Message from Chairman & Managing Director Foreword from Director (HR.)


1. Past, Present & Future

2. Vision, Mission & Objectives ofBEML

3. Organization Structure

4. Composition of Board

5. Composition of Business Groups

6. Communication System

7. ERP System

8. Memorandum of Understanding with Ministry of Defence

9. New Logo


1. Work Environment - Office & Factory premises

2. Training & Development

3. Official Language policy & implementation

4. Worker Participation in Management

5. Workers' Education Scheme

6. Routing Designation

7. Salary remittances through Bank



1) Recruitment Rilles

2) Seniority Rilles

3) Career Development Schemes

i) Promotion benefits

it) Career Development Plans.

iii) Employee Service Record (ESR) I

Key Performance Area (KPA) I Executive Performance Appraisal (EPA)



iv) Job Designation I Identification of employees

4) Recognition of Achievements i) Reward Schemes

it) Suggestion Scheme

ill) Marketing Excellence


A) Pay & Allowances

1. Basic Pay and Payscales

2. Dearness Allowance

3. House Rent Allowance

4. City Compensatory Allowance

B) Other Allowances

1. Special Allowance

2. Contingency Allowance

3. Coal Field Allowance I Mining Area Allowance

4. Special Compensatory Allowance for NorthEast Regions

5. Night Shift Allowance

6. Creche Allowance

7. Transport Arrangements I Allowance I Conveyance


8. Canteen facility I Lunch Subsidy I Allowance

9. Turnout/Washing Allowance

10. Non-practicing Allowance (NPA)

11. Reimbursement of expenditure for Periodicals

12. Reimbursement of Entertainment Expenditure

13. Reimbursement of Internet Broadband Charges

14. Professional Up gradation Allowance

15. Reimbursement of Annual Membership fees paid to Professional Bodies.

C) Incentive Schemes

i) For Employees

» Direct Incentive Schemes (IB 1 & ffi2) » Indirect Incentive Scheme (lIB)

» Regional Service Department Incentive Scheme 2


> Annual Special Incentive Scheme ii) For Officers

> Quarterly Incentive Scheme

> Profit Linked Incentive Scheme

D) Advances

1. Purchase of Vehicles

2. Annual Advance

3. Purchase of Computers! Laptops

4. House Building Advance (Interest Subsidy)

5. Leased Car facility to Senior Officers

E) TA I DA Rules

1. Classification

2. Mode of Travel

3. Composite DA

4. Boarding charges with vouchers and Cash Allowance

5. Boarding charges without vouchers

6. Lodging charges

7. Local Conveyance

8. Journeys on Transfer

9. Transfer Grant

10. Disturbance Allowance

11. Transportation of Personal Effects

12. TA I DA for fresh appointments

13. Joining Time on Transfer

F) Leave Travel Concession (LTC) I Leave Travel Assistance (LTA) VI - EMPLOYEE WELFARE

A) Leave entitlement & utilization

B) Medical benefits

> Company hospitals

> Referral! Recognized hospitals for Inpatient treatment > Outpatient treatment



» Post-retirement medical scheme

C) Welfare Benefits

1. Educational facilities I reimbursement

2. Uniform and Footwear

3. Company accommodation I Leasing

4. Family Planning Incentives

5. Mementos I Gifts

D) Other Benefits

GSLI I LIC I First Aid I Banking I ATM I Sports, etc.

E) Cultural & Co-operative activities


1. Conditions of Service » Employees

» Standing Orders » Officers

» Service Rules

» Conduct, Discipline & Appeal Rules

2. Transfers I Redeployment of Personnel

3. Exerting outside influence

4. Involvement in activities of other organizations

5. Political activities

6. Interaction with Press and Media

7. Grievance Redressal

8. Safety & Protective Appliances

9. Telephone facility

10. Resignation I Cessation of employment


A) Statutory Benefits

1. Provident Fund

2. Profit Sharing Bonus

3. Maternity Benefit

4. Compensation for employment injury



5. Gratuity

B) Superannuation I Retirement

C) Benefits on Superannuation I Retirement

D) Death Benefits to family


1. Holidays

> National Holidays > State Holiday

> Festival Holidays

2. Celebrating important days

3. Remembering important occasions








Keeping in view the need for making BEML a vibrant, transparent and system driven organization, significant actions have been taken in the past six years which have resulted in changes in the organization structure, policies dealing with matters relating to organization, security & intelligence concerns and human resources. The entire effort has been to make it apparent to one and all the expectations of the Management in meeting the tasks set for the organization, to make BEML a global organization capable of competing with international giants and the benefits available to the human resources which is key to the ultimate success of the organization.

Among the various steps taken in this regard, one of the steps relates to evolving a compendium comprising rules, regulations and benefits viz., the HR Service Manual brought out by the Department of Human Resources. While this compendium will serve the requirements of the concerned for ensuring activity in line with the company policy, it is still felt necessary that officers at senior levels and those coming into the BEML family are aware of the expectations of the organization and the benefits available to the human resources. This will ensure a level playing field allowing fair play and doubts being cleared in day to day working, involving human resources.

One of the major concerns of the organization has been the ignorance of the workforce about the rules and regulations and the expectations of the organization. This sometimes results in gaps between the reported behaviour and the actual manifestation, warranting action on the part of the Management.

In view of this, a need was increasingly felt to enlighten officers and employees of the expectations and benefits and for this purpose, a BEML handbook on functions and benefits was thought of.



A group of HR Officers who were given the task of evolving a HR Service Manual were also entrusted the work of bringing out a BEML handbook. This group under the able guidance of HR Leadership of Corporate Office had worked tirelessly and brought out a compact but comprehensive handbook. I am sure, a reading of the handbook will equip the concerned to effectively handle the situations as they develop, be it relating to the functions or the benefits applicable to the employees. Towards this end, action has been taken to upload the handbook in the Company's website and SAP for easy reference and guidance.

I now look forward to a transparent and efficient functioning of the human resources of BEML capable of meeting any challenges that may arise in meeting tasks set for the organization.

V RS NATARAJAN Chairman and Managing Director

Bangalore May 2009




The vision led Management of BEML has continuously strived to build a performance based culture with strong and stable structures and systems to run the multifarious activities of the organization and building a strong, committed and motivated workforce.

At a stage when the organization is looking forward to completing the Golden Jubilee in 2013-14 in glory, it is necessary to re-assess ourselves for giving the required thrust to carry the organization forward. It is in this context a need was felt that a handbook be published containing precise but comprehensive information about the HR systems and sub-systems, service conditions, compensation & benefit and other welfare measures that are available to its human resources.

Accordingly, the HR Handbook has been brought out for the benefit and information of Executives I Employees to enable them to familiarize with the HR systems and procedures and become a useful member in taking BEML to commanding heights.

The Handbook is intended to be referred to or used for information and guidance and not as a rule book for which the service manual or the notifications of the company are to be referred to.

Last but not the least, I would like to place on record of the excellent efforts put in by the team of HR Officers to compile the HR Handbook. I am sure that all concerned will be immensely benefited by this endeavor.

(M. Nellaiappan) Director (HR)

Bangalore May 2009



II BEML· THE ORGANIZATION 1 Past, Present & Future

BEML was formed on 11th May 1964 under the administrative control of Ministry of Defence. Formerly, it was known as Bharat Earth Movers Limited and the present name came into being during 2007. The change in the name was necessitated due to the current role and multifarious activities of the organization. Initially, it was owned by Government of India and subsequently a part of the equity was allotted to public financial institutions. Subsequently, a public issue was made during early 1990's and the holding of Government of India came down to about 61 %. Further, during 2007, another follow-up issue was made and currently, the Government holding is about 54%.

Being a public sector undertaking, BEML is governed by the directives of Government of India with regard to its functioning, both financial and administrative. In addition, the directives of Dept of Public Enterprises are also required to be followed.

The company has also to implement Govt of India directives regarding reservation for SC/ST/OBC and other categories of personnel like ex-servicemen, physically challenged and sportsmen

2 Vision, Mission & Objectives of BEML Vision

To become a market leader, as a diversified company, supplying products and services to Mining & Construction and globalize its presence.


Improve competitiveness through organizational transformation and collaboration I strategic alliances.

Grow profitably by aggressively pursuing opportunities and international markets.

Attract and build people in a rewarding and inspiring environment by fostering creativity and innovation.




To maintain a dominant position in design, development, manufacture and marketing of defence, earthmoving equipment

> To diversify and grow

> To provide total engineering solutions to its customers > To internationalise operations by enhancing exports > To improve profitability

> To maintain state-of-the-art technology for all products

> Re-orientation of the business operations to match present scenario.

> Continuous building of skills and competencies to bring about

Executive Effectiveness for Management.

3 Organization Structure

The company has manufacturing plants at Kolar Gold Fields, Bangalore, Mysore and Tarikere. The plant at Tarikere viz., Vignyan Industries Limited. is a subsidiary unit of BEML. manufacturing steel castings required by BEML and others.

BEML manufactures Rail coaches (including Metro coaches), Construction & Mining and Defence equipments. The products manufactured by the company are supplied to core sectors of Indian economy like Railways, Coal Mining, Irrigation, Steel, Infrastructure / Construction and Defence.

The product mix of the company undergoes changes from time to time depending upon the specific requirements of customers in the core sectors of the economy. In view of this, the company has to gear itself up for change over from one product to another without any loss of time in order to meet the competition and the customer needs. Accordingly, over a period of time the type of equipments manufactured by the company has changed not only in design but also application for various purposes.

The sales and after-sales-service activities are carried out through a vast network of regional and district offices set up allover India to ensure customer satisfaction and availability of the critical equipment



in the nation building activities. The company offices are also located in other countries for export and outsourcing activities.

The company has separate divisions for research & development, international business, trading and technology development.

BEML has also a joint venture company viz., BEML Midwest Limited operating from Hyderabad. The company is into leasing of coal mines, etc.

BEML is also in the process of setting up a joint venture project at Brazil, China, etc., for manufacture and sale of its equipments.

4 Composition of Board

The affairs of the company are managed by a Board of Directors headed by Chairman and Managing Director. The other members of the Board include 05 full-time functional directors viz., Director (Defence Business), Director (Mining & Construction), Director (Rail & Metro), Director (Finance) and Director (HR) and 08 independent directors and 02 senior officers of Govt of India. All the appointments to the Board are made by Govt of India.

S Composition of Business Groups

The operations of the company is split into three business groups viz., Defence, Construction & Mining and Rail & Metro businesses. These three business groups and the functions of Finance and HR are headed by the full-time Directors. Each of the manufacturing divisions I operations are headed by EDs I CGMs who are known as Division I Complex Chiefs and assisted by other officers in the ranks of OMs, etc.

The company has a current strength of 12573 comprising 2708 Officers and 9865 employees. Among the employees, there are direct employees involved in production activities and others who support the production and other activities.

6 Communication System

In BEML, the communication is made through General Bulletins, Circulars, Inter Office Memos, etc., for information of employees and the concerned functionaries.



In addition, the general information about the company and its people are published in BEML News and BEML Blitz.

For other information, one can visit the BEML website.

BEML is also covered by RTI Act whereby public can access important information about the company after complying with the provisions of the Act.

7 ERP System

The entire operations of the company are now managed through ERP / SAP. Any activity is on-line intended to improve controls, increase efficiency and reduce costs. Personnel have been trained and in turn they are required to train others. All employees / officers are required to adopt themselves to the working accordingly.

8 Memorandum of Understanding with Ministry

Ministry of Defence signs an MOU with BEML every year covering the following :

~ Performance parameters viz., profitability, turnover, production and other operational factors

~ Performance at the year-end judged on the basis of actual performance vis-a-vis MOD targets

~ Actual performance judged on a 5-point scale viz., Excellent,

Very Good, Good, Average and Poor.

It is therefore. necessary for the employees to be aware of the MOD targets and achieve them year after year.

9. New Logo

To reflect the present organization which looks forward to new ventures establishment at various parts of the globe and to become truly a global company. a new logo has been adopted and the same is as under:




1 Work environment - Factory I Office premises

An employee assigned to work in an office I factory, should be aware of the following :-

> Timings of work J shift timings

> Wear and display the ID-cum-attendance card while on duty > Wear uniform and shoes provided by the company while on


> Conduct during working hours

> Not to bring prohibited articles as notified from time to time > Obtain movement pass to leave the workplace on official work

or for leaving the work premises early on personal work > Obtain prior permission for availing leave

> To be aware of safety precautions and fire safety measures > To meet visitors only in the Security Office

> Strictly adhere to the breakfast J tea J lunch J dinner timings as notified

> Complete the tasks assigned for the day

> Co-ordinate with other departments for successful completion of the work assigned

> Maintain cordial relation with others and courtesy to female employees

> Not to indulge in idle talk, spreading false information or rumours

> Intimate current residential address for timely communication and benefits

> Change in marital status, etc.

