Report of the

Fifth
Central Pay Commission
Volume I

ALL INDIA RAILWAYNIENS FEDERATION

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VOLUME =l
CHAPTER

PAGE NO.

BART I : GENERAL I N T R O D U C T I ~
I

I . Introduction

I PART I1 :

1-82

PUBLIC SERVICES MANAGEMENT

SECTION I : ROLE OF PUBLIC SERVICE

2 Scopcof Stud!;

83-88

3. Governance : a Futuristic Scenario

89-94

4. The Changing Face of the Central Government

95-98

Thc Crucial Rolc of Ptiblic Scwices

99- 104

SKCTION i I : PROMOTING EFFICIENCY IN ADMINISTRATION

0

Establishing an Effcicncy Prograrnmc

105-114

Rc-dclining Functional Goals

115-1 18

Contractins out ol'Scn iccs and Prnatrsation

119-126

127- 130

Rcstructuniig thc Go\mnmcnt

I0

Worh Mcthods and Work Environmcnl

137- I4 I

I1

lnipro\ ins Prodticti\fit!

142-145

I2 Automation and Rcduction of Papcr Work

l4(>-149

1.3

Opcnncss

1 SO-153

14

Autonom! and Dclcgation

154- 156

I5

Ensuring Right of Redress

157- 161

162- 164

I6 Managcmcnt lnformation System

SECTION 111 : HUMAN RESOURCE DEVELOPMENT

165- 169

17 Rccruitmcnt
I8

Mobilit!, bctwccn Govcmment and Other Sectors

170- 72

19 Nccd for Contractual Employment

173- 76

20 Train:,rg and Development

177- 81

2I

182-187

Performance Appraisal

22 Promotion Policy

188-202

23 Improving the Motivation Level

203-205

24 Accountability

206-2 14

25 Transfcr Policy

2 15-220

SECTION 1V : OPTIMISING THE SIZE OF THE GOVERNMENT MACHINERY

26

S i x of Employment under thc Central Govemmcnt

221-241

27 WorLforcc Sizc Control

242-246

7 8 Optimiation thc Scrviccs

247-258

29

Optimvation thc Railways

259-269

30

Ontimvation thc Postal Scr! iccs

270-280

31

Opt~mr/ation thc fclccommunication Scniccs

28 1-28')

( ii )

32 Optimi/.ation Thc Ccntral Police Organisations

290-296

33 Optimi/.ation . &fence Scrviccs and Ordnance Factorics

297-306

PART 111 : GENERAL PRINCIPLES FOR PAY

DETERMINATION

SECTION I : THE BACKDROP

34 The General Economic Situation

307-3 17

35 Financial Resowces,of the Central Govcmment

3 18-327

36 Comparison with Public Sector

328-361

37. Comparison with the Private Sector

362-369

38. Comparisons with State Governments

3 70-39 1

39. Remuneration in Public Services the International Experience

392-402

SECTION 11 : PRINCIPLES FOR PAY DETERMINATION

40. Pay Determination - A Conceptual Frame

403-409

4 1. Determination of the Minimum Salary

4 10-429

42. Determination of the Maximum Salary

430-448

I PART IV : CIVILIAN EMPLOYEES2PAY SCALES I

SECTION I : PAYSCALES FOR ORGANISED SERVICES AND OTHER CADRES
43' General Recommendations on Pay Structurc

449-460

44 Classification of Services and Posts

46 1-466

45

Headquarters Organisation of thc Govcmment of India

46 Office Staff in Non-Sccrctariat Organisations

47

All India Serviccs

467-495
496-5 1 1
5 12-523

( iii )

4% Ccnlral Scrwccs Group ' A '

524-553

49 Central S c ~ r c c Group
s
' B'

553-558

5 0 Enginccring Scrviccs

3 59-62 0

5I

Scientific Services

62 1-637

52 Mcdical and Para Medical Services

638-676

53 Group 'DStaff

677-686

54 Workshop Staff

687-7 10

711,.

i ~ ~ l f I c , yI ! /f

' I P.11

( iiittiiiissiiiii

j:h'l:

I:,)

( ~ t J f ~ i l l I I . S . S I ~ Idt i SJ

I(

.\I

jir~icdiwe

1 I
Pay C'oniniission is a pcculiarly Indian inslitut 1011 tocla!
Histoncall\..it is a successor to the RO!A Commissions sct up during thc f3ritisli
pcriod for \.arious purposcs. including for pa!' rc\.rsion. likc thc , 4 1 [ ~ / 7 f . ) ~ ( ~ t ?
( i)mmi.s.sion( 1886-87) aiid thc /.slirigron ('0mhis.sion' ( I9 12- 15) The practice 01.
scttiiig up of Commissions at intcnds w t h the s p c c h objCcli\.cof re\.ising pi]!
and allo\vanccs of Govcriinient cmployccs has beczi discontin~~cd
by niost. if n o i
all. countries of thc ivorki. including ttic United Kingdom. WChave thc uniquc
distinction of having a cunibcrsomc and ccntralixd systcm of'dctcnnination ol'
basic pays that remain unchangcd for inorc than a decade at a tinic. rcinforccd tl!
instaliiicnts of dearness allou ancc which arc rclcascd c\.cn. six months \lost
couritncs have now witched ovcr to qcgotiatcd pa!. scttlcincnts at tl!c dcccntralid
departmental level. in \vhich the salrtrics arc rc\xxd c\.cn' ?car aftcr taking into
account all factors, including thc changc in the cost of living tndcs. Wc' shall. i n
a subscquciit chapter. dcal with the question of ivhat \vould be a bcitcr s!stciii 0 1
pa?; revision.
12

A gat man!. chmgcs takc placc in the structure oi'cinoluincnts 01'

Government cniployees over a decade. It thus bcconics ncccssan. to niodif!. tlic
pa\- structure so as to cnablc Go\wnnicnt cmployccs to lead clean. honest and
rcspcclablc livcs at standards compatiblc ~ . i t h\\.hat their pccrs ha\.c mcan\vhilc
attained or \ h a t thq thcmsclvcs accept as reasonable at thc standards of living to
\vhich k y have bccomc accustomed. Succcssivc Pay C'ommissions havc bccn set
up in the past for evolving compensationpackages for cmployccs at intcnals of 10
to 13 ycars. Thcsc Pay Conunissions cxaminc various issues such as pay and
allo\vanccs, rctircmcnt bcncfits. conditions of service. proniotion policies. ctc and
submit rccomIiicndatiotis thereon.
I ?

Thc Jo~nt Consultati\ c Machinen \<as CoIistitutcd In tlic

Go\cmnicnt in thc !car I000 to promote harmonious relations and scciirc thc
grcatcst Inc;isurc of coopcration bct\xcn thc Go\ ernmait in its c,ipacit! .IS
cmplo).cr aiid thc gcncral bod! of eniplo!ccs (belonging to Groups (* & I)) i n
niattcrs of common coiiccrn

.According to sub-clriusc ( 1 1 ) of clause 20 of thc

1

sclicnic for joint consultativc machinen, rind compulsory arbitration for Ccntral
Govcninmt cnlployccs,niattcrs dctcmiiilod by thc (iovcrnnicnt in accordancc with
llic rccaiinmdations of a Commission of Enquiry arc riot subjcct t o arbitration for
a pcriod of fivc ycars froni thc datc of thc rw~iiiiii~ndation~
Thus Pay
Coniniissiolis arc a dcvicc by which an indcpcndcnt body invcstigatcs tlic dcniands
of Ccntral Govcmmcnt cmployccs and submits its rccor~inici~datiotis
which arc
binding on both Govcmmcnt and its cniployKs. Conccptuall>.tlicy fall short of
a forum for ml,lcdivc bargaining, but he do providc an opportunity for a pcriodic
rcvicw by M ouhidc body in whom bolh thc Go\annicnt and thc cmployecs haw
confidcnic.

I .4
Rcgdngthc junsdiction of' thc Pa\. Commission. Suprcnic Court
has rcpcatcdly hcld h e view that equations ofjob c\.;lltiiitiotiof posts or cquation
of pay or dctcnnination of pay scalcs arc thc primary functions of cspcrt bodics
likc tlic Pay Commission with which nomially thc Courts should not intcrfcrc.
csccpt on any of thc grounds of unjust and arbitran statc action or inaction or on
any gnvc crror having crcpt in whilc fiiing tlic pay scalcs which may \\arrant thc
intcrfcrcnccof tllc COW. Following cstracts of thc jiidgctiicnts throw light on this
aspccr.
I .z
Hon'blc M.H.kg.C h d l w i c c of thc Suprcnic Coun of India while
spcaking for thc Bcncli in Prabhst Kiran Maittiani and Others Vs. Union of
India and Another 199 Suareme Court Cases ( L A 9 270 has made thc
following obscwations :
"Wc arc afraid this is a rnattcr \vhich lay ciitiicl! wthin the sphere of tlic
functions of thc Pa\. Commission. Thc Court cannot ~iitisfactoril~.
dccidc such
disputcd qucstions on thc slcnder material on uhich the lrarncd counscl for the
paitionor relics in ordcr to displacc \\hat appears to us to bc. prima facic. thc cfl'cct
of thc Rcport of the Third Pay Commission of 1973."
I6
111 anothcr cnsq m l y . Statc of (1 P aid Othcrs V s I P Chaurnsia
and Othcrs 1989 ( 1) SCC 12 1. it has bccn rulcd thus

"'l'hc cquation of posts or cquation of pay must t c dctcrmiiicd by

expert W c s llke Pay C.ommission. T h e would be tlic best judgc to cvaluatc thc
naturc ofdutics and rcsponsibilitics of posts. If thcrc is any such actcmiination by
a Commission or Committcc, thc Court should nornially acccpt it. Thc Coun
should not try to tinkcf withsuch cquivilcticc unlcss it is shown that it was madc
with extraneous considcration."

I .7
A Division Bench of thc Suprcnic Court. presidcd ovcr b!. Justice
A.M. Ahmadi, (presently learned Chicf Justicc of India) made thc foHo\ving
observation in Secretarv, Finance Deaartnient and Others Vs. West Beneal
Registration Service Association and Others 1993 (Suuu.) ( I ) SCC.1.

ilISTOHICAL PERSPECTIVE
I .x

7ha*,fir.yt.fiiur
I'UV ( iulrllrl.Y.~ltnr.c

Wc arc thc filUi in h c scrics of Pa!, Coniniissions sct up in thc last

Thc First Ccntral Pay Commission (CPC) was appointcd by thc
Govcmnient 'in May, 1946 and it submittcd its rcport in May, 1947. Thc Sccond
CPC was sct up in August, 1957 and its rcport was submittcd in August, 1959.
Thc.Third CPC was constihtcd in April, I970 and it reportcd in March, 1973. Thc
Fourth Pay Commission was appointcd in July, 1983 and it submittcd its thrcc
reports in Junc and Dcccmbcr, 1986 aad May, 1987. It will thus be noticcd that
wliilc Lhc lint Commission took onc ymr in finalizing its rcport, thc timc taken by
thc subscqucnt Commissions was as follows 50 ycars.

Table :Time Taken by Pay Commissions

Pay Commission

Time Taken

First
Sccond
Third
Fourth

Seltiirg up qf

'W Q'"

Onc ?car
Two ycars
Thrcc ycars
Thrcc ycars and
clcvcn months

I .9
Thc Fourth CPC had rccommcndcd that thcrc should bc a
pcrmanent machinery to undertake periodical rcvicw of pay and allowances of
Central G o v c m e n t employees. This .was considcrcd by thc Govcmncnt, which
did not find it possible to accept and iniplcmcnt this rccommendation. Various
cmployces' unions, associations and co,ifdcrations wcrc not satisfied with this
dcclsion of the Govemmcnt. They w r c prcssing o w r the years for thc acceptancc
and implementation of this rccomnicndalion. Thc matter was discussed in a
number of meetings of the National Couricil of thc Joint Consultative Machincry.
Finally, in September, 1993Government, without agreeing to implement the above
rccommendation, promised to appoint a new Pay Commission to rcvicw the pay
structure of Central Govanmcnt employ&. Thc notificatCon constituting thc Fifth
Central Pay Commission was issued on 9th Aprii: 1994.

I THE FIFTH CENTRAL PAY COM&&O&l

('rnnpc~~iticur

1.10
fOIlO\\S

The Composition of the Fifth Ccntral Pay Conimission is as

:-

Chairman

Mcnibcr

Prof. Surcsh Tcndulkar. Profcssor of Economics.

Dclhi School 01' Economics

Shri M.K Kaw. a niciiihcr 01 thc Indian

Adiiiiiiistmtivc Scmicc.

Mcmbcr Sccrctan

With rcgard to thc nunibcr of mcnibcrs, thcrc scenis to bc a

declining trcnd. Thc First CPC had ninc mcmbcrs. thc Sccond CPC six, thc Third
and Fourth CPCs had fivc a&.as agoinst thc thrcc mcmbcrs of thc Fifth CPC.
1.11

1.12
It is also intcrcsting to obscrvc that thc First CPC did not havc a
Mcmbcr Secrbtary. Its Sccrctary was Shri K.R.P. Aiyangar. Thc Mmber
Scadarics of chc lata CPCs wccc Shn L.P. Singh ICS, Shri H.N. Ray ICS and Shri
A.K. Majumdaf IAS, rcspcctivcly.

TERMS OF REFERENCE
The tcrms of rcfcrcncc of thc Conunission arc thc following :

1.13

(a)

To cvolvc the principles whichshould govcm thc structurc of cmolumcnts

and thosc conditions of service of Central Govcrnnicnt cmployecs which
hivc a linancial bearing.

(b)

To exanimc the prcscnt structurc of enioluiiicnts and coiidibons of scrvicc

of chc following catcgoncs of Govcmmcnt crnployces. taking into account
the total packet of bcncfits availablc to thcm and suggcst changcs thercin
may bc dcsirablc and fcasiblc
i)

Central Go\mnnicnt cmployccs - industrial and non-industrial;

ii) Personnel belonging to the All India Services;

iii) Personnel belonging to thc Armcd For-;

iv) Personnel of thc Union Tcrritorics: and

v) Oficcrs and employees of the Suprcme Court of India and thc High
Court of Delhi.
(c)

(d)

To cxamine, with a vicw to having a propcr pcnsion smct~11y:for

pensioners, the existing pension structurc including death-cum-retirement
benefits and make recommendations relating thereto which may be
dcsirablc and fcasiblc.
To cxaminc the work methods and work environment as also the variety

of allowances and benefits in kind that arc presently available to the

afmentioned categories in addition to pay and to suggcst rationalisation
and simplification thcrcof with a vicw to promoting cfficiency in
adniinistration,reducing rcdundaat papcr work and optimising thc s i x of
t hc Govcmmcnt machincry.
(e)

To niakc rccomnicndations on cach of thc forcgoing haying rcgard, among

othcr rclcvant factors, to thc prcvailing pay structurc and rctircmait
bcncfits available undcr thc Slatc Govcmmcnts. ctc., ccononiic conditions
4

in thc counlry, thc rcsourccs of thc Cciitral Govcrnincnt and thc dcmands
thcrcon such as thosc on account of cconomic and social dcvclopmcnt.
dcfcncc and national sccurity and rcquircmcnts of sound fiscal
managemcnt
Additiimal
Ternis of
He$cc.rcncr.
January. I993

1 14
By a subscqucnt R d u f i o n No 5( 12)/E-llI/93datcd 12th Jmuar).,
1995, sub para 2(f) was addcd so as to amcnd the terms of reference as under."2(Q The Commission may consider the demands of rhc staff side of the
Na6onal Council of the JCM for grant of moth instalmat of interim relief and
merger of a further portion of DA with pay (for the purpose ofgratuity alone) and
send a =port thereon, if thc Commission fccls that it will not bc possible for thcm
10 submit their final report within a period of 18 months 'from the date of its
appointment.

While considcring thesc dcmands, thc Fifth Central Pay

Commissions may take into account thc interim relief and the merger of 20% of
DA with pay only for the purpose of gratuity, alrcady sanctioncd by thc
Government in September, 1993."
1.15
The tcrmsof reference of the Commission wcrc again amended by
Govcrnment in July, 1996 by the addition of thc following new para :
"2(g)
The Commission may consider whether andher instalment of
interim relief may be granted to thc Central Government employees and give an
interim report thereon. The interim relief, if recdmmmended, shall have to be fully
adjustbd agamst and subsumed in the padcage which may become admissible to the
Central Government employees on acceptance of the final mommendations of the
Pay Commission."
'

Additional Terms
o]R$erence.
Ociober, 19%

Additional Temts
o$Re$erenre.
November. 1996

1.16
On 24th October, 1996, another amcndmcnt led to the exclusion of
Members ofthe Subrdinatc Judiciary of the Union Territories from our purview.
A new para was added to the Terms of Reference by Government
notification dated 19th November, 1996 as under :

1.17

To examine the various methodology employed for determination

and payment of Productivity Linked Bonus (PLB') in the Ministries and
Departmen& of the Central Government and recommend the general principles and
conditions which should govern payment of bonus and also to recommend the
specific parmeters for evolving bonus formulae for each Ministry and Department
where PLB schemes are in forcc at present

"201):

The Commission may also examine the ad hdc' bonus scheme in

force in thosc Departments where PLB schemes are not in operation with a view
to r m m m d h g the desirability and feasibility of introducing produktivity linked
incentive schcme and may rccommend a spccific formula for detcrmining thc
productivity indcs and othFr parameters."
1.18
Copics of all thc Govcrnmeat notifications about our Terms of
Rcfcrcncc arc p l a d at Annexcs 1?1 to.f.5.

~~

~~

DIFFERENCES IN I H E TERMS 01;REFERENCE

Iryrciplc.\

1-19
I n tcrnis of paragraph 2 of thc Rcsolution. thcrc arc ccrtain
difimnccs b c t \ \ m thc Icrnis of Rcfcrcncc of thc Fourth and Fifth CPCs. Wliilc
thc Fifth CPC is rcquircd to cnquirc into and niakc rcconimc~idntionson thc
principlcs which should govcm thc structurc of cniolumcnts and conditions of
scrvicc of Ccntral Govcmmcnt cmplqccs \vhich havc a financial bcaring, thcre was
no such pmvisbi in *h
tcrms ofrcfcrcncc of thc Fourth CPC. Wc havc not takcn
a rigid view o f h phrasc which havc a fitmicia1k i n g , as most mattcrs relating
to structurc ofcmolumcnts and conditions of s c n k do havc a financial bcaring.
directly or indircctly. In any casc thcrc invariably arc implications for cfficicncy
and productivity, rcduction of papcr work or optimisation of manpowcr. all of
which arc covcrcd bv our Tcmis of Rcfcrcncc.

Arttied Ftwws

1 ,2()

prrmtitid

Thc Fifth CPC has bccn askcd, for thc first timc, to csaniinc thc
tcmis atid conditions ofscn,icc of Armcd Forccs Pcrsonncl and to suggcst changcs
which arc considcrcd dcsirablc and fcasiblc. Examination of thc conditions of
scnicc of Amicd Forccs Pcrsonnel did not figurc in thc Tcniis of Rcfcrcncc of
Fourth CPC. Even thcir rccomnicndatioiis with rcgard to changcs in thc structurc
of cnioluniciitsincluding dmthcun-ictircn&t gratuity in rcspcct of Armcd Forccs
Pcrsoiiticl had to bc niadc with duc rcgard to tlic tmiis and conditions of thcir
scnicc
1.21

1~wiotrer.s

While tlic Fourth CPC was askcd to csaiiiinc a propcr pcnsion

slr~cturcfor dic pcnsiaicr - both past and futurc, this Commission hhs bccn askcd
to csrtlninc a proper pcnsion structurc for pcnsioncrs. whcrcb!. rcfcrcncc to past
and future pcnsioricrs has bccn omitted, Ho\vc\.cr, \vc do not coiisidcr this to bc
deliberate in thc scnsc of disallo\ving a considcration of the question of parit!.
bct\vccii past and futurc pcnsioncrs.

<*oinp~~rismi
wrh

1 .22

ISl :r

The Fourth CPC was rcquircd to niakc rccorntncndations having

regard. among olh& rclcvant factors, to thc thcn prcvailing pay structurc undcr thc
Public Sector Undcrtakings, State Govcmicnts, ctc. \vIicmx thc rcfcrcncc to
Public Sector Undcrtakings docs not figurc in thc tcrms of rcfcrcncc of thc Fifth
Pay Commission. Wc bclievc that thyc was an implied attcmpt on thc part of the
Govcrnmcnt to cscludc 4 ncsus bctwccn the conipcnsation pnckagcs of Ccntral
Go\.emnicntcniploycci and thosc working in the public sector. Ho\vcvcr. this did
not dctcr us from collccting information from thc various PSEs for thc purposc of
making a fair comparison and an asscssmcnt of thc gcncral eliniatc of wagc
rci.isions in thc c d ~ Although
t ~ ~ wc do not accept tlic Staff Sidc plca for a parity
c
deny that sonic
bct\\ccn the cmployccs of thc PSUsand thc Go\cmnicnt. ~ v cannot
rclativir\. bekccn tlic two groups has to bc maintaincd.

S u p r e t ) Cottrr
~
01

,23
l h c Fifth CPC is also rcquircd to csaniinc thc prcscrit structurc of
Jtldid anoluiients and conditions of scnicc of the oficcrs and employees of thc Suprcmc
( ourt c$l)ellri
Court of India and tlic High Court of Dclhi. Thc above Courts w r c riot iiicludcd
i i i thi: tanis o!rcfcrcncc of Third CPC and otil!, tlic officcrs and cmplo!.ccs of the
Suprctiw Coiirt were iricludcd in thc aiiicndcd Icrnisof Kefcrcncc 0 1 tlic Fourth

lldiu

CIC

1.24
This Comniission is rcquircd to csaniinc tlic work iticthods and
\vork cnvironmcnt as also thc varicty of allowances and bcncfits in kind that w r c
a\.ailablc to Ccntral Govcnimcnt cmployccs and to suggcst rationalisation and

simplification thcrcof \vith' a vic\v to promoting cficicncy in administration.

rcducing rcdundult papcr wrk and optimising thc six of Govcrnnicnt machincry.
Thc csamination of 'work nicthods' and 'work cnvironmcnt' and rclcrcncc to
reduction of rcdundant papcr work and optimisation of thc s i 7 ~
oT Gcvcrnnicnt
machincry wcrc not includcd in thc tcrms of rcfmnce of the Fourth CPC, and
d g l y thc swpc and ambit of thc Filth CPC is much wider. This Cornmissim
has had to undcrtakc in-dcplh study and csamination of various aspccts of
Govcnuncnt working with a vicw to sugcsting improvcmcnts in administration.
cfilcicncy and nianpowcr dcvclopnicnt
I .25
Unlikc thc tuns of rcfercncc of h c Fourth CPC rclating to rclicf of
an intcrirn charactcr, which covcrcd all sections of cmployccs, our amcndcd tcnns
oftcference alluded only to thc dcmands of thc Staff Sidc of thc National Council.
This dcrpartum rfom thc cariiei tcrms of rcfcrcncc prompted othcr associations and
rcprcscntalivcs of different catcgorics of cmployccs not affiliated to or rcprescntcd
by thc Staff Sidc of the National Council to rcqucst us to considcr thcir dcmands
scparatcly. Having rcgard to thc fact that our rccomnicndations would also affcct
such cmpioyccs, wc decided to cntcrtain such rcqucsts. Accordingly, we hcld
discussions with thc rcprcscntativcs of thc Staff Sidc of thc National Council of
J.C.M., Armed Forces Pay Commission Ccll, All India Confedcrntion of Ccntral
Govcrnment Officers' Associations ctc. prior to finalisation of our two Reports on
Intcrim Rclicf to Ccntral Govcrnmcnt cmployccs:

I26
Thc csprcssion 'Ccntral Govcrnmcnt cmployecs' in the icnns of
refcrcncc of the Fifth CPC covcrs e m p l o y s of the Govcn.mcnt, bclonging both
to tbc civilian and dcfcncc scn%xs.

127
Thc cxprcssion "Central Govcrnmcnt cmployccs" has not bccn
dcfird in the Constitution or any other law. Thc Second Pay Commission, for the
purpose of the enquiry, had taken all pcrsons in the civil services of the Ccntral
Government or holding civil posts undcr that Govcrnmcnt and paid out of the
Consolidated Fund of India, to be Ccntral Govcrnmcnt cmployccs. Employees of
thc llnion territories \vcrc also includcd.
1.28
Thc Third CPC madc a rcfmncc to the krni "Govcment Senant'
as gi\ cn in some of the scrvicc rulcs govcrning thc Govcrnmcnt cmploygs such as
Ccntral Civil Scrviccs (Conduct) Rulcs, 1964 and Ccntral Civil Scrviccs
(Classification, Control and Appeal) Rules, 1965 and found that thesc scrvicc rulcs

indicated only thc catcgorics of pcrsons to whom rules w r c applicablc. Thc

Coniriiissionconsidacd "all pcrsons in thc civil scniccs of thc Ccntral Govcnimcnt
or holding civil posts undcr that Govcrnmcnt and paid out of thc Consolidatcd
Fund of India" to bc Ccntrnl Govcrnmcnt cmployccs. It cscludcd thc scvcii
catcgorics of posts nicntioncd in paragraph 5 of Cliaptcr I of its Rcport from its
pun. icw .

I .29

The Fourth P ; I ~Commission ivas of thc view that thc csprcssion

Cailral (jovcrtiiiictit ctiiplqccs'covcrcd all such ctiiplq.ccs. and riot mcrcly those
in the "(*ivil" scrviccs of thc Cctitriil Govcrnnicnt or holding "Civil" posts undcr
that Giovcninicnt, I'or tlic siriiplc rcilsoii that tlicrc wiis no sirch rcstrictivc OI'

csclusivc quidilication in tlic csprcssion itscll'. A mcmbcr of ;tic dcfcncc scrviccs

was. thcrcforc, also a Ccntral Ciovcrnnicnt cniploycc. although his casc ilia!. fall
uiiicr .another catcgoc or ciiiplo!ccs lbr piirposcs o'r t~ictcniis'of rcfcrcncc.
Ijo\A.c\cr,thc following catcgorics of cniployccs arc cscludcd from
1.30
our purvicw :
1)

Employccs of tlic Sccrctariat of both Houscs of Parliamcnt. who arc

govcrticd by spccific provisions of the Constitutioti

ii)

Casual Labour and part-tiiiic cmplo!ccs.

iii)

Locally rccruitcd staff it! various missions abroad.

1.31
So far as ttic Estra Dcpannicntal Agcnts undcr thc Ilcparlnicnt of
Posts arc conccmcd, a onc-man Comniittcc undcr thc Chainiianship of. Justicc
Cliaranjit Ialwar. a Rctircd Judgc of thc Dclhi High Court. was constitutcd by thc
Govcmniait on 3 1.3.95. to csaniinc thc conditions of' scn.icc. cniolunicnts and
othcr l'acilitics availablc to thc Estra Dcpartmcntal Agcnts. As in thc past.
thcrcforc. thcy stood cscludcd from thc purvicw of this Comniission.

132
Ccrtain associations rcprcscnting thc cniployccs of Ccntral Public
Scctor Entcrpriscs govcmcd by the scalcs of pay and Ccntral Dcarncss Allowance
pattcrn applicablc to Ccntral Govcnimait cniployccs subnitttcd mcnioranda to thc
Conitiitssion rcqucstirtg that tlicir dcniands should also bc constdcrcd by thc
Coninitssion \Vc niadc a rcfcrcncc to tlic Go\crtimcnt and it was clarified that
eniployees of Public Sector Undertakings, irrespectivc of whether they were
borne on Central Dearness Allowance pattern or industrial Dearness
Allowance pattern were not included in the ternis of reference of this
Commission. It was also cbrified that employees of the Central Autonomous
Bodies were not covered $y our terms of reference.

1.33
Thcrc is no formal definition of tlic tcnn "Conditions of Scnicc".
Thc Sccond CPC did not rcstrict itsclf to tlic provisions ofthc rulcs. but adoptcd
a widcr, intcrprctation.of ttic abovc csprcssion to covcr a11 niaticrs Ivhich had a
bcaring on :the contcntnicnt, xnoralc and cl'fcicnc\*of tlic cniplo!~ccs. It madc no
distinction bctwccn the financial and non-financial conditions of scrvice. The Third
CI'C intcqirctcd thc csprcssion in a lintitcd scnsc and cscludcd ccnain niattcrs
from its iiiquic. for rcasons given in para' 14 of Chaptcr 1 of its Rcport. Ttic
f:ourth CPC !\as ofthc vicw that thc tcrm "Conditions of Scrvicc" covcrcd not only
thc regulatory aspcct of a scrvicc and its cmolunicnts, but also all othcr niattcrs
bcaring on thc scrvicc of an ctnploycc including thc tcnninal bcncfits.

PKOCE1)UHE OF WORK
A s pcr our Tcrins of Kcf'crciicc. thc ('otiiiiiissioti \\as to d c \ w 11s
~~roccditrc
iis i t nitglit considcr ncccssary for an!' particular purposc Wc
dccidcd upon our stralcgy aftcr studying tlic mcthodolog!. adoptcd b! our
1-74

oivn

prcdcccssors. A public noticc was issucd by thc Comniission inviting

Associations, Unions, Institutions, Organisations arid intcrcstcd individuals to scnd
nicmoranda on thc t&ms of rcfcrcnccof thc Commission, on or kforc 15th July.
1994. Thc time limit was. subscqucntly cstcndcd upto 3 I st August, 1994. In
rcsponsc to the noticc, wi rcccivcd about 18,000 mcmoranda.' Bcsidcs, wc rcccived
Uic Armcd Forces Mcmorandum in March. 199S. This number should bc vicwcd
against Ihe 950 memofanda rcceivcd by the First CPC, 5,000 by thc Sccond CPC,
9,500 by the Third CPC and 8,500 by thc Fourth CPC. it would not perhaps bc
\\7bng to say that this could be considered an ovcnvhclming rcsponsc.

I .35
All thc Ministries/Departmcnts of thc Central Govcmment wcrc
rcqucstcd to s d us mcmwanda on the subjccts covcrcd by our terms of rcfcrcncc.
Wc also issued a detailed proforma to all thc Ministried Departments, callizig for
uifomiation about posts, pay scales, recruitment and promotion rulcs, ctc. Central
Ministrics/Departmcntsand Statc GovcmmentsNnion Tcrritorics were rcquestcd
tdnominatc a senior ofTicer cach of a Icvel not below Joint Secretmy, to cffcctivcly
liaise with the Commission,.so as 10 cnsurc supply of cokect and comprehensivc
information. Accordingly 82 liaison oflicers of the Ministrics/Dcpartmcnts of thc
Ccntral Govcmmcnt and 30 liaison ofliccrs of thc Statc GovcmmcntsNnion
Tcrritorics wcrc nominatcd.
I-.36
In ordertomufe ~~pcd~tious
processing of rcqucsts received from
thc Commission for the supply of datahnformation, Ministrics/Departments werc
rcqucstcd to set up dedicated Pay Commission Cclls. Sincc all corrcspondencc
b
c the Commission
~
~ and various Ministrics/departments was to bc dealt with
only by the respixhvc nominatcd Liaison Officers, the ddls were to function undcr
thc dmct supervision of thcsc oficcrs. Accordingly, Pay Commission Cells werc
sct up in most of thc Ministricsl~ljammciits
1.37
At our rcquest, Governmcnt.issued instructions to 811 departments
advising hem to cxtcnd their fullcst cmpaatjon and assistancc to the Commission.
Whilc furnishing information to the Comniission, thc following instructions wcrc
to bc kcpt in view :

1)

W h m c r factual information \MIS called for, there should be no hcsitation

to furnish all nccessary 'factual information. Thc reason for arriving at a
particular dccision tAcn by the Govcrnmcnt or thc circumstanccs in which
a dccision was takcn might also bc cxplaincd so as to help thc
Cominission in undcrstanding thc policy of thc Govcmrnent.

ii)

\Uiencver thc sicws of the Govemmcnt on any policy mattcr wcrc dcsircd
by the Commission, the vicws should bc finaliscd expeditiously in
coilsultation with all the conccrned Ministrics/Departments or authorities.
Whcrescr it was not possible to asccrtain thc final vicw of Govcrnmcnt
cspcditiously, Sccretarids might, if thcy so dcsirc, give thcir pcrsonal
vicus, in thc light of thcjrknoivlcdgc and cspcricncc. In such cascs. it
should spccificallybc ma& 6lcar that thc victvs w r c pcrsonal and not thc
official stand of thc Dcpartnicnt.

iii)

Othcr Sccrctnriat olliccrs likc Additional Sccrctarics, Joint Sccrctarics,

Deputy Sccrctarics or Uiidcr Sccrctarics as \vcll as Heads of Dcpxtmcnts
could also submit their. vicu:s ON mattcrs lilling within their sphcrc of

\\ark. Thq could giw cvidcncc orally allcr obtaining prior approval In
such C ~ S C Stlic views might bc itidicatcd as thcir pcrsotiiil VICWS
11)

Gowmmcnt cniployccs could appcar bcforc thc Coninitsston on bchalf of

scn'icc associations \vitliout prior pctniission of thc Ciovcninicnt and
subniit mcmoranda adividuall! ,~orntlyor scvcrally to tlic Commiss~onon
niattcrs within its l'cmis 01' Rclcrcncc

1 , 38

(2ueshtinairr

aAftcr wc had a prcliniinar). look at thc mcmoranda wc had a fair

idca of thc kinds of questions that onc should ask. Wc hcld a workshop to test a
draft qucstionnaife that wvc had dcviscd. As soon as thc qucstionnairc was
finalized, it \\asissucd to around sis thousand cmincnt pcrsons from various walks
of lifc, including Mcmbcrs of Parliamcnt, to ascertain thcir view. Ovcr twclvr:
hundrcd replics were rcceived and proccsscd in the Comniission. Spccific
Qucstiannaircs wcrc also issucd to Stntc Govcrnnicnts, Public Scctor Undcrtakings
and to Govcrnnicnts abroad (through our diplomatic missions) to asccrtain tlic
compensation packagcs and conditions of scnicc of thcir cmployccs. The rcplics
racivcd from thesc sourccs wcrc also proccsscd in the Commission. All thcsc
formcd ;*aluablcinputs fix Ihc analysis of the various issucs that w r c to hc dccidcd
by us.

Orol ,*I,dF,,Cf

I ,3!,
From 27th Junc, 1993 to 20th March, 1996. thc Commission took
oral evidcncc of various Unions,' Fcdcrations and Associations of Ccntral
Gownniait employees. In all, oral cvidcncc of 553 Unions/ Federations was takcn
ivliich is at Annexc 1.6. During such oral cvidcncc, a considcrablc nurnbcr o i
documents were also prescntcd to us. Wc also had thc bcncfit of advice from
Sccrctancs, Heads of Departments and cniincnt pcrsons, lists of whom may bc sccn
at Anncscs 1.7 and 1 .X.

I BilS

Thc Conmiission also visited various cstablishnicnts at diffcrcnt

places in thc country to conduct on thc spot study of the conditions of scnice and
cnvironmcnt prcvailing in diffcrcnt Ccntral Gowmmcnt establishments and to
providc an opportunih to thoushds of ficld cmployccs to interact dircctly with 11s.
The Commission dccided to visit sonic of thc Commonitzalth countrics with a
distinguishcd rccord of public scnicc rcforms. Thcsc includcd Mala\sia, Nciv
Zcaland, Canada and thc Unitcd Kingdom. A list of cstablishnicnts h t e d is at
Anncxe 1.9.

Itis1itutimul

1.41

coll.~~4lllllil.~

1.40

In a major departurc from thc procedure follo\vcd by previous

Commission, this Commission dccidcd to lakc cspcrt opinion of rescarch institutes
of escellcncc. Ninctm studics on sclected topics conccming Ccntral Govcrnmcnt
cmployccs w r c assigncd to organisations likc tlic Indian Institutc of Scicncc.
Bangalorc; Indian Institute of Tcchnology, Dclhi, Indian Institute 01 Public
Admini'stration, National Productivity Council, Institute of Defence Studics and
Analysis, Institutc of Applicd Manpower Rcscarch, Managcmcnt Dcvclopmcnt
Institutc, Cctitrc for Policy Rcscarch, Tala Consultaney Scniccs, Fiscal Rescarcli
Foundation, Faculty of Managcmcnt Studics at Dclhi -University. National Institutc
of Nutrition, Tata Economic Consultancy Scrviccs. M/s Noblc Housc and the
Stratcgic Manahvmcnt Group. Thc dctails ot'llic itcnis of study and tlic instittilions
to whom thcse wcrc assigncd may bc sccn in Anncsc I . 10. Tlic corisultants Iiad
\\ idc-ranging discussions with thc conccrncd dcpartnicnts arid associations of
cmployccs. Kcports of all. thcsc institutions were rcccivcd and iinal!.~cdin tlic

Commission and extracts froni thcm haw bccti includcd at suitablc placcs in the
tcst. It is hopcd h a t uith this pioncaing cffort. a trcnd towards dcvcloping a bod!.
of litcraturc conccming mattas rclatcd to Govcmmcnt cniployccs. thcir conditions
of service, conipcnsation packagcs, rcstructuring of Gov&nmcntal organizations,
ctc. Will bc sct. We recommend that all these Reports be made available to a
larger audience outside the Government. 'I'hc mcchanism of institutional
consultants, wc found, was prcfcrablc to appointmcnt of individual cxpcrts as
advisers to thc Pay Commission. It providcd an institutional cxpcrt input, instcad
of nicrcly individual imprcssions:
ltitrrdqwirttiitwd
Cminiitttw

1.42
A study of thc Rcporls of thc prcviocls CPCs rcvcalcd that on a
number of issucs thcy had rccommcndcd thc sctting up of Inter-Dcpartmcntal
Committax by thc Govcmmcnt in ordcr to considcr contcntious mattcrs and comc
up with solutions. It was found that in a numbcr of instanccs, somc Committccs
wwc eithcr not set up or took an unconscionablc time to submit thcir Rcports.
Whcrc their rccornmcndations bccanic nvailablc, thc Govcrnrncnt failed in
nunlerous qscs to rcsolvc tkmattcrs finaliy. somctinics cvcn till today. Lcaming
from thc past, thc Commission dccidcd that some of thc iniportant IntcrDcpartmcntrrlCommittccs should bc sct up during thc currcncy of thc Commission
itsclf. In a fcw cascs whcn thc conccrncd Ministrics showed rcluctancc, thc
Conimission constituted die Committccs on its min. Thc idca was to havc their
rccommcndations and makc lhcse Ihc basis for our final rcport. Wc arc glad to
statc that \vc havc largcly succccdcd in our objcctivc. A list of thcsc Committccs
is placcd at Anncsc 1. I 1.

INTERIM REPORTS

Fir.st ciitdSecotid
Ifitcrmni Haports

f .43
The Commission sq6mittcd its first Rcport, which pertained to
lntcrim Relicf to pensioncrs, on 2 1st Octobcr, 1994. It was rccomicn4cd. that all
pcnsioncrs and family pcnsionm be sanctioncd an lntcrim Rclicf at a wifonn rate
of Rs.50per month. This was to be trcatcd as a distinct and scparate clcmcnt to
bc sd off against the rctircmcnt bcnefits to be finally rcwmmended. The Second
Rcport of the Commission was submitted to Govcmmcnt on 2nd May, 1995. It
recommended the grant of Interim Rclief equal to 10% of basic pay, subject to a
minimum of Rs.1OO/- per month. A further instalnient of lntcrim Rclief cqual to
10% of thc basic pemiodfamily pension subjcct to a minimum of Rs.50 per month
\\as also rccommcndcd . It was suggcstcd that Deanicss Alloivancc linked to thc
avcragc AICPl 1201.66 as on July 1,1993 bc lrcatcd as dcarncss pay for reckoning
crnoluments for thc purposc of rctircmcnt and death gratuitics, and lhc ceiling on
gratuity be cnhanccd to Rs.2.5Iakhs. Thcsc rccommcndations wcrc to be given
effect lo from 1 st April, 1995.

Third Iiltt*riin

1.44

Hc.pirt

We submincd our Third Kcport on lntcriin Rclicfon 2nd August,

1996. Intcrini Rclicf equal to 10% of basic pay. subject to a minimum of Ks.I00
pcr month \\.as rccommcndcd. All pcnsioncrs and famil!. pcnsioncrs werc to bc
sanctioned a furthcr instalnicnt of lntcrini Kclicf c<l~iilto 10'!4 of'thcir basic
pcnsion/family pcnsion. subject to a minimum of Ks.100 pcr month. Thcsc
reconimcndations\vcrc to bc givcn cn'ect from I st April, 1996. Rccommcndations
contained in our Interim Rcports w r c acccptcd b\. thc Govcmmcnt. Orders in
rcspcct of issucs dcalt with in thc first and second Kcports \vcre issucd by thc

Govcrnmcnt on 14th July, I995 and thosc in rcspcct of thc rcconinicndations in

thc Third Rcport on 6th Scptcmbcr, 1996.

Gcneml l*imat

1.45

Our Report is in ninc parts nnd has a total of 172 chaptcrs

Part I

1 46

PW I is a gcncral introduction to the Rcport

1.47

Part I1 deals with Rtblic savices ~

Porr I1

~It

is our clcar
~ bclicf

that thc natmn should first buiM a cotlsc~uson ccrtain fundamcntal issucs relating

to its public serviccs. These are connectcd to thc kind of govcmancc wc wish to
havc in the coutitry. In the light of thc changing social, cconomic, political and
other trends, it is neccssary to examine the changing face of thc Central
~
o
~and thc
j role~of the
t public services therein.
1.48

Public Scrviccs Management can bc dividcd into thrce main

scgments promoting efficiency, human rcsourcc dcvclopmcnt and optimising thc

s i x of the Govcmmcnt machincry.

149

For promotingeflicmcy tvc must start by redefining the functional

goals and then move to problcms of restructuring of organisations Wc havc to

take account of work methods and work environment, improve productivity.
tntroducc automation, openness and autonomy and develop an effective
managemcnt i n f ~ a t I o nsystem
150
Human rcsourcc dcvelopmcnt would imply cvolving of bcttcr
m t m e n t methods, improving mobility between Government and other sectors.
emphasizing training and development, devising crcative and innovative
p ~ r f ~ appraisal
a n ~ systems, having a promotion policy that enhanccs
motivational Ievcls and introducing accountability into the governmental systcm
1.51
Optimisation of thc machincry would cover the most significant
issue of workforce size control or right-sizing the Government. This has been
approached from the point of view of large segments like the organised services,
thc railways,the postal and telecommunication scrvices, the armed forces and the
central police organisatioris. The final aim is to have a leaner and meaner
bureaucracy, while promoting cffcicncy
Per[ Ill

Part III dcals with principles of pay ~ ~ c ~ ! n a t i We

o n stant w t h
a discussion Qn the backdrop of the general cconomic situation and thc financial
resourccs of the Central Govemmcnt For the purposc of fair comparison, we
move on to the condrtims prevailing in the public and private sectors as also in the
Indian Statcs and other countties of thc world
1 52

We havc thcn bod to prcscnt a discussion on the general princtplcs

153
for pay dctcrmination,thc minimum and masimum salancs and thc Go\*cnlmcnt's
capacity to pay
Purr II '

I .54
Part N dcals with pay scatcs of civilian cmployccs We first makc
our rmmcndalions with rC@ to orgmiscd services and comnion catcgorics and

12

thcn fix thc pay scalcs for othcr posts in thc various Minisuics and Dcpartnxnts
of thc Ccntral Gomnment. This is followd by a Section on thc oficcrs and
cmployces of thc Suprcmc Court of India and thc High Court of Dclhi We
concl& this Part by suggcsting thc paltcrn for thc Union Tcrritorics
hrLs

1'6 L'I

I .55
Part V deals with allowances and f'acilitics, and Part VI with
pensions and othcr retiremcnt benefits fot civilians

Pam MI 6i C711

Part Vii concans itself with the pay scales and allowmces of
A ~ C XFONXS
I
personne~6nd part VIII with their conditions of service ~IKI
pcnsionary btnefits.

Part u'

I57

( h r owrull
Sh'rlg,

136

Part IX is thc concluding part of thc Report.

1.58
The whole idcaofhaving Public Service Management first and Pay
scales later is that wc should first k i & what we ilft going to do with our
bureaucracy, its size, cfioiency, productivity, effcctivcness and accountability.
before we take up the question of what it should bc p a d We hope that the
government will appreciate the nexus that we seek to establish between the
utility of the public servant to the nation and the payment he receives for his
work Our report should be implemented as an integral whole* in its entirety,
as a complete package.

Certain Limiting

Factors

Greot

cqxclations

I 39
In the Report &chave tried to i
d upon d1important issucs r a i d
bcfofk us. We havc not consciously sidestepped any issue: the attcmpt has bccn
to express-our vicws and suggest a clear line of action. As' far as possible. the
effort has been to indicate the reasons, in brief, that have HCI 'ghcd with us for
acceptance or rcjeclion of tach demand. However, due to paucity of space. it is not
fkasiblc to furnish detailed jllstification on every point. This in itself should not,
be interpreted to imply any, lacuna in the proper examination of thc matter.
Decision on evay issue has bden taken a h punctilious scrutiny at various stages
tn the Secretariat of the Conhission. To ensure objectivity and.impsrtialit). in
decision malung, recQmincndations m& by Team Liaders were submitted to a
Core &p set up unda he chairmanship of thc Member Sccrew and with fouf
senior officers as members. All proposals finally went to thc Commission in
accordance with the mommendations ofthe Core Group.
1.GO
The present Pay C<mmission has mused great expectations in the
minds ofGntral Government employces and it has perhaps not been possiblc fm

our recommendations to match those high hopes. Financial constraints of the

Goverpmenthave operated as a major limiting fador IR making rccommendations
on pay and allowances, benefits and perquisites that would have bccn
commensuratc with the demands of the memorandisks Our attcmpt has bccn to
provide the maximum rclicf possible to the Cemtral Govcmmcnt cmployces wwthin
the ovenll resource oonshainl. We hope that the employees will appreciate the
diClirulty of our task in the present climate of fiscal deficits and a mounting
public debt, both domestic and foreign.

13

WORKING OF THE COMMISSION

I"M1.~

SmaJ

1.61
Whilc-thcnotification sctting up thc Filth CPC was issucd on 9th
April, 1994, thc Chairman took ovcr chargc.of his officc on 13th April. 1994. Thc
Sccrctariat of thc Commission start& functioning on 2nd May. I994 with thc
assumption of chargc b! the M c m b Sccrctary. At thc,very outsct. a policy
decision was taken to have a small team of officials in thc Commission. As
compared to 209 p t s sanctioned for thc Fourth CPC, we initially obtnincd
sanction for only 107 posts with the lrndcrstanding that niorc posts would bc asked
for whicn thc prcssurc of work mounted. Thc Commission received a rocord
numbcr of mcmoranda and rcplics to qucstionnaircs. Thc work rclating to oral
cvidcncc by associations and individuals, finalisation of consultancy reports and
obtaining thc recommendations of Intcr-departmental Comniittccs, ctc. addcd up
and morc posts \wre got sanctioned subsequcntly: Thc total numbcr of posts
sanctioned went up to 141, but the maximum numbcr dcploycd at no stagc
cscccded I 35.

With a view to benefiting from thc espcflisc of oflicers d r a m from

h f f i n t fields, thc Commission gavc rcprcscntatiori to 3 largc varicty of scniccs
in its ofliccr cadre. Officers wvcrc d r a w from Indian Administrative Scrvicc.
Ind1a11Forcst Sen.ice, Indian Audit & Accounts Scnicc, Indian Railway Accounts
Scrvicc, Indian Postal Service, Indian Ordnancc Factorics Scnicc. Indian Dcfcncc
Accounts Senice, Indian Revenue Scnice, Indian Economic Scnicc, Ccntral
Sccrctariat Service, Border Security Force, Geological Sumcy of India, Ccntral
Public Works Department and thc National Informatics Ccntrc.
1.62

1.63
Staff at lower lcvels was d r a m on deputation from diffcrcnt
Ministries and hpartments. We took a policy decision to takc only such pcrsons
as were holding analogous posts in their parent Departmcnts. With dcputation
allo\vancc having bcen reducedto 5% of basic pay by thc F o d i CPCI posts in thc
Commission remained unattractive. It was partly thc Conunission's own
experience in this regard that bccame the basis for our recommendations on
deputation duty allowvmce.
Org&in$ational
S!rUClUN

Accmmodarion

The work of the Commission was dividcd into three wings Administration Wing, Coordination Wing (including Computer and Statistical
Units) and T e c h d Wing (misting of six teams). The work allocation amsngst
the various teams, along with the details of staff sanctioned to cach team is given
in Annexc I . 12. Organizational Chart of the Commission is at Annexe 1.13.
Namc of cach oflicial deployd in thc Commission,along with his scnicc. is s h o w
unit wisc.at Anncsc 1.14.
1.64

1 65
The Commission was initially provided accommodation m 22 rooms
of Vig?,an Bhavan Annexc. As this was found inadcquatc for a rcgular ofice, the
Dircctoratc of Estates subscquently allotted 1 1,659 87 sq feet arca on thc 2nd and
3rd floors of Trikoot-I Building at Bhikaji Cama Placc. R K Puraiii. h'cu Dcllii
l'hc Cotiiinission shrftcd to its ncw prcmiscs on I 1 th March. 1995

14

ANNEXE 1.1
(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY

RART-I swnos-1)

CX)\"EWNMRNI O F INDIA
XlIHISTRY O F FINANCE
I)EI'AWlMENT 01;ESI'KNI)ITl!HI.:

Nm Dd&chcP(hAprll. 19pl
Ckltrr 19.1916 (W)

I
2

Chrinnan
Stcrnlwr
Stemhcr-Sccrctrn

Shri Justice S.H.l'andian

I f o f Suresh lcndultiu
Shri Y.K.Kan

'I o ex;lni~ncrhz wirh methuds atid work cnvironnicnt as also the varwty ofallowancxs and bcnefitz i.1 kind h a t a x Iircxmtl)
av.ulithlc to I)*:alcxcvrwrianrxlcawgmics in adrliticn to pay and IO suggest rationalisation and simplification thcrcof with a view
to p w i ~ ~ x uctli,i,alc?
ig
in adminiswation r h i i n g ndundant papcr-wnrk and optimising the size of rhe Govm~ncmtmachincry
'1 I) niAc rruinmwdolinu UI
6111
Ilmxoing
~
having regard. among other rclrvanl faam%to the prevahg pay sIrudure
and rctirenient hcnefits available under the State <iovemmenl. etc.. ecmnnmic conditions in the country, thc resources oftht
Central Govcmmmt and the demands thenrin such as t h c w on acwunt of economic and social de~rlopmcnt.defince and
i i i t i m i i l siiiii ilx and rcquirenicnts of sound t&il
mrnagcment.

3.
'111~
Conmsi+w:~ 1 1J1s v i s its o \ w procedure and may iippoint such Advisers. institutional consultants and e x p t s as it may ccmsida
muwsiry for any p.mi;ular piqnxc. It may call fiw such intiomintion and take such evidence as it may cwnsidcr nrccJs.T?'. Minislnes and
I~cpartnaentsof thc i;o\crnnic.nt of India'will furnish such inkmiation and documents and other assistance as may bc required by the
C'cvnnikion 'Ih:
Govmmiuit nf11di;i mist h a t SWC Govr.mmciits. Service rlswiationn and others cnnccmed will d e n d l o the Commission
their litllcst crxpration and a>sist;lnie.
4.
32

. 'lhc C;namkkxi \ v d make IL, icwmiuidaticm as stion ;as t>~siidc. It m;ly consider. if'nece<sary. sending repotls On an?.of thc manen
:rnd u hcn the rc;oiiitii~iiil.itir,n~
i r e linitliscd.

15

(WVLIKNMEN'I' 0 1 ; I N I N A
MINIS'IRY O F FINAN(II
1)13I'AHTMENT OF E;XPI.:NI)I'IlJHK

HESOLUTION

No. S( 12)/E.111/93. Ciovernmerit of' India have decided that !he 'Icrms of Kefcrencc of' thc Fifth ('Clltrdl
Pay ('ommission as contained

111

this Ministry's Resolution 01' even oumher diited 0 t h April. 1004 shall

tk amended by addition of a new pmit 2(f) below 2(e) of the Resoluh)n iis undcr :2(l.):

,., .

I he (.'ommission may consider the demands 01' the stall' side ot the N i ~ t i ~ ~Council
ii~l
of the JCM for grant of another iristalment of interim relief and mergcr o t ;I further portion
o f D A with pay (Ior the purpose of gratuity alone) and send it rcport thereon. it' the
Conimission feels that it will not be possible for them to submit their filial Kcport within a
period ot' 1 X moiiths from the date of,its appointment.
While considering these demands. the Fifth C~ntralPay ('ommission may take i n t o :tC'L+ O I l I l I
the interim relief and h e merger of 204 of DA with pay only tor (he purpose of grittuity.
already sanctioned hy the Government in September, 1903."

Ordered that the Resolution he publiShed in the Gazette of liidia.

Ordered that a copy. of the Resalutioi~be communicated to the Fifth Central Pay (-*ommission.
Ordered also h i a copy of the Resolution be communicated 10 Miiiistries/DeDrutmciits of the
Government of India, State ~o\.crnments/Administrationsof IJnioii Territories and all others concerned.

Sdi(K. VENKATESAN)
SECh'kTAh'Y 01;'
THE.GOVEKNMEhT O F INDIA

16

ANNEXE- 1.3

(TO BE PUBLISHED IN THE GAZETTE O F INDIA EXTRAORDINARY

PART-I SECTION I)

GOVERNMENT O F INDIA
MINISTRY OF FINANCE
DEPARTMENT O F EXPENDITURE
New Dclhi, the 17th July, 1996
Asadha 26,19 18(Saka)
RESOLUTION

No 5( 12yE-IIl/93 The Gov.mncnt have decided that the Terms of Reference of the FifUr Central Pay
Commission as contained in this Ministrys Resolution of even number datcd 9th A p d , 1994 and
amended wdc this Minisos Resolubon of even number dated 12th J a n u q , 1995 shall be fiuther
amended by thc addition of a new para 2(g) below para 2(F) as under 2(9)

The Commission may consider whether another instalment of mtmm relief may be
granted to the Central Government employees and give an interim report thereon Thc
interim relief, if recommended, shall have to be fully adjusted agunst and subsumed
III the package which m y become adrmssible to the Central Government employees on
acceptancc of the final recommendations of the Pay Commission

Ordered that the Rcsolution be published in the Gazette of India

Ordered that a copy of thc P.esolution be communicated to Fifth Central Pay Commission.
Ordered that a copy of the Resolution be communicated to MinistriesDepartments of the
Gosemmcnt ofIndia. State Go\cmmentslAdminitions of Union Territories and all others concerned.

Sd(N.K. SINGH)
SECRETARY TO GOVERNMENT OF INDIA

17

(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY

PART -1 SECTION 1)
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
Ncw Delhi the 24th October, 1996
Kattika 2, 1918(Saka)

RESOLUTION

No.5(12)/E-111/93 Thc Ciovcrnmcnt have dccidcd that Para 2(b) (iv) of thc Tcnns of Refcrcncc of
the FiW Ccntral Pay Commssion as containcd in this Ministc's Rcsolution ofcvcn nwnbcr datcd
9th April, 1994 may be modified on thc following lincs

Existing tcmi

Modi ficd tcrni

Personncl of union
Temtorics: and

Personncl of Union Tcrritorics csccpt Mcnibcrs of the

Subordinatc Judiciac; and

Ordercd that the Rcsolution bc publishcd in tlic Gaxttc of India.

Ordcred that a cop)*of the Rcsolution be comrnunicatcd to Fifth Central Pay Commission
Ordcred that a cop!. of thc Rcsolution be communicatcd to MinlstriedDepartmcnts of the
Govcrnmcnt of Inha. State Go\emrntmtslAdministntionsof Union Tcrritorics and all others conccmcd

Sd/(C. RAMACHANDRAN)
SECRETARY TO GOVERNMENT OF INDIA

(TO Ik PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY

PART4 SECTION 1)
GOVERNMENT OF INDIA
MINISTKY OF FINANCE
D E P A R m N T OF EXPENDITURE
New Delhi. the 19th November, 1996
Kartika 28.1 9 1 8 (Saka)
RESOLUTION

No 5( 12)E-111/93 The Government have decided that the Terms of Reference of the Fifth Central Pay
Commission as contained rn this Ministry's Resolution of even number dated 9th Aprd. I994 and mended
nde h s MIIUSQ'SResoluhons of even numbers dated 12th January, 1995. 17th July, 19% and 24th October,
1996 shall be further amended by the addition of a new para 2(h) below para 2(g) as under 2(h)

"To examine the vanous methodology employed for deterrmnauon and payment of
Productivity Linked Bonus (PLR) in the Ministnes and Departments of the Central
Government and recommend the general pnnciples and conditions m hich should govern
p m e n t of bonus and also to recommend the sqxcific parameters for evolvmg bonus
formulae for each Ministry and D e p m e n t where PLB schemes are in FQKX at present

The Commission may also examine the ' !id hoc' bonus scheme in force in those
Departments where PLB schemes. are not in opcration,with a view to
recommendmg the desirability and feasibility of introducing productiviQ linked
incentive scheme and may rcxomrnend a specific formulae for detamining the
productivity index and other related parameters."
Ordered that the Resolution be published in the Gazette of India.
Ordered that 3 copy of the Resolution be communicated to Fifth Central Pay Commission

(kdcredthat 3 copy of the Resolution be canmunicated to hhistriedbepanments of the Government

of India, State Gove~ents/Administrationsof Union Temtories and all othcrs c o n c m d .

.w(N.K.SINGl4)
SECREIAKY '1'0 GOVI3WMEN'I' 01: INDIA

: 19:

ANNEXE - 1.6
LIST OF FEDERATlONS/UNIONS/ASSOCIATION
WHO
TENDERED ORALEMDENCE BEFORE PPY COMMISSION
S.NO.

NAME OF THE FEDERATION/UNION/ASSOCIATION

MINISTRY OF ACJUCULTURE

1.

2.
3.
4.
5.

ASSOCIATION OF TECHNICAL OFFICERS OF DIRECTORATE OF PLANT

PROTECTION QUARANTINE AND STORAGE
DELHI MILK SCHEME EMPLOYEES UNION
DELHI MILK SCHEME TECHNICAL STAFF ASSOCIATION
NON-GAZETTED TECHNICAL EMPLOYEESWELFARE ASSOCIATION,
TECHNICAL OFFICERS ASSOCIATION

MINISTRY OF CIVIL AVIATION & TOURISM

6.

CIVIL AVIATION DEPARTMENT EMPLOYEES UNION

MINISTRY OF COMMERCE

7.
8.

9.
10.
I I.

DGS&D OFFICERS ASSOCIATION

INDIAN TRADE SERVICE OFFICERS ASSOCIATION
NATIONAL TEST HOUSE C&D STAFF ASSOCIATION
NATIONAL TEST HOUSE EMPLOYEES' ASSOCIATION
NATIONAL TEST HOUSE GAZETTED OFFICERS' ASSOCIATION
MINISTRY OF COMMUNICATIONS

12.

13.
14.

IS.
16.
17
18.
19.

20.
21.

22
23
24

ALL INDIA POSTAL EMPLOYEES UNION CLASS-I11

ALL INDIA POSTAL EMPLOYEES UNION POSTMEN & CLASS IV
ALL INDIA RMS & M M S EMPLOYEES UNION CLASS 111
ALL INDIA RMS & MMS EMPLOYEES UNION. CLASS IV
ALL INDIA ASSOCIATION OF INSPECTORS AND ASSTT
SUPERINTENDENTS OF POST OFFICE
ALL INDIA ASSOCIATION OF POSTAL SUPERVISORS(GEN LINE)
ALL INDIA POSTAL ACCOUNTS EMPLOYEES ASSOCIATION
ALL lNDJA POSTAL ADMINISTRATWE OFFICES EMPLOYEES
UNION(GR0UP C&D)(CHQ)
ALL INDIA TELECOM ADMINISTRATIVE EMPLOYEES UNION
ALL INDIA POSTAL & RMS ACCOUNTANTS ASSOC'IATION
BHARATIYA POSTAL EMPLOYEES FEDERATION
BHARTIYA I'ELECOM EMPLOYEES FEDERATION
B H A R R Y A POSTAL EMPLOYEES UNION, CLASS 111
20

S.NO.

NAME OF THE FEDERATION/UNION/ASSOCIATION

25.
26.
27.

BHARTIYA POSTAL EMPLOYEES UNION,POSTMEN & CLASS IV

BHARTIYA RMS Bt MMS EMPLOYEES UNION, CLASS IIk
BHARATIYA POSTAL ADMN. OFFICES EMPLOYEES UNION GROUP
C&D(CHFQ)
FEDERATION OF NATIONAL POSTAL ORGANISATION
FEDERATION OF NATIONAL TELECOM ORGANISATIONS
INDIAN POSTAL SERVICE ASSOCIATION.
INDIAN TELECOMMUNICATION SERVICE ASSOCIATION
INDIAN ENGINEERS FEDERATION
JUNIOR TELECOM OFFICERS' ASSOCIATION
NATIONAL FEDERATION OF POSTAL EMPLOYEES
NATIONAL FEDERATION OF TELECOM EMPLOYEES
NATIONAL UNION OF POSTAL EMPLOYEES
'NATIONAL UNION OF POSTAL EMPLOYEES POSTMEN & CLASS IV
NATIONAL UNION OF RMS EMPLOYEES MAILGUARDS & CLASS IV
NATIONAL UNION OF RMS & MMS EMPLOYEES CLASS 111
NATIONAL UNION OF TELEGRAPH ENGINEERS
POSTAL OFFICERS ASSOCIATION(IND1A)
P&T CIVIL WING DIRECT RECRUIT ENGINEERS ASSOCIATION
P&T ACCOUNTS AND FINANCE (GROUP 'A') DIRECT RECRUIT
ASSOCIATION
TELECOM ENGINEERING SERVICES ASSOCIATION
TELECOM FACTORIES ENGINEERING ASSOCIATION
WPC AND MONITORING OFFICERS' GUILD

28.
29.
30.
31.
32.
33.
34.
35.
36.
37.

38.
39.
40.
41.
42.'

43.
44.
45.
46.

MINISTRY OF DEFENCE
47.

48.
49.
50.

51.
52.
53.
54.
55.

56.
5 7.
58.
59.
60.
0I

ALL INDIA ARMY ORDNANCE CORPS CLERKS ASSOCIATION

ALL INDIA DEFENCE EMPLOYEES FEDERATION
ALL INDIA CIVILIAN STORE KEEPING PERSONNEL ASSN(EME)
ALL INDIA ASSN. OF STOREKEEPING STAFF OF ARMY ORDNANCE CORPS
ALL INDIA MES CIVILIAN ENGINEERS ASSOCIATION
ALL INDIA ASSOCIATION OF ORDNANCE OFFICBRS CIVILIAN(D1RECT)
ALL INDIA (MES) BARRACK AND STORES CADRE ASSOCIATION
ALL INDIA AIR FORCE CIVILIANS ASSOCIATION
ALL INDIA MES CLERICAL CADRE AND GROUP 'D'EMPLOYEES
ASSOCIATION
ALL INDIA ASSOCIATION OF EME SUPERVISORS (TECHNICAL)
ALL INDIA DEFENCE ACCOUNTS EMPLOYEES ASSaCIATION
ALL INDIA DEFENCE ESTATE EMPLOYEES ASSOCIATION
ALL INDIA FEDERATION OF PENSIONERS' ASSOCIATIONS
ALL INDIA NAVAL DRAUGHTSMEN'S ASSOCIATION
ALL INDIA E M E HIGHLY SKILLED WORKERS' ASSOCIATION
21

17713

S.NO.
62.

63.
64.

65.
66.
67.
68.
69.
70.
71.

72.
73.
74.

75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.

90.
91.
92.
93.
94.
95.
96.
97
98.

NAME OF THE FEDERATlON/UNlON/ASSOCI

ATlON
ALL INDIA ASSOCIATION OF N.G.Os,(CENTRAL EXECUTIVE)
CALCUTTA.
ALL INDIAE~GMFSRING DESIGN DRAUGHTSMEN ASSOCIATION,AVADI
ALL MDIA ASOCIATION OF NON-GAZETTED OFFICERS OF THE
ORDNANCE, MADRAS.
ARMED FORCES HEADQUARTERSGROUP 'D EMPLOYEES ASSOCIATION
AFHQ ASSOCIATION
AIR FORCE STOREKEEPERSASSN
AFHQ, CIVILIAN OFFICERS ASSOCIATION.
AIR FORCE CIVILIAN KARAMCHARI UNION
AFHQ, STENOGRAPHERSASSOCIATION
AFHQ & IS0 EMPLOYEES ASSOCIATION
ALL INDIA NAVAL TECHNICAL SUPERVISORY STAFF ASSOCIATION
AFHQ, C M L SERVICWDR)GAZETTED OFFICERS ASSOCIATION
BHARATIYA PRATIRAKSHA MAZDOOR SANGH
CIL NON-GAZETTED OFFICERS ASSOCIATION
CENTRAL ORDNANCE DEPOT MAZDOOR UNION
DEFENCE EMPLOYEES TECHNICAL PERSONNEL ASSOCIATION(INDIA)
DEFENCE MARINE ENGINEERING TECH STAFF WELFARE ASSN DQA (WP)
DEFENCE SCIENTIST ASSOCIATION
DEFENCE QUALITY ASSURANCE OFFICERS ASSOCIATION
DEFENCE RESEARCH Bt DEVELOPMENT ORGANISATION SCIENTIFIC
WORKERS ASSOCIATION
DEFENCE FACTORIES ALL INDIA STORE KEEPERS ASSOCIATION
DRAUGHTSMEN'S ASSOCIATION OF DIRECTORATE GENERAL OF QUALITY
ASSURANCE
DGQA GROUP 'B' OFFICERS ASSOCIATION, MADRAS
DEFENCE QUALITY ASSURANCE GROUP 'B' OFFICERS ASSOCIATION,
BANGALORE
HIGHLY SKILLED DEFENCE WORKER'S ASSOCIATION
INDIAN NATIONAL DEFENCE WORKERS FEDERATION
MDIAN DEFENCE ACCOUNTS SERVICE ASSOCIATION
MDIAN ORDNANCE FACTORIES GAZETTED OFFICERS ASSN
INDIAN NAVY CIVILIAN OFFICERS ASSOCIATION
INDIAN DEFENCE SERVICES OF ENGINEERS,MILITARY ENGINEERING
SERVICE GR 'A' OFFICERS ASSCIATION
MDIAN ORDNANCE FACTORIES SERVICE ASSOCIATION
INDIAN DEFENCE ESTATE SERVICE ASSOCIATION
INDIAN ORDNANCE FACTORIES SUPERVISORS ASSOCIATION, KANPUR
INDIAN NAVAL EMPLOYEES' UNION, MU'MBAI
INDIAN NAVAL DOCKYARD EMPLOYEES ASSOCIATION
NAVAL ARMAMENT GAZETTED OFFICERS ASSOCIATION. VIZAG
IU?XA.RCH& DEVELOPMENT ESTABLISHMENT (ENGINEERS) EMPLOYEES
UNION

S.NO.

NAME OF THE FEDERATION/UNION/ASOCIATION

99.

SCIENTIFIC WORKERS ASSOCIATION KANPUR

SCIENTIFIC WORKERS ASSOCIATION, DGQA, KATNl
SAQIIK ASPATAL KARAMCHARl SANGH, PUNE
THE ORDNANCE TECH. PERSONNEL ASSOCIATION

100.
101.

102.

MIRISTRY OF ENVIRONMENT AND FORESTS

103.
104.

105.
106.
107.
108.

BOTANICAL SURVEY OF INDIA EMPLOYEES ASSOCIATION

BOTANICAL SURVEY OF INDIA,SCIENTIFIC ADMINISTRATIVE AND
TECHNICAL OFFICERS ASSOCIATION
FOREST SURVEY TECHNICAL EMPLOYEES ASSOCIATION
NATIONAL ZOOLOGICALPARK EMPLOYEES ASSOCIATION
SCIENTISTS ASSOCIATION OF MINISTRY OF ENVIRONMENT & FOREST
ZOOLOGICAL SURVEY OF INDIA EMPLOYEES ASSOCIATION
MINISTRY OF EXTERNAL AFFAIRS

109.
110.

IFS(B) ASSOCIATION OF MINISTRY OF EXTERNAL AFFAIRS

INDIAN FOREIGN SERVICE ASSOCIATION
MINISTRY OF FINANCE

111.

112
113.
114.
115.

116.
117.

118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.

ALL INDIA FEDERATION OF CENTRAL EXCISE EXECUTIVE OFFICERS

ALL INDIA FEDERATION OF CENTRAL EXCISE GAZETTED EXECUTIVE
OFFICERS
ALL INDIA CUSTOMS OFFICERS (DIRECT RECRUIT APPRAISERS)
ASSOCIATION.
BHARTIYA CURRENCY & COINS K A W C H A R I MAHASANGH
BANK NOTE PRESS OFFICE STAFF ASSN
CALCUTTA MINT EMPLOYEES UNION
CENTRAL REVENUES CHEMICAL SERVICE ASSOCIATION
CALCUTTA MlNT WORKERS UNlON
FEDERATJON OF' OFFICERS ASSOCIATION OF MINTS SECURITY PRESSES
AND PAPER MILL
INDIAN COST & ACCOUNTS SERVKE OFFICERS ASSOCIATION
INDIAN REVENUE SERVICE ASSOCIATION
INCOME TAX EMPLOYEES FEDERATION
INDIAN CUSTOMS & CENTRAL EXCISE SERVICE ASSOCIATION
MDfA SECURITY PRESS CLASS A! EMPLOYEES UNION
INDIA SECURITY PRESS & CURRENCY NOTE UNION
INCOME TAX GAZETTED SERVICE ASSOCIATION
INDIAN ECONOMIC SERVICE ASSOCIATION
NOIDA MINT WORKERS UNION

S.NO.

NAME OF THE FEDERATION/UNION/ASSOCIATIOF!

MINHTRV OF FOOD fRoCESSlNC INDUSTRIES

129.

CENTRAL FISHERIES OFFICERS ASSOCIATION

MINISTRY OF HEALTH AND FAMILY WELFARE

130.
131.
132.
133.
134.
135.
136.
137.
138.
139.
140.
141
142.
143.
144.
145.
146.
147.
148.
149.
150.

151.
152.
153.
154.
155.

156.
157.
158.

159.
160.
161.
162

ALL INDIA PARA-DENTAL ASSOCIATION

ALL INDIA PORT AND AIRPORT HEALTH EMPLOYEES UNION
ALL INDIA CGHS AWRVEDIC & PHYSICIAN ASSOCIATION
ALL INDIA GENERAL DUTY MEDICAL OFFICERS ASSOCIATION
ALL INDIA CGHS HOMOEOPATHIC PHYSICIANS ASSN.
ALL INDIA GENERAL DUTY MEDICAL OFFICERS' ASSOCIATlON
ALL INDIA GOVERNMENT MEDICAL STORES DEPOT OFFICIAL FEDERATION
CENTRAL GOVT HOSPITALS RADIOGRAPHERS WELFARE ASSOCIATION.
COUNCIL OF NON-MEDICAL SCIENTISTS
CENTRAL LEPROSY TRAMING & RESEARCH INSTITUTE EMPLOYEES UNION
CENTRAL MEDICAL STORES EMPLOYEES UNION
DELHI DIETIC ASSOCIATION
FEDERATION OF INDIAN PHARMACIST ASSOCIATION
FORUM OF MEDICAL AND SURGICAL SERVING SUPERSPECIALISTS
(FOR MASSES)
GOVT MEDICAL STORES DEPOT STAFF ASSOCIATION
GOVERNMENT MEDICAL STORE DEPOT EMPLOYEES UNION
GOVT.MEDICAL STORE DEPOT OFFICIALS ASSOCIATION.
GROUP'B' GAZETTED NON-MEDICAL SCIENTIFIC ASSOCIATION
HOSPITALS OPERATION THEATRE TECHNICAL STAFF ASSOCIATION
HYGIENE INSTITUTE STAFF ASSOCIATION
INDIAN ASSOCIATION OF PHYSIOTHERAPISTS
JOINT ACTION COUNCIL OF SERVICE DOCTORS ORGANISATIONS
LADY HARDMGE AND KALAWATI SARAN HOSPITAL EMPLOYEES UNION
LADY HEALTH VISITORS AND AUXIUERY NURSES WELFARE ASSOCIATION
NATIONAL TUBERCULOSIS INSTITUTE NON-GAZETTED STAFF
ASSOCIATION
PHYSIