote fair competition between thc public and
private sector and give the best value for money to thc tasjaycr and the user of
public seniccs.
2.7
New Zealand also kicked off its reforms process by corporatisation
and privatisation. Many government enterprises were sold off into private
ownership. More than that, the principles of private sector organisation, cfficicncy
and market coppetition were applied in the public sector A new system of
financial manigement was put in place to give individual departments gricalcr
autonomy in rhc management of thcir resources. Ministers now cntcr into contracts
with dcpartmcntal chicf oiecutivcs, specifying thc dcsircd output and the pricc that
will bc paid. Chicf Executives arc on fivc-year contracts. The!. in turn havc full
powrs to hirc and firc thcir staff and to fix thcir salarics which arc wholly rclatcd
to pcrformancc.
<
~rIl,ll/,l
ZR
1080
,\ h
/ ~ ~ S " '
2.9
Malaysia has also travcllcd in thc samc dircction through thc
do\vnsizing of thc public sector through privatisation, thc introduction of thc
Malaysian Incorporated conccpt and thc inculcation of positivc values and work
cthcs. The public service has adopted thc concept of Total Quality Management
lchich has paved the way for thc crcation of customcr-focused organisations
capablc of delivering quality outputs and scniccs to customers in a tinic bound
fashion. Towards this cnd, Govcrnmcnt has adoptcd thc clicnts' chartcr which
ciii~isagcda \+Titten commitmcnt by its agcncies to mcct prcscribcd standirds
SJwmic changes wcrc introduced in the budgcting and accounting arcas lo pcrmit
iiianagcrs to achicvc optimal utilisation of rcsources Thc Ncw Rcniuncration
S\.stcm cerated a work culturc that cmphasizcd pcrformancc, qualit!. and
productivity
2.10
There are several lessons that we can draw from thc expcricnce of
other countries in this general area :
Civil service reforms have been identified as a
critical concern in the quest for rapid economic
progress, both in developed and dcveloping countrics
the reform process has sought to define and
concentrate on the core duties of Government and to
ensure that non-corc functions bc offloaded on to thc
non-governmcntal sector
this has involved right-sizing of the Government and
reduction in its flab
many functions have consequently been privatised
fully or partially. corporatised o r ,given out on
contract
2.1 1
It is not that India has not taken initiati\,cs i n thc field of
administratiic rcforms. We ha\^ had thc Sccrctariat Reorganisation Committcc
hcadcd by Girija Shankar Bqpai ( 1 947). thc Rcport on Rcorganisation of thc
Machinen. of Go\zmmcnt b!. N Gopalastvanit .A!?.;ingnr ( 1940). the' Gon\ ala
Committcc Rcport (I95 1). !hc Applcb!. Rcports (1953 and 1956)> the
Administrative Rcfomis Commission Rcport ( 1900). and thc scrics of rcports
submitted b\, the Economic Administrati\z Refurnis Commission ( I98 I -84)
headed b!. Shn L.K.Jha. Conscqucntl!,. a11 01gnnisation and Mcthods Di\ision \\.as
set up in the Cabinet Sccrctarlat i n 1954,and this has flowercd into tlic prcscnt
Department of Administrativc Reforms. New s! stcins of sccrctariat working ivcrc
introduced, performance budgeting was adoptcd b!, all dc\dopmcntal niinistrics.
there was vide delegation of admlnistrativc and financial powers, scvcral initiatii.cs
were taken to professimaliie the public sector operations and attempts \vex madc
to create svstem of on-line monitorins of perforniancc in governmcnt.
Recent
2 12
Certam initiati~cs of the last tncnt? \cars ha\ c further accclcratcd
our march on the path of progrLss Wc ha\ c gone through a telccoiiiniunication
rcvolution, our shies ha\c bccr, frccd both for acroplanc flights and tclc\ ision
channels, information technology have spread far K: wide in thc Go\crnmcnt,
taxation systems ha\ e bccn rcfornicd, procedurcs ' for industrial licensing
transformed. NRIs and forcigli in\ cstors facilitatcd. shares of public scctor
enterprises disinvestcd and ratc of grou th of c\ports niultiplicd manifold The
NCM Economic Polic! of the In-1 fi\ c \cars has \ icldcd postti\ c rcsults and. thc
ccononi! appcars to ha\ c bccomc buo\ ant
Imlloftves
ltiillufitig <I
de hnlc
'
2 13
OURAPPROACH
2 I4
IS
as lollous
,I
/ h / W i ? l / I</
11i/i0l~
2 16
'
X I :
3
I LOOKING A T THE FUTURE I
I. I t l l t n I l l I*<\,
31
Any attcnipt to look at tlic futurc is a liazardous cscrcisc.
Futurolog?. in\.olvcs an ixuapolation of thc past into thc futurc \\.ith in1elligcnt
gucsscs about the Iikcl! ouicomc in an unccrtain world. Thcrc arc too man!.
impondcrablcs and cixn onc cataclysmic cvcnt like a world war or disintcgration
of a largc count!.
can make all thc guesswork rcdundant. Thcrc are n numbcr 01'
altcrnati\.c futurcs auaiting us.
.\ \ICr N''p0I.I
32
Fortunatel!. the hmc horwon of a pa! cominission is just a dccadc.
not too long a period to indulgc in a bit of iiispircd clam o! ancc Wc. thcretorc
commissioned the Stratcsic Management Group to forecast thc Iihch sccnnrio i n
thc political. economic. social and other sphcrcs upto thc \car 20 I0 lhc! ncrc t o
idcntif! the possiblc changes in thc charactcr of golcrrmcc and to suggcst
structural changes and the hind of bureaucracy requircd tc; mcct cffcctn cl! thc
emcrgmg challenges of thc 2 I st centuq In what fdlov s we nttcmpt to con] c! thc
gist of their report. as modified by our own pcrspcctn es
"~rcll\~e3
33
The primaq objective in this arca IS to rctaii and strcngthen thc
sovereignty. unih. intcgnt? and sccurity of the nation. contain fissiparous
tcndcncics. turmoil and unrest at home and 01crt threats from across thc bordcrs.
emergc as a kc! pla\cr at lcast on the Asian sccnc and optiniisc our rcsourcc
util1sation
Our rrirni r l
34
Toda!. thc itorld IS no longcr bi-polar In tlic post cold n a r period.
v ith Amcrica cnicrging as thc strongcst militan powct. India c m w l iciist
intcrnat~onal prcssurcs b! pla! ing onc supcr po\\cr agaiiibt thc ollicr \+/it11
Pahistan dcchiing i t s nuclcar capabilitj, i t is impciaIi\c that 11: c,ncliiII! I C c\aiiiiiic thc nuclear option to rcmoic thc ambiguit! i n our polic! Wc should
continuc to rcsist prcssurcs n i t t i rcgard to our missile and spacc piograiiiiiics
WL
rtrili'
/)l~/lclc$
3 13
Although the status of sonic \\omen in our society has seen a
rcmarkablc upgradation. thc position on an o\crall basis is quite unhappy The scx
ratio has declined from 972 in 1901 to 927 in 1991 The position of femnlc
literacy and nutritional and hcalth status of vonicii Icaics much to be desired
Efforts at thcir political cmponcrmcnt h a w not fructificd full!
3 I3
A similar problcni cxists i n rcspcct of socially and economicall?
backward groups lihc schcdulcd castcs, schcdulcd tribes and other backward
clasws Sustained efforts haw rcsultcd in an cnhanccmcnt of the Iitcracv rate to
37 4 I % for the scheduled castcs and 29 60'%1for thc schcdulcd tribes Rescmation
of scats i n thc Pariiamcnt. Icgislati\ c asscmblics. pancha! ati raj institutions.
cducational cstablishmcnts and for cniploj mcnt i n thc go\*crnmcntand thc public
scctor haw iniprovcd thcir status Sociall!. this has had t ~ hinds
o
of fall-out I n
ccrtnin Statcs. thcrc is a climatc of tcnsion bct\\ccii thc mciiibcrs of fontard and
bachnnrd conimuiiitics to tlic cvtcnt of bccoming a la\\ and order problem It is
also \\idcly fclt that thc facilities extended to thcsc disad\ antagcd sections of
socict> ha\c bccn corncrcd b) a feu influctitinl familics
,i g w i k r
/or
3 I0
In this contcxt. thc tollo\\ing agciid,, I'or action ma! havc to cmcrgc
~lc~lllll
During the eighties, thc Indian cconomy moved au.a>' from the
Hindu rate of gro~vthof the preceding two decades and achieved an averagc growth
rate of 5.23% per annum. Hotvevcr, the csplosive growth in government spending
resulting in negative savings of the Government administration and failure of the
public sector to generate investible resources led to a macro-economic crisis
towards the'end of the decade.
I:'collomic
3.18
A new economic policy was announccd in Jul!.. 1991 which
cnvisaged a roll-back of the State and placing a grcatcr rcliancc on market-fricndly
polrcics. In the ficld of industrial policy, liccnsing \vas abolishcd for most of the
industries, the number of items rcscncd for the public scctor uas rcduccd to six
and thc MRTP Act was amended. The National Mincral Policy ( I 993) dcrcser\,cd
t h m n minerals for exploitation by the private sector, \vhilc the National Tclccom
I;'olicy (1994) allowed privatc participation in basic telccom s c n k c s . Thc Air
Corporation Act, 1994 cnablcd privatc air taxi compaiiics to opcratc rcgular
dorncstic scrvices. The National Highways Act was amcndcd to cnablc levy of toll
on uscrs of national highivays.
pol1cre.c
3.17
3 19
Thcrc \ w c sporadic attcmpts at disinvcstmcnt i i i public sector
cntcrpriscs, but these got cmbroilcd i n controvcrsics. culminating finally i n thc
sctting up of thc Disinvestmcnt Commission ( 1996) I t is incrcasingl!, felt that in
92
3 20
On an ovcrall basis. i t has bccn cstimatcd that i f thcrc is a 5%
growth m GDP, per capita tiiconic can bc raiscd 2 4 tinics by thc >,car20 10 and thc
pbrccntasc of pcoplc bclow thc po\crt! linc can bc brought bclow 20% If therc
is an invcstmcnt ralc of 30'%,and a gro\\lh ratc of 7-X% ovcr thc ncxt IO-15 \'cdrs.
pcr capita incomc can bc trcblcd and thc demographic threat Lcpt undcr check
3.23
The reduction in' Goicrnrncnt will ha\c to bc achic\.ed through
dismantling of the cxccssive controls. disinvcstnicnt in the public sector,
corporatisation of departmental undertakings, privatisation and contracting out of
many services that arc presently bcing performed dircctl!, by Governrncnt.
Government's role will bc morc in evolving thc policy of govcmancc and less in the
actual governance itself. Most Goiwnmcnt dcpartrncnts will havc to function as
facilitators rather than inhibitors of growth. New regulations will havc to bc
c\,olved and enforced so as to provide a Icvcl playing ficld as between the pub1:c
and private secior enterprises, as also bctivccn domcstic and foreign companies.
The admrnistered price mechanisms will ha\c to be rcplaced'by mechanisms based
on market-determined prices.
3 24
A major thrust of Gowmmcnt initiatives w i l l have to be in the field
of poverty alleviation Although thcrc arc a number of anti-povcrty schemes in
existence, a much bctter dclilwy s!stcrn nccds to bc dcviscd The multiplicity of
the existing programmes \ \ i l l ha\c to bc curbed Thcrc is nccd for higher
mvestmmts m the fields of pninaq. cducation. basic health care. rural roads. water
supply, sanitation, slum mipro\ cment ctc
Thus the cconomic sccnario of thc next dccadc \id1 most probably
3 25
rcquirc the following initiati\rs
An iii\*cstnientrntc of 30% and a rate of growth of GDP by 6 to,
8OA
Hesrduol role
of.Yfa&
3 26
Thc residual role of the State will hale to be confincd to ~lic
following areas-
As
In p o ~ c r t yalleviation programmes
3.27
Thus when \ve.visualize the national scene as it is likely to emcrgc
by the year 20 10, there are some discernible trends. The fundamental task I S to
keep the nation intact against all its enemies, internal and external. We ha\c to
fuse the different classes, castes and communities into a unified band of sccular
citizens. And India has to achieve a faster rate of economic growth with the
private and public sector working in tandem.
I
hitroductioti
INTRODUCTION
41
Hole o/Slare
Recent Change.$
4.3
Recent decades havc sccn a shift towards a rcduccd role for thc
Government in all countries. Thatcherism in U.K. and Reaganomics in USA. tricd
to pull out the State from the morass of over-involvemcnt. The decline of
Communism in Eastern Europc has furthered thc trcnd towards economic
libcralisation and disinvestment in public stxior cntcrpriscs. Thus it is no longer
always popular to be a lcftist or to advocatc nationalisation as tlic panacca for all
ills.
7hz itiifiati
4.4
India could not hnvc rcmaincd unaffcctcd by thcsc ,global trends
But it was really the dcep economic crisis of I90 I which pushcd us on to a ncw
onlcxt
95
(9
(ii)
(iii)
tiv)
(v)
(vi)
(vii)
National sesurity
International relations
Law and order
Management of economy at macro level
Setting up of infrastructure
Social services
Programmes for disadvantaged sections
4.6
At thc sanie time, it is recognised that there arc functions currcntlv
performed by Government which ought to be given up. Direct participation in
manufacturing, mining qnd cconomic services and direct control of cconomic
activity in the private sector are two such major areas. Many countries have
&vested themselves of public sector enterprises which could be better run in the
private sector in the areas of coal, steel, fertilizers, air, rail and road transport,
tourism. hoteliering, banking, insurance, and so on. Some countries have turned
to the private sector wen in the tradtionally super-sensitive areas of atomic energ?.
space and defence production. Where some activities have been retaincd in
Government. they have becn hived off into separate autonomous agcncies with
independence of functioning.
Slate It1 relalion
toprivoie sector
4.7
The nature of Goverhment regulation of cconomic activit). has
undergone a major change. Governments no longer insist on issue of licences and
permits for setting up of new industrlal units or expansion of esisting ones. It is
considered Lviser to set up autonomous regulatory agencies Lvith quasi-judicial
powers, in order to ensure that the functioning of private units is regulated in thc
social interest.
I
~~
'The yuesrion of
jurisdiction
4.8
In the Indian context, we have to also examine whether within the
overall parameters of what the State should directly do, a particular itcm should bc
within the jurisdiction of the Central or State Governments or the third tier of
Govemmcnt that is now bang established at the level of the urban local body or thc
village panchayat.
Federalism
49
When the Indian Constitution was initially framed, it was intcnded
to be a federal polity with a unitary bias During the period 1950-90, thc unitan
bias got a tremendous boost, owng to Lhc fear that thc country would othcntisc bc
broken mto fragments due to strong centrifugal forces After 1967. u hen thc first
Sanyukta Vidhayak Dal ministries were formed in the States. right through thc
pcnod 1977- 1980 when the Janata Dal was in office, the opposite trend of Statcs
asking for greater powers was also set in motion Today, ~vhcnthe Ccntraj
: 96
Sel/-gowming
Institutinns .
4.12
Secondly, self-governing institutions . where the people
themselves take over the functions of the State would have to be encouraged,
sustained and nurtured. These would include municipal bodies, panchayats.
cooperatives, voluntary' organisations and the like. Political and economic
authority would necessarily have to be delegated to them. . Politicians .and
bureaucfats,who have trrsdltionally looked at these organisations with contempt or
disgust, would have to willingly share power with them.
The Cen:re's
Preserve
4.13
Whatever is then lcA with thc Ccntrat Govcrnment as its legitimate
preserve would need to be further rationalized in the following manner :
97
4.14
slrncmm
All this has widc-ranging implications for thc way the Ccntral
An .4ltered Role
(ii)
(iii)
4.1j
98
5
THE PRESENT STRUCI'URE
Structure of
public services
Recruiment
52
There are certain distinguishing features of the public scfvices
Recruitmcnt is generally made by open competitive examinations conducted by
tndependent bodes hke the Umon Public Senwe Comrmssion, Subordinate Savicc
Comrmssions, Service Selection Boards etc The p d u r e s are open, transparent
and generally trouble-free We have a high degrec of fairness and objectivity in
selection to the public services
Constitutional
powers
5.3
The public servants are authorities under the Constitution and the
law of the land. They derive their power and authority from Articles 109 to 3 13.
of the Constitutionand various-Acts, Rules, Regulations and notification$;~aIlof
which have a legal sanctity. The exercise of such authority is subject to scruthf
by a number of institutions. The legality can be questi&ed in a court of law; the
propriety can be challenged by the Comptrolter and Auditor General; the
contribution to public welfare can be debated in Parliament and its many
Committees; the iflqpty aspcct can be probed by various vigilance organisations,
and an indepcndcnt press performs a vigorous watchdog role. Thus all the
institutions that arc prcrequisites for an independent, fair-minded, honest, devoted
public service arc in place.
51
1
Complaints of h e
public
PUBLIC IMPRESSIONS
S1.W
5.5
Thcrc is a gcncral imprcssion that thc rrbsolutc silt of tlic
burcaucrrrcy is ovcrgrown bcyond what is ftiiidanicntally iieccsscln. It is oftcn
rcfcrrcd to as bcing "bloatcd". It is also fclt that the ;iunibcrs arc iiicrcasiiig at a
rapid pace. with scant regard for thc work-load. Pcoplc also spcak of tlic
burcaucricy being top-hcavy
t'rodrcstl\?~v
56
Not only are public servants pcrccivcd to be too many in numbcr.
it is also believed that they do not contribute to thc gross domestic product Public
scwants are alleged to invanably come late to office,spend a large part of the day
in sipping tea, smoklng and indulging in gossip. and leave officc carly
Consequently, productivity is said to be abysmally low, estimates of thcir actual
\\orking hours ranging from onc to two and a half hours in a da?
Accounfabihy
5.7
It is felt that bureaucrats are a law unto themselves. Thcy hide
behinds mountains of paper, maintain uncallcd for secrccy in their dealings with
public issues, takc surreptitious decisions for considerations that arc not always
spclt out on paper, and arc amuntable to no one. They havc lifc-timc contracts of
service which cannot be cut shori on any ground, dcfendcd as thcy arc by thc
safeguardsunder b c l e 3 1 1 of the Constitution. Their misdecds are ncver found
out. Ifacposed, they take refuge behind the protcctivc wall of collcctivc dccisionmaking in committees, which cannot be brought to bdok.
Inrrgriy
. -
The most serious charge levelled against thcm is that they lack
5.8
integrity and honesty. llus t h q are alleged to lack not merely in the scnsc that they
accept money or rewards for the decisions they take as public scnants in thc
exercisc of thcir sovereign powers, but also in the larger sense of not maintaining
a harmony between their thoughts, words and deeds. Many scams arc bcing
uncovered every day and evidence unearthed of public scnants not only conniving
at corruption but being the beneficiaries of the systcm themselves.
59
If one speaks to public servants, they have a different story to tell
They feel that thar tasks have become increasingly complex and important over the
years Inha used to be a comparatively smpler semi-feudal society that had
remained largely static and unchanged over centuries It had been described
variously as 'the mtinent of Circe' or 'an area of darkness' Suddenly it has becn
transformed mto a nation wth 'a million muhnies'. The disadvantaged sections of
society - women, backward classes, scheduled castes and tribes. dalits, minorities,
the poor, the handicapped -have woken up to the,, ;@r Everywhere there are
struggles and these have got to be resolved peacefully, productively and
meaningfully
5.10
The increasein the size of the work-forcehas not unfortunately kept
pace with the workload, the bureaucrats .feel. There arc unnecessary hurdles on
creation of posts and illogical across-the-board cuts in numbers. The result is
delay, inefliciency and corruption
S ~ J I ~ Ili*veh
W
5 \I
The public servants fcel victimid by thc systcm which has pcggcd
their salaries at very low levels compared to (he public and privatc enterprises Thc
r a n t cnby of multi-nationals and NRI-owned companies in the Indian market has
100
f d x r dmpcncd that cnhsiasm, as thcy find lhcir own ncvt gcncration drawing
salancs which bcar no rclauaiship at all with their o\vn pctty wages Thcy arc also
rcscntful of the fact that Pay Commissions arc sct up at intcrvals of dccadcs and
that thae is only pmal ncutralisatm of the nsc in cost of living, which means that
thcy are bcing subjccted to a gradual and sustained proccss of impovcnshqmt
Itltegr;&
5 12
Many public scrvants fccl that only a small pcrccntage of lhem me
cormpt, but thc),are all tarrcd with the same brush. Thcy would like Govemmcnt
dtake s@daction agahst such miscreants, so that the general image of the public
servant is not sullied. They feel that they are actually accountable to a host of
agencies and, in fad, many of thcm havc stopped taking decisions owing to the fear
that any decision taken by thcm is liablc to be misconstmcd and misintcrpnted.
I
1
A BALANCED APPRECIATION
Gap in
perceptions
5 13
There is a yawning chasm betwcen thc public perception of the
bureaucracy and its self-imagc. Both views arc rathcr exaggerated and the reality
lics somewhere in thc middle.
Achievements
5.14
The achievements of the public services are laudable. If wc have
been able to govern a country which is more of a sub-continent, with so many
elements of religion, caste, communiq, language or region that can divide, some
credit should go to the bureaucrats too. Our scientists have worked wonders in the
fields of space, agricultural production, atomic energy, defence production,
electronics, computer software and so on. Our cngincers have built roads,
high\va>s,buildings, dams, factories and otha complicated structures. Our doctors
havc eliminated a number of diseascs and lengthened the life-span of each citizen.
Our dplomats have implemented a fearless and independent foreign policy which
has steered us clear of the power blocs. Our soldiers and policemen have defendcd
the'integrity oi'ihe nation. Our industrial workers have shown wonderful results
in-numerous fields: On the .whole, India's ovcrall progress spanning the last half
a c e n w , whle sustaiung a vibrant democracy, an independent judiciary and a free
press, is not a mean achievement.
Failures
5 15
We could have done better. We should have loosened controls
over the private sector We should have opened out into the global market We
should havc resorted to cconomic liberalisation Whatever steps we have taken in
the last five years could have been timed for the early eighties Even at present,
there are areas of public sector disinvestment, dismantling of tariff bamers,
bringing down of rates of corporate taxation and interest rates, nghtsizing of
manpowr, controls over industry and trade at State Government le~elctc where
wc arc still dragging our fixt Part of the reasod i s the disinclination of the
political executive to let go the levers of power, the unwillingness of the local
industry to face global competition and the reluctance of the trade unions to
come to terms with the new environment. But the bureaucracy has also to share
pan of thc blame
5.10
With rcgard to the SIX ofthc public SCTVICCS. while 11IS tmc that the
numbcrs havc rlseii sharply Goni 29.82 lakhs in I97 1 to 4 1 182 lakhs in 1994 as far
as cn 111;uiCentral Government cmployms arc conccmcd. there is a visible trend
towards slowing down ofthe annual increase, over the last 15 years. Various
nxxsurcs taka1 by Govcnimcnt arc rcsponsibl~for this. I n I'aci. thc otdy scgnicnt
which has sccn substantial incrcasc in numbcrs in rcccnt vcars is that of Ccntral
policc organisations and hcrc thc rcasons arc known. Thc cxppditurc on pay and
dllowanccs of Central Governmcnt cmployccs as a pcrccntagc of thc total rcvcnuc
cspem$turc.of thc Central Government has also mmc down from 33.5 in 1960-6 1
1028.3 in 1970-71, 19.1in 1980-81 and '13.6 in 1993-94. This is mostlybccausc
of the tremcndous increase in the total revenue expcnditurc and thcreforc thc
pcrcentagcfigyre may not give us a realistic picture. Be that as it may, there is no
doubt in our mind that there is a substantial scope for an across-thc-board cut in
numbers and w are makingour recommendationson this aspect in a later chapter.
5 . I7
Producitvi~
Accouiiiabilir).
iniegriy
5.19
Integrity has never been a strong point of the bureaucracy in India
and the situation has definitely worsened in recent years. The time is ripe for
drastic steps to counter comption, which has assumed cancerous proportions in
the body politic.
Salary Levels
5.20
5.18
Jniportmct
5 21
102
Needfor bes/
brains
They provide inputs to the maintenance of the macroeconomic equilibrhm, by controlling the total money supply,
keeping inflation under chcck, preventing the dumping of goods by
foreign competitors, taking steps to rctain a. positive balance of
payments, adopting a national policy on manpower-rclated issues
and so on.
They are the ones wedded to the task of defending the unity
and integrity of the country against recalcitrant neighbours and
misguided internal saboteurs. They promote peace, stability and
t
no mnomic, social, political or creativc
tranquillity, ~ i t h o uwhich
activity can ever flourish.
5.22
5.23
We have divided our approach to the problem of the public servants
into four segments.
Eflciency
5.24.
Iti
adnrint.rtration
5 25
Thcn \\c looh at ways and nicans of rcstructuring thc Govcrnmcnt
Thc uorh mcthods and uork cnvironmcnt \st11 nccd to hc drastically changcd
Dcviccs likc dclaycring ha\ c to bc innovatcd so that tlicrc is a niarkcd iiicrcasc i n
thc producti\ it! of Govcmriiciit cmployccs This \vill in\ olvc automation and
reduction of papcrnork Thcrc has to'bc grcatcr opcnncss i n Govcrnmcnt's
functiorung. and a more broad-based autonomy and dclcgation of powcrs to loner
formations Grievancc redrcssal has to be quick and forthright, and a rcsponsii e
system of management information has to bc devcloped
Human resource
dttvelopmmt
5 26
In Section 111, wc hscuss the various mcthods of human rcsourcc
dcvclopment Starting with recruitment and retention, we csplorc thc possibility
of introducing some mobility between Government and othcr sectors We also looh
at the potential of contractual employment in Govcrnmcnt Training is an
important facet of manpower development, while wc try to find out hot!
performance apprmd can become as objective and impartial as possiblc We also
review the promotion policy and other methods by uhich motivation levcls of
employees can be improved We try to develop mcchanisms to ensure a grcatcr
degrce of accountability and suggest some innocativc stcps on transfer polic)
Size of
5 27
In Section IV, we have taken up thc crucial question of optimising
the size of the Government machinery We first considcr thc organized services
and then take major departments of railways, postal and tclecommunication
services, central policc organisations and armed forces for detailed consideration
Gowrnnietil
Conclusion
5 28
It is only after dwussing these crucial aspects of how wc can hat c
a competent, professional, productive, motivated band of pcople in the employment
of the Government that we move to the other major task of devising an appropriatc
structure of Compensation packages for them. We 'want to emphasize that our
report should be taken as a single document and the inter-connectedness of
the various elements of the report should be borne in mind while taking
individual decisions In particular, the size of the bureaucracy has to come dourn
drastically and the public sewant has to be much morc productivc and accountable
than he is today
104 :
HISTORICAL PERSPECTIVE
It cannot be said that the realisahon of the critical importance of thc
public service to the ovaall development of the country is rccent. There have been
several attempts at administrative reforms, starting from the Secretariat
Reorganisation Committee, which submitted its repofi in August, 1947. The
Committee suggested various steps fix adrmnistrative reorganisation in the context
of British withdrawal from India.
6.1
6.2
In 1949, Gopalaswami Ayyangar submitted a Report on
Reorganisation of the Machinery of Government. Besides suggesting the
regrouping of Ministries, he advocated the establishment of an Organisation and
Methods Division to keep a continuous watch over the performance of he
administrative system and to improve the standards of efficiency therein.
6.3
In 1950, the Constitution of India came into force. It was by itself
a fundamental instrument of administrative reforms. It laid the ground rules
guiding the relationship betwcen the citizens and the State, and the State and the
civil servants.
6.4
In 1951, A.D. Gorwala submitted his Report on Public
Adrmnistration in which he made a number of recommendations particularly with
regard to introduction of Organisation and Methohs procedures in Government
dcparlments
Two reports which had a significant impact \ w e Paul H.Appleby's
'Public Administration in India f Report of a.Survey, 1953' and "Re-examination
of India's Administrative System. 1956". As onc of the outcomes of his 1953
Report, an 0 & M division was set up in l954 in the Cabinet Sccretariat. Thc
attempt here was to effcct imprOvcmcnt in papcr management through
manualisation and a system of inspcctions.
6.5
105
Second Pay
Commission
6.6
The Second Pay Commission ( 1959) recommended the pooling of
the Secretanat and the attached offices into a single headquarters organisauon, as
also the establishmentof a Whitley Council type of machinery for negotiation and
settlement of disputes
Sonlhanam
Committee
67
In 1964, the Santhanam Committee looked into the problem of
corruption. Its reoammendations led to the establishment of the Central Vigilance
Commission and amendment of the conduct rules.
Department of
Administrative
Rr/ons
Administrative
Reforms
69
In 1966, Government set up the Admhstrative Reforms
Commission under the chairmanship of Shri Morarji Desa. From 1966 to 1970,
the Commission submitted 20 reports which led to many major changes. The
Departmentof Personnel was set up, the role of the Department of Administrative
Reforms was redefined, new systems of Secretariat working mcludmg the desk
officer system were introduced, performance budgetmg was adopted by all
developmental ministries, financial and adn)inistrativepowers were delegated to
the maximum extent and the Bureau of Public Enterprises was strengthened
Commission
6.8
6.10
.Vo1tonal Police
Commision
Ministry of
Personnel
6.11
In 1985, a MI-fledgedMinistry of Personnel, Public Gnevances and
Pensions was set up directly under the Prime Minister, and a new Ministry of
Programme Implementation was established to improve the overall economic
management of the country.
Jha (.'ommiision
6.12
The Economic Adnunistrative Reforms Commission under L.K.Jha
( 1983) advocated the &to mowe towards accountability in the positive sense, so
that greater importance was given to performance than mere adherence to rules and
procedures. The amcept of Management by Objectives was introduced in the form
of Annual Action Plans for Ministries and Departments and Memoranda of
Understandingwith Public Sector Undutalungs. Similarly, an on line monitoring
of managerial performance in infrirr;tructure sectors was initiated.
Lessortsjkm h e
6.13
Although the many reforms introduced in the last 50 years have
borne some fruit, thae has been a tendency for dymmc initiatives to peter out once
the prime movers &hind $em were removed. Thus the systems of performance
budgeting, annual action plan, management by objectives, organisation and
methods, memorandum of understanding etc., which started off as highly
Past
innovative responsesto systemic stasis, got convertad into routhe, ritual exercises
bereft of any meaning. Orgamationalreforms have tended to be more in form than
in real substance, leaving little impact on the efficiency of the system. What has
been lacking is a congruence between strategy, structure and substance Indian
cxperimcnts with r e f m do not get institutionalisod, they often fade awav with thc
pcrsonalitics who introduced them.
I06
6. I4
The Commission had thc opportunity to peruse the excellent
publications titled "Current Good Practices and New Developments in.Public
Service Management'' brought out by the Commonwealth Secretariat idrespest of
different Commonwealth countries. It also had the opportun~tyof visiting the
Un$d Kmgdom, Canada, Malaysia and New Zealand in order to have a first-hand
interaction with those cohected with the public service reforms. Some of the
initiatives taken .in other countries have been discussed in the s u d n g
paragraphs.
6 I5
The U.K. Civil Service consists of over half a million people. The
most notable attempt to reform the Service was the Report of the Fulton
Committee,but the adrmnistrativeculture still remained bureaucratic. In 1979, the
Conservative Government led bv Margeret Thatcher sought to reduce public
expenditure in order to reduce direct taxation. The view was taken thatthe U.K
was over-governed and it would be in everyonc's interest for Government to play
a smaller role. This started the drive for Civil Service reforms.
Eficiency Unit
6.16
In .1979,the Prime Minister's Efficiency Unit was created and it has
fipically comprised two civil servants and three seconded .industrialists with a
support staff of three. Thc Unit developed a methodology based on Scrutiny
Exercises on narrowly focused and short-term studies in order to reduce
expenditure and improve efficiency of a department. It is not responsible for
conducting screening exercises; it is responsible for ensuring that such exercises
are conducted by the departments themselves. There are twenty exercises done
every year and these are stated to have produced savings of Pounds 200 to Pounds
300 million annually.
Financial
Management
Initiative
Next Steps
Citizens'Charter
6 17
6.18
107
R e f m s I ~ New
I
Zealand
6.21
In New Zealand, reforms were initiated by the Government el@ted
in mid - 1984. Their key overall concepts were transparency and consistency, and
these translated into the following organising principles for the reforms process:
I.qislatiinr
6.22
pctsseli
legislaiion:
Structuml
6.23
The State Owned Enterprises Act, I986 which provided the basis
for converting the old tradjng departments and ajrporahns into
businesses along private sector lines
Tile State Sector Act, 1988 which made dcprutmcntal chief
executives fully accountabk for managing W
i OrgMiSations
eiliciemtly and effectively
The Public Finance Act, 1989 which changed the basis of state
sector financial management &om a focus on inputs to a focus 011
outputs (the relevance and efftctivcncss of actual products) and
outcomes(the OYQBHd t s ofthe outputs from the Government's
point of view).
The reforms process had fout main stages as under:
nfms
JZ
Rcvicw of (he
Progrommc
6.24
pmcesscs of the State, the liberation of managers from central input coatrols, and
the new f i i d management and accounting systems are revolutionising the way
in which departments and oficials work. New Zealand's economy has recovered,
its audit rating has been regraded upwards, inflation has been reduced to less than
two percent and employment has been growing steadily. The 1993 World
109
6.25
The New Zcaland c x p e r i suggests
~
that thcrc arc seven kcy
elements to a successful reforms process. Thcsc arc:
AdmhiShdivr
refbms in
Malaysia
Vision 2020
6.26
In Malaysia, the Government established the Development
Admikmtion unit (DAU) as a centre for administrative reforms in 1966 and six
years later the National Institute of Public Administration (INTAN) was set up to
develop slulls and expert~seamong public sector employees. The Malaysian
Administrative ModemiLabion and Management Planning Unit (MAMPU) was set
up in 1977 under the Prime Minister's Depment, to initiate administrative
changes and innovations to the Public Service Some of the important measures
introduced during the eighties included the downsizing of the Public Service
through privatizaticm, the mtroduction of the Malliysian Incorporated Concept and
the inculcation of positive values and work ethics. Efforts were also made to
improve the quality of counter services as also to streamline systems and
procedures.
6.27
In Februq 1991, the Prime Minister of Malaysia unveiled his
Vhm 2020, wh~chstatcs tht ~ t i aspiration
d
to attain a l l l y industrialid and
developednation status within the next three decades. This vision can be achieved
only if t h m is an excellent Public Service to meet the challenges of rapid
6.28
In November, 1929 the Government launched a nation-wide
Excellent Work Culture Movement which stresses quality as the foundation for
success. The Public Service adopted Total Quality Management in order to create
customcr-fmsedorg&ations capable of delivering quality outputs and services
to customers. Agencies were advised to fonn Quality Control Circles as an
effkctivc mechanism to mobilise expertise, experience and employee creativity in
110
6.29
The Public Savice placcs equal emphasis on productivity. The
Govcmment has identified eight critical factors. which influence productivity.
Thcsc arc manpowcf, systans and procedures, organisation structure, mariagemcnt
style, wadi cnvu-4
technology, materials and capital cquipmcnt. Productivity
measuremen(and cvaluation is also part of the improvemcnt effort. Various steps
havc been taken to introduce better file management, work simplification, form
design, officc automation, information technology, etc.
6.30
The professicinalism of &e civil servant has been further.enhanced
with the introduction of the New Remuneration System. This involves major
changes to thc cirganisationalstnrcbure,remuneration and reward system, and terms
of service. This has resulted in mating a cadre of innovative, crcativc and talented
cmplayeeswho have readily embracod B work culture that cmphasiscs performance,
quality and productivity.
.Slrntrgies/or
S14CCt.U
(1.3 1
Pohrrral support
6.32
A major reason for success is the personal interest shown by
the top political leadership, especially the Prime Ministers of Malaysia who havc
bccn the lcading propcllants of reforms.
P i 4 hlic Sewice
6.33
Thc starting point for thc Govcrnmcnt of Canada's joumq on the
road to administrativc d o r m is the process cntitlcd "Public Service 2000". This
was m d y the effort of thc federal public service itself. Although it had political
intcrcst and support. it was not closely dircctcd and actiwAy-managedby thc
politicians. Thus it docs not bear thc imprint of a particular political agenda as in
somc ohcr countrics.
2000
A;:I. 'l'lrert1c.v
6.34
Public Scnicc 2000 stakcd out somc kcy thcmcs. Thc Public
Scnicc must slrivc to pro\.idc a high quality smice and incrcasc clicnt satisfaction.
Thc Public Scnicc must bccon~cmorc cngagcd, morc opcn, morc visiblc and morc
consultative. Public Scmicc managcrs must crcatc organisations in which p p l c
morc hcavily in thc dcvclopmcnt of its pcoplc. It must rcducc thc burdcn of
intcmal controls so that intelligcnt, wcll-motivatcd managcrs havc gt-catcr latitudc
to improvc service quality and client satisbction.
6.35
Among thc initiativcs to improve, s e n k c quality IS the
cstablishmcnt of an intcrdepartmcntal-quality network and an attempt led by the
Treasury to cstablisb scrvicc standards for all dcpartmcnts. The rcduction of
central agency constraints is being addrcsscd by incrcased dclcgation of authority
for human resource managcmcnt to dcpanmcnts, and for financial managcmcnt
through the mechanism of Operating Budgcts and increnscd flexibility at the end
of thc fiscal year. Special Operating Agencies have been crcated to givc scrvicc
units within depaRments direct responsibility for results and increascd managerial
flexibility. Even in an era of fiscal constraint, thc Government has bccn increasing
its investment in the peoplc who constitutc the public scrvice. A new spccial
operating agency called Training & Development Canada has been created and the
Canadian Centre for Management Devclopment established to focus on thc needs
of theexecutive level. Emplaylng new mformation tcchnology is emerging as a kc!
way of achieving objectivcs such as improving scrvicc and reducing cost.
6.36 There are several reasons to believe that the process of public servicc
r e f m will continue for many years. First, there is a major economic problem
that gives it urgency. As a result of very substantial budgetq dcficits in the last
two decades, Canada finds itself in the-uncomfortableposition of being a major
international debtor. Thus there is a demand for major rcductions in'thc operating
cost of thc public sector. Secondly, Canada has always been in the forefront of
advances in communicationstechnology. Thc Canadian public sector will draw
upon this expertise to apply leading-cdgc information and communication
tcchnology to the pmVision of public services. The final factor is the commitment
of public servants to reform. The values that Public Service 2000 has espoused
arc taking root within thc culturc of the public servicc in Canada. at a11 Icvcls of
govmcnt.
ESTABLISH'ING THE NEED
6.37
Looking at thc expericncc clsewhcrc. it is apparcnt that thcrc is a
world-widcmovement for public scrvicc rcfom. Wc havc scen that thcir succcss
dcpendcd initially on thc firm comitmcnt to reforms at the highest lcvcl. Such
rcfm can come about in India only whci therc is an apprdciation that launching
an cfficicncy programme is critical for thc socio-economic dcvclopmcnt of thc
countq. This realitation has to come at the highest political level and nothing
short of a personal commitment of the Prime Minister himself will do. It has
also to be r e a l i d that this is not a political issue. Thus a national consensus necds
to be developed, cutting across party lines, so that the process of reform once
initiated is not allowed to peter out rnercly because of a chnngc of Govcrnmcnt.
0 3
Once thc ovcrall commibncnt is Iorthcoming. what is thcn rcquircd
is an apparatus which will spcarhcad thc rcforms and constantly monitor it. For
this purposc, thc following stcps nccd to be takcn .
I12
Approach
reforms
10
6.39
With this apparatus in position, a step-by-stcp approach to public
senicc reforms should be adopted as follows.:
113
.il time-tahlr.fw
rictioti
(1.40
Abovc all: theri: is need for a dcmanding but rcalistic timc-tablc fcif
achieving the major objectivcs of thc dorm process. There will havc to bc some
short-circuiting of procedwes, some ruthlessness in implemcntation and some
strategy for managemtnt ctf change. Th~swill to the utmost Govcmmcnt's skills
in dealing with the opposition parties, thc unions and associations of Govcrnmcnt
cmployces, the press and thc general public. But if therc is a basic sinccrity of
purpose and a strong determination at the v t q topl.tangiblc rcsul1s can bc show
in two to threc years.
114:
Hmtoriul
brrck~md
7.2
t'ro&ahon
qfdefarmmrt
74
7.5
All this is a result of confustd and woolly thinking. Instead of only
looking for political slogans or how new slots can be created for ministers and
secretaries, we have to start by asking ourselves the following basic questions
about any pdcular activity :
76
If a Group of Three, who combine in themselves objectivity,
knowledge and dynamism, I d at the Central Government with the above
questicks in their mind, the answers will stare them in the face.
CONSULTANCY REPORT
Classttcatisrr
oJGovmumrpf
ofices
7.7
The report of the Tata Consultancy Services have suggested a
three-fold classification of Government offices, on the basis of the role
performed by them. They can be Core, Participatory or Auxiliary.
core.
The oflices under this category perform roles which are given
by the Constitution,which Cownment has to perform at all times, which are
governed by societal expectations and where the Government has exclusive
responsibility to deliver social goods and services. Exampks are : Atomic
Energy, Science and Technology,Space, Defence, External Affairs, Furance,
Forests, Home, Law, Planning and Rural Development.
.\
ParticiDaton; .
Thesecover a r e s !xve fhc Government has both a
policy making and enforcement role but private and public sectors are
allowed to participate in dclivcry of goods. w i v w tlic Cavernment has
direct
responsibilityof ensuring a desited kvel of delivery of services t!rough
or indirect intervention in the sectoral markets an& industry, and where
Government has a responsibility towards production and trading oi goods
and services. *Thesemay include Coal, Fhcation. Hcalth a d Family Welfare.
Energy, Petroleum, Stee!. Chermcals and Fertilizers, Industr)., Information and
Broadcasting. Railwa:. s. Surface Transport. Telecommutucatmns. Posts, Urban
Affairs and Civil Aviatio;!
Au,uilian.
Here the Government has only policy making
responsibility but not for delivery of goods and services, or Government may
enter for regulation of markets, trade practices etc Examples are AI? and
Culture. Food Processing, Sports, Tourism, Consumer Affairs. Labour, Water
Resources. Wastcland Dew clopment and Textiles
7.8
Thc above classificatimis highly arbitrary and simplistic, and there
is scope for endless refinement both of the definitions as well as the list of
Ministrieswvhich fall unck om or the othcfcattgory. The main point to appreciate
is the need to undertake such an excrcisC so as to be clear about what has to be
done by the Central Gowmment itself, where it has to regulate and participate and
where it need act only as policy maker and arbitrator.
7.9
Even within the Con category, the functional goals nctd to be
sharpened fiuther. Let us take defence which is definitely one of the key functions
of the Central Govemkent. We are I& with a lingering impression that the s ? a t
perception as perceived by the Government as a whole after looking at the political,
diplomatic,. military, strategic and economic aspects has not been clearly
articulated, to enable the armed forces to develop a long-term manpower policy
perspective. ' h s is a blatant exampleof fuzziness in our perception of functional
goals. Such examples can be multiplied.
7.10
At the leiel of individual organisation, what is required is a
mission orientation which provides clear and understandable goals fully
owned by the senior management and accepted by the operational staff. The
purpose of establishing a mission orientaticn is to :
7.11
117:
7.12
A study of the experience of other countries underlines the
importanceof redefining functional goals, both of Government as a whole as also
of each g o v m t a l organisation in particular. The wncept of mission statement
is an effective tool in this process and is recommended for adoption.
.8 I
The rightsizingof Government and the shucturd reform of the
bureaucracy can gcc offto a flying start if the Government decides to privatise both
public sector undertakings as also departmental enterprises within a strict timeframe:while at the same time mtracting out many of its own activities to the
private sector.
8.2
Inteinatid experience suggests that the m a s of privatisation and
contracting out of services are very fertile and yeld a rich harvest k terms of a
diminished governmental presence in the life of a ci~zen,a reduction in the
draining out of public funds in a vain endeavour to bolster sick public enterprises,
improved and more cost.effective sentices to customs and better value for money.
United
Kingdom
8.3
In the United Kingdom, the Government departments use markettesting to assess whether the services for which they are responsible can best be
delivered in the public sector or the private sector. The objective is to promote fair
and open competition and find the supplier of a service whose combination of
price, quality and other factors offers the greatest value for money in the long tern.
8.4
In general, activities which have been found to be particutarly
suitable for market-testing are of the following types :
resource intensive
relatively discrete
specialist or support services
subject to fluctuating work patterns
subject to a quickly changing market
119
What is the full cost of the level of senice presently provided and
that which is considercd necessary '?
8.7
The attempt is to define thc user-nccd .for the' service and to
establish the cost of the existing service. A specification for ths service is drawn
up and this is part of the illvitation to tender. The providcrs of the current sa-vicc
are encoufaged to submit anin-house bid. E\.entually, the line management decides
on whether the service should be retained in-house or contracted out.
Sew Zealand
8.8.
Jn New Zzaland, tile mechanism developed to facilitate the
divestiture of the state trading agencies was the State O\\ned Enterprim Act of
1986. The process of economic liberalisation led to a major restructuring of the
public sector, first though corporatisaxion and in many instances subsequFntly
through privatisation. Government owned enterpriscs in fields such as banking.
forest?, insurancc. transport. communications and broadcasting were trmsfomed
into corporatc cntitics and were later fully privatiscd.
8.9
Thc. move LO corporatisc organisations was consistent with thc
Go\!ernment objective to open up many sectors of thc economy to internal and
esternal competition. State-owmcd enterprises wverc now statutorily required to
operate as successful commercial busincss and cmulatc thc cficicncy and
profitability of their private sector countcrparts. If Ciovcmmcnt wantcd such an
cntcrprise to providc a non-commercial senicc. it had to contract to do so. Thcsc
cnwrpriscs w r e expected to fund their spending from unsubsidizcd private sector
capital sourccs and to pay taxes arid dividcnds
For thc pn\ atisation proccss. no standard formula was applied A
rangc of routcs and mcthods was adopted. dcpcnding on cmditions in the markcl
o
plxc. fiscal considcrations rud political factors The! tcndcd to follo\v t ~ routes
8 10
: 120:
8.11
The process of privatisation proved more controversial than
corporatisation. Particularly in the initial years, mistakes were made in
privatisation before the Government and the public service gained expenence. In
the privatisation of assets, as long as safeguards were installed, there was no
restriction on foreign ownership. Although most of the large scale privatisations
mvolving organisations such as Telecom, New Zealand Rail and Air New Zealand
have been completed, privatisation is an ongoing process.
Malaysia
8.12 .
The privatisation policy of Malaysia has been introduced in order
to relieve the administrative and financial burden of Government and to improve
efficiency and productivity. It was first announced in 1083 and the first stage
on of idonnation to the public. Guidelines on privatisation
consisted or.were published in 1985 and the Privatisntion Master Plan was launched in 199 1.
8.13
The privatisation pmgramme can be implemented in a number of
ways Theseare:
8.14
The planning of privatisation is done in the Economic Planning Unit
of the Prune Minister's Department and involves the idcntification of privatisation
candidates. In-depth studies are undertaken and these lead to two-year rolling
action-plans. An intdpartmental committee on privatisation discusses the plan
and, aftu h e approvalof the government, evaluates the various possible modes of
privatisation.
8.15
These are Government-initiatedprivatisation projects and therefore
But thac are also private sector-initiated proposals
subject to CompCLltive.-b
which are evaluated and if found to be auxqtable, b award is made by the ministry
concerned. Further, the private sector is allowed to initiate projects not yet
identified by Govenunent, provided that their proposals contain unique features by
: 121
8.17
In the light of the international experience as also the peculiar
genius of Indian institutions, a. comprehensive policy perspective for
Corporatisation,pivafislytioliand contracting out of services needs to be drawn up.
Some sporadic efforts have been made by individual departments but there has
been no conscious pol!cy thrust initiated and monitored at the highest levels of
Government. The general parameters of such a policy perspective could be the
following :
a)
Cornoratisation :
b)
: 122:
d)
Areas which should retain the mixed economv conceot. but with
zreater comDetition
e)
8.18
As far as pnvatisation is concerncd, this can also take a iariety of
* as
~ in
~ other
~ countries
~
~
routcs
-
Mainttmance ofrailway stations and colonies are being tricd out for
2rivatisation.
All flitweecatering in trains is being sourced out to private
contractors.
Printing of postal stationery has been partly privatiscd
A scheme of Licrnsed Postal Agencies esistd upto thc late cighties
but thcrc were complaints of misuse or authorisation and
(s)
(xi)
MES contracts out its building works and has started giving out
maintenance work also to private contractors.
8 20
8 21
Roie ol/h.odr
8.23
un:ons
steps have been taken totvards caporatisation, privatisation and contracting out of
scrvices in India, these have been ad hoc, unsystematic and halting. What is
required is a clear and comprehensive pblicy in this crucial area, so, 6s to
progressively reduce the role of the public sector in.the industrial an<
commercial activity of.the nation. There are bound to be hurdles on the way.
The ma^^. opposition will come from the trade unions and associatipns. They will
have to be handled with care and circumspection. There may be a need for n new
policy on the--formationof trade unions, on the pattern of what has been
attempted in otherxountries. Workers will also have to understand that in the
pcrspective of globalisation, WE have to compete or perish.
Needfor
Im"s~amn~
8.24
The other problcm \\odd be to keep the process of disinvestment
and privatisation as transparent as possible, so as to obviate the criticism'of
partisanship and malfcasancr:. Even in advanced countries these have attracted
virulent controversies and India can be no exception.
I25
VahJor
money
8.25
Lastly, we have to keep the public interest paramount in our minds.
Privatisation should not become a fad, as nationalisation had become at one
stage. We should choose the private sector, the public sector or a mix of the two,
according to the nature of the Conimodity or service lo be produced and the only
touchstone should be that the ultimate customer should get the best value for
his money on a long-term basis in as competitive a market as is humanly
possible.
INTRODUmION
.9.1
The entire machiripe of Government has got to be reinvented. This
4s a mammoth task. it is nat possible for us to go into thc details of the
9.2
We had 8 posts of Secretaries,18 deparlmentsand a total workforce
of 14.40 lllkhs in 1948. Todav. w e have 92 Secretaries, 79 departments and 2
workforce of more than 41 lakhs. No doubt, the work has expanded. but the
expansion of the Government is disproportionate to the increase ot workload.
There have bccn many attenipts at reforming the Central
9.3
Government. Some of these are :
CONSULTANCYSTUMES
WehadawsdadtwostudicsonrestructuringofthcGovanmcntto
IIT, Dclhi and Tata Cansuhrncy Services.9.4
IIT. &&I
95
The IIT, Deb identified the major objective of restructuring to be
goal achievement and mice oriatation, through flexibility and enicicncy. The
ns. g options involved interventions atthe level of situation, action and
process. At the level of s i t u t i o ~ 1 ,the physical environment, the operating
environment and the socio-cultufalcnvircnment was to be chmgcd. At the actor
level, bothsystemic and attituditdchanges\ w e required At the process level. the
9.6
For Phase 1; thc interventions found feasible at situation level were
: conducive physical worlung conditions; openness to environment; fedefalism;
systcin. At the actor level these were training for
,+layering;anddeckion-
~ct?lF=o/~e
9.7
The fidings of the study point towards a decision-oriented,
facilitative, flatter,fkxibk, Information Technology support@, participative
and elegant Government office effectively achieving goals with service and
client orientation.
7csshrdy
9.8
The TCS catqmzeci various Governmuit offices into three broad
types - Core, Partidpatory and Auxiliary. Based on the decision-malungmatrices
in these offices, the study concluded that one of the major changes in the
organisational structure was to reduce the levels in the hierarchy from nine
to seven. A flatterhierarchy would ensure speedy decision-makingand be able to
respond quickly to the demands of the environment.
9.9.
ChiefExdve
Senior Executive
Middle Executive
Junior Executive
Supervisory
Assistant
Suppodattendant
128
carccr groulh for the employees. Thus the hiaiuchial Icvcls wcrc delinked from
promotional gradcs
I9ecisimi-making
mare important
9ll
The study laid emphasis' on decision-makers rather than on
assistants It proposed that each section within a department should have just one
Assistant - level position. Decisions should be hastened. and files and papers
should be disposed of at the level to which they wcrc addressed
9.12
9.13
The TCS study considered restructuring in three streams. The fmt
was organisational structure. The second was a comprehensive human ~CSOU~CC
dcvelopmcnt system to achicvep t c r efficiency, responsiveness and productivity,
and to bring in sustainabilityin tbt Organisation The third concentrated on the two
major ofice systems -record management and dak system, ofice equipment,
information technology and wock environment.
9.14
In this chapter, wc shall wnmtrate on the friit stream viz.
organisatid mtructurhg in tht contextof the Ministries and Departments of the
Central Government.
L
The dime basic
qnestimis
OUR PROPOSALS
na be done
Government
: 129:
Number of
Ministries
9.20
9.2 1
The most major restructuring effort would be in determining
the size of a Department or Ministry. The genaal formula that we would like
to suggest in this regard is the follo\ving :
-.
9 22
Mmstnes have axtamorganisations or activities which may either
be an integral part of the Mmistq. or an attached or subordinate offkc Very
often, such organisations have no business to be in Government. They would
be much better managed if they were in the public sector, the cooperative
sector or as an autonomous body. jus: ene example d d 1 t!pc \\ill suficc to
clarify the point being made
9 23
I30
Top Executives
Senior Executives
Executives
Supervisory Staff
Supporting Staff
Auxiliary Staff
9 24
.Kt' cuicl
delaywing
Thus there will bc only six levels in the hierarchy. The TCS have
suggcsted that promotions to grades within a level should be for purposcs of
financial benefit, but need not havc any rclationship with a higher decision-making
level in the hierarchy. We have adaptcd thc TCS recommendation to provide for
itx Xssurcd Career Progression Schcme, by which all non-executive cadres will
receivc two financial upgradations on a tim-bound basis while executives will
bcnefit frqm three such financial upgradations. The ACP has been designed to
del ink hierarchy from financial upgradations, and should therefore help in
delayering of the Governmental set up.
ImljumpLig
25
Another method of quick disposal, which is quite rclatcd to
delaying, is known as level jumping. Here there is conscious attempt to bypass
runes in the hierarchy. As early as September, 1968 the Administrative Reforms
Commission recommended that there should be only two levels cif consideration
and decision bebw the Minster viz. (i) Undcr Secretary/ Deputy Secretary and (ii)
Joint Secre!ary/Additional SecretaqVSecretary. This observation led to
.iniplementat.ionof a scheme of dircct submission of cases by senior Assistaii!~to
Branch Officers in 1974. In 1978, thc schcmc got a push when it was said that 3
case should either be seen by an Undcr S c c r z t q or a Deputy Secretat)ilDirczto:
but.not b,.both. The cOncept of Icvcl jumping, though known in Governierit, has
not been effectively implemented so far. What is required% a firni iuideline
that at the executive level, the third level should be the last, 'where a decision
i s taken.
Desk Oflcer
9 26
-4major piece of organisational restructuring \\as the enunciation
of the Dcsk O f k e r concept. Thc attcmpt herc was to convcrt thc Centrid
Secretariat into an officer-oricntcd system. The Dcsk Officer systcm was
introduced in Jlmuary, 1973 in sclcctcd wings of Ministries wherc at Icast 4014 of
thc work related to strategic policy making, planning and problem sol\:ing. Each
desk comprised two officers of the rank of Under Secretary or Section Oficcr or
both. The Section Officer submitted cases dirkctly to the Deputy Secretop, while
Lhc Under Sccretq submitted his filcs dircct to the Joint Secretary. The idca was
to abolish the Section, which has too much of supporting staff in thc shape of
assistants, UDCs, LDCs, Dafthris, Peons ctc. Thc aim was to reduce the numtcr
of levcls by at least two, to reduce the accent on noting and to lay stress on oral
discussibn, to foster greater participation in and commitment to crganisational
goals among offers at the base of the Secretariat structure. Each desk was given
a wil-definedarea of functioning. SOs appointed as Dcsk Officers wcre allowcd
to suthenticatc orders and sanctions in thc namc of the Presidcnt and to dispose
cascs on their o\\n responsibility.
Cortccpt
131
Whyithasnot
hadway
9.27
Currently, there are 1816 Sections and 427 Desks in the
Govemmcnt of India. The Desk Officcf system has not made much headway due
to the following reasons :
Ad~n'concep'
Traitiing to
EXccUtlVC
Assistants
9.30
The training imparted to an Esccutive Assistant should bc such as
to enable him to discharged the skills of noting, drafting, filing, stenography,
typing, public relations, receiving telephone calls and visitors and s o on. The
I32
(?(lire.nstcnis
9 31
COORDINATING AGENCIES
i
Planning
Coniniission
9.33
Lastly, we come to the coordinating agencies in the Govcmmcnt.
The most gargantuan of these is fhe Planning Commission. There was probably
some justification fcx its size and range of authority when our objzctive \VBS a
centrally controlled economy on the Soviet pattern. Now that such centralized
planning models have been abandoned even in the country of t h e k birth and
we are moving towards an open, liberalised economy. w e 'have to
considerably reduce the size of the Planning Commission. Japanhas a small
Economic Planning Unit undcr thc Prime Minister's Office. .In OUT case, we can
have the Planning Commission as a separate entity wzh much more r e d u d
functions than at-present. It should be an advisory body performing an idea
generating role and providing alternatives before the national economy in a fast
changing and technology-driven world.
9.34
The Department of Programme Implementation also had a
coordinating and nionitorlng role at one time. Somewhcrc along the way, it has lost
its mqndatc It should be abolished.
9.36
The Cabinet Secretariat is officially charged ivith the task of
coordination and is geared for it. This position should bc recognised and the
Cabinet Secretary charged with the responsibility for ensuring coordination
at the bureaucratic level. There may be nced for somc anicndnient in the Rules
of Busincss to providc for certain matters to be resolvcd at the level of Secretaries
through the intcncntion of the Cabinet Secrctary, and at the level of Ministers
h u g h the intencntion of the Prime Minister. This will impart the necessary cdge
to both the offices, in kccping a k p on the governmental mkhinery, so that all
133
actions of Governmen: are secn to move in the same general dircction and in
mutual harmony.
CONCLUSION
9.37
We have providcd certain broad directions 011 the restructuring of
the Central Secretariat. Similar solutions uill also appl?. to attached and
suborhnate offices. It is our f e n a t hope that organisationid restructuring of thc
Governmental machinen. would Icad to a more cffcctive. iiiorc efficient and a
service-orientcd set-up.
:\nnese
- 9. I
S.SO DEP.-lRTMEKT(s) TO BE
SIEKGED
Department
Rcfornis
of
Adniiiiistrati\c
-roBE MERGED
Cabinet Secretariat
-I.
'5.
Department of Fertilizers
0.
Department of Health
Department of Educatio;i
Departnient of Food
I0
I!
135
i2.
~cpartmenlor urban E m p i o p t
and Povexty Alleviation
Department or usba D c v e l o p ~ t
13.
Department of Statistics
Department o t Planning
14.
I36
10
Inhorhrcttas
10.1
Today,the governmentoffice is sccn as a dusty,moth-eaten, h g y ,
papa-infestcd hovel chod<ful ofbabus, which is feudal in its atlook, hiefardtiical
in
antediluvian in its p d u r c s , dilatory in examination of issues and
Santivcin its ckalmgs with customers. Dcspite bang one of the largest ;Novidtrs
ofsuvica,thae is a axnplete i a c of
~ customcr orientation in various gavernmcnt
.,the common man v i m the govemmcnt functionaries
as exploiters m a c i l i t a t o r s or pmvidcrs. The reality has been changed
smcwhat on aocount of various measures taken by the government in the recent
past. However, the process of change has been tardy and much more reeds to be
done to improvethe existing work methods and work environment in government
Offrccs.
Three ypes 01
OfiClS
7ftc yresenf
scsmrio
10.2
137
Comparative
projle
10.4
W e c w t state of ~vocI<methods and work environment in most
of the State Govanments is similar to that existing in Central Government, public
sector mdemkln
. gs have effectedcertain changes in this field. Most public sector
offices today have an open layout h e r e i n modular partitions and modular office
units are extensively used. In the offices of the Reserve Bank of India, such an
open layout is being used where grade 'A' and ' B officers sit in the open space
along with the staff.
Ins~ructional
experience
10.5
In most of the countries where large scale administrative reforms
were effeaed, proper attention was paid towards establishment of streamlined work
methods and a conduciv:: work environment for the staff. In Malaysia, the open
office concept heralded closer supenision, congenial working atmosphere and
effectice communication and interaction. In the United Kingdom, the individual
departments were given flexibility to tailor their own systems of work methods
\ d u n the general fiamewvork. In New Zealand, the Chief Executives were given
complete m n t d over establishment of appropriate work methods and environment
so as to deliver the agreed outpuis at the contracted price to the concerned Minister.
As would be clear from the experience of other cou~.trieswhich have been
successful in implementing the administrative reforms, proper werk methods and
a good work envirorment are inherent constituents of such reforms and no
organisation can hope to tje efficient and effective without proper emphasis on
these aspects.
Consulrciwy
Studies
10.6
In the Commission's sponsored consultancy studies
on
"Resuucturing the Government Office", lndian Institute of Technology (IIT) and
Tab Consultancy Services (TCS) have in their reports, commented on the general
state of work methods and work environment in the government offices.
10.7
Both the organisations have found the existing level of amenities
and facilities in government offices inadequate and the prevailihg procedures for
file movemat, dak disposal and filing cumbersome and time-consuming. TCS has
proposed a new system of filing and file movement wherein creation of "File
Libraries" containing all the section-related files has been suggested. Under this
system-tkconcerned official can call for the relevant files, as and khen reqiii:ed,
by sending a requisition to the library. The official would only keep the file with
himself in case he is still processing it at the end of the day. In all other cases, the
file would be retumed to the section library. The Section File Library will keep all
the current files, with non-current files being sent to a Central File Library for
purposes of record. File retrjeval and subsequent return to the Central Library
would be through the Section Library. The concerned official would submit a file
rcquisition form to the Sectional Library lncharge who would then procure the file
from the Central Library. Apart from the filing system, both these studies have
also suggested changes in the work environment wherein an open centrally air
conditioned ofice for seating of all non-executive staff, with junior esecutives
being provided shared cabins and individual cabins being limited to only scnior
csecutives has been suggested. Other measures like use of modular furniture.
pcrmanent and semi-permanent partitioning and diversion of area above file
cabinets for storage shelves h a w also bccn rccommendcd.
0UR RECOMMENDATIONS
Reducing Ihe
paper work
10.8
Paper \vork in governmentoflies should be reduced by abolishing
all unnecessary reports and returns, reducing the number of circulars.
increased use of computers,etc.
Sveamliwd file
10.9
The existing system cf file movement needs to be streamlined.
Files may be replaced by floppies, queries and letters by phone calls, fax
messages and electronic mail. Officers may be given the freedom to destroy all
useless paper immediatelyon nOtipt. These devices not only result in speedier file
movcment and decision-making, but lead to a more efficient functioning of the
off1cc.
niovement
10.10
There is a need for greater inter-ministerial and interdepartmental co-ordination. Instead of moving files for every case, discussions
and dccisions should be issuewise with individual matters being finalised within
the concerned department/ministry in the light of general decisions taken interministerially. Unnecessary and irrelevant questions should not be raised. All
points needing clarification should be raised only once.
10.11
Reorgunising SIL:
and IllSU
Reducivg the
supervisory levels
10.12
Service
10.13
In order to minimise the differences in the qualiiy of services being
providcd, there is a need for laying down strict guidelines regarding
accountability norms and standards for government servants, to be strictl!.
adhered to wtule providmg the services. The people delivering the services and the
physiqil environment where h s e services are delivered are crucial. This has been
one of the most neglected areas in the service departments of the government. Of
late, a few departments have made some efforts to improve the physical
environment of such places but there is immediate need to make them cleaner,
aesthetically pleasant and more congenial.
dePormenh
1.39
Traineg
10.I4
The'public ScrYItlts who have an interface with the people should
be given intensive training in behaviourial science, so that they are seen as
helping hands with the smiling face rather than as exploiters.
Common ~ p i s t
10.15
All the available typists in an office should be placed in a
common typist pool. Any official requiring typing assistance may utilise the
services of any typist of this pool. We should depart from the Drevailing practise
of giving individual typists to officers.
Poor
Herding an
oficer orienlation
10.I6
All government work has to be made officer-oriented. Matters
may be considered and disposed of only at officer level and full a u h r i t y must be
delegated to each officer.
10.I7
Work environment includes oflicc layout and furniture, office decor
and amenities. We have considered all the three aspects of work environment
separately.
10.18
Office layout concerns the arrangement of equipment within the
available floor space. Presently most of the government ofices have a number of
private rooms. Such rooms are given to employees on account of their position of
prestige or because the work needs a higher level of concentration or is of a
confidential nature. The concept of private rooms is now changing and the image
of prestige built on separate rooms has to be abandoned because they hamper close
supervision of the subordinate staff,occupy more floor spacc and are generally
more cxpensive to build and maintain. Accordingly, efforts should be made to
design offices with large open areas where all the staff/juilior level executives
(up to the rank of Under Secretary) should sit. For limited privacy, partial
modular partitions can be provided. Adequate lighting, ventilation 'and acoustical
sound proofing should be provided. Modular furniture should be used and the area
above file cabinets should be converted h.tostorage shelves. Mobile racks should
be used for storing all files in a section. The personal assistants should not be
given private rooms but be placed in foyers outside executive offices. While middle
and top executives may be given private rooms, the same should be constructed by
using movable F t i o n s so as to provide flexibility for any future changes. Proper
area should be provided for visitors and reception.
OficeDecor
10.I9
Office decor gives a pleasing appearance to the office, thereby
reducing the boredom of sit& in one ofice for years. Decor also helps to
unprove the imagc of an organisation. Most of the government offices are found
to be wanting in this area.
As a short-term measure, different
ministries/departments may initiate steps for ensuring better ventilation, lighting,
air conditioning, sound-proofingthrough provision of carpets, proper maintenance
of ofice equipment and furniture, propcr colour scheme, use of potted plants, wall
clocks, curtains, wall paintings, ctc. Long-term measures can include provision of
piped muidart galleries in the cotriddreception area, utilisation of space on the
ground floor .for small museums @laying articles relating to thc historical
background of the particular department, etc.
10.20
Provision of basic amenities is a necessity. as thcir abscncc can
spread dssatlsfactlon amongst employees and customcrs We havc observed that
most of the g,ovemnicnl offices at present lack propcr basic amenities Provisions
have to be made in cven- government onice for providing drinkins water with
\taler coolers. clcan toilets. vcndiiig machines for tea and colrce and a small
recreation room'libriq Governincnt should also consider taking concrete steps
lor providing facilities Irkc creche. ladies' common room, g)mnasium, sports
fixilltics IS \\ell ;IS dcpmm!d storcs well stocked in items of daily consumption
ofices
10.2 I
We view \nth concern the tendency of vocal and powerful officers
to gct morc spacc and mcnibes for their personal and functionally related staff.
The government should take adequate measures and form proper guidelines to
ensure that uniformity is maintained in provision of these facilities to different
offices.
141
Sred 10 improve
producfivih,
11.1
One of thc major thrust arcas in th~sReport is the need to improve
productivity of Govemmcnt employees. Wc h v c kept this at the forefront of our
mind and man of our recommendations have bccn madc with the sole purpose of
raising productiiih to an optimal levcl. In this chaptcr. we nil1 give a few
examples of such recommendations.
11.2
improved .
a)
b)
c)
Six-duy week
11.5
We have recommended the promulgation of the six-day week
instcad 01 thc five-day week This singlc stcp imrncdirltcl\.increascs the number
of working days by 40. The number of gazetted holidays have been reduced
11.4
from 17 to 3. This gives another 14 days. We are suggesting that other holidays
should be declared only on the death of an incumbent President o r Prime
blinister and on no other death. This \\ill also increase the n h k r of working
days by at least 6 days in a year. Thus we have been able to add a total of 60
days or two months to the number of workihg days in a year.
Encadmierttqf
leave
Time clock
II
11 7
Tramport
Allowance
I1 8
Srrvurg o/tea on
h e table
11 9
One major irritant in Government offices is the tendency of
employees to use the taking of :ea as an excuse to absent themselves from rhcir
scats for as long as half an hour at a time. We have recommended arrangements
that would ensure the service of tea, coffee, cold drinks and snacks on the
table, so that DO interruption to the work schedule takes place.
Changing t i m i t i p
of service
insti~tlons
1 1.10
change the timings of hospitals and dispensaries, banks; shopping centres clc.
so that. these are open in the mornings and evenings when Government emplogxs
(and all employees for that matter) are free. This can be done either by introducing
a shift system and bifurcating the present staff, or through a sp!it duty system in
which case \itcan pay a split duty allowance to dliicers and staff. The idea is that
Government employees should not have to leave office and transact the business
of taking their children to a doctor, shopping or encashing a cheque, on official
time.
11.11
Having brought the emp'oyee to the office in time, having
prevented him from getting late in distractions like tea, bank transactions or
shopping. and having increased the number of working days is only part of t k
battle. How is the employee to be encouraged to work more ?
Output-based
budgelitig
1 1.12
We are suggesting budgeting and financial reforms that will
convert our budgets to documents outlining the outputs and outcomes of
departmental work instead of being obsessed with inputs. If implemented in thc
right spirit, it will bring about management by objectives, with every employ3
143
lwrwvlgexactly what his duties art,what k h d of output is expected from him and
putting in his best to meet the laid down targets.
11.13
All incentive schemes have to be productivity-linked. Bonus
is supposed to be so. Unfortunately, ma@ of the bonus schcnies c m e d y in
operation are linked to productmn and not to productiviQ We have suggested
certain dfications SO that there is no automatic increase in the quantum of bonus
menly by emu. of time, but there is a direct link established between productivity
and bonus. We are also suggesting the conversion of ad hoc bonus schemes
into productivity-linked bonus schemes.
Perjmlurce
appraisal
I I 14
Performance appraisal is another area of reform If we
develop better methods of appraisal, which are linked to actual perforqance in
qiianUtativcand qualitativeterms, and link promotion and other incentives to such
objectivc appraisal, we would be creating the best motivation for higher
productivity
11.15
As part of the appraisal system. \e arc suggestiiig a ruthless
weeding out of the incompetent and corrupt elements at the time of promotion
to the Senior Administrative Grade. If this is linked to performance, it will haye
Related
Increment
11.16
We are also introducing the Performance Related Increment
scheme. undcr which an employeesperformanu during the previous year would
dcterniinc whether he remains where hc is, cams an increment or is given two
increments instcad of one. This is a precursar to Performance Related Pay, whch
can be introduced at a later stage.
11.17
Group ITemployees currently do not face an annual perfmance
appraisal. This is b u s e they had no promotion avenues so far. Having
introduced the four-grade structure for these employees, we have also
brought the ACR back. There will thus be increased pressure on them to
perform.
11 18
In the case of cutain departments we have made specific
suggestions for improving productivity For example, 25% of runnmg
allowance has been linked to the punctual running of trains Similarly, if a pension
payment order is delayed due to the negligence of somcone in Government, he will
have to pay interest to the affected employec for the period of delay For the
tdephone department, we have suggested a colourcd points systems, with red for
bad uork and green for good work, the points beins added eve? month to mi\ c
at a numerical assessment of the productivity of telephone mechanics There is
also a recommendahon for customer opinion surveys to ascertain the views of
customers of services provided by the Government
144
Orgmirsntrotrd
rt,rhrrc/ttrinK
RedwittK
trrmmbc.rs
St?I#p/!fiCltfl/Jtl
1 1 20
Organisational restructuring includes a number of steps like
amalgamation of Ministrics and dcpartmcnts, delegation of administrativc and
financial powers,-delaycring,led-jumping, the introduction of the Desk OlEcer
q'stcm. functional multi-skilling and crcation of new c a w like thosc of Esecutive
Assistants and Office Attendants ctc. All these will lead to greater efficiency and
thus to higher productivie.
11.21
There am also numerous suggestions for.reduang the numbers
in Government employment through privatisation, contracting out of services,
transfer of functions, schemes and organisations to the State Governments, or their
conversion into cooperative institutions, PSUs and autonomous bodies, revision of
norms etc. Many of these recommendations will lead to higher productivity per
cmployee from among those who arc left in the Government.
procriltrrer
11.22
Office procedurcs prescribed in government organisations at
present are very complex,cumbersorneand time consuming. Such procedures often
lead to a greater emphasis on observation of the prescribed norms rather than
maintaining productivity. Procedures in all government offices need to be
simplified and made less tedious and time consuming.
..tccottmhtlrF
1 1.23
A shift has to be made towards accountability in the positive
sense wherein a greater emphasis will be laid on achieving the end result rather
than a mere adherance to rules and procedures. This will also provide government
employees with the necessary impetus to try out various innovative approaches for
increasing productivity.
.4 ufomafiotr
11.24
Thm there IS thc whole field of office automation, reduction of
papemark, computerisation. introduction of information technolo9 etc which IS
likely to cause a quantum jump in the productivity of Central Government
cmployees.
12.1
The main objective of administrative rcfornis is to increase thc
efficicncy 'and cffectiveness of the government by increasing productivity. In this
scenario, automation and computerisationplay an important role, as obsolete office
equipment not only leads to a wastage of time on account of difficulty in handling
but also does not give the required quality of output. Automation is also important
for installing modem communication systcms in offices, which can present
generation of a lot of unnecessary file movement and useless paperwork.
Automation
Exisring Scenario
12.2
The existing level of automation in govemment offices is quite
inadequate and haphazard. Government offices are still continuing with the
tradtional machines llke manual typewTiters. cyclostyling machines, etc. which do
not give the required quality of output. Most of thc officeequiprrmt is outdated
and poorly maintained. The telecommunication facilities are insuficient or absent
in most bf the offices. Furthermore,the office equipment is provided on the basis
of designation of the person. The best and most expensive equipment like personal
computer is kept in the room of the senior most officer who may either have no
knoivledge ofits operation, or inclination or tirii? 10 iisc it. In x j case, one singlc
pcrson ma!. not be able to utilise the equipmcnt to its capacit).. Thus there is a need
to split thc equipment into Individual and Pooled equipment.
Generatimr of
12.3
Presently government officcs gcncrate a lot of useless paperwork
in the form of unnecessary reports/returns, cstcndcd filc movement - in many cases
for clarification of some minor query which could have been avoided. tedious
proccdurcs for asposing of dak, q r o p e r filing and thc tendency amongst officials
to,corrcspond only through the medium of the witten ivord even in cases wherc
rcquisitc information could be easily gathcrcd by phonc. pcrsonal interaction ctc.
Such tendencics are a major cause of delay and rcducc the level of efficiency in
govcmment offices
LkeIess
Paperwork in
Ofices
I46
COMPARATIVE POSITION
I . ~ . ?r
~I
:I
ttfrmntrmt it1
other mutttries
12.4
Most of the other countries have realiscd the importance of proper
officeequipment and r c d d papvork in increasing thc cfficiency of government
ofices and initiated several steps in that direction. The developed countries of the
world have had a vety.hghlevel of automation with attendant reduction in useless
paper work, during,thepast 2-3 decades. Currently, the United Kingdom invests
more than 2 billion Pound Sterling a year and eniploys 20,000 staff (despite
reduction in the overall size of the government) to install and o p t e various
information and tclccommunication systems. In Canada a blueprint h e becn
designed to substantially change the way in which technology is implemented
throughout the governmknt. A 'Software Exchange Senice' (SES) has been
opened to promote and facilitate the sharing of go\wnment owned application
software, and related systems between different government organisations at all
levels. The level of automation and technology in developing countries is also
being upgraded continuously. In Bangladesh, computerisation of government
offices has been taken up on a large scale. Alongside 0 and M techniques like
modified personnel manual, standardised job descriptions with MIS are &o being
utdised. -InMalaysia, .go*.~;mmentofices are increasingly being provided gadgets
for image processing, electronic data interchange, work flow automation as an
integral part of the endeavour to help government departments to cany out their
daily operations more efficiently and effectively and with less amount of paper
work.
I
Iicralding
Cmpurerisatiort
RECOMMENDATIONS
12.5
The existing manual system of working should be replaced by
an automated and computerised system. This change should be initiated from
top levels of executives in the government whose commitmenf to the proccss of
change should be total and visible. The various activities bemg taken up for
cornputensation should be pnoritised and activities having a public interface, those
involving a lot of legal complicatims and litigation or those that generate a lot of
.repetitive work should be computerised in the first leg.
12.6
The final objective of automation is the creation of the
paperless office or the almost paperless office. One of the fears expressed by
officers is that there would be no record of who said what and therefore
accountabilih would be diluted. It is now possible to use devices by which it
Government file can be almost replicated on the computer, with sufficient
safeguards to ensure that it would always be possible to fis responsibility for
statements nladc by individual officials. We need to educate officials about these
techniques, so that there are no unfounded fears on this account.
f'ropt*r Truutitty
12 7
I 2 10
While initiating computerisation,each ministry and department
should design their system in consultation with expert bodies like NIC so as
to ensure comratibility within the overall system of the government. Thc
dcsign should also take mto actount the present arid future data volumes and must
exmine costs and benefits of various alternatives available. 'This should also be
esknded to all the field organisations as well The over all emphasis should be
to develop a network in the entire government machinery wherein immediate
exchange of data through computers would be facilitated. The system should
also contain hierarchical and functional level based codes so that appropriate
confidentiality of data is maintained.
Other Oficc.
Equipmrnt
12 1 1
Apart from computers, other office equipment which improve
the effectiveness and efficiency of employees should also be used Thcsc
include Electronic T>pewritcrs. Photocopicrs, E-Mail which enablcs thc
tr;uisni~ssionand reception of mail. FAX or tclcv around the globe. microfilm in^
Equipment i\hich makes miniature copies of rccords on film and stores thc film
either on small reels or strip and can bc used h reducing i k number of lilcs.
Scanncr I\ hich can be used to scan letters and text so that the need for typing thc
sicncils is obuated, etc Machncs should also be utllised for enforcing punctualit!
in office through electromc rccordmg of attendance and timing of disposal of C ~ S C S
etc
I' 12
In the \\hole proccss of automation, care should bC takcn to cnsurc
that modern equipment is providcd on the basis of needs Individual equipment
should be provided to a person only if he needs it continuously o r if work
would be hindered or delayed otherwise. This can include equipment lihc
calculator. computer tcrmina! ctc Other equipment which is large and
expensive should be kept in a comnion pool with timings for the use of
individuais and sections decided in advance. Such poolcd cquipiricnt would
12.13
There are also several steps which need to be taken in order to
reduce papenwork in Government. Some recommendations in this regard are as
fOllO\~S:
a)
b)
c)
d)
12.14
Many such methods for reduction of paperwork can be devised,
once m e makes ry, one's mind and trains everyone in Government to drinkin
similar terms.
Dejriirmrt
13.1
The simplest definition of openness is "casy and speedy access to
right information". In the context of government functioning in the present era of
economic liberalisation, ''~penness"means giving everyone the right to have access
to infomation about the varicus decisions takcn by Government and thc reasoning
behind them.
Comparative
13.2
In most of the countries where large scale administrative refarms
have been carried out, emphasis has been laid on libera!ising the extent to which
details of policy, performance and other information about government activities
are made available to the general public. In the U.K.,Citizen's Charter contains'
.specific provisions for promoting increased openness about the reasons for
decisions taken by the Government. In 1988, ceItain changes were effected in the
Official Secrets Act, 1911 to narrow the scope of official information falling within
the ambit of the Act. Besides, a.White Paper guaranteeing a statutory right of
access to personal records held by the government has also been implemented in
April, 1994. Canada has an Access to'hformation Act which giv& all Canadian
Citiiens, as well as people and corporations present in Canada, the right to have
access to federal government fccords that are not of 2 perso.na1 nature. The
government has taken steps to ensure that informatioil about its activities are
broadly available to the people, .with exceptions being limited and narro\vly
defined, and provisions for resolving any disputes over:the application of such
exceptions independently of the government. An Information Commissioner has
been appointed to investigate compl&ts from members of the public arising from
the above-mentioned Act. Government of Malaysia has also takcn various steps
to provide an apen and transparent government in terms of decision-rnaking. These
include publication of reports on public complaints, progress of administrative
efforts undertaken by the gove-ent
etc.
posiiiorr
111 other c-oroitrie~
Recent Trends
13.3
As would be clear from the above, there is a trend worldwide to
have increasing openness in the system of governancc Various factors like
changing socio-economic milieu, increased awareness of thc public about their
rights, the need to have a fully accountable and responsivc administration and
growL?gpublic opinion which views eflorts at secrecy as cnhancing the chances of
abuse of authority by governmmt functionaries, have led to a dcniand for a greater
transparency in govemmental functioning. Hoivcver. complcte openness is
150
~~
Bdaailced
approach
13.4
All govemments in the world practise studied concealment of
infamation from the people though the nature, degree and extent h e o f varies.
While capitalist and democratic countries have a higher degree of openness vk a
vis authoritarian regimes, nowhere in the world is government functioning totalb
open. The effort is to satisfy public demands as far as is reasonable and
practicable. Transparency also has to be fully compatible with the constitutional
and pdiamentaq system of the country and the cost of sharing information should
be commensurate with the benefit to the public. It may also not bk practicable to
give information about any proposal under consideration while it is yet to be
fhhsed, as this is likely to bring into play several pressure groups with attendmi
increase in corruption. Thus what we need in the country today is a limited
opennkss-in government fuhctioning, which would make available ex post fact0
infoamationabout vasicus, but not all, government decisions to the citizens of this
country. while anything that is detrimental to the interests of the nation, the
security of the state or its commercial, economic and other strategic interests,
may not be made public, nothing should be held back just to subserve the
interests of individual bureaucrats and politicians.
Right to
13.5
Experience of other qounbies shows that we will have to initiate
the process by passing a Right to Information Act, somewhat on the lines of
Canada and the United Kingdom. Adequate safeguards will have to be built into
the legislation to ensure the primacy of the national interests as also the privacy of
the individual citizen. At the same time, an independent authority will have to be
constituted to decide whether a document can be made public or not. In this
context, we recommend the creation of a National rnformation Authority
which may be headed by a retired Supreme Court Judge or a retired Chief
Justice of a High Court. It should also include independent and eminent
persons ss its members. The decision of this authority should be appealable
only in the Apex Court.
Iqfonnation Act
and Setting up
anindependentaut
hority
Dissemiiiation of
~~,/ornrclrrun
P==
cammunique
13.6
Public relations wings, which already exists in most of the
government departments, should be converted into Public Relation-cumInformation Wings. Their functions should include dissenrination of
information to citizens on payment of a prescribed fee. People should be able
to inspect Government papers and, if necessary, take photocopies of desired
documents. No extra staff should be employed for this work, as the existing
staff of P.R Wing can take on these duties additionslly. Departments should
also publish information of general interest and keep copies of these in their
libraries for general consumption. They should put information on
computers with linkage to Internet and other global networks.
13.7
Every important government decision involving a shift in
policy should invariably be accompanied by a White Paper in the nature of
an explanatory memorandum. Whenever a government decision brings about
any pecuniary benefit of the value of Rs.100 mm or above to any particular
kdividual, p u p of company, whethcr in form oflicences, tax relief or award of
151
ofices
Curring out
discretion
13.8
A new kind of office struchm, with a counter system, as in the case
of banks, shauld be adopted in all field offices involving public contact. This has
already been uscd with success in the Ahmednagar Experiment wherein the district
office was restructured, demystified and made more open so as to facilitate the
work of the general public. We have to move towards a government office wlUch
gives a elearat time-limit for dqmsing of any rquest of a member of the general
public. An individual, if he so wishes, should be made aware about the exact stage
of his case at any p i n t of time. In such a system, ad -applicant is given a fixed
time-limit, at the time of submission of his application giving the date on
which the final decision on his request would be conveyed. The Passport Office
has already initiated a system, where the status of an application can be ascertained
at any point of time.
13.9
Openness also implies that the reasons for Government decisions
are placed on record in black and white. For this purpose, formulation of criteria
that would be used for decision-making is a must. Accordingly specific rules,
criteria and norms have to be laid down for every activity of the government.
The areas of discretion should be minimised and, in fact, eliminated. There
should be no provision for Ministers, MPs or bureaucrats to dispense favours
like Gedical- college seats, Government accommodation, telephones, gas
agencies, petrol pumps and the like. All such out-of-turn o r discretionary
quotas should be abolished. Wherever discretionary powers have to exist,
these should be exercised by a group of officials with disparate backgrounds.
In such cases, there should always be a 1ecorded decision giving full justification
for the stand taken. These groups should never be headed by ministers.
Tmnspmncy in
appoinbncnls,
promotions clc.
Redress ogainst
s t c p crior:
13.10
Presently, the procedures invoiving personnel management in
government m kept so much under wraps that even government servants
themselves are not aware of them. Many of these activities like policy of trqsfers
and postings, procedure for empanelment and even the list of persons who have
made it to a p a d remains closely guarded secrets. Transparency in dealing with
matters relating to appointments, promotions, placements and personnel
management is essential. We recommend that clearly defined criteria for all
matters concerning promotions, transfers, appointments, etc. of government
employees should be laid down. When a panel is drawn up, it should be
published so that everyone knows where he stands Apart from reducing
frustration amongst government employees, this will obviate the need for fighting
service-relatcd cases in the courts.
13.1 1
Op&ess in governmental functionins has to extend to rcsolution
of disputcs among government savants. In the present hierarchical structure in the
government, a subordinate does not have any avenue to air his grievance against
his immcdiatc superior to anyone. Thc official rulcs provide for representation
152
through proper channel In \\ hich thc first link IS again the neurimniedrate officer
Moreover, m case of a dispute. there is always a-prcdiicction among the top
bureaucrats to go by the statement of the senior officer It would be better if in
such cases, the senior ofticer counsels both parties involved in the dispute to
arrive at a mutually acceptable settlement. If differences still persist, efforts
should be made to delink the two persons involved in the dispute, as they may
both be good people, only temperamentally incompatible
Rrlalions wid1 the
nrrdin
13.12
Openness should not mean indiscreet lcaks about Govcnnnent
actions, all of whose secrets are bandied about in public. In fact, openness should
do away with the very provocation for such leaks. By its very nature, the work of
a government employee is faceless as it invariably flows out of efforts involving
the entire system. The concept of anonymity of the public servant is a good thing
an0 should mtinue. Lately certain public servants have developed a tendency
to acquire a false halo by cultivating the press and giving them friendly leaks.
There i s a need to suppress this tendency. The Conduct Rules.already
provi(le for departmental action in such cases. There is a need to implement
this severely so that no more paper tigers amongst bureaucrats are created
by the media. At the same time, the public relations machinery of different
government dqartments should be trained to give out balanced stories to the
media who should also be piven sufficient opportunity to visit the places
where good work has been done. Instead of issuing drab press notes giving dull
statistics, the media should particularly be apprised of individuals who have been
helped by the system, as hufiiii interest stories always evoke greater attention.
Rejorms in rVew
Zecllnnd
14.1
I
E'eusibiliry o/
Ineducing
New Zealand
aiodel in India
14.2
While this kind of system may be the ultimate aim for any
government of the future, it is doubtful if the prcsent circumstances are conducive
to its instantaneous implementation in India. Today we have a centralized system
Finance under the plllse of econonn,. Most important decisions of any consequence
are taken either by the Cabinet or a Cabinet Committee or the Minister or thc
Committee of Secretaries.
14.3
Delegation of authority is critical to the cutting-down of levels and
the time taken for arriving at a decision. Ony delegation can lead to reduction in
the size of government which is central to the entire process of administrative
reforms. htralised control leads-towastage, as one set of rules cannot 6 equally
applicable to thousands of diverse situations which obtain in a country of India's
size and complexity. There is thus no doubt that delegation is the key to faster
decision-making.
RECOMMENDATIONS
L)rcrti:ralIsatioti
of Fitiancid
Powrrs
Rolr c$.bfinrstq
14.5
The Ministry of Personnel, Public Grievances and Pensions is the
nodal ministry dealing with policy in respect of personnel matters. Due to common
criteria prescribed by this ministr), there is a great deal of uniformity in the civil
services, which is not always conducive to effective management of the functions
attached to diverse departments. There is need for greater freedom in personnel
matters within the existing system subject to the specified budget on pay and
allowances. Individual departments should be allowed to determine the
structure of their cadres within the existing pay scales without the
intervention of the Ministries of Finance and Personnel. They should also be
authorised to work out incentives applicable to their employees, within the
parameters of general guidelines, like increments, lump-sum payments,
productivity-linked bonus, etc.. The departments should also enjoy greater
freedom in res'pect of personnel who are specific to such departments and are
not to be found in other ministries. In such a scenario, the role of Ministry of
of Personnrl.
Pllhltc
Grimraticesotid
Pr?lslwls
14.4
155
Hole of
Conmfirree
OI
Secretaries
Ro!e of
Srcrc~tarte.t
14.6
The approval of the Appointments Committee of the Cabinet
should be sought only in respect of appointments of Joint Secretaries and
above in the secretariat and appointments to posts carrying a pay scale
equivalent to that of Additional Secretaries and above in the field offices.
14.7
Presently there is a tendency to refer almost all important matters
to the 'Committee of Secretaries'. This leads to avoidable delays and dilution df
responsibilities. Individual cases should not be referred to the Committee of
Secretaries. Only broader issues having wider. ramifications should be taken
up a t their level. All administrative Secretaries should be delegated the
complete and final authority for approval of projects, programmes, schemes,
procedures etc. upto any limit within the overall budget. They will iio doubt
seek the advice of all those concerned before arriving at the final decision. This
would ensure that the ministry responsible for a given task also has the necessary
pomrers to achieve it.
14.8
All administrative Secretaries should be given maximum
functional freedom and financial flexibility as in the case of Chief Executives
in New Zealand. Simultaneously, they should also be asked to commit
themselves to targets aiid action plans for their entire tenure and held
accountable for the same.
Ijeieptron as a
prelude 10
Delayring
'f4 9
An armospherc. 01
14.10
An atmosphere of trust bs to be created throughout the
administrative system, so that each rung of the Government feels motivated and
responsible for the results in specific are+ of responsibility Power &
responsibility should go together. Only in such,a system can decisions be taken
quickly and efficiently.
trust
Grievances
15 I
It is inevitable that the large size of the Government machinery and
the plethora of services provided by it should generate grievances. Thesc can bc
arosdly divided into two types - grievances of customers and gnevances or
employees
Wirhdrawal of
Gowmmen:
15.2
One major policy thrust that can reduce both is the withdrawal of
Government from arcas that can be transferred to the corporateor private sector.
This option has to be pursutd vigorously.
Need fm effec:iw
reahsal
15.4
Other countries have tried to build effective grievance redressal
mechanisms. In Malaysia, a Public Complaints Bureau has baa crated in the
Prime Minister's Office. It has the status of an independent organisation to look
into complaints against public agencies. It is the main channel for the public to
f o n d their grievllnccs against public servants. Several steps have been tAen to
inform the public about their right of redrcss.
Liriled Kingdom
15.5
1 In the U.K., the Cit izcns' Charler ( 1991) introduced mechanisms
L
for registering and redressing complaints made by customers. Govcmmcnt took
stcps to publicize the proccduPes for lodging complaints. A Complaint Task Force
was created for setting up improved complaints %stems. A telcphoiir: hclplinc
called "charterlinc" was installed to help people to find out more about public
I5 6
A Department of Public Works and Cmvemment Services was
opened in Canada, in order to permit members of the public to lodge formal and
informal complaints. The Canadian International Trade Tribunal was appointed
in order to receive and decide upon complaints in respect of award of Government
contracts to private parties \
1
CONSULTANTS ADVICE
Tata Consdtancy Servicts have suggestedthat all public grievances
should be received and acknowledged only at one point. The Departnient of Public
Gnevances should function as a nodal department and forward thc csmplaints to
the respectivedepartmats for necessary action in a time-bound manner. Creahon
of a grievance committee for handling grievances of employees has also been
suggested.
15.7
EXISTING SYSTEM
Department of
Pacbiic
Grievances
15.8
As in everytiung else, we already have a public grievance redressal
machnery in place. At the apex is the Deqartmcnt of Public Grievances, under the
charge of a full-fledged Secretary who reports directly to Cabinet Secretary. It
registers all public grievances received e i k firom individuals or from the
newspapers and forwards the same to the concerned Ministries. Action taken
thereon is monitoredclosely.
Special Celh
15.9
Defects in present
15.10
The troublc with the pnscnt system is that it is not worked properly,
due to the following reasons :
Tslem
a)
b)
c)
d)
e)
g)
h)
OUR RECOMMENDATIONS
15.11
An effstive grievance redressal machinery has to be put in place,
so that each of the a b v e defets is taken care of. Our recommendations try to
Citizens' Chorter
A ttirudtnal
chonge
15.13
Officers have to be trained in effectbe grievance redressal.
for this. Each oficer has to maintain an open door
There am somc basicprincip11~
policy. His doors have to be dways open to the members of the public, to listen
to their gkvances. Disposal of papwork ha$ to take sccond priority. So long as
papers arc gimm& importance than peop~c,our administrative systems cannot
improve. Intersention bas to be personal, by calling the concerned official or by
ringing him up. Deadlines'have to be set for each task. The completion of each
task has to be monitored. No backchat is to be tolerated-from subordinates. Each
person is to be trained in problem solving, and in f w i n g our innate tendency to
pass the buck to someone else.
Pinpointing of
responsibility
15.14
Performarice
opprouol
15 15
Whenever a grievance is redressed or not redressed within the
time limit prescribed by the organisation, there should be an automatic
mechanism for recording of the performance there and then. It should bc
recorded for several purposes It should go into a data bank which records the
pcrformance of the individual That should enable the department lo prepare LL
Monthly Performance Appraisal, whch should be communicated to thc indlwdual
The other use to which the information can be put is the determination of the
individual's entitkment to a financial reward or punishment.
Reward und
pwiishmenl
15.16
Asimpk systcmm the tclcphne.maintcnance wing of DOT could
award green points for good work and red pcints fa.slipshod work. At the end of
the month, al the green and red points could be totalled up, to give either a net
green (plus) or red (minus) figure. That figure could determine whether the
mdwidual \ w d d be entitled to an incentive or a deduction. In other departments,
it could be linked with (say) running allowance in the railways or performancelinked bonus h the postal deprtment or a cash incentive in a defence workshop.
Customer
Opinion Surveys
15.17
We require a well organised system of Customer Opinior.
Surveys, which could give us f d b x k about the performance of an organisation
or individuals within it. These niay be conducted internally. through units
dedicated to the task of Performance Appraisal or by engaging private survey
agencies on a contractual basis
hiiiuimnal
mechanismfw
redressal
15.18
A multi-tier institutronal mechanism has to he developed for
grievance redressal. This means that only grievances which cannot or are not
redressed at a particular level will travel to the nest higher level. X grievance will
keep on travelling up the hierarchy, as long as it is not sol\.ed. Thcre should be
automatic mechanisms which alert each higher level about the unresolved
grievances at the nest lower level as soon as thc stipulared standard time has
elapsed. One of the methods could be that of Lok Adalat or Social Audit Group.
Sarvochha Lok
Adalat
15.19
The higlwst tier of grievance nd&d at the bureaucratic level
should be the Secretary (Public Grievances), who should be one of the
senior6ost Secretaries to the Government of India. He should be able to hold a
niionthly meeting to discuss unresolved grievances which need attention at his level.
The meeting should have representatives of the administrative Uinistry, and the
Ministries of Finance and Law, ail of whom are Illy empowered to commit their
Ministries to any come of action that may be jointly decided upan. In important
casts, theref- the concerned Secretaries may attend the meeting personally. The
aggrieved party should also have the right to d e a verbal reprsentation before
this forum, which may be called the Sarvochha (Apex) 'Lok Adalat. Decisions of
this Adalat should be final and binding on all the Ministries of the Central
Govcment.
Calling/or
departmentaljilcs
15.20
The Secretary (Public Grievances) is currently authorised to
call for the fkpertaining to any case of any Ministry and to pass any orders
that he may deem fit, taking all the circumstances into accQunt It IS not known
how often or whether at all he exercises this power. But it would be salutary to
have this power vest in him, and wherever necessary he could obtain the
approval of the Cabinet Secretary or the Prime Minister, to lend the
necessary weight and finality to his decision.
Ombudsman
15.2 1
We also need an Ombudsmanoutside the routine bureaucratic
machinery. This could be a retired Judge or senior bureaucrat, ~ h may
o be given
a Constitutionalor legal status. He would be avai'lable for attending to unresolved
gnevances and could intervene in gitical matters. Hs hearings could bc public. but
without there being any lawyers. The complainant and the reprcscntatwc of the
Government department could be heard and an appropriate order passed either
setting a time limit to thc niattcr being resolved by the dcpartmcnt or in thc case of
a dispute, even deciding what line of action should be pursticd
100
.Wac/iinety
15 22
The gicvanccs of employees and pensioners wilt have to be mainly
dealt with by having multi-level points of grievance redressal, starting from thc
immediate boss and travelling through the layers of head of office, head of
department,adrmnistrativesecretaty and so on. Time limits for grievance redressal
should be fixed and adherd to.
Grtewnce
15.23
Each Ministry should have an Employees Grievance Committee
chaired by the Secretary. This should be the apex of a hierarchy of such
Committees, starting from the field level. Unresolved grievances should travel
quickly up the hierarchy, so that matters are set right within the shortest possible
time. Personal hearings should also be allowed at each level.
Pension Adalat
15 24
Committee
161
Dafmiliori
16.1
Management Information System is an integrated approach to the
design and use of a computer-based information system that provides summary
information and highlights exceptions for corrective decision-making. Readily
available and up-to-date information is a vital requirement for facilitating correct
policy-making and mOriitoring and control over various programmes. MIS also
enables the maaagement to take concurrent corrective action in ongoing projects.
I COMPARATIVEPOSITION I
Mcancrcs taken in
Orher
covnoies
16.2
I PRESENT
Ills plaguing h e
present +stern
16.3
Despite recent changes, govenunent ofices have not so far
adopted Information Technology in a big way. Collection and compilation of
information in government is being done on a very large scale by way of filing
various returns,whch engages most of the time of field functionaries. However,
this vast information is not Mly utilised because of its bulk and its delayed
availability. In gosernmentdeparimcntsinformation technology is mainly used for
document processing. While such systems have improved the eficiency of
operation of processes of a repetitive nature, they have not been used either for
decision-making or for planning, because of which the scope for enhancing the
effectivenessof organisations as a whole has been extremely limited. Most of the
departments have taken up computerisation of thcir operations in isolation and at
times their systems are not chpatible with the overall compnter network of the
govmment being operated by NIC. There is no effective mechanism for exchange
of information between various ministrieddepartments At times, the left hand
does not Inow what the right hand is doing. The bulk of informstion gathered by
the government machinery is not, therefore, utilised efficiently and effectively.
Quite often, information, in spite of being available. has to be collected from the
c o r n e d ofices due to cumbersome system of retried or the same information
is sousht more than once by the same office. The dormation so collected is hardly
used for monitoring of projects or for taking corrective action or even to update
data inputs for policy makers.
Desirable
altribules
I6 4
Today the government machinery needs an MIS which will
reduce duplication of efforts, streamline operations, make standard, accurate
and timely information readily available at all levels, integrate government
operations across the country, and take care of routine and repetitive
processes which presently account for nearly 80 per cent of all government
acthities. The ~oveanment,in its role as facilitator, should also nuke relevant data
available to t ! private
~
sector to facilitate its business interests, within the counby
and abroad.
RECOMMENDATIONS
Dmloping a
compu~trnetwork
16.5
Each ministry/department should identie the type of information
required at various levels for its designated functions and identirj, the sources for
its collection. Thereafter an integrated software should be developed which
should compile information fed by various sources and process it.to facilitate
its retrieval in the desired format by various functionaries. This will eliminate
duplication in data collection, its compilation and transmission. The NICNET of
the National Informatics Centre, which covers all the district headquartersin thc
c o u n p , should be utilised by all the ministries and departments of the central
govenuncnt. A common software should be devised by NIC Tor all govt.
departments so that the systems being followed in different departments.
remain compatible. Even if individual departments have to develop
specialised programmes for their specific functions, care should be taken to
make their language compatible.
The computers of various
offices/deprrtments should be networked so as to facilitate interchange of
information between different offices/ departments1 ministries of the
16.6
New formats should be devised for collecting information
from field units by the head oficdministry. These monthly formats should
be exhaustive and contain complete information so that the need for calling
details repeatedly from field offices is obviated.
Departmental
andfotnctional
management
16.7
A new system should be developed for departmental and
functional mmagement control. The system should interact extensively with
information generated at the operations level to summarise and present it in
the desired format. The reports generated by this system should cater to both
routine as well as ad hoc queries essential for decisian-making.
controlSVJIcns
Planrrirrg and
cotrtrol .yvstems
16.8
For purposes of strategic planning and control at higher
levels, a suitable information system consisting of related information from
external sources supplemented with data extracted from the operational level
of the department should be devised. This system should have an inbuilt
capacih ta caw to n larse number of unstructured and iuianticipated requests and
should bc able 10 support 'What-If analysis to enable users to develop their own
models.
Specia lised
sofiare
16 9
Government departments should be given specialised
software to perform functionswhich can lead to better analysis and result in
time-saving.
.hending the
existing
proceduns
Data Jnlalligcnce
16.11 .The data collected by government is quite eshaustive Fnd can be of great
use for private entrepreneurs in planning 5eir operations. The government
should develop a system whereby data having commercial value can be made
accessible to private sectors for commercial use.
System
I64
Intrduchon
17.1
Recruitment to posts in Government has become increasingly
difficult m the context of the growth of the private sector, which is now in a
position to provide much better rermndation and perquisites as compared to thost
OM
by government f'or camparabk positious. The age-old prestige attached to
Government service and the associated job security would not appear to be
adequate incenhves to attract the best amongst the job seekers. &lay in
completion of the recruitment proass also has an adverse impact onthe timely
availability of personnel to man vacant posts. A review of the recruitnient
procedyres and methodologies would, therefore, appear to be necessary
17.2
bfferent methods ofrecruitment prevalent in.$ovemment for filling
vacancies in different categories are (i) promotion (;i) direct recruitment (iii)
deputation (iv) transfer (v) re-employment and (vi) short term contract. The
recruiting agencies of the Central Government are invclved in varyins degrees in
the recruitment process.
d'rou~
17 3
165
IhmpfimlFmn
ronritfiadion
with UPSC
17.4
Similarly, the UPSC (Exemption fiom Consultation) Regulations,
1958 specify the matters which art excluded fiom its purview. These envisage that
if the rulesgoverningreauitment to the civil service or civil post concerned do not
explicitly provide for consultation with UPSC, it is not neqxsary to consult the
Commission in regard to selection for appointment in the following categories-
Reduction of
lood Of
UPSC
jw
rrcruirmenr
Itivolvemen1
I.:PSC in
promotion
17.7
In addition to UPSC, Goranment of India has set up Staff Selection
Commission, Railway Recruitment Boards and other agencies and entrustad them
with the responsibility of recruitment to Group 'C' posts in Central Ministries,
Departments and their attached rrnd subordinate ofices and for recruitment to
catah specified Group ' B posts like Assistants and Stenographers in the Central
Secretariat. Vacancies in Central Chwemment Establishments other than those
filled through the UPSC or agencie like Staff Selection Commission arc filled by
the respective departments through notification to the nearest Employment
Exchange and no department can fill any such vacancy by direct recruitment, unless
the Employment Exchange issucs a non-availability certificate. In the event of a
conscious effort to reducc warkload on UPSC, as recommended by us, the
recruitment responsibilities shall need to be increased for Staff Selection
Commission. Also, Ministries, Departments and subordinate organisations
should themselves take up more recruitment responsibilities.. Govcnrmcnt
s h d d evolve procedures a b u t nominationof experts, if necessar).out of panels
maintained by UPSc/Stafstlca'iob C;orimission,
to the selection committeeto be
constituted by 'MinistriedOrgaktions for this purpose. W e do not suggest
creation ,of another .agency for recruitment by Governqent. The Staff
Selection Commission, which has already opeecd many regional offices, d s
to be expanded further to take over m o q responsibilities. This coupled with
the responsibilities passed on to the MinistriedOrganisations themselves will
ensure speedier recruitment in Government.
178
The UPSC is generally associated finalising promoboms at
various letcls In different services and cadres It is necessary to review the
different service rules with a view to ensuring that these do not contain
provisions for consultation with the UPSC in respect of posts specifically
exempted under the UPSC (Exemption from Consultation) Regulations, 1958.
In addition, the regulations should be amended to provide that consultation
with the Commission shall not be necessary in regard to selection for
appointment to posts in scales of p.ry below or above the Senior
Administrative Grade (Rs.5900-6700)in all ServicedCadres. The-present
practice of consulting the UPSC in cases of promotion from a Group 'B' post
to a Group 'A' post should however, continue. Promotions to posts below the
Senior Administrative Grade should be decided by the individual Ministries
themselves, who need to be authonsed to constitute DPCs irrespective of the fact
whether the promotion is to be made by the selection or non-selection method
Associatton of a representatweof the UPSC m the DPCs need not be insisted upon
I n short, the UPSC should be consulted for promotion only at the time of
promotion from Group 'B' to Croup 'A', or from a lower post to Senior
Administrative Grade in Group 'A*. All other promotions should be done by
167
I REDUCTION OF
Time taken
17.9
It has been brought to our notice that because of the inordinate delay
in selection of personnel by UPSC,StaffSelection Commission, etc., the selected
candidates lose interest and do not often join the posts. As a result, the vacancies
remain unfilled for a considerable time, affecting normal functioning of
Government offices. The present timc lag between the notification of vacancies
and issue of cffers of appointment to candidates Is very long and ranges between
1.5 and 24 months. There is a definite necd to rcduce this time lag. Besides,
reserve panels should also be prepared by the recruiting agencies so that alternative
panels could be made available to the indenting ministries wherever necessary. We
feel that measures suggested in the succeeding paragraphs should be adopted with
advantage by the Cmvernment departments and recruiting agencies to improve the
situation.
.Uanpower
piunning
17.10
Depar&mk$h+Iinistries should do proper and scientific manpower
planring with a view to ensuring that projections are made for vacancies likely to
arise in the next five years or so. While making the projections, it should be
en5ufBd that all relevant factors like past trends of resignations within a year of
appointment, csndidatesnot accepting offers of appointment, unforeseen vacancies,
etc. are duly taken into-account. Recruiting agencies should initiate recruitment
action on the basis of the projected vacancies: which may be subjected to
modification based on an annual review of the projected five vear manpowex plan.
~
of vacancies and changes therein
Indenting departments should intimate t l numkr
directly to the recruiting agencies, with a copy to the cadre controlling authority.
Maintenance of
Panels
17.11
Recruiting agencies should prepare a panel to cater to the vacancies
notified by the indating departmntsand, based on past trends and experience, the
size of the pards should be so determined as to ensure that the requirements
of the indenting departmats are fully metact of the panels. In cases of regular
annual selection through competitive examina:ions, the currency of the panel
should be valid till the panel on the basis of nest annual examination is available.
Vacancies resultingdue to resignation or death of an inckbent within one year of
his appointment should be filled immediately by a candidate from the reserve panel.
if a fresh panel is not available by then. Such vacancies should not be treatcd as
frcsh ones.
Provisional
uPPoinbnentr
17.12
The amcept of provisional appointmcnts needs to be introduced in
Government to ensure that candidates sclected by recruiting agencies are
immediately appointed, on a provisional basis for a period of three months,
without waiting for the completion of their medical examination and
verification of character antecedents. The Temporary Service Rules would
require amendment to provide that such provisional appointments could be
terminated at any time without assigning any reasons. All efforts should be made
to complctc the medical examination and vcrificntion of antecedents during thc
period of thrcc months that the provisional appointillcnt would be valid
17.13
The tinic limit within which the selected candidates are required to
report for duty should bc drastically reducul and the oger of appointmedt to a
candidate who fails to join within the period stipulated should be cancelled
without assigning any reason.
17.14
Demands have been made that the maximum age limit prescribed
for direct recruitment to VMOUS posts should be increased. Besrdts, furthw
relaxations of age have also been sought to enable departmental candidates to
apply for appomtment to posts filled by direct nauitmenl in their own departments
and outside We feel that the present provisions in this regard are adequate
and further liberalisation is not necessary.
17.15
It has been tepnscnted that, instcad of placing an excessive reliance
an theperformance of candidates in university examinations, which is often not a
very reliable indicator, recruitment to posts in government should be based on
examinations or tests specifically conducted by the recruiting agencies for this
purpose. It has been pointed out in this context that the standards adopted by
diffatnt Boards and Universities for evaluating students are also not uniform. We
fcd that the apprehensions underlying the demand are genuine and the only
way to overcome j h t problem would be to ensure that the suitablity of
candidates for appointment to posts is determined on the basis specific
or examinations conducted bv thc recruitinn anencies themselves.
if
: 169
18.1
Mobility of employees refxs to their capacih. in terms of flesibilih
it. serviceconcbtions,to move in the course of their career to other services or posts
in the Central Government itself: or in State Governments. public enterprises.
autonorno& organisations, international agencies, foreign governments and even
the private sector. Conditions of service of government employees. particularly
those relating to fonvarding of applications, retention of lien in the parent
department while working in other departments/ organisations, transfer of
pensicnary benefits in cases of permanent absorption or transfer, etc. have been
liberalised and improved pendically so as to remove impediments in their
movement to other sectors. But the extent of mobility is as yet quite insubstaytial.
~
18.2
A number of demands have been received by us urging that a liberal
exit policy should be formulated to enable Central Government employees to
accept employment in the private sector or abroad while retaining their lien in their
parent departmen.ts. It has been contended that, apart from earning foreign
exchange for the country,h s would also help in restricting the size of government
organisations. It has been suggested in this context that employees should be
sanctioned extraordinary leave for the purpose, as is being done by certain State
Governments like Kcrala and West Bengal, as well as some public enterprises.
Lateral entry of persons from other sectors into government senice has also been
advocated.
18.3
In Kerala, State Government employees are permitted to avail of
leave without pay and allowances, whether continuously or in broken spells. for a
total period of 15 years to accept alternative employment eithcr within the country
or abroad.
18 4
The National Hydroclecmc Power Corporation Limited permits. on
a selective basis, its employees who have been declared surplus to retain their lien
for a period of two years to cnnblc thcm to secure alternative cmplo\-mcnt in prn ate
organisations Employees of Himachal Pradcsh State Electricit) Board arc
I70
sowrnmmt
18.5
In tarns of the CentralCivil Services (Leave) Rules, 1972, not mote
than five years' leave may be sanctioned at a time to Cenkal Government
anployees. These further prohibit the employees from accepting any employment
either w i h n the country or abroad or undcrtdiing my m c r c i a l activities while
on leave.
18.5
After carehl consideration, we are of the view that it may not be
desirable, as a general principle, to permit all government employees to accept
employment in the private sector or abroad while retainmg their connections with
the Government. Quite obviously, acceptance of the demand would be dctrimcntal
to the interests of efficiency in government. The ewsting provisions in the rules
nxpinng them to resign from government before accepting such anployment arc.
considered to be salutary and deserve to be retamed. It may, however, have to be
mgrused i t this context that many employees arc apprehensiveabout exploring
alternative c8ccers in other sectorsbecause of the uncertainties involved and doubts
about their being able to adjust m an alien work environmat. One of the major
thrust areas of the COtnmissian is also to devise measures far rightsuing the
government machinery. Far this purpose, it may be essential to casurc that exit
hthedovemment seaof is easy and painless. Therefore, as an experimental
measure, certain specifred categories of employees could be permitted to
retain their lien in their posts in government for a very limited period, say
two years, while being employed m the private sector or abroad. During this
perio4 it should be possible for them to make the transition from the
government sector and to adjust themselves in the new work environment
and to decide whether they would prefer to continue in their new assignment
after resigning from government service or return to the post earlicr held by
them. This measure could conceivably act as an incentive for persons to
consider quitting government Swice after being exposed for a Limitd period
to a new work culture rind environment. To begin with, this facility could be
extended only to those categorkd as Executives.
n
F
in
'g
of
ipphcatians
18.7
The present rules governing the fonvarding of applications for
alternative employment from serving employees are considered to be adequate.
These provide enough mobility while safeguarding, at the same time, the right of
governmcnt to retain such of those employees as have been trained in specdised
fields at government expense and are, therefore, obliged, in terms of b n d s
executed by them, to serve government for specified periods. They anr not
restrained, however, from accepting employment in State G o v e k t s , mblic
enterprises and quasi-governme$ organisations. In such cases, the bon& am
transferred to the concerned organisations.
/
'krnptionfim
tppoinanent on
'Jcnnanent
bbssrprian in
Yuconmous
3rganisations
18.8
At present, CcntralGovemment employees can accept appointment
in a public entaprise or autonomous organisation only on severing all connections
~ 4 govemmcnt.
h
In view, however, of thc fact that this restricted the capacity of
those autonomous bodies which had only mall cadres to obtain the services of
personnel in spccialisd fields, detailed guidclincs have been issued by government
listing thc cases in which exemption can be'sought from the applicabilitydthe
171
torcrolmqy
m chwnmcnf
Semce
18.9
Reciprocal ananganents presently exist to ensure that the services
r e n d e r e d by a Central Governmentemployee in a State Government and vice verso
are counted for pcnsionary benefits. The earlier provision in the des which
required the transfer of the pro rata pensionary liabiity to the borrowing
government has now been deleted. On the same analogy, it has becn daMtwkd that
this provision, which still exists, should be dispensed with in the ease of
appointments in autanomous organisations as well. This is-onthc ground that the
autonomous organisations are fdiy funded by g0v-t
grants. However,
appointments in autonomous organisations, irrespective of the source of their
funds, are not comparable, with those in the Central or State governments.
The present arrangements in this regard may, therefore, continue.
18.10
Lateral entry of persons from other sectors into Central
Government service could also be considered as the experience and expertise
gained by them could be u t i l i with advantage in government. They must
be encouraged to join on r time bound contract basis.
: 172
Inrr0dUcb;at
19.1
One of the mainpoints of criticism a g a k t govenuncnt employees
is that once they are appointad, tbcy are there for life and no one can @ rid of
than. It is, therefore,~eccss81ytosee how in the new atmosphereof libcmlisation,
we can devise novel metbods of ramitmmtwhich would not necessarily involve
lifetime employment. Contmctualemployment is the obvious alternative.
Prestnl panhim
in Gwmmcnf
i9.2
Appan antract are generally not resorted to in the m a
ot'public employment in the Government of India, except in a few areas requiring
specidtsatm. A contract appointment is one under wvhch an employee signs c
legal contract with his employer to perform assigned tasks for a specifid penod
on the tern= and conditions (including remuneration and erquisites ) specifid
therein. The need for contract employment paticularly arises whex a project work
of a purely temporary nature is required to be undertaken for complehon wthm a
speched period or certain aqxcdscd skills and inputs are considtrod necessary for
Shortddons. Generally,nCrUitmentto all posts in government, which are likely
to continue beyond a period of one year, is made on a regular bwis, the general
understanding being that persons so recruitedshall continue in service on a longterm basis. Thus personsrecruitedfor temporaryjobs are shittcd to anothq project
or jobs of temporary nature and they ~ f ultimately
e
assimilated in the permanent
work fmc.
Why we .reed
19.3
Thereis, Mbrc,auyingneed torecogniseti&bound temporq
contcactanploymcnt as a legitimate and accepted form of employment. The need
for such anp!oynmt also srises in the context of labour laws and general attitudes
of courts, which had to protect the interests of labour and convert casual workers
into permanent regular employees even if they are recruited for specifiedjobs on
a purely temporary basis. Providing security in employment thus assumes greater
importance than ensuring that the work of the Government is done at the minimum
possible cost. The need for contract employment is also felt for the purpose of
lateral entry for vanous positions at senior level where services of an expert in a
Contrad
employnrt
: 173
of the
scheme
/Or
engagement
CrwrmHlrollr.~
19.4
A form of appointment for temporary work that is prevalent in the
Government of India is the scheme of engagement of Consultants to undertake
specificjobs of a specialised nature. Consolidated instructions on the subject were
issued by the tkpartment of Personnel & Training in their O.M. No. 16011/6/93Estt (Allow) &ted 3 1st December 1993. These stipulate that Consultants can be
appointed to the-extentof 10% of the total number of psts at the level of Joint
Secretaries and above within a Minisw, including attached and subordinate
offices. In the case of the Planning Commission, this nstiiction can be relaxed up
to 25 Consultants in all. In the case of appointment of fetidretiring employees
as Consultants, their total number in a MinistqdDepartmcntis not to c s d two
at any given time.Employment of such Consultants is not to be made for work of
a regular nature. In case this is rcsorted to under esccptional circumstanccs, the
post earmacked for such work is required to be leR vacant. The masimum period
for which such appointment can be made is not to exceed two yeas in case of
empioynent of outside experts and 6 months in .the case of retidretiring
employees of the MinistryIDcpartmknt. However, this scheme does not rcspond
to the 4fot contract employments at all levels in Government, whenever work
of a temporary nature arises.
c0untrie.s
] 9.5
I74
Pasition in
prtvatr srctor
OUR RECOMMENDATIONS
Rrcogttititm oJ
contractual
employment
19.8
At present, appointmentagainst my post likely to ccntinuc Scyond
a period of one year is to be made on regular basis through UPSC. SSC,
Employment Exchange etc. In case contract appointnisnts are to be made by
conccmed MinistriedDepartments, it shall be necessary to amend the UPSC
(Exemption from Consultation) Regulations, 1958 to provide for eIemption
of all job-specific contract employment, which is to be continued up to a
maximum period of 5 years. Regular appointment through UPSC should be
required to be made only where it is likely to coniinue beyond a period of five
years.
It may also be necessary to amend the labour laws in the country
19.9
send a clear signal to the courts that short-term employment should be
recognised as a legitimate mode of engagement of labour, and job security
should not be accorded the preponderant attention that it has.received in the past.
tci
19.10
The Model Agreement Forms circulated by Ministry of Finance
in 1955 for contract appointmentshall need a re-look and updating in the context
of changes in employmentnabour laws during the last four decades. The model
should also provide for the description of dutiedspccific details of the job for
which such contract employment is to be made.
f9.11
The scheme of the Government for engagement of consultants
should be modified to provide for such appointments on contract basis. There
should be a provision that the appointment of a consultant on contract basis should
be made only &r proper notifrcatioddue publicity of the vacancy and should not
: 173:
20
20.1
All the fecommendationson administrativerefom will work only
if a proper training programme to effect necessary changes in the work ethos of
government officials is designed and implemented. The prcrposed re-structuring
of the government offices and work procedures would cause a large scale redeployment of existing staff-especially thosc in group 'D'and 'C'categories -who
will have to be retrained for taking up new jobs: In the new environment with
cmphasis on "customer orientation", attitudinal changes in the supenisol?: and
executive cadres would also be ncccssary. Besidcs, training facilities will also be
required for responding to rapid technological changes taking place at present
Canada
20.2
In countries where civil services reforms have been undertaken in
thc recent past, the importance of training as a significant means of improving the
human potential and increasing the efficiency of employees has been
acknowledged.
20.3
In Canada, despitc a series of cut-backs in operating budgets,
espenditurc on training and development has becn maintained at previous levels
or even increased. Employees arc given total freedom to opt far a training of thcir
choicc. A suhstantial parl of thc training effort is delegated to individual
dcpamncnts. Public servants undergoing training in colleges etc. in their own t h e
arc reimbursed part of the cost i n c u d thereon and emplojms are encouraged to
organise briefings and information sessions in their free time.
20.4
In the United Kingdom, grcater responsibility for training and
dcvclopmcnt of cmployccs is dclcgalcd to individual departments. The focus of
training has bccn shi\cd to bring about ncccssary changes in thc skills for bettk
cirsmcr scrvicc, Training coiuscs an: dcyiscd on the basis of practical experience
of di flcrent busincss houscs whid havc improved their performance through
propa training of thck staff Simultmmsly, emplo~-ccs
are encouraged to idcntifL
.\l , l l l I ~ ~ f i r
20.5
20.7
in the government, there arc various institutcs conducting differcnt
training programmes. The La1 Bahadur Shastri National Acadcmy of
Administration at Mussoorie imparts training to IAS oficcrs. Apart from
conducting training programmes for ftesh IAS probationers, it runs refmhcr
courses far senior IAS oflficcrs. A week-long vertically integrated (raining is also
being imparted annually (0 all IAS officers. Then: are other specialised institutions
likc the National Academy of Direct Taxes, Sardar Vallabhbhai Patel National
Police Academy, ctc. which provide training ta oficcrs of the IPS/Ccntral services.
These academies run foundational courses for direct rccnrits to the All India and
non-technical Central Group 'A' services.
20.8
oblrtitlod lion1 the traiticc's ISnot properly atialy~cd.atld this lcads to pcrpetuatioti
of incffcctivc training prograninics. Wliilc tildivldunl training divisions Ibr
importing specific training havc bccn crcatcd i n sonic largc niinistrics/dcpartm~ti~s.
tlicsc do not csist iii smallcr dcportmaits.
('Tt!ClllOn Of
IraoiitiR Groups
utidcr HHI)
( 'ontntoin cour.w.t
j w
oll .St*nwt!.t
20, I 1
20.13
DOP&T has already identified a number of institutes for
running general training programmes funded by it. These institutes stiould
run common courses for different services/departments so as to bring about
a better interaction and commonality of approach between them.
20 I5
Thcrc IS a crying nccd for csposing govcrrtnicnt eniplo>ccsto thc
work proccsscs. mode of functioning and prcssurcs csisting 111 privalc scclor Jobs
Accordingly we favour initiation of a new scheme of attachment of
Probationary executives of the Government t o certain selected and efficiently
run private sector organisations for short durations. During this attachment,
the probationers should be asked to perform some specific tasks which should
be assessed for incorporation in their appraisal sheets. Short duration
borkshops and seminars with top ranking managers o f private sector should
also be organised for senior executives of the government in order to
facilitate exchange o f ideas and experience.
20.16
New methods for imparting training should be evolved and, as
far as possible, employees should be allowed t o choose their own training
schedule.
20 17
Thcrc has to bc a dircct rclationsliip bet\\ccn thc carccr plan of 911
cmployce and thc training imparted to him Although thc present pcrformancc
apprzllsal fomi has a colunin for training undcrgonc and futurc lrariiipg nccds, not
much unportancc IS attachcd to it We recommend that various training courses
undergone by an employee should be counted for assigning proper gradings
at the time of promotion abd deputation to posts should be linked to the
officer having successfully completed training in a relhted field. Besides,
refresher training courses tailormade for honing the skills required for
handling specific levels may be conducted at regular intervals. All officials,
after putting in specified years of service, should undergo these courses
mandatorily, followed by a test. Employees who fail to clear the test even
atler two attempts should be classified as unfit for promotion. Furthermore,
certain prestigious courses should be evolved on the Staff College pattern in
the defence services, to which only officers whose performance has
consistently been outstanding and who have been identified as potential
leaders for the future are sent. Such officers, on successful completion of the
training, should be picked up for manning the most sensitive and important
assignments in the departments.
I*Oreipitraining
20 18
Thcrc is a clamour amongst govcrnmcnt officials to rush for any
kind of forcign training. irrcspcctivc of thc fact whclhcr i t IS rclatcd to thcir work
or not This tcndcnc! nccds to bc curbed We recommend that government
officials should be sent only to such foreign courses and training as have a
direct relationship to their work and ctin he used for developirig their skills
further.
20. I!)
20 i9
In view of changes envisagod in thc functioning of *. ie gowrruncnt.
there w11 be need for carrying out refresher courses for executn es at all levels,
for effecting attitudinal changes to prepare them'for taking up the role of
"facilitators" instead of being mere regulators.
Troming of
C~CUIlWS
us
focilrtators
SP-1
mining
Feedback
of
20.20
In the case of professional scrvices like medical and engnieering,
here ISa need to introduce a proper training schedule at the Middle level for
broadening their horizons, updating their technical skills and fitting them for
higher policy assignments. Similarly, in generalist services, there may be B
need to reorient them towards broad sectoral specialisations at a certain
stage in their careers.
20.2 1
181
Objectiw
21.1
Perfomance Appraisal covers a broad ground and could bc
dcfined as the overall methodology by which an oqpnisation is cntitled to asscss
thc performanceand capability of an individual cmploycc. Such-appraisal is made
c v c n day. every hour. every minutc by thc supcriors, collcagucs, subordinates,
clients. the courts, the mcdia, membcrs of thc public. Orgaiiisations have periodic
rcvim n&qy or are monitoring pcrformmcc through which the pcrformancc of
m d v i d d oficers can be adjudged. But thc chicf. most commonly used, \vcapon
IS the -4nnual Confidential Report.
21.2
w a n t s provide the basic inputs for asscssing thcir suitability for being confirmcd
2 I .j
Major changes wcrc introduccd-in thc systcm of wiling thc
confidcntial reports on three occasions in thc past in 1975, 1978 and 1986. Thc
format of thc Report currently in forcc was introduccd in 1986 after detailcd
&liberations in a workshop organiscd in the contcxt of ccrtain demands from thc
Stan Sidc in the National Council of thc Joint Consultativc Machincq that thcrc
sliould bc grcatcr opcnncss in thc s!stcml asscssnicnt of thc fitncss of lower Icvcl
fitioimrics fpr promotion should bc dispciiscd with, ctc. This format is based on
thc conccpt of managcmcntby objcctivcs in govcnimc~tand is thc outcomc of an
and achicvctncnt-oricntcd. It cnvisagcs
attcmpt to n i k c thc s\.stcni morc obj~ctiv~
the cvolution of ncw work culturc based on pcrfomncc end rcsults and thc
aiscssnicni is. thcrcforc. both quantitativc and qualitativc. rnstructmns currcntly
i n force also providc that the rcporls on Group ' D employes nccd-nol bc
maintained if they are wt emplecd on sensitive jobs
I)i.pEcuitinnancuk
. F i f i e d cusc's
Our views
I
I
2 1 .J
We have recei\d a number of suggestions that the Annual
Confidential Reports should be discontinucd. This has been justified on the ground
that the system is defective and causes a great deal of dissatisfaction to the
cmplg-ees and that, instead of achieving the primant objective of improving
cmployxs in a positive manner, it has become an instrument of harm+miat and
victimisation. Other suggestions in this reg& are that (a) the fcports should be
witten only during the initial ten years of service of an employee and discontinued
tlicrcllfter; (b) the system may be retained only in respect of emplqecs in Groups
A' and * B and such of thoseGroup 'C'employees as arc eligible for promotion to
Group 'B' posts; and (c) the reports should be discontinued in rcspcct of posts to
which promtions arc made entirely on the basis of seniority-cum-fit, i.e. b?
the non-selection method;
21.5
Quiiobviously, in the absence of other efkctive methods of
performmceappniul, itwould'not be desirable to restrict the writing of t k
Annual Confidential Reports only during the initial years of an employe's
.%tmttoT oJ~
suggestimis
2 1 .o
There is n widcsprcad dcmand ,for greater openness and
transparency in performance appraisal so as to clim'nate, as far as possible, any
subjectivity in rcporting. Somc of thc suggestions rcceived by us in this connection
I83
are: (a) the contents of the reports should bk disclosed to the employee concerned
so that he is aware of his capabilities and shortcomings and can strive to improve
his pcrformance; (b) the performance of an entire tcam should be assesscd
whenever m e s s a r y ; (c) employees should be assesscd not only by their superiors
but also b.! thcir colleagues and subordinates: and (d) additional monetary benefits
should bc provided for emvloyces whose performance is consistently of a high
order and who are graded as such. It has also been urged that more than one report
with an average grading should be treated as adversc and communicated to the
employee concerned. A few have also suggested, on the other hand, that the
grading of employees in the reports should be dispensed with and the reports
confined only to a general appraisal of an employce's performancc during the year.
.Vodal Afitiistw's
views
2 1.7
The Department of Personnel and Training appears to be averse
to the communication of an average report to an employcc on the ground that
"average" performance is not considered to be adierse though it IS not
complimentary It also appears that the demand for reports on performance of
employees being open documents was considered in the early eighties, when the
concept of an opeii system was not favoured Instead. the present system which
provides for a self appraisal by the cmployees themselves and assessment at tvo
levels by the Reporting and Reviewing Officers \\asconsidered to bc suitable for
our conditions. According to the Department, this has been working reasonably
\vet
We find that there is already partial openness in the Armed Forces
in the system of appraisal of the performance of Officers, who arc shown the
assessment of their performance, excluding the obscmations on their fitness for
promotion. Openness of vaqing degree has been introduced by the State
Goveinments of Kerala, Tamil Nadu and West Bengal. Some of the public
cnterprises have also introduced a participative system of performance appraisal
for t&ir Executives. The trend internationally is also to place a greater emphasis
on detailed job assessment of every employee Bnd understanding betwccn a
manager and his suborbates about their duties and responsibilities, the appraisal
of an employee's performance and contribution now takes place on parameters
kcown and agreed upon by the employee. This enables thc manager to be more
responsive to the organisationd dc,nands and is understood to result in a more
satisfied and productive work force. The traditional approach to perforniance
appraisal, which is primarily concerned with the past and usually leads to salary
review or promotion, is being replaced by a new approach, a fonvard looking
process kno\vn as Self Development Review, having its primary emphasis on the
future of thc employees and the organisation.
21.8
Our
recommmdatiotrs
(iradurg of overall
prrjrmmicr
21.9
In order to keep pace with the significant changes taking place
globally, and in Ihc contcxt of our cmphasis on increasing cmployecs' productivity
and relating increments to performance, we are of the view that certain changes
in the present system of employees' appraisal are called for. Our
rccommcndations on the reforms necessary are contained in the succeeding
paragraphs.
2 1.1 0
Under thc present system ofgradmg cniployccs as "Outstanding",
"Vcry Good"."Good"."Avcragc", or "Poor". thc fincr and morc subilc distinctions
bctwccn differcnt cmplo\.Ccs arc not readily disccrniblc For instancc. an cmployce
may not qualify lo bc graded outslanciing. but his pcrforniancc may wcll have bccn
184
shades bcttcr than increly very good, which would rightly jWtiFj' his being
considered supcnor to allother employee who May ha\.e earned only a very good
grading Fiiicr distiiictioris in grading would bc of considcrable utility in ensuring
that the most dcscnifig among different employees arc clevated to posts,
promotions to which are based on selection and mcrit. These would be of
pruiicular relevancc in the case of appointments to esecutivc and senior duty posts.
A more exhaustive and comprehensive assessment of personnel based on a pointrating sistem is already in voguc in the Central Policc Organisations and the
.4rined Forces,and cven individual traits and attributes are measured against a ten'point scaie The grading systeni followed in respect of civilians employees is,
ho\vever. somewhat restrietcd in its scopc and ambit
f h d i n x ' m i .I0
poorI vcaL
21, J 1
In order to remedy this deficienq in the present system. grading
of oficers on a ten-point scale could be introduced for the E x e c d v e cadrcs.
This need not, however, be as comprehensive as in the Armed Forces or the
Central Potite Organisations but could be confined onkjr to the fiilal, overall
gradihg. h e present system may, however, be rerained without any change
in respect of all other employees below the level of Exechtives.
'
k t t L ig
of 6 mil 21: 12
kff
It' f
md
TrmrJpare'lc~
~~p#*lll:ess
2 1 I4 .
Iri order to ensure transparency in reporting and to sene the
intended objective of providing a feedback to cmpioyees to improve their
perfommce, partial openness may be desirable. For this purpose, the find
grading of employees, as recorded in the confidential reports, should be
conveyed to them Besides. grading of an employee as "Average" is as h m f u l
as ad\crsc entries in the reports This is sometimes resorted to by Reporting
Officcrs m order to owcome the associated problem of communicating an adverse
gading to the employee concerned and having to justifi such grading. In the
proccss. the employee rcported upon is denied the opportunity to bc aware of the
quality of his pcrfonnance and contribution, so as to enable him to improve or even
to represent against the grading In the circumstances, we are of the view that
grading of an employee as an average performer should be treatcd as adverse
and should be communicated. In fact, it may even be desirable to treat any
grading below the benchmark prescribed for promotion to the next higher
post as adverse and to communicate such grading t o the employee concerned
so as to afford him an opportunity to represent against an assessment that
mag adversely affect his career advancement. While receiving the
185
ApPraisu'fo
connnnous
process
.4ssrssment to
rncfude7eums
and deparftnent's
perjorniance
2 1.16
To be realistic and objective, performance appraisal should
not also confine itse1f;merely to an assessment of the traits and attributes of
an individual employee. It has to be recogniscd that an employee does not
function in isolation and that his performance and contribution are often influenced
by the team and work environment in which he is required to function. Reporting
and Reviewing Officers should, therefore, also ecdeavour to assess the
performance of an individual employee in the overall context of the
performance of his team including his individual performance and
contribution as compared to that of other team members, as well as the entire
office or department, identifying clearly the constraints in achieving the
stated goals and objectives. The employee should thereafter be graded,
assigning appropriate weightage for the contribution of the team and the
ofticeldepartment with reference to his own functional responsibilities.
Inconsistencies in
reporting
2 1.1 7
If the entries in the confidential report of an employee for any
particular year or period are inconsistent or entirely at variance with those
recorded in the reports of earlier years, which could be attributable to bias or
subjectivity on the part of the Reporting or Reviewing Officer, the employee
concerned should have the right to get himself transferred to work under
another Reviewing or Reporting Officer. In such a situation, the report in
question should not be taken into account for determining the employee's
suitability for promotion, increments, etc. However, if the reports for the
subsequent year or periods are also similarly adverse, the earlier report
should not be ignored.
Assessment of
2 1.18
Normally, Confidential Reports of the immediately preceding
five years alone should be considered by Departmental Promotion
Committees to assess the suitability of employees for career advancement and
other benefits, unless reference to reports of carlier years is considercd to bc
absolutcl!. essential.
suita6ifi!yfor
advancement and
orher benejts
Quitiquenniaf
Review
21 19
At present, an exclusivc rcliancc IS placed on thc Annual
Confidential Reports for assessing the personality traits and performance of
mdvidual cniploym For obwous reasons, thc rcports may not always reflect fully
all the achweinents and contribution of an employce or aspects of his functioning
that may not be cntlrcly complimentary or praiseworthy We are, therefore, of the
view that it would also be desitable to introduce a system of quinquennial
review of the performance of personnel in the Executive (Group 'A') cadres
by a group of officers. Apart from affording an opportunity to the cxeculivcs
conccrncd to prcsent their achievcmcnts bcforc tlic group and to dwell upon thc
186
constraints under which they havc had to function, such occasions should also be
utiliscd to apprise them of any adverse reports on iheir functioning as may have
bccn rcflccted in m d a rcpons, anon)mous complaints, etc. and to ascertain their
versions on such reports. In our opinion, the quinquennial review would reveal
iarious facts of an exccutivc's pcrsonaiity that are generally not discernible from
thc confidential report, howsocvcr objectively these may have bdcn witten. This
would also be useful in dctcrmining whether the executives concerned arc fit for
further retcntion in service or whether they should be compulsorily retired by
invoking the provisions of Fundamental Rule 56 (i). The group of officers to be
associatcd with the review should be senior to the executives concerned and should
have been closely associated with the departments or divisions ir which the
executives had worked during h e period to which it relates.
coIcflJ~lll,l~
21 20
Counselling of employees, which would be of particular
significance in the case of employees adversely reported upon. should also
form an integral part of performance appraisal. This could be donc b! a group
of officers intimately acquaintcd \\ ith the work of the Concerned cmployee,
including the Reporting and Revicn ing Officers The counselling would serve the
twinobjectives of providing the necessary feedback to the employees and
improving their future performance
e h 5
21.21
A ma;or problem brought to our notice is that meetings of
Departmental Promotion Committees are not held in many cases because of tlie
non-availability of the Annual Confidential Reports attributable to thcir nonsubmission by the Reporting or Reviewing Officers, which results in promotion?
bcuig deferred,causing avoidablehardship to the employees concerned We are of
thc firm view that employees should not suffer because af the failure of the
Rcporting or Reviewing Officers to ensure timely finalisation of the appraisals
Apart from obtaining special reports in such cases, it should be ensured that
the schedule prescribed for the submission of self-apprraisals and confidential
reports i s scrupulously adhered to by all concerned. The concerned
employees should also be informed of the non-receipt of reports for any
particular period so that they could also make efforts to have them written.
The present instructions which envisage that the reports should be written
even if self-appraisals are not submitted by the employees to be reported
upon should be strictly enforced. Delays on the part of Reporting Officers
should also be adversely commented upon in their Confidential Reports.
Computerisation of data relating to Annual Confidential Reports of
employees by all departments wodd greatly facilitate proper monitoring and
follow-up action For ihis purpose, every office should establish a Confidential
Cell as has already been donc by certain orgmisations like thc Border Sccurit?
Force, which has set up a computcrised Personnel Management lnforniation
S!stcm.
187 :
I INTRODUCTION I
~
22. I
The problem of ensuring adequate career progression of the
employees in govemmcnt scrvicc is a perennial one that cvcn Pay Commission has
considered. Reasonablc promotion opportunities ranging from 2 to 4 promotions
in om's.Colreerhavc gcncrally been accepted as a norm. Similarly. the principlc that
the morc competcnt amongst the employxs should get fastcr promotion has also
become an accepted principle and is reflected in the adoption of the Limitcd
Departmental Competitivc Examination (LDCE) as a method of promotion by
different dcpartmcnts. Also, it is precisely on this considcratioii that a concept of
'selection' in promotion has been introduced as against the predominant method of
promotion by seniority subject to rejection of unfit, which is ;Cno\m as a 'NonSelection' method of promotion. A concept of bench-mark for grading of Annual
CunfidentialReports for promotim purposes has also been introdud with a view
to d n g that merit is given due @ d d m in promotion. However, is respect
of a majority of Government servants, promotion is enlircly depeident on
availability of vacancies in the him grades. b spite of the foimulation of detailed
principks to sift the brighter amongst the employees for providing faster
promotions, promotions arc made generally on seniority basis, as even in case of
selection,most oftiic employees are able to obtain thc requircd bcnch-mark in the
Confidential Report.
Sccotid C'PC
I88
\\as further rcgulatcd by prcscribing quotas for direct recruitmcnt and promotion
determined in the best interest of cfficicncy of the public servicc. Thc Second Pal
Commission. thcrcfore. gave prccedencc to the functional rcquiremcnt of pubilc
service over the career prospects of government scrvants for determining cadrc
structure of scrviccs
I'ttrrd t .fJ(.
I;olrrtll
C:Pc
22.3
The Third Pay Commission was f a d with the demand of
restructuring cadres so as to ensure at least two promotions in onc's career. It
considcrcd the position of Group 'C'and 'D'cadres as acute and made specific
rccommcndationsfot improvcment in their promotion pmpects, e.g. extension of
study leave to Group 'C' and 'D'employees. age relaxation, creation of posts of
Record Kcepers. review of the need for direct recruitment at certain internieciiatc
IcvcIs in Group 'C',hroduction of dcpartmcntal cxam/nations and increase in
existing promotion quotas. Thc Commission was, however, convinced that
addtionill posts should be justified on the basis of functional needs and should not
be created as an easy w a y of improving promotion prospects and for rclieoing
stagnation. Standard of recruitment was not recommended to be diluted merely to
open up promotion avenues.
22.4
For the problem of stagnation and inadquate promotion
opportunities,the Fourth Central Pay Commission suggested provision of a rational
cadre structure and elongated pay scales as solutions. Simultmeously, the
Commission also felt that the pstem of career progression should be consistent
with the functional needs and requirements of the organisation. It, thereforc,
refrained f?om laying down any rigid formulation about the number of promotions
that an employce should get in his career and the length of service that should
qualifi for'time-bound promotions. Cadre reviews were, therefore, recommended
after regular intervals with a view to idcntifjing the grades/posts which could be
upgraded taking into account their duties and responsibilities, consistent with the
riccd to promote efficiency in administration.
('orlrc. R C ~ ~ I C W 2
. ~1
189
Parilioci o$Group
51 'Sqvices
22.6
Things have been a shadc better for the organiscd Group ' A
Central Scrvices, because thc Department of Personnel & Training, which is thc
nodal agency for personnel management policies, accepted the responsibility for
the periodic review of their cadre structure. The Department issued detailed
gudelines on various aspects of cadrc review of Gtoup 'A' Services However, the
position about cadre revicwr i c not cnifom cvcn in these Services. Whereas 3-4
cadre reviews had been conducted in a number of Group 'A' Central Services by
1992, only one or two cadrc reviews had bcen conducted in the comparatively
largcr number of other Group 'A' services.
<;ovrrtinietrr
I!/
Hnjlrsrlrutt
( r m i * t ~ i m r,
t!
!~ /
It ;..%IF,*lr~cl/
22.8
In a good number of States like Arunachal Pradcsh, Kerala,
Rajasthan, Kamataka, Punjab, H q a n a and Himachal Pradesh. time-bound
promotion schemeshave been introduced In Arunachal Pradesh, all employees are
placed in the next higher grade afler completion of 13 years oC senice in a lower
grade. After another 7 years of service or a total of 20 years servicc,thcj*are
entitled to the next higher grade. Similarly, in Kamataka, threc: time-bound
promotions are provided after 10,20 and 25 years of service in lower grades. In
Punjab,Haryana and Himachal Pradesh, two time-bound promotions arc cnsured
aftcr completion of 8 years and I5 years of service in the Iowr gradcs
22.9
The Government of Rajasthan introduced a schemc of timc-bound
promotion in January, 1992. pcrniitting thrcx: selection gradcs to 11s ('lass IV.
ministerial and subordinate service employees and those holding isolatcd'posts on
completion of 9, 18 and 27 ycafs of senice. For eligibility under t!ic schcinc,
restrictions were imposed on its applicabiity to posts. the mclsimum of thc scalc of
which was Rs 3 2 0 as in 1989. Thc third sclcction grade is givcn only if thc first
two selection grades wcrc in scalcs of pay bclow h e scalc oi' Rs.2200-40OC
Selcclion grades arc giver? on!\.to those cmployccs whosc S C ~ I C Crccortl 15
'satisfactory'. Thc gait of sclcction yadc docs not affcct thc scriiority I;; thc cndrc
nor tlic sanctioned strength of each catcgoq of posts in the cadre
22 I {)
The Govcmrncnt of Wcst Bcngal introrfuccd a schcr?ic for
improvcrncnt of carccr pr~spcctsof its cmployccs in I000 I:ndcr ihis schcmc.
Governxpent employees were ellowed to move to the next two higher grades on
completion of 10 years and 20 years of satisfactory and continuoqs servicc.
However, when an employee becomes due for promotion in the normal course in
the fust higher scale with-reference to the current promotion policy and quota, he
will not be eligible for any fixatiorr benefit for the second time.
Govenrment o/
Gujaraf
22.1 1
The State Government of Gujarat introduced a scheme of three
time-bound promotions to higher grades for its employees in June, 1987 to deal
with the problem of stagnation and restricted chances of promotion in different
cadres. The scheme ims applicable to all posts having pay scales, the maximum of
which did not c x c d Rs.3500. Higher grades were to be given after completion
of 9, 18 and 27 years of service. The next higher grade was specified for each
grade for this piirpose In c a m where the promotion posts were in more than one
pay scalc, the Iswest of such scale was taken into account for permitting
promobons under the scheme. The applicable higher pay scalc were also specified
for posts not having any higher promotion grades. The scheme is limited in a
manner that the highest scale admissible under the scheme does not exceed
Rs.2500-4200 or Rs 2200-4000, which is admissible on pronotion from the scale
of Rs.2000-3500 The appointing authority for the posts carrying higher pay
scales is the authority who is competent to grant a higher pay scale to eligible
employees, provided the employee is fit for promotion on the basis of his overall
perfowance, qualification and passing of an examination wherever this is
prescribed. Any employee getting a higher pay scale is required to give an
undertaking that he will not refuse higher regular proinotion as and when it
becomes due and if he declines the promotion, he shall forfeit the right to hold the
higher pay scale under the scheme. The combined total cadre strengh continues
to be the same even after the grant of the higher pay scale and those granted higher
pay scales continue to perform the same duties.
Government 01
22.12
In Kerala, the scheme for time bound higher grades to State
Government employees was first introduced in 1973 and the scheme has been
further modified with effect from 1993. Three higher grades to be given &r
completionof 10,20 and 25 years of service are well defined. This scheme applies
to Group 'D' posts. However, those initial
ointed to posts in pay scales
ranging from Rs.950-1500 to Rs.2375-350
anted only t w time-bound
higher grades on completion of 12 years and 24 years of service. Those directly
recruited to posts in the scale of Rs.2200-4000 are given only one higher grade on
completion of 12 years of service. Besides, such appointees are entitled to this
benefit only if a qualified senior not directly recruited has been promoted under the
scheme. Those who are regularly promoted or appointed to a higher post within
the period specified for time-bound promotion to a higher grade arenot eligible for
the time-bound hrgher grade. In case the pay scale of the regular post is higher than
the time-bound higher grade prescribed, the pay on promotion to the regular post
is fixed with reference to the basic pay notionally arrived at in the lower post
Axmy service is reckoned for computing the qualifjhg servicc for the grant of the
first higher gradc However, civilian service in the Army is not coantcd.
Kernla
Position in
hhifs Secfor
I 'rrcL.rtakings
22.13
promotion schemes but have restricted them only to lower levels, at the most up to
the clerical level. National Fertilizas Limited has introduced a five year promotion
scheme for workers who are allowed the ncst higher scalc on completion of 5 years
of service in the esisting scale, if they are not promoted in the normal course for
want of a vacancy Thc facility is allowed only oncc during the entire service
Employees up to thc level of Additiona! Managcrs arc dividd into trio goups
The promotions wthin thc group arc not related to vacancics but promotions from
one group to another arc made on the occurrcncc of vacancics In Rashtriya lspat
Nigam, the time-bound schcmc covers employees at junior Icvcl and 75% of the
incumbents in a gradc are provided the ncst highcr gradcs on meritorious
completion of three ycars of senice. Promotions to scnior/top Ic\.el posts are
vacancy b ascd
Eepormtrtit of
I'OSIS
22.14
In thc Department of Posts, a "Timc. Bound O X Promotion"
Scheme (TBOP)was introduced in the year 1983 for cmployccs in the basic
operative cadres, and the were placed in.the nest highcr gradc aftcr completion of
16 years of scmice subject to their being found fit by a DPC. The officials so
promoted continued t9 perform their earlier duties till such tinic as the:. wcrc placed
in regular supmisor). posts in their turn. The schcmc w a s subscqucntl!. estended
to the staff of administrativc offices and regional offices in the ficld in 1993 and
practically all operative Group 'C'and 'Demployees of thc department, excluding
officials of Inspectorial Cadre, Stenographers. somc isolatcd post holders having
analogous posts in other Dcparfmentshlinistries of thc Govcrnmcnt and Group ' D
staff of administrativeofficcs?were covered under thc Schcmc. Thc Department
of PosG introduced another scheme of promotion callcd " Bicnnial Cadre Review
" (BCR)for all the employees, who were covered under the carlier TBOP Scheme.
The review is done twice a year to provide a second promotion on completion of
26 years of service in the grade. The stated objective of thc scheme is to provide
promotion opportunities for the staff on the basis of functional justification. The
required number of posts needed for such promotion arc rclcased in half yearly
instaiments on 1st January and 1st July, to provide promotion to those who are
eligible. Creation of posts for the purpose is done by the Heads of Circles in
consultation with Integrated Financial Advisors. Matching Savings were provided
for introduction of the two schemes. For TBOP,5% reduction in operative posts
and 15% reduction'insupervisoryposts were offered, whereas in BCR, this cut was
1% and 5% respectively.
22.15
The promotion scheme in the Department of Posts changed the
principle of career progrcssion of Group 'C' and ' D staff and introduced a new
d\namics in personnel management and field operations Hithcrto. thc promotion
was linked to the post and with promotion the official \\'as assuming higher
responsibility alongwith availing himself of a highcr scalc of pa!, Thcre was clear
distinction betwecn opcrative and supervison posts \vhich ivas conducive for
command and control in field managmcent. Hoivcver, sincc thc number of
supervisory posts were vcry f x , nearly 92.5% of thc cmplo!ws in Group 'C' used
to retire in thc entry scalc of service The promotion schcnics ha1.c rcmcdied this
unsatisfactory situation to a great extent so that a Postal Assistant rccruited in thc
scale of pay of Rs.975-I660 is assured of gctting promotion to ncst highcr scales
of Rd400-2300 and Rs.1600-2660 after 16 and 26 ycars of'scnkc rcspcctiicly.
22 16
Thc department has, hotvcvcr, notcd ccrtain anomalics and
functionai problcrns i n thc iniplcmcntation of thc schcmc Whilc anornalics n'crc
22.17
Introduction of TBOP and BCR schemes in thc dcpartmcnt has
had a mixed effect. Whle it ensured reasonable career progrcssion for cmplo>'ccs,
it also brought certain operational problems. The Department IS t q h g to
overcome these problems by modermsing services, inducting tcchnolog,. upgrading
skills, ek. The department is also trying to build in a distinct supenison. cadrc to
man supervisory posts by a merit-based fast track promotion, to mcritorious
officials. who upgrade their skills and acquire new skills.
/ ) l ~ ; ~ < l r mqf
olt
t~twll\l
22. 18
Ministry of Health and Family Welfare has introduced a time
bound promotion scheme for its Doctors including various sub-cadres of Central
Health Services. In case of General Duty Medical Officer, whose cadre structure
is on'thc lines of an organised Group 'A' Service, promotion is ensured up to the
level of Chief Medical Officer (Rs.3700-5000) in a total period of 10 years.
Promotion to the level of Senior Medical Oficer is ensured in four years, while
another 6 years are n d e d for promotion to Chief Medical Officer (Rs.3700-5000)
level. An alternative of a combined service of 10 years Df which at least 2 'years
should be as Senior iMedica1 Officer is also provided. Promotions to nest higher
grades are without any consideration about availability of posts in the higher grade.
Thus, if an officer is promoted,the post held by him is automatically upgraded.
The promotion to the higher grade is made on seniority-cumfitness basis of those
who clear the bench mark of 'Good'.Promotion to the grade of Rs.4500-5700is
restricted to 15% of senior duty posts i.e. all duty posts at the level of Senior Time
Scale and above. This provision in CHS is at par with the provision in other
organised Group '& Services.
.\le~frc.ol
Scirt1/ists
22.20
The Supreme Court in Writ Petition (Civil) No. I0 I8 of 1989,
Dr. Ms.O.Z. Hussain versus Union of India gave a direction for pro\.ision of
promotion avenues on similar fines to Group 'A' Gazetted Non-Medical Scientists
working in different' organisations under the Ministry of Health' and Faniily
Welfare. Tkc MinisQ of I.Icalth and Family Welfare, thcrcfore, formulated the
Department of Health (Group 'A' - Gazetted Non-Medical Scientific and Technical
Posts) In-situ Promotion Rules, 1990. The scheme organised all Group 'A'
Scicntists and Technical Officers who were working on regular basis on thc date
193
of commcIlctmult of the scheme into a cadre and divided thcm into four levels
namely Scientist Level 1 (Rs.2200-4000), Scientist Level 2 (Rs.3000-4500),
Scientist Level 3 (Rs.3700-5000)and Scientist Level 4 (Rs.4500-5700)for the
limited purpose of applying the in-situ promotion scheme to thcm.
22.21
The schenic pizvidcs for iii-sku promotion to a scientific or
technicalofficer holding a Group 'A' post up to and including the grade of Scientist
Level 4 in the pay scale of Rs.4500-5700.A five year period is prescribed for
promotion from onc level to mothcr. In addition, the scheme also provides for 8
floatingposts in Scientist level 5 in the scale of Rs.5900-6700and those having a
minimum of three years service in the scale of Rs.4500-5700are eligible for
pmotion to thesc posts. Whcrevcr an Off~iceris promoted under thcse rules, the
grade of the post immcdiatcly hcld by him is upgraded to the nest higher level to
which he has been promoted. The post, however. reverts to thc original level on its
vacation by the oficer holding it. In cases where an oficcr continues to get
promoted to hgher grades, the post vacated by him reverts to the level of original
recruitment to the posts.
Enrpanelmentfor
JnittrSecre'a~
Empanelment fw
Additional
Secretmy'
Sperm1 Secretan,
Secretaty
22-22
There is a practice of drawing up a suitability list (known as
panel) of eligible oflicers from the All India Services and Group 'A' Services
participating in the Central Staffing Scheme. This exercise is normally conducted
on an a n n d basis, by consideringofficers with the same year of allotment together
as one group. At the level of posts of Joint Secretaq and equivalent, the Civil
Services Board (CSB) finalises the panel for submission to the Appointments
Committeeof the Cabinet (ACC). In this wok, the CSB is assisted by a Screening
committeeof Secretaries. Thc panel approved by the ACC on the recommendation
of the CSB is utilised for making appointments to posts under the Government of
India, but inclusion in the panel does not confct any right to such appointment
unde~the Centre. Such appointments for posts of Director and above have to be
again approved by the ACC. The cases ofsuch officers who are not included in
any panel in a particular year are reviewed after a period of two years. Another
such review can be conducted &er a further penod of two ycars. A special review
can also be ma& in the case of any oflicer whose Confidential Report undergoes
a material change as a result of representation being accepted against recording of
adverse commentsin hs Confidential Report. The cadrc controlling authorities are
informed about the namcs of Officers under their administrative control, as and
when they are included in the panel. Stringent criteria of selection arc applied to
members of all the services.
22.23
22.24
For manning thc posts of Under Secrehuy, Deputy Secretary,
Director and Joint sarctary, the clighility of offictrs for holding thesc posts starts
when they havc completcd 5 yxrs, 9 ycars, 14 years and 17 +ars of servicc in
group *A@,
irrespective of the service to which they belong.
IN SITU PROMOTION
Career
ah*t=~tfm
Groups T'and
'LYcmplr+wes
22.25
A sdremt of in-situ pnwnotron for Groups'C' and 'D'empbyax
was introduocd in I 99I to provide at Icast onegmnotion grad^ to those who are
directly recruited to a Group 'C' or *D'
post and who could not get a promotiOn
wen aftcrreadungthe maKimmof the scale. such persons are placed in the next
higher grade available in their nmnd lint of promotion a f k following due proctss
of promotion. In cases where a post is filled both by direct recruitment and
promotion, a promoted employee senior to a directly recruited one will also @
promoted in case a pusonjunior to him is promoted to a highcr scale under the
scheme. The scheme is also cxt#ldcd to industrial workers. This is in fact a
scheme for removal of staptma and can hardly be regarded as a career
advancement or promotion scheme.
FLEXIBLE COMPLEMENTINGSCHEME
GCtIeral
22.26
A Flexible- C
. schant(FC3)wasmtrOQIcadin 1983
on the recommendation of the Third Central Pay Commission to ensure that
promotion of an offccr in a Scientifm Scrvict h n one grade to die next higher
grade took place after a prcscnbcd period of service on the basis of merit and
ability imspc&ve ofthe availability of a vacancy m the higher grade. The scheme
is available now in many of the seimtific depsrtments,organisations and
institutions under the Govcmment of India. The Scheme was originally made
applicable to pwuMncl in three critical scales ( Jrplior Time Scale, Senior Time
Scale, and Junior Administrative Grade in Group
scrvidcadrts). In
csccptional cases, it was also extended up to personnel in the non-functional
stledion Gr& (Rs.4500-5700).The cadrc strength of the entire cadre wvas fixed
on the basis of functional grounds and there was complete interchangeability of
posts beh\ccn JTS and STS p v i d e d number of incumbents in the two grades put
together did not esceed the combined strength of tww grades. The upward
nmvenmt to JAG was also without any refto availability of vacancies but
it was subject to the condition that total number of posts so filled in the grade did
not exceed 30% of the total strength of the cadrt upto J'AG level. In case the
scheme isas cctarded to NFSG Icvel, the total number of posts that could be filled
in thc grade wvm ngain 30% of the combined strength of JAG and NFSG put
togethcr.
Promotion
-omredwe
22.27
promotiOn under the scheme was made on the basis of 5 yearly
asscsslncnt of eiigible Otficers by a Board, which Bssesscd the technical
performance on the basis of quantity and quality of research and even conducted
an interview forthcprrrpost. Promotion was made in situ and was personal to the
concanedofficcr and did not result in any vacancy in the lo'RmfgracJc. Thepost,
195
howcvcr, rcvcrlcd to the original level once it was vacated at higher !evel.
11Nwbacks
22.28
'The Schcme was fiuther modified by many d e p m c n t s later to
provide fill1 flexibility by removing restriction on the number of posts and now
prwides carax progression from the gradc of Rs. 22004000 uplo the h e 1 of Rs.
. .
5900-7300, coveriiig 5 -? x t k s i;. Sfcrciii i;-. giiIiis&utli
ccrtaln dcpartments
like Space, Atomic Energ; imd DRDO,the scheme had been cstendcd at Icvcls
other than Group 'A' also. Howcvcr, only a limited flexibility is allowed in other
grades as against full flcsibility in Group 'A' Services. Thc scheme, Lhcreforc,
suffers from drawbacks likc non-uniform application, differences in Ic\*cl of
appiication, variation in thc period of review (rcsidency pcriod), cstcnsion of
schemc to directly rccruitcd scientists in the Sccrctariat organisrttiom. etc.
I OUR
Assured Career
Progressioir
Scheme
RECOMMENDATlONS
22.29
R&D
Professionals
22.30.
In the above context, we recommend that the Flexible
Compkmenting Scheme of promotion should be extended to all Research and
Development Professionals working in Research and Development
Organisations and Departments dtclarad as Scientific and Technical in
Government of India. Thc csisting Flexibte Complementing Schcmc has been
examined by us in this contest and modifications have bum proposed separately
while dealing with Scientific and Technical Services.
the availability of a potit in a highcr grade on functional basis. The scheme will
provide reasonablc opportunity to all employees to move to highcr grades, within
a stipulated time frame.
Cndre Review
22.32
Introduction of thc Assured Career Progression Schcme (ACP)
shall howcvcr not cnd the need for adcquntc promotion avcnucs in otie's cadrc.
bascd on availability of highcr posts in thc hicrxchy. Thc nccd for regular cadre
reviews of each servicddepartment, as recommended by the Fourth CPC shall
COntinLte to hold good. The Department of Personnel and Training (DOP&T) has
already issued detailed guidelines on cadre management of Group 'A' Central
Services. The DOP&T itself conducts cadre reviews periodically once in 5 ycars,
and as per latest decision of the Committeeof Secretaries, this is to be done to cater
to the functional needs of the service and career qspirations of its m e m h .
Demands have been made to the Commission for periodical and speadler cadre
reviews for all ServicedDepartments in a manner that they meet the career
aspirations of the employees and remove inter-service disparities in promotion
prospects. We, therefore, recommend that the cadre review mechanism
should be reviewed so as to bring uniformity in the career prospects 01dl
Group 'A' Central Services.
'c'
Cndrr &view
sliould reveal
srtrplns
Ixw&I'
revirw
cadre
22.34
The Cadre review exercise should also take into account our
general recommendations on right-sizing of manpower in Government. Since
in a time frame of 10 years, a rcduction of 30% of thc esisting rnanpowcr is
recommendcd, the cadre reviews should ensure that an across the board
reduction of 3% of the manpower per year is achieved. Surplus manpower
should, therefore, be identified as part of the cadre review exercise.
22.35
The DOP&T Training should also assume the responsibiIity for
monitoring the progress of cadre reviews of diffment offices and different cadres
under the Ministries so as to ensure that these are conducted every 5 years. In
respect of those Group 'B'and 'C cadres, which are spread over in different
197
22.36
Making cadre
review
jwticia ble
22.37
The existing mechanism of work study by the Staff Inspection
Unit of the Department of Expenditureshould be dovetailed with the exercise
of cadre review so that work-studies and cadre reviews are conducted
concurrently by maintaining a balance in the functional requirements of a
post and the career aspirations of the members of the cadre. In this context,
it may be desirable to transfer the Staff Inspection Unit functions to
Department of Administrative Reforms
Selection Grade
22.38
Provision of selection grades has been it moderating mechanism
through which disparities in promotion prospects available in comparable grades
were removed. The Fourth CPC, howeser, recommended its discontinuance in
general and for group 'C'and 'Dposts in particular and suggested provision for
stagnation increment. The need for selection grade shall further diminish in thc
context of the Assured Career Progression (ACP) scheme recommended by us.
However,in certain services the nomenclatureof Selection Grade is uscd ordinarily
to represent a tier of the organised cadre./structure, e.g. Non-Functional Selection
Grade, Selection Grade in CSS (Rs.3700-5O00) or Commandant (Selection Grade)
in Central Police Organisations, etc. Selection Grades in such form may
continue for the prestnt but these also need to be reviewed. We would urge
the Government to conduct this review immediately so as to do away with the
concept of Selection Grade altogether.
Stagnation
22.39
RatianalisariOnof pay scales and the'Assured Career Progression
Scheme, rccammendi;dby us would considerably d u c e the need for stagnation
inazments. Hovmer, in certain cascs,stagnation at the maximum of the pay scale
may still occur. As such, after considcring thc demands made for liberalising the
provsion for sanction of stagnation increrncnts, we recommend that the existing
rules for grant of stagnation increments should continue. In case of
Executives, the facility should be available only to the grades to which it is
already available, subject to the condition that the basic pay plus the
stagnation increment should not exceed Rs.22,000/- per month in the revised
scales of pay.
In-nt
22.40
In the context of acute stagnation at various levels, a demand has
bear made to the Commission to incrcasc thc promotion quotas in differcnt gradcs.
particularly those in the higher grades. Dcmand has also been made that uacancics
undcr direct rccruitmcnt quota being not filled duc to ban on rccruitmcnt should bc
divcrlcd to promotion quota In this rcgard. wc fccl that it is not possiblc to niakc
any gcncral recommcndation to incrcasc thc promotion quota, as proportion of
promotion and dircct rccruitmcnt in any post/gradc is dcpcndcnt upon thc strcngth
of fdag d c . Howcvcr, a frcsh look can bc givcn to thc proporlion of promotion
1ox
22 41
Promotiono p ~ t i t to
s thost holdingisolated posts arc almost
mn-&tmt. S& such isolated posts are filled by dircct recruitment. incumbents
of these posts generallv retire in the same post to which they \wwe recruited.
Repnsa&im have
reoeival by the Commission that in many cases, isolated
posts'& created even when the nature of duties assigned to the post arc simlar to
those of a cadre post We, therefoft, f d that as a matter of policy, no isolated
post should be created sanctioned in htumin Government. Posts sanctioned
by MiiristrieslDep.rtmentsshould always be a part of some organised cadre.
I f cnltion of a single post is indispensable, and it cannot be part of an
22.42.
In the Assured Career Pmgession Scheme (ACP), wc have made
a provision fix fmancial upgradation to higher scale, even when there is no d e f d
hierarchy and we have termed it as dyqamic ACP. The dynamic Assured Carecr
Progression Scheme shall apply to isolated posts. We have tried to identie two
higher pay scales for each isolated post wherever feasible and whcfcvcr a demand
for improvement in promotion pmspccts has been made to the Commission.
Specificdesignations in tcrms of grades have also been indicated for such higher
scales. Howcver, if in ccttain cases, it has not been possible. !he
Ministry/Depattmcnt conccmed shall identi@ such scales on the basis of similar
posts in other departments for which we hme identified the higher scales. While
doing so, the different patterns approved for Secretariat and subordinate offices
should be kept in view. In case of Croup 'A' isolated posts, the next three
promotional scales shall be Senior Time Scale (Rs.3000-4500), Junior
Administrative Grade (Rs.3700-5000)and Non-Functional Selection Grade
(Rs.4500-5700).
H n I r . ~01
~ f i r ~ ~ t ir!fo t i
p l y or1
promotion
22.43
Dcmaiids haw bccn rcccived by thc Commission that financial
be&fits on promotion arc ven. nominal and dlcy ought to bc rcviscd; a minimum
of-IO%oddition in thc blsic pay should be ensured in casc of a promotion. Wc iue
of the view that thc minimum financial bcncfit on promotion should bc around 3%
of thc basic pay of thc cniploycc. The rule fm fixation of pay on promotion may
be amendcd to provide an addition of 3% of basic pay in the lower grade or one
incrunenl in lhc lo\\cr gradc whichever is higher, and then fixation at the next
stage in the higher pay scale This method should be applicable in all cases
where an employee is given a higher pay scale irrespective of the fact whether
assumption of higher responsibilities is involved or not.
199
Annexe 22.1
(hi)
deteminedwith ref-
(iv)
(v)
ivi)
200
(\~iil)
(is)
(xiii)
202
23 7
Wc should targct pcoplc ai \uungcr agcs. whcrr thc! arc still frcsh
from collcgc. thcy havc not lost tlrcir idcalisin. thcy arc not ovcnvhclmcd \vith thc
carcs of faniily.
23 m
In our targct z.udic;icc for carccr counsclling. wc must go for
young pcoplc who want to mmc into Govcrnmcnt smicc as thc best method of
puttmg in public servicc That is why Government scrvicc should ncvcr pay a
luxurious salary that may attraci thc wrong type of person
Once a pcrson i; recruited, there should be a clcar policy to subject
academic and pracbcal tests during his probation period, so that any
wrongly motivated persons who rmght have been able to smugglc thcrnsclves in can
bc got rid of with comparative case.
23.9
h m to -in
23.10
Thc non-monctay symbols of authority that cstablish the position
of an executive in the Government as a member of a ruling elite should not be
jettisoned. It is these outer c m b l ~ sthat create prcstigc and honour for
Govemmcnt assignments. Govcrnmcnt officials should bc treated with courtesy
and dignity,and not be SubJeded to public ridicule. That is why it is n e c e s s q not
to allow politicians to transfer senior officials prcmaturely without sufficient
reason.That is why there should be no senior posts in Gomnmcnt that have just
the pay and nothing else.
23.11
For civilian services too, thcrc should be a mechanism of nonmonetary rewards, as is prevalent in the military and police services. Fulsome
praise in public docs not cost anything, but it can be a vcq strong motivational
factor. All supen,isorsshould be t r d in the use of praisc. Therc should also be
Dstinguished Senice Awards and Extraordinary Servicc Awards for civilians, so
that they feel honoured for a life-time of dcvotcd scnricc as also for any highly
innovative and extraordinary act of theirs.
23.12
It has bear seen that leaderswho are positivc, dynamic, forthnght,
innovative, adaptable, enthusiastic, optimistic and willing to lcarn can provide a
tremendous momentum to any crganisation or institution that they lead. It is
unfortunate but true that in Government it is persons who arc negative, static,
tactrl, status quoist, rigid, sedate, pessimistic and pretending to be know-alls who
survive and reach the top. If we want the fmt variety of motivated people to be the
e have to hunt for thcm, choose them, protect thcm, encourage them and
leaders, w
lct them go ahead to do their own thing.
23 14
The age of entry to the Civil Services Examination should be
kept between 21 and 24 years, PS it used to be in the past Mcmbcrs of SCs:
STs OBCs ctc should, howcvcr, continuc to bc cligiblc for thc age rclaxations as
at prcscnt, with rcfcrcncc to the proposed ages of cntry Similar attcmpts to lower
thc agc of cntry should bc madc for all scn.iccs, cspccially at thc cxccutivc le\d
: 204
\Vc havc alrcad!. pegged the salaries at a level lower than the
private sector so as to ciicouragc only public-spiritcd pcrsons to choosc
Govemnicnt scnicc as a carccr
2 3 15
23 10
Psychological tests arc king uscd in thc dcfcncc scn*iccs,but not
on thc civilian sidc Thew should be introduced, both at the time of initial
selection as also later dunng thc training and probation period Acts of omission
and commission dmng thc probation pmod should bc taken serious noticc of
23.17
Wc haw suggcsted tha: premature transfers of ofiictrs should
not be allowed, accpt in accordance with the rccommndations of a Civil Scrviccs
Board. Wc havc also suggestd the abolition of ccrtain posts of Secretaries which
arc more in thc nature of sinecures than pmpcr postings. We belicvc that posts likc
that of !hcmhry, Mmoritics Commission, Secrclary, Intcr-State Council or
S c c r e t e , Official Languagc do not carry even fiflcen minutcs' work. Such
c.amples can bc multiplicd at i l l lcvcls of Govcrnrncnt. So long as such jobs are
a l l c x d to continue in Govcmcnt, it is easy for anyone to demoralize an upright
officer. by posting him to one of thcsc pleasant sinccures. Such posts should bc
assiduously identified and abolished forthwith. We must make the worth of
charge of different posts of equivalent rank almost equal.
23 18
Distinguished Service Awards and Extraordinary Service
Awards should be instituted in all Government departments There should bc
a mechanism so that pcople at all lcvcls havc some Award or the other to looh
fmwd to These Awards should be eonfcrrcd after due deliberation. so that only
the deserving get thcm These should bc prescntcd to thc rccipients in public
functions b) high dipitarics
23 19
Wc must changc our cntirc way of looking at Government
officers Their chid quality should be that they can get things done, in the shortest
possible tune with the minimum inputs Everything in the system whether it is
recruitment policy or transfer policy, performance appraisal or promotion,
should be geared towards the emergence of what may be termed as
Administrative Entrepreneurs, people who are prepared to take risks and
stick out their necks for:the public weal.
23 20
It IS il mix of estcrnal props and internal props that can really
niotrvatc thc right peoplc to cntcr Govcrnrncnt senicc and remain thcre We havc
only suggested a fc\\ important areas of action, and Lhesc can be built upon in the
lieht of cxDcricncc mthcrcd in imDlemcntation
Y
I V h Is
accOuntabii*
24.1
Accountability in Governmcnt implies the subjcction of thc
discretionary powers and authority vested in Govcrnmcnt cmployccs to outsidc
scrutiny by various argans of the society. Whilc it is indisputable that cvcry public
functionary has to be a m t a b l e for his acts and docds, morc so a Go\wnmcnt
employee who exercises sovereign powers vested in him. It is oftcn said that
Govunmcnt scrv~ntsin India at accountable to no one. In thcov, this proposition
is totally unsustainable. In practice, it is largely true. Wc will try to cxplorc thc
rcasons for such a vast gap between theor>;and practice. and suggcst appropriatc
measures.
Accounmbiiity
fhr what
24.2
The accountability of a Govcrnmcnt cmploycc should ..xist.
formally and in writing, for the following:
34 3
Currcntly. Govcniincnl cniyloyccs iii thc Ccntral Govcninicitt
haw ccnain duties and rcspotisibilities under thc Conduct Rulcs Thcx haw to Ix
coiiiplctcly rc-\\nttcn so as to bc in accord \\it11 rnodcni notions of accountability
24.4
E v a today cmployccs arc accowrtablc to a numbcr of institutions.
which may be categorised thus:
making proccss.
(c)
24.7
At thc samc timc, interference by elected representatives in
day-to-day administration must cease. They should thcmselves desist from
tvriling letters about postings and transfers of cmployecs, promotions, vigilance
cases and so on. In case any such lctter wing to unduly influence the decisions on
these matters is reccivcd, it should not only not be acted upon but should lead to
administrativcaction against the conccrncd cmployoc.
ACCOUNTABILIIY TO AUDIT
24.8
Audit can be a most potcnt tool for ensuring accountability. It has
often unearthed major scandals and provided thc necessary ammunition io othcr
sections of the polity. There are, however. certain areas which nccd improvemcnt
Where major individual lapses are noticcd, audit should ensurc that the
delinquent oflicials arc also required to prcsent thcmsclves before thc
Public Accounts Committcc. There should be adequate follow-up t o
ensure that disciplinary action i s taken against those found guilty.
Government departments have also t o develop a high degree of
sensitivity t o comments by the audit. Thc approach should not bc to
closc ranks and rush to the defence of the dclinqucnt official. The
208 :
24.11
Thcxe.isan existing machincty of vigilancc, headcd by thc Chicf
Vigilance Conunissioner, who is a Constitutional authority. Despitc it, corruption
thrives. Roccntly, thc CBI has been galvanized into action, mainly proddcd by the
higher judiciary. This may, however, be a passing phasc. What we n d to build
is a system which is not dcpcndent on thc action of a fcw individuals.
(b)
ACCOUNTABILITY TO CUSTOMERS
24.13
All Government departments have custamers whom they are
supposed to serve. These are members of thc public in gencral or some segment
of the people in patucular. A democracy does implicitly dcmand accountability of
the Government to the customer, but this is through a circuitous routc passing
through the voter, the elected representative, the political executive and higher
bureaucracy. What has been rmgniscd rcccntly is the need for a clcar-cut
accountability directly to the customcr at the cutting edge Icvel.
This is thc gcncsis of thc Citircns' Chartcr in rhc U.K. and thc
Clicnls' Charter in Malaysia.
24.14
Coordination Council which has rcccntly dralicd a Citir.cns' Chancr for this
countr? Thc niain thcmcs of thc Chartcr arc quality. chorcc, standarCz. Auc.
accountability and transparcncy Undcr thc hcad 'standards'. each citircri w i l l bc
cntitlcd to expect thc following
If services are not satisfactory or standards ate not adhered to, there
should be a duly notified grievance d r e s s r h procedure, indicating
clearly the,response time for replies to complaints, with easy access
to the concerned officials.
As far as possible there should be a single window disposal, instead
of the citizen being pushed around.
At the very least, the citizen is entitled to a good explanation or an
apology. In many cases, he should have the right to demand
redressal and compensation. This would also imply the coverage of
all governmental services under the Consumer Protection Act.
A vigilant public can be created if there is full dissemination of
information. Some State-Gov-ents
have started publishing lists of ail
development projects sanctioned, arca-wise, along with funds sanctioned. funds
spent, agency of execution, target date of completion and the up-to-date progress.
Such reports can be an effective method of keeping the customers of development
projects informed of what is happening Such steps need to be taken by Central
Government agencles too
has cspandcd its traditional rolc by adding thc conccpt of public intcrcst litigation
Somc ofthc rcccnt trcnds in judicial intcwciilion arc as undcr:
(a)
(b)
(c)
(d)
The Couris have also pushed the Central Government into filing criminal
cases and investim them through designalcd agencies in a time-bound
manner, by exercising direct and continuing supemision over the very
process of investigation This is somewhat unusual, but it has shown
d t s in some highly publicised cases. While the "victims" arc shouting
thanselves holnse against what they label as 'judicial activism', they could
posdibly have invited the w i t h of the judiciary by their inaction or
motivated action over prolonged periods.
24 18
On hc whole, he trcnds are to be welmcd. It is to be hoped that
the cxccutive will outgrow its initial reaction of being resentful about the so-called
judicial encroachment on its jurisdiction and start narrowing the zone of its own
inaction and inadequacy so as to make judicial intervention unnccessaq.
212
confmntcd with a camcra and a riiikc at my odd placc. bc it outsidc thq court room,
his ollicc. rcsidcncc. cvcii 111a tin. This has niadc accountability to thc 1;2*.-.~2;a1.
aiid through thcm, a widcr audicncc sonicthing of a minutc-to-minutc cscrcisc
Somc of thc points that arisc in tliis.conncction arc:
What we need is a rcpodcr who is \~cll-ucrscdm his subject, who has donc
his homework and asscmblcd all thc facts, who is awarc of all thc
controversies, and who can draw out the intervicwcq by sympathetic
questioning.
We also requiremedia personnel who are so well paid by the industry that
they are not susceptibletothe varied blandishments that can be offaed by
various interested parties to p w c y distorted stories in order to malign or
scandalize.
cherish, when they have rolc modcls t h y livc upto, when there are virtues of truth,
honcsty, integrity, devotion to duty, patriotism, lovc of one's fellow-beings, non2 13
24 22
But this can happai if the k&rs of socicty. bc t h e intcllcctuals.
burcaucrats. politicians. tradcrs, frrrmcrs or wvorkcrs. cschcw hc cult ofviolcncc.
sclfishncss md hypocnq wvkn thc older gcncration. by its conduct. bccomcs I
role model for thc younger gcncration. wvhcn then: arc pooplc of vision.
farsightednessand statesmanship who arc chosen by the pcople to NIC ovcr than.
and when the ihicves. damits, forgers and smuggtas are kcpt firmly behind lock
and kcy
24 23
In C\V
SC~ICC,
24.24
It will thus be scen that thcre is no lack of agencics that can hold
a Govemmemt anplclryoc accountable. What is needed is LOactivatc. refurbish and
galvanizc thcse agencics.
: 214 :
25
25, 1
( ;vidi4iirrs qf
l.~cprlnrmlo/
Persontiel
instructim in the nature of guidelines from timc to timc on various issucs rclatcd
to transfer. These relate to posting of physically handicapped cmddale~,
hiisband
and wife at the samc station, staffworking in sensitive posts. etc. Thc guidelines
arc not cshaustivc and do not providc instructions for ail situations. Thcsc policy
guidelines am also not mandatory in nature but provide only policy options nithin
1kpartntent.y
25.2
detailed policy guidclines which lcad to follow the instructions issucd by thc
Departmcnt of Personnel and Training and also takc into account thc s p i f i c
rcquircmcnls of individual Ministrics. Thc lransfcr policy of the Railways. for
example, discouragcs frequent transfcrs and insists on a fiscd tenurc for cach
25.7
k-partmcnt of Pcrsonncl arc thc main basis of thc transfcr policy. Since thcir
pcrsoiincl hav: thc liability to scnc anyvhcrc in India, thcrc is an cscrcisc for
chqngc of pcrsohncl from dif-iicult arcas to normal arcas and vicc-versa. In static
units. a normal p l o d of stay of thrcc ycars has bccn prcscribcd, whiic a tcnurc of
two ycars has bccn prescribcd for difficult arcas.
3.4
a dclinitc fccling that thc instrumcnt of transfer is widcly misuscd in thc countel
of thrce
~~
at the behest of politicians. Other demands arc for the prescrtption of a minimum
tenure for a posting, restricting the.transfcr to onc's homc to\m or home state, for
II OUR RECOMMENDATIONS II
~~
25.5
in
?rans/ers not
25.8
in mid-session
end of the academic year so that these are implemented at the end of the
academic session. Whercvcr transfers arc made in mid-session, facility to retain
Governmcnt accommodation up to the end of the academic session should be
extended, if the Government cmploycc has a child studying in that station.
heasonsfw
25 9
preniurun
trans/r.v
detailed rcasons for thc uansfcr Ofticcrs should bc givcn a right to appeal against
such orders, if they feel aggncvcd ad a provision for a summary procedurc to deal
wth such situations should bc madc \\ ithin each dcpartmcnl In casc of emergency,
when such orders 3rc niadc in the cxigcncics of public intcrcst and haw to bc
implcmcntcd 3t oncc. rcprcscntations against a transfcr ordcr should be disposal
of by an authority supcnor to thc oficcr ordering thc transfcr aflcr pcrsonal
discussion. if possiblc on thc sanic da!.
217
I rriti\f;-r J U I I
I, #
/Id.
lnr.~u.ct~ll
25 10
should not bc uscd as a rncanz of puntshnicnt by ctrcunii ctiting thc proccdurc laid
down for disctplinan- procccdmgs
*tJ?IA/I/UfW?I <JJ
~ ' I V I.%n.ICt..t
I
to some of the senior duty posts in the administration cannot be denied, there
I h r d 121 11rc
C'tvitrr mid
25 1 1
is a need to evolve certain norms in this regard. Thus whtlc evcry ncw Primc
111
IIIC .Y/,Ifd'~
Selection 01
M'mhers Of
Board *'ld
its
jurisdiction
(1)
(2)
(3)
Cabinet Secretary
25.12
I.
Cabinct Sccrctary (if his casc is king considcrcd, hc will not be a nicmbcr
of thc CSB)
2.
3.
i:~.!hcStatc <io\wnmcnt
Chicf Sccrctan (If his casc is bcing considcrcd. hc will not bc a mcmbcr
of tilt csr3)
z
-I
All
5.
>
25 13
;
I \tTlttcn
mcrnoranduni before dic Cn 11 Scn~ccsBoard. giving reasons for the transfcr Thc
concerned officer
submission
\\ill
ha\c thc right to appear before the Board and make hts
25 14
75.15
25 It,
to review thc c;ises of all premature transfers of Croup A officers and should
I,\
.hi cillpl<l\L
2 17
( .,iiii~)~.ii.~iri,~ii~/;ir
pretii,irun.
trwi.+r
rcprcscnts that thc traiisfcr was nialafidc, thc amount shall bc rccovcrcd from thc
salary of thc supcrior officer if it is subscqucntly provcd that thc transfcr was, in
fact, effcctcd with malafidc intent, undcr political prcssurc or for any othcr
cstrancous considcration.
7iui+rs
d!f
Groups
'( "ONJ
.I)' rmplq,w.v
25. I8
10
compulsory postings.
\L truqfer qf
Group
7)'
rniplorues
25 I 9
No
transfer o f Group
'D'employees
transfers etc
Irnn.+rrs of
emplr+rcs uhour
lo retire
25 20
servant has attained an age three years leas than the age of his
superannuation and wherever possible a retiring Govcmment scmant should bc
employw.~t o
hz c l i u r p slice:c.djiw
25 21
brtnXiiig
who brings such prcssurcs should be procccdcd against undcr the Conduct Rulcs.
politico1
Thc prcscnt practice of taking action on lcttcrs rcccivcd from outsidc agencics
prc.rtura
including Ministcrs, MPs, Burcaucrats and othcr mcmbcrs of thc public has to bc
stoppcd forthwith. All such rcfcrcrices may bc uscd only for thc purposc of taking
dcpartmcntal action against thc Goscmmcnt cmployccs for whosc bcncfit such
lcttcrs have becn MTittcn.
220
26
1
The signrjicance
Of Ihe
size Of
Golmlnlt,rr'
Afachirrrty
26.1
The size of Government mgchinery is critical for the success of any
drive for efficiency and economy in Government, where value for money must be
dclivcrcd to the tax payer. In fact any effort to optimize the size of Government
machinen would come to a complete naught in the absence of a robust statistical
information base on subject. Our terms of reference also rcquirc us to study the
financial implicationsof the various alternativcs before making our recommendations.
This ' exercise invariably requires the sizc of Government employees in various
categories to be available as a pre-rcquisite.
The Schdule
hY
('omi.Lvion
26.3
The lack of any recent and reliable source ar.d the pressing need for
this ipformation appears to have led all the previous pay commissions to circulate a
schedule to gather information on the sizc of civilian component of, government
cmployees. We too have done the same and have collected information about the
regular employees w i h Government and excluded the non-regular employes as was
done by the previous Commissions. For the size of the Arnicd Forces, we haw tclicd
on the information furnished by the pay cells set up i n tlic Miiiistn: of Dcfencc.
26,j
22 1
iioii- ;ii~;iil;ibility
of
dctixls rcgxdiiig "lillcd poW in [tic prc\ toits 1 ' : ~ Coiiiiiiisston rcports and hcncc
coiitincd our anal) SIS of thc clianging coinposition of Cciitral Govcrnnlcnt
Eniplo!t.cs to "sanctioned posts" on \\hich fatrlj dctailcd information \\as available in
tlic cirlicr reports Thc ininisty -nisc. p u p - n i s c dispibution of fillcd posts collrctcd
b\ us ;is oii 3 1 3 94 is howcvcr. givcn at Anncxc 2 6 7@) for the bciicfit of posterit! and
U C hop;. tliat thc futurc Pay Coninlissions n i l 1 bc ablc to nicantngfull) u t 1 1 1 this
~
inforin;i1ion
I\ c 11.11 c
26.6
The strength of sanctioned posts for the regular civilian Cciitral
Govcrnr,ient employment (excluding Union Territories) at 41.76 lakhs in 1994, is
obscrvco to have increascd from 17.37 lakhs in 1957 to 29.82 lakhs in 1971 to 37.87
lakhs in 198.1 (Sec Anncxc 26.2). During thc fourteen years between 1957 and 1971,
thc nunibcr of sanctioncd posts increased by 71.7%. during the next thirteen years
bchvvccn 1971 and 1984 by 27% and during thc next ten years bctween 1984 and 1994
by 10.3%. Vicwed on annual basis whilc an annual growth rate of 3.9% is obsend
for the period 1957 to 1971, an annual incrcasc of 1.9% is observed for thc period 197 1
to 1984. The percentage of annual increase is observed to have fallen to a levcl of
1 . 0 per cent during the period 1984 and 1994 suggesting thereby a general
deceleration in the ratc of growth of sanctioned posts for civilian employees in
Central Government, consequent to the various measures taken by the
Government to impose economy cuts on present numbers and freezes on further
reciuitrnent. Of thc 3.89 lakh additional posts sanctioned during thc period 1984 to
1994. 70.000 posts \ w e in the Dcpartmcnt of Communications. 4 1 .000 in Railways
and 3.28.000 in othcr deparlmcnts. Amongst the other departnicnts thc largest incrcasc
appears to have taken place under the head of police in the Ministy of Homc Affairs.
As per the Budget documents, between 1988 and 1995, an incrcasc in thc number of
cniployces of the ordcr of 1,49,447 took place under this head. We have elsewhere
shown that as against a compound annual rate of growth of 1% for the civijian
cmployccs during the period 1984-1994, the CPOs under the Ministry of Home grew
at thc ratc of 5.6% compound annual rate of growth betlsecn 1986 and 1994. Taking
cuc from the above trends. we awarded studies for the restructuring of some major user
dcpartincnts with a view to optimizing the size of Government. The chapters which
follow dctail thc areas ivherc sonic weight shedding may be possiblc.
'
26.7
Union Territory wise information on fillcd/sanctioned posts is not
available in the earlier reports. It is therefore, not possible to comment on UT-kise
incrcasc in nunibcrs While thc iota1 number of sanctioned posts for civilian cmployzes
in Union 'rcrritorics is available in the previous reports. this figure is not comparablc
as thc nunibcr of Uriioii Territories has been changing with time. The total number of
sanctioned civilian posts in Union Territories, reported at I .60 lakhs in 1970 and 2.25
ldkhs in 1.1.84,by the previous Pay Commission$, is observed to have however fallen
to a level of 1.63 lakhs in 1994. The UT wisc distribution of fillcd and sanctiomd
posts, across group A, B, C and D in 1994 is givcn at Annexc 26.7(a) and 26.7 (b) for
thc bcncfit of futurc Commissions.
26.8
As against the total filkd -posts of 38.73 lakhs, the :otal number of
sanctioncci posts at the ccntrc in 1994 arc observL ii: hp cfihe order of 41.76 lakhs
lcaving a gap of around 3.03 lakhs sanctioned posts unfilled at the Centre in 1994.
Similarly, wc obscnc that as against a total number of fillcd posts of 1.5 lakhs In the
Union Territories, the total number of sanctioned posts in UTs was of the order of 1.53
lakhs as on 31 3.94. Such a largc gap bctween the sanctioncd and fillcd posts may bc
cxplaincd partly by thc long procedural dclays in sclcction, by thc lack of suitablc
caiididatcs. reservation rcquircnicnts. ctc.
20 9
The information on dcfcncc forces madc a\.ailablc to us by thc Dcfcncc
Forccs pay ccll shows that as on 1st January, 1995 the sizc of thc defence forces was
11.91 lakhv of which 9.98 lakhs was the s i ~ oc f thc Army, 1.4 I lakhs thc S I Z C of tlic
Air fore and 0.52 lakhs that of rhc N a y Thus. the sharc of Army in the total dcfencc
forces IS 83.79'%,,that of thc Air force I 1 XJO;, and that of.thc Navy 4.37%. I t is also
obscnted [hat the compound annual rate of growth of thc defence forces for the
222
period 1YH1-91 at 1.4% i s higher than the compound annual ratc of growth of
1.2?40 for the civilian f o r m during the period 1981-1991 (SCCAiincsc 26 4 ) This
can probably bc attributcd to t l f x~ r tlint unlikc thc civilian sidc. thcrc is no ban oil
rccniitmcnt 111 t h Dcfctlcc
~
forccs :ind ill1 \\ilSt;igCS 11;n.cgcncr;illy bccn il1;idc iip
26.12
Annex 26.6 reveals that the total number of Group A posts have risen
from 67.969 in 1984 to 89,663 in 1994, showing thereby an increase of 3 1.9%. The
largest increase of Group A posts is observed in the Department of Communications
wherc Group A posts have increased b i 4756, and an increase of 13 1.2% has been
registered This is followed by Defence (civilian) department where the number of
Group A posts have increased by 4247 and an increase of 36.4% has been registered.
Radways have registered an overall increase of 1863 Group A posts or an increase of
24.1% . The number of group B and C posts also rcgistcred an increase of the order
of 55,406 posts i.c. 69.2% and 5.00,902 posts i.c. 21.9% respectivcly during the
period 1984 and. 1994. Thc largcst incrcasc in percentage terms in Group B posts is
obsemed in Mnistry of Comrniinications at 140.9%,followed by the defence civilians
at 104.8% . While in tcrms of numbcr of Groups C posts, Railways creatcd the
maximum numbcr of posts during thc pcriod undcr study, the Department of Defence
(civilians)crcatcd thc largcst numbcr of group C posts in tcrms of percentage incrcasc.
What is rcnlarkable is that Group D posts rcgistcrcd a dcclinc of the order of 1,9 1.33 1
posts during the pcriod 1983 and 1994, Thc Railways and Defence Civilians arc
obscnd to haw contributed significantly to this dcclinc. The dcclinc of Group D posts
may be a result of ban on rccniitrncnt inipscd in Group D, comparatively liighcr
rctircmcncs in Group D conip;ircd lo otlicr catcgorics and proniotioris from Group D to
Group C
'.
I heh~ftllll~~l
."i'rr.'m'"I\"
2 0 I4
(. mid 1)
smictioiicd
p s t s IS~ I \ . C I I ;it ;iIiIicsc 2 0 7(;1) It ~ i i i i \ hc lioticcd tliiit IIIC MIIII:~? 0; DCfcllcC Ic;lds
Jrsfrihiifior < I /
iii tcnns of thc Group A s:inctioiicd posts at I 5.000. follo\rcd by Miniscn,of Kail\vnys
( ;rorip :1. I!. (. crmi
iit 059 I . Ministry of Homc Aflairs ;it 8047 and h11111stn
of roninltiIiiciitio!is ; ~ tX38 1
I ) ,v,l,ll.f~f~l~lcllrrlll
~ / i l l l ~pf'.\l.\
ll
77re
disfribiifievi o/'
(;rfw,,'
,IcrfJ,s.v o ~ l 1 l , I s z c f
.w n w c ' . v
77w :I I I llI&<l
Sen,tcc*.v
Dislrihtifiwi of
sancrro'ied~s's
betwecii
permaneni aiid
lemporaq*
caregoq'
Tiie si:z ./
Jrrdustrial
If iJrkc,r.c
The Ministry of Corniiiiinicatioris has tlic largcst nuriibcr of group 3 salictioricd posts
at 23.772. follo\vcd by tlic Ministry of Dcfcncc at 18.1 16 arid the Audit and Accounts
Dcpartnicnt at 13t932. The Ministry of Railways leads i n tcrms of the Group C posts
at 931.1 12. and I S followcd by Ministry of Communications at 5.58,552. Ministry of
Honx: AKiirs a t 4.83.804 and Ministry of Dcfcncc at 4.11.919, k\ail\vays again Icads
in rhc Group D cmployccs and is followcd by Ministry of Dcfcncc and Ministry of
Conununicalions in that ordcr. Thc Ministy-wsc distribution of' Group A. 3. C and
D fillcd posts is givcn at aniicxc 20.7(b).
26 Is
Of thc loti1 89.663 Group A posts, around 57.997 arc cncadrcd into thc
\;?nous organiscd Group A scniccs cscluding thc thrcc all India s c n k c s . Tlicrc has.
ho\\cvcr bccn an appraiablc incrasc in the numbcr of Group A scnficcs bctivccn 107 1
and I995 and thc numbcr of Group A s c n x c s has riscn froni 3 0 111 197 1 to 49 i n 19x4
to 59 in 1995. Sonic of thcsc SCIVICCS arc VCQ sniall i n sizc such as ttic Indian Suppl!
Scwicc (167), Ind~anNaval Arrnanicnts Scrvicc (94). Indian Inspction S c n ~ c c( I 2 1 )
and Indian Lcgal Scnicc ( 1 14). In fact, thcrc arc only 34 scniccs u.:tli a cadrc strcngth
c s d n g 500. Whilc all 18 Enginwring Scniccs taken togclhcr h a w a cadrc strcngth
of 18.225. the Group A Ccntial Scniccs rccruited through Ci\d Scniccs Examinations
acdount for 12.839 posts.
26 '16
Thc All India Scniccs includc tlic Indian Adniinistrativc S c n ice. t tic
Indiari Police Scnicc and thc Indian Forcst Scnicc. Thc AIS oficcrs 1m.c a
contingcnl of 11.576 officcrs with 5336 oficcrs in thc IAS. 3519 oficers in thc IPS
'and 272 1 in the Indian Forcst Scrvicc as on 1 . 1 .W. Oficcrs of thc AIS arc allotted
state cadrcs and thcy work both in thc Sratcs and at rhc Ccnlrc.
26.17
Tlic distribution of'pcrmanent and temporary posts shows that thc
numbcr as well as thc pcrcentage of temporary posts to thc total posts has dcclincd
steadily. This appears to be in tune with Government's policy of decasualiiation and
increasing permancnt employment. Thc numbcr of tcmporary posts droppcd from a
Icvel of 7.49 lakhs in 1971 to 7.28 lakhs in 1984 and to 6.83 lakhs in 1994 (Scc
Anncxc 26.9). Temporan. posts as a percentage of total posts, dropped from 25.1% in
1971 to 19.2% in 1984 and 16.4% in 1994. Howcvcr, while Ministry of Defence
showed the largest reduction of temporav posts, Railway actually showed an
increase of 1.60 lakh temporary posts between 1984 and 1991
26.18
As per infohation collccted by us, thcrc wcrc 9.:59 lakh industrial
workcrs i n thc Central Government as on 31.3.94. Morc than "0 pcrccnt of the
Industrial Workcrs arc cmploycd in Railways and Dcfcncc T1.c distribution of
Industrial Workcrs amongst the major depal;x:rnts ovcr thc \c;irc gn.cn b c l o ~1:
Kai I wa? s
3 61 (50 4)
4 91 (54 2)
4 9% ( 5 3 0 0 )
PKrT
0 06 (00X)
0 12 (01 3 )
0 00 (Ob 00)
Dcfcncc 3 10 (43 3 )
3 51 (38 7)
3 92 (4 I 80)
Olhcrs
0 30 ( 0 5 5)
0 52 ( 0 5 %)
0 4; (t,J 0 0 )
Total
7.16 (100)
224
9.06 ( 100)
9.39 ( l o r , )
I~rh.rrrr~rl
iliJrkfl.l.\
i;ihlc bclov). 11 IS obscncd t1i;i1 \\liilc Ihc pcrcciit;igc of' Supcn~sors.IiigliI!. skillcd ;tiid
skillcd ciiiplo~~ccs
takcii togctlicr 11;isiiicrc;iscd owi tlic \c;irs. t1i;it of' rlic sciiii-skillcd
;ind uiiskillcd ciiiployccs tias dccrcziscd
Highly Skillcd
Ski 1Icd
Scriii Skillcd
Unskillcd
Supcnisors
and othcrs
Total
1971
1984
1994
IO ' X B
3 9%I
24%
2 (1%
36%
2 2%
29.50%
2 5.a1%
2 1 .XO%
1971
1984
1994
27%
2 2%
1 7,40')/0
-100%
--
100%
5.70%
100%
26-70
The pay-scale-uise distribution of fillcd posts at the Ccntrc and thc
Union Tcrntorics is given in Anncsc 26.10. As niay bc rioticcd thcrc arc 62 pay scalcs
j i I l ~ ~ i f p ~ .UIv ~thl,
.<
bctwccn thc Centre and tlic UTs. The scalcs of 7000 fiscd. 4000 fiscd, 2000 fiscd arc
(-1wfrvund b r LX
found to be unique to the Union Tcrritorics. The Minist? wise distribution of fillcd
posrs in the scale cf Rs.5900-6700 and abovc is givcn at Anncse 26.1 1.
7 1 1 ~p(1)'
. .\colt, U'1.W
cflsrrihuf'otl
20.2 1
From thc statistics it is diflicult to come lo any dcfinitc conclusion
ivhcthcr thc burcaucraq as a wholc is "bloated" or not. It would bc correct to conclude
that tlic 7 1.7%incrcasc in thc numbcr of sanctioncd posts @tween 1957 and 1971 was
probably not justifid. But the fact that this pcrccntage growth ratc came down sharply
to 27% bctwccn 1971 and 1984, and then to a remarkably low figure of 10.3% between
1983 and 1994 shows th4,Govcrnment has acted to contain its fat. If thc extra pounds
havc not been shed, at least the rate of growth hasbeen markedly arrested. Even thc
\cry modest incrcasc of I% per annum is more due to the jump in thc size of the
uniformed forces. The aimed forces grcw at a compound annual growh rake of 1..4%
bctwcn 1981 and 1991 and the Central Police Forces by more than 5% annually
hetween 1986 and 1994. The Ministries of Communications and Railways sanctioncd
70.000 and 4 I .OOO additional posts during 1984-94 and contributed lo the incrcase.
26.22
Thc lessons wc lcarn from this are clear. If the Govcrnment has the
will to rcducc manpower, it can do it. Secondly, the uniformed forces are the most
difficult to handIe..If their avoirdupois can he contained, so can that of the rest of
the Govcrnment.
26.23
Thcrc arc 3.03 lakhs unfillai posts on thc civitian sidc. Thcrc niay be
sonic unfillcd posts on thc dcfcncc sidc as wcll. For any major cfforl at rcstructiiririg
and downsizing thc Govcrnmcnt, this large number of vacancies is a challenge
waiting to he met.
26 24
Alrcad!. thcrc IS a dcfinitc shift away from Group I? posts towards
Group A. Band C. Thus, there is a trend towards officer-oriented administration,
H tiich needs t o be strenuhened further
A N N E X E 26.1
Yn age of filled
posts to Total
sanctioned
Percentage
increase
1984 1994 between
Post; Filled
(Lakhs)
---------.b----
Ministry
------------------
1994 &
1984
1.
2.
Rai 1ways
3.
1984
1994
5.
4.
14.15 15 01
6.1
94.0
97 5
93.2
90.3
Communications
6.37
6.81
6.9
6.29
5.99
-4.8
86.9
89.0
Other Departments
7.64 . 10.92
43 0
87.2
91.4
... .
Source:
..
. . -. .
. .._
. .... -- . . .
..
226
ANNEXE 26.2
2.
3.
~
9.97
57.4
6.
.. .
. .
13.0~1 I 5.05
4tl.O
39.7
__
7
.
. .~
....
_.
0.4 I
10 5
40.3
7h
27
37.0
15.46
1.08
11.4
3.93
13.2
6.84
7.54
18.1
0.70
98.5
74.0
1.0.2
18.1
Defense (Civilian)
7 t o Total
2.60
5.97
20.0
7.23
19.1
6.73
-0.50
129.6
21.1
47.9
15.0
16.1
-12.9
Other Deprtments
Clr to Total
2.82
16.2
5.93
19.0
8.75
23.1
1 2.03
3.28
84.3
110.3
47.6
37.5
28.8
1737
29.82
100 0
37.87
41.76
-27.0
103
100.0
3.89
100.0
71.7
IO.0
I .9
1 .o
Total
100.0
3 !)
:8.0
: 227
3.
4.
5.
6.
7.
0.04
2.4
0.94
, 2.2
0.72
0.04
2.2
1.0
2.7
0.76
I .o
1.36
3.3
0.12
7.4
1.48
3.4
1.19
0.11
7.3
1.30
3.2
27.8%
66.8
1.18
72.4
2q.06
67.0
25.92
1.08
66.9
72.0
27.00
67.1
11.39
27.3
0.2')
17.8
11.68
2b.9
10.60
27.6
0.27
18.0
10.06
0.23
0.6
0.00
0.0
0.23
0.21
0.5
0.00
0.0
0.2 1
41.76
100.0
1.63
100.0
4339
1.50
100;o
40.23
100.0
2.
1.
O.!'O
...
..
3.1
0.5
38.73
100.0
300.0
.-
228 :
- ..
.-
__
._
27.2
0.5
- ..
..-
--
..
1.
-.
3
3.
4.
1071
22.25
4.74
x.30
0.30
I .Oh
19x1
2S.87
5.20
X.SI'
0.36
1.20
10.37
44.44
3237
5.26
').'IS
0.51
I .40
I 13'1
50.02
N.A.
N.A:
0.08
0.52
1.41
11.91
N.i\
I07 I -x I
2.6
0.')
0.6
1 .o
1.2
0.7
1.9
I ox I -0 I
I .3
0.1
13
ii
1.6
13
I ?
229
5.
6.
x.
7.
'),(>(l
30.05
?\"ESf'
20.5
(Figures in Lakhs)
(;roup of' I'ost
1.
2.
3.
4.
increase i n 1094
over 1957
2.30
S.
h.
7.
y!
W
c\
30
cs
I -
C: 3
1
:s\
a -
: x
:c\
I
-.7
it
1)
3.
1.
5.
fl.
600
Y5Y 1
259
Il?X
46
l7i7
I c)Y
7075
lhh5
147
I5000
72w
4h7
45
5121
xx3
25
74
142
32
2 (I
232
I.
40
41
42
43
44
S87
101
262
63
3s
1*8
1911
320
IW
242
4222
4117563
IWI)
2138
117303
I343
48
49
469
728
6066
22117
49s
I885
51
655
1x6s
59I
425
utn
49
50
975I.
I43
I75
5404,
'
34x2
217
377
15Y
46
45
4614
11560
Miniauy 0 f . M
-Ministry of Food Rocirssiq Industries
Minimy d Hralh and family Welfare
Minisuy of Homr Affairs
Ministry 01 Human Kcsourevsand Development
I40
72
2606
6714
549
302
I34
1069
9378
1221
Minimy of Industry
Mio. of I (Y B
~ O f L b O u r
Minisay of Law. Justice anti Cornpray Maim
Miniof Mis
70I
2862
1353
433
2286
966
3068
6W7
742
502
20107
2795
1703
7264
62
63
64
65
75
44
4662
I 05
594
66
67
68
69
70
Ministry of Ibwu
Ministry of Railways
Mimi.ury of Rural Anu and h p l o y m c n i
Miistry of Science .ad Technology
Ministry of S~cel
537
9332
192
825
71
72
73
74
75
Ministry of Surface T r a n r p n
Minbvy of Tcxtilcs
Ministry of Urbro Affairs and Employmeni 1368
Ministry of Water Resourns
Ministry of Welfare
IOUI
76
Ministry of k k n c c
lkpanmltni of Atomic Energy
I k p n n w n t of Electronics
52
52
54
55
56
57
58
59
60
61
YO
91
49
166
2863
1351
I I7
9%
406
5470
511
700
404
11227
4.56321
3195
WJMI
7%
1773X
4026
885I
6945
413
262
5ZSR
161936
17bU
735
22774
4194')
xx
1144.50
7412
1x84
X14Y
2244
599
12437
6619
201 2
2
10.52
no
11491
4710
2
I8547
2x
758
93dYl4
7U?
7WI
6W14
777 I
?6
116s
101
4654
626
I22
IS3
1798
I I9
324
22398
1769
IhU3O
I w37
40427
8126
3237
I 1558
44Y
I10
7 1%
64
397
265
547670
5(N
9245
IS2
302
5925
19(1(,
42
1301428
I w5
23359
5x2
2Y6S I
4Y266
1627
614.1
35480
43117
238
14247
lola
I 1688
ivszow
2937
40x3
.5VX647
;04N 1
404
242
1526
234
1564'
230
2.
1.
Depurmnt of Space
('ahiact Sccrdariat
ResidcDt's ScLretyiai
102
105
I06
IOU
112
113
I14
T\
3.
4.
5.
6.
4Y28
592
2886
4 14s
22
nv
6377
4614
97
29
I35
424
1454
465
95
I in
91
100
101
107
JI)
tryst
1.10
31
25
I272
222 I
I90
101
sn
81
1891 '
12665
'
619
I17
141
73s
56
152
I sws
w 16
lo3
425
4%)
173')
57
202
136
91
I164
571
41YX
49468
100
59 1
060
7Ul4
668
1577
Tn(.l- 1
11
7.
206%
3872616
UnlOaTcrrl(0rks
12202
Delhi
I2203 'A&man and Nicobar lsl~nds
I2204 Labhadweep
I2205 Dadra and Nagiu Haveli
I2206 D a m and Diu
I2207 Pondicherry
1903;
Y904
312
541
54
2(K,
58
86
75705
13175
2840
Y407Y
7567
9593
1910
31R
647
7436
2162I
4580
2372
2687
23105
27041
IS W 4
87
1071
5Y2
11157
14m
3513
11397
108493
1480
--
76078
---
23 5
m%
402306U
---
ANNEXE 26.8
Service
---
1971
.
.__.
__ ---__
~
1984
--- --- -.
1; 1.%
--
- _--
2.
3.
4.
3203
5047
5067
1796
2679
3344
1.
236 :
ANNEXE 26.9
Min!str.
12.45
89.0
1.54 13.99
11.0 100.0
13.92'
92.5
1.13
7.5
15.05
100.0
Cmnunications
(% tc Total)
3.10
78.9
0.83
3.93
21.1' 100.0
,
5.1 1
74.7
1.73
25.3
100.0
Defence (Civilian)
3.12
52.3
2.85 5.97
'47.7 100.0
5.15
71.2
Other Departments
3.66
6l.7
2.27 5.93
38f3 -100.0
22.33
74.9
7.49 29.82
25.1 100.0
Railwvs
(%to Total)
(% to Total)
(YOto 'Total)
Total
(YOto Total)
S0UK.C:
1
2
C2.7'3
82.3
15.46
100.0
1.60
6.18 .
82.0
1.36 7.54
18.0 100.0
-0.37
2.08 7.24
28.8 100.0
6.43
95.5
0.30 6.73
4.5 100.0
-1.78
6.41
73.2
2.34
26.8
8.75
100.0
9.59
79.7
2.44 12.03
20.3 100.0
0.10
30.59
80.8
7.28
19.2
37.87
100.0
34.93
83.6
6.83 41.76
16.4 100.0
-0.45
6.84
23 7
2.73
17.7
ANNEXE 26.10
DISTRIBUTION OF FILLED POSTS IN CENTRAL GOVERNMENT AND
IJNIONTERRITORIES IN DIFFERENT SCALES OF PAY AS ON 31.3.1994
1
2
3
4
5
6
7
8
9
10
11
12
13
14
IS
16
17
18
19
20
21
22
23
24
25
26
27
9ooo (Fixed)
8000 (Fixed)
7600-100-8000
7600 (Fixed)
7300-200-750-250-800
7300-100-7600
7000 (FlXCd)
5900-200-7300
5900-200-6700
5 100-150-6300-200-6700
5 100-150-5700-200-63oO
5 100-I 50-6150
5100-150-5700
4800-150-5700
4500-150-5700-200-7300
4500-150-5700
4100- 125-4850-150-5300
4000 (Fixed)
3950-125-4700-150-5000
3700-125-495O-150-5700
3700-125-4700-150-5000
3700-1504450
3640-I 1 0-3750-130-4400-160-5200190-6150-230-7300-280-7580
3300-120-3900-150-4800
3200-100-~700-125-4700
3 150-100-3350
3 110-90-3200-1
10-3750-100-4400-.
II
167
21
51
4%
0
0
3
0
0
0
10
1
I 30
3087
54
0
IG
839
252
41
173
17
5799
71 1
0
21 1
452
10462
18
4
11
170
7
21
51
466
1
131
3
0
3
41
31
0
2
15
51
355
3141
16
839
255
41
176
58
5830
71 1
2
226
503
10817
19
0
32
0
0
65
459
800
8
1036
26256
39
7
I82
1209
0
0
1218
27465
39
7
27450
20763
54620
73728
129334
1801
29251
20918
56380
75300
143378
65
427
800
160-5200-190-6150-230-6380
28
29
30
31
32
33
34
35
36
3OOO-100-3500-125-5@0
3000-1003500-125-4500
3000-125-3625
2525-75-2750-90-3200-1
10-3750130-4400-160-5200-190-5390
2200-75-2800-EB-100-4OOO
2375-75-3200-EB100-350
2OOO-60-2300-EB-75-3200100-3500
2000-60-2300-EB-753200.
1640-60-2600-~-75-2900
238
155
1760
1572
14044
(Nwnhcrs)
Pay Scrks
Central
Union
Government Territories
1.
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
2630 (Fixed)
2630-75-27W
2630-75-2705
2300-Io0-28W
2075~-2375-75-2750-90-3200-1 10-3750130-4270
2()00-60-2
120
2000 (Fixed)
2.
3.
4.
236
I45
0
96
236
24 I
78
2
0
0
78
2
1810-70-2510-80-3280
1600-50-2300-EB-60-2660
1400-40-1600-50-2300-EB40-26Nl
1400-40-1800-EB-50-2300
1 350-30-1440-40I 800-EB-50-2200
1 320-301560-EB-40-2040
1200-30-1560-EB-40-2040
1200-30-1440-EB-301800
I 150-25-I500
1000-25-1320-EB-30-1750
975-25-1 150-EB-30-1660
975-25-1 1 SO-EB-30-1540
950-20'-1 I 50-EB-25-I500
950-20-1 150-EB-251400
823-15-900-EB-201200
8 0 - 15-1010-20-1150
775-12-871-1 4-1025
750-12-870- 14-940
89242
8988I
230429
26468
185007
200604
135017
13315
118
3 I2079
23959
436966
88992
547707
354607
233058
547241
Total
3872616
~~~~
-~
239
lobtal
0
0
382
291183
4246
540
4388
15221
619
3543
0
795
1355
8425
29743
3819
3561
3738
18763
1-44
I
6
I
8(3(,24
119764
234675
27008
189395
215825
135636
16858
I18
312874
23314
443391
118735
551526
358168
236796
566004
4023060
ANNIXK 26.1 I
MINISlHY/I)I<I'AAW'I'MEN1WISK
KS RY I'AY SCA1.E
AS O N 31-3-1994
code
1.
40
41
42
43
44
45
46
48
49
50
51
52
53
-54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
7s
Central Government
............................
Ministry of Agriculture
Ministry of Chemicalsand Fertilizers
Ministry of Civil Aviation and Tourism
Ministry of Civil Sup. Con. Affairs dlt Pub. Distri.
Ministry of Coal
Ministry of Cormnerce
Ministry of Communications
Ministry of Environment and Forests
Ministry of External Affairs
Ministry of Finance
Ministry of Food
Ministry of Food Processing Industries
Ministry of Health and family Welfare
Ministry of Home Affairs
h4nistry of Human Resources and Development
h4inistry of Industry
Wn. of I & B
Mbistry of Labour
Mtnistry of Law. Justice and Company affairs
Ministry of Mines
Ministry of Non-ConventionalEnergy Sources
Ministry of Parliamentary Affairs
Ministry of Personnel, Public Grievences and Pensions
Ministry of Petroleum and Natural Gas
Ministry of Planning and Programme Implementation
Ministry of Power
Ministry of Railways
Ministry of Rural Areas and Employment
Ministry of Science and Technology
Ministry of Steel
Ministry of Surface Transport
Ministry of Textiles
Ministry of Urban Affairs and Employment
Ministry of Water Resources
Ministry of Welfare
240
21
2
2
10
2
2
,..
1
8
31
4
1
1
3
I..
5
2
23
25
3
9
2
27
33
2
6
.5
5
1
2
3
I1
3
3
5
2
4
3
1
1
I
2
3
6
1
3
2
1
3
:.
14
I
6
132
2
5
2
5
4
5
x
5
3
20
342
16
128
532
5
2
85
117
11
13
46
13
12
21
1.
1
17
6
10
40
1019
9
14
13
20
4
46
40
rude
2.
1.
7t7
(Af
01
92
93
100
101
102
105
I ob
107
I 08
112
113
114
3.
M m w y 01 I )cicnce
I )rpuciiiciit ol Atoniic 1:ncrgy
Lk~)i~lllieiit
01 l l l e ~ t r ~ t l ~ ~ ~
Departriicnt oi Ocean Development
Ilepartmznt of Space
Cabinet Secretariat
Iresidenis Secretarial
Prinir MinistersOffice
1JPSC
Ceiitral Vigilance Commissioii
E1ectic)n (ommission of India
Plmning Commission
Indian Audit and Accounts Service
Supreme Court
High Court of Delhi
5.
6.
7.
IIX
1
i
1
52
2
87
50
7
9
&
I
3
1
1
_.
1
1
3
2
I
3
2
IS
6
07
T ~ t d I-
I1
11.
HI.
4.
167
456
3087
10
54
____11
_._
24 1
---._
170
7-
466
3141---
27
27 1
Optimiwtion of the Go\ crnmcnt machlncn . rightsuing of
Government. ~\mk(brce
sue wnml -thcsc arc VMOUS facets of chc samc problem
It must have been not~ccdthat reductron m the overall s i x of the bureaucraq is the
Underlymg idea beh~ndall the civil senicc rcfonns that wc ha\e advocated m the
predmg drspters Here we would like to gather all the threads and describe
the overall strategy in clear-cut terms.
OVERALL STRATEGY
We would like to divide the overall stratea into four main
27.2
sections as under :
kinm1mi~J
qnarrtnm dwwk
I)
ii)
111)
IV)
v)
\ti)
Rduc'itn#d~e*, b)
rwga&u/icutul
restrncttiring
ii)
iii)
Iv)
242
J w ~ I ~ w ~ J wc)
~ o
iidncluwi
Id
11%InIth&q
iv)
Righ~citrcig
d)
Coniputcri/.tion
Ollicc automation
Crcation of a papcrlcss oficc
Chmgcs in office syaans and filc manapicnt
Tbcse include .
.wkpr.$
1)
ii)
iii)
iv)
v)
vi)
MOLITION
OF VACANT POSTS
. v ~ h r r o / w m274
~
p
u
C
r
(hr
m mmrtidatmns
27,s
We mommemithat Govenvnat aboW these 3.5 lrkh posts
at One Sttoke, \mless 111 Some p O d C l k
Go\.emmcnt fCCk dJlcrwist. V ~ O U S
arguments will naturall? bc brought up against such a course of action Posts fall
vacant due to vanous reasons T h q remain vacant due to other. very cogent
reasons. None of these rcasons are possibly the fault of the administrative
department As such. @ should not be made to suffer
SIWragv fiu
27 6
It may also be pleaded that vacancies arise at different levels If
at all such vacant pasts arc tabe abolished Ministries should be allowed to fill up
the higher posts and only the posts at the .lowest le\rcl where fresh direct
recruitment is to take pface should be abolished. This would ensure that
promotions to higher posts are not retarded due to abolition of posts
abolitmi
27.7
Anothcr argunxnt could be that abolition. like crcation. should be
'NihK1i'N1al
a conscious decision bascd on functional considcmtions and it should bc rcsorted
mmidrrutiwis :'
to only if a surplus is identilied after a proper,work stud\.
A hditioii huwd
nit*.;irpniriitJ
iim lintly
27 H
All thcsc liiics of reasoning proceed from a central assumption
which is fault?.. h is bang iissuincd that mare people makc 'm organisation
27.9
We. therefore, recommend that no arguments should be
allowed against the decision to abolish the existing vacant posts.
FREEZE ON RECRUITMENT
27 10
It would be of no itse abolishing thc vacant posts. if further
recruitmentgoes on memly. without any brakes being applied it is reported that
currentty around 70.000 posts are filled up every year. Obviously. most of these
on: at the level of supporting and auxiliary staff
27 I 1
27.12
As regards the e.ecut~uesand suptxvisory staff. the frcsh
recruitment cannot be stop& as this would result m cadrcs that are twisted out
of shape Govanmcnt has almxty broughtdO\\nthc fksh intake mto the IAS. IRS
and other services. The duction in intake has to be applied in all services that
operate at the k v d of executives and supervisory staff.
VOLUNTARY RETIREMENT
>
27. I6
Wc havc in a q m t c chapter enunciatcd our mnccpt of voluntiq.
retirement Two kinds of schemcs are cnvpaged. Thc normal procedurc for
voluntary rellrement A c r completing 20 ycars of senicc is to be continued. Over
and above this. a special schemc of voluntary rctircmcnt can be started in any
departmentwhere surplusmanpawer has becn identified. In such a scheme. there
will be provision for selective retircmcnt of persons. the initiative always resting
with the Government. and fix a goldcn handshake. It is ho* that such schemes
will be made use of, in order to render it easier for people to tide over the
difficult period of unemployment following the operation of redundancy
procedures.
COMPULSORY RETIREMENT
27.17
compdsor?, rctircmcnt i s not csactly tuned in to the nghtsinng
of Government. In fact, the accent here is on gettingrid of people who are either
mwmpetent or l a c h g m integrity But it is possible to launch campaigns for
r e t i m t s of a compulsory nature in departments where redundancies have
been noticed.
27 18
It IS also possible to mncei\c of in built incentives for nghtszing
of dqmtments One idea has bcen floatcd b\ us in the context of manpower levels
m the dfirces It has been suggcsted that long-tcrm perspectives on defence
budget allocallons be approved b\ the Minism of Finance. \\ ith the proviso that
if the Chiefs are able to save on manpower-related expenditure the savings
can be used on other expenditure of their choice. say. for purchase of
eqmpmmt A similar incentive can be offered to all Secretaries and Heads of
Departments. This would be a one-way valve. Only savings on manpowerrelated expenses can be diverted to other productive uses. The reverse would
not be permissible.
2-45
l l l ' ~ , * l l I l \ ~ lI~
l l\l l I l l
\lIwffg~
27
11)
27 20
Awards* Rewards, Prizes etc. could be made contingent on
having aihieved a certain minimum reduetion in the manpower of the
organisation headed by the person concerned.
27 21
It IS OUT fun1 bcld'that ifan almosphcrc for nghtslmg IS crcalcd
nght from che top. 1-' won we can achrcvc the optimum SIX of the Go~cmmcnt
rnachmq Some detailed strategies for individual sectors are outlined in the
next few chapters.
240
28
I
INTRODUCHON
28.1
Our strategy for optimization must start from the LOP. We arc.
therefa, largewng the All India Saviccs and Group A Ccntrd Civil Services first
of all Our recommendation is that there should bc an across-the-board reduction
of 30% in the overall siix of thcse Scrvices Details of the strategy arc contained
in thc rekvant chaptcrs
Servicewise
slrolegtes
28.2
In the rest of this chapter. we outline our strategy with respect to:
28.3
The remaining Chapters of this Section deal with sectoral
strategies in respect of the railways, the postal services, the telmm services, the
Central Police Organisations and the defence services.
Introduction
28.4
247
I.bitc.titniul h r d a* ti
28.5
(?i
~~>~'r?ittla~tl!
crigimiig scrviccs rcvcals that niorc than half thc work forcc is cngagd in civil
acI ti c c r i ii
wi~hrrt-
Activity
!i4uwfaduring
(14.87%)
leksonnnunicat ions.
El~rlPonicsMedia
M k
Materials Managcment
CaMtltancy
SIUdy
60.3J3
(28.08%)
1.29S(5.84%)
Survey. Mining
(10.649
(37.52.0)
489
2.315
(1.11%)
3.343
(2.20?1) (1.56%)
(Swvey only) (Sunry only)
(1.360
(3.89%)
28.6
In the context of the new economic policy mitiatives by the
Central Govemment in early ' ~ O S , we commissioned the Indian InstiMc of
Technology (IIT), Delhi to examine among other things, the role of engineering
petsannel in the Central Government in the changed socio-economicand political
environment. The report-of IIT, Delhi observes that the counuy is in an early
explaratory stage of liberalisation, pnvatisation and globalisation but certain trends
noted in the report as reproduced below are significantpointers to the future of
engineering functions of the Government
~t.lCrrnr~-t?
249
assct-basc Dtil probably thcrc ts no comiiicrcial. sciaitific systciii of ssctaccountd in Hail\vays \Vc @her h a t thcrc i s hca\y ovcr-capitalisation in railug
~wdishopand production units. and aftcr modcrnisation ofworhshops a capacit~
far in csccss of in-liousc nccds has bccn crcatcd Wc arc of thc opinion that thc
railway workshops and producuon units can bc t&cn up for imnicdralc
caporatsation We suggest that the railways assess the installed capacity of
workshops and production units and re-evaluate thcir assets on sound
commercial principles to facilitate an early corporatisation of workshops and
production uhits.
28.9
Thc deum fktorics producing convcntional tclccom cquipmcnt alrc
losing thcir significancc in a tcchnolog?r-markct diivcn telccom sector It is timc
that the governmcnt withdraws altogcthcr from this area too.
28.10
rrporl.
7zlc
cotam~niCarims
and Eiecatmic.r
Mediu
28. I I
The tclecom sector and electronics mcdia arc thc cpiccntrc of fastchanging tcchnology and market forccs are threatening to ovcnvhelm thc
Govemmcn( in dus sphere. The 'changc' is inevitablc. Thc Govcrnmmt nccds to
change policy and re-adjust its role on a war-footing. Whilc tl~crcccnt National
Telccom Policy has ushered in private participation in basic telecom and valueadded sqrvices, total freedom of 'air-waves' is only a matter of time in the age of
satellite TV. There .areindications that thc Government is alrcady gearing up to
compete with global players in this field ---- the recent decision to partly privatise
Doordarshan's Chanhel 3 and Go\emment's cfforts to prc-empt the 'Direct To
Household (DTH)' satellite project of a well known global nicdia giant are
instances in'point. We are, howvcvcr- of the firm view that the Government will
faoe severe ccmstraints in its bid to compete nith powcrful canlmefcial interests in
thesehgh-tech areas. The BsSeSSmCntd t h e role of the Gov-t
in this regard,
made'byIIT, Delhi in its report ref& to above is. quite appropriate as reprcxiu~ed
belo\\:
250 :
28 I 2
The Government has already initiated legislath to
constitute a Telecom Regulatory Authority. The India Infrastructure
&port compiled by a 13 Member Committee headed by former Economic
Adviser in the Ministry of Industry, Dr. Rqkesh Mohan and made put& by
the Government in January 1997 incorporates recommendations of far
reaching importance and may form the basis for. economic reforms ia the
countrys infrastructure sector in the coming years. I t has been
i q x m m d d in the rep; that the Department of Tclecom be corpontised
as India Tdccom. We endorse this recommendation of the report. We also
pdvise that the Government immtdhtdy create the hg-awaited and overdue
Irasar Bharati Corporation.
.\.lotrrtctk
**mragmztit
Restrutturitig
itrevitahle
28. I3
Wc have noticed certain degrec of redundancy in materials
nlanagement stream as well, particularly after recent decentrdisrtion of purchases
niade by Directorate Gencral of Supplies and Disposals We have dimmed the
i~sucson Indian Supply Service and Indian Inspection Service in the Chapta on
hgineering Services. We suggest that-the Govcrnmcnt considcr significant
rductionin engineering w d - f m c in DiractorateGeneral of Supplies & Disposals
in the light of its reduced role in procurement of materials. We also ~wxnmend
that the Indian Supply Servicc (ISS)bc abolishcd in the long run wiihout any
prejudice to the career interests of thc existing members of the Senice.
28 14
Finally, me express our agreement with the conclusion of I1T
report that m view of discanible trends &.by
us earlier, a major restructuring
o f government ministrics/departments is inevitable in the long run and we
should respond to this situation in a phased manner. I t is our estimate that
a reduction of the total manpower in the engineering cadres by 30% within
a decade is very much possible.
Role, ObMtiiws
amd Activities
Dislributinrr qf
the services
28.15
Transfbnnation ofthe Indian society in its dentlcss march
towaal~props, seif-reliance and grsbal Compditiveness, as agoal of Screnct rufid
tcc:mology, is one of the major concerns of the Government. Covering a var&y
of rields of activity like Biotechnology, energy, ocean development, agriculture>
me,eorology, dectronics, communication, space and atomic energy. :.cientific
scrviccs exist in organisations concerned with work relating to. basic or applicd
rescarch, cxperimental development and design and engineering.
28 :6
Contemporary scientific and technological activity.
particularly of the research and development variety, is generally carried out in the
Central and State Government S&T Departments. and in sonic of thc socioeconomic Ministries, Non-gomnmcnt organisations. indcpcndcnt iesearch
institutes and m-house R&D by private sector industry The Ccntral Govcrnmcnt
accounts for almost 314th of thc total expenditure on R&D activity in the country
lhroiigh its natmnal laboratorics and R&D institutions The Central Govemmcnt
25 1
Mmistryl
Depttl
Orgrnisation
mai
DRDO
Atomic
3107 I l l 5
4848 1685
215
10793
700
4022
803
734 1
469 295%
3847
I73
Energ?.
SP=
DST
171
NC Enugy
166
Electronics
369
1Ii
55
Environment
de F m t s
92 373
355
23
12
Blot Technolorn
34
12
25
DSIR
40
46
17719 6465
742
351
4218
7808
848
32,831
sources
535
27
847
37
DeJClOpllMXlt
OthCrS
TOTAL
3079
72
46
28.17
The largest concentration of the scientific and technological
personnel is in the first four of the organisations listed above At thc time of the
Second CPC the S&T pcrsonncl comprised classcy I,II BtlIl, with a total sttmgth
of 7126 The Third CPC placed the figure at 22,026, cuvcring the first three
groups The c(XrcSponmngfigureas in I994 is estimated at 3 1,983 The trend of
gowith m employing scientific and technological talent in the Central Government
can be gauged from the following:-
CPC
{and year)
Second CPC
GROUPS
B
1427
4771)
929
(1%9)
252
TOTAL
7126
<:rc
CROUPS
TOTAL
f
{and year)
A.
Third CPK
( 1973)
6928
(1 5.4%)
4835
(9.1 O/o)
I0263
(S.6%)
22026
(6.4%)
N.A.
N.A.
N.A.
N.A.
Fourth CPC
(19%)
Fifth CPC
17719
6456
7808
31983
(4.6Vo)
(1.4%)
(-)1.3%
(1.88%)
Source :Reports of respective CpCs (Figurns in hruckets indicatc avcragc annual gmwh
l1M)
Impact o/
h&cra'Jsutlor,
28 19
De\~elopmcntof new knowledge is essential far the development of a
growing economy such as India, particularly in propagating indigenous and
appropnate technologies With liberalisation,Indian industry is faced wth an open
cummy and being exposed to global competition Acquisition of relevant know
how is indispensable for success in the market place. Comrmtted to spcioeconomic growth through adoption of scientific methods and appropriate
technolop, science and technology bas to measure up to the incregscdpressgcncrated in the process of liberalisamn. Scientific institutions, f a d with a larger
necd to generate research funding, will further fcel the need for state-of-the-art
technologies to remain globally competitive. Industry is not .and MMO~ be
expected to allocate scarce economtc resources far producing knowledge not
M
y related to its profits. A lion's share is expected of the Central Government
fix investment in R&D,requring an appropriate mis for basic and applied science
It will make economic sense for scientific research infrastructure to be of use to
industry lhrough appropriatc linkages and transfer of technologics Industry, thus.
\\ill rcqum a more actm mtcraction with the Govcrnmcnt's R&D effort to exploit
the itvdabk expertise. In ths context, there is geed to strengthen the mechanm
that nurtures a long tcrm relationship bctwcwl domcstic i d u s e and fcswch
labontoncs Scmufic sen ICCS will require all the flexibility at their command to
253
28 22
We obsewc that a largc amount of R&D cffort within Ccntral
Govcmmcnt is already camed out by autonomous bodies like CSIR, ICMR, ICAR
ctc. Orgarusing I U D activities along autonomous lines helps not only in creatiic
flmbility, but also enables the provision of appropriate linkages with industry We
recommend that research and development function within Government
should as far as possible, be organised in the form of autonomous bodies to
be aided and advised by Central Comment, except for sensitive R&D effort
related to the Wurity and integrity of the country, which should continue to
be done in Government Departmenti.
Priyutising
ancillary R&D
rnPP0r'
28 23
Some 2ientific research organisations haw organised support scrviccs
Iikc supply of parts and components. conducting routine tests. calibration ctc
within the departmentalised units It is possible to pernit supply of parts.
components and sevices to remain in the private sector without offating thcir
woriung. The Rajan Committee as also the con~ultanc).study haw suggested that
for development of linkages df industry with the R&D effort in Government.
scientific personnel should ba permitted to migrate to industry so that such
anciilary senices can be develqped and farmed out to the pnvate sector. On the
question of lateral movement of R&D professionals we have made our
recommendations elsewhere We also recommend that services ancillary to
R&D effort, as described above, should be progressively disbanded and
privatised.
Conuncrcial
potential
28.24
The DepaAent of Space, Atomic Energy and other research
orgarusations have, over the k a d c s , developed potenbal for providing commercial
services in general and are ffequently engaging themselves in the provision of such
services. We have already noted elsewhere in this Report that thc .-ole of
Goyernment has to bc that of a facilitator to augment provision of goods and
services withm the ecaromy. It is, therefore, essential that Central Government
should not directly engage itself in tapping commercial potential arising out
of its R&D eflort. Transfer of technology for commercial exploitation should
be directed towards the public or private sector enterprises. In the yelcbant
Chapters w ham recommendsddisbanding or privatising of ccrtain scrviccs of this
nature
Overlapping
28 25
Wc also observethat Ministrics and Departments within thc rcdm of
scientific activity perform the functions that overlap with othcr Ministrics or
Departments or thcir attached and subordinate officcs The functions of thc
jitncti0n.r
254
National Atlas and Thcniatic Mapping Orgaii!satioii and tlw Survq of India and
sonw:ofthc organisations dcqling with fislicrics (Fishcn Suncy of'India. Ccntral
I iistitutc of Fishcrics. Nautical and Enginwring lqaining. Ccntral lnslitutc ol'
Coastal Engiixcriiig for Fisheries, Intqrarcd Fishcrics Procjccts. ctc.) arc cascs i n
point. An area 0 1 similar ovcrlap is thc grant of assistpncc and advicc to
Govcmmcnt- aidcd institutions by Minishcs and Dcpartmcnts othcr than thosc
utidcr whom such institutions fall. Wc havc rccommcndcd in thc rclevant Chaptcrs
me!ga of organisn(i0nScngagcd in such ovcrlapping activilics and appohmcnt of
cspert committees not only to identify rttc: overlapping arcas but also to suggest
thc optimal mix of thcsc scientific activities within Central Go\emmenl. We
recommend that such overlappingfunctions as have been directly identified
by us or by committees, based on our recommendations, should be remedied .
within specified time frames which in our opinion should not go beyond the
next five years.
Ahh'.dilling
28.26
Optimul Teams
28 27
Scientific work is generally creative and does not remam confined to
hierarchical roles. The spirit of Team-work is of crucial importance in scientific
projects. The incentives recommended by us for working with smaller teams
and effecting savings should form part of the overaU assessment in the
modified FCS procedures.
c~~cluslon
28.28
to achieve a 30% cut across the board in the Central Government SBsT staff
in the next 10years. We an hopeful that thc above measures will go a long way
2SS
I hA p : n , u d
28-29
Thc hcalth scctor plan cnvisagcs iniprovcmciit 01'
infrastruclurcthrough delivcry of primary. secondary and tcrtiary hcalth care and
aupmting resc;rrch'wittt.thcaimof achicving hcalth for all by thc ycar 2000 AD
The institutions and organisations in this scctor arc mainly conccmcd with mcdicd
relief & supplies, rn&i@l cducation, training & research and community health
Programmes.
Sue t$nuatapwer
28.30
Thc Mcdical and Para-medical scrvices togcthcr comprise
about 25,258personnel, of which 8327 are medical, and the rest para-mcdical and
support staff Thcst persMlnel arc primarily engaged-in the delivery of preventive.
pranolive, curativcand rehabilitative health care. The Mcdical personnel are part
of three organised services - Ccntral Health Servicc, the Indian Railway Medical
Service and the Indian OrdnanceFactories Health Servicc. Thcre are also somc
medical posts outside the& services. The para-medical personnel arc organised
into 1 1 categories which help the m d c a l men in &Jivering the hcalth semiccs to
the communityat large: The figures of medical manpowcr for thc pcriod 1959-94
are as follows:-
Service
C.H.S.
I.R.M.S.
I.o.F.H.s.
others
TOTAL
'!973)
(1986)"
(1994)
1073
3880
52I
658
6132
3138
'2259
397
474
6268
3600
1650
550
'200
6OOO
5233
2569
275
250
8327
Note
Figures of 1959 and I973 mclude some Group B and Group C posts
also, hence the decline, as only Group A posts were counted in later
years
AnnuolGrowth
Rates
28 3 1
These figures indicate that betwren 1986 and 1994. the
manpower m medical sentids has grown at an annual compound rate of 4 2%
which is quite OonsiderablG when compared with the overall growth rate of I % for
civilian employees during the same period
ExperiencesoJ
the past
28 32
Eatpenments have been made ~ fthe
)
fidd of m e d d insurancc
privatisatm of medicat practiCCs, health delivery services, clinic sharing. etc .
wthm and outs& the country Various Committcts and Government agencies in
the past have gone into the question of organising and re-organising the health
delivery system and services, in keeping kith thc goals of primary and total health
care It has bccn pomted out by them that therc should be no nastage of talent in
the utilisation of qualified personncl for routine duties, overspecialisation should
bc guarded against and curative and preventive measurcs should be integrated
.4 dvcim-rs IN
2 8 33
Advanocs in &ca4 sciences and technologics haw kept pace
with phimnamtical advances. Sidc by side, the emergence of newer discases and
mc*drccrt
'CLL"Ce.'
256
28 3.1
Kccping in mind thc abovc trcnd and sccing thc disturbing
ratc of growth of mdcal manpower in thc last decade, wc organrscd a consulta~~c~
stud! through thc Indian Institute of Public Administration to definc thc future rolc
of Govcrnmcnt mcdical scniccs. in thc changing socio-cconomic situation in thc
country and to suggest measurcs for rcstructurtng thc mcdical scniccs Thc stud?
has pointed out that hcalth will rcmain a vital function in Govcmmcnt and. at lcast
tn thc foresccablc futurc. it cannot bc lcft to markct forces which arc drncn b\
profit-masimisation motivc It has also emphasi'scd thc role of primary and
commmty hcdth carc as ajcading one in thc years ahead We ha\ c kcpt in mind
thc suggestions in the consultancystudy in making our rccommendations
p,rivarehospitals
28.36
The Minisay of Health has recently issued orders rccognasing
privatc hospitals for in-patient and specialist treatmcnt for Central Govcmnicnt
employees and pcnsioncrs Though we do not advocatc complete privatisation of
' medical and hcalth scrviccs, there is rcason to bclicvc that such a recognition
reduces the pressure of manpower on Central Govcrnmcnt institutions deli\ cring
health carc We accordingly recommend that at least one private hospital in
each city having a CCHS dispensary should be recognised for in-patient and
specialist treatment of employees and pensioners
~'~Jtlhclcl~~lll
SZ17'1CC t
28 37
The Consultancy stud! suggestcd that onc \+a! of attracting
spccialists and supcr-specialists and making thcir scn iccs availablc through
Governmcnt institutions, is to resort to contractual appointments. with somc
flc\ibility to ntgotiatc the icrms bctween thc contracting partics This nicasurc will
o'nviatc thc nccd to have regular nidical ycrsonricl n i t h \cry high qualifications
u,,m I
50.215
31.304
61.141
3 I .9c+
4.07.217
76.02 I
1.92.110
1.14267
4.f10.670
40.097
I .50.2YX
. 55.2W
60.5 12
i6.186
15.622
6.S I .7P9
16.54.066
47.149
32.295
3.0.376
76.948
I .93. I43
1.19.42 I
4.611.755
4 I .410
I .4R, I95
56.m
( h n d 'rcUJ1
4.15.700
77.425
I .')5,0 I 5
I. 14.370
4.4 I .05 I
39.122
1,32.037
54.242
59.065
16.45.221
49.149
30.302
4.16376
77.76 I
I.W.761
1.14.mn
4.27.379
31.025
1.53.61 5
53.511b
57.069
wwi
29.941
4.l6.151
75.155
I .11.672
1.13.163.
15.657
15.411
16.23.495 .
-1.m.mn
37.32 I
53.217
54.050
52.569
I6.02.05I
I'iabiliy of
Raiiways
29.4
Indian- Railways is a labour-intensive oqynisation. The
produdivity ofmmpmver,k r m , is an important factor for thc Organisation in
sustaining fmmcial.viability. The Railways havc bcen successful in arresting
growth ofnumpowxdunng the last fcw years - thc total strength of employces, in
fa& has shown a decline during 1991-92 and 1994-95. Thc cost of staff, however,
has bcen steadily rising as shown' below:-
1950-51
I 157.0
1970-71
1374.2
1572.2
1651.8
164.1
1645.3
16253
1602.0
1980-81
1990.91
1991-91
1992-93
1993-94
1994-95
I 13.1
205.2
459.9
1316.7
913.6
lwodl
5166.3
5760.6
6562.4
7286.3
~076.9
I245
1774
3347
8376
31273
34828
39869
44812
50411
29 7
The staff costs- arc a s u b s t a n t i a l 45% of the ordinar), working
cspenscs in the Radway budget estimates of 1996-97 If liabilities on account of
pension arc included, the staff costs \\ill bc a vcry high 59 5% of the w o r k i n g
cspenses
11
11)
: 262
. ~ ~ ' ~ ~ ~ . Sc!f i ~ ~ ~ ~ ~ ~ l I , ~ l ~
"rr""dc'"?~'
19x5-86
1986-87
I 987.~8
l')llX-X9
1989-90
1990-91
199 1-92
1992-93
1993-94
1994-95
Source:
Irio!iici.c
./
I'rodirs / I V I ! L
1ndc.s
U'ngon h s
in rnillions
Index
1613
161 1
1618
1626
t647
1652
1654
I646
1625
I00
99.M
100.3I
I00 H 1
102 1 1
102 42
102.54
102.05
100 73
15.788
17.:04
17.800
I X.b9 I
18,736
19.230
1602
99 32
100
I Q769
112 74
I14 59
11x67
121 xo
I 2 X 53
131 49
I35 07
133 33
Employee in
Ihousands
20.292
20.75')
2 I .326
Z2.OO t
I'ehicle h j n z Indcx
111millions
7,439
'7.624
7.979
x.171
8.502
8.585
X.902
9.170
9.367
9.666
100
1024~
10726
IWRI
I1429
11431
I 1967
12327
I2592
12'H-J
-- - _- - - ..- __
~Data on number of cmployccs and traffic carricd from Annual
Rcport and Accounts ( I9949S) Ministn. of Railways
29 1 I
This analvsis shows that manpowr productn ~ t yin terms of
nagon Km and Vchiclc Km incrcascd b\ approwiatcl\ 39%and 30%rcspcctn cl!
against an almost stagnant work-forcc of I 6 million during thc dccadc Howver.
thcrc has bccn a hefty invcstmcrit of Rs 24. I26 crorcs In Rail\va)s during this
pcriod The dccadc of '80s i s also markcd by important managcrial iniiovatrons
u Iiirl: rontrtbutcd to improi ciiicnt i n productivit\ llicsc inom-ations rncludcd
Vehicle Km
Index
I 0 8 5 -86
1986-87
1987-88
1988-89
1989-90
3 uc
4.30
4 67
4.96
5.57
I00
I13 25
1990-9I
I991 -92
1992-93
1993-94
6.05
6 46
Year
1994-95
Wagon Kiii
I00
I I0 xo
I I 0 xo
i -30 2
I41 09
158 43
I05 84
I82 0 7
121 3
128 8 3
144 68
157 I4
167 79
1x1 82
I02 47
302 33
7 00
7 41
7 70
Index
10 1.09
20 I
ox
1970-7I 1.22.434
1975-76 I .44.840
I9&-81
1.62.040
1985-86 2,00,x40
1986-87 '2.17.230
1987-88 2.24.450
I 988-XY 2;24.350
1 989-90 2.3 1.5 10
1990-9I 2.39.235
I00
118
132
f 64
177
ins
I83
I R9
195
4.621
5,245
100
6.51 1
141
7.M9
R.208
8.550
8$06
8.791
9.0114
1 bJ
177
1 n.s
I13
I84
I90
I96
1.519
1.557
1 996
1.783
I 567
100
I03
132
IIX
1619
I 598
I04
I07
106
I636
I 748
I OX
I I6
NU I ~ - ~ ~ I
t.
.SllIllV
29. I3 . A further jnerease in the wage bill of Railway cmplqecs is incvitablc aficr
our recommcndations arc implcmented,by Lhc Govcrnmcnt. Remedial action
~ ~ I I ~ J . ~ I I
should also bc simultancous. Thc Railway Administration can igoorc thc \\Tiling
on the wall only its o m peril. The Railways \\ill h a w to achicvc much morc in
tcrms of improvemcnt in staff productivity and rcduction in rnanpowcr than
iiidlcattcd in the slatistics above. A diagnostic study coiiducted by RITES in 1990
264
I0
27
824
15
3
I10
2X
29
23
75
I
6
132
20
20
I 0
4
20
'liital excluding
Casiral Iahour
45
1466
455
295
* Casual Labour I 13
Note:
This can bc adjusted by kccping thc frcsh induction to thc Icvcl of 35.000
men pcr ycar upto !ear 2000 against nornial \vastagc.
Thc staff strcngth pcrtains to 1988-89 and docs not includc staff
.RDSQ, Railway Board and Production Units
fifli-1ivc
nnucItrN1
pr>trti~iui
in
SIUCI,~
( 'll,nnrr.~.~rwrc~cf
/!I.
29. I5
1)
ti)
M / s KITES in tlic
:,ti
in :(.
.-lS.~*.~W~~*ltI
I ' i w sC J ~ I / W
.\ fjtiistcv I ! /
hilwci,vs
29.I6
The lnstitutc of Applicd Manpowx Rcxarch cspresscd
difliculties in c q i n g out thc study strictly within thc tcrms of rcfcrcncc on
account of limircd timc and non-availability of adcquatc inputs from thc Railways.
Thcy instcad uscd thc timc-trend method for projeting thc trafic and tnanpwcr
requircinen(s of railways for h c ycat 2000 on thc basis of data collcctcd by them.
IAMR thus assessed that tbe railways will need 14.4 lakh staff in the year
2000 and suggested that there is a surplus manpower of 2.6 lakh in Railways.
29.I7
266 :
g\ui
wcightagc
811
thcir
ii)
Our views
iii)
iv)
\f)
29.18
The protestations of the Railway Administration
notwithstanding, we gather that there is virtual consensus among railway
managers regarding overstaffing in railways. Thc arcas of rcdundant
manpower rn also \\.ell idcntificd as noted in Railway Fare aiid Frcight Coinmittce
Report of I993 -
1)
i 1)
ill)
public.
i v)
(.'onclusiot,
b)
Privatisation;
c)
Optimizirtion:
d)
Redeployment:
29.22
In conclusion, \vc \\auld cndorsc the following exhortation of thc
Railway Farc and Frcight Committcc ( 1993) for the railway managcmcnt -
30
o-
'
7&P ds-
GENERAL INTRODUCTION
tlismn
'Vetwork
30.1
India has the largest network of Post Offices in thc \Corld - I ,52,786 Post
Offices (339% of them in rural areas) - handling over 13,339 million postal articles
annually. These P&t Offices arc organiscd into I9 Postal circlcs comprising one
or morc Statedunion Temtorics, structured into 435 Postal Divisions hcaded by
a'Divisional Superintcndent of Post Ofices. Post Offices are classified as Head
P d Offices (834), Sub-Post Offices (24,8 18) and Extra-Departmental Sub- and
Branch Post Offices (1,26,385). Of thcsc 1,45,966 Post Offices (96%) perform
h c deliveq function, and 170.providenight postal facilities. On an avcragc. cach
Post Ofice serves a population of 5,553 within an area of 21.60 sq. km..To
operationalise such a vast network, the Postal Services are manned by 5,96,062
pcrsonnel, over 3 lakh of them being estra-departInental. Furthcr, therc arc 573
Sorting Officcs and 438 Rccord Offces, under Railway Mail Scrvicc Divisions
handling sorting, routing and transmission of postal articles.
.
EMERGINGSCENARIO
30 3 Earlicr, the Postal scrviccs enjoyed a monopoly status, thc traditional VICW
of chc m i c e bemg that it is a social responsibility As a Govcmmcnt dcpartmcnt,
chc postal savices enjoy a reputabon of a public utility scnvice with a Icgal sanction
backmg it. in as much as thc proof of dclivcry of any postal articlc furnishcd by the
Post Oficc is accepted\:s a legal document in any court of law Thcrc IS also a
270
304
Thc Objcctivc of thc Dcpartmcnt of Posts is to cnsurc an cfiicicnt,
cconamical, spccdy and rcliablc postal scrvice in the countty. In rcndcring this
scrvicc thc Dcpartmcnt's mission is to reach both quantitativc and qualitative
cscellcncc aimed at total ukcr satisfaction.
.The Third and Fourlh CPCs both attcmptcd to highlight thc nccd for
-cficicncyand cfldveness h the Postal Scrviccs. Thc Fourth CPC rccOmmcndOd
that the Postal services and ~ C ~ S O M C I management may, be rcvimd by a
Committcc so that it is possiblc to achicvc postal excellcnce and give satisfaction
to thosc employed in the vast infra-structure of the Department.
I ~ - ~ ~ ~ r ~ (30.6
' ~ m An
; ~ ~
c ~
expert
1988-89 that many of the ncww organisatiom had responded to and accepted
modern technology and methods of work, but the postal service because of its
colonial origin had continued without much change in its early work pracdccs. The
Committee noted that the postal servicc failed to (a) attune itself to the changing
needs of the various segments of postal users; (b) increase the productivity of
postal employees in the context of increasing man-pow costs and availability of
nc\v technology; and (c) respond to thc low morale of thc postal employees who do
routine manual jobs which offer no chancc of upgradation of their skills and
scl f-devclopmcnt.
7 Since the timc of thc Postal Exccllcncc Conimittce, thcrc has bccn a
planned cffort to modemisc the postal systcm. Bcgimiing,withS p a Post on 15th
August, '1986,a number of new scrvices and strategies havc come into operation.
Introduction of automated mail processing, computerisation of countcr and other
opcrations, including Hybrid Mail and Satellite Monq Ordcrs, value added
mites;dedtcated transmission channels for Business, Metro and Rajdhmi Mails.
ergonomics and other technology inductions arc outstanding instanccs of thc efforts
to meet thc modcm markct chdlcngcs.
- ~ L * ~ h i ~ ' u ~ j v t ?30
s
S ~ K W ~ ~ ~30.8
J S ~On
~ the servicc front, aspirations of the users w
ith rcspect to postal services
"M~rove'"e'J'
i
d to be met without dislodging thc social objectivc. Agc-old practices rcquirc
a frcsh look towirds modcmisation and cficient postal scrviccs. There is.
d i m i b l e anxiety to mcct LIE cnicrging markct challciiges in the facc of a growing
pcrception that the postal services hnvc not bccn ablc to ma3 thc.cver increasing
demands of postal trafic. Tlicrc is substantial cvidencc to suggest that subsi&
27 I
/~i.~'o,N,J1r.ndr';~J~.\
30. I0
(I!
rb.
.%JtcfI'
Thc Consultancy Study obscncd that though thc postal network in India
is onc of thc largcst in thc world with a pcnclration that is ividc and dccp. its
capacity as a nctwork to copc with thc cmcrging scnicc dcmands i n tcnns of
magnitudc, rmgc and quality is currpntly undcr doubt. Rising costs of opcrations
and cscalatingnccd for budgetary suGsidy arc ncither ncccssan nor dcsirablc. The
Dcparlmcrtt is showing cvidcncc of swain and overstretch. It is currcntly facing a
crisis of mismatch of two major kinds - first, its currcnt compctcncc and attitudc
on Lhc onc hand, and the niagnitudc of growing dcmands on thc othcr; and sccond.
its ovcnvhclming prcoccupation with thc familiar scniccs at low cost and falling
Ic\*clsof eflicicncy on thc onc hand. and a fast growing. highly dctnanding and
considcrably lucrativc cmcrging markct in thc urban busincss sector on thc othcr.
It further notcs that dcspitc the cfforts at modernisation and introduction of
strategic changcs in:;a; reccnt pat, thcrc is still substantial scopc for optiniisation.
30.11 Thc study has niadc scvcral suggestions on rcstructuring thc postal
services. These have taken into account the need for eliminating obsolctc and
incflicicnt units.. mating n c w r ones for morc cMicicnt and clktivc functioning
and acqlliriiig ncw capability to scntc cmerging nccds, as also rcorganising thc
organisation's nianpowr structurc. We haw kcpt in vicw thc suggcstions niadc b\*
the Consultanq. Study in making our rccommcndations.
I
/'I?(
14 5 l#1
I'cr w i t i d
.lo. I3 \-C'C IIOIC t k i t IIO ciircct tccrtiitt\iciIt takcs 1jliic.C iit ;\ti\ OIIIIL' opcrat:\c 0 1
liiglicr Icvcls hcttvccii I'ost;iI/Sortin_c Assistants ( Ks 97C-.1000) atid tlic Itdtiiti
l'istal Scnicc (iroiip A (Ks.2200-4000).thouglr sci~cralfunciioiial Ic\.cls csist
'I'lw: cqxmtrvc cddn:of I'c~tal/Sbi-tiii_cAssistants providcs for dircct rccruitni*nt 10
thc cstcnt of 50%. \\hilt Postinastcrs. Inspcctors and Postal Supc'ititci~d~~i~s
itrc
nxniitcd aitircly dircuigh dqiarliiicntal channels. 'IXc Third CPC. \vhiIc obscrwng
dic I& for grcatcr clr?cicnc!* in tlic PRT scrviccs. rccommcndcd rcduction of llic
prqiimtion quota from SO to 2 5 5 at tlic clcrical Icvcl atid introduction of dircct
rccruitnicnt to thc tunc of 25'X at thc Icvcl of Inspcctors, subjcct to iniurovaiicnt
of pay scalcs for tlw lattcr. 'IIc Fourth CPC also obscrvcd a siniila: n
d and
mtimlcldcd itti clcnicnt of dircct rccruibiiciit both at tlic Icvcl of Inspcctor as \vcll
as at Postal Supaintctxicnc's Icvcl. to iiicct opcrational clrtcicncy and flcsibility i n
dcploynicnt.
30. I4 The Cotisultmcy study has suggcstcd that ~ t changcs
h
in uscrs' dcniatid
pcttcms and tlic Dcpartnictit's ongoing cllbrts at modcrnisttioii and
rc-organisation. thcrc is an iirgcnt iiccd to bring down thc agc profilc of thc
workforcc. and raisc llic c n t n Icvcl cducritional standards. talcnt and innovative
capacity.. It has also suggcstcd scgrcgatioti of cntn via thc Extra Dcpartmcntal
Agctits routc. Sincc almost XO'%I of thc cniployccs risc to highcr Icvcls through
Intcrnal mcchanisnis, this rcsults in a larger part of thc organisation rcflccting an
agc prolilc dcvoid of frcsh. young and conipctitivc talcnt from thc opcn niarkct.
PAY-SCALES
POSTAL BRANCH
RMS BRANCH
Rs.1640-2900
Rs.1400-2300
ASPOs - 1,362
IPOS - 1,905
A-SRMS - 345
IRMs - 173
I .707
2.078
3,267
518
3.785
TOTAL.
TOTAL
30.17 liispcctors in both branchcs form fccdcr grades to thc posts of Assistant
Superintendents who, though functionally dtffcrcnt. mcrgc at that Icvcl. oril!. to
form a f d a gradc to the Postal Supcnntcndcnt Scnicc Inspcctors form thc first
csecutr~crung for postal and mail operations, for f d m g thc first rung of Junior
Managers \\hchIScommon to the two Bt-mchcs. We f d that interchangeability
and experience in both is essential to be effective as Junior Managers, and
accordingly recommend that Inspectors of Postal and R M S branches be
merged into a single cadre. Consequently, the promotion level of Assistant
Superintendents in the two branches will also be merged
nc
30.19.
Postal Federations havc also dmandai introduction of a fast track for
the meritorious and qualified pcrsonncl .in the highcr echelons of thc middle lcvcl
opcrativc structurc. Thc Dcpartmcnt also fcels that such a mcchanism will bc
csucmcly uscful in thc mattcr of flcsibilit?to mcct compctitivc markct dcmands.
as also man the critical arcas with thc b a t availablcralcnt. Wc arc of thc opinion
that such a mcasurc will go a long way in rccognising cxccptional talcnt and
improving cficicncy in thc pcrformancc of thc postal scrviccs. Gcncrally, thc
Dcpartment has a systcm of examination for internal rccruitmcnt to thc gradc of
PostaYSortingAssistants and Postal Supcrintcndcnt. 50% of thc vacancics in thc
fonncr padc arc filled by dircct rccruitmcnt. 75% of thc vacancics in thc gradc of
Supcrintcndcnt~ I Cfillcd by promotion and 6% through dcpartmenial examination
o f s u p c h ~ s o yoperativc staff. Keeping .in view the above position, we
accordingly recommend. that the vacancies under the Departmental
examination system for the levels of PostaVSorting Assistants and Postal
274
.Wiw
#II'~#JJ.\
3).3) Shortqys of aianlmvcr have ol'lcn been citcd as tlic siiiglc largcst factor
alKxti.Iig tllc clriicnq oftllc Postal stmias. 'Ihc tMaratJic 'fimc Tcst is a standard
> ardsticli dcvclopcd hy tlic lkpnrliiiait of Posts siticc 195 I .IC asscss manpow:
rcquircmcnts in the post and mail olXccs Posts arc "crcatcd" bascd on tiianlliours
mcalod by thc tcst. Thc norms arc also citcd to justify manpowcr shortecs. 'Ihc
con'sultincy study has suggcstcd that thc norms and productivity mcasurcmcnls
should bc mahc upto-datc to.dctcnninc mcaningful stafing pattcrns and cffictcnt
cvaluation of pcrformdncc. Thc study has furthcr point4 out that dcspitc thc
c'sistcnccof norms n6'action is initiatcd at tcsting actual pcrfonna.ncc. csccpt iwthc
KMS through pcriodic tcsts for iticrcmcnt and cflicicncy bar. in thc first tcn !cars
of a solids scrvicc. Manpowcr shortagcs arc. thus, citcd as a blankct thrust arca
Tor improving cflicicncy. Thc Dcpartmcnt nccds to follow a morc rational
approach bascd on an objcctivc asscssmcnt of nccd, and also find nc\vcr tvays.
through modcrnisation, computcrisation and rcorganisation for improving
cficicncy. Thc norms nccd to bc updatcd and rcsct. Thc old norms bascd on thc
Mmthc Timc Tcst havc lost their rclcvancc, and arc now only hclping thc staff to
obtain overtime paymcnt cvcn when it is not justificd.. TCc Dcpartmcnt's vic\v IS
that modcmisation- and mcchanisatjon cfforts haw b a n initiatcd to nicct
rcquircmcnts of cficicncy. Thcre is nccd for changc in work culturc. upgrading
skills and Iadcrship at supcnisory and managemcnt Icvcls, and making ficld units
sclf-suflicicnt. Wc find that with-the cmcrgcncc of automation, computcrisation
and modeinisation, not'only ham the norms become outdatcd, but cvcn for csisting
mcthodologicsno new norms havc bccn.dcvclopcd. Thc inhcrcnt dysfunctionality
is manifcst 6 thc fakt that they arc based on "timc" rather than "piccc". 'Timc takcn
for a transaction is d i f f m t for differenl persons in a given technology, but it could
v a v for the same sd of persons using diffcrcnt tcchnologies. Conscqucntly. piccc
rates havc to be conditional on thc spocifications of tcchnolo~.The knns also
do not provide'for constant improvement over a period of time as the skill of thc
\vorkcr improves with experience. There 1s an urgent need to redefinc the basis of
the norms as also the iKwms thcmselvcs. To begin with,theMarathe Time Tests
should be shelved wherever newer methodologies of transacting business
have been evolved. Piece-based manpower requirements may be evolved by
engaging independent consultancy, if necessary. Tlic revision of norms milst
incorporate a factor for upgraded $dls by cxpcricncc as wcll as training in nciv
'tcchnologies. These norms can, thus, be used for staffing to mcct traffic
rcquiruncnts and \;orking out inccntivcs for higher efficiency. The'higher norms
should be used at successive-stagesbf assured-career progression.
.S<WII)?s
~c
'n7Cc'.~
30.2 1
A ~ k thc
g operational arcas of the postal scrviccf, sorting has bccn
a major conccrn with thc managcmcnt as \\.ell as staff. Whilc thc Fcdcratioiis'of
Postal Unions have dcniandcd .rc-opcning of Sorting Sections, the Consultancy
Study has suggcstcd scparating thc sorting functions from othcr postal functions
by. rclocating them at morc suitablc suburban locations in ordcr to pool thc
rcquircmcnts and for spccdicr sorting through mechaniscd mcjlns. It will also bc
conducive to the mcrgcncc of a ncw physical layout and ofice cnvironmcnt so as
to cnsurc an optimal rcstructuring. Both suggcstions in fact tun in diamctrically
oppositc dircctions. Whtlc thc formcr suggests mobilc sorting & running trains,
b e latter specifically dcsircs to scparatc thc sorting function from thc Post Ofliccs
ui fvour of siiburbw (but stn:ionuy) rclocalion. Till 1084, thc process of soning.
~ 30.22
~ ~ ~ Demands
~ ~ ~ and
n r suggestions
~ ~ ~ ~ havc
~ . also
~
ban
;iri i11ig~tiict11
1 0 aiiract
concurrent intcnial audit. without actually pcrfonntng the savings bank fliiictioii
'rhc csisting arrangcnichs for Postal Li fc lnsurancc arc sufficicat and no changc
is c;illcd for
3 0 : 3 As rcgards nicrgx ofNationc?lSavings Organisation with thc Post Ollicc
Savings Bank. wc notc hat Ihc t\vo fuictions arc cntircly diffcrcnt. Whilc thc Post
Ofiicc performs the task of Savings Bank only as an agciic! function for 11ic
Minis@ of Financc, thc National Savings Orgaiiisation is a subordinatc ofiicc 01'
thc Ministry o\wsccing the rnobilisation of small savings and dctdoping
programmes and schcmcs for tlic purposc. Thc ccntral rolc of the Post OFTcc in
the cconbmy is that of a carricr and distributor of mails. Thc agcncy function IS
cntrustcd to it only bccausc of its estcnsivc network and rcach. W e do not feel it
desirable to saddle the Post Office with resource mobitisation functions in
addition to those it already handles.
277
cxaniine the feasibility of cncrdering tlic posts of the Costing and Rrtcs tinits
in the Indian Cost Accountants Service and reorganise the threc hithrrto
separate units into a professionalised Costing Unit headed by a J A G Ofliccr.
responsibledircctly the Postal Services Board through the Senior Ikpu:y
Director General While them may be no need for a separate and pernianent
l a r i f f Committee, the Postal Board itself should perform this function
through greater autonomy for all areas of postal services catering to a
"mrrket". Market orientation should be directed at the free play of the
forces o f demand and supply and economic decisions based thereon. We
recommend a one-time high-powered Tariff Committee to go into areas of
business that the Postal B a r d can be fully vested with for the purposes o f
commerce-based tariff fixations Thc constitution of a Busincss Planning
. a suficicnt bcginning towards a Stratcgtc Managcniciit
Lhnxtomtc, in our V I ~ V IS
t 'atetitid.
Thc Dcpannicnt must, ho\vcvcr. lirst ctisurc availabilit\. of funds for capital
invcshcnt and tcrminal bcnefits to bc paid to Govcrniiicnt cmplo>ccson switching
ovcr to a Corporatc sct-up. Sale of stamps, stationery and postal orders niay
be considered for organising through a retail private network. Clearance of
letter boxes, conveyance of mails and delivery of articles not requiring proof
2 78
:\ fiii/.\ hJlor
.St*n.icc
30.26 Thc qucstion of optimising tlic Sixc of Govcrnmcnt machincn has bccn
considcrcd in consultation with thc study group and thc Dcpartmcnt of Posts Thc
study group has suggcstcd that Mail Motor Scrvicc and Postal Civil and Elcctrical
Wings should .bc disbandcd. Thc formcr is a costly drain on thc Dcpartmcnts
rcsourccs, with difficultics in gctting qualificd pcrsonncl to run thc services. Thc
lattcr had no logic at thc stagc of its crcation and its idlc capacity is also a drain on
rcsoucccs, not justifying its codribution in tcrrns of architccturc, layout and quality
of construction. Thc Organisation also supports a Postal Machines Rcpiir
Organisation (PMRO) for scrvicing, rcpair and maintcnancc of postal rnachincs
and a printing press at Bhubancshwar planncd for catering to the form-printing
icquircmcnts of postal circles in that rcsion.
30.27 Thc Mail Motor Senicc (MMS) cmploys a total of 2847 pcrsoruicl, of
\\.horn 18 are automobilc cnginccrs at Group A ldvcl. The Unit convcys mails
bctween Post Oflices and Mail Offices within Imal limits of cities. Thc largcr
units include in-housc rcpair workshops. It has 1 I03 whicles spread ovcr 9 I citics,
largely metropolitan t o w s . Inter-city mail conveyance is already privatiscd to a
considerable extent. During oral cvidence, Secretary (Post) informed that MMS
is already frozen and IS being phased out. We note that MMS conveys about 8%
of thc total traffic in postal articlcs. It is cxpcctcd to providc reliable time-specific:
intra-city mail movcrnent, and also remain availablc in restrictcd, congested and
security-sensitivcarcas. We arc aware that even thc Policc Departments arc now
resorung to regular private conveyahceof personnel and goods. There is no reason
whj,. private convyancc of. mails cannot be organiscd on similar terms. We
accordingly recommend that the Mail Motor Service be disbanded in a
phased manner city-wise, within a period of five years.
imd ( . i d jjitig
30.28 The Postal Civil Wing looks aftcr Ihc construction, rcpair and rnaintenancc
nceds of real estatc of the Postal Dcpartmcnt, comprising ovcr 26,000 opcrativc
buildmgs and staffquarters. It also assists thc Dcparlmcnt in fair rcnt assessnicnt
of ovcr 24,500 rcntcd buildings all over thc country, including tliosc in thc rural
inkriors. The Wing is actually undcr thc administrativc control of thc Dcpanniciit
of Telecommunications. Thc Depannicnt of Posts only maintains a skclctal sct-up
of I72 t staff and ofliccrs for both Civil as ivcll as Elwtrical works. Thc existing
sctup swnls quite ixicqmtc trir thi. purpose allocatcd to thciil and ins!' be rctiiiilcd.
2 79
es
-
GENERAL INTRODUCIION
/iis:wicti
nacAR*owHd
Sue c#:/te
sen'Jc''3
31.1
Tchmunication (Tdccm) -scrviccscbnstitutc a basic nccd for
a modern dewloping socicty. With the bifufcation of the erstwhile Post and
Telegraph Dcpartment in 1985, and- the emergence of the Dqartment of
Telecommunication (DOT) therefrom, the tchxom scctor has witncssed rapid
organisationai a;ld techno1ogical innovations and changes. AL the ,timc of
bifurcation, thc services wcrc minimal, providing basic telephony, telegraph and
seqIces. In April, 1986, thc Mahanagar Tclcphone Nigam Ltd. (MTNL)was
- c i v ~ out
d as a PSU, for d~vc~opment,
opcration and management of telecom
sa\.ioesin Delhi ad Mumbai. The Departmentwas furthet r e s t ~ ~ t u r eind1989.
with the constitution of the Tclecai~Commission.
31.2
Thc personnel manning the Telecom services are organiscd into six
ktional ~TCBS,namely Telccom Engineering, T+com Trafic, Building Works.
Accounts and Finance, Telccom Factoncs and Witelms Planning and
Co-ordnation. In the first five arcas the Telecom is distributed group-wise as
follows:FUNCTIONS
GROUPS
TOTAL
A
B
C'
D
'I'elecomEnge and
Traffic
3 ,&7
14,500
2.58.870
88,077
3,65,114
509
3,303
2.810.
6.022
Ikilding Works
463
795
2,656
3,914
18.703
2,665540
93331 342,087
*T
_.---.
4,713'
I ,3
With an assot basc \*iil1lcd;it Ks 23.000 croic'b. l'~l~coi1i
scr\'iccs
providc T~lephoiic,Tclcs. Tclcgraph aiid lii1iichiscd \.;iluc-add~dscr\.iccs. 'l'licsc
scniccs covcr all thc 3OU citics and 4080 toivns in thc couiitfi~ias pcr I00 1 cciisiis
Ccllular Mobilc'smiccs, Radio Paging Scrviccs. Electronic Ma!]. Vidcotcs, Vidco
Confcrcncing. Voicc Mail, Morning Alarni scrvicc and othcr \.nluc-addcd scniccs
arc madc availablc through a fraiichisc systcm run by privatc opcrators. Smooth
functioning of all radio communication scrviccs and usages i n thc country is
cnsurcd by thc Wirlcss Planning iYr Co-ordination Wing as tlic national Radio
Rcgulatq Authority. Two training ccntrcs (Ghaziabad aiid Jabalpur). 6 Tclcconi
factories. Civil and Electrical Wings, a Qualit!. Assurancc Ciiclc. Tcchnical and
Dcvclopmcnt Circlc and an Accounts and F.inanccOrganisation providc captivc
support to thc tclccom opcrativc scrviccs.
Scri.rccs i ' r ~ ~ t i i h 3
l
/I, ;),I;,
7%1.
Tl*lecol,l
NZIMO d
?I 4
Thc Tclecom Commission is tlic apcs polic! making bod! I'or thc
Tclecolli scniccs Thc scrviccs arc organiscd into 19 tcrritorial Tclccom Circlcs.
aiid 4 Mctro Districts. cach hcadcd by a Chicf Gcncral Manager. lor installniion
and maintcnancc of asscts othcr than thc rcgional and inter-rcgronal long distrlncc
nct~vork Apart from thc terntonal circlcs, thcrc arc 4 scparatc fuiictional circlcs.
onc cach for installation and maintcnancc of long distancc nctnorh organiscd on
rcgronal basis Telephony is provrdcd through 20.356 tclcphonc cxchwgcs.
connccting 1 19 25 lakh Dircct Euchrlngc Lincs (DELs) 99 1 Dcpartnicntal
Tctcpph ofliccs. 44.054 coiiibincd Post and Tclcgaph officcs and I032 Tclccorn
Ccntrcs run tlic Tclcgraph scrvrccs. handling 01cr 009 lahhs inland tclcgranis
annually Tclcu seniccs arc providcd through a nctnork of 412 c\chnngcs
handling 47.16 1 working connections Fully autoniatic intcmational T c h scn iccs
arc availablc to all Tcles subscribcrs through Gatcx at Mumbai. Chcnnai and Kc\\
Deihi for 238 COWICS. The MTNL providcs basic tclcphonc scn'iccs in Dclhi and
Mumbai. as a public sector undertaking. though with its cntirc staff cornplcmcnt
bcing part of thc Departmcnt of Tclccommunicntions
1
Tdecorn PoliL;l~
EMERGING SCENARIO
3 1 ,5
Tclccommunication has traditionally bccn visua'iscd as a "natural
monopol!." bascd on voice-rclatcd iini\~crsalscnicc Thc Tclccomniunication
sector has witncsscd in rcccnt years rapid tcclinological innovations. both
qualitalivc and quantitative. The National Tclcconi Polic!, 01' 1994 cn\.isages
tclephoncs on dcrnand and univcrsal availabilit!. of thc scn'iccs co;.cring all villagcs
as carly as possiblc, cnhancing quality of tclccom scrvices with thc widcst posstblc
rangc to iiicct the ciistomcrs' dcmand, protcction of thc dcfcncc and sccurit!.
intcrests of thc country, and opcning up scnkcs for prn'ate prlriicipation. l'hc
tcchnology mission of the Commission aims at tapping the potcntial that this
advancing tcchnology holds for a paradigm changc to Icap-frog into thc futurc analog to digital, voice to data and basic tclcphony to valuc addcd scnliccs of \vorld
class qualit!,.
282
I*cIwoiiilcchntcalAsststants
Assistants
Assistants
Thc rcstructuring has. ho\vcvcr. not achicvcd thc cspcctcd rcsults.
as the pay-scalcs oKcrcd in tlic rcstructurcd cadrcs arc not pcrcctvcd as attractive
cnough to motivatc thc misting stan to switch owr Thc DOT has alrcady dccidcd
to mcrgc (he Tclcgraph and Tclccom Ensinccring pcrsonncl into a singlc cadrc
Ilkmtindv it1
*c.nrmidr
I
7cmi.vof
re$eretice
SERVICES
31.11
With the abovc considcrations in mind and thc dcmands madc in
Mp~oranda,we engaged the National.ProductivityCouncil (NPC) to carry out a
studyon thc possibilityof exploring new intiatiks to mcct the rcquircmcnts of thc
Telecom services in thc fast changing information cnvironmcnt. Thc NPC \\as
required to study the prescnt rolc of tclcconimunication serviccs in the Ccniral
Govcrnmcnt and the systemic dcficicncics with thc objective of cvolving an idcal
systcm for optimum utilisation of telccom manpower, and resolving thc duality of
DOT and MTNL along with ways for rcmoving thc uncertainties in thc scnicc
conditions of employees of thc lattcr. Thc NPC was askcd to suggcst changcs in
thc aganisational structure of DOT, including norms for tcchtiical stalf in kcxpitig
with its actual rolc in a modern cschangc, and irnprovcmcnts in thc scnicc
conditions and prospects of tclcconi pcrsonncl so as to cnsurc that professionals
possessing sophisticaicd cducation and skills, who arc critical 10 the dcpartnicnls
284
rcyuirciiumts. ilvc rctainod ilild do IIOImigratc to othcr scctor~.as also It) idcalif\
tlwsc w h m such criti&Ii!y da.s irot csist and flab can hc rcducd
S u ~ ~ ~a : /.. t n
31.12
Thc study idcntificd four critical and intcrrclatcd factom al'kctiiig
thc tclcconimunicalioiiscrvicc industty - tcchnological chaiigc, changc in mrkct
dcmands. h g u l a t i o n and globalisation It has also al~scrvcd4hlhatGovcmmcnt
will havc an cnhaticcd rolc in long-tcnn planning and rcgulation of
t c k u ~ ~ a i obut
n sa dcclining rolc in dircct provision of tclccom serviccs It
hos polnlcdout a mismatch bctwccn the spccd of technological and markct changc
on thc UCI h d and thc dccaion malilng ptoccss on thc othcr. Thc cxis~cnccof too
many 1ap-s for arriving at dccisions, thc study f i l s . IF timc-consuming d
unsuitcd for a conlpccltivccnvironmcnt Suggcstions haw bccn madc by thc stud\.
in thc ovcrall contcxt of granting autonomy and mmrcialising thc tclcconi
scn'kcs at chc pmscnt juncturc Thc spccific findings of thc study hrvc bccn kcpt
in mind while making our fccommcndations
*curunm~~~irl~itiiwi.~
.
2x5
lA*s!rwtiwrq tlw
:p*r:itrw*sitr~?
7 I 15
Wc agwx that thc I)cl)artniciit rcquircs siibsktiitirrl flcsitdit> l o r
quick adaptation of tlic rapidl!. advaiicing tcchnologics llic s\vitcliovcr ol tlic
csistitig Ixrsonncl niust bc as sincwth as possiblc. In i t s rcslructuring schci~~c.
of
I9N. 1 1 1 ~ DOT has opcncll channcls for all Group I) cinployccs lacluding
temporary atid rcgular noii-matric Mn/.doors to bccotnc Phonc Mcchan~cs111
Group c. not laving room for any support staff at thc Group D lcvcl Wc do not
agrcc to thc abolition of Group D. as thcrc will al\vays bc a rcquirckctit of
pcrsonncl at lhat Icvcl. Thc gap bct\vccn thc cmployccs of thc two Groups should
rcducc ovcr a pcriod of timc. Thc proposals on assurcd carccr progrcssion nil1
achicyc the objccti\cs suggested by thc Dcparlmcnt.. Thcrc should bc two scparatc
Icvcls - Group D as onc and technical and opcrativc as thc othcr Croup D staff
may all be redesignated as Telecom Attendants afia bcing providcd appropriate
training in niultiplc skills. Thc ncsl highcr grade is thc Pbonc Mcchanic. with the
basic cne-scalcof Rs.975-1540. We recommend that Phone Mechanics be
redesignated as Telecom Mechanics. Such of those who are Matriculates and
qualify a screening test should be permitted to switch over to the restructured
cadres. The switchover should be a onetime irreversible opportunity.
3 I . 16
Stagnation in cadrcs of Junior Tclccoq Oficcrs
(JTOs)(Rs.1640-2900) and Tclccom Engineering Scrvicc Group B
(TES)( Rs.2000-3500)
havc bccn voiccd as a major demand in the mcmoranda.
Junior Telecom Officers arc the first rung for cntn into thc csccutivc Icvcl of
Tclccom management. TES is the ncst promotion Icvcl for thc JTOs, who havc
also dcmandcd upgradation at cntry on the ground that a majority of them arc
cngincchg graduatcs r m i t e d dircctly. and form promotional gradcs for diploma
c n g i m . Both catcgorics haw a lateral advanccmcnt to thc ncxt highcr scalc on
completion.of 12 years scnricc The administratkc Ministry has also pointed out
thc problcm of not bcing able to fill the Scnior Timc Scalc (STS) vacancics on
rcgulb basis strictly in accordance with rccruitment rulcs. It has suggcstcd placing
80% of thc Group B posts in ihc JTS, csclusi\d~for promotion. and upgrading
TES to thc b d of Rs.2375-3500.his also considcriiig upgrading JTOs to thc
extent oftlo% after 3 jcars s e ~ c on
c account of acutc stagnation. An cscrcisc of
mergcr of Tclccom Engineering and Trafic is alrcady at an advanccd stagc of
finalisation, which will rcsult in a larger numbcr of posts in a singlc cadrc. Thc
consultancy study has niarkcd this Icvcl as critical with substantial possibilit!. of
csodus, alongvith thc need LO upgradc qualilications so as t o nicct thc rcquircmcnts
of. advancing tcchnologics; bcsidcs upgrading rhcir pay-scalcs and providing
adcquatc proniotion prospccts. \Vhilc agi-ccingwith thc findings of thc consultancy
study as also the conccrn of thc DOT ivitli. thc probicms of stagnation and
advancing tcchnologics, \vc also obscrvc that under thc Time-bound proniotion
Ckvclopm~~
of teleconi scniccs in Dcllii and Mtinhiu. :\I1 thc nianpowcr.
h~\wvcr.is dram fmn thc Do1011 "dccnicd dcputation" tcniis. Thcsc pcrsonm.1
totalling W . O S ~arc spread at a11ICVCIS 2 I 776 iii Group D.3 ~ 4 7 2in Group C.
I795 in Group B a d N).( in Group A and haw dciiwrdcd thc pay and pcrks
applicablc to a h c r publlc scctor undcrlakings. .While ihc argucmcats fbr and
against divcstjng MTNL froin tlrc IhT arc both strong, thc dificultics in buying
back thc iiivcstmcnts in MTNL arc substantial. with rcquinvllcnts of upgrading
tcchnologics, increasing DELs, trahkg, ctc.. Thehng-term aim should be to
corporatise the entire DOT setup. As a first step, thc MTNL should be
converted into a full corporation which should be extended to other Metcos
3 I .20
The DOT has also suggcstcd mobility of its cniployocs to hclp thc
pnvatc scctor through availabilityof t m d mnpo\va. It 'suggests Lhc mcchanism
'ofdcputation on foreign smicc tcrms, with thc option to (hc employees to d u r n
to chc Departmat to cruich it with thcir cxpcricnccs. T h g h this mcasurc, Ihc
Dcpartmcnt socks to rcducc stagnatie also. Wc an: unablc to xccpt chc
suggestion on two counts. First, thc Dcpartmcnt itsclf has voiccd its conccms
about lhc possibility of csodus, particularly of critical pcffonncl, and second.
opcnings in thc privatc scctor might Ic&l to 'mdss scalc rcsignalions. or
post-rcrircmcnt cmploymcnt.
31.21
Thc !jcacmy (Tclccom) is thc Chaintian of Tclccom Commission
in h - p a yofRs.8000 ( l i d ) . Thc Commission has fmr full-timc Membcrs also
in Lhc pay of Rs.8000(fixed), onc each for Financc. Production. Tcchnolom and
sCn.iax, and dha part-time Members dta\\n from various ficlds. it is rcsponsiblc
for fmulating Tclccom Policy, its in@cmcntation and prcparation of budgct. All
the fivc posts in thc pay of Rs.8000 (fiscd)arc cs-cndrc posts. 'king part of
Ccntral Staffing Schcmc. Thc Indian Tclccom Scnicc (ITS) has demanded
posts in thc scnicc sincc it is thc mainstrcam smicc rccruited
M n g of all h.
through thc UPSC, specialising in thc ficld of Tclccommunications. Thc
admnistrativc Ministry has obsenul (hat according to rhc resolution constituting
Ihc Commission, thc Chairman and full-time Mcmbcrs shall be drawn from thc best
persons availablc, includrng those from \tithin thc Departmcnt. The ITS Group
A is nxruitcd through the combined Enginocring Scrvices Esmination drawing
oficas fian the best engineering institutions, and thcy.arc involved in installation.
opcration, mainknancc, planning, dc\~clopmcntand docision making at various
Iacls. Duringor01 hearing,scadiu?.(Telccom) fclt that cncadcring thc posts ma?
dilute the quality of mcmbcrship of thc Commission, though sincc its inccption in
1989, ITSofiicers had bccn posted to thc Commission BS Mcmbcrs, and the systcm
was functioning v q d l . Apcs tnihaging.Bovds like thc Railway Board. Ccntral
Board of Escisc and Customs, Ccntral Board of Dircct Taxes, Postal Scrviccs
Board, dc. arc cithcr being nm by cadrc officcrs or \\c arc suggesting cncadrcmcnt
of the lopmost posts, \vhcn necessary. The Tclocom Commission has 4 part-time
members in policy formulation and implcmcntation function, drawn from various
fields for a broad vision. The Tclccom scrvicc itsclf has a lcsscr rcprescntation at
the Mcmbcr Icvcl. Thcrc is no post of Mcrtibcr for thc Civil and Elcctrical \vorlis.
We recommend the encadering.of three fulhtime Members in the ITS Group
. .A. One post of Member (Works) may be created for heading the Building
Works wing. Member (Finance) may be encadred in the P&T Accounts and
Finance Service Group A after eligible officefs become available at that level.
I
2XH
InAwml'urltl
st-opeJ5w.
priruriwliim
51.22
As p a 4~ Nalitaiiil l'clccom Poliq. I994. thc Tclcconl Scctor Iias
been thrcwn opcn lo pri\ atc participation. Ihough thc DOT has cntcrcd thc ama
of valuc-addcd scrviccs. OIcsc arc mostly on privatc franchise. Rcscarch hito
switching and production is already substantially with thc autonomous Mia.
public scctor units or privatc scctoy. Tclccom factories arc, howcvcr, still in thc
&panmenial mould, darc IKM yct gcircd to undcrtakc production of cquipmcnt
d insmmcnts b a d on d c m technology. Thcrc arc 6 Factorics with osscts
\\-ohRs.63~UICS dannual tumo\vx worth Rs. IS5 crorcs cngaging 6.437 stan.
Thc Sinha Conimittcc ( 1992). suggcstcd a3-ticr structure. with a Factory l36iud
at thc apcx, thc Factorics organisation as o Dcpartnlcntal . p i t y and an iidjunct in
chc f m ota Tactmica1 Product Dcvclopmcnt Group. The Consultanc).audy has
pointcd out problans of compctition with PSUs likc ITI. HTL, ctc., and thc privotc
scdor, obsolesccncc of tcchnolob?,, csccss manpowcr; lack of demand, clc.. which
arc plagui~gthe T c h Factorics. Thc Dcpartmcnt has, howcvcr, adviscd that
it is ablc to obtain eompctitivc pricc advantage, and possibility o f supplying to
privatc opcralm by rdaining the Factorics as Dcpartmcntal units. Bolh thc stud)
and the Dcpartmcn! fix1 that thc Sinha Committcc rccommendations hpvc been
adcquatc. Wc fix1 hat with ;L suong infrastntcturc of production outsidc thc
Dcparlmcnt, there arc strong gounds for giving grcatcr autonomy to Tclccom
factories. so its to cnablc thcm.to upgrade obsolctc tcchnologits, mcthods and
products. We accordingly recommend that they should not be expanded. Till
they are retained in Government, they.should be corporatised. As
competition increases, they should gradually be privatiscd o r wound up.
t'~iclu.~t~t
32
flllrlll1~l<
Ill I l l
32 I
Thc Cciitral Go1.t has bwn riiisirig Ccntral policc forccs froni tinic
to tinic for handling spccific problcnis While most of thc forccs h a w bccn raiscd
mdcr MHA. othcr Ministrics likc Kail\va>.s aid Dcfcncc h a \ z also raiscd thcir oun
policc and para-milrtan. forccs. Of thc forccs undcr XIHA, CRPF \\as raised
primaril!, for dcaling with law and ordcr situations. BSF and ITBP for guarding
thc intcrnational bordcrs. ClSF for proiiding sccurit!. to Ccntral govcmmcnt
industnal installations ind NSG for combating tcrrorisni. Thc Raihvay Protection
Force undcr thc Minisq of Rai1waJ.swas crcatcd priniaril!, for protcctiog rail\\ a>.
FiOpCrt?. Morc rcccntl!..'thc Ministry of Dcfcncc have raiscd thc Rashtri\.a Riflcs
for combating insurgcnc!: though thc priman, rcsponsibilit!, for intcnial sccurit?.
rcsts with thc Ministnp of Homc Affairs. In fact. all thc forces undc;. MHA arc
bcing cxtcnsiycly uscd for internal sccuritj. and countcr-insurgcnc!. dutics.
irrcspccti\,c of thcir primary roles. The!. arc also bcing uscd on a iargc scalc
during clcctions and for pcrforming othcr tasks. For csaniplc. ITBP pcrsonncl
hn\c also bccn uscd for guarding b a n k and static dutics. and NSG for providing
VIP sccurit!.. Such divcrsion of forccs froni thcir primary rolcs hiis Icd 10 a
sciiicwhat haphamrd growth of thc forccs. n h c h has also ad\crscl! at'fccted thc
nioralc oc [hc pcrsonncl
32.2
Thc tablcs bclo\+.givc an idca of thc cstcnt of groivth of' !iianpoucr
i n \.arious C'cntral Policc Organisations -
strength
200
)'em- NSG
ITRP
('HPF
BSF
AH
CISF 'I'otal
strength
52.460
52.400
52.460
52,482
52.504
I994 7.5 I2 30,29I 1,65.334 I .71,735 52.504
7 I .%I X 1.ZX.O I0
74.334 4.Oh. 192
79.620 1.09.i20
84.6 1 I 5.04.400
87,337 5.07.258
88.603 5.15.079
Thc tablc bclow indicam how thc cspcnditurc on CPOs has riscn
32.3
during thc pcriod 1986-87- 1994-95:Year
86x7
87-88
88-89
89.90
90-91
91 -92
92-9.:
I)?-94
94-95
BSF
CRPF
ClSF ,
ITBP
AR
NSG
Total
(Rs. Iwkhs)
31 .I')? 00 22.549.34
8,02S.(K) 4;Ol 1.00 10.790 (HJ 2.572.1JO
36,13 1 .OO 161189.40 9.887.00 6.580.00 12.95 I .oo 2 . I30.00
43.:!l4.00 30.888.00' 11,955.00 7,690.00 l3.'~S~.Ot) 2.61 5 . 0 0
.
513Of.00
66.1 10.00
72,198.W
80,832.0(1
42.259.21 1 4 ~ 0 0 . 0 0 9.16600
43.398.65 17,196.00 10,157.00
58.5.47.00. -10,684.00 1-1.707.00
7'1.1 ?1 ?4
93.7h8.40
1 .IO.321 00
I6.501.oo 3.7I~).OO 1..37.21 1.21
17.91 1.00 5,274.00
1.60.036.05
20.X29.fW 4.558,(MI 1 :89.523 00
14.61 H 00 5.682 00
2.1 7.34%00
28.871.46 5.258 40 2.52.612.08
3 1.791.OO 5.258.00 2.76.054 00
32.4
P
d of the above tables shows that here has bccn considerable
increase in manpowcr and expenditure in thc Central Police Organisations during
the pcnod 1986- 1994. The annual compound growth rate of manpower \iorks out
to 5.6%: which is cxtrcmcly high when comparcd with dic corrcsponding figurcs
of I% for civilian govt employes y d I .4% for thc Aniicd Forccs pcrsonncl.
Similarly, annual growth rate in espenditure for this pcriod which works out to
18.03% is much higher, comparcd with thc corrcsponding figurcs of 13.4%for
ci\.ilian govt cmployccs,and 12.95% for Armcd Forccs pcrsonncl.
CONSULTANCY
32.5
Whilc we apprcciatc thc difficultics cncountcrcd b!. thc pcrsonncl
of the Ccntral Police Organisations in dealins \vith various complcs situations. wc
havc n o d with scrious conccm thc cslrcmcly high ratc of gro\vth ol'niaopowr inCPOs. With a vicw to finding out niorc cconomical ivays of utilising thc
manpower in CPOs and to ensuring +at funds providcd by thc public cschcqucr
arc optimally utiliscd, \vc awardcd a consultant!. stud!. 10thc Ccntrc for Policy
.Rcscarch with the following broad tcrms of rcfcrcncc:
io I
(I)
(ii)
(iii)
(iv)
I4ew of .
rtdm'cri~ati'v
A4inisl?y*~slaw
iicnvrnm~nts
32.6
Wc also held dlscussiOnS with Horn: Sccraaty. olha scnior oficials
of the Minisby of Homc Affairs, and Directors Gcncral of various Caitral Policc
Forces. This mattcr was also:uIp up \villi sonw of thc. Chicf Ministers. Chicf
Secretaries and DGsP of the Statcs visited by us. In rcply to thc qucstionnairc
circulated by us, wc rcccivqd views of Directors Gcyral (Police) and Chicf
seaaaries of some ofthe other siates as ~ C I 3s
I promincnt rctimi police oflicers.
Wc havc considerod all thc vigus and suggcstions rcccivcd by us as \\.ell as thc
rccommendations made by- thc Centrc for Policy Rcscarch and our
mommendations in thc matter arc discusscd in thc succccding paragraphs.
1 OUR RECOMMENDAT~ONS1
.%wn&henittg
State I'dice
F'me
o/ 32.7
One of the pasons for the deployment of Ccntral Pblicc Forces for
internal security pwposcs is the inadequacy of Statc policc forces b deal with the
merging situations. We feel;.that State Policc forces should bc strengthened and
made capabk of mamg mosvof UIC internal security threats. Currently the police
departments are grossly n&lecled owing to thc cspcnditurc on them being
categorised as non-plan. As a result, funds are not sufliciently available for
lllodcmisationof the Statc police forces and upgrading thc skills of their p m c l .
In prder Lo reduce the usc of& Central Forces, it is of paramount importance lo
strengthenb.State Police forces. Our suggestions in this regard am as under :-
(a)
(b)
292 :
(d)
Heponpnng (?/
I.bKcs
Holes
tkW
(e)
(f)
32.8
(a)
CRPF
scnsitivc arcos
Border Policc (ITBP) and othcr organisations likc thc Railtvay Protection Forcc
urrc~ti~t~~~rorls
including banks. Whilc CISF is looking aftcr the sccurity functions of Industrial
w~dcmhngsowiicd by Ccntral Govt., lTBP is.lookingafter the security of banks
in Punjab. Similarly RPF has bccn looking aftcr thc dutics relating to protcction
: 294 :
of Kail\vay properly aiid bookcd consignnicnts. With a view t:, strcaiiiliiiing tlic
arrangcnmts, we rccoiiimcnd that -(a)
(b)
R d r t f l IIj.4
In casc of RPF \vc find that thc dutics conncctcd with book&
consignments involvc constant interaction with thc commercial
staff and kno-se-of
their functioning, which wc fix1 should
continue 16 bc done by RPF instcad of contracting out to private
agencics.
32.1 ]
Thc Minisby of Homc Affairs is thc nodal ministry responsible for
internal security. Thcrcforc, cven forcc dcploycd on intcrnal sccurity duty should
be fully accouqtablc and aiis\\.crabIe to thc MHA so that MHA could control the
actual deployment and operations of the forccs. It has also been brought to our
notice by heads of CPOs that once thcir troops arc placcd at thc disposal of State
Govt, the duration of deployment and movcnicnt is stretchcd bqond reasonable
limits. Even the MHA is not in a position to monitor such movcmmtddeploytnents
etc. At times the units arc despatched to thc States without giving them adcquatc
time for preparation. We recommendthat ;
(a)
(c)
(d)
Home Aff.8i1-snamely,
(i)
c~'wrClus1m~
l~rntlnlg01
nnmkrrr
(it)
(iii)
Crisis M
tgroup to deal with situations which
nccd constant monitorhg. All thcsc thrcc fora should bc
headed by either thc Home Sccrday or thc Special
Secretary (Home) dcaling with internal security. Thc
Director, Intelligen& Burcau and Heads of some largcr
CPOs &odd be meinbcrs of these f i a . Thesc lhrec fora
should ensure that optuhum use of the forces is madc
without much movement and administrative problems.
32.12
Thc main objectwe of restructuring and rationalisation of the
Central Police Organisations was to delineate a national framework for internal
security management and carve out roles for the Union and States. Another aspcct
of ovemding imporlance wvas that the countq has ~peakdlyrequisitioned the
secvices dthe Amry to handle law and orda and intemd secur~tysituations, which
IS not warranted bamng exceptional situations. It may be appreciated that 11 IS
~lban),
times morecostly todeploy the Amy compllfed to the State Police or any of
the CPOs. Any nmsuredfforrestructuring and rationalisation of the CPOs cannot
bul take serious note of this imperative and deliberate on a National frame work
which should make cacptndenct on the Army to meet internal security situations
an exception ratha then the rule. On the other hand, unlimited and unplanned
e x h i m of various forocs is ako a malady and them atc dangers inhennt in their
expmim beyond a point, such as probletns of cummand and control,difficultyin
cataing to training arrangements, weapons, equipment and other essential
pdministdve and b s t i c support. Furthkr, la@-sized forces tend to have many
problems of cplcEoIKwnicutilisation of manpowa due to un(KxxIunled,unaulhorised
and wasteful diversions. There has to be a balance between size and efficient
management.
32 13
: 296
33
I INTRODUCTION I
Geneml
Gmu*'hoftk
Services
33 i
In the earlier chapters, we have considered the scope for optimization of
c i ~ manpowtz
h
in the vanous sectors of Government. As the defence forces are the
second largest Government sector in terms of numbers employed and resources
allocated, we decided to examine the areas of manpower optimization in the Defence
Forces also. We intend to approach the subjet in the overall cbntext of the emergmg
Security scenario, the ongoing financial situation and the internal needs of the Defence
Forces to modtrnise their weapons and equipment and to kecp their men fighting fit.
33 2
The table below gives the manpower figures for various years for the three
Services. An examination of the manpower figures of the three s e m , the Army,
Navy and Air Farce inhcates that their manpower has grown at an annual compound
p w t h rate of 1.4%. dunng the period 1981 to 1991 which is somewhat higher than
* the rate ofgrowth of 1 2% for civilians during the same penod.
Year Strength
1966
1971
1981
1991
1995
~mndofD+nm
Ikptnditun
8,24,000
8,30,000
8,80,930
9,98,045
9,98,046
Na\y
Year Strength
Air F6rce
Year Strength
1961
16,821
1961
37,558
1971
1981
1991
30,100
36,169
1971
1981
51,042
52,453
1991
1995
97,949
1,10,833
1,29,057
1.30.44 1
1995
33.3 The year-wise Defence cxpcnditure for the period 1985-86 to 1993-94 was
as under:
Y car
l98S-U6
1986-87
1987-88
1988-83
1989-90
I 990-91
I99 1-92
1992-93
1993-94
1)clcncc ISspciiditurc
Dcfcncc
Espcndimrc
as Perccntagc of
(in Crorcs or Rs.)
GDP
3 .OS
3.58
3.59
3.37
3. I6
2 90
7989
10,477
11967
13,341
14,416
15.426
16.347
17,582
2 1,845
2.66
2.49
2.78
I
Inrental .\eccls
h'md 7 h o r
Scrnario
33.4
Feeling umcemed at the large deploynicnt of nianpowcr in the Armed Forces
and thc extremely high cost of maintaining this manpower. we studied the operating
scenario to see how best the situation could bc nianagcd. Our inquiries retailed that
with the disintegrationofthe USSR, which had bccn for thc past hvo decades a rcliabk
and cheap source of military hardware. procurcmenl of n d i w hardware for ollr
Dehce Forces has become a more costly proposition. Clarly, we cannot maintain p
credibleddimce posture, if our defence capability is to remain in the currcnt s t r u c ~ l
form and the defence expcndture as a percentage of GDP is to remain at the current
level of 2.78%. Our defence preparedness, to bc both credible and affordable, will
have to bc predicated upon some re-structuring involving a shift of focus from a
manpower - intensive force to an equipment-oriented force.
33.5
The aforesaid re-structuring option could as well bc the most appropriate
response in the context of the emerging threat scenario. While there does not seem to
be my threat of war b m our immediate neighbours,their military modernization plans
and acquisition of nuclearweapon capability are dimensions which have to be taken
into &count. Though the general international climate has greatly eased after the end
ofthe cold war,it still poses,challengcsto our security and sovereignty in terms of nonmilitary threats and pressures because of our forthright stand on issues such as nuclear
non-proliferation, Comprehensive Test Ban Treaty (CTBT), Missile Technology
Control Regime, etc. In such a scenario of threats and challcngcs, a demonstratively
highcr oirensive capability for olir Defence Forces rather than their ability to be
engagcd in a long drawn-out war, would have thc right deterrent effect vis-a-vis an!
military misadvcnturc or bullying design against us. This proposition is especially
rclcva$ in the context of nuclear equation in our immediate ncighbourhood. Though
our nuclear policy has bum to use our nuclear capability for pcsccful purposes without
f d i p g our nuclear option, we cannot overlook the nuclear dimension in our hture
conflicts and its implication for our conventional deface preparedness.
298
33.0
In IIK: light ofour.analysisof thc situation and with a view to linding fcasihlc
options. wc conitiiissioncd thc liistitutc of I)cfcncc Studics and Analyscs (IIISA) to
undertalc a Gctailcd study with rcgard to "Manpower optiiiiisation in thc Ilcfciicc
Iorccs". Thc IDSA in thcir Rcport haw brought out that if thc prcscnt approach 01'
niain!aining dcfcncc capability at 3% of GDP is continual. we would bc scwrcly
widcr-prcparcd for ang hturc cvcntuditics. Thc option. according to tlic IDSA. would
bc bctwccn achicving mutual arms control spccially with rcspcct to our ncighbounng
countrics lcading to somc rcduction in manpower or by cngaging in "Autonomous
R-uring"
lcading to d u d manpotvcr but incrcascd mobility-Grc powcr. The
IDSA have ruggated that the'said"Autonomous Restructuring" may be carricd
' ~ ~ i . ~ i i / f ~ i ~ i ~ . I . ~ f i ~ ~ ~ .
The IDSA have envisaged that tvith this forcc restructuring. thc
Defcncc Forces will ktain thc capability to provide disaster rclicf. but \\Ill have
reduced potential to ~ e r l a k internal
c
security duties.
Suggestions .Uu&
by lAX4
33.7
In line with the proposed Force Restructuring, the IDSA havc
suggestcd certain altemate manpower management models.' which singly or collectively
with a provision for higher active reserve, could provide the base for greater
optimization of manpower. They include "Voluntary National Service" (WS).
"Compulso~National Service" and "Reduced Colour Service with Lateral Induction
within Defence Forces and Outside It". The concept of VNS,which was formulated
by Defence PINlning Staff of the Chiefs of Staff Codittee: cnvisages .retention of
30% personnel on regular service and induction of 70% personnel under VNS doing
5 to 7 years' service and then being resettled exclusively in the civil scctor. Under the
schcme of Compulsory National Service, aspirahts to the Ccntral and State
Government Serhces (particularly Police Forces) and college students who obtain
highly subsidized education (doctors, engineers and.the like) sh'ould do a mandaton.
period of five vears' service with.the Defence Forces which should consist of such
entrants to the extent of two-third of their strength, thc balancc one-third bcing
rccruitcd by dimt enby who wwld provide the permanent cadrc of the Defence Forces.
The third option vi&liscs rcduction in colour senkc and lateral transfcr of pcrsonncl
to support functions within the Defencc Forces and outside in thc civil scctor.
33.8
The IDSA havc suggestcd that as a part of thc gcncrai optimization
cxerc~sc.thc Scnkc Hcadquarters should bc intcgratcd with.thc Miniswy of Defence.
which will rcsult in some savings in lcrms of manpowcr and cfforts. We have also
33 0
Wc havc. \vIiilc foniiulating OUI i)ri~posidson tlic siibjcct. 1;1hc11into ;lccoi1111
the suggcstioirs iiiadc hy the IIISA Wc also held discussions 011~IICSC alld ~ t h c f
Ilcfcncc niattcrs \\itti thc Scnicc (*hick rctricd chicfs and sciiior officcrs of. thc
Ministrl\.of Dctcncc .The YIC\VS csprcsscd during thcsc discussions as \vcll as lhc
viavs cspnssed in tlic Arnicd Forecs ii~~iilt~r;iridu~ii
havc bccii quilc useful 111-hdpirip
us to fim\ up our approach Wc havc also considcrcd the Y i c w csprcsscd by thc
Estiniatcs Coniirittcc (1992-93) of thc Tcnrli Lok Sabha and Tcntli Finance
Commission regarding Ihc nccd for optiniimtion diiranpo\vcr in thc A r n d Forccs and
kccping (lie Forccs young.
OUR RECOMMENDATlONS
33. I 0 Sincc nmpo\r.cr rcquircnmlts in our Dclcncc Forccs arc dctcrmiiicd by the
forcc structures to be nmintained. any nimpo\vcr optitnilation cscrcisc to bc arllgmundcd riiust flow from forcc rcstructuring in our Dcfcncc Forms. In this rcgagq w c
find thc IDSA lbmiulation on Autonomous Rcstructuring as a sound framc\vork
towards mlmpotvcr optmilation without compromising on dcfcncc prcparcdncss.
Drawing on this IDSA prescription. we would likc to prcscnt a bluc-print for
rcsullctunngour dcfcncc capabili[y. The re-structuring that we are !alkhg about
could mean a small sized Amry reinforced in terms of enhanccd mechaniscd
strike capahilit? and complcmcntcd by a more offensive-oriented Air Force and
augmented Naval prcscnce. This would rcquirc a positivc approach leading to a
drastic cut-bad on n m p o w r not only in thc Anti> but also in thc suppon coniponcnts
of Ihc Na\> and Air Fom. so hat wc haw cnough rcsourccs to go in for niodcrnimior.
and nicclianisaiion of our Forccs. Acquisition of indigenous wissilc crtpabilit!- and
sustained dcdopnicnt of Dckncc R & D to attain sclf-rcliancc in niccting our dcfcncc
nccds must ncccssarily be thc high points of our agcnda for modcmisation.
An? c\crcisc for ii~siipo\\croptiiiirration in thc Armed Forccs has to address
to thc nccd of keeping thc Armcd Forccs. cspcciall! 11s combat coniponcnts. !ouiig
In this rcgard. \\c ha\c considcrcd thc rhrcc altcmatc monpo\vcr managcnicnt modcls
with a provision for higlrcr activc rcscmc. as suggcstcd b y thc IDSA. Though the
IDSA suggestions oRcr a framework for restructuring our Dcfcnce Forccs towards a
lcaner and youngcr shape. xvc arc against thc idca of higher rcscncs and any changc in
thc voluntary naturc of rccruitmcnt into our Dcfcncc Forccs. Going by our past
cspericncc and thc gcncml social attitude and cthos. \vc can not dcpcnd on rcscn-ists
of any kind for a rciular war. hlorcom. rl war in thc Indian conicst is ncccssaril!.
sonlcthing forccd on us by 8 turbulent nciglibour and thc timing can ncvcr be decidcd
by us. By the timc thc rcscnfists arc summoncd. our wars arc api to bc ovcr.
33 I 1
33.12 Our Defence Forccs havc all along bccn making rccruitrilcnt on \.olunian
basis. Thc concept of i,oluntap rccrumicnt has bccn accepted b!- many countries in
thc world, Evcn thc USA and Great Britain. who had a long cspcricncc of national
senice, haw svitched o m to the systcni of voluntan recruitment. We fed that any
changc in the voluntap nature of recruitment into our Defence Forces will
seriously affect the quality and morale of thc personnel in the services. In \icw
of thcsc considcrations \vc do not subscribe to thc idca of cithcr Voluntary National
Senxx or Compulson. N ~ I ~ I OScrvicc.
N~
as the! \vould bring in an cicnicnt of forcc or
conscription in tlic pattcrn of rccruitnicnt ~ n t othc Dcfcncc Forccs.
33 13 l l m Ica\cs us nit11 the option of Keduccd Colour Scriicc nlth Latcral
Induction ~ i t h i i rthc Dcfcncc Forccs and Outsidc It Wc find this conccpt both
practicable and i\orhablc This option envisages a lean cadre of oflicers and men
300
serving upto their normal age o i retirement and a large cadre of oflicers and
rncn (HIshort-tenn cngagemcnt with provision for their lateral induction within
the ' Defence Forces and outside in the civil sector including Itolirc and
paramilitary organisations Thls conccpt nor on]! proiiiiscs to liccp ihc coiiibal
Aniis of our scnkcs young bur also providcs a franicworli for nianpowcr optiiiiisacion
by bringing in thc conccpt o f a largc cndrc 011 shoncr tcni! of cngagciiicn~ tlo\vc\.cr.
tlic opcrationalisation of thc conccpt would largcly dcpcnd upon thc scopc for rciiiustcring within tlic scniccs and thc fcasibility of finding rcquircd iiunibcr of jobs
outsidc thc Dcfcncc Forccs. Wc havc as an intcrim mcasurc clscwhcrc suggcstcd
incrcasc in thc pcrccntagc of rcscrvation in Govcrnmcnt jobs in CPOs for csscnkcmcn and havc also suggcstcd a Joint Rccruitmcnt Board.
Hccircc 111)fI (I1
(
'(ihmr St*nw,*
Whilc thc mnccpt of latcral induction holds good for officcrs and mcn of thc
thrcc scr\ i c e . it holds spccial significance for thc Combat and Combat support Arms
among thc Army PBOR for whom \vc havc rccciwd a spccific proposal from Army
Hcadquartcrs on rcduction cf tcmis of cngagcmcnt Thc proposal cnvisagcs
distributing thc manpowcr into combat, combat-support and supporting scn'iccs
groups and lateral shill within ahd outsidc thc Dcfcncc Forccs after prcscribcd periods
of scrvicc and keeping in mind the agc profilc rcquirement in thc groups Wc havc
considcrcd thc proposal in detail and as a first stcp towards thc opcrationalisation of
thc conccpt. we recommend that one third of the annual intake into the Combat
33 I4
and Combat Support Arms of the Army PBOR should be engaged on a shorter
term of engagement of 7 years with the provision of their re-mustering into the
other supporting Arms and Senices within the Army Hcrc, while thc schcmc
would kccp the combat componcnts young, it \?ill save the effort rcquircd to find
suitablcjobs outsidc thc Defence Forces to absorb thcse short-tcrm cngagcd personncl
We find hat thc Armed Form havc deployed thcir manpowcr in scvcral arcas
not related to thcir core functions. If thc Armcd Forces withdraw from such arcas. thc
manpower rcleascd can be utiliscd to meet the reported shortages of oficcrs and men
in the thrcc services Our specific suggestions in this regard are as undcr.
~ f i ~ / ~ ~ ~ t r u . a l 33
h n 15
t
IIfJtl-COTt!
~;l!lC/t<Jtl.S
I,$
Service
3 02
Scmicc Chicfs 111 VICW of tlrc Minrstrfs VICWS. we do no?recommend any change
in the existing arrangcmcnt between Senice Headquarters and thc Ministry of
Defence.
~fJtlC/ll.Vi~l~l
33.20 In our opinion. thc nicasurcs lisrcd in this Chaprcr should lcad to a roughly
30% cut in thc nianpowcr of thc Armed Forccs during the next 10 ycars and should
also lead to grcatcr strike power in lcnns of modemitat~onof hmponry and
upgradation of technology.
INTRODUCTION
(ietwral
33.21
Thcrc arc 39 Ordnance Factories having a manpower of 1.66 lakhs
and an annual turnover of approximately Rs.3,OOQ crores. The employment under the
Ordnance Factories accounts for nearly 87% of the total Govt. emplojment under thc
Deptt. off Defence Production and Supplics. The Ordnance Factory Organization
functions as a departmental undertaking under the Department of Defence Production
and Supplies. Ordnance Factories primarily serve as a production base for the Indian
Armed Forces for supply of critical lethal as well as non-lethal stores. In the absence
of adequate orders fiom the Armed Forcesi Ordnance Factories are also now engaging
themselves in production of items for the nondefence sector, for achieving better
utilization ofthe available capacities and'manpower. The existing range of products
d
W by Ordnance Factories include artillety and infantry weapons and other
small arms, assorted ammunition,explosives and propellants, anmured vehicles mo
military transport vehicles, optical and optoelectronic insbuments required by thc
Armed Forces,and combat uniforms, foot-wear and parachutes etc. The manufacturing
processes ir Ordnance Factories correspondingly cover a very wide specbum, i s .
enginwring, metallurgical, chemical, optics, opto-electronics, textiles and leather.
Xeedfar
33.22
Of the 39 Ordnance Factories, 16 were set up beforc independence
and had capacities created for finished stores as well as for basic and intermediate
materials. These had. therefore, an excessivc element of backward integration In
respect of factories set up after Independence, the orientation has been more towards
production of finished stores,drawingupon the civil sector for supply of raw materials,
components and semi- finishcd goods. IR thc context of the liberalised economic
scenario, we thought that the need for continuance of Ordnance Factories as a totally
dedicated production base under the Government should be examined. We have, in our
approach towards workforcc size control already recommended that no manufacturing
and commercial activity should be undertaken departmentally by thc Goyemmcnt. To
what extent the Govemmcnt could be disengaged from the activities carried out by thc
Ordnance Factories in vicw of their strategic nature and what form the rcstructuring
.cIr;~Idtzkic 1115 ~li:teforc,one of the major problem areas before us In order to haw
Resrrvcfuring
303
l~
33 23
I ~ Consultants
C
arc as follotvs
O U R RECOMMENDATIONS
33.25 We have taken into account thc vicws cspresscd by the Consultants and thc
Ministry on this matter and our mnmicndations on the various issues connected with
the structure of Ordnancc Factories and streamlining of procedure arc discusscd in thc
succeeding paragraphs.
33.26 Ordnance Factones'arcbasically a conglomcratc of manufacturing/production
units. But, being Departmental undertakings of the Government. thcg could hardly bc
run on the lines of industrial enterprises. This is clearly cvidcnt in VICW of the fact that
some budgctan support is still rcquircd to be proiidcd by thc Govcmnient. Funhcr.
with Ordnancc Factorics now being rcquircd to go conuncrcial (both donicstic and
international) in thc face of dwindling indents from the h c d Forccs. thc nced for
fieeing Ordnance FaCtOiies of shackles of Govemiental procedurcs and allo\ving them
full functional autonomy has become all the more evident. In our opinion, to make
304
thc corpontc linmicial accounting s? stcm. tlic i~erloriiiaiiccof Ordnnncc Factorm \r 111
Iwmiiic iiicnsunblc and nidiout dic nssurancc of*Golcrniiicnt support at all timcs. coqi
co~isc~oi~sncss
\\ill incrcnse W i t h thc prcscnt s\ stciii of all availablc funds lapsing 011
hlarcli 3 1 dispcilscd wth. procurciiicnt proccss invoh ing long dclivcn schcdulcs n i l 1
hc scrcamlincd and fhdnaiicc Factorics ~ 1 1 bc
1 ablc to rctain profit ~ h i c hthc! ma! carn
i n civil ~ a d cMorcowr. \\ithout thc rcquirciiicnt of prc-audit of cspcnditurc. thcrc I\ i l l
bc no tcndcnq. to niiun:ain an in\cnton kvcl highcr than what is rcallt rcquircd. thus
rcsultrng in bcttcr imcntoc managcnicnt and cost control
33 28
111 Accping with our v i m that Govcmmcnt should mccntratc on corc
actnitics such as po!icy making and not bc dircctly involved in production actitity. wr
mommend that Ordnance Factories be converted into a public sector unit Thc
units may sign a nicmorandum of understanding (MOU) with the Govemmcnt of India.
undcr \\hich ccnam targcts would bc laid down to cvaluatc the pcdorrnancc of
Ordnancc Factories The MOU should also spccify the dcgrcc of autonomy to bc
grantcd to Ordnancc Factorics
33 29
In addition to manufacturing strategic military sIores. Ordnancc
Factorics arc also prcscn~lycngagcd in rnanufacturc of transport vchiclcs and cablcs
and ccrtain clothing, lcathcr and packing itcms Therc is an cmcrging opinion that In
kccping 1~1ththe prcscnt libcmliscd mnomic dispensation. Ordnancc Factorics should
bc discngaged from these non-stratcgic m a s and that thcsc items should bc procurcd
cu-tradc
33:3 I
In order to $gruficantly improw thc capacity utilia/ation of Ordnance
Factories, greater thrust should be given to diversification into civil sector. Thc
cngincering factorics amotig the Ordnancc Factories offer ample scope for,
di\*crsification. These factories have special strengths, which can be tapped in
precision machining, machining of larger jobs! and manufacture of spccial grade stecl.
What may at best be required would be retooling of certain machines for civil sector
production and switching back to defence production may not be a, difficult and
cspensivc exercise. Keeping in mind the tremendous scope for di\wsification. a real
annual growth in civil trade of 25% should be achicvablc.
Reductioti iti
Backward
In1egmtiotr
33 32
Though Odnance Factories have already shed backward intcgration
tn some arcas like bar-mill and steel-melting, there is still enough scope for further
reducing backward integration. Ordnance Factories should disengage from
manufacturing raw materials and other inputs, which are already aiailable in tradc in
desired quality and quantity, as their manufacturing by Ordnance Factories themselves
does not lead to economies of scale
33.33
While Ordnance Factories are generally, ovcr-staifed, they arc
particularly deficient in some of the requisite skills. 'In thc Ordnancc Factory
Organization, old skilled hands arc getting dcplctcd duc to normal wastagc through
rctiremcnt and death and thcrc is no induction of ncw skillcd hands to rccoup thcsc
ivastages, due to continuing ban on frcsh rccnritmcnt in DGOF Organization. This
portends n \.cry dificult situation fir the organization i n thc !.car 2000 and beyond.
?i'lk'Jl r ! i m ofil~.;oitI skillcd hands would rctirc. Alrcady, Ordnancc Faciorics. which
3 05
33 34
As largc scalc rctirciiicnts arc schcdulcd 111 dic t i n t 5 !cars. Ordnancc
Factorics ha\c a rcal opponunity to rtght-siLc thcir manpowcr l h c ciisting flab in
manpowcr, nhcn wasted out, should not bc rccoupccl. Fresh manooaer
induction shou!d bc limited only to mcct thc cmcrging skill requirements and
Ordnancc Factories can formulate a pcrspectivc manpowcr plan to this cntf
Hcrc. \vc specifically rccoiiimcnd that Ordnancc Factorics should bc alloncd to tnduct
shillcd niatrponcr both at thc working and supcnison lcvcls as pcr thc pcrspcctit c
iiianpowcr plan
33.35
Ordnancc Factorics Iuvc drcir oitii quality assuraiicc sct-up to ciisurc
quality at all stagcs. starting from raw matcrial procurcnicnt to intcr-stagc production
to final asscinbly of thc product. This set-up is parallcl 'to thc sct-up of DGQA. Na\al
Amlanicnt lnspcction and Ar Armamcnt lnspcction Wing. As niost of thc Ordnancc
Factorics liavc got ISO-9002 Ccnification and thcy haw bccn gi\ing a lot of
inipgrtancc to ttic quality aspcct. wc fccl that thcy can bc dcpcndcd upon to cnsurc
quality ofthc product. Howcvcr, kccping in \icw thc critical importancc of quality in
Ilic ficld ofanns and anmunilion froni thc point of vicw of thc uscr i.c. hrnicd Forccs.
\vc bvould still bc in favour of indcpcndcnt audit of thc quality of thc final product
33 3 7
The existing system of prc-audit of expenditure should be
restricted to amounts above specified values and independent financial control
can he e r e r c i d by a regular process of post-audit. In thc Public Sector Structurc,
howcvcr. the cxisting accounts establishment has tc be fully integrated tvith thc
Ordnancc Factorics structure.
33.38
Our suggcstions with rcgard to thc Ordnancc Facton Organization
would haw thc cffcct of making thc Organization morc goal-oricnted and focuscd in
thc contcxt of thc new cconomic dispcnsation and ultimately lcad to grcatcr selfrcliancc for thc Ordnancc Factorics. Thc thrcc pronged apnroach of conycrsion to PSU,
privatisation of non-corc. non-strategic arcas and improvcnicnt of capacity utilisation
through planned divcrsification into the civil sector. it is hopcd, will rcsult in
improving thc cficicncy of thcsc units and rcduction in manpowcr to the tunc of 87%
of h c cxisting manpoivcr under thc Dcpartmcnt of Dcfencc Production and Supplics.
Sincc thc avcragc agc of cniployccs is high and a significant portion of manpowcr
w u l d rctirc within the ncxt six years. rcdcploymcnt of manpower may not posc a
scrious problcm.
34
I INTRODUCTION I
34 1
One of the major factors that has to underlie our
recommendations is the general economic situation in the county
Obviously, if the economy is in a mess, the employees alone cannot have
a Eood time On the other hand, ifthere is a generally upbeat mood in the
country, Government employees should also share in the general
prosperity
ill1 t Y I <
!/I(
I
Xrirop I ) /
J)I<\IiII
CI
\ PI1
11lc
I.( Otl01111~
Hcforlll T
lhc p
tk!-lT 01
74 2
307
tlic Government canic to tic rcdcfincd Not only rhc scopc and arcas ot'
bureaucratic intelvetition undcrwent a radical downward revision, h i t thc
btircaticriicy was now rcquircd to act as a facilitator
intcrvcning
mcaninglully, and not as a controller or a regulator 'I'hc ccononik
rcforms in India represented the fniition of this philowphy
Ill,*
< crr'k~titof
tiic rc/c)rws
34 6
We observe that India recorded one of the fastest
recoveries from a macro-economic and balance of payments crisis The
growth achieved is spectacular even by international standarcis A look at
the rate of growth of Gross Domestic Product at factor cost and constant
prices shows a jump fiom 0 8% in 1991-92 to 7% in 1993-96 (See Annexe
34.1) As against the earlier years when increases of this magnitude were
largely explained by high rates of growth in agriculture, the improvement
since 1994-95 is being attributed to the remarkable development of
industry
ThC
34 7
The rate of industrial growth inay be gatiged from a look
at the Index ofhdustrial Productiorr The annual increase in the Index of
Industrial Production which had dipped to a level of 0.6% in 199 1-92 rose
steadily to a level of 9.3% in i994-95 and 10 4% in 1995-96 (See Aiinexc
i ~ i c r ~ "it1
w
Iticlrr.trrirrl
l~rl)*llictif)tl
34 1 ) Industrial growth has not onlv hccn high during the last t\vo yc'ars
..
has also lwcn Imwi-bascd 1 tic c.apita1 goods sector riiaintairicd i t s
position as an iriipcmmt contributor the iiidustrial surge, with a gro\vili
ratc o f 2 6 2% arid 20 490 in 1994-95 and 199.5-96 respectively I n tlic
core sector, however, while the ratcs of growth of'coal and cernent have
slw\sri acceleixtion, those of electricity and crude oil have declined. l'hc
l3u1
Index for Industrial Production for electricity has shown a sharp dIop in
April-May, 1996. This is primarily on account of reduced hydro-electric
generation The Index for crude oil productim also declined in the period
:lpril-May, I 906
We observe that the annual Late of inflation based on thc
WPI declined from a level of'around 14% in I991 -92 to ',tat of 10 4% at
the end of 1994-95 and 5 0% at the end of 1995-96 (See Annexe 34 I )
This success in containing inflation is attributed to a combination of
factors iricluding a deceleration in monetaiy growth, high levels of open
market sales of food grains, a liberal import policy, especially for essential
commodities and a surge on the supply side associated with acceieration
in the rate of growth of GDP The slowing down of inflation was noticed
across the board in primary articles like food grains, manufactured
products. etc Prices of fuel. power, light and lubricants showed moderate
increases in the past but are now slated to rise as a result of the upward
adjustment in their administered prices The rate of growth of Consumer
Price Index, on the other hand, fell fiom a level of around 14% in 1991-92
to 8 9% in 1995-96
3 4 b:
34 9
The economic reforms also led to a marked and favourable
turnaround in the performance of the external sector since the crisis of
I99 I The key indicators regarding the countrv's position are summarized
at Annexe 34 2 We observe the following trends
ii)
iii)
..
I:
.'iflu;js'Jrge
100 millicw to
iit
ound
34 10
I AREAS OF CONCERN I
Thc d o n print rli
i n c+yiciclfur 1,
34, 1 1
There is also some mixed news in a few critical sectors
Initially, the percentage increase in the index of agriculture production
plummeted to 2 O?/O in 1991-92 It. however, recovered tc around 4?h perannum during the period 1992-93 to 1994-95. In 1995-96 the percentage
increase fell to 0.9% Food grains production which had risen to a new
peak of 191 I million tonnes in 1994-95 mav also turn out to be
marginally Iawer at '1 90 4 million tonnes in 1995-96 because of a decline
in wheat output Public food stocks which peaked at a high of 35 6
million tonnes in July, 1995 declined to 22.7 million tonnes in April, 1996
because of the open market sales by FCI The buffer stock of 22.7 million
tomes is, however, still 50% niore than the norm. Reforms in the customs
tariff,trade policy and exchange rates have substantially reduced the bias
against agriculture. Investment in agriculture still remains an area of
concern and may possibly be responsible for the recent slowdown in
agriculture
34 12
The country is already facing a crisir in the field of
iiI/TLIssIrucIurQ, infrastructure An unprecedented power supply d. m t and growing
[he power
freight transport problems threaten to undermine the c untrv's stabilization
supply shorluge
und,-o,yesflon and reform efforts The recent reforms ended dec des cf public sector
iri jreigh f
monopoly (with the exception of railways) in infrastK :ture and invited the
t r u t v o r l ~ " ~ o ~private sector to address the major infrastructure needs While the
response of the private sector to shipping, ,air transport and
telecommunications has been strong and positive, the same cannot be said
of other areas like power, roads, etc
7he crisis m
34, 13
pvver(v und
The sharp
I111
<*li\l
Ill
< l l l / ~ / 0 \IIlClll
devaluation ofthc rupee and the decliiic iii piotcction to the iiianu1kYuriii~
wcior did t u i n thc tcnns of-track 111 favour ofngiixlturc on which a laigc
segment of the population IS dependent On the other hand, the increase
in prices of key commodities such as tbrtilizcrs, rice, sugar, coftee and
gasoline could have put a high burden o i l the poor The AJI India figures
on the number and percentage of people below the poverty line as
I d
\((
10,
34 14
The progress in the field of social sector is far from
satisfactory Indicators on demography, mortality, education, nutrition
etc show a poor performance India which was close to China in 1960 is
now far behind The main reason is the poor delivery system Every
innovative programme seems to deliver only a Fraction of the intended
benefits and is almost always accompanied by high administrative costs
and leakages
CONCLUSION
34 15
The sum and substance of the preceding analysis is that we
no longer stand on the brink of a macro-economic disaster as we did in
199 1 Our industrial growth is buoyant and so is GDP. We have made
some dent in the problems of poverty and unemployment Inflation is
largely under control Exports are doing very well and our foreign
currency reserves are comfortable No doubt, there are areas where we
should do better, as in the fields of agriculture, social services and infra
structural development
34 16
From the point of our limited perspective, we could
conclude that the economic reform have come to stay, the economy
is in a better shape than before and there is every room for optimism.
Ihere is no reason, therefore, to deny what is reasonably due to th,e
Governrtient eniployees as w class It cannot be Sainsaid that they can
a l s o lcgitiniately claim part of the credit for the turnaround of the
cconoiin
?I I
P *:
0z.c
N
-3
Y.
h
(c
$2
N
$ .2
c
c.-J,
N C.
-.
- *?
Y!
cv
c
m
Y!
r-.
f 9
.r.
-.t
cIT. \c
N
7
c,*
R"c
-= -
q c
c.
=, q
r'x
re
t::
rs'
U:
(USS million)
Itmts
1.
-.
7
3.
4.
5.
6.
7.
I.
21,.
3.
4.
7.
(5 million)
X.')X2
x.250
7 . m
%Urw :
(4
h.
~~iprtrcs
include receipt on account of India I k v c l o l **nt tionds in I W I 4 2 and
related repayments. it any. in the suhsequent year$:
+ Indudc among cufiers. delayed exptn receipts and erwrs and ommi.wicins. F ~ thr.
K
year 1W2-Y3 it also includes errors und ctmrniJi.rions arising out of
dual exchande rates applicable under thz lihzralised Exchange Kate
Wanagzntcnt System (LERMS,
31s :
x.w
IO.UlC5
12.625
I.
-.*
3.
3 16
4.
3.
Ycar
Estiniates of Emptoyment
Total Employnicnt
Addi:ional Emplqmcnt
Gcncratcd (in miltions)
(in inillioiis)
I
-
Annual (%)
lncrcasc in
Eiiiylo\ nicnt
IOOO-9I
20% 73
I 00
5 x1
1002-03
30% 31
2 I%
0 5%
5.02
7.18
35
Our tcniis oi' rcl'crcncc tcqittit its t o c\;tnitnc tlic stiucturc 01'
emolunients and conditions of sen ice of' Go\ cmtiicnt sen ants ha\ ing rcgat d
7
-7
among other relci ant factors to the rcsourccs oi'thc Central Go\ cninicnt and the
demands placed thcrcoii such as tliosc 011 nccoitrit of' L ' C ~ I I O I I I Iand
~
social
dc\ clopnicnt. dcicnce and national sccitrtt! and icqutrcnients of' sound liscal
nianagenicnt In this contc\t. ;I re\ ic\\ 01' the Iinanccs 01' tlic (.cntral Go\ crnnic'n~
has bwn necessitated. to assess the capactt! 01' the Go\ cninicnt t o nicct the
cnhanccd \\ agc bill conscqutnt to our reconmendat i o n s
-7> 2
N'e observe that the position of tfie Central Government
finances at present, although not a: alarming as in 1991 is by no means
comfortable A looh at thc rci iscd csttmatcs ol'tlic 1arioils indicators of' liscal
imbalance in 1095-90 shou the rc\cnuc deficit t o be 0 1 the order of' Rs 3?.3? I
crores or 3 l " ol'GDP.
~
the budgctan deficit to be around Rs 7.000 crorcs or 0
of GDP and the gross fiscal deficit to be Rs 04.0 10 crorcs or 5 O ' h o f GDP (see
Anncvc 35 I )
? -
7"1i
7 -
-7
-7
;nI.\.\ /;.\a
I h+C It
'I1
-.r r-
still Iiovcrs in the danger zonc High fiscal dclicits whcn financcd out olcstcnial
ncccssarily inipl!. incrcascd dcbt burden as w l l as iiicrcascd dehi
smicmg. Fiscd dclicits tinniiccd out ofthc intcnial borronings from thc public.
intcrcst r a t s nnd croug out pri~atcinvcstnicd in productive arcas Fiscal
~~lcn\nsc
dclicits tinanccd out o f borrckings iron1 RBI can bc inllationa?. If such highcost borro\vngsarc to bc uscd only for intzsting in wiproductivc arcas. \vhcrc thc
returns arc vcn lo\\ or ncgativc. such as in loss making PSUs. or on ivagcs and
salaries of Govcmnicnt ciiiplnyccs. subsidies. defcncc ctc . the situnt loti becomes
iicll nish unsustiinablc Rcchlcss'borrotvings. among othcr rhings. 1iai.c Iatidcd
countrics in dwp financial crises. The bursting of' the Mcsican bubble and the
coriscqucnt itisol\~cn~
of the Mcslcan Gowmnmt is a cnsc i n point. India too had
Imdcd itself in alniost a siniilar prcdicanicnt during thc ccononiic crisis of 1'10 I
\ v h its fiscal deficit as a pcrccntagc of CDP had touched X -3'XI and it \\as faccd
\I i t h the prospcct of defaulting on its intcniational conimttmcnts All ~CCCSSto
cstcnial commercial markets had thcri bccn dctiied to India and the intcniational
linaicial conuiiunrty's confidcnccT n our nbiiit:. to manag our finanax \\as at nn
all tinic lo\\
~OUI'CCS.
_- 9 -3 . 0
ji 9
The expenditure on pay and allowances of the civilian
emplo_veesi s a percentageof revenue receipts, revenue expenditure and CDP
is observed t o have declined steadily since 1960-61 (Scc Anncxc 35 f))
Howvcr. bctrtccn JOXC-WC~and lcN3-'~4.cupcidilurc on \tagcs and salarics 3s ;1
pcmntagc of'rcvaiuc rcccipts sccnis to ha\ c mcrmscd s o n n h a r lion) !0 -3% l o
I0 5% Thc cqxnditurc on \iascs and srrlarics as a pcrccntagc of rctwiilc'
cxpcnd~turcon thc dhcf hard has fallen froni a Ic\cl of 16% in I OXS-%O to I 3 t a " l ~
i n 1003-04 This indicatcs that othcr itiiiis of rc\cnuc cvpcndituic durinc this
period g e u faster than thc cspcnditurc on \\ages and salsrics
3s 10
Our examination of the salaries of Central Government
employees over the years has shown serious erosion on account of inflation.
espechlly at the higher levels. The extent o f erosion at the Secretary level is
as high as 71 ?" Comparisons \\ 4th thc othcr scctors likc thc prn ate scrtor and
the public sector s b \ s that Ihc got cninicnt cmployccs haw bccn lcft Ik behind in
thc raw and ha\c lost thcir position of'prccniincncc
3s I 1
We also observe that the preentage increase in salaries at the
vnnous levels in government between 1J.86 nnd 1.I.% is evtn lower than the
percentage increase of per capita income during the same p e r h d (Scc table
below) whrk the pcrccnlage iiicrcasc b&ccn I O N 6 and 1996 in pcr capita NNP
at currcnt priccs is I78 E. that bct\\ccn )hc cmolumcnts (Basic+DA+lR) of thc
poon. LDC. UDC. Assistant. Group A JTSjand Sccrctay is much laser and ho\crs
betttecn 107 3% and I74 7% Thc pcrcentagc tncrcasc in per capita inconic
measurea thc at cragc rncrcqsc of inconws in thc countn Surel?.the incrcasc in
LIKXY~CSof thc Govcmmcnt cniplo! ccs c m o t bc lcsscr than the a\ eragc tncrcasc
I tcms
I I I080
2.
2')62*
( I9%0-%7)
Eniolumciits
(Bnsic+DA+IR)
(i) Peon
I I I006
3.
Pcrccnl
lncrcasc
4.
X237**
178 I
( I 904-95 )
I74 7
( * 4 t p t i , - ~ r,t ~ j t l i , ~
f ;oi.vriitiimt I,,
pi
35 I 2
Whcn \tccraniiilcthc argunmt rcgardiiis Govcmnicnt's capacit?
to pay. tlicrc arc two cxtrcnic opinions that iiccd to bc considcd. It can bc said.
and it has bccn said by thc rcprcscntativcs of thc cinployecs. hat thcrc really is no
limit to thc Govcmnicnt's capacit!. to pa!. Govcrnnxnfl can raise rqvcnuc h!
plugging of various loopholes, it can cut down on othcr non-cssential itcnis of
cspenditurc and \then cwrything clsc fails it can print rnonq.. Ernplops also
point out that scait\. of rcsouicesdocs not sccni to inhibit thc Govcrnnqt \\-hen
it iidulgcs in various gaiiics of populist jirofligac? . Its pursc-strings tightcn onl!
\vhen thc qucstion of its owi eiiiployccs is raiscd
->i
- 13
Another argunicnt gi\ cn b! the cniplo! ccs is that Governmait
used to spend almost one-hrd of its rc\ cniw cvpcnditurc on ivoges and salmcs of
its crnplayces. now it IS down to 13% Thc Go\ cmment's arguntcnt is that this is
nuslerdlng and 13% itsclf is too high a ligm of c\pciiditurc on cniployccs. that the
liscal d e E i t IStoo steep and has necesml> to bc brought down. that Go\cnuncnt
IS unable to d u x : its other items of expenditure in natiirc and thc major scopc for
rduction tics in the cspcnditurc on crnplo\ces
Our .+pnncch
35 I4
3 15
What ISnmkd ISs t a t d p ruld \ isioii Our lcadcrship niust
mi for a selc of govcmruxr: i n \ h c h thc rolc ofducct state involt cnicnt in the life
ofthe citlmuy is rcduccd to the niinimuni Wc should have lcucr but better-paid
cniploys Wc haw suggcstcdccrtlliii m c ~ ~ s m
fors rightsimg of the Govcmnient
inachincn I f thc Go\cninicnt is scrioiis about containing (tic deficit it will
irnplaxnt chose tcmmnmdations ~ i d\iigour and smglc-niindcdncss I n case the
numbers can be brought down, Government can very well afford to pay its
employees a decent salary
I. RECEIPTS
I . devenue Rectiots
2 6 . m 54.954 6c.030
u.pa
2. h D h 1 R w i o t s
l i 1 Aecoverv of loans
2.773 5.112 6.021 6.356 6.191 6 . N 7.411 7.048
Ii i1 Other recsiots Idisinvestment
of S b r e r of PSYs ml issue of
Bands 1
..
Ld31) 1.961
-48 5.907 1.392 5.001
l i i i l B o r r q i n r r and Other l i a b i l i t v 16.542 33.285 29.469 27.862 49.297 56.143 56.410 55.686
..
-1
Total
---------11.EXPENOITUAi
-----..----1. Revenue
Exoandi ture
l i i l Plan Exoeaditure
32.Sib
27.;;;
2. Caoitai lwoanditure
ii1 Nos-Flrn Eroenditure
I iiI Plan Exoenditure
Total
- I1
- 11.11
N. BudoQtrrv B e t i c i t I1 -111
VJ.
Prirarv Oeficit V
I - lot Patrsnts) 14.346 23.1f4
31,415
i.6N
6.576
2.266
6,8%
tf.311 1@.%0
961
Budaetarv D e f i c i t
i.6
2.1
1.1
1.1
1.4
0.1
G.i
0.5
8.3
8.3
5.9
5.7
7.5
6.1
5.9
5.0
Prinrrv Deficit
5.5
4.3
1.6
1.3
2.9
1.4
1.1
0.2
Aaount t to the
Aaount
Total
t o the
Aaount
to the
Tot, 1
Total
35.405
19 7
30,562
17.0
14.~3
1.3
17.316
10.0
:
:
1.321
4.1
1X.055
40.6
26.200
6.0
I
I
,
I
5 . Provident funds
31.1
4 # Sna I 1 savinqs
148.140
iOi.226
57.8
6.
ii.618
7.0
I
I
I
4.639
2.6
16.G00
10.0
16,124
9 4
28.700
6.6
14.000
1.6
2S.tS6
1S.d
20.000
4.6
16.702
74.8
31.391
17.6
0.0
0.0
i?.OOSI
-1.1
0,o
10.
2917
-1454
-9163
-1365
-10528
1991-92
-6060
-2940
-9000
1992-93
-2494
2 20
-2274
1993-94
-15713
- 1709
-17422
1994-95
-13370
-5722
- 19092
1989-30
-437 1
1990-9 1
1995-96
(Rs. crores)
.YOJ-86
2.745.63
829.92
1.9'15.51
13.53
7986-87
3.436.87
830.97
2.605.90
36-01
i567-68
4,087.30
983.26
3.iG2.64
i9.06
1988-89
4.504.55
1.171.47
3.333.38
7.44
1989-90
4.918.00
1.305.92
3.612.06
8.36
i990-91
5.094.34
1,483.92
3.610.42
-0.05
1991-92
5.626.38
1.539.19
4.0.17.19
11.82
1992-93
6.337.48
2.133.07
4.204.41
4.14
1393-94
7.041.75
. 2.445.34
4.596.41
9.32
12.49
14.46
11.56
nny
A n n u a l corcloound qrowth
t-ate ( X ) 1985-86 t o
1993-94
Saur-ce: 1. P a y C e l l . M i n i s t r y o f Defence.
417.00
j2.2
3.5
2.1
754. GG
25.0
21.9
3.1
1186.00
21.2
26.3
2.0
1886.GO
25.4
26.2
2.6
ii51.11
23.0
19.1
2.2
5422 25
19.3
16.0
i.3
6iP0.25
18.1
14.3
2.;
7203.G2
1S.5
i3.6
2.4
8129.63
i8.6
i5.0
L.J
3 G l S . 62
il.2
14. I
i.2
1GG26,62
i8.2
il.6
2.1
I I I10.42
i6.a
i3.5
2.6
1 3Gi: I . 13
11.6
14.17
2.1
i4iX . G i
19.5
ll.6
2.1
ii.17
Note:
15.6G
"
14.84
earned lsare.
36
7
Genera I I nt roduct ion
30 1
Thc staff sidc ofthc National J C V 113\c strongl! urgcd that fair
comparisons ulth public scctor undcrtahings iiim be rccogniscd as a lcgitiii~atc
pnnciplc of pa! fiution The dciiiand lot fair coiiiparisoiis dcrn es its thnist l h i i
thc docmnc of cqual pa! for cqual \\o1h as ciishriiied i i i the Coiistitutioii of India
The staff sidc hale confincd thciiiscl\cs to a conipartsoii \\ ith thc Public Sector
Undertakings as thc sole basis tor li\atioii ol' Go\ criiiiieiit salarics It 113s bccn
argucd that thc Ccntral Go\ criinieiit ciiiplo! ccs \\ere up to the Second ('PC at an
adiantage coniparcd to their couiitcrpnrts i n thc Public Scctor and it is onh sincc'
1958-59 that \\ages of Ccntral Go\ cnuiiciit cniplo\ws ha\ c started lagging bchind
The n a g c agrccmcnts 111 all public scctor undcnahings arc go\cnicd b\ the
dircctn cs issucd b! thc Department of Public Entcrpriscs as thc Go\ cmniciit of
India is thc majorlt!' shareholdcr in thcsc undcrtahings It is. thercforc. thc
obligation ofthc Go\crnmcnt to remunerate its cmplo!ccs. a majorit! ofit honi arc
also industrial workcrs. at ratcs \\Iiich i t b! itself laid dorm for its public scctor
cmplqws Undcrl!fmg the stafi'sidc's plca for fair comparison is thcir dcniaiid for
absolute parit? \tith Public Scctor cniplo\ccs at thc lo\\cst Ic\cls
At this point \\c \\is11 to claril:\ that our tcniis of rcfcrcncc do not
explicitly require us to stud! ttic pay structiirt and senicc conditions of public
scctor undcrtakrngs We haic includcd this chaptcr in thc report to confirm that thc
issucs raiscd b! thc staff sidc ha\c bccn iiioqt seriousl! cxainiiicd b! us We
30 2
')iir
I ~ * I ~ N I ~ I I Ij(,
I,4
~~
i
tthh
S r r lor - / l i t ,
Broad Observations
j(, 5
public cntcrpriscs suney. thcrc ncre 245 public cntcrprises (escluding banks) at
the Ccntrc i n 1992-93 and the capital eniplo\cd b!. thcsc cntcrprises \\'as of the
order of Rs 1.46.071 I0 crorcs The number of regular employees employed by
these enterprises stood at 21.37 lakhs. As compared to this. thc number of'
ciitcrpriscs at the centre in 1984-85 stood at 207. thc capital cmplo!cd \\as
Rs 36.000 crores and labour crnplo!cd 2 I 1 lahlis Thus i t is obscncd that uhilc
the number of public entcrpriscshas incrcascd b\ -1% units in tlic riitcn~cningpcriod
and capital cmployxl has gone up by four tiincs. tlic labour cniplo!cd in thc public
sector has s h m n onl! a marginal iiicrcasc
-30 X
Large dispantrcs arc obscr\ cd to C\ISI i i i the total cniolumcnts 01'
the ciiipl~ccssen iiig in the Public Scctor and Gcv crniiicnt of India At the loner
Ic! CIS. in a largc nunibcr o!' PSEs. the total cniolimicnts drann b\ the catcgon ol'
pmis' mcsscngcrs IS niorc than that dranii b\ tlic pco~ii n Cciitral Got cninicnt (scc
Aiinc\c 3 0 I ) At thc highcr Ict CIS sa! the ciiln gradc officers or the highest
functioriq . thc Ccntral Go\ crnniciit Eniplo! ccs arc seen 10 ha\ c an edge o i cr the
Public Scctor ciiiplmces as on 1 I 95 (SCCAnnc\c -30 2 3)3 and -30 4) At the
loucr Ic\cls the disparities arc causcd priniaril? h\ thc higher basic pa\ g1\c1ib\
the Public Scctor Undertakings This is a result of the lrcqueim of\\agc re\ isions
i n Public Sector EntcrprJscs as \\ell as tlic tic1 that the IDA prior to Jul\ 05 111
PSEs \\as morc lucratnc than thc ('DA i n Go\criimcnt at the lo\\cr Ic\cls Thc
total cniolumcnts at tlic highcr Ici CIS arc found to be highcr i n Go\ crniiicnt
pnmanl! bccausc the CDA foniiula adoptcd b! the Govcniment is niorc fmourablc
to thc emplo!a.s at the top than the IDA formula adoptcd i n PSEs This is bccausc
compensation for price incrcasc undcr CDA is linkcd not lust to thc Cdiisumcr
Pncc Indc\: but also to the pa!. unlihc in ID.4 .4t this point it ma\*bc clarificd that
\\hilt this \{as the position as on 1 I 05. b\ a rcccnt ordcr No Z(iO)/XO-DPE(WC).
dated 10 JuI! . 1095- the Dcaincss Allouancc forniula i n PSEs has also bccn ItnAcd
to CPI as NCII as to pa! in similar fashion as in tlic Ccntral Go\crnmcnt \\ c f
1 4 0 2 This has rcduccd tlic cdgc the Ccntral Goi.cmmcnt cniplo\ ccs cnjo! cd at
thc highcr Ic\.cls , Additionally. it ma! be ntcntioncd that cvcn bcforc this changc
in the Industrial DA ti as effcctcd i n thc PSEs. llie "iin1inii;cd" cntcrta~nnicnt
allo\\rrncc aiailable to tIic CEOs in PSEs morc than compcnsatod for the
disadi antagc in the dcanicss allouancc and ga\ c him a relati\ c ad\ antagc in tcrnis
of his total pa! pachct This obscnation is full! substantiatcd b! thc MDI stud!
\\hich has rcponcd that the CEOs in PSEs arc eiitillcd to s a c r a l allo\~anceslihc
club nicnibctship allo\\ance. credit card aliov ance. gucst entcnainnient allouance
etc. not aiallablc to Sccretarles in Go\cnmicnt of India Thc study after
yuantif\ing the non-nioncti/cd pcrAs has found that uliile a <'EO in thc public
scctor costs Rs 37.262 pcr month on aii a\ cragc. a Secrctan to Go\ cninicnt of
India costs Rs 43.X I7 pcr month
l ~ r c q i w i i l\ ,J/ J J C I ~
I
t ~ ' l l \ l ~ ~ l l \
30 1)
We obser1.c that the pa! re\ istons i n the public sector arc more
licqucnt than that i n the Go\cmnicnt Beginning 1073. four uagc agrecnicnts had
bccn concludcd i n thc public sector and irI I903 the filih round of \\age negoliation
330
.<Ill,..I l l , '
A. l r ~ ~ . l l " l l l , ~
1h*,mrc.rc
I !/I>~r,llic'*.
-30
lo
36.11
In the public scctor. t\vo s!stems of dearncss allo\vancc arc
prcvalent at prescnt. namely. the IDA and thc CDA. Banks follow a distinct
fomiula of their own for Dezuncss Allo\vancc. Out of thc 245 Central Public
Scctor Enterprises (escludmg Banks). 107 arc on thc IDA pattcrn whilc JX
continue to bc on CDA pattcrn . Approximately. W%,of'thc total 22-Iakh \wrliforce in all thcse PSEs arc on IDA paltcm Thc IDA pattcrn in PSEs used to givc
DA fu,Rs.2 per point incrcasc beyond XOO \v.c.f. -1.1 39 Ho\vcvcr. this position
has now anne to be changcd and vide BPE ordcrs datcd 10th July. I095 and 26th
July. 199s a new DA forniula on lines siniilar.to thc CDA has been rmplenicntcd
for both csccutivcs and non-csccutivcs
36 12
Dcarncss Allo\\ancc i n the public sector IS no\\ paid for thc
incrasc in AlCPl abo\ c clic quiutcrl! aide\ a\ erase of I009 as on 1 1 02.10 \\ hich
thc rcviscd pa? scalcs arc rclatcd Thc pcrcciitagc it~crcasci n the AIC'PI IS
calculatcd on the base of I OW and iicutralisattoii 10 ciiiplo!ccs i n dill'crcnt pa\
ranges IS made at tlic folio\\ iiig rates -
oiil> i n
36 I 0
Thc niajor PSEs lihc BHEL. SAIL. NTPC AND Oil Group 01'
Conipanics maintain their own dispensaries and hospitals for trcalnicnt of thcir
cmplo\.ccs and dcpcndents In other Undcrtakings. cmplo\ws at ail thcmschcs of
rhc scniccs of ESI hospitals Thc cntcrprises which ncithcr haie therr o u n
dispcnsanhospital nor arc cot crcd b? the ESI providc for rcini6urscmcnt 01'
niedical e\penscs subject to certain limits For domicilian trcatnienl. cmplo! ccs
arc alloucd rciniburscnicnt of actual cvpciiscs subjcct to a ceiling of onc monlh's
salan coniprising of basic pa! and dcarncss allowance
In thc casc of
hospitalisation reimbursement of actual cvpenscs incurrcd for trcatnicnt from a
hospital recogused b! the cntcrprisc concerned is permitted
Ho\\c\ er
rciniburscmcnt is rcstrictcd to the ratcs prescribed b! thc All India Institutc of
Medical Sciencc. Net\ Dclhi when trcatnient is a\ ailed from hospitals other than
thosc rccogniscd b!. thc cntcrprisc conccrncd
36 17
The age of superannuation for all catcgories of cniplo! ccs in niost
of thc undertakings is 58 !rears However in some of the enterprises like India
Tradc Promotion Organisation. Food Corporation of India. Nuclear Power
Corporation of India. Rural Electrification Corporation Limited. Mahanadi Coal
Fields the age of supcrannuation is 58 years for Group 'A'.'B' and 'C' enipio\ecs
and 60 years for Group ' D employees as is the case for Central Government
employees
36 18
Gratuity is payable to an cmplo>*eeon his superannuation or on
death The rate of fiftcen days Mages for cach conipleted year of sen icc is found
to be fairi?. uniforni across PSUs for rctircnitnt gratulty Siniilarl!.. the eligibilil!
limit in tcrnis of niininiuni years of scmicc required as well as thz ceiling on
retircmciit gatuih' is fairly uniform and is fiscd at 5 years and I Iakh in most
PSEs In Govcrnmcnt ho\vever. the ccillng on retirement gratuity has bceh reccntl!
increased to Rs 2 5 lakhs Similarl!.. thc cligibilit!.. as well as thc rate of dcath of
gratuity is fairl!, uniforni across thc PSUs as well as governnicnt (Sce Anncw
30 7)
36 1')
Some 1anation across PSEs is also noticed iii thc cniplo?cc's and
cmplo! cr's contribution to thc pro\ ident fund The contributions from thc
eniplo!*er and cmplo!cc arc observcd to \ a n bctireen X 1/3'%, of pa! to I 0% of
pay Pay I s \ ariousl!. intcrpreted to include fiwd DA and/or variablc DA (Scc
Anncw 30 8 )
I ;droram
1ia.tmwr~wt
.5' li,'llr,
l 'rrliiiitI I ~ III I
30 20
A hltdcl Volunt;in. K a ttctnciit Schctiic li)r the Puhlic Scct:w
ciiipioyccs \\;is notilied tl\. ( iovcriiiiicnt o f I n c h on Stti Octohcr. I OXS \\ 1111 thc
priiiian' objccti\.c of pruiiiiis surplus iiianpo\\cr and t o ciisiirc optiiiiisation ol'
1ahO)ur use i n the \'anoils I'SI3 In gcticral. rcgular cniplovccs ol.(*ciitr;il PSEs tvlio
1im.c coniplctcd at least ten \cars of scrvicc or havc attained 40 y c m of agc arc
eligible to smli voluntan. rctircniciit Bcnclits accruing to cniploycss undcr t k
sclicnic includc cs-gratia payniciit cqutvalcnt to I '/2 months' cniolunicnts
(basic+DA) for cach coniplctcd \car ofscrvicc or thc nmthly cniolunicnts at the
ttnx of.rcttkment multiplied by the balancc months of scnicc left bcforc noniial
datc ol'rcuircnmt. i v h i h c r is lcss. Tlx: ohm statuton. bcncfits such as pro\.tdcnt
fund. gratuity and cncashmcnt 01- l a v e as pcr cntitlcnlenf undcr thc rules \\odd
also bc adniissiblc to cinployccs scctiiiig voluntary rctircnicnt Sonic of thc
cntcrpriscs also nicct travelling cs:spcnscs for die ciiiploy and his famil\-as pcr the
ciititlcd class to thc placc whcrc tic intends to scttlc do\w Finall!. i t i s thc
nianrrgcnicnt of tlic coiiccnicd PS U \vhich cii.io\.s thc discrctioii \I hctlier to Sraiit
\,oliuiwrctircnmt or iiot As pcr the available infoniiation I .76.054cniplo:.ccs
optcd for voluntary rctircnicnt till 3 1 3 . 0 5 since tlic inception of the sclienic in
19x8 I n Govcmincnt ho\vcvcr one n c d s to havc scncd for at lcast 20 \cars to
be cligtblc for voluntan rctircnicnt
30 2 I
Tlxre is no t i i i i l i x l n i t ~ i n thc proniotion polic\ across thc I31ious
PSEs Pronmion poliq IS obser\cd to dilfcr across gradcs and categories of'
a n p l e ox Whilc i n sonic gindcslctitcrpriscs. seniorit\ -cum-merit IS lh11onc.d as
a critcrm !'or tiiix-bound proiiiotions or promotion to \ acanc! - rclatcd p s i s . 111
others selcction o r fast track promotions arc fa\ourcd to rward and nwti\ ate
cmplo!m l'm outstding pcrfonnancc In w n ~ * m IDcrforniancc o!'the c!iiplo\ ecs
IS e\ aluatcd on the basis of annual confidential reports as '1 thc ~ a s of
e thc Cciitral
Go\ cninient
CONCLUSION
36 22
In conclusion it must be reiterated that we cannot concede the
principle of parity as between Government and the public sector. Making a
fair comparison, we have tried to bring about a certain change in the
relativity, in order to improve the condition of Central Government
Employees. Thcsc nieasurcs include the folio\\ iiig
a)
b)
w i l l iiou
334
I ;droram
1ia.tmwr~wt
.5' li,'llr,
l 'rrliiiitI I ~ III I
30 20
A hltdcl Voluiit;in. K a ttctnciit Schctiic li)r the Puhlic Scct:w
ciiipioyccs \\;is notilied tl\. ( iovcriiiiicnt o f I n c h on 5th Octohcr. I OXS \\ 1111 tlic
priiiian' objccti\.c of pruiiiiis surplus iiianpo\\cr and t o ciisiirc optiiiiisation ol'
1ahO)ur use i n the \'anoils I'SI3 In gcticral. rcgular cniplovccs ol.(*ciitr;il PSEs tvlio
1im.c coniplctcd at least ten \cars of scrvicc or havc attained 40 y c ~ of
s agc arc
eligible to smli voluntan. rctircniciit Bcnclits accruing to cniploycss undcr tltc
sclicnic includc cs-gratia payniciit cqutvalcnt to I '/2 months' cniolunicnts
(basic+DA) for cach coniplctcd \car ofscrvicc or thc nmthly cniolunicnts at the
ttnx of.rcttkment multiplied by the balancc months of scnicc left bcforc noniial
datc ol'rcuircnmt. i v h i h c r is lcss. Tlx: ohcr statuton. bcncfits such as pro\.tdcnt
fund. gratuity and cncashmcnt 01- Icavc as pcr cntitlcnlenf undcr thc mlcs \\odd
also bc adniissiblc to cinployccs scctiiiig voluntary rctircnicnt Sonic of thc
cntcrpriscs also nicct travelling cs:spcnscs for die ciiiploy and his famil\-as pcr the
ciititlcd class to thc placc whcrc tic intends to scttlc do\w Finall!. i t i s thc
nianrrgcnicnt of tlic coiiccnicd PS U \vhich cii.io\.s thc discrctioii \I hctlier to Sraiit
\,oliuiwrctircnmt or iiot As pcr the available infoniiation I .76.054cniplo:.ccs
optcd for voluntary rctircnicnt till 3 1 3 . 0 5 since tlic inception of the sclienic in
19x8 I n Govcmincnt ho\vcvcr one n c d s to havc scncd for at lcast 20 \cars to
be cligtblc for voluntan rctircnicnt
30 2 I
Tlxre is no t i i i i l i x l n i t ~ i n thc proniotion polic\ across thc I31ious
PSEs Pronmion poliq IS obser\cd to dilfcr across gradcs and categories of'
anple
Whilc i n sonic gindcslctitcrpriscs. seniorit\ -cum-merit IS lh11onc.d as
a critcrm !'or tiiix-bound proiiiotions or promotion to \ acanc! - rclatcd p s i s . 111
others selcction o r fast track promotions arc fa\ourcd to rward and nwti\ ate
cmplo!m l'm outstding pcrfonnancc In w n ~ * m IDcrforniancc o!'the c!iiplo\ ecs
IS e\ aluatcd on the basis of annual confidential reports as '1 thc ~ a s of
e thc Cciitral
Go\ cninient
CONCLUSION
36 22
In conclusion it must be reiterated that we cannot concede the
principle of parity as between Government and the public sector. Making a
fair comparison, we have tried to bring about a certain change in the
relativity, in order to improve the condition of Central Government
Employees. Thcsc nieasurcs include the folio\\ iiig
a)
b)
w i l l iiou
334
3 0 2.;
With t ) r lmsaiing of'a~itrols
ot cr hc public sccm. Cioi cnencr~f
m a ! no longcr bc rtblc to i ~ ~ a i n tamtiglii control over ihc compc~isatio~i
pachagcs
ofthc PSEs ivho hat c cot\ bccn allotvcd 10 ncgotiatc scparatc pa! -scales \I 1111 thcrr
unions This, however, underlines the need for a national wage policy. so as
to ensure a broad measure of uniformity across the various sectors of the
\ c t d l l ~ P. ~ , I / l ~ J t # t I /
If
izyc I S J ~ J
1C
economy.
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100
525
..
5,065
rvs wion
\c.e.f. 1.1.1992
550
..
100
4.297
I. 1.119
2500-120-4300
2.500
.. 1.44J
133.16
1. 9.M
250-120-43(w)
2.500
250 IAJJ
N.A.
I . 1.87
29.01
I . 1.89
7.50
100
1.1.1992
..
4,794
..
J,1.94
..
J.394
Ltd.
7. Cement Corporation of
f ndia
f-) 52.08
(-)
9. Dredging Corporation of
14.88
India 1,td.
7.95
2,500
..
I.JJ4
4759
2500-120-4300-330-
2.500
..
1.444
250
..
2200-75-2800-EB100-4OOO (CDA)
2,200
..
2.750
220
..
92500-120-4300
m e (IDA)
75
!*
320
100
IIR,
1. 1.89
2500-120-4300
2,soo
..
1.w
750
loo
4.794
I . 4.M
2400-100.u106120-4320
2.400
..
1.44
.w
75
4,279
I . 1.87
2Joo-I204320
1.444
3M
75
2.m
50
lcantcen
tUbid\)
4.329
IWII
3
-.
I.
10. Urlhi Transport
c-QM.22
3.
I . 1.86
2200-75-2800-EB-
7,
8.
2,200
2,750
4.50
2,350
1,444 1
2.500
705
5.
6.
9.
11.
100
100
(1R)
5,6oQ
100
100
500
600
5,099
5,300
420
!Qo
4.464
720
100
4,664
100-4OOO
Corporation
1 1 . Enlineers India Ltd.
4.
29.35
1. 1.89
I . 1.86
2350-1oMlSO (IDA)
20004-23W-753200 (CDA)
2.000
loo
12.
8.47
1-)225.98
1. 1.87
2400-100-3000-1204320 (IDA)
I .a
I . 8.87
1. 1.86
2500-120-4300 (IDA)
2200-75-2800-100w)o (CDA)
1,444
2,750
750
2.200
660
100
100
4,794
5,710
2200- 100-3600
2.200
I .w
550
108
4.294
2.200
550
100
4,294
720
loo
4,663
14.
IS.
Fuud Corporation of
idia Ltd.
2200-lbe-m
2.500
1.1.
rd Engineers Ltd.
16. findustan Arronautics Ltd.
52.34
I. 1.87
2200-100-.3600
I f . Hindustan Fertilizer
(-)349.45
1. 1.87
LJ00-100-3Wo-lZO4320
2.a0
(-)O.ll
1 . l.S9
2400-120-4320 (IDA)
2,m
360
2.200
2;750
330
100
100
4,5,380
360
75
4,279
Corporation Ltd.
18. tiindustan Salts Ltd.
2200-75-2800-EB-
1.444
.*
IOOJOOO (CDA)
19. liindusian Ship!ard Ltd.
(-)113.95
(-)75.74
I . 1.87
1. 1.86
(.u. Ltd.
2.400
2200-4000 (CDA)
2,200
2,400
2300-4320 (IDA)
Construction Co.Ltd.
? I . Indian Kailwa!, Can%truction 17.40
2400-100-~-1204320
I . 1.87
1 . 1.86
2400-1204320 (IDA)
2200-75-2800-EB-
2,750
330
360
.w
720
2,400
2,200
660
1 0 0 4 0 0 (CDA)
3 40
20
20
5,300
100
160
4,664
4,224
5.710
."
z
.c
c
L
..
..
. .
. .
82
--
. .
. .
..
..
.,
..
. .
. .
PI
3
a'
gg
-
.-.
.-.c
c
rr-.
X
f
7
7
i
-. -.
L
i
L.
--
%
E
e. C .
+-,
I -
-\SXESE36.1
TOTAL EhlOLUhlENTS INCLlfI)IN(; PAY. FDA, VDA AND IR AT TIIE
MlNlMUhl OF THE PAY SCALE FOR .SOME COhlMON CATEGORIES
IN THE PUBLIC .SECTOR AND CENTRAL GOVERNhENT AS ON 1.1.95
Undertaking
Net Profit
/Net Loss
1992-93
(Rs crores)
Entr?
Grade
Clerk
Staff
Car
Driver
EnIr!
Grade
Officer
3.
4.
c .
_
6.
7.
8.
333 14
2.643
2.738
2.748
3.56X
S.A
1 1 0 1985
30 9 3
2.592
2 .?h7
2,962
3.647
sA
I Xh
2.714
2.814
'.XI4
3.944
N.:\.
I 4 l9R9
133 10
2.740
2.xo9
3 I94
I I ..XI
I 9 1946
2.
1.
India LtJ
Unskilled
IVorker
Highest
Functionary
NonElrecutite
I.
Air
-.
3.
4.
5.
NA
2.743
2.731
.2.773
3.044
x .(I04
I 19x7
B o ngaigaon Re t iiir ry a nJ
Prtro Cheniicals Ltd
20 0 1
2.70'
-'.X')?
2.762
7.044
sA
7.
52.ox
23x1
?.OX1
2.6X 1
3.944
I 19x0
8.
(-1 7.95
2.735
2.w
2.845
3.R44
sA
s A.
9.
D r e d p g Corporation of
India Lrd
14.RR
2,694
2.759
2.709
3.X44
7.695
I 419x9
10.
(-)246.22
1,844
?.?')'I
2.294
5.050
X.A.
I I 1986
II.
29.35
2.810
3.310
3 1x5
3.704
S.A.
I 1 IW2
12.
x.47
2.764
2.x70
2.x79
7 .M4
S.A.
(-)
34s
.1\
I 1992
I9Xx
I 419RR
3.
4.
( - ) 2 2 S .ox
2,720
2.XM
I .68
2.714
.2.
6.
8.
3.X1J
I I 1987
2.058
3.944
2.725
3 .(A4
13 .
Fen1llzt.r Corporation of
lrd1r I.td
I4
i5
23.35
2.MO
10.
52 34
1.540
1.070
3 (A4
17.
tliiidusiaii Fcnilircr
Corporation Lid.
2.720
2.070
-4.x44
IS.
2.194
2.394
2.391
3 .x44
I 1989
I IYXY
IY.
2,823
2.953
7.017
3 x44
2 19vo
1 !W';
20
2.580
2.680
2.680
3.844
21
17.40
2.094
2,494
2.494
3.844
. 1.1987
1 IW-
22
X5.XY
2.902
3.052
3.051
3 .q44
I I 1992
27
I .w7
2.340
2 . I76
1.914
I 8 1987
24
2.370
j.558
I l.lYX0
25
MICArrddmg Corporation
01 India Lrd
2.716
-4.894
26
\linrrA Exploration
Coqior.iiion I,td
2.717
27
hatioridl
Seed\ C orporation
( - )340.45
(-)5.87
IJd
346
2. K M
2.707
2.707
64'4
2.681
2.6X 1
:,946
h.lYR7
r-'
u,
TYPe
of
!Scale
I.
2.
3.
5.
4.
of 6 R d Basic Ply with
6% of Basic with
max. of Rs I(X)/-
3 S % of Basic with
mar of Rs. 20,-
7,
- do -
- do
- do
8.
Dredging Corporation of
India I.rd
- do -
.do -
9.
DrlhtTmnspnn Corporarlon
< ._.__________
As %r Cemal Governnirnt rates
1,ttl
1I).
---.------a-
. do .
5
IDA
6% of Basic with
niax. of Rs. 1001
4 . 5 % of Basic,with
inax. of Rs. 751-
('DA
11.
12.
6% of Basic with
mar. of R \ . 100/-
4 5 % of B a w with
niax of R\ 7.51.
348
13.
14.
do
Ltd .
IDA
.do -
6 % of Basic with
IMX.
CDA
of R~.100/-
do .
15.
16.
6% of Basic with
max. of Rs.100117
Hidustan Fertilizer
Corporation L d .
< __-----__.____
At the rate of 6 % of Basic Pay-------------.-- >
. 18.
Below 950 Rs.301950 -4499 Rs. 4511500 1999 Rs.7512000 & a b v c Rs.1001-
95b RS. 2.51950'--* 1499 Rs. 3511-SO0 1999 Rs. 5012 0 0 0 & above Ra. 7 5 i -
Visakhapatnani
@ 4.5% of Basic Pay with
nuximum of Rs. 751-
19.
. Hiidustan Sh,pyard L d .
RCIW
20.
&low 950 Rs.201950 - 1499 Rs.2011.500- 1999 Rs.2012000 & above Rs. ZO/-
IDA
6 % of Basic wuh
man. O f Rs.1001-
CDA
&low 950 Rs.301950 1499 Rs. 4511500 - 1999 Rs.7512000 & & O V C Rs.1001.
&low 950 Rs.2019500- 1499 Rt..201IS00 1999 Rs.201Zoo0 & above Rs: 20;-
349
0
l
r
,
-?
<
U
I
I
c
v.
re
U
C,
2
..-;
m
>.
c
*
i
,
r-,
.-.
t i
Workers
4 . 5 2 of Bask wtth
max. of Rs. 751-
35
Projects k Equipment
Corporation of India Ltd.
Officers
Rs.751-
Rs.201-
Workmen
8% of Basic with
mx: of R~;1001-
Rs. 751-
Rs.201-
mix. of Rs.1001-
Central Government
%:OW
WOW950 R< 251950 1499 Rs.3511500 1999 Rs. 5012000 & above Rs. 751-
.-__I_
950 1499
1500 - 1999
Pay also includes special pay, Personal pay. Deputation Duty allowance & Non-Practicing Allowance
Source: Data Collected by the Fifth Central Pay Commission..
352
_ - ...
T__
._-..__.__....-____I__
- -
COMPARATlVE POSlTlON O F R n ~ - C ( l ~ P E N S A T O R Y
ALL0WANCE:WINTER ALLOIVANCE Ell'
IN PUBLIC SECTOR UNDERTAKlNGS 81 CEhTRAL GOVERNMENT AS ON 1.1.95.
-.
---.
...----.-_
---
Undertaking
____-.-- ...............
.....
Basic paylClass of
PlaCcs
TY pe of
Allowance
Employm
1.
.---.._I
'
..-----
2.
__
...
3.
- ....
4.
.............
............
......
Rates of Allowance
5.
.......................................
C e m y t Corporation oi
India.
Below R s . 9 5 0
Rs.950 R s . 1 4 9 9
Rs. 1.500 - Rs..1999
Rs.2000 - Rs.2999
Rs.3(KIO and above
HCA
Rs. 50 p.m.
Rs. 7 0 p.m.
R s . 1 2 0 p.m.
R s . l S 0 p.m.
Rs.1-SO p.m.
2.
11industan Aeronautics
I-rd. (Koraput Division).
Worknien: Gr. A
Gr. B
Gr. C
Gr. D
Gr. E
Gr. F
HCA
Us. 70 p.m.
Rs. 80 p.m.
Rs. 49 p.m.
Rs. 60 p.m.
Rs. 6.5 p.m.
R s . 70 p.m.
4.
Height of ahove
1500 metres.
Officers
HCA + WA
Non-Officers
HCA + WX
R s . 2 0 0 p.m. from
October to March
Below Rs. 9 5 0
Rs.950 - Rs. 1 4 9 9
HCA
R s . SO p.m.
R s . 70 p.m.
R s . 1 2 0 p.m.
R s . 1.50 p.m.
Officers
HCA + WA
R s . 4 0 0 p.m. from
October to March
5.
Heigbt'bf 1500
Metres or above
__I.."
353
........
Date of L
6:
...........
R s . 90 p.m.
Rs.100 p.nr.
Rs. I15 p.m.
R s . 1 3 0 p.m.
.......
revision
1.
3.
ASSESE 26.6
19x3
-----
."._ . . .
... .
0
1.
.. . .
. .
..
2.
. _-- . -.
-.
3.
tieieht of IOOO
metres & above
but I c s t h a n
rsoo metres.
Height not less
than 7M metres and
which are
surrounded by hills
with a height of
IIW nietres & abnve.
Height of 1500
and abnve but less
than 3OOo metres.
.. _.-
_.. . .- .
.^
-____
4.
..- ._
..
-.-. -.... .
..
---
7.
Indian Telephtine
Induatrte%Ltd.
R.
Life insurance
Corpnmtion of India.
Height of 1 5 0 .
Metres ahove Sea
level.
... ,.
-_
. .
6.
.-
... .. . ,.
fiCA
Officers
HC'A
..do .-
_.
do _.
..do -.
HCA
8% of h a w pay
maximum of Rs 150 p m
Officers
HCA
6 5%
6% of hasic pay
HCA
Officers
I4Ch
Einployees of Sriniigar
Unit
Rs 190 p ni
Class-I
7%
Of b S l C
pay SUbJeCt
t o maximum of
_.__---.---
Rs
180 p m
Class-I
HCA
3 54
7.1091
to
Height of 3000
Mrtres and ahove.
-.
5.
.. -
1 1 57
__
.....
.....
-..._ .
.-
........................
3.
2.
1.
.....
........
.-
. ............
-.
...
__
. . . . . . .
,.. .
_- .- . . . . . . . . .
... - ..
_"........
5.
4.
.
.....
.......
...
._ - .. _-
6.
_. ....
9.
10.
Project site.
Tehri.
........
Supervisory Staff
Supervisory Staff
Below Rs.1500
Rs.1500 - Rs.1999
Rs.2000 Rs.240
Rs.2500 & abnve
HCA
Rs. SO p.m.
Rs. 70 p.m.
Rs.120p.m.
Rr.150 p.m.
Below Rs.950
CHCA
Rs. SO p.m.
Rs. 10 p.m.
Rs.950 - Rs.1499
....
_-
Rs.450 p.m.
Rs.120p.m.
Rs.150 p.m.
Rs.1500 Rs.1999
Rs.2000& above
~
S u p m i s o y Sraff
Central Government
Employees.
11.
HCA
HCA
CHCA
355
1.1.86
AhiXSE 36.7
Cndertaliing
__
(min. year
of service)
.
2.
1.
_____
-____
._
2.
3.
__
-
3.
-_
No. of
Amount
Months
(Rs.)
-_
-.. .-
~ _.
4.
- -
.___--.
___-__-.
- -.--
_-
5.
IS days salary
for each completed year of
service
6.
__
Amount
CRS)
-
~~.
a.
7.
~
..
16.5 Months
Emolunients
1 lakh
20 Months
I Iakh
Salary
(Basic + DA)
lecs than I y r
2 Months
Emoluments
6 Monrm
12 Months
Emoluments
After 20 rs
Emoluments
I IaLh
112 Month's
Emoluments
for cornpleted half yf
of qua1ify ing
service
I lakh
3 56
< ...__
._...d(,.. __.......
>
^
9.
~
1 lakh
1S days salary
for each coniplrted year of
service
? years
No. of
Months
33 tinier
Emolument\
IdAh
5.
6.
7.
Cement Corporation of
India
8.
1 lakh
I lakh
16.5Months
Emnlunients
IS days salary
for each completed year c d
I lakh
33 times
Emolumcnis
I lakh
I lakh
33 times
Emoluments
I lakh
33 tlrtU5
Emoluments
1 lakh
33 timer
Emoluments
I lakh
KWkX
S years
< _ _ _ _ d__.___
o >
16.5 Months
Emoluments
II.
20 times
Emoluments
I lakh
2 years
IS days salary
16.2 Months
for each comple
Emoluments
ted year of
service
(Basic + DA + Spl.Pay )
1 lakh
5 years
IS days salary
for each complcted year of
service
I lakh
1 lakh
357
1
c
.
L
2.
1.
3.
- __
22
23
.. .
hfinenl Exploration
Corporation Lid
4 years
S years
5.
6.
__
IS day7 talary
for each completed year nf
wrvice
LO Montlic
IS days salary
for each complrted year of
service
40 times
I lakh
IS dayc wages
for each completed year cif
;eivici t i l l
the date of
retirement
Emolumentc
1 lakh
less than I y r
Eniolu me nt s
15 days wages
(20 months)
6 Month5
12 Months
Emoluments
After 20 yrs.
5 years
15 day7 emoluments
for each complered year of
cervice
20 months
Emolumentc
(Baric + DA)
20 Month.
Emolumentc
33 rimes
1 lahh
I lakh
Emoluments
I t ? Month's
Emoluments
for completed half y r
of qualifying
service
1 lakh
1 lakh
1 lakh
33 times
Emoluments
5 years
2 Months
Emoluments
24
8.
7.
- _
____-
-__--
__
59
- -- ______I__--._-.
Source Data collected hy the Fifth Central Pay Commiswn
_
_
I
_
2.5 kkh
AShEXE 36.8
1.
2.
3.
1.
>
-.
R h a m Electronics Limited
10% of h a w pay
3.
10%of P a y + D A + F D A
4.
Btiarat .4luininiiiiurn C ~ I1 td
10% of Pa!
+ DA
DA
+ DA + Spl P n )
Chemical$ Limited
+ DA
X li37r n f h $ i c w a g e s + D A
10% of basic p a y + D A
h.
Cement Cnrpwiir
7.
8
tin
of India
10% of hasic p a y + F D A + V D A
(IDA scale)
Lln~lted
1 0 % of
hd\iL
pa) + DA
+ DA
11
12
12
X.33% of basic
14
360
2.
1.
3.
i 0 l of basic pay f DA
Limited
16. Life Insurance Corporation
of India
+ DA
I 0% of basic pay
10% of basic p ~ fy DA
8.33% of basic p q t DA
of India Liniiled
Corporation Limited
%I
No! applicable
___-
....
361
___
....
__
-. .
37
-3 7 1
Wc obscnx that subscqucnt to thc cpcning up of thc cconoin!
salaries in thc pri\,atc scctor ha1.c sk>.rockctcd and gone through the roof T h i
recent spirt in the conipcnsation packages oTcmplo!ws i n the prn'ate sector I S 3
result o!' die intcnsc conipctition :iiiongst thc large nunibcr of p1aJa-s that ha\ 5
sml.rgcd on the industrial scciic It IS ilicsc pla! crs nho arc making such lucratii 2
oflcrs i n ;i bid to attract and rctain kc!. pcrsonncl
-- 2
l ; a i o r . iiiitial!!.
37 3
At a Sermnar organized in Januan. 19%- b: the Centre for Kcv
Perspcctnzs on the " S a l v . SJsteni in Go\ crnmcnt". the public s e n ants argucd
h pnvate sector iil respcct of
\chcnicntl! in support of a comparable status ~ i t the
salancs It \+as argud that the "o\cr offcrings" b! multinationals to fresh IIT and
managemcnt graduates. which Mere as high or highcr than the salaries of senior
Go\ crnment officials. iverc eroding the niorale of all Government functionaries
Such glaring disparities between the pa! structurc in the Government and thc
pri\ atc sector might creatc a senous crisis ol'talent. cspcciall~at higher Ic\ cis
37 J
The issuc of salaries iri pris atc sector has hogged considcr-able
media attention and senerated a yeat deal ofcontrovcrs!, Whilc there IS a plethora
of nc\\.spapcr and magazine nniclcs a \ d a b l c on thc subject of salarics i n thz
pri\ atc scctor. tlicrc is no reliable databasc In tius contcst. \\c dccidcd to assigii
a stud\. to thc Managcmcnt Daclopmcnt Institute ( h4DI ). Gurgaon to tarn' o i i l 311
objccti\ c asscssmcnt of thc situation. comparing the salaries and pcrqiiisilcs
obtaining in thc Ccntral Go\ ernment nith those in the prn ate sector The MDI
circulatcd a questionnairc to about 400 pnvate sector enterprises ranging from
small traders to huge multinational companies The list tias d r m n up so as to
cmer a urde spectrum of enterprises in terms of their scale of operations. types of
actn ities. organisational structures. locations etc The s,ample drann \\as
influenced b! con~enienceof access to information and technicail! could not be
called a random sample The pmate sector is highly reluctant to part \\ith
information relatins to cornpensahon packages With great deal of persuasion and
personal efforts. MDI succeeded in elicitmg information from 1 I2 organisations
The response to the questionnaire was received from these 1 12 enterprises This
is a good beginning and it is hoped that Management Institutes across the
country will take this as an example to follow, so that a body of literature is
created on private sector remunerations
f
I d / H p
\/iiiA
\[I ) I
o///w
ivitriisfed /o
37 _i
Aftcr n i b g some assumptions regarding thc comparable levels
in the pri\ ate scctor and the Government, and other assumptions for the purpose
of quanbfi mg non-quantifiable benefits (see Annes 37 1) thc MDI have calculated
the "average total cost to the organmuon"of maintaining officers at var~ouslevels.
m the Government and the pnvate sector. This average total cost includes both the
duect and mdirect cost and is given for five levels of managment in Annese 37.2
The MDI have concluded as under :
1)
11)
111)
I\)
CEOs in the private sector enjoy a little more than their basic
salaries in the form of housing and car benefits These includt
hoisc \\ ith furnishing a l l o ance,
~
house maintenance. telephone.
dni er. car mmtenance. insurance. road ta\. pctrol. ctc In some
c a m . portton ofespcnditure on housing and car is given in cash
on reimbursemen; basis The Secretan also cnp? s housing and
car bcncfirs but not of conmxnsuratc \ alue
In 3dditicn. a CEO in the private sector draws sundry
allowances such as books and pcnodicals. club incnibcrships.
credit cards. LTC. medical entertainment. sen ices and anicnitics.
s m Ants. ctc . to thc tune of Rs 12.045 p i n which is nearly
55% of his basic salary As regards the Sccretac to the
Go\erniiicnt of India. he is entitled to soiiic medical benefits and
LTC b! rail only. nhich may bc \ alucd at Rs 2700 or I O'%) of thc
basic snlar!
v)
vi)
Vii)
siii)
In the private sector. performance criteria are well laid down and
salaries are revised annually Those performing better tnan
others are given accelerated increments and promotions.
Amongst the nonexecutives in the private sector it is observed
sii)
siii)
SV)
svi)
/ > ( I I I I I L I I I I ~ <J I Y W I
\I,<
ior
37 7
\Vc are. honeber. constrained by the availabhh of funds \\]thin
the Go\enlnient in niahing recommendations of this son Yet. \\e have tried to
str1l.e a balance b! borro\\inS certain features from the private Sectoi Our
recommendations on exemption of allowances and pensions from taxes,
performance-related increments, linking part of running allowance with
punctuality of trains, introduction of Limited Departmental Competitive
Examinations for promotion, reduction in number of holidays, etc., have
drawn inspiration from the experiences of the private sector We have also
narroued dorm the astronomicall!. large differentials at the highest h e 1 to a
limited estcnt b! reconmiending 100% mflation neutralisation at all lei CIS
Needfor National
fa~poi~
3 7.8
While we hope that the present boom in private sector salaries IS
a transitory phenomenon and will be self-lmniiting. we do feel that a National
Wage Policy needs to be drawn up to put an end to the corporate warfare being
currentl!. waged by private industq. for wooin? m a y human capital
Assumptions made by MDI for the purposes of calculating and comparing total
compensation packages in companies.
Designationsand salary structures do not have one to one IidaSe in several organisations.
Where the s a l q structure is not clearly defined, we have taken the basic salary of the
incumbent III that post as an estimate of the basic salary.
Many compan~esuse a vanable annual increment as a comblned measure for both inflation
adjustment and increment (up valuing skills) Consequently in our reporting the changes
u1 DA + m u d mcrement ma! be combined together to estimate increase in compensation
Wherever a company car has been provided, a sum of Rs OOOO/- per month has been used
as an estunate for h s benefit This figure has been arrived at based on estimate of driver's
monthly salary plus car maintenance plus petrol expenses plus other expenses like tax etc.
This figure is for non-AC standard car model. In the case of l u s u cars
~ like Contessa,
Cello. Esteem. etc., a sum of Rs 15.0001- per month is taken as an estimate.
Telephone :If a telephone \\;lth local call facility is provided. a sum of Rs.jOO/- per month,
respectively is added in the
with STD facility and ISD facilie Rs.15W- and Rs.2500/monthly compensation package.
-i
.
Transport C-ation
In some cases it cmnot be treated as a part of compensation since
the lowtion of the unit is outside the cih. !n such cases the cost of monthly pick up is not
included as a part of the compensation
Medical Benefits Whenever the company does not specifi. the upper limit for medical
reimbursement. it is estimated that this figare is equal to one month's basic salary.
LTC : Where an upper limit on LTC is not specified. it is estimated that this figure is equal
to one month's salary.
Accommodation Where conipan) accommodation is provided and HRA is not specified.
50 per cent of s a l a n (bastc+DA) is uscd as an estimate for the rental Idue of the house
In the case \\fiere bachelor accommodation is provided. 25 per cent of the basic + DA may
be used
Subsidisd Food Wherever lunch. Tea/Coffee is provided b! the cornpan). a flat sum of
Rs 750/- per month is added to the total monthly compensation package of executive and
Rs 3001- in case of workmen
10
Grahuh h the case of yatuih. 15 days' salary for even completed year of service is taken
as an estunnte The salan here ma! be taken to be the basic pay + DA of the upper limit
Provident Fund . For PF 10 per cent of the basic + DA is added to the total monthly
compensation.
367
12
Leave Encashment wherever th~sscheme m s t s , the amount may be added to gross annual
compensation, whether it is availed or not.
13.
Productivity Incentiia : Wherever this scheme I s in vogue. last year's data IS used as an
estimate
14.
Uniforms. Shoes. etc.. which are given to employees are treated as a part of compensation.
although some companies do not trcat them as such.
15
The jobs responsibilities and hours of uork f6r the same designation v a n considerabl) Ln
ma!. organisations We haw e used our judgement to classifi them into similar clusters
Cost to company:
This represents all direct and indirect cost to the company for hmng an empio! ee Thls
would mclude al! monthly pajments. annual payments stotutoF obligations (ESI. PF. Penson. etc )
and subsidies (Canteen. Cor,veyance, Umform. eic )
Effective Pay
f i s is the total cost to the company excluding statuton obligations (PF.Gratuity and other
Terminal Benefits), housing benefits (Rent on leased house. house maintenance. telephone. etc ).
convqance (including carIpetrol, insurance. tax and maintenance). This. howe1,er. would not g1i.e
the cash pa!. packet whch employees moss the sector take home. Nevertheless, it senes as a useful
measure of comparing the pay across sectors. especially when a significant proportion of the pa? is
strictl!. non-measurable or non-vanable.
Take Home Pay
This is the pay packet in cashwhich an employee receives each month. It includes basic pa!..
DA, CCA, Cash Allowances and excludes HRA if any and all annual benefits like Bonus. Es-gratia.
LTC. etc.. as also statutory benefits Ilke PF. Gratuit?,. Pension, etc.
ANNEXE 37.2
COMPARATIVE LEVELS OF TOTAL COST IN THE GOVT. AND THE PRNATE SECTOR
.
.
.
.
. ..
I.&\
__
el
_____
__
-.
(Rs./Month)
_ ~ _
Desigriatioa
Luw
Avg.
High
1.
Highest l e ei~
2.
(a) CEO
4.
7X 512
44x17
101,255
269,967
44.817
44,817
20.308
65,283
N A.
112,783
N.A.
10,837
14,350
23,288
16,380
1,146
3.251
8,381
5,139
3,582
2.961
8,065
3,234
36.805
( a ) Esecutives
(b) Ciraup A Ofticas
Siippoi1ing Stafl
3.
2.0OCJ
12.139
in P\? Sector
(b) T-pist in Govt.
(a) Typist
Lowest Ie\d
360
I OX6
q - l
3.312
930
2.hm
_____--
_.
38
I
71lC i l ' 4 /ill.
L
otitpim V J I I s u11h
r h S~IJW,
GENERAL INTRODUCHON
--I
38.1
Our Ternis of Refercncc rcqurre us to ninhc rccommcndations
about the structure of the emolunients and conditions of sen ice of tbc Central
Govemeni e m p l q ws ha\ in2 regard. among other i ele\ ant factors. to the
1
Tlw S L V rlrrd t 7 K
j8 2
The Second CPC uhile admitting problems of making \ d i d
comparisons among State Go\emment employees stated " The rates of
rcmuneration of the heads of mqor d e p m e n t s are comparable nith those of
heads of departments under thc Central Gownrnent The diffcrcnces hone! er. arc
most conspicuous in the case of Class IV and clerical staff \\ hich i n conjunction
\\ith the s m l a n h of'qualifications and duties has pro\ ided a ground for agitation
b? the non-gaircttcd cniplo! ccs The disparitics i n the cmolumcnts of p ~ b l ~ c
servants in different States are lo a largc extent. but not cntirch thc reflcction of
unequal le\ els of econoniic de\ elopment and of dillcrences i n thc linancial
resources of the Slate Go\ emnents "
I I, v h>iiirrli (
f'(
38 4
Thc Fourth CPC obscned ' \\ hiie a graduate teacher. staff car
dn\cr staff nurse are paid less at the m m i u n i of the scale compared to the Centre.
a m i n othcr categories like LDC. Constable. Head Constable. Telephone Operator.
METHODOLOGY
S r r r l r , '1Il
( lltllllll\\
Ill\
;'
From the replies recened it is obsened that the pa! structure of
Statc Go\ cnmicnt cmplo>eesIS pcnodicall! re\ i a e d and re\ ised b? the respcctij e
Statc Pa\ Conin;issions/Comniittees on the pattern of Central Government pa!
scales The number of such Pa! Commissions iaries froiii three to nine across the
States n i t h thc largest number ha\ ing been sct up in Andhra Pradesh. Assam aiid
Orissa ( Sc\ en each). Rapsthan (Eight) aiid Jammu R Kashniir (Nine) (See
Annexe 38.1 - lor details)
38 x
Most of the States have adopted the Central Government
pattern with slight modifications to suit local conditions In ccrtain Statcs lihc
Karii,itaka. Andhra Pradesh and Assam. the pay scales have been rcvised as
racntl!. as I 7 iOO3. 1 7. IOW and I 1 1989- as compared to 1 I l O X 6 \\hich IS thc
37 1
date of eff& of the Fourth CPCs recommendations. Consequently, the pay scales
in these States are much hi&
than the pay scales at the Centre as these are linked
to higher levels of AICPI.
Pav-.\rules
Smwc
iti
38 9
The number of pay scales are seen LO vary across States. wth a
maxlmum of 46 scales in Goa and a rmnirnum of 17 in Haryana The number of
scales in some other States are Andhra Pradesh (32). Amnachal Pradesh (36).
Assam (30), Gujarat (36), Maharashtra (30), Rajasthan (25), Uttar Pradesh (37).
West Bengal (24) and Himachal Pradesh (29) (See Aniiexe 38.2)
38.10
There is no uniformity in the scales of pay of various categories
of employees across States. The Chef Secrew's post. being an IAS post. is in the
scale of Rs.8.000/- in almost all States, escept Goa and Tripura. The Chief
Secretary of H q a n a gets a special pa); of Rs.500over and above the basic pay of
Rs.8,000/-. The scales of pay of Directors of Education and Chief Engineers shm
considerable variation across States.
38.11
It is also obsaved that the pay scales of some common categories
like Constable. Head Constable and Staff Car Dnx er I I ~a large number of States
are more attractive than at the Centre. (See Annexe 38.2)
!frrlm,unl.\fiJrrmuni ran0 in
StlllcJ$
hfla IlOII
"i'c-'af*ov
ln
Smfes
Encoshnrent of
'''rive a"dLTC
38 12
The rmnunum-ma~um
ram across States as on 3 I 3 95 IS at the
level of 1 10 7 as at the Centre. Goa and Tnpura are the onl! exceptions, as theu
Chei Secretaries are rn the scale of Rs 7300-7600 and not Rs 8000 as m the other
States and their peons are m a hgher scale than their counterparls at tbe Centre
38 13
Salaries are indexed for d a t i o n In all Slates and the
compensation for increase ui the cost of living is given in the form of dearness
allowance as per the Central pattem All the States use All India Consumer Price
index for Industrial Workers for measuring inflation. as is the practtce in the
Central Government
38 14
372
3% IS
%lost of t h e States do not have a system 3f payment of
overtime allowance For a feu categones of emplo>,eeswho are required to work
at odd hours. a special tiffin allo\vance is permitted
38 16
We also 0bsen.e that certain other local allowances or facilities
like a peon surrender allowance, car for private use on nominal payment
along with free petroi. medical reimbursement of treatment from private
medical practitioners, sumptuary allowance etc., are given by certain States
like Tamil Nadu to their employees, whde such allo\\ances or facilities are not
pro\ ided b! the Centrc
38.17
A _greatdeal of uniformity is observed in the retirement benefits
avdable to the State and Ccntral Government employees n i t h average emoluments
for calculating pensions being based on last 10 months' pay in mo.st cases. rate of
pension being 50%. qualifiing service for full pension being 33 !'ears and for
eligibility of pension being 10 years (See Annexe 38.4). The minimum and
maximum pension limits vaq. across States because of differences in the pay
structure. The States of Andhra Pradesh, Madhya Pradesh, Onssa. Rajasthan.
Tamil Nadu and Tnpura have no ceding on pensions. As at the Centre. on third of
pension is allowed to be commuted in all States. Whlle rcstoration of commuted
value is generally allowed after a period of 15 years botli at the Centre and in the
States in a fen States this penod has been reduced even to 12 years.
38.18
Whde no \anahon IS observed between the Centre and the States
m the rate of deatb-cuni-retuementgratmty and the ceilmg limit in terms of number
of months is also broadl?. umform at 16 5 months or so. many of the States have
not yet reported an increase in the financial ceilings (See Annexe 38.5)
38 19
Kegardm_epromobon pohq. \\e obsene that the States of Andhra
Pradesh. Goa. Gujarat. Kerala. Rajasthan. Maharashtra. MiLoram Uttar Pradesh
and West Eknsal ha\ e introduced some form of time bound promotions at Group
B. C and D lael (See Annexc 38.6) Slkkun has introduced an ad\ ancement g a d e
of Joint Secretar after I 0 !ears of service at the Group .A 121 el The number of
such tinie-bound promotions \ a n bet\\een 2 to 3 across States and le\ CIS In the
Central Go\ crnnient also. tirne-bound proniotions ha] e been introduced at the
lower h e l s of certain Group C staff in the Department of Posts Man! scientific
departments at the Centre operate a flexible complementing schcine for Group A
scientists and for other categories of employees. \\hich is also a J ariant of timebound pronimon
PRODUCT.
38 20
As compared to Rs 9044 crores spznt by the Centre on the wages
and salaries of Central Go\.emment emplo?ees in 1989-00. the corresponding
amount spent by the States vaned betucen Rs 2040 27 crores in a large State like
U P and Rs 42 67 crorcs in a small State like Sihkiiii (See Annexe 38.7)
38 21
percentage of
Revetwe Receipt,
KLWetlNC
Expendifurr arid
s , ~ ~~o,,lcJIic
,~,
Prodmi
~ot~rlusicitts
38.22
Looking at the scenario across the iwious States, certain broad
conclusims may be drawn .
While the pay structure and conditions of sentce in respect of
State Government empla~ees are mostly on the Central
Governmentpattern, some peculiar features have been mtroduccd
The
by each State with reference to its requirements
conventional wisdom that State Government employees are
not paid as much as their counterparts in the Central
Government is no longer valid for some of the States. Man!
States have either formally snitched over to the Central pattern
or are now committed to grant of Central pay scales or have
evolved their own patterns which are not 111 any way lower *an
those prevdemt at the Centre
GcnwwniLviI
38 23
As far as the Central Government is concerned. we feel that there
are some lessons to learn from the States. Some of the ideas borrowed froni
their experience are .
Rtpple
~ J C IL
.Vm (jfccm(i,i
38 24
We also appreciate that our recornmendations for the Central
Government employees are likelj to have a ripple effect and are not without i t s
implicattoys for the State Governments. We have kept h s constraint in rmnd
while making our recommendations
38 2 j
There is :i final note of caution we would like to sound. Bet\veen
the State services and the All India Senxes, there is an interface, as the former are
feeder cadres to the latter In their erithusiasm to better the lot of the State
services, some State Governments have made them more attractive than the
All India Services. This is an unhealthy trend which needs to be looked into
We shall speak of this at greater iength in our chapter on -411India Sen ices
: 375
Annuxe 38
1. Centre
750
- PI0
SO!
1.1.86
1114
1.1.92
608
1.1.86
150
- 950
11s
I. 1.89
900 -1435
1.k
608
1.1.86
950 -1500
815 -1200
350 -15GG
$15 -1660
350 -1501:
1145 -!420
1595 -jOiG
1975 -4010
1745 -3420
1595 -3
950 -is00
825 -1100
Pi5 -16%
S50 -1500
LA,
1285-3015
915 -1935
1065-2095
N.A.
n.A.
ii5 -1025
1150-1500
050 -1500
3i5 -i66G
LA.
1150 -is0
750 - 9JLI
IJr. Asstt.;
950 -I506
825 -1200
120-2040
I.A.
950 -1530
1200-2010
#.l.
N.i.
N.A.
to20 -?ti
N.A.
A. r,
11. States
---I---
1 Andhra Pr6hSh
2 Arunachal Pradesh
3 tssa
4 ha
5 Warat
!.A.
601
1.1.86
;?I5 -2315
r i t h a start
O f 1s. 855;6 Wrua
608
1.1.86
1 Yiaachai Pradesh
608
1.1.86
8 Jaanu I. kashair
608
1,4,81
;SO
- 346
450 -1500
soi.iav
i S G ~ .oav
Of Rs.~/-
of Rs.401-
450 -1800
with a start
O f Rs. t000i-
150 -135G
950 -1800
950 -1800
1200-2130
with a start u i t h a start u i t h a start u i t h a start
of Rs.110;- of Rs, 10001- of Rs. 105Ql- of Rs. i260/150 - 940
950 -1500
(Jr. Asstt.)
825 -1?OO
950 -ti00
1340-1940
1300-1t70
(stl. grade)
9 Karnatrka
632
1.1.43
140 -1340
1043-1900
1040-1900.
li30-2i00
10 Wadhra Prsdesh
608
1.1.86
750 - 945
350 -1530
950 -1530
li50 - 8 G G
ii Rrhrrashtri
608
1.1.86
156
- 910
950 -i500
825 -1200
915 -1660
915 -1660
9% -1501
12 Nanio~lr
608
1.1.86
i5G
- I46
950 -15Q
825 -1200
975 -i660
H.A,
950 -150:
13 llt9hdihri
661
i 4 IlirorU
608
1.1.86
SOq-iijG
Nl
825 -i26G
li.i.
6.1.
E.4.
iS trissi
aoa
1.5.89
150
356 -)NO
950 -1500
N.A.
16 MaSttiL
603
i.E.88
756 - 940
15G -1680
825 -1350
i i t h 1 start
of Rs.8551-
05; -168;
- 940
1040-;90G
H.A.
3;;
-1660
8.1.
N.A.
n.A.
950 -;50
950 -168
AnneJe 38.1
irirtura
608
1.1:86
Utt i r Pradesh
608
1.1.86
- i130
150 - 910
715
: 377:
N.A.
950 -1591
a511 -2130
I.A.
m.
1.1.
150 -1400
915 -1660
1200-2040
950 -1500
I, h a
32
IAS
8140-1O;tJ
U-A.
8000
Nk
l:X,;
HA
4200-5300
;.A.
45
i300-1600
Nh
l:j.4
5. Gujsrit
k*i,
6. Harvarta
1:1C.7
1. Hirachrl Pradcsh
23
8300
#A
i:10.1
8. J
m i kaokrir
28
IAS
IAS
1.1.
9. Kmattkr
20
14
Iu
30
12. Wanbur
24
IAS
8000
#A
8000
13. Heyhalava
14. Wizoru
15. Orissa
i6. Aajasthan
24
31
8000
8000
2i
8000
25
8000
17. Sikkir
18. Tuiluidu
19. r m r a
21
25
!.A.
31
IAS
US
19
24
7300-1600
IAS
8000
130O-ICOO
IIA
4100-6400
5900-6100
5100-6300
~~OO-SOOII
5900-6100 1200-5800
Ih
1500-5166
5825-6800
IPS
5000-6100 /600-8000
5100-6300 Cadre Pht
4100-5300 7 m - 8 0 0 ~
4200-1880
1500-5100
HA
ti4
4800-6300
3900-5000
5100-6500
5100-6306
HA
4000-5106
4500-5iOG
5100-5100
5500-6500 5100-5700
#.A.
IAS
llh
4000-5900
NA
7300-1600
N,A,
1300-8000
IPS
IPS
i100-7600
5900-6100
5900-61013 1300-7600
#A
5f00-6100 5Yir3-VG 73lC-7660
1040-1900
950 -1530
825-1200
a25 -1200
840 -1340
150 -945
150 -ttO
150 -940
gl0 -1290
825 -1200
850*-;11F,
950 -'I&,
8OG -1060
150 -945
775-1130
150 -910
920 -1617 600 -1265
Commissioner start a t
962
!.A.
1: 10.1
H.A.
1: 10.;
i:?.8
1:lG.O
1:lO.i
1:lG.i
N,h.
H.A.
1:3.1
H.A.
i.1C.G
" - ~ - - - ~ - . - . -....
...--..
...................................................................................................................................
Annexe 38.1
16
12
30
2i
15
30
1 Praderh
g a ~of 12 ronths
chrl Prsdcsh
11t2 days 3
as iiesirad
bv DC for
their d isiricts.
29
--..
15
30
For IUD
davs f o r Offices
of Lrunichal Pradash
locdted at Heu Delhi,
Assar, Heghalara 4 Yest
&nQal.
ii1
s fears
(----------
it
On Central Pattern---------
4 "
Ii
30
1.A.
30
W.A.
18
23
la1 Pradesh
i0
CERtrdi Pattern
Hi1
1 Ldshrir
iil
ieaira: Pattern
iii1
:379 :
i.1.i. lntroduced
v.e.f. l:.3.1912
Annexe 38.3
3 Karnatrlia
15
i9
30
30 davs i.L.
ir a block o f
two r e u s .
10 Haahva Pradesh
20
11 naharashtra
24
12 naoiour
21
13 lleghala~a
la
N.A.
(----------------
13
11 Wizorai
26
#,A,
15 Orissa
21
25
15
\I Sikkii
41
W.A.
18
;a Tarilradu
20
12
t i
Rajasthan
N.A.
30
(----------------
30 dars i n a
rear on a i a i l u n t
o f kut iess than
30 davs i,i.
tears. Afirchere in
India onl) Once i n
entire service Period.
On Central Pattern-----------------
Ni 1
On Central Pattern----------------
10 drvs 30 davs I
30
30 dars E.L.
i n a block o f
tuo veafs.
3G
15 dais a t
i ~ c e r v d io f
i2 ronths I
30 d a i s
interra; o f
2 i nofithj.
i----btAllO&---i
(----Hot Allwed----;
Annexe 38.:
%.A.
12
ii
iG
%.i.
3606 ims.
i!iJit!t
after corttinuance
service for 15 ris.
EO
10 nonths
Basic Pav
33
r f s . it vrs. of
iG r r S . iif
50
2i50
450
ienwrarv
uans 1 onat 1e
serriii
i GO&
5 Gu:iarat
H.A.
33 trs.
10
rrs.
N.h.
----*---------------I
$75
iOGO
6 Hzrvana
i Hiaacha; Fradesh
;--.-----------Central Pattern I S
teino followed
------------.--------)
8 Jasau 6 l i a s h r i r
10 months
Basic Pay
vrs,
!O v r s .
Fish.
s5
375G
3 Karrtatakd
i t frs.
50 f
330
35G
33
G i u S SIl\.Rar for
S i t X W a D h e f s,
t r ~ i s t ~d.r i v e r s
i l i f t attendants
i G Hadhra Fradesh
i 1 Waharashtra
N.1.
33
ffs.
tG
vfs.
N.A.
375
ti0 LeiiirtG
10 months
Basic t NPA
33 vrs.
1G
trs.
W.k.
375
4bGb
nonths
:? t r s ,
:G rrs.
N.L.
275
3GO
1 2 Mariiour
10
Basic. s R i . 6
Personal Pal
IS Grissa
i6
gasasthan
ii S i k k m
12 lami 1oadc
i9
lrioura
l a s t Basic
Fa Y
20 Utter fradesh
2 1 West Eenilai
33 yrs.
10 mi. Proaortianate
t o ianpth o f
olral i f Ytnil
aer w 1ce
100
KO c e i l i n q
I . centre
--- .--
Annexe 38.5
vrs. or
One T h i r d of
15
t h e Pansion
73 fears
of aue
11. States
------
1 Andhra Pradesh
On6
ihird o f
i5
ii.375
16.5
15 vr5.
the Fensian
iljrcleted 6
nonth;f oeriod
or 3/16 of
3 ASS6R
Gni! Third o f
14 vrs.
the Fension
5 rrs ouai
conoleted 6
noiithir. U6rlGd
S Gusrrat
One Third of
the Pension
15
rrb.
Death
----less than
i
i rf
5 vrs.
20 rrs.
20 or hiore
2 tires of oac
6 tines of oar
ii ttnes of oar
;:2 of the Basic Fav for each iiinoleted s i r nonthlv
oeriod of ouaiifiincl service sirtieit to naxinun of
2 3 tines G a r or Rs. 1.00 iakh rhiiheref i s less.
16 Wadhva
Pradesh
11 Ilaharasktra
i-----Csntra:
Gns Third of
t h a Pension
Pattern-----;
15 rrs.
5 vrs
airall-
frinq
seiriie
Retiieaeni
111 o f l a s t
Basic Pav for
5 rears u t t a i i - each conoletad
f r i n t l service 6 conthlv Period
o f oualifvine
---_-------
Annexe 38.5
i6.5
16.5
R s , 1.00 Lakh
serv1r.e
Oeato
-----
i5 Grisaa
Annexe 38.5
Third o f
the Fension
Gni!
Death
----less than
I
5
20
5 vrs.
- 20 vrs.
or more
ir
2 ti%;,: c f oaf
6 i.iRSS o f o a r
i 2 tines of oar
i12 of the emoluments for ever\ S I R monthiv
oeriod subject to ualiaun of 35 times enolunents
orovidtd that amount of Death qratuitr i n no case
~ A C C ~iis.~ S!,GO
i6
Wasthan
One Third of
the Pension
laih.
fears of u e
whichever i s
iater
17 Sikkia
One Third ~f
15 YrS.
the Fension
16.5
16.5
comoittsd S i k
month:* Geriod
16 Taailnadu
2ne Third of
the Pension
15 t r b .
mGnth;r
19
iritrura
One Third d f
the Pensioh
iS
vrs.
GeriOd
20 Uttar Predesh
One Third o f
the Pension
vrs.
Retirement
----------
Annewe 38.5
16.5
Geath
---a
21 West Benqrl
One'Third of
the Pension
15 vfs.
less than 1 vf
1 - 5 us.
5 - 20 vrs.
20 or #ore
2 tines of D ~ ' J
6 times of oar
12 times of oav
112 o f the enolulonts for e v e n six aonthlr
oeriod subject t o maximum of 3; times emoluments
orovided that aaount of Death qratuit'J i n no case
excceds Rs, 1.GO lakh.
Retirerent
----------
16.5
Death
1. Andhra Pradesh
- Soecial wade
- Pronotion
~ ot s scale
- An add!.
inc r e me11 t in
oronot ictna 1
:ost scale
2. Assan
3. Goa
t. Gujarat
5. Kerala
I i v 1 Teachers
;a1 Secondfirr Schools
------------------
1. T.G.T.
(1400-26001
i s t oronotion a f t b r 12 vrs.
2nd ororotion a f t e r 12 vrs.
and attainnent o f oostaraduate o u a i i f i c h t i o n
2.Headmaster
i s t oronotion a f t e r 12 vrs.
Rs.2200-4GQ0
and attainnent of oost-qraduate
illra iif i c a t i o n
12000-3506;
Rs.1640-2100
Rs. 20GO-3505
iiiniteil to
20% G O S t S ;
Ib) Primarb
-------
i. Teachers
- i s t vonotion after
12 vrs.
Rs. 1453-2600
As. i64G-i9OG
(limited to
i 1200-2W 1
PGX-oosts;
Annaica 38.6
6. Haharashtra
7 . Hirirran
8 . Rajasthan
9. Sikkis
[ i )After
- One adCitionsl
inir enent i n
the form of
selection wade
(iil After 14 ~ e 8 f sincluding 6 years i n selection
wade
iiii) After 20 years of service
- Wert hiuher
prade
- One additional
increaent
(ir\
- Wert hiuher
wade
11.
West Eenqal
38 9
i kndhra Pradesh
2 krunachai Pradesh
3 Assea
4 Bihar
5 Goa
5 Glr.;arat
239.762
276.541
i Harvana
8 Hiatichai Pradesh
3 Jannu & kashnir
i0 Karnataka
Karsla
Hadhva Pradesh
Haharashtra
WaniDUf
15 Heclhalava
il
12
13
14
i 6 Wizorar
4.60
22.08
2.09
5.88
43.42
52.29
36.38
13.80
39.0i
44 62
45.76
25.43
19.802
33.25
42.06
13.08
51.281
683
632
ia.52
17.65
46.45
30.62
51.08
2i -46
30.85
11.41
34.55
49.11
34 * 25
h.4.
21.99
5.90
36.34
27.06
3i.Gi
30.51
49.18
26-77
2J.8i
ii.23
14.68
2.21
61.55
20.638
i ,059
50.3:
3.69
24.126
li,i88
2.751
i4.45
41.30
73.92
344.38
239.63
157.58
380.51
335.41
637.77 1.740.72 1.846.11
993.00 1.799.97 2.032.79
324,Gl 2,667.60 2.697.63
N.A.
26,126
1!.649
N,A.
N.A.
10.386
16.290
13.776 f
24 i i t t a r Frsdesh
25 West Benqal
19.195
42.67
134.21
115.27
1,151,266 1,462.33 4,251.57 1,730.79
112,348 206.33
427.00 419.54
859,501 2.044.2: 6.623.17 7,654.05
468.608
945.61 2.494.07 3.97i.25
26 Centre
21 Sikbii
22 i a t i i lnadu.
23 T r i o u r a
Note:
23.i7
23. i6
382
8.61i
18.658
i 7 Hacraiand
18 Orissa
19 Funjab
20 Rajasthan
2 2 . L3
52.86
3.22
48 -44
23.38
22.544 j
194 f
24.790
N.A.
15.763
26.125 t
66.98
36 * 54
55.50
3.6i
31.75
2d.iG
is,22
29.62
36.58
en
I .JO
6.99
7.i3
15.5i
N.A.
6.13
5.84
8.22
2.72
22.73
14.98
H,A.
6.14
6-13
6-71
N.A.
4.48
3.62
Pav L Aliotrances of tit: Centre includes HRA. CCA. G i A . C l i c k . Cht;drert Education allowance.
Reiab$rseient of n e l i i i a l ihaices and Tution fees, LTC. Trhvei i i n a a i ;oranCe
and other C o r m n s a t C r ~ d l i o m i e but does not include t h e e i o e n d i t u r e
incurred art oar a n d aiiawances o f enolorees of the Indian H i s s l a n s
abroad and t h a t o f I f l i o n T e r r i t o r i e s or the e m n d i t u r e incurred on
on o r o d u c t i v i t r 1 i q k e i boncsiad-hoi bonus, Honarariun and eniashment o f
earned leave.
390
I
1
I
I
I
6
3
0
uoz
W L n r O l
mco
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~
Im
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r-.
cu
cu
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I L U
m m
as-
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c1o
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an
4 .v
2
.Uu
I t-\
n
1
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lI mEl
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-- - - --
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c-
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I
39
Our o p p m c h
39 1
Our tarns of reference require us to evolve the principles \\ hich
should govan the anolumcnts and conditions of service of Central Government
employets within the wunw. Whde studying the princlpks govemlng the
emoluments, wc fclt the need for exarmrung the espcnence of other countries A
~ ~ O n I O t a M t. w nCanpansons
a l
was. therefore, framed and fomarded
to the High CommissiondAmbassndors of Inha in 27 selected countnts Only
some couatfics rtspondcd a d d m a t i o n on several issues was found 10 be
mcuipkte. WCW to nfato many journals and reports of Intanational Labour
Organisation cud Commorr-wcalth Secretariat to tie up the loose ends. We
followed this up with a visit to wuntr~eslike Malaysia,New Zealand, Canada and
U.K.to Compldeour familisrisatmn exercise
39 2
Thschaptasummarkonly the broad trends in the remuneration
offered to pubk man& a b d . The international ucpcncnct in domizing and
administrative reforms has been discussed elscr\.hcrr in the report
Tlic rupid
r-~PJsiot
riJc
public sector rnril
tltr I9SO.s
39.3
Our study of the available literature shows that by the IYhOs and
1970s. a m a p v i m in publlc sector was underway world-wide. The \vclf;lre
role cf the State had by then been recognized and taken fonn. In central and
Eastern Europe the Public Sector had come to be a basic tenet of the political
ystem. In most deyeloping economies. only Governmentscould have found the
means to c q out thc much-necdcdlarge scale projects such as public utilities.
infrastructure. industrial development. social scnic& and health carc. Thus thc
period until the I9IIOs saw a rapid cspansion in the sire ofthe work forcc in thc
Public Sector The s i a of Public Sector emplement for the period 1960-90 as pcr
an IMF stud! IS given below:-
Australia
Canada
Finland
France
1960
1980
1 on8
1989
1990
23 0
26.0
24 I
23.0
18 8
19.4
19.4
17.8
20.8
21 7
21.9
23 0
22.8
26 9
19.6
14.4
22.8
19.7
22.4
22.6
----
77
NOW?
---.---
UK
United States
14.8
14 7
23.2
21.1
15.4
25 7
20 8
14.4
27.7
19.2
---.
39 5
Eiy the late 197% however. Pubhc Sector had becane a heavy drain
on the n a u d budgets all over the world. The early 80s brought along oil shocks.
exceptionallyhigh interest rates, falling commodity pnces and a global economic
donntwn The burden on thee>rrhequers became unsustainable. Mounting foreign
debt and merest pa>-mentsbegan to cause concern Any restructuringof the debt
by the IMF and World Bank camed with 11 the obligation of reducing the size of
go\emment It was the pressure to reduce public expenditure which became
the primary stimulus for the "downsizing" exercises that have been underway
in countries like USA, UK and Malaysia
39 6
Some information regarding the size of Federal Govenunent
employees and the amount spent on the salaries and wages of Government
cniplo!*ees was also collected by us (see Annese 39.1). Bearing in mind the
caution that needs to be exercised tihile making cross-country comparisons (on
account of differing concepts and definitions). we may. on the basis of thc
~nfonnationavailable with us. broadly conclude as foilows:I)
11)
393
.Y,hI?
39 8
Most couatries have reported that allowances and other fringe
benefits are awarded to their employees in order to compensate for specific
circumstances related either to work. such as working in remote areas or
under dangerous conditions or to their personal or family situation. Others
grant allowances for specific qualifications Some de\ eloped corintnes have
reported that allownccs are offered mainly to make the public sert*:ce more
competitive While in most countries allo\vances constitute a small proportion of
pay. ID. Turk? it is observed that for high ranking civil senants. supplcnientq
remuneration makes up the largest part of the emoluments Thc lanyage bonus
and the hardshp ~!lo\vmceare both quite high and thc latter mat. even turn out to
k the largest co,nponcnt of the salary for the civd sen ants nho are worhg, in the
so calied priorin. development areas.
Real Eaniuigs
Salnrie.~in flir
puhbc servicrs
\%?-(l-\'iZ
pr,l,a,c,
llIZ
39 9
A fall in the realesmings of civil servants also appears to be
fairly universal and as per an ILO documertt. most wunmes like Argentina.
Colombia, Meslco. Pcru. Sierra Leone, Deanark. Germany. Greece. reported a fall
in tic r
d earmngs of the ci.r.11savants for the pcnod 1960- 1990 We also ok5en.e
that h e salary scales in the private sector are slightly higher than the public s t o r
in most cases ( S e e Annese 39 2) Where public senice remuneration has
&tenorated wth respect to pnvate sector remuneration. the motivation of workers
has tended to suffer. there IS a hgher rate of moonlighting and a greater dlfficulh
m recruitlng qualified ne\s \\orkers The bottom line has generall: been an erosion
IT^ the quality of public sen.^^^ That is nhy in some countries like Singapore an
attempt has been made to reverse this trend by formally bench marking the
salaries of the ministers and the civil servants to the salaries in the private
sector
( 'us/ o f L i v i ~ l ~
39.10
In thc past. the pay scales in several countries such ils Denmark.
.WrJnnrrra France. Greecc. Itat!* and United Kingdom were indexed to inflation. It seems
11 * O I At
however. that man!. countries have abandoned this ?stem in recent years The
autoniatic indexation o f w a p of police staff iu U.K is soon 10 be terminated. in
Denniark thc automatic cost of living indexation scheme was abolished in 1982
France discontinucd its quarterly adjustment of public scnicc salaries in 1980s
G e m l q . and Ital!. hwc also discontinucd this practicc In gencral. countries which
394
30 1 I
The dlspimt ratlo between the minimum and the maximum varies
behieen 1 2 66 in Sn lanka 3 140 as reported b!* Hongkong (See Annese 39 2)
Ho\\re\ler.the mmimum and nmmum levels reported by these countnes may not
be comparable with our coly tions.
Pr+nuncr
39 12
B d on air study of the existing trends, another development we
anticipate in the structure of emoluments is the movement towards increased
variable componentof pay because of the: introduction of pedomance related pay
schemes in most countnes. We obsepie a departure away from rigid public
service pay in favour of flexible pay schemes Flesible piiy schemes allow the
public sen ICCto offm more competitive sdanes as well as to feward pedonnmce
In U K for grades below the Permmmt Secretary. the system is now entuel?
perfonnancc based and there are no autoniatic annual increases of any kmd. Earlier
there used to cmst a centralizd pa! and gading system where grade wise pa!
scales w r c negotiated centrall! and \\ere uniform across departments Now there
exists a q stem of delegated pay and giadiiig Under this system the individual
Permanent Secretary controls the pay progression of his staff taking into account
ptrfomiance. le\el of responsibilityand maketabilir? of skilIs There is a uniform
pay range for all Pcnnanenl Secretanes inciuding the Head of Home Civil Senice.
honever The level and extent of the rinse of pa! of the Permanent Sect&is
detemiiiicd on the basis ofthe advice of thc Senior Salarics Revie\\ Bod\. made up
of thrw outside members The heads of Home Ci\ 11 Service and Treasup. though
nicnibers of thc remuneration committee. do not pla?.a par! in determining their
onn pa\ Australia and Canada ha\e also introduced performancc related pa\
scheiiics \lala> sia has introduced a performance related remuneration scheme in
1992. callcd the New Remuneration System (NRS). which provides for salan
progrcssion based on mdidual petfomance differentials Four different hpes of
salap progressions have been ifitrodwed under this scheme - diagonal. vertical.
hor17ontaland static With the introduction of NRS the salaq progression of a
cnil scnaiit is no longer automatic as in the past Those who produce
unsatisfactoc nark remain static and do not recei\ e an! increment. those \\ ho are
satisfacton gct a honzontal increment. those nho are good get a vertical salan
progression and those who are evcellent get a diagonal progession. New Zealand
also introduced performancc based pa! on a widespread basis in 1988 Net\
Zealand used to have a system in ~ h i c hlife time Civil Senants \\orked as
admmistrators exautmg g o \ m c n t policies The hat e no\\ moved to a structure
related pay
39 16
There s a need, m our opinion. to have a mntmuous update 0x1 our
i n f d o n about what 1s happenrng to the bureaucracies of other countnes It is
imperative that we join hands with organisations like the ILO and the
Common-wealth Secretariat to generate information about the major trends
For thls purpose. the Dcpartmmtof Personnel may bnng out an annual publication
on Public Services in India. summarizmg the broad trends. and encourage other
countries to do the same Exchange of information through our diplomatic
missions abroad should also be done on a regular basis
Annexe 39.1
2. Canada
3. France
4 . Sweden
2.26
1.5
<--------------2.60
N.A.
0.77
<--- not reported---->
not reported----------------2-98 (---not reported---->
*
5. China
6. Hongkong
90.00
1.97
7. Indonesia
45. OO
Japan
8.39
9. Malaysia
8.80
4.30
*
N.A.
0.75
6.6
3.20
<---not reweed---->
L-
19.0
1990-91)
2.50
3.0
(1990-91)
N.A.
N.A.
<---not reported---->
12.9
4.60
11.8
(1995)
(1995)
<--- calculated--->
N.A.
2.47
60.0
(total
revenue 1
**
40.6
not reported
11. Thailand
15-0
N.A.
2-50
18.9
4.8
5.33
N.A.
N.A.
N.A.
N.A.
13. India
38.9
1.2
0.46
13.6
2.1
**
***
***
1, Australia
2 , Canada
Large
Nos.
:art16
Nos.
The Austa-
1 : 7.66
l i 8 n Public i i 1 . 3 1
Senice
ooerates
H i t h i n the
Federal
lndus tr i a 1
Relations
Svsten and
neqotiation6
are heid
between
Govt. 4 'irade
Unions.
lio foraai
;inksqe
but an
1 n f or na i
relativitv
i s Maint a ined
No d i r e c t ;ink
betwean l u s t r a l Ian
Pubilc Service cat
increases and cost
of iivine.
Collective 1 : 3.15
No formal
Erceot oost o f f i c e
baraa i n ine f 31.10.91 I 1inkaoe
eM1ovees. none
but r e l a t i - of the eaolovees
between
vitv
salaries orotected
enolover &
rith Private b;r cost o f l i v i n i l
euo lo fee
T i 1 1 suaier
Sector i s
allomce.
maintained
o f 1337
co 1 1e i t 1ve
Howe~er
barqa i n inii
oubl i c
banned.
salaries are
deliberatel!
Instead.
incraje i n
keot SI l o h t l v
locer tnah
ta4es
r est r 1c tad
the Private
Sector.
t o 3X o w
7 2 months.
39 8
Not
erei~ted
fi;z
iilcme
iat..
Not
ewamoted
from
Income
Tar.
Annexe 33.2
1. Sweden
No f i x e d
D ~ Ysca-
les. Ebch
eaDl 3v in4
aqen:v
based on
its
reoui renent cbn
hira
OeODie.
5 . China
i 2 qrades
riih
51 i ar ias
ranqinir
from
iis S i 8 . 3
to SiJb.6
Rav ised
throuqh
neqot ia tions
between
Associations
of emolovers
and emoloveef.
rarious
factors
iike
i n f 1a t ion.
Economic
conditions
eic.
considered.
not. reoorted
1 :4
Yes, Govt.
servants
srlaries
rdiusted
tr, market
:eve Is.
i :a
i 19931
r!at
rzoarted
39 9
i o u i ~ a l e n tof DA
doesn t exist.
Cask of l i v i n q
index i n d i r e c t l v
constitgte MI
iaoor tant f ac t o r
for n e w t i a t inq
h i Q her incr enan t
i n danes.
Mot
Inflation
ad.justment
i s aiihoi
arid i s oaid i n
the f o r t o f
i l i 61 iorance.
Not
ekeno ted
from
income
Tax
exemtad
from
Income
Tar.
Annexe 33.2
6. Honakonr
455
wades
i250
ranks
or job
ieveis
oav scales for
d i ff ereG
4rOUDS.
(unified
tivil
Service
comn
aooo in t
rent
orocedure
disciol inrrv code
rnd
condit ion8
of
service)
Revised
on the
basis O f
the
f indinos
o f the
annual
survev
conducted
on the
erol ulents
rdrissible
i n the
Pr ivrte.
Sector.
Othar
1:10
119951
Linkaqe i s
recoqnised
Increase i n the
cost of
fornallv and livinq i s
ouatification an iroortant
benchrarkina considefat ion
but not f u l l
exists.
cowensat ion
i s qiven.
Not eeeaot
f ron
salarv
tax.
ftCtOf8
like
cconeric
conditions
BUd!l&rV
constrrints.
cost o f
l i v i n e etc.
:ons idered
7. Indonesia
1 qrouos
of oav
scales
varvinq
with the
lenqth of
service.
Not
automatic.
Revision
done
throuqh
oresidenthl
decree
and 6avt.
reeulations.
1:6.9
I19951
No linkaqe
but Davsca 1es
in the
Private
Sector are
hiqher a t
the hiqher
levels
and lower
a t the
li(ssenwr
levei
No rllowrnce
to coroenfata
erosion i n real
income or oaf.
6overnaent
eao 1ovees
oav incone
tar
notiona 11v,
Govt. oavs
income t a k .
i n lieu.
which i s
15% of
salarv
irresoect ive
of ranqe;
amount
of inioae.
Annews 39.2
a. Jaoan
larw
For o f f i c e r s Can't be
Nos. i no
NPA lakes
fixed oar'
scales)
9. Ha;avsie
11
BY o ~ e c i r l
Officer
level
scales
cabinet
c m i t tfi
every 3 vrs.
but not
autwtic.
9 salar,
Revised bv
a oerlanent
salarv
cadre
cowittee.
A t t i w s bv
Hiqk Powr
CoHit tees.
scales.
uniform
across
a l1
the 3
ser ViCBS
NPA
calcujated attenots
recowoni n Jaoanese t o brinq
NFI salarv
dations
Govt.
a t oar riith
and for
-i
ndust r ia1
-PL;t .Sector
Iroiicit
staff i n
relationshio
Govt. enterorises
betueen
through
Govt. t Fvt.
collective
Sector salarv
scales.
barpa hinq.
1 : 3
1:2.66
Ratio
between
Sac r et a r v
and entrr
level of
officers
salaries o f
National Public
Inolovees revised
t o offset
increasi i n
cost of
l i v i n q index.
exerot
from
incole
tax.
HO
COLA has been
relationshit donh LWIV with.
not
ererot
froa
inconr
tax.
no fcraat
COLA e r i s t s but
rehtionshio exists.
Pvt.Sector
i s oaid
t r i c e as
ruch that
i n the Gov!.
not linked t o
COlI. It i s at
discretion of.
Govt. t o sanction
cost of i i v i n a
allJrance.
Ertroted
fror
Income
tax
since
1911
Annexo 39.2
1 1 Thai land
oav
On the
rsconren124 stsosl dations
Generso f the
l i s t and
Civil
SoeciaService
1i s t s
Coiriss ion
6eaded b y
and too
ranacleaerit P. W. /DeDut i
Qrouos are P.W.
civen soae
additional
allowances.
11
scale6
1 :9
Inforral
relatiritf
uit!! the
Pr ivate
Sector i s
uintained.
No aalrivalent o f
DA i n Thailand.
Infact, salaries
o f C i v i i Servants
are refised
f r eauent 1v
t o take care o f
increase i n the
cost of l i v i n q .
Basic
salarr
and most
of the
al lowances
subjected
t o incoae
tax .Hor;ever,
certain
a1 louances
l i k e MA.
TA, Children
Education
A 1lowtnce
etc. are not
taxed.
11 India
:402:
Tenm <g
mJkmlce.
40 1
We have bam immcted in our Terms of Reference to "evolve the
pnnciples which should govun the structure of emoluments a d those d t i o n s
of service.of Central Government employees which have a h m c i a l bearing".
Earlier Pay Commissionshave also grappled with k s subject. with varying results.
It is not our intention to traverse the same ground. We would cinly draw attention
to some emerging trends and the impact it has had on our thinking. while taking
decisions on pay determination
.Uexo-rrctid*
40 2
a)
b)
c)
403
d)
e)
f,
.\ /<J'/I/ii''/
prlllc f l J k ' 4
IZC
e.3
wri
40 3
Vieivcd in thc light of tlic aho\.c iiicga-trcnds. thc application of
the princip!cs of pa\ dcleniiiiiatioii as cnunciated by the previous CPCs \ \ i l l
iindcrgo suitable nioditications We hat c tricd to do so i n thc nianner dcscribt:d
hcrcaficr
40 4
l l f ~ ~ l \WfI,.\.\
Il.~f
40.5
.A Nppitt.d t r )
n 1%
40 6
1\
qqI/l',l/
t~l'/l'>l<
1'
/<,
I! I1 \ I l l 1
~ ~ ~ w p r e h e P , ; h l / l i lJ()
Iti~~1/"0'~
a)
b)
d)
.\ f i i i i i n i i r n t i r i d
\ fnnrriicirr If i z p .
40 1 I
On the other hand. there are hIgh-nagc alands like those of airline
pilots who command a vev. high price due to supply and demand considerations
\Ye ha\ e taken these into account \\ hilc deciding upoii the total packages for BSF
pilots or the pilots of fighter aircraft in the Indian Air Force. although we ha\ e not
been able to take these an!i\here near \\hat is being offered in the privatc sector
12
On both the niininiuni and mawmum tiage. \\e ha\e tried to
c \ o l \ e other more humane. rational and realistic criteria and these ha\e been
c\plained at great length in the relei ant chapters
J()
1j
As a principle. the equal pa! for equal work' criterion has been
used ividei! b!. the higher C O U ~ S Incidcntall!.. it ma! be mentioned that the
Canadian Human h g h t s Act has furthcr amplified the concept to include "equal
\\ages for equal 1 alue of \\ark" Theorcticall!. n o t h q can be said against it In
practice. it is estremel!. difficult to define \\hat equal work is
J()
40 I 4
.Jnh Etnlirotioti
Rr/tifivitir.\
40. 15
Milch more intractable are the questions of horizontal relativities
between sa!. a forest guard. a Constable of a central police organisation. an cum!'
soldier and a shlled artisan. There is a lot of histon, in each equation and each lack
of equation. We have had to take the bull by the horns in such cases and a m \ x at
certain conclusions based on our Senera1 csperience. For example. we ha\c
equated Forest guards to the Constables of CPOs. but we have maintained the
differentials behveen the CPO Coristablc. the Arni!. soldier and the Skilled artisan
\ l i i i i \ t ~ v - t t t /~ r r r t l
. - I r t i w i i 1 rir/rc,\
I (,
There tvas a c c m narpcd relati\.ih betueen the ministerial and
artisan cadres Whilc thc LDC (Rs0 5 0 - 1 C O O ) \\as promoted to l!DC (Rs 12002040) and then to Assistant (Rs 1400-.??00). the skilled artisan (Rs 950-1500)
rosc to Highl! Shlled I1 (Rs I200-1XOO) then to Highly Skilled I (Rs 1320-2040)
and then to master craftsman (Rs 1400-2?00) Wc nicrged the scales of Rs 12002040. Rs 1200-1XOO and Rs 1320-2040 to a m i e at a single scale of Rs 1320-2040
Oiic rung out of the t\\o Highh Skilled categorics \\as made to disappear This
has pro\.idcd somc relief' to the artisan catccop
f()
Qunlijicariotihnsr d p q v scales
40 17
We are suggesting m a later chapter that there should be a
permanent pay body. so that it can keep on studyng the parameters o f different
jobs and develop more objective cnteria for job evaluation than are available at
present Although it IS not ven. scientific or conclusive. we felt that as a
FAIR C O M P A R I S O N
40 18
We have used "fair comparison" to a large extent in our
deliberations I n almost every discussion, we have tried to make comparisons
40 i9
As a general obsmatm it \ v d d be weful to point out that while
the Central Government's pay scales used to be. once upon a time. the leading pay
scales. it is no longer so Banks. PSUs and the private sector ha\re marched ahead.
for obvious reasons But that even the cash-strapped State Governments should
pay their employees more is surpnsing. The Junior Engineers have given a
comparat,ve statement of pay scales granted to Junior Engineers by the vanobs
State Govcmnients. the State Government scales seem to be higher Same is m e
of the police personnel. Even the Provincial Civil S m i c e Ofticers now have higher
pay scales than IAS Officers, with the result that their adjucMneilt on promotion IS
becoming a problem
A
40.20
What this means is that the Central Government has been
somewhat consemi-tive in granting pay increases. This shows that the control of
the Minis- of F:nance over pay scales is quite stringent That tlus is so is also
exhibited by the tight control exercised on the sanction of posts The Central
Government has witnessed a compound growth rate of just I% per year in its
civilian posts
There are two conclusions to be d r m n from this First. it is
40 21
necessan for the Central Government not onl? to control but even to reduce
numbers Onl? thc requisite poliucal and admuustrative I\ 111 is required Secondl! the Ministn of Finance being so conservative during the decade mtenening
behseen thc Pa! Conunissions. a greater responsibility devolves upon any Pay
Commission to be reasonable and pragmatic, and try to bridge the widening
gap betwwn the compensation packages of the Central Government and the
rest of the ecmomy. We hope that we ha\e perfomid our tasb \iell
-107
I MODELEMPLOYER I
40 23
As stated above. the Central Go\~emiiien~
is no\\ neither the model
employer not a g d employer With its burgconing budgctac' de!icrt. the on]!
hope of the Central Govcmnient bccoming a good eniplo!er IS for it to right size
the burcaucmcy fitst and then pa!. it adcqratel!
FUR
40.24
pjh
L)c4itihi,ig pay
Iron1 positif>Il
Irl\trcr t o
<Ill
[ 'ctitnil
( l o ) cnitmvit
m p / m t'I'\
40 25
The first is the "intrinsic value of a job". This is a sunmiation
of d the factors that one can t h d of in relation 10 n job - the skills. thc
arduousness. the uoib atmosphere, the qualification. thc rccniitment procedurc. thc
c h m of career progession. the status. the securih . the prestige. the perquisites c\ enthing that is quantifiable and non-quantifiable
40.26
The second is tP? need to link smaller entities to larger
entities. Our attempt throughout has been to collect isolated posts and place ti .II
in a cadre. pick up cadres and put them in a senice. We ha1.e suggested new All
In&a Senices for nidcal and engmeering fields and Central Senices in the fields
of veterinary science. agnculture. informatics. shipping. archaeoloh?. archives.
libray and so on.
40.27
The third is the need to delink pay from position in the
hierarchy. The entire schcme of Assured Career Progression is about granting ii
person pa!- upgradation. when functional considerations do not permit his risc i n
the herarcliy. He continues to perfomi the same job as before but moves into the
next higher scale. The idea here is the basic one that a pcrson needs more money
as he becomes older. but he ma!. not receive a promotion because there is no I zed
for another post III the herarch!.. Our effort is 10 rclie\.c stagnation \sithout unduly
upsetting the hierarchy
40 2x
The fourth is that we have recognised the need to be evenhanded in justice towards the lowest and the highest-paid functionaries. For
the entrant to Group D, \\e have gn en a junip of'3 75 tiiiics. much more than \\hat
our consultants had suggested For the higher cadrcs \\c hats introduced thc
concepts 01' full neulralisatioiiof cost of 111 ing and gi\ 1112alloitanccs and pensions
nct of UICOII~L'ta\ so that tha reccnc the full compensation pacbage as dscidcd b\
us. \\ithout its being dcciniated b\ inflation or ta\ polic\
l j < l l l l I Oil
crllr I U t l ) l ( ;'\
( ~ l / l ~ l L l // If ! / M l l
40 29
With regard to allowances, our policy has been to recognise
that these should either reimburse in full the expenses incurred by the
employee (as in the case of travelling allowance, daily allowance or medical
reimbursement), or the reimbursement is more liberal than at present (as in
thc case of housc rent allo\\ancc or city compensaton allouruicc). or the
compensation for loss incurred i s raised substantially so as to niatch the loss
(asin thc case ol'blon- Practising Allouance) In some cascs. \\c,ha\t. bceii forccd
to sanction nc\\ allcnnnces like transport allowance (in kicu of the him?
expenditure tncurrcd on cotiiiiititatton bebyeen office and rcsidcncc). attcndant
allonance ( i n \ icu of ~Iicfact that large number of officers ha\e orderlies and
batmen and on]! a fcn do not) or cntertainment allowance (in vicu of thc fact that
oflicers partahc ot'dinncrs \\ tth other people and should be in a position to return
the hospitalit! )
40 30
Above all. we have always kept the capacity of Government
to pay uppermost in our mind. The financial implication of cach demand was
calculated In detail and decisions to accept. not accept or only partially accept a
proposition depended largel! on the expenditure they involved We are happ!. that
n e hi?v\lgbeen able to accommodate some of the demands of the employees without
unduly inflating the pa! bill of the Government. I n the final analysis, we shall
consider our efforts worthwhile only ifwe have succeeded in maintaining a
balance between the interests o f the Government and the interests of the
employees.
409
1. 1
When u c come to the nuts and bolts of dcterniination of pay
scalEs i n Go\knnicnt. u e realize that thc lirst cxsrc:sc IS soinshow to fix the tivo
ends of the spectrum. Once \ve arrive at [he minimum and maximum salaries on
the basis of rational and pragmatic criteria. I t becomes rclati\.el!. simple to deduce
the scalcs \ihich fall in between. We. therefore. s t m our aial\.sis by considering
the \arious parameters that ought to be kcpt in \.ie\\ \\-hi:e fixing the minimum
salan
Ow t i ~ ~ p r o ~ i ~ . I i4
41 2
Although m the contest of the Go\ emnient it is more relevant to
speak ui tcrnis of m m u m salaries, much of thc literature deals with the concept
of m m i u i n !\.ages We may. thersfore. take these temis as broadly synon>mous
for the purpose of our general understanding
41 3
B!. 1938. legislation on niiiiiinuin \\,ascs \\as firml! in place in
most couiitrics like Australia ( 1896). Ne\\ Zealand ( 1x94). Great Britain ( 1909)
and USA { 1938) The evolution of mininiuni uagc legislation in India. can.
hone\ er. bc traced back to the Minimuni Wages Act of 1948 The Minimum
W a g s Act aims at preventing exploitation of \\orhers in scheduled employments
b!, f w i g niiimum rates of \\ages The covcragc of the act IS selective. as it aims
at protccting uorkers m m l > rn the unorganised industrics The Act empoijers the
Got enunent to add to the list of emplo>ments % I \ cn i n the schedule and prescribcs
that tlic miiirmuni wage should consist of basic and 1ar:able elements ( n i t 1 1 or
nithout IinLagc to the cost of In ing) Whal thc Act docs not comment on I S \\ha!
should go into the deterniination ofniiiiiiiitiiii \\ ages
410
Article 43 of the
Cotrstirurion
4 1.4
The role of the State in securing a living wage was rccognised in
the Anicle 43 ic the Constitution of India, under the Directive Principles of State
Policy which rcadr; as follows.
41 5
(b)
(c)
(d)
(c)
41.6
In 1968. a few more critaia for detemkation of Minimum Wages
came to bc recopnised when the Internztional Labour Organisation listed thre
critena for fixing miriniuni wages. These were (I) the needs of thc worker. (li) the
capacity to pa\. of the employer and (iii) wagis paid for comparable \\ark. In 1969.
the capacih to pa\. ivas explicitly admitted as a relevant factor b!. the National
Conmission on Labour. \\hen it held that in fising thc necd-based minimum w g e .
the capacit\- to pa!' should be explicitly taken into account.
Strprenrr ( 'ortrt
41 7
In 199 1. the Supreme Court in a judgement i n the case of
Reprcrkoc.,Rrm and I b VL"SI~.S olhers oplned that the criteria recommended by the
Indian Labour Conference 1057 nLu' not suffice It held that an additional
component for children's education. medical requirenicnts. recrcation including
fzjtwaldceremomcs and provisions for old age and marriage should constitute 2%
of minimum uagcs
frrrfSt.ntL"tr1991
41 I
productivity and the appropriate Government under Minimum Wages Act may fix
piece rate wagcs wherever feasible.
ILO
11 9931
41.9
The Indian Labour Conference in its Thirtieth Session in
September. I992 opined that while thc tendenc! to fis minimum wages at
unrcalistically high levels must be checked. implenientation of w g e s once fixed
must be ensured. It felt that the implcmciitatioii machinen.. consisting of labour
administration in the States. had bccn far froin cffccti\.c It ivas dcsirable that I?
grcatcr role \\as pla\.ed by \yorkcrs' organisations. iioii-~c~\~criiiiiciital
t-oluntan.
organisations ctc. instead of enlarging thc arm!. of inspectors for this purpose
~-~~~
~~~
41 I 1
(11)
(ill)
(I\)
(1
(1 1)
41.12
The decision of the previous Pa!, Commissions on minimum
wages \\as often determined by sonic land of a hamionization behveen the first t\vo
i.c. the need-based approach and the capacit!. to pa!: approach. This \\.as essential
because a niinimuni \\age which \sas found to be sociall?, desirable \\'as not
nmssmly economically feasible. Job e\.aluation and iiicasurement of producti\.it!
was not found to be feasible by the earlier Pa!. Coiniiiissioiis and fair coiiiparisons
\i.ith the public and private sector \verc also not coiiccdcd b!, them. Regarding
Iivmg wages thq. obscn.cd that a Iiiing \\age i t as n dcsirablc Ic\cl tot\wds n.hich
the Statc must endeavour to reach. The concept ho\\e\ cr IS inhcrcntl!. clusiye. f'or
it ad\mccs \\it11 the prospent) of the ecoiioni!. or Statc It ma!. bc of sonic intcrcst
to note ho\\. !he different Pa!. Commissions ha1.c addrcsscd the problem so far
The First CPC obscncd "The t h e o n dial Statc should DC ;I iiiod~.\
eiiiplo\ cr rcqiiircs that a Go\ crnrncnt \ \ l i d 1 propo\c> to sponsor minimum \\ 'ig~.
lugislation for pri\ ate industn niust bc read\ to 211c the bcncfit of that principlc
to its w i i ciiiplo!ccs
The application of i i i i i i i i 1 i u i i i \\,igc rulc has a h a \ s b w i
izcoyiiscd to bc sub lcct Lo the limitations iniposcd b\ thc general cconoim
41 13
Among the Mcmbers of the Commission. opinion is not unanimous on the point.
After sonie discussion, majorit? of the members agreed that Rs 55 per mensem
(made up of Rs 30 as basic s a l q . and Rs 25 as dcamess allosvance) would be a fair
minimum \\ age "
The Second CPC \\as required to make its rccomniendations on
minimum wages in the backdrop of the Fifteenth Indian Labour Confcrence .A
consensus had b! then e\.ol\ed on the need-based norms for determining the
niininiuni \\ages Rcgarding the figm of Rs 125 arrncd at on the basis of thc
noms prescnbcd at the ILC. the Second Pa\ Conutussion obsen cd " This uould
be about 70 to 80 per ccnt higher than the rates Sciierall\ pretailing in the
orgarused sector atid ti \ \ o d d be \\ell abo\e the highest \\ages i e Rs 1 12 then in
We ha\c considcrcd i f a niininiiiiii
thc cotton tcwlcs iiidiJstn in Boiiiba\
reniuncration of tliis \l/c IS '11 311 fcasiblc at the prcsciit Ic\ cl of o u r ccoiioniic
dcielopnicnf The ni1ninium I\ agcs cannot be ofthe ordcr of Rs I li nhcn on the
basis of National Income the a\era_re for a farnil\ \\3rhs out onh to
Rs 97 nunmium rciiiuncration pa\ able to a Central Go\cmnicnt ciiiplm cc \\hich
at present IS Rs 7 5 pcr month shculd bc incrcascd to Rs XO
41 14
"
41 15 The Third CPC' also based its approach on the 15th Indian Labour
Conference nomiis and calculatcd niininiuni \\ages at Rs 3 I4 pcr month This.
when compared to thc thcn ewsting cniolurnents of Rs 170. \.\auld ha\ c meant an
mcrease of 80-90 % The inininiuni s d i q in pri\ atc scctor rangcd from Rs 170 to
Rs 385 Ho\\e\er. the Third CPC did not accept coniparisons \\it11 thc prnate
sector As thcrc custcd a iicws k t v c c n the pnvate and public sector salarics. the!
did not accept cooiparisoiis \\ i t h the public sector either The\, relcctcd the Indian
Labour Confcrencc iioniis on tlie gound that Central Co\crnmcnt cniplo\ ecs could
not be treated as a speciall! pri\ ileged section ofthe coinmunit> and guaranteed a
need-based m n : u n i uage as per the Indian Labour Conference norms. when the
barest essentials could not be provided to nullions of their less fortunate
compatriots The Third CPC calculated minimum wages at k;I96 based on
modifications of Indian Labour Conference norms as suggested b! lnstltute of
Applied Manpower Research in 1968. but recommended Rs I85 as minimum
wages
The! felt that Rs 196 was an overestimate
Houcvcr. at the
Implementation stagc. a m u m u r n wage of Rs 196 actuall!. c a m into effect.
4 1 16 The Fourth CPC obscn ed that the State as a model ciiiplo\ cr \\ as elpccred
to move MI the drection indicated b? Article 43 tonards a In ing \ \ agc and a decent
standard of It\ ing The! \\we content \\ ith the State being a "good" cniplo\ cr as
against a "niodcl" ciiiplo!cr and f i x d the minimum s a l a n at Rs 7 5 0 / - The
methodolog for arm ins at this figure was not outlined ho\\c\cr
1111
riww
'"m~
'IJ
111
'I"
~ ~ l l f ~ 1 / l l l l r l * 1111
l l \ llIC
1, 11,
,,\I
I,*\ ,#I
4 1 17
Thc niiiiiniuni salaries fixed by the earlier Pa! Coiiiiiiissions and
the trend in cniolunicnts rccciicd at the loiter level at diffcrcnt periods in time arc
summariscd
in
1948
1949
I St
CPC
Index
88
I00
1973
1960
2nd
CPC
3rd
CPC
99
130
1986
4th
CPC
15.:
1988
1990
1991
152
I S
150
1991
152
1996
15:
ot'real
carniiigs
real.ternis to the estent of 53 per cent This h been done as il nicasurc of'
delibcrarc polic!. in order to raise the s!andard of living of the lo\vcst paid
cml;lo>res and to bridge the gulf betlvecn lo\\est and highest salaries
1-
I PRESENT SITUATION
41 20
Besides a miniinum of Rs 750/- in terms of basic salar) ~ I - I
employee at the e n t c ievel IS entitled to Dearness Allowance of Rs 1 1 10. (as on
1 1 1996) House Rent Allowance of Rs 150. Cih Compensatory Allou ance of
Rs 30. a monthly bonus of Rs.155 p m and ttio interim reliefs of Rs 100 each
Some employees also get an overtime allot\ ilnce over and abob e this
In$itmation
collected by 4s
.\K
hl/~r~lolloll
.mhrittitfrdhi. fhr
.N .\ I
41.21
41.23
Anncsc-4 1.3 is a tablc subnutted by the staff side of the National
JCM. From tlus it is obsend that the range of emoluments varies from Rs.2254
as paid by ONGC at the lowest l e d to Rs.2977 as paid by Daniodar Valley
Corpmatm at the highest level. The average has been calculated as Rs.2400 and
the difference vis a vis the Central Government has bcen.calculated as Rs.870.
The Staff Side !lave also brought to our notice the increase in
\vages of public sector umkcrs effective froni 1.1.199l/I992.\vhic!i is in the
neighburhood of 1%) approsimatel>s.Coupled with the addition of industrial
D.A. u Rs.2 per point for the increase of 270 points in the AICPl between
I. 1.1994and I . 1.1996. the have \ v d d out the o\#all sap between the minimum
emoluments in the public sector and the Govenunent at Rs.1240 p.m. as on
i.1.1996.
41 24
l//IlrdrOh l / L e J l '
f:t~l/>l~lv~~l~\
( ~ ~ I I / c ! d i 'Jl/ l f l l I
4 1 29
for the purposc of computation of the minmuni \vase should be assumed to consist
or5 consuniption wts Th~sfigure is based on the findings of a sunfeyconducted
by Dr S Subramaniam. an eminent statistician. The Sangh has computed the
minimum bait pay of Rs.2600 at the AICPI of I302 (Base 1960=100) for the
IOU cst functionaq
4 1 j()
All India Rail\\ a!. Emplo!.ees Confederation ha\ e also demanded
that a fanul! should bc taken 10consist ot fivc nxnibcrs Tlic Coiimission should
detmilnc il nccd-bascd nimiiiiuni \\age and inco'pa ate changcs i n thc food habits
noticed 0;er tlic tears It should include iion-t cgetanan IICillS i n tlic drct ~ h i c h
H%T~
left out by th,: Third CPC The! ha\ e denlanded a minimum basic pay of
Rs.2SW as on September, 1993 for the lonest fuiictioiian
4I I
i ~ . ~ / > l ~ c t ~11,s
l l l f ~ l l . ~, j
P ' ~ . ~ ~ ( * ~ Council
~ ' ~ ' ~the
~
41.32
A l a r g number of memorandists have desired that the concept of
"living wage" should be made the basis for fixing the niiiiinium salarics
rile,vrc stU+ 4 1 3 3
(a)
Here the underl? ing assumption is that as thc a\ erage per capita
N N P represents the In ing standard of a t>pical Indian. the
niinimum salaq pa? able to a Central Go\*cmmentemployee at
rhc louest l a e l should not be louer Prolections of per capital
NNP haye been made on the basis of post trends for famil! sizcs
01'3. 3 5 and 4 units
(b)
(c)
~ - ~ u l . ~ l 'R
l lil~t b r r l l u
(d)
litcome Method
lfc'cl!
fIJ<':;Jlk''
( 'rlfCrllJJ:
'
NPC has cstmiated that the real per capita incomc gel\ by about
211% iiuniig the p o d 1986-87 to 1995-96 This has been taken
as h e compcnsauon factor for the fixation of the minimum salnn.
under the Re!ative Real Income Cnterion
( *f~ll.*l4~llplI,
MI
stmihrdc 'hosed
011
\:v.s
(e)
(f)
(8)
i-lSIlt
Horctrdt
c *f>ll.~llI~lpl;~>ll
Vonm~
~<.JllSlll?l~~lOlt
.YIWI
OII
J:trA h u s d
Ptm*r& L~IIL,
.\~JrtIl\
( *ll~l\lllll/,lloll
\ttiiidtrrd\
OII
hard
('don*
Iiiittke
Yorm\
(1)
\ l c l l f f ~ l l c f ~ \c # i / J A
hcc reel t i c 1
,lcf/crcii/
41
.;s
fll'~ll~/~~l~
SI
\O
C ri teri a
r.amil\
Sl/C
Ln~pcci1ic.d
s1
Fnrnily S i x
Adult
C'onsurn~tionUrns
-3
35
4
Criteria
No
3.
Unspccr fied
Con1mrable Wages
(bj
(11)
The Government's role as a model or enlightened employer is selfevident and does not need to be proved The fact that therc has been a
53% increase in the real earning of a peon in the last 77 ?ears with 1949
as base is a clear indication of Government poliq The reduction of the
post-ta. minimum-maximum ratio from the pre- 1947 level of I . 4 I to I
. 6 111 1996 is positive proof of Goi.emment's intentions ,The fact that the
lowv~err.himentsin Go\emnient are noticeably tugher than the poverty
line. the minimum \\aye. the agricultural \\age. the lo\\est szlaries in the
private sector. or the salanes based on consumption norms as uorked out
by the NPC is a i s a~ pointer in the same'direction
(iv)
41 38
CONCLUSION
4 1.39
Taking into acwuiit thc espectations of thc ciiipIo!ccs. tlic amount
suggested by us may appear 19 be sonnvhat madequate. However. we have to take
the Government's capacit!, to pa!* into account while making our rcconimendakions.
Group D employees constitute 41% of the total work forcc in the Centrid
Government. It is well know !hat any increase in the basic pa!. of thz lowest
functionaries has il ripplc etTcct on the entire s a l q structure. A rough estimate
shows that an mcrcasc or Rs 100 in the minimum basic pay involves a massive
overall financial implication of around Rs.1000 crores. It would. therefore. be
correct to say that even if thz employees had a good case for a further increase in
their emolumpus. the govcnuiient could ill afford the same. Association leaders
should also weigh and consider the complete package o f benefits that have
been recommended by this Commission. Consideration of just the minimum
salay out of context would not be a fair approach to the problem.
Annexe 4 1 . 1
Minimum Wage f o r Lowest Unskilled Worker at Recruitment
Level in Different Public Sector gndertakings as on
1.1.1995
6.
7-.
8.
9.
10.
11.
i2.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
424
2,743
2,702
2,581
2,?35
2,694
1 744
2,810
2,723
2 764
2,714
2,640
2,460
2,729
2,823
2,902
1 ,907
2,370
2,761
2,761
2,509
2,581
2,511
Annexe 41.2
P a y S c a l e s of lowest F u n c t i o n a r i e s a n d S a l a r y a t t h e Minimum
of t h e S c a l e f o r s e l e c t e d P u b l i c S e c t o r U n d e r t a k i n g s
Feriro S c a r p N i g a m L t d .
Garden Reach S h i p B u i l d e r s & E n g i n e e r s L t d .
Dredging C o r p o r a t i o n o f India L t d .
Engfineers I n d i a L t d .
Manganese Ore I n d i a L t a .
1350-1680
1100-1490
1320-1750
2100-3020
1060-1507
2,763.50
2,639.70
2,649.00
2,.810.00
2,400.00
6.
7.
8.
9.
10.
B h a r a t - Aluminium C o . L t d .
India A d d i t i e s L t d .
B h a r a t Heavy-Electricals Ltd.
I n d i a n Railway C o n s t r u c t i o n Corpn. L t d .
M i c a T r a d i n g C o r p o r a t i o n of I n d i a L t d .
1350-1650
1075-1305
1096-1487
650- 905
1350-1615
2,714.00
2,468.70
2,758.60
2,0S3.70
2,761.00
11.
i2.
13.
14.
15.
L i f e I n s u r a n c e C o r p o r a t i o n of I n d i a L t d .
Bongaigaon R e f i n e r y And P e t r o c h e m i c a l s L t d .
NatjLonal S e e d s C o r p o r a x i o n L t d .
P r o I j e c t & E q u i p m e n t Corporation L t d .
National Textiles Corporation L t d .
815-1520
1040-1665
1035-1345
1100-1170
1 ,9G7.00
2,702.50
2 , 580.30
2,511.30
1 ,605.00
16.
17.
18.
19.
20.
Bhairat Y a n t r a N i g a m L t d .
Cement C o r p o r a t i o n o f I n d i a L t d .
Hindustan Aeronagti cs L t d .
Hindustan S a l t L t d .
Hindustan Shipyard Ltd.
1112-1412
1035-1345
1880
750- 950
1400-1760
2,743.0.0
,580.60
,540.00
1,888 .OO
2,822.70
21.
22.
23.
24.
25.
Food C o r p o r a t i o n o f I n d i a L t d .
Instrumentation Ltd.
H i n d u s t a n F e r t i l i z e r Corporation L t d .
I n d i a n T e l e p h o n e I n d u s t r i e s Ltd.
Bhaxat E l e c t r o n i c s Ltd.
800- 1150
1107-1507
1100-1400
2100
1880
1 ,800.00
2,833.10.
2,729.30
2,902.00
2,592.00
26.
27.
Nati.ona1 I n d u s t r i a l Development C o r p o r a t i o n
1065-1415
Andaman & Nicobar I s l a n d s F o r e s t s & P l a n t a t i o n 1035-1345
Corporation L t d .
1.
2.
3.
4.
5.
Note:
S a l a r y i n c l u d e s P a y , Average F i x e d DA a n d V a r i a b l e DA
:4 2 5 :
2 ,509.00
2,580.30
Annexe 41.3
Minimum Wages for lowest unskilled worker at
Recruitment Level in Public Sector Undertakings
and Central Government Establishments
.......................................................
All India Consumer Price Index 1 2 4 0
(Base 1 9 6 0 = 1 0 0 )
2,398
2,398
2 ,3 9 8
2,391
2,399
2,399
2,399
2,391
2,378
6.
7.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
2,398
2,354
2,311
2,277
2,254
2,278
2,410
Average
2 ,4 0 6
.......................................................
23. Central Government
1,530
.......................................................
22.
24.
Difference
870
===============s======================================
Annexe 41.4
1. Andhra Pradesh
1375-2375
2. Arunachal Pradesh
750
3 . Assam
900 -1435
4. Goa
775 -1025
5. Gujarat
950
750-940
7.50
6 . Haryana
940
+Rs 30 spl.
Pay
7. Himachal Pradesh
'8. Jammu
&
kashmir
750 -1350
start at
770
750 -940
9.
10.
11.
12.
Karnataka
Madhya Pradesh
Maharashtra
Manipur
840 -1340
750 -945
750 -940
750 -940
13.
14.
15.
16.
Meghalaya
Mizoram
Orissa
Rajasthan
820 -1175
800 -1150
750 -940
750 -940
17.
18.
19.
20.
21.
Sikkim
Tamilnadu
Tripura
Uttar Pradesh
West Bengal
800 -1060
750 -945
775-1130
750 -940
800 -1265
Annexe 4 1 . 5
Percentage i n c r e a s e i n P e r Capita
N e t National Product at
f a c t o r cost.
1
2
3
4
5
6
7
8
9
1986-87
1987 -88
1988-83
igag-go
1990-91
,1941-92
1952-33
1993-94
i994-95
1,871
1,901
2,059
2,157
2,222
2,175
2,239
2,292
2,449
Percent increase
i n 1994-95 over
iga6-87
30.9
----
Annexe 41.6
( i ) Civil
5.66
0.79
2. Emoluments (Rs./Mcnth)
A. Present
----------
( i ) Basic (Minimum)
(ii) Dearness Allowance
as on 1.1.96 @ 148%
(iii) Interim Relief
two instalments
@ Rs l o o / - each
A.
750
1110
200
Total
2060
B. Proposed
2440
----
----
C. Additional (B-A)
3. Total Additional Financial
Implication Rs crores/Year
:4 i g :
380
--294.1
BACKGROUND
Sipr/icancc of
Maximrrm Sdmy
42.1
The potentral
42.2
con-!icfiinf;xin~
the moximum
salary
Other issues
430
previous Pay Commissions and pay fixation at the highest levels has been based
Views 6,
42 4
Tbc predominant issues confronting the first three Pay
Commissions on the subject of maximum salary were entirely different from those
before the fourth. While the overriding concern of the former was whether the
maximum salary in Government should be reduced in view of the inordinately high
dspariyi-atio, the Fourth CPC had to address itself to the widening gap between
the salaries of top executives in the private and Government sectors.
previou
Cornmi.
CPC
Views ofthe
Second
cp%
42.5
The prevailing public opinion at the time the First CPC wes set
up was that salaries of senior functionaries in Government were too high and
needed to be cut down drastically. It was believed that high scales of pay in Indian
public service had been respoiisible for diverting the attention of brilliant young
men h m other fields andcotrwntrating it on Government service. The First CPC
therefore felt that Rs.2000per month-should be the maximum salary for public
servants, but for the highest posts such as Secretaries to Government of Inha,
Members of Railway Board, Members of the Union Public Service Commission,
General Managers &Railways and Ambassadors, salaries of Rs.2250, Rs.2500,
Rs.2750and Rs.3000would be suitable. No deamess allowance was admissible
to ' h s category of employees. While the ICS and pre-193I officers were entitled
to Rs.4000when appointed to posts of Secretary and Rs.3500when appointed to
posts of Additional Secretaxy,with the implementation of the First CPC's report,
a ceiling of Rs.3000per month was made applicable to the highest appointments
of Cabinet Secretary, Secretaries to the Government of India and the Chefs of
Sm.But this duction in the highest salary did not have any visible impact as
most top posts were a that time held by officers of the Indian Civil Service or pre1931 entrants to superior services. In the 4nriy, the reductions did not affect the
Kmg's Commissioned Officers who were holding most of the higher ranks at that
time.
42.6
The Second CPC examined the subject of highest salary in
considerabledetail and &a going into issues pertaining to erosion of real incomes
at the highest level, disparity ratio, quality of recruits and comparable salaries in
the private sector recommended no changes. Thus a non-ICS Secretary came to
draw a salary of RS.3000per mensem.
42.7
The highest salary remained unchanged till the year 1965 when
the salary of a Secretary was raised from Rs.3000 to Rs.3500 even before the
setting up of the Third CPC. The salaries of the Additional Secretary and Joint
Secretary were raised from Rs.2750 and Rs.2250 to Rs.3000and iXs.2500-1252750 respectively. These sudden increases in salaries at the highest levels were
necessitated by the steady fall in the number of candidates appearing before the
UPSC, rising consumer price indices and salaries in the private sector and a
disparity ratio of 19.2 in 1965 which had comc down from the level of 257 in
1939-40.
43 1
Views of the
Thir&CPC
Views ofthe
42 9
cpc
42.8
I949
1949
1959
-60
(Emoluments in Rs.)
1.9.65 1.1.70 1.i.73 1.1.86 6.1.96
3500
3500
3500
8000
16580
23 99
233 1
5896
12,615
267
553
Emol3000 3000
uments*
(Pre-t ax)
Index
100
of
Emoluments
(pre-tax)
100
117
117
117
--do--
100
101
107
106
103
26 1
557
AICPI**
100
124
163
21 1
252
754
1874
Real
earnings
Index
fvre-tax
100
81
72
55
46
35
29
(Post tax)
432
(Emoluments in Rs.)
1949 1959 1.9.65 1.1.70 1.1.73 1.1.86 1.1.96
-60
-do100
(Post tax)
81
66
50
35
41
30
The above table reveals the followingDuring the period 1949-1996, the pre-tax emoiumenls of a
Secretary to the Government of India increased 5.53 times from
1)
Rs.3,OOO to Rs.16.580.
During the same period, the AICPI increased by as much as
ii)
18.74.
iii)
I
Cechning
bfaxinrum
Mhirnum
Disparity Ratio
42 12
We turn next to the behaylour of the maximum-minimum
disparity ratios. The trend ofpre-tax and post-tax disparity ratios over the
years has been summarized in the table gwen below:Trend of Disparity ratios, 1948-1996
1948
1949 1359- 1/9/65 1/1/70
1960
3500
Maxi- 3000
3000 3000
3500
mum
Salan (Rs.)*
(PreTax)
Maxi- 2263
mum
Salary (Rs.)
(post-tax)
MI^-
55
(Emoluments in Rs.)
1/1/73 1/1/86 1/1/96
3500
8000
16580
2263
2281
2422
2399
2331
5896
12635
65
80
I03
141
I96
750
2060
mum
Salan*
(Rs.)
433
(Emoluments in Rs.)
1/1/73 1/1/86 1/1/96
1960
545
46.2
375
Post41 0
tax
Disparit?.
348
285
Pre-
34.0
24 8
17.9
23 5
170
I19
10 7
80
79
61
tas
Dispari t?
Ratios
Ratios
* lncludcs Dcamess Allowance. Dcarncss Pa! and Interim Rclief
The a b o x table revcals the following:-
42.13
1)
11)
111)
iv)
42.14
The falling disparity ratio was the resicit of a deliberate polic!.
followed b?.successive Commissions. This was probably in tune with the general
upsurge of socialist ideas in the economic field. The ratios did not remain constant
c\.en in the intervening pericd bet\veen t\vo consecutive Pay Commissions. Thus
thc pre-tax ratio slipped from 10 7 (1986) to 8.0 (1996). This phenorncnon is
csplained b!. the prevailing practicc of offering oniy partial .neutralization for
increased cost or living at thc higher Ic\cls. while there is complete neutralization
at the lo\ver levels.
42 15
At prcsent. a Sccrctan leiel officer drans total cmolumcnrs of
Rs 16.580 consisting of a fiwd basic pa! of Rs 8000. ii Dcarncss .-\llo\\ancc of
rcc rcmn .I i i d
Ks 7.680 ( u 96% of basic pa! ) and tuo intcnrn rclxfs of Rs 100 and Rs 800 The
~ r h c i iS
~ ,~rir ~ i c i r ~
Cabinct Sccrctq. drans total cmolunicnts of Rs 18.640 consisting o f 3 f i x d basic
IJw r C J l l l /
L l ~ l f ~ / l l l l l rJf
~ll~~
7%edemands
made
b-v
memorondub
42 1 7
1
Higher
miohmerris and
p r r h it1 the
private seclor at
;he senior most
levels compared
10 the Ciovt
2 19
11)
iii)
IV)
I--
--a-
-.-
42.20
Whilc a dificrcntial betwen the pri\atc and public sectors al\va!.s
did exist, the magnitudc of thc \,ariation now obsen,ed is largcl!- attributsblc to thc
removal of the ceilings on privatc sector salaries. Thc ceiling on the rcmuiicration
of managerial perscnnel in the prime sector was raised substantiall! on 14th J u l ~ ~ ~
1993 and relased complctcly for profit-making companics on I st February 1994.
Ths was done in the contcst of the philosophy of libcralisation and globalisation.
42.21
All rcstrictions on the nature and quantum of rcmuneration
payable by a profitablc company were withdrawn from 1.2.94: as long as
remuneration paid to the inanagerial personnel during an! financial !.car did not
exceed 5% or 10% of its profits. Companies without an?. nct profits or with
inadequate profits werc allo\vcd to pay remuncration ranging from Rs.40,000 to
Rs.87,500 p.m., dcpending on the cffective capital of the Cornpan!,. In the case of
loss-making companics also, the above limits were trcatcd as the minimum
rcmuneration payablc to individual managerial persons without Ccntral
Govcmment appro\.al. Thcsc limits can be Ivaivcd in ccrtnin C ~ S C S\\itti Ccntral
Govcmmcnt appro\.al.
perk.< I J I I i i c
prrhlic ,wcfor
,,,
c,,,,l,~,,,.e,~~
,jte
(;f/l./
42.22
As pcr thc hlDl study, a CEO in a Schedule A Public Sector
organisation on an aicrngc draws about Rs.16.200 (including Basic + DA +
C C A ) in comparison to thc Rs 16,580 drawn by a Sccrctan. to Got-criimcnt of
inda. The CEOs m PSUs Iikc thc Secretary to thc Go\cmnicnt of India do not gct
any incentive pa!.
Thc!.. ho\vcverl draw sundry allowances for club
membership, credit cards, guest entertainment, etc.. which arc not availablc to
a Sccrctaq, to Go\~cmiiiciitof India It has bccn rcportcd that at thc scnior
managcmcrlt Ic\.cls i n ISlis. sc\,crnl facilitics arc pro\,idcd \\ hich ma!. bc trcatcd
as pcrquisitcs., f.-or csamplc. ;I scntn is proi.1dc-d at tlic rcsidcticc of a Scnior
Esccutivc for 24 hours aiid hc performs tasks other than mcrcly guarding a house.
In PSUs this does not constitute a part of thc compensation package but gets
accounted as organizational expenditure. The entertainment budget in PSUs is
rather liberal and it is suficient for the Chief Executive to ccrtify that these were
business dc\dopmcnt cspmses in order to claim reimbursement. If all such factors
are taken into account the disparities between the compensation packages of
executives in Public Sector Undertakings and Secretaries to Government of India
turn out to be wide. The study reports that while the cost to company of a CEO
in a Public Sector Schedule of Company may be as high as Rs.57.262 per
month, a Secretary to Government of India costs Rs.44,817 per month.
countq
Malaysia
Sweden
France
Indonesia
Australia
China
Thai1and
Hongkong
Ratio
3.0
4.0
6.6
6.9
7.7
8.0
9.0
40.0
437
senior civil senants are able to take up well-paid positions in the private sector
whether they work in capital cities etc.
42.26
We also dccidcd to csamine thc compensation sttuclure of other
senior functionaries in Government such as the President, Prim Minister,
Mkiistcrs, Chaitman Rajya Sabha, Speaker Lok Sabha, Leader of Opposition.
c f w ~ r u t l ~ ,Mcmbws
l ~ ~ ~ of Parliament, Chicf Justice and Judgcs of the Supreme Ccurt af I:idlil
FJUU
arid thc High Courts, thc Comptroller and Auditor -General, thc Chief Elcction
Coniniissioner etc.
Salwie, t 7 d
&drown
by
rhc elc.credotid
tion .rli*c.rcd
~~WJW:(J
ii)
iii)
iv)
Court while somc limits havc been imposcd for the High Court
hdgcs. MPs have a libcral dispensation in rcspect of water and
clcctricity charges, free telephone calk and travel.
42 28
In our country the salaries of elccted representatives and
constitutional authorities are not formally linked to senior civil service grades, as
is thc case in Singapore or as was the case in United States traditionally. Where
the clcctcd representatives' salaries are linked to senior civil service, the pay
fisation cscrcisc for civil servants inevitably becomes a part of the debate about
clcctcd rcprcscntatives' own salaries.
42.29
The approach of fixing maximum salaries on the basis of a predetermincu mmunum-maximum disparity ratio has been widely criticized as being
at best ad hoc and arbitrary. Neither does such an approach reflect the true
requircmcnts and expectations of the senior functionaries not does it bear any
relation to their functional r&ponsibilities. While a need-based norm exists for
bench-marking the minimum salary no comparable norms appear to have been
evolved for bench-markingthe salaries of senior functionaries in Govemment. in
view of the diversity of opinions and expectations on the subject of maximum
salay, the range of differentials and the institutionai constraints involved, the
Commission decided to engage an independent professional body viz. the
Indian Institute of Public Administration to suggest a scientific and rational
formula for pay fixation for senior functionaries in Government.
Tlle/indtngso/
the studv
conduered by
IIP.1
42 30
ii)
iii)
iv)
Erosion iti
42.3 1
salaries at tlrc
rwarded.
Tl,r Cabinet
Seeretar?,and
Secretary to the
COW..of lndia
42.33
tax disparity ratio between the minimum and maximum salary at the Fourth
CPC level of 10.7. Such an increase at the highest level was more than warranted
on account of the serious and continuous erosion in the real income of senior
functionaries since 1949 and the pressing need for a competent bureaucracy in this
hour of economic refomi and liberalisation.
Ceiling mi privhte
sector snlories
42.34
We havc also m i v e d some suggestions regarding the
reimposition ofceilings on s a l ~ c ins the private and public sectors. Thc abolition
of ceilings, it has been stated, \\auld lead to the creation of high-wagc islands,
flight of talent, consumerism and heart-burning as Government may not be in a
position to pay comparable salaries 10its'employees. Some others argue that the
rccent spurt in the compcnsation structure of the private sector is a temporary
phenomenon and a statc of equilibrium is likely to be restorcd oncc thc economy
440
integrates itsclf with thc global market. We howevcr fccl that there is an urgent
need for a National Wage Policy in thehterim period to ensure that there is
no competitive jacking up of salary levels to disproportionate heights.
44 1
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