> Any other announcement regarding work culture made by

Management from time to time.

Being aware of the things to be observed and followed will ensure trouble-free working and meeting of targets set for the individual J organization.



2 Training & Development

BEML has detailed plans to provide training from the induction levels to updating the skills from time to time. This helps in engineering the technology for manufacture of company products, improving efficiency and quality.

Some of the steps taken in this direction are as under :-

)- Apprenticeship training for skilled workers and engineers.

This helps in imparting company specific training and ultimately helps in recruitment of the required skills.

)- Induction training to new entrants to acclimatize themselves with the company environment.

)- In house company programmes designed to update the skills, develop supervisory and leadership qualities and preparing potential candidates for general management levels.

)- Deputation to training programmes I workshops which aim at equipping personnel for specialist jobs.

)- Advanced specialized training with reputed institutions

in India and abroad for top management positions.

Every employee I officer of the company is required to make use of the training facilities provided for self-development, imparting knowledge to co-employees and meeting the tasks set for the organization.

3 Official Language Policy and Implementation

Govt of India policy stipulates implementation of official language policy. Accordingly, the company has taken action comprising the following :-

)- Use of Hindi in official correspondence

)- Encouraging employees to acquire Hindi qualifications by deputing them to classes I programmes and rewarding them with suitable incentives.



» Conducting workshops and other programmes aimed at progressive use of Hindi language.

» A cell to monitor implementation of the official language.

4. Worker Participation in Management

To encourage participation in Management activities, the following activities are encouraged in the factory divisions:

Labour Welfare Fund I Works Committee I Canteen Managing Committee.

A body comprising of representatives of Management and elected members to oversee welfare and related activities in the divisions. The committee meets periodically to review the progress of the activities and takes appropriate actions.

Joint Production Committee I Joint Plant Level Committee meetings

To bring in proper co-ordination between Management and employees, meetings are held to brief about the production and related activities. Such meetings help in proper understanding and meeting the targets which will ultimately benefit the organization and employees.

s. Workers Education Scheme

In line with Govt of India policy. employees are deputed to courses conducted which aim at educating the workers. The scheme aims at worker-teacher concept who in turn are able to impart the knowledge acquired to fellow workmen for better working environment.

6. Routing Designation

In BEML. there is a system of giving routing designation to officers for easy identification and routing of correspondence. Once a routing designation is assigned it is exclusive to the person I position and will not be repeated for any other person / position. The routing designations are similar in all the divisions except the prefixes which are peculiar to the division. Some examples are given below :-

The Board Level appointees will have the following routing designations :



Chairman & Managing Director Director (Defence Business) Director (Mining & Construction) Director (Rail & Metro)

Director (Finance)

Director (Human Resources)

:CMD : D(D) :D(M) : D(R) : D(F) : D(K)

HUMAN RESOURCES: Has 'K' as the identification alphabet. The routing designation of some of the important functionaries are as under:-

Chief General Manager (HR.) General Manager (IR)

HR Chief of Divisions KGFComplex

Bangalore Complex

Mysore Complex

Marketing Division


KGF Complex : E

H&PDivision : H

Bangalore Complex : R

Mysore Complex : T

Engine Division : Z

Marketing Division : M

If the unit is headed by a ED, then the routing designation will be ED(E), ED(R) and so on. In case CGM is the chief of the division, then the routing designation will be E, R, T and so on.


: K(ER)


The functions like Planning, Purchase, Accounts, etc., will be identified through a prefix or a suffix like P, M, A, etc., Thus, the planning chief will have a routing designation like EP, RP, etc., For materials function, the routing designation will be EM, RM , TM and for accounts, it will be AE, AR, AT, AS, etc. This procedure is followed to identify senior officers holding important positions by giving a routing designation.



All employees I officers are required to be familiar with the routing designations as it will avoid loss of correspondence and delay in reaching the communication to the proper authority.

7. Salary Remittances through Bank

To ensure safe and faster remittances, the salary and other payments due to employees are remitted to the individual accounts of the employee in the Bank of choice. Assistance of Banks has also been obtained to establish ATMs in the factory divisions to help the employees draw money at short notice.

Payments to vendors and others are also being made through ECS progressively.

The system ensures transparency and faster transactions.



1 Recruitment Rules

Recruitments in BEML are based on requirements for maintaining different operations of the company. The requirements in turn are assessed by industrial engineering department I designated agency keeping in view the operational requirements and succession planning. The requirements are also fine tuned based on expansion I diversification programmes of the company.

In normal circumstances, groups I grades are identified for induction and when the need arises the recruitments are also done on contract basis or for training for a fixed period before being considered for regularization.

As per the existing policy. the recruitment levels are as under :-



..-w''''''~T-=..--'''n~r ... ''
Category Qualification I Wage Group I Grade
Unskilled Upto SSLC MRE I Wage Group-A
Semi-skilled rrr I GraduateTrainee I Wage Group-B
Skilled DiplomaTrainee I Wage Group-C
Officers Engg. Degree I Professional qualification on
Contract I Trainee I Grade-lor II Recruitment to other groups I grades are made based on specific requirements.

Recruitments are normally made through employment exchange, advertisement in newspapers I BEML website, etc. In respect of ex-service personnel, the recruitments are based on the list provided by ex-servicemen organizations of Govt of India.

Due reservation concessions as per statute are provided to candidates belonging to SC/ST/OBClPhysically Handicapped I Ex-servicemen, etc.

Medical examination, police verification and verification of caste I category certificates will be done prior to appointment or while in service. False information will call for termination of service.

After recruitment, the candidates will be on probation as per company policy and confirmation in the grade or group will be based on satisfactory performance during the probationary period.

Company employees are also provided opportunities in case of requirements to apply for advertised posts and all other things being equal, can be selected for the notified posts.

Emoluments will be with reference to the group I grade to which appointments are made with provision for protection of pay in case the candidates are drawing higher emoluments in the organization from which they resign to join BEML.

The actual selection of any candidate into BEML service is based on the data provided by him regarding qualification, experience, caste, etc., and performance in test I interview. If at a subsequent date, it is



found that the candidate had given false information at the time of employment, the same would call for strict disciplinary action and even termination from service.

2. Seniority Rules

BEML has a system of arranging the employees in a group or a grade according seniority. The seniority is determined on the basis of the date of entry into the group or grade either through appointment or promotion from the lower grade. A person will be placed higher in the seniority list if he has entered the grade earlier to others and a person entering later will be placed lower to the other personnel who are already available in that grade. This procedure is followed in all grades and if in every aspect two employees are equal then seniority is determined keeping the date of birth in view.

The seniority of a person in a grade is used for the following :-

» Other things being equal, he will be considered for promotion to higher group I grade earlier than the other employees in the group or grade.

» For allotment of company accommodation, the seniority may also be taken into account for determining the eligibility.

» Seniority is also taken note of for the purposes of protocol and officiating arrangements.

» Seniority is also considered for grant of benefits or advances where limitation on funds are imposed.

3. Promotion I Career Development Schemes

i) Promotion Benefits

BEML being a Public Sector Organization, opportunities exist for its employees to move to higher management levels based on consistent good performance and capability to shoulder general management positions.



Employees in BEML have opportunities to move to higher groups I grades which will bring in monetary benefits, additional responsibilities, status, perquisites, etc.

The promotions in BEML are based on satisfactory completion of no. of years of service prescribed in the lower wage group I grade and thereafter based on requirements I selections.

ii) Career Development Plans

CDP for Employees in workmen category

~ Promotions are based on completion of prescribed no. of years of service in lower group with reference to qualifications and subject to satisfactory performance as reflected in the employee service records. (ESR)

~ Employees can become an officer provided they have the required qualification, no. of years of service as prescribed in a group and after passing a test I interview.

Criteria for CDP Promotion - Employee.

Promotion from Qualification Service
Wage Group Span
Unskilled AtoB SSLC 9yrs
Category Below SSLC 10 yrs
BtoC SSLC 10 yrs
Below SSLC llyrs Qualification I Service span
Category SSLC with NAC
Sr Typg I Degree Diploma INTC REQ
B toC 8 5 - 8 10
C toD 7 7 7 7 9
DtoE 6 6 6 6 7
E to SI 4 4 4 4 5
SI to S2 4 4 4 4 5
S2 to 53 4 4 4 4 5
S3 to S4 4 4 4 4 5 One year concession in case of employees possessing professional qualification (B+) in relevant field for every promotion to next group.



Promotion of employees to Officer, Grade-I

> Three years minimum service in Wage Group S 1 and possessing required qualification .

> To pass test I interview.

> Subject to notified vacancies.

Training programmes are conducted for converting unskilled workers to skilled category to enable them to bave higher promotional opportunities.

As per rules of the company, an employee promoted to higher grade is eligible for pay fixation in the promoted grade resulting in financial benefit.

CDP for Officers in Grade-I & above

> Promotions up to Grade-IV (Manager) are considered based on the service in the lower grade with reference to qualifications besides satisfactory performance as reflected in the Executive Performance Appraisal formats (EPA) and satisfactory performance in the interview.

> An officer who is professionally qualified as prescribed under the rules, competent and has consistent track record, can be considered for higher positions in the company. For others, the promotional opportunities are limited.

Qualification f service span
Promotion Cat CatB+ CatB Grad-
from Grade A (PO Others
qualfn) (DipJ) uates
Ito II 4 5 5 6 8
II to ill 4 5 5 6 8
rnro rv 4 5 5 6 -
Promotion to Grade-V & above
NtoV 3 5 5 NA NA
Vto VI 3 5 NA NA NA
Vill&above 3 NA NA NA NA 21


As per rules of the company, an officer promoted to higher grade is eligible for pay fixation in the promoted grade resulting in fmancial benefit.

If one has to aspire for higher grades than what is provided for related to qualification, it is necessary to acquire such qualifications. The company has also a scheme for providing incentives for acquiring additional qualification.

To be eligible for promotions, an employee besides having qualification and performance, should not also have been imposed a penalty as a result of a disciplinary case.

On being promoted to higher grade, employees I officers will be on probation for a period of six months lone year and putting in satisfactory performance during the probationary period will be a prerequisite for confirmation.

Category & Qualifications

The details of qualifications which are classified under Category-A and B+ are given below :-

Category-A :

• Doctorate in Engineering I M.Tech I B.Tech I MBA of IIMs of Ahmedabad, Bangalore, Kolkata, Lucknow, Indore and Kozhikode I PG in Engineering including Industrial Engineering I Tool Design I BE I AMIE and equivalent.


MBA from llMslPG Diploma in Personnel Management of XLRI, Jamshedpur/Tata Institute of Social Sciences, MumbailXavier Institute of Social Sciences, Ranchi.

• MSWIMA in Social WelfarelDSWIMBA in Personnel Mgmt. and other full time 2 years regular PG DegreelDiploma awarded by recognized Universities

• M.Sc (Chemistry),- Employees working in Laboratory and Painting shop involved in Chemical Analysis.



• Public Relations (Two years Full time course awarded by recognized university) for employees working in Public Relations Department.

• M.Sc (Horticulture/Agriculture), from recognized Universitites (Two years Regular Course) for employees working in Horticulture! Landscaping/ Afforestation Deptts).

• MS / MBBS / MD / MCH / PG Diploma in MA & MS / BDS.

Category B+

• Graduate Diploma in Materials Management from Indian Institute of Materials Management

• MBA or Equivalent Degree Courses offered by Universities (in respective fields)

• M.Sc (Statistics)! M.Sc (Mathematics)! M.Com

• M.Sc (Chemistry), Laboratory and painting shop involved in chemical analysis.

• M.Sc (Geology) working in Construction! Mining equipmentProduct ranges.

• Graduateship examination of Indian Institute of Industrial Engineering, Mumbai

• Pass in M.S. Examination in Industrial Engineering of lawaharlal Nehru University, Hyderabad

M.L ! LL.M ! B.L / LL.B (Part time basis/through correspondence) for employees working in HR, Security Material Management, Shipping/Stores Unit of Marketing Division.



• Diploma in Industrial Safety for employees working in Industrial Safety Departm.ent.(Employees who possess Basic qualification of Diploma/ Degree) Post Graduate Diploma in Computer Application awarded by Universities - for employees working in Electronic Data Processing Deptt (EDP)

• Diploma in Statistics, from Institute of Statistical Quality Control, Kolkata ( ISQL)

• M.Com in Export Department

• Post Graduationship Examination of Indian Institute of Industrial Engineering, Mumbai.

• 'A' level Advanced Diploma awarded by the DOEACC, Society, New Delhi (An autonomous body under Dept of Electronics, Govt of India for accreditation of Computer Course under the AICTE - DOE Scheme). To be acquired after Graduation.

• Intermediate CAlICWAlCS,

• Subordinate Accounts Service Examination (SAS) examination.


Employees positioned in offices directly attached to Functional Directors! Executive Directorsl Chief General Managerl General Managers who have been entrusted with specific assignment leading to screening! vetting tender/legal! foreign exchange! other documents, attracting the provisions of contract Act! Company's Act! other related statutory provisions.)

• Employees positioned in of needs.

• Diploma in Taxation law

Post Graduate Diploma in Industrial Relations & Personnel Management conducted by NIPM

• Diploma in Social Service Administration conducted by National Institute of Social Science



Post Graduate Diploma in I.R & Personnel Management conducted by Bharatiya Vidya Bhavan,

• Post Graduate Diploma in Public Relations & J oumalism conducted by Bharatiya Vidya Bhavan,

• M.B.A (One year) after Graduation from universities and from Bharatiya Vidya Bhavan, working in Public Relations! Marketing and related areas.

• Diploma in Social Work (Labour Welfare) conducted by Indian Institute of Social Welfare & Business Management, Kolkata University.

• M.A. (Sociology) awarded by recognised Universities for employees working in relevant areas of HRD Deptt.,

• M.A-in Public Relations (part time basis/through correspondence) for employees working in Public Relations Department;

• Post Graduate Diploma in I.R & Personnel Management conducted by Sri Venkateshwara University/Annamalai University and other recognized universities.

• Post Graduate Diploma in Public Relations or J ournalism from recognised Universities.

• B.Sc (Agriculture/ Horticulture) / M.Sc(Botany) awarded by recognised Universities/Government for employees working in Horticulture / Landscaping! Afforestation Deptts).

• M.Phil (Hindi), M.A (Hindi) awarded by recognised University for employees working in Hindi Cell.

Post Graduation with Library Science viz., B.L & I.Sc awarded by the recognised Universities subject to the condition that the employees possessing above qualifications are manning the Technical Library.

Post Graduate Diploma in Computer Application awarded by Universities - for employees working in Electronic Data Processing Deptt (EDP)



• Diploma in Training & Development conducted by Indian

Society for Training & Development.

• Diploma in Labour Laws - from recognized universities

• M.A. (Public Admn) - from recognized universities.

• M.A (Kannada) - Employees working in Human Resources!

Public Relations and Translation Departments only


As per policy, the qualifications indicated above are those possessed / acquired by officers for the relevant areas of functioning in the organization and categorized as such under the CDP / promotion policy.



Employee Service Record (ESR)

> The ESR is an important document which is generated by the designated officer for a calendar year to indicate the performance of the employee with reference to various parameters mentioned in the document. This serves as a guide for communicating to the employee the shortcomings if any, for the given period. Further, the reports for a period of three years are also used for determining the eligibility of the employee for being considered to higher group under the CDP.

ESR also serve as a guide for determining awards, medals, etc.

Key Performance Area I (KPA) I Executive Performance Appraisal (EPA)

> For officers, EPAs are generated for the financial year based on the Key Performance Areas (KPAs). The KPAs are determined at the beginning of the year between the officer and the Reporting authority to enable the officer to achieve the target set in the KPA for the financial year.



> At the end of the fmanciaI year, the performance of the officer is reflected in the EPAs by the officer I Reporting Officer I Reviewing Officer and the Accepting Authority.

> The EPAs are used for conveying adverse ratings if any, to enable the officer to improve his performance, considering him for promotion to higher grades and for determining the quantum of profit linked incentive to be paid.

iv) Job Designations I Identification of employees

> An employee or an officer is given a job designation depending upon the job and the group I grade in which he is placed and this will vary from time to time depending upon the change in their jobs and groups I grades due to promotion I posting, etc.

> For the purposes of preparation of Payroll, the level of the employee is established by English alphabets I numbers depending upon the group I grade. These are called level codes and can be seen in the salary slips.

> An employee is assigned a permanent staff number at the time of entry into service will remain unchanged throughout the service for easy identification.

> The departments in the entire company are assigned different numbers which will be prefixed to the permanent number of the employee concerned to know the exact place of posting.

> Every employee is provided with a badge to be worn while on duty and recording attendance. This is a critical document to be carried while on company duty for easy identification.

4. Recognition of Achievements

i) Reward Schemes

In recognition of the making significant contributions made by employees, the following reward schemes are operated:-

Quality Awards

Employees who have contributed for improvement of the quality are honoured during the quality week celebrated every year.



Merit Rewards

The importance of individual contributions in achieving higher levels of efficiency, cost reduction and innovations in the operations is duly recognized by identifying employees who have made outstanding contributions during a given period. The scheme provides for notifying the best outstanding employee of the company and outstanding employees for the divisions. The recognized employees are given increment ! cash awards.

Nonimara Awards

The importance of quality circles in improving the operations resulting in productivity has been recognized by the company. The activities undertaken by a group is encouraged and such groups make presentations before the Top Management once in a year. The best teams are selected for suitable awards.

ii) Suggestion Scheme

BEML recognizes the importance of suggestions of employees in improving the efficiency of the organization. For this purpose, a scheme has been notified under which the employees can make suggestions which if accepted will be suitably rewarded.

iii) Marketing Excellence

Marketing! sale of company products is a critical function as it determines the operations and profitability of the company. Further, support to customers in ensuring product availability in their operations results in customer retention and continued orders to the company. In these operations, the Regional! District Offices playa critical role. During Annual Regional Managers Conference, the achievements are analyzed and the top performing regions for the financial year are rewarded.





A) Pay & Allowances

The employees of BEML are paid salary on a monthly basis. There will be salary cuts where there is shortage in attendance hours or if the absence is without paid leave.

The components of salary are Basic Pay, Dearness Allowance (DA), House Rent Allowance (HRA) in cases where company accommodation has not been provided, City Compensatory Allowance (CCA) where payable, etc. Details of pays cales are given in tables.

The details of allowances mentioned are indicative and payable to eligible 1 entitled employees depending upon service conditions and place of posting.

The pay and allowances are effective from 1-1-1997 and due for revision with effect from 1-1-2007.

The details of Pay, DA, etc., payable to an employee are explained in the following paragraphs.

1) Basic Pay & Payscales

The Basic Pay to be drawn by an employee is based on the payscale attached to a wage group 1 grade in which he is appointed or is currently placed. The payscale will have a minimum pay, maximum pay and increment rate which is to be granted every year on satisfactory completion of service. There could be instances of personal pay, special pay, etc., granted to an employee specifically on account of pay fixation, family planning, etc.

Pending settlement of wage 1 salary revision from 1-1-2007, adhoc benefits to the extent of 3/2 increments have been granted to benefit employees.

Payscales Board Level Schedule

'N (CMD)

'B' (Directors)

(Refer to Amendment for revised seales of pay for elU:CUtive8 w.e.f. 01.01.07 at the end of the Booklet)

Scale of Pay Rs.27750-750-315oo Rs.25750-650-30950



Below Board Level Grade











Scale of Pay Rs.6550-200-11350 Rs.8600-250-14600 Rs.I0750-300-16750 Rs.13000- 350-18250 Rs.14500-350-18700 Rs.16000-400-20800 Rs.17500-400-22300 Rs.18500-450-23900 Rs.20500-500-26500 Rs.23750-600-28550

Regular officers posted in Technology Division will be eligible for extra payment of 22% of running basic pay (including the additional increments granted pending salary revision) as 'Personal Pay' provided they sign a bond to serve the company for a period of 05 years.

Project Trainees / Engineer Trainees will also be eligible for 22% extra payment calculated on the minimum pay of Grade-II pay scale viz., Rs 8600/-


Wage Group A

B C D E SI S2 S3 S4

Payscale Rs.3500-65-4150-70-611O Rs.3750-80-4550-85-7100 Rs.4200-115-5350-120-7750 Rs.4620-135-5970-140-8350 Rs.4870-155-6420-160-10100 Rs.5400-180-7200-190-10620 Rs.5900-190-7800-200-11600 Rs.6300-200-8300-21O-12500 Rs.6500-210-9020-220-12980



2) Dearness Allowance (DA)

The pay of an employee is linked to a basic index called All India Consumer Price Index CAlCP!) on a starting date. For example, the current payscales indicating the minimum and maximum pay are linked to AlCPI 1708 on 1-1-1997. If there is an increase I decrease in AICPI due to inflation, the increase I decrease is calculated as a percentage of the basic pay and the resultant amount is paid as DA. As per the current practice, the DA payable is determined every quarter (April to June, July to Sept, Oct to Dec and Jan to March) and paid from the 1 It of the quarter on a monthly basis.

The grant of DA every quarter is to neutralize 100% the rise in the cost of living index as reflected by AICPI.

Pending settlement of wage I salary revision with effect from 1-1-2007, a decision has been taken to treat 50% of the basic pay (granted as DA) as Dearness Pay. This will enable the employees to draw higher DA, HRA, CCA, etc.,

3) House Rent Allowance (HRA)

HRA is paid to an employee if he is not provided with company accommodation.

The allowance is to partially defray the expenses an employee has to incur towards accommodation in his place of posting.

lIRA rate I amount is determined based on the classification of city and is a percentage of basic pay.

The HRA percentages for different cities are as under:

Classification of cities A-I



C & Unclassified

Percentage of Basic Pay 30%

25 %





4) City Compensatory Allowance (CCA)

As a part of compensation package, CCA is paid to eligible employees based on city classification where they are currently posted.

The CCA is to meet the additional expenditure that may arise due to the cost of living in the place of posting.

The allowance is payable based on city classification as under:-

Basic pay Classification of cities
Per month A-I A B-1 B-2
Below Rs. 4000 90 65 45 25
Rs. 4001 - 5250 125 95 65 35
Rs. 5251 - 6499 200 150 100 65
Rs. 6500 & above 300 240 180 120 The cities I places where BEML offices are located and their classification for HRA and CCA are given below:


Classification Classification
Name of the City Category Percent Category
Bangalore A-I 30 A-I
Mysore B-2 15 B-2
KGF C 10 Unclassified 32


N arne of the City Classification Classification
Category Per-
cent Category
Regional Offices
Bilaspur C 10 Unclassified
Kolkata A-I 30 A-I
Hyderabad A-I 30 A-I
Mumbai A-I 30 A-I
Nagpur A 25 A
New Delhi A-I 30 A-I
Ranchi B-2 15 B-2
Sambalpur C 10 Unclassified
Singrauli C 10 Unclassified
Chennai A-I 30 A-I
District offices
Asansol B-2 15 B-1
Ahmedabad A 25 A
Bhubaneshwar B-2 15 B-2
Bhilai C 10 Unclassified
Chandrapur C 10 Unclassified
Dhanbad C 10 B-1
Guwahati B-2 15 B-2
Goa C 10 B-2
Hospet C 10 Unclassified
Jammu B-2 15 B-2
Koehl B-2 15 B-1
Kothegudarn C 10 Unclassified
Madurai B2 15 B-1
Neyveli C 10 Unclassified
Rarnagundarn C 10 Unclassified
Udaipur C 10 Unclassified
Vishakapatnam B-2 15 B-1 33


~r"-~~"lImn-; ~rwn~r~ .. ~
N arne of the City Classification Classification
Cate- Per-
gory cent Category
Regional Inspection
Bhavananagar B-2 15 B-2
Coimbatore B-2 15 B-2
Harihar C 10 Unclassified
Kholapur B-2 15 B-2
Pune B-1 15 A
Rajkot B-2 15 B-2
Shimoga C 10 Unclassified
Salem B-2 15 B-2

1. Special Allowance of Rs 100/- per month is paid in places where no CCA is payable.

2. Contingency AUowance of Rs 50/- per month is paid at KGFonly.

3. Coal Field Allowance in notified coal field areas 1 Mining Area Allowance at Neyveli is payable as under :-


Pay Range (Rs) Amount (RslMnth)
6500-10750 425
10751- 11050 560
11051 & above 750 Employees in Wage Group S4 : Rs 2751-

and below Per month

Pro-rata deductions will be made for the days of absence on Leave without Pay.



4. Special Compensatory Allowance for North East at the rate of 5% of basic pay subject to a maximum of Rs 50/per month is paid to officers and employees working in Assam, Meghalaya and Nagaland areas.

S. Night Shift Allowance : An allowance of Rs 12/- per shift for working in 2nd shift and Rs 20/- per shift for working in 3rd shift is paid to employees and officers.

Duty Officers and Officers of other departments who are on specific assignment in 2nd and 3rd shifts are also eligible for the night shift allowance.

6. Creche Allowance : Creche facility or alternatively a financial assistance of Rs 100/- per month per month upto the age of 4 years is paid to female personnel for ensuring proper care for the babies.

If the child is admitted to LKG, the reimbursement towards creche facility will be stopped.

7. Transport Arrangements I Allowance I Conveyance Reimbursement

Pick-up and drop facility is available to employees in factory divisions for attending to work through company arranged transport. An amount of Rs 350/- per month is paid for meeting the expenditure between residence and pick-up 1 drop points.

Where company has not provided transport facility, transport allowance at the rate of Rs 750/- per month for full attendance is paid and proportionate deduction is made for absence days.

For employees / officers who are utilizing their own transport to attend to official work, reimbursement of conveyance expenditure is made as under :-




Type of Grade Amount
Vehicle (Rs /
Moped All Grades 750
Scooter / Grade-II II 1000
MotorCycle Grade-III 1100
Grade-IV & above llOO
Grade-III 2000
Grade-IV 2200
Grade-V 2300
MotorCar Grade-VI 2400
Grade- vn: / VIII 2700
Grade-IX 2800
Grade-X 3000 E

Type of Vehicle Amount (Rs / Month
Moped 550/-
Scooter I Motorcycle 750/- Persons with disabilities (Orthopaedic & Blind), are eligible for an allowance at the rate of 5% of Basic pay subject to a maximum of Rs 1001- per month provided they put in a minimum of 15 days attendance in a month. Besides they are also eligible for company transport arrangements.

8) Canteen facility 1 Lunch Subsidy 1 Allowance Arrangements are made in factory divisions for providing lunch, etc., at subsidized rates which the employees can avail. The coupons are sold 1 issued to employees or the amount payable for the food is recovered through salary.

In case an employee in factory division is not able to avail lunch due to official work outside the premises, the rules provide for payment at the rate ofRs 151- per day to partially defray the expenses.



In places where the Canteen facility is not available, lunch allowance is paid at Rs 1000/- per month and proportionate deduction at the rate of Rs 401- per day of absence on leave or otherwise.

Similarly, for officers, arrangements are made in establishments for availing lunch and officers have to avail lunch after surrendering coupons provided by the company. The value of coupons will be Rs 1000/- per month and an amount of Rs 401- will be deducted for every day of absence due to leave or otherwise.

9) Turnout I Washing Allowance

Employees in workman category who are Security 1 Fire Service personnel, Drivers, Medical Services, etc., are paid a Turnout allowance of Rs 160/- per month.

A washing allowance of Rs 100/- is paid to all other employees and officers.

10)Non-Practising Allowance (NPA)

Medical Officers of the company are paid non-practising allowance at the rate of20% of Basic Pay per month subject to a maximum of Rs 4500/- per month. NPA is treated as 'Pay'

11) Reimbursement of Expenditure for Periodicals

The amount as detailed below is paid to officers as reimbursement of expenditure incurred by them towards purchase of periodicals, etc.

Grade Amount (Rs 1 pm)
1tom 150
IV to VI 250
vn & VITI 300
IX 400
X 500 37


12)Reimbursement of Entertainment Expenditure

For officers in Grade-Vll & above who are required to entertain guests 1 visitors in connection with the business operations of the company, reimbursement as indicated below will be made on self-certification basis:-

Grade Amount (Rs 1 pm)
Executive Director 2000
Chief General Manager 1500
General Manager 1000
Deputy General Manager 500 13)Reimbursement of Internet Boardband charges Officers in Grade-VI & above are eligible to claim reimbursement of internet broadband charges as per BSNL tariff for the facility installed at their residences. The amount of reimbursement is as under :-

Grade I Designation Internet Charges
(incl. Service Tax)
VI 1 VII I vm
(AGMs 1 DGMs 1 GMs) Rs 300/- per month
IX 1 X(CGMs 1 EDs) Rs 750/- per month 14) Professional Upgradation AUowance

Details of professional upgradation allowance payable to officers are as under :-

Grade-1 Rs 1,200 per annun
Grde-ll Rs 1,800 per annum
Grade-Ill Rs 2,400 per annum
Grade-IV & above 50% of Basic Pay as on
l't April of each year
(excluding personal pay) The amount as above is payable quarterly and officers are required to make claims accordingly.



15) Reimbursement of Annual Membership Fees paid limited to One Professional Body

> Scheme to reimburse annual membership fees paid by officers in Grade- V & above to one of the recognized professional body.

> The professional. bodies should be relevant to the area of activity of the officer.

> Amount to be reimbursed will be 50% of the fees paid. > Reimbursement requests to be approved by the concerned Functional Director.

C) Incentive Schemes

i) For Employees

> Schemes exist in BEML to motivate employees I officers to attain higher levels of efficiency to improve productivity I profitability of the company.

> The schemes provide for sharing of gains on attaining higher efficiency levels.

> Separate incentive schemes exist for direct employees on production jobs, indirect employees and officers.

> The scheme for Direct employees are m-l, m-2 and 1m.

> Indirect employees are covered under llB scheme.

> For direct employees the measurement of efficiency is by the individual output in terms of standard man hours (SMH) and upon exceeding the minimum SMH of 100 in any month, incentive amounts are paid under IB-1 scheme.

> The ffi-2 scheme measures the efficiency of the group in a division and upon reaching the minimum levels of efficiency, the direct employees are paid incentive



amounts. If a direct employee is not earning Incentive under IB-l, he is not eligible for incentive under IB-2 scheme.

» The lIB is a group incentive scheme covering direct and indirect employees.

» The lIB scheme provides for payment upon reaching the minimum specified SMH output for the division and an average payment for employees of Corporate Office and Marketing Division.

» An employee will be paid the full amount of incentive provided he has put in 100% attendance by not availing leave, etc.

» Employees in Service Departments in Regional 1 District Offices attending to the service problems of the equipments supplied by BEML are also covered under a separate incentive scheme.

» Special incentive scheme provides for payment to employees at the end of the fmancial year dependent upon the performance of the company.

ii) For Officers

» Officers are covered under monthly incentive plans payable quarterly.

Profit Linked Incentive Scheme (PUS) providing sharing of profits dependent upon grade and performance of the officer 1 division during the financial year.


1. Purchase of Vehicles

» TWO-Wheelers: Rs 15,000/- as first loan and Rs 10,0001- as second and subsequent loan.



» FOUR Wheelers: Rs 1.50 lakhs as first loan and up to Rs 75000/- for subsequent loans depending upon the age of the 4-wheeler.

» Employee 1 officers can avail a maximum of 04 loans for 2-wheelrs and 02 loans for 4-wheeler 12-wheeler in one's career in BEML.

» To be eligible for 4-wheeler advance, one should be in Grade-III & above of the officers payscale and for 2-wheeler loan an employee should drawn a basic pay of Rs 4870/- or above.

» The advance facility is available to permanent employees 1 officers of the company.

» The scheme also provides for recovery in Equated Monthly Installments (EMIs) and carries subsidized interest rates.

Grant of advance is subject to terms and conditions like eligibility, hypothecation of the vehicle in the name of the company, etc., notified from time to time.

1. Annual Advance

» Rs 8000/- if the take home pay is more than 25% of gross salary.

» Rs 6000/- if the take home pay is less than 25% of gross salary

» Advance is interest free and will be recovered in TEN equal monthly installments.

» Permanent employees 1 officers of the company are eligible to avail the advance.

2. Advance for purchase of Computer 1 Laptop

» Officers in Grade-IV & above are encouraged to buy Desktop computers 1 laptop from approved suppliers to enhance their computer skills.



> 80% of the actual cost subject to a maximum amount of Rs 40,000/- is borne by the company.

> Payment will be made directly to the supplier.

> The amount of advance is interest free and recoverable in 36EMIs

4. House Building Advance (Interest Subsidy)

An employee 1 officer can avail house building advance from an approved financial agency subject to terms and conditions notified from time to time.

> BEML will reimburse the difference in interest rates between Govt. of India rate and the rate charged by the financial agency.

> Maximum amount of loan is Rs 4.00 lakhs for grant of interest subsidy towards purchase of House/flat, House construction. OR in case of extension/renovation of existing own house, maximum amount of Rs.l.20 lakhs for grant of interest subsidy.

> Eligibility amount is decided based on the parameters notified from time to time subject to a maximum of Rs 4.001akhs.

> Deduction ofEMI through payroll and remittance thereof to the concerned financial agency is done by BEML.

> Interest subsidy is reimbursed only for the first advance. > Employee 1 officer to approach the concerned HR Dept for guidance as and when they desire to avail the facility.

> Facility for insurance coverage up to Rs.l 0 lakhs for the loan availed also exists which will ensure the liability to be taken over by the insurance company in case of unfortunate death thus helping the family.



S. Leased Car Facility to Senior Officers

)- Officers in Grade- vn & above are eligible to avail the facility subject to terms and conditions notified under the scheme

)- Company to finance purchase of approved cars with monthly recoveries of the lease amount from the officer

)- Officers having a balance service of 5 yrs are eligible upto Board level and for Board level officers the minimum service eligibility is 03 years.

)- Lease amount will be Rs 5.00 lakhs for a period of 10 years for officers upto CGMs grade;

)- Rs 6.0 lakhs for EDs / Complex / Division Heads with a lease period of 05 years ;

)- Rs 7.50 lakhs for Board level appointees with a lease period of 2 to 3 years.

)- Lease rental to be 0.83% of the purchase price to be recovered on monthly basis

)- At the end of the lease period or termination of service on account of death / separation from the organization, the ownership will be transferred at a determined value.

)- Fuel expenses will be reimbursed at the rate of 50 ltrs / 60 ltrs /75 ltrs for DOMs / OMs / COMs respectively. For EDs / Complex / Divisional Heads and Board Level appointees, the reimbursement will be at actuals.

)- Repairs & maintenance expenditure upto a limit of Rs 12.000/- per annum is reimbursed for DOMs / OMs / COMs. For others, the expenditure will be borne by the company.

)- The registration charges (including life time tax) and insurance premiums for the vehicles will be borne by the company.



> Amount spent by CGMs in engaging Drivers is reimbursed at minimwn wages for skilled workers notified byGovt.

> For Complex 1 Division Heads 1 Board level appointees, company 1 contract drivers are provided.


Employees are deputed to different places for official work. To regulate the expenditure on account of travel, stay, food, etc., the TA 1 DA rules have been notified inter-alia covering the following :-

> Entitlements for travel, transport of personal effects and journey DA to personneljoining company service on initial appointment.

> Entitlements of employees while on outstation duty. > Travel and other facility to Sportsmen.

> Entitlement of class of travel for LTC.

> Entitlements on transfer.

The brief details of classification of employees, entitlements, etc., are given below.

1. Classification

Category Officers/employees
A Officers in grade General Managers & above
B Officers in Grade- N to Grade-VII
C Officers in Grade- I to Grade-III
D Employees in Wage Groups A to S4, drawing salaY)
of Rs 4870/- per month & above
E Employees drawing basic salary less than
Rs 4870/- per month 44


2. Mode of Travel

The mode of travel, class of accommodation and the rates for road travel to which an employee is entitled while travelling on tour are given below.

Category Mode of Travel Entitled Class of Accommodation
A Air Economy Class
Train AC I Class
Road Taxi/Company CarlHi-tech buses
By own Car Rs.51- per KM
Conveyance Scooterl : Rs2l- per KM
B Air Apex Fare* & other guidelines
notified from time to time
Train AC II Tier
Road Taxi/Hi-tech buses
By own Car Rs.51- per KM
Conveyance Scooterl : Rs2l- per KM
C Train AC II Tier
Road Cost of single seat in taxi I
Hi-tech buses
By own Car Rs.51- per KM
Conveyance Scooterl Rs2l- per KM
D Train I Class I AC m Tier
AC II Tier - when I Class
I AC ill Tier are not provided in
the train# Bus FarelHi- Tech buS#
Road Bus FarelHi-Tech bus#
D Train Sleeper Class
Road Bus Fare 45



(a) Officers in AGMs & above grade are allowed one way Air fare by FDS, subject to approval by competent authority.

Officers in Grade-IV & V to travel by Train only.

(b) (*) Apex Fare would mean less than 50% of Air India Economy Class fare within India.

(c) Category- B employees may travel by late night flight or Apex Fare provided the same is approved by the concerned Director.

(d) Ticket booking for travel by AIR will be done by PR Department after approval by competent authority and pre-audit.

(e)# PNR Number I Xerox copy I original bus ticket to be enclosed to the expense report as proof of travel in Train by AC I Class I H Tier I HI Tier, I Class and by Hi-Tech bus.

(f) For Air Travel, the counterfoil or other proof of the ticket is to be enclosed to the expense report.

(g)For travel undertaken by own Conveyance, reimbursement will be either the fare applicable to the eligible class by Train or the eligible amount, whichever is less.

3. Composite DA

When an employee on outstation duty makes his own arrangement for boarding and lodging, is entitled to claim Composite D.A as under:-


Category Metro I A Class Other
Cities Cities
Rs. Rs.
A 500 450
B 450 425
C 325 300
D 300 275
E 250 225 For journey period, the regulation of daily allowance will be as under :-

Category Amount per day
A Rs250
B Rs225
C Rs 175
D Rs 150
E Rs 120 4. Boarding charges with Vouchers and Cash Allowance Employees in Category A, B, C, D & E will be entitled to claim reimbursement of Boarding charges on production of vouchers and cash allowance as under :-

Classification of Cities
Metro / A Class Other cities
Category Boarding Cash Boarding Cash
Charges Allowance Charges Allowance
Rs Rs Rs Rs
A 375 75 350 75
B 325 50 300 50
C 275 40 225 40
D 200 Nil.. 175 em.
E 175 Nil.. 150 Nil.. 47


5. Boarding charges without Vouchers

Employee may claim boarding charges without production of vouchers as under :-

Metro / A Class Other Cities
Cate- Cities
gory Hotels Transit/ Hotels Transit/
Guest House Guest House
Rs. Rs. Rs. Rs.
A 325 275 300 250
B 300 250 275 225
C 250 200 225 175
D 180 170 160 150
E 140 130 130 120 6. Lodging Charges

Employees while on tour can claim lodging charges as under and subject to conditions enumerated therein. For reimbursement of the above charges, employee shall submit bills along with the expense report.

Category Metro / A Class Cities Other Cities
Rs. Rs.
A 4000 3500
B 2CXX) 1500
C 1200 1000
D 450 400
E 450 400 7. Local Conveyance

Category Mode of Travel
A&B Actual Taxi Fare
C Cost of single seat in a Taxi or Auto
D Auto - actuals @ Rs.6/- per KM subject to
a maximum of Rs.160/- per day
E Actual fare by public transport. However, where
official documents / luggage is carried, actual autc
fare @ Rs.6/- per KM subject to a maximum of
Rs.130/- per day duly certified by the controlling
officers. 48


8. Journeys on Transfers

On Transfer, an employee and the members of his family as defined in the rules will, subject to the approval of the Controlling Officer, be eligible for payment of :

(a) Travel expenses;

(b) DA for the journey time;

(c) Lump-sum Transfer Grant ; (d) Disturbance Allowance; and

(e) Freight charges for the transportation of personal effects.

9. Transfer Grant

An employee will be entitled to a transfer grant of one month's basic pay as applicable to him at the time of transfer as lump sum grant. The transfer grant includes conveyance for the employee and his family members from residence to railway station I airport etc., at the old headquarters and from railway station I airport etc., to residence at the new headquarters.

In respect of employees who are transferred from one place to another and who prefer to retain their family establishment at the old station and who have been permitted to do so, irrespective of the duration permitted, will be entitled to only 25% of the Transfer Grant. However, full entitlement of Transfer Grant (inclusive of 25%, if already availed) will be admitted as and when the employee shifts the family establishment from the old Head Quarters to the new Head Quarters.

10. Disturbance Allowance

An employee on transfer will be paid disturbance allowance as under provided

i) the employee has served at the last duty station for over one year ;

ii) when there is actual shifting of residence to the new station.



..-w''''''~T-=..--'''n~r ... ''
Category Amount
A Rs 3250/-
B Rs 29001-
C Rs 1800/-
D Rs 1200/-
E Rs 950/- In cases where the family is retained at the old headquarters, 25% of the entitled amount is payable to be restored to 100% as and when the family is shifted.

11. Transportation of Personal Effects

An employee on transfer will be entitled to claim the actual cost of carriage of personal effects by goods train up to the following limits:

Category Kgs
A&B 6oo0kgs
C 3OO0kgs
D 1500kgs
E looOkgs If the personal effects as above are carried by passenger train I road between places connected by rail, the payment will be limited to the amount which would have been admissible had the maximum entitlement of personal effects been carried by goods train. Employees in Category B and above will be entitled to transport their personal effects in a four wheeler passenger fit wagon sent by goods I coaching train like VK, etc.

In addition to the cost of transportation of personal effects as above, an employee will also be entitled to the cost of transportation by rail I road of his car I motor cycle I scooter I bi-cycle if he was owning and using the same at the old headquarters. The charges (including packing and forwarding



when carried by goods train) will be limited to the freight charges by passenger train. The scale of entitlement will be as follows ;-

Category Type of Vehicle
A&B Motor Car I Motor Cycle I Scooter
C&D Scooter I Motor Cycle I Bicycle
E Bicycle 12. TA I DA for fresh appointments

Travelling expenses including Daily Allowance for journey time for self and family members and cost of transportation of personal effects is reimbursed.

In case of resignation within 03 years, the entire amount shall be refunded.

13. Joining Time on Transfer

Not more than one day is allowed to an employee to join a new post when appointment to such post does not necessarily involve a change of residence from one station to another. A holiday counts as a day for the purpose of this rule.

If the transfer of an employee involves a transfer from one station to another, six days are allowed for preparation and in addition, a period to cover the actual journey.

F) Leave Travel Concession (LTC) I Leave Travel Assistance (LTA)

The following LTC henefits are available :-

~ Visit to home town once in 02 years in a block of 04 years. ~ Visit to any place in India in lieu of one home town visit.

~ Visit to home town every year in case employee is unmarried and single.

~ Lump sum encashment subject 75% of 1500 kms each by entitled class in lieu of LTC to anywhere in India.



> LTA of Rs 2400/- every year in case the employee opts out of LTC.

> Employee can draw advance and submit expense report after return for balance reimbursement, if any.

> For LTC benefits, the family members should be dependent on the employee and be residing with him.

> Subject to Management approval, the employee has an option to change his home town due to family circumstances once in his career in BEML.





A) Leave Entitlement and Utilization The leave entitlements are as under :-

Wage Groups Officers in
Type of E to S4 and Grade-I &
Leave AtoD female above
Casual 7 days 12 days 12 days
Sick 15 days
Leave 15 days ( accumulation Not
limit is Applicable
90 days)
Vacation 18 days 18 days
Leave (accumulation ( accumulation Not
limit is limit is Applicable
220 days) 220 days)
Earned 2 Y2 days 2~days
Leave per month per month
( accumulation (accumulation
limit is limit is
300 days) in 300 days
case E to S4
Not employees
Applicable opt for
1eave pattern
and not
eligible for
Sick Leave I
Leave The leave credit is on a calendar year basis except for Earned Leave which is on a monthly basis.



Attendance bonus (pay + DA) will be paid subject to eligibility for unutilized casual and sick leave of wage group A to D employees only.

Subject to eligibility, VL I EL can be encashed once in a calendar year and the amount will be equivalent to Pay + DA drawn by the employee on the day of encashment.

Leave can be availed with prior permission in the prescribed form.

Casual Leave cannot be combined with SL or VL I EL.

A maximum of 3 days CL at a time can be availed by employees in wage group A to D and 10 days including Sundays & Holidays by employees in Wage Group-E to S4 and officers including female employees in all groups I grades.

Female employees are entitled to Maternity Leave as per rules which is presently 12 weeks for delivery, limited to 03 deliveries during their period of service with the companty.

Employees are also eligible for extra-ordinary leave for notified chronic diseases and employment injury, subject to terms and conditions.

B) Medical Benefits

BEML provides the following medical facilities to its regular eligible employees and their dependent family members :-

> Outpatient I inpatient treatment in company hospitals.

> Reimbursement of expenditure for outpatient treatment subject to monetary limits notified from time to time.

> Reimbursement I direct payment for inpatient treatment in company recognized hospitals.

> Reimbursement for treatment of chronic diseases.

If one is posted at KGF. he will have the benefit of medical treatment in company hospital for himself and his dependent



family members. In case of necessity, the employee or his family members are referred to reputed hospitals at Bangalore or elsewhere for specialized treatment under Direct Billing arrangement. Thus, proper health care is ensured for the employee I his dependent family members.

In case of posting at Bangalore, the treatment is provided either at company hospital or in reputed hospitals on direct billing arrangement. The employee will also have the option to obtain treatment at recognized nursing homes and claim reimbursement at approved rates.

At Mysore, employees can avail treatment in recognized hospitals on direct billing arrangement or in other recognized nursing homes I hospitals on reimbursement basis at approved rates.

In other places where Regional I District Offices are located, recognized hospitals provide treatment to employees I their dependent family members on direct billing arrangement. Employees can also avail treatment in other hospitals and claim reimbursement at approved rates.

For outpatient treatment, employees in Wage Group S4 & below including those not attached to BEML Medical Centre at Bangalore I KGF, are paid a fixed sum half-yearly ofRs 8501- to defray the expenditure incurred by them on such treatment.

For officers, the outpatient treatment limits (other than those attached to company Medical Centre at KGF I Bangalore) are as under and can be claimed on actual basis by submitting prescriptions, bills. etc.

Grade Annual Limit (Rs)
I 2900
II/mlN 3500
V 4100
VI 7700
VII & vm 8900
IX&X 10100 55


The company has established hospitals at KGF and Bangalore for employees based in these places. In addition, the company has also recognized hospitals at Bangalore, Mysore and all over India for providing the required treatment.

To avoid hardship, direct billing hospitals have been notified in which the employees can avail treatment and the company will settle the bills.

To be eligible for treatment under the company scheme, the family members should be dependent on the employee and be residing with him.

List of recognized hospitals are notified from time to time for information of employees.

The employees are required to contribute on a monthly basis, which will be recovered by payrolls, to be covered under the scheme.

C) Welfare Benefits

1. Educational facilities I reimbursement

~ Schools run I aided by company is available at KGF and Bangalore complexes for study upto XII Std.

~ Reimbursement of school fee to employees not availing company school facilities as per notified scheme.

~ Rs 85/- per child subject to a maximum of 02 children from UKG to Graduation level.

~ Scholarships to children of employees.

~ Rs 300/- per month as Merit Scholarship to children of all employees I officers subject to limitations on number and for pursuing professional courses like Engineering, Medicine, etc.

~ Rs 150/- per month as Merit-cum-Means Scholarship to children of employees in Wage Group S4 & below for



pursuing PUC /llth & 12th Std and Degree / Diploma courses, subject to limitation on number of scholarships.

)- The company also places importance on the employee equipping himself with latest inputs by acquiring additional / professional qualifications. This will also help the employee in faster promotional opportunities and in occupying important positions in the company.

)- To encourage, the employees, the company also provides lumpsum cash incentive and reimbursement of examination fee. Prior approval of Management for pursuing higher / professional studies is necessary in such cases.

2. Uniform & Footwear

)- Uniforms with stitching charges and footwear are provided for all employees and entry to the factory / office permitted only if the employees are wearing the uniform / footwear.

)- The scale of issue will be 02 sets of uniforms per year and 01 pair of shoes and socks / 02 pairs of chappals for female employees every 02 years.

)- For employees in direct working category, safety shoes are provided every 18 months.

)- For staff like Security, Medical, Fire Services, etc., uniforms are issued keeping in view the nature of duties.

)- Winter uniform are issued to employees in workmen category in specified places of Regional/ District Offices in lieu of 0 I set of regular uniform as per notified rules.

)- Specified items like Raincoats, Gum Boots, etc., are provided to the identified staff as per notified procedure.



3. Company Accommodation I Leasing

)- Company provides accommodation to employees and officers to the extent available.

)- Company townships at KGF, Bangalore and Mysore.

)- Company owned houses where Regional I District Offices are located.

)- Company lease I self-lease facility to officers in GMs & above grade. Lease accommodation for officers in Grade- V & above not provided with company accommodation.

)- Hostel accommodation for trainees and others at KGF. )- Assessed rent recovery for the accommodation provided 4. Family Planning Incentives

)- Incentives for small family norms including grant of increment.

)- Special Casual Leave of 06 days for Male employees, 14 days for Female employees and 07 days for Male employee ifhis wife, will be granted for undergoing family planning operations. (Sundays & holidays are ignored)

5. Mementos and Gifts

)- For 10 years service - Certificate

)- For 15 years service - A wrist watch and certificate )- For 25 years service - A suitcase and certificate

)- Annual Gift every 2 years

)- Superannuation Gift


)- Group Savings Linked Insurance Plan with UC based on employees contribution enabling lumpsum payment in the event of death and return of savings on separation.



» Scheme with LIC for payment of lump sum amount of Rs 3 I 41 5 lakhs in the event of death with 90% contribution from the company and 10% from employees for an annual premium.

» Compensation for Employment Injury. » First Aid facilities.

» Flight Insurance Cover.

» Assistance to Drivers of Company vehicles involved in


» Ambulance for medical emergencies. » Banking services! ATM facility.

» Sports facilities.

» Assistance to employees affected by Natural Disasters » Encouragement to Co-operative efforts I Cultural! Fine

Arts activities.

» Death Relief Fund with contribution from employees for lump sum payment in the event of death and separation from services of the company.

» Hearse Van services.

E) Cultural and Co-operative activities BEML encourages the following :-

» Associations involved in promoting literary and cultural activities

» Conduct of cultural programmes for the benefit of the families and the community in and around the establishment.

» Recreation and club activities for employees and officers.



> Co-operative efforts aimed at providing food items, household articles and housing activities.

> The assistance from BEML include provision of land, building and finance.

> Community Hall at KGF and Kalamandira at Bangalore have been constructed to facilitate employees for conducting marriages of their children or for any other social functions on rent charged at nominal rates.





1. Conditions of Service

> IT an employee is in Wage Group A to S4, then he is covered by the provisions of the Certified Standing Orders of the company. Officers in Grade- I & above are covered by the Service I CDA Rules.

> The Standing Orders give the details of the working conditions during service in BEML, guidelines to employees for adhering to rules & regulations, leave benefits, disciplinary action procedures for misconducts, etc.

> The Service Rules gives details of service conditions for those not covered by the Standing Orders provisions.

> The CDA Rules is a compendium of guidelines for ensuring discipline and actions required to be taken in cases of misconducts.

> Every employee or an officer of the company should be fully conversant with the Standing Orders I Service and CDA Rules to ensure trouble free working while in service.

> To carryout the functions, the powers are delegated by the Govt. of India to the Board of Directors, who in turn delegate powers to the top management and other functionaries of the company. There are limitations on powers to be exercised and financial concurrence where required is a prerequisite for exercising the powers involving financial implications.

> Adherence to rules and regulations is advisable as violations call for disciplinary action which may affect the career prospects of the individual.

> Apart from the general guidelines given in Standing Orders I Service and CDA Rules, employees are required to desist from leaking out sensitive information pertaining to the company to its competitors or undesirable persons I agencies.



» When in doubt, employees I officers are required to refer to the notified rules I manuals or seek advise from higher authorities for proper understanding and implementation of the company policies.

» Employees are required to constantly update their skills for ensuring high levels of performance and quality output. This will help the company for achieving cost control, higher productivity and profitability besides sharing the gains with the employees in the form of higher incentives and benefits.

» To sum up, it is necessary that every employee of the company is aware of the terms and conditions of service for smooth functioning of the company operations.

2. Transfer I Redeployment of personnel

» Every employee of the company is required to serve anywhere in India as per condition of employment and requirement of the company.

» Periodical transfers are effected based on requirements and vigilance guidelines.

» On transfer, employees are eligible for TA I DA benefits like fare reimbursement, transfer grant, disturbance allowance, cost involved in transportation of personal effects, joining time, etc. Details are available at Chapter V-E.

» Request for transfers considered on the basis of requirement and need.

» Retention of company accommodation I payment of lIRA at the previous place of posting I medical facility for family members in case of a need to retain the family at the previous place of posting.

3. Exerting outside influence

Due to operational reasons decisions are made by Management for positioning the right kind of manpower to man important and



critical positions in the company. It is seen sometimes that employees approach external and political figures to bring pressure for favourable postings, transfers, etc. Such acts are prohibited under company rules as there is a grievance redressal mechanism within the company. Employees are advised to adopt the existing procedures and not bring influence from external agencies.

4. Involvement in activities of other organizations

It is seen that employees take part in certain kinds of activities outside the organization to become heads of certain bodies, societies, etc. As per the rules of the company, before contesting or getting nominated to such posts, it is necessary to obtain approval of the Management as otherwise it will become an act of indiscipline. Employees are therefore advised to follow company rules before indulging in such activities.

s. Political activities

Keeping in view the status of BEML viz., being a Public Sector Undertaking wherein majority of the shareholding is held by the Government of India, the employees of BEML are prohibited from indulging in any political activities like canvassing, contesting for elections, etc.

6. Interaction with Press and Electronic Media

As per company policy, only CMD and Directors are authorized to interact with the Press or Electronic Media. All other officers I employees are therefore advised to refrain from revealing any information about the company either to the Press or Electronic Media, except for product promotion.

7. Grievance Redressal

» A mechanism available to the employees and officers to represent to higher authorities their grievances regarding denial of service benefits like pay and allowances, promotions, etc.



» The procedure has three stages to ensure transparency and involvement of higher officers in case of any difficulty faced by lower level officers to redress the grievances.

» The procedure enables satisfaction to the personnel in seeking grievance redressal from the authorities concerned in cases where they feel that the benefits due to them have not been granted.

8. Safety & Protective Appliances

» Safety and Protective appliances are provided as per Factories Act provisions for ensuring safety during work.

» Employees are required to wear the appliances for ensuring safety.

» Employees are required to observe safety precautions as notified and not indulge in unsafe working.

» Any threat to safety of self, co-employee or to machines are to be immediately brought to the notice of concerned for remedial action.

» Fire Fighting services are available in factories. In case of fire, the Fire Services should be summoned immediately.

» Periodical mock exercises are conducted by the Govt authorities like Factory Inspectorate, Police to train employees.

9. Telephone facility

» For officers occupying key positions, telephone facility is provided at the office I residence and mobile phones.

» The policy envisages provision of telephone I mobile phone facility arranged by the company or reimbursement of amounts as prescribed in cases where the facility is not arranged by the company.



» DGMs & above and Departmental Heads are provided with residential 1 mobile phone.

» Officers in Grade-IV & above are reimbursed rentals of Rs 180/- per month.

» Employees 1 Officers are required to know the telephone numbers so that they are able to contact the superior officer in case of necessity.

» The matter is decided by Telephone Advisory Committee and approved by competent authority.

10. Resignation I Cessation of Employment

After joining the services of BEML, an employee is required to obtain permission for ceasing to be in employment on account of resignation, etc. In cases where an employee wishes to resign, he is required to clear all the dues, serve the required notice period I contractual obligations, etc. Further, as per rules, disciplinary action under progress can also be continued even after cessation of employment. Employees are therefore required to be aware of the provisions of rules before seeking approvals for resignation.





A) Statutory Benefits

The company is covered by the provisions of the following Acts:~ Provident Fund

~ Profit Sharing Bonus
~ Maternity Benefit
~ Employment Injury
~ Gratuity
~ etc
1. Provident Fund ~ All employees are covered under Provident Fund Rules from the first day of their employment. They are required to contribute 12% of Pay + DA. The company's contribution is also 12%.

~ Out of company contribution. 8.33% on Rs 6500/- is remitted towards Employee Pension Scheme. The balance amount is remitted to BEML PF Trust for investments. growth and interest payment on the amount in the account of the employee.

~ The employee at periodical intervals can avail refundable 1 non-refundable loan as per rules for meeting expenditure in connection with social obligations 1 medical 1 education 1 construction of house.

~ Employees are provided annual statement of accounts to update their knowledge about their accumulations.

~ The PF rules also provide for group insurance scheme which provides for payment to family in the case of unfortunate death of the employee.



2. Profit Sharing Bonus

» Payment of Bonus is made after finalization of accounts and as per provisions of Payment of Bonus Act.

» For those employees not covered by the provisions of Bonus Act, Annual special incentive is paid.

» Officers are paid profit linked incentive subject to parameters laid down under the scheme.

3. Maternity benefit

~ The company follows the existing rules prescribed under the Act.

~ Female employees are eligible for 12 weeks leave for delivery and other benefits prescribed under the Act limited to 02 deliveries.

4. Employment Injury

» In case of any injury during employment, employees are eligible for monetary compensation, medical treatment as well as leave in case of necessity.

~ In case of employees covered by ESI, the benefits will be extended by the ESIC.

S. Gratuity

o Employees are entitled for Gratuity benefits as provided under the Act viz., 15 days Pay + DA for every completed year of service subject to maximum of Rs 3.50 lakhs and entitled to receive the same on cessation of employment in BEML provided they have rendered a minimum of 05 years continuous service.

o Gratuity is not payable in case the employee is involved in acts resulting in loss of company property or moral turpitude.



B) Superannuation I Retirements

)- As per existing rules, the age at which an employee I officer superannuates from the services of the company is 60 years.

)- An employee or an officer can voluntarily retire after attaining the age of 55 yrs or 50 yrs respectively by giving three months notice.

)- An employee on medical grounds can also opt for retirement with compensation and subject to notified terms and conditions and acceptance by the Medical Board I Management.

)- A special scheme of voluntary retirement with compensation is also notified from time to time together with eligibility conditions to enable the employees to opt for the same.

C) Benefits on Superannuation I Retirement

The benefits available during service have already been mentioned in the handbook. It is also necessary for an employee I officer to know about the benefits available at the time of superannuation I retirement to plan for a comfortable retired life. The benefits are as under ;-

)- Out-patient I testing facility at company medical centres for self and spouse, subject to one time contribution.

)- Medical insurance scheme for in-patient treatment for self and spouse under which 50% of the premium is borne by the company.

)- Gratuity calculated at 15 days salary for every completed year of service.

)- Balance amount available in the PF account on account of contributions made by the employee and the company.

)- Encashment of unutilized ELI VL subject to maximum limits prescribed.



» Refundable amount under GSLI scheme. » DRF contributions for long service.

» Superannuation gift from the company.

» Pension amount as per the scheme of PF organization

» Transfer grants as per rules for settling in a place of choice limited to expenditure from the last duty station to declared hometown.

» Extended LTC benefits for a period of six months for officers in case of option for actual travel.

» Car at determined values if the officer had availed the same under the leasing facility.

» Discounted rates I write-off facility for home office furnishing, etc.

» It is necessary for the employee to plan for sufficient contributions into PF during service and accumulate EL I VL for a comfortable retired life.

D) Death Benefits to FamUy

It is important for the employee and the family to know about the benefits available to the family in case of an unfortunate death during service. It is in this context the employee I officer is being informed about the benefits available and precautions to be taken while in service for ensuring smooth transfer of benefits to the nominee.

» Update and modify nominations from time to time during service to ensure benefits being available to the desired nominee. This is to avoid litigation among the claimants after the death of the employee.

» Gratuity calculated at 15 days salary for every completed year of service.



> Balance amount available in the PF account on account of contributions made by the employee and the company.

> Encashment of unutilized EL I VL subject to maximum limits


> Lumpsum amount under GSLI scheme. > DRF benefits including funeral expenses.

> Pension amount as per the scheme of PF organization.

> Transfer grants as per rules for settling in a place of choice limited to expenditure from the last duty station to declared hometown.

> Availability of company accommodation for a fixed period if the nominees are residing therein.

> Group Insurance Scheme amounts under the PF scheme as notified from time to time.

> Death benefit under a scheme with LIC with compensation of Rs 3.0, Rs 4.0 or Rs 5.0 lakhs depending on the level of the employee while in service.

> Hearse van facility wherever available.

> LIC taking over the responsibility of payment of HBA if any availed by the employee and coverage under the insurance scheme notified from time to time.

> Write-off of amounts for furnishing provided at the home office





1. Holidays

In accordance with the statutory provisions, company declares 12 days in a calendar year as national / festival holidays. These holidays will generally be for the following :-

National Holidays

» Republic Day

» Independence Day » Gandhi Jayanthi

State Holiday

» Kamataka formation day / Any other state holiday

Festival holidays

In case of any of national holidays / festivals falling on a weekly holiday, suitable adjustments will be made in declaration of the holidays.

2. Celebration of Important days

The following days are celebrated with the involvement of Top Management personnel and employees I families:

» Republic Day

» BEML Foundation Day » Independence Day

» Kamataka Rajyothsava

1. Remembering Important Occasions

Generally, the company employees observe mourning or take an oath for maintaining safety, integrity, etc., on the following days :-

» 30th January - 2 minutes silence remembering the father of

the nation Mahatma Gandhi » Anti-Terrorism day

» SadbhavanDivas

» Quality Pledge

» Vigilance Pledge

» Safety Pledge





As stated in the beginning, this handbook is intended to be a source of information regarding the benefits and functioning of the organization. This would enable the employee to know about the benefits available and the need for efficient and dedicated working while in service and also know about the benefits at the time of getting separated from the organization.

It is expected that the handbook would also serve as a guide for removing confusions, if any, in the mind of the employee and intended to improve the general discipline amongst the employees by providing the right information which would go a long way in making the organization efficient, profitable and grow from strength to strength.





Genend Bulletin No:1199

1.0 Management is pleased to notify the revision of scales of pay for Board Level Executives and below Board Level Executives with effect from 01.01.2007. Accordingly, the Scales of Pay in respect of Board Level Executives and below Board Level Executives who are on the regular rolls of the Company as on 01.01.2007 is hereby revised as per details given in the following paragraphs.

2.0 Scales of Pay:

2.1 The existing and the corresponding revised Scales of Pay for Board Level and below Board Level Executives with effect from 01.01.2007 will be as under:

Board Level Executives

Pre-Revised Scales of Revised Scales of
Grade Pay Pay
IRs] IRs)
CMD 27750-750-31500 80000 - 125000
FUNCTIONAL 25750-650-30950 75000 - 100000
DIRECTOR Below Board level Executives

Pre-Revised Scales of Pay Revised Scales
of Pay
Grade IRs~ (Rsl
I 6550-200-11350 12600 - 32500
II 8600-250-14600 16400- 40500
III 10750-300-16750 20600 - 46500
IV 13000-350-18250 24900 - 50500
V 14500-350-18700 29100 - 54500
VI 16000-400-20800 32900 - 58000
VII 17500-400-22300 36600 - 62000
VIII 18500-450-23900 43200 - 66000
IX 20500-500-26500 51300 - 73000
X 23750-600-28550 62000 - 80000 73


2.2 Duration:

2.2.1 The duration of the revised Pay Scales will be for Ten years w.e.f 01.01.2007.

3.0 Annual Increment:

3.1 Annual Increment will be granted @ 3 % (Three) of the revised running Basic Pay and the resultant amount will be rounded up to the next Rs.lO/-

4.0 Dearness Allowance:

4.1 100% Industrial Dearness Allowance (IDA) neutralization is adopted in the revised scales of pay. The DA admissible to Executives in the revised Scales of pay as on lot January 2007 will be 'Nil' as the applicable amount ofillA drawn by them as on 1st January 2007 in the 1997 Salary structure is merged in the revised Basic Pay, with All India Consumer Price Index (AICPI2001=100) link point of 126.33 as on 01.01.2007. The first installment of DA in the 2007 Salary structure would become due from l't Apri12007. The rates of DA payable from 1 st Apri12007 onwards would continue to be worked out as per the existing system, linked to AICPI 126.33 (2001=100) as on 01.01.2007.

The revised rates of DA payable to Executives from lst April 2007 and thereafter would be as follows:

DA payable for Quarterly Avg. Rate ofDA
the Quarter applicable payable (% of
commencing from f2001=100) B8Sic P8Y)
01.04.2007 127.33 0.8
01.07.2007 12B.00 1.3
01.10.2007 131.67 4.2
01.01.200B 133.67 5.8
01.04.200B 134.33 6.3
01.07.2008 138.00 9.2
01.10.200B 142.67 12.9
01.01.2009 147.33 16.6
01.04.2009 147.67 16.9 74


4.3 Rate ofDA payable during each Quarter commencing fromlst July 2009 and onwards would be notified by the Corporate Office from time to time.

5.0 Fixation of Pay in the Revised Scales of Pay

5.1 The pay of Executives who were on the rolls of the Company as on 01.01.2007 and continue to be in the service of the Company as on date of issue of this General Bulletin will be brought on to the revised scales of Pay in the following manner:

a) Basic Pay (without reckoning the Additional Increments granted w.e.f 01.01.2007 and excluding the annual increment falling due on 01.01.2007) in the existing scale of pay (1997) as on tot January. 2007;


b) Personal Pay (other than the Additional Increment granted w.e.f 01.01.2007 vide GB No.1167 dt. 6.10.2007), if any. drawn as on 10' January 2007, which was granted to protect the Basic Pay on appointment and which is reckoned as Basic Pay for all purposes;


c) Applicable amount of Industrial Dearness Allowance (IDA) @ 78.2% as on pt January 2007, in the 1997 Salary structure, on the Basic Pay (without reckoning the Additional Increments granted w.e.f 01.01.2007) actually drawn as on 01.01.2007 (before promotion, if any, effected w.e.f 01.01.2007) and Personal Pay as at (b);


d) Fitment Benefit of 25% (1\venty five) of (a) + above;


The total of (a) +(b) + (c) + (d) would be the aggregate amount.



5.2 The aggregate amount arrived as at Para 5.1 would be rounded up to the next Ten rupees and will be fixed as the revised Basic Pay as on 01.01.2007. Illustration of pay fixation is at Annexure-L In case the revised Basic is less than the minimum of the revised scale, it will be fixed at the minimum of the scale.

5.3 As per the OPE OM dated 26.11.2008, if any extra ordinary increment(s) and! or increase in the Pay in respect of Executives have been granted with retrospective effect, which affects the revision of Pay as on 01.01.2007, such increment and!or increase in pay will be ignored for the purpose of FitmentJPay revision. Accordingly, the Additional Increments granted to the Executives w.e.f 01.01.2007 in terms of GB No.1167 dt. 06.10.2007, as Personal Pay is ignored for the purpose of Fitment

5.4 Where Executives drawing Pay at two or more consecutive stages in the existing scale get bunched, then, for every two stages so bunched, benefit of one increment shall be given.

5.5 The higher of the amounts arrived as at Para-5.2 OR 5.4 will be the revised Basic Pay as on lot January 2007.

5.6 Executives who reach the maximum of the revised scale of pay (stagnation) would be granted Stagnation Increments @ 3% of the revised running Basic Pay, one after every two years, upto a maximum of three Stagnation Increments, provided the Executive gets a performance rating of "Good" or above in his I her immediately preceding 1\\'0 year's Annual Performance Appraisal.

5.7 In cases of Executives who were promoted to higher Grades w.e.f lot January 2007, the pay is to be first fixed in the revised scale of the lower post in the manner explained above and then their pay is to be fixed in the revised scale of pay of the promoted post.

5.8 Executives appointed on or after 18t January, 2007



5.8.1 All Executives who joined the Company on or after 01.01.2007 would be deemed to have been appointed/recruited directly in the revised Scales of Pay and NO. Fitment Benefit will be admissible to them. Their Pay shall be fixed in the revised pay scales as indicated in the following paragraphs.

5.8.2 Executives appointed on or after lot January 2007 at the minimum of Pay in the 1997 Scales of Pay Pay of executives who were appointed on or after 01.01.2007 at the minimum of the pre-revised scales of Payor already issued with Offers of Appointment indicating the said pay, will be fixed at the minimum of the corresponding revised scales of pay w.e.f the date of appointment.

5.9 Executives appointed on or after lit January 2007 in the1997 Scales of Pay and who had been granted Advance Increment(s) etc.

5.9.1 In case of those Executives appointed on or after 01.01.2007 and who were granted advance increment(s) plus lump sum amount in the pre-revised scales of pay (1997 scales), their pay in the revised scales (2007 scales) will be provisionally fixed at minimum of the corresponding Revised Scale of Pay (2007) with effect from the date of appointment. All such cases of pay fixation in respect of executives appointed on or after 01.01.2007 who have been granted advance increment(s) etc in the pre-revised scale (1997 scales) should be sent to Corporate Office for due consideration and final pay fixation.

5.9.2 In cases where pay fixation had been done in the pre-revised scale (1997) taking into account the Basic Pay & other applicable items last drawn in the previous Organization (1997 Scale), pay protection would be granted in the revised Scale (2007) also. In cases of such Executives who joined from other PSU s etc, the protection would be based on the revised (2007) last pay drawn in the previous Organization, provided the Scales of Pay in the previous Organization have also been



revised and a revised Last Pay Certificate is produced. Otherwise, the Pay shall be fixed as at Para's - OR 5.9.1 as the case may be.

5.9.3 Pay fixation in respect of Executives" if any, who had been appointed in the Company between lit January 2006 and 31 It December 2006 from Central Government, State Government, Public Sector Undertakings following CDA pattern etc., shall be dealt with separately, keeping in view the revision of Pay scales effected in the Government etc., w.e.f lit January 2006. Such Executives will not be eligible for fixation benefits as envisaged in Para-5.l to 5.5. Pay in the revised scale in such cases will provisionally be fixed at the minimum of the revised scales of pay.

5.9.4 In respect of Executives (including cases of immediate absorption, re-employed pensioners, Ex -servicemen etc) who have already been appointed/re-employed in the Company on or after lit January 2007 but before issue of this General Bulletin, from the Central Government, State Government, Public Sector Undertakings following CDA pattern etc., the pay will be refixed in the revised scale as if they have been appointed directly in the revised scale, as per the extant rules applicable in such cases.

5.9.5 Executives, if any, falling under the categories at Para- 5.9.1 to 5.9.4 is to be referred to the Corporate Office, with necessary details, for due consideration and fmal fixation of pay.

5.10 As the wage revision in respect of Employees in Wage GroupS4 & below due w.e.f 01.01.2007 is not yet finalized, pay of employees promoted/appointed to posts in Grade-Ion or after 01.01.2007 would provisionally be fixed at the minimum pay in the revised Grade-I scale (2007), They will draw their salary (Basic Pay & DA) in the revised Grade-I scale (2007) OR continue to draw their salary (Basic Pay, Dearness Pay and DA) in the pre-revised scale (1997), whichever is higher. Their



final pay fixation in the revised scale (2007) will be done upon finalization of wage revision of the employees due w.e.f 01.01.2007.

5.11 Pay fixation on promotions effected on or after 1" January 2007.

5.11.1 One notional increment equal to the increment being drawn by the Executives in the revised pay scale before such promotion would be granted and pay fixed in the promoted scale and rounded off to the next multiple of Rs.1 0/-. In case the amount so arrived at is less than the minimum of the promoted scale, the pay will be fixed at the minimum of the promoted scale. illustration of pay fixation on promotions as above is detailed in Annexure-If

5.11.2 Other existing provisions for pay fixation on promotion (like re-fixation on the date of Annual Increment) would continue to be applicable.

5.12 Drawal Of Increments:

5.12.1 Annual Increments would continue to be granted as per the existing procedure/practice, in the revised scales of pay w.e.f 01.01.2007. In respect of Executives, if any, who were due for Annual Increment on 01.01.2007, the pay drawn in the revised scale is to be fixed with reference to the pay drawn by them in the pre-revised scale as on 01.01.2007 (without adding the Annual Increment) and the Increment due on 01.01.2007 is to be granted in the revised scale of pay.

5.12.2 In respect of executives who are appointed or promoted to higher Grades on or after 01.01.2007, the first increment after appointment/promotion would be granted w.e.f the 1st of the month in which they are confirmed. The date of their next annual increment would be re-scheduled to I" January/I II April/lit July/ 1 st October of the subsequent year, as the case may be.

6.0 House Rent Allowance (lIRA)



6.1 HRA at applicable rates as below on the revised pay scales will be paid with effect from 01.06.2009.

Cities with Population HRA rate per month
50 Lakhs &. above. ~O% of Running Basic Pay
5 to 50 Lakhs 20% of Running Basic Pay
Less than 5 Lakhs 10% of Running Basic Pay 6.2 lIRA already paid to the Executives during the period 01.01.2007 to 31.05.2009 will remain unchanged.

7.0 Leased Residential Accommodation (Self lease & Company lease)

7.1 Until further orders, the payment of Lease Rent to Officers living in Self-leased/Company leased accommodation will be regulated on the basis of individual Executive's entitlement as of May 2009 (pre-revised scale).

8.0 House Rent Recovery:

8.1 Separate Orders will be issued in this regard, in due course of time. Till such time, recovery of House Rent for company provided quarters would continue on the basis of recovery made as of May 2009.

9.0 City Compensatory Allowance (CCA)

9.1 Payment of CCA to Executives stands dispensed with effect from 01.01.2007. Payments made from 01.01.2007 upto the date of this General Bulletin will be adjusted against the arrears payable as per provisions of this General Bulletin. If no arrears accrue in certain cases, CCA paid w.e.f 01.01.2007 would be recovered from their salary for the month of July 2009.

10.0 Other Allowances:

10.1 The existing allowanceslbenefits made to the Executives through various notifications from time to time will remain unaltered.



10.2 Payment of 22% Personal Pay to Executives of Technology Division:

10.2.1 The 22% Additional payment on running basic pay (Pre-revised) granted as Personal Pay to Executives working in Technology Division will be restricted to the payment received by the Executive concerned in the month of May 2009 (pre-revised basic) as a lump sum monthly payment until further orders.

10.3 Non Practicing Allowance:

10.3.1 The Non-Practicing Allowance payable to the Medical Officers will be restricted to the amount actually drawn in the pre-revised scale in line with the existing rules by each Medical Officer as of May 2009 (subject to Max. ceiling of Rs.4500/- p.m) and the same will be paid as lump sum payment until further orders.

lOA Professional Up-gradation Allowance:

1004.1 The payment of Professional Up-gradation Allowance to Executives in Grade-N & above will be restricted to the eligible amount as of May 2009 (pre-revised scale) by each individual Executive and the same will be paid as lump sum payment as per the existing practice until further orders.

10.5 Payment of Transfer Grant:

10.5.1 Until further orders, the Transfer Grant for Executives as applicable shall be on the basis of pre revised Basic Pay as of May 2009, as the case may be.

11.0 Family Planning Increment:

11.1 Executives who have been drawing the Special Increment in the form of Personal Pay for having undergone the Family Planning/Sterilization operation prior to l't January 2007 would be allowed to draw the Personal Pay equivalent to the lowest rate of increment in the revised scale (2007) corresponding to the pre-revised pay scale against which the individual had earned the Personal Pay, w.e.f pt January 2007. Executives who/ whose spouse have undergone the sterilization operation on or



after 1st January 2007 would be allowed the Personal pay based on the increment rate in the revised scale of pay (i.e. @ 3% of the minimum of the scale. rounded up to the next Rs.l 0), as per the extant rules. This Special Increment would not be reckoned as Basic Pay for computing Dearness Allowance.

12.0 Provident FundlEmployee Pension Scheme:

12.1 Consequent upon revision of the pay scales, Employer's as well as Employee's Contribution to the Provident Fund and Employees Pension Scheme will be recalculated and recovered at the applicable rate viz., 12% of the Basic Pay + DA.

13.0 Gratuity:

13.1 In view of the Pay revision being effective from 01.01.2007, Executives separated from the services of the Company on or after 01.01.2007 and drawn gratuity as on date of separation will also be eligible for differential amount of Gratuity, if any, subject to a maximum ceiling limit of Rs.3.50 lakhs.

14.0 Payment of Arrears:

14.1 Payment of arrears from 1"t January 2007 onwards to Executives who were on the rolls of the Company as on 15t January 2007 and who have joined thereafter will comprise of amounts arising out of the following:

a. Revised Basic Pay

b. Revised DA;

c. Eligible Increments;

d. Fixation of Pay on promotion;

e. Family Planning Increment;

f. EL Encashment;

g. Terminal Benefits viz., Provident Fund & Gratuity as the case may be.



14.2 In respect of Executives who are on the rolls of the Company on the date of issue of this General Bulletin, payment of arrears due will be made in two equal installments, the first installment of arrears will be paid along with the salary payable for July 2009 and the second installment will be released during the FY 2010-11 as per eligibility.

14.3 Executives who have ceased to be in the services of the Company after 1st January 2007 due to Superannuation, Premature retirement, Resignation with prior permission and Death (Nominee (s) in case of Death) will be eligible for the revised pay and arrears as per the provisions of this General Bulletin, on a pro-rata basis, wherever due. Executives, who have taken voluntary retirement under Company VR Scheme, will only be entitled for salary revision arrears, if any. Payment of arrears for the above cases will be notified separately.

14.4 Recoveries like Notice Pay, if any, to be effected from the separated Executives is to be recalculated and recovered. Similarly, any other recovery due from the ExecutiveslExOfficers of the Company will be fully adjusted against the arrears due to them.

14.5 Benefits of revised Basic Pay and allowances in terms of this General Bulletin and consequent payment of arrears shall not be applicable to Executives who ceased to be in the services of the Company on the following ground on or after 1st January '2007:

a. Dismissal;

b. Resigned and left without permission or notice;

c. Resigned and left where disciplinary action against himlher had already been initiated and was in progress



d. Resigned and left without due notice where bond liability/payment of liquidated damages etc had not been discharged at the time of leaving the Company;

e. Abandoned the Service;

f. Absconding from Service.

IS.O.Personal pay (Additional Increments) granted w.e.f .1.2007 and Dearness Pay COP) & Dearness Allowance COA) drawn w.e.f 1.1.2007

15.1 The actual Basic Pay drawn w.e.f 01.01.2007 (including additional increments) granted w.e.fOl.Ol.2007 in terms ofGB 1167 dt. 6.10.2007, Dearness Pay (OP) paid w.e.f 1'1 January 2007 in terms of GB No.1188 DT. 24.7.2008, Dearness Allowance drawn w.e.fOl.Ol.2007 etc are to be adjusted in full against payment of arrears to be made as per this General Bulletin.

16.0 Recoveries of Income Tax Etc:

16.1 Recoveries towards Income tax, Professional Tax etc., are to be effected as per Rules. Complex/Division/Offices may take up the matter of extending relief under Section 89 (1) of the Income Tax Act, with the concerned Income Tax authorities.

17.0 Basic Pay Related Matters:

17.1 Merely because of revision of Basic Pay/Scales of pay, there will not be any upward revision in the entitlement to various AllowancesIBenefits (other than those mentioned in this General Bulletin as also through other Company notifications) related to Basic Pay. Such A1lowanceslBenefits will continue to be paid based on the notional pre-revised Basic Pay/Scales of Pay (1997) scales.

17.2 All other allowances (not revised as mentioned in this General Bulletin), benefits, perquisites and performance related incentives will continue to be paid at the existing rates/quantum.



18.0 Performance Related Payment (pRP) Scheme

18.1 The Performance Related Payment scheme will be notified separately.

19.0 Superannuation Benefit Scheme:

19.1 A scheme on contributory Superannuation Pension Benefit will be worked out by involving Financial Institutions and shall be notified separately. The Management will contribute a sum equivalent to 5% of the monthly Basic pay of an Executive and with an equivalent contribution from the Executive towards the operation of the Scheme.


All issues arising out of the provisions contained in this General Bulletin, which may require interpretation! clarifications, are to be referred to the Corporate Office.




HLUSl'RATION OF PAY FlXATIONlN THE REVISED SCALE (Ref: Para-5.l of General Bulletin No:l199 dated 1']111. July 2009)

IDustration : 1

Grade-[ Pre-revised Scale: 0;)50-200-11350
I-?evised ::1cale : l~(,OO :)":2.500
(a) Prc-rt-visr-rl B;lSic Pay drawn as on R~ 101:=;0
o L.01.2007 (lznortnz Addl, Incrementsl
(b) DA to be merged @ 78. 2°/., or Basic Pay R~. 7037
actuallv drawn as all 01.01.2007
( c) Total of Dasic ... DA - tal +(b) Rs, 180B?
(d) Add Filmc'IlI Bene-Iii (Ii: 2S~" [In (e) R~ 4522
(el I~evised Pay as on 01,01,2007 i.e, lei + rdl I~s, :.2:.2G09
(t) ieevrsed Pay rounded otr to ne-"(t I~s, 10/- I-.?s. nGl0
(p;l Annual Increment due on 01.01.2007- Rs, 680
c!i.:3 '\·0 on running revised Pay
1<0 un dcd to next. I~s. 10 I
(h) 'I'otal 1~C'i'iscd I-lilsk I'ay ;lftcr drawal of I~~ 2:~21)0
Annual Incrnmr-n w, llIl 01012007 Illustration: 2

Grade-VIII Pre-revised Scale: HbOO-450-2J~OO
ieevlsed scale 4:.1200 - (~uOOO
(a) I'n: revised Hask: 1';lY drawn as on I~~. 1 R:>OO
01.01.2007 (Ignoring Addl, Increments
(b) DA to he lHel·gl:il @ 78.2% of B1Wic: Pay R~. l4467
actually drawn as Oil 01.0 l,2007
(e) Tot.ul of Basic + DA - (:.l) +(ll) R~. 321)67
(el) Add Filrncn! Benefit (/;: 25% on (c) Rtl. 8242
(e) I-,'evised Pavas on 01,01,1007 t.e. (cj-l- [d) I~s, 411()9
(Il Revised Pav rounded elf to next Rs, 10 I- Rs, 41210
g) Revi!>ccl pay Iixcd ut Iht: Minimum 1)1" the R~. 43200
(g) Annual Increment due on 01.01.2007- Rs, 1300
~.i.:3 'J·o on running revised Pay
Rounded 10 next Rs.lOJ-
(h) 'I'otnl I~c,d!':('d H;I!':1c I';IY ;Jft('r dr;lw,ll of I~~ '1 'I ,,00
Annual Increment ilH on 01.01.2007 86




IDustration-l (Grade-m to IV)

(Ref: Clause S.11 of General Bulletin No.1199 dated l7'l' July, 20(9)

Oracle-III Pre-revised scale Rs. 10750 - 300 - 167:::>0
I~evised scale I':s. ':'W600 4fJSDll
Oracle-IV Pre-rev ised scale : Rs. IJOOO-350-1g:JSO
I~evised scale : I-?s. '~4900 - .50500
~al Date of Promo Lion to Gracle-IV 01.01.2008
(h) Ba sic Pay in Gmde-III ,IS un 01.01.2008 R!-L QlfH10
before oromotion
(c) Add one Notiona. Increment «T ::JD.{J OIl Basic Rt->. 660
~\·l.,Y of l~s.21/)bO/- In Orade-1I1 as on
() 1 .cJ1.200R rounded off to next m u ltiplr: of
(el) 'I'ota l>- (h) I (e) I~s. :22S20
(l:) Pay fixed in prornotcil (',nl<ic-IV "s on Rs. Q4000
01 .0 1.~()O!::\ (Min lmurn of promoted scale of
p~Jyl IIlmrratioll·2 (Grade- vu to VIllI

Crude- VII

Pre-revised scale Revisecl scale

Rs. 17::;00-400-22300 Rs. 36600 - 62000

Crude- VIII

Pre-revised scale Revisecl scale

Rs. 18500-450-23900 Rs. 43200 - 66000

(a) (h)

1'~Jy fixed in promoted Clmdc VIII ;lS on 01.07.2008

D,J tc of Promotion 1.0 G radc- VIII


Basic Pay in Gmde-VII a~ on 01.07.2008 before uromouon

Rs. 4')450

(c) Add OIle Nol.ioriul Increment «J .. ::J~.':, OIl Buaic

~18.,yof I~s 42450/- in Urade- V11 as on I~s. 14~O

() 1 .n7 .20nR rnundcd off to next m u ltipl« of


(rl)l'otill - (tI) I lel I~s. 'n7:~()



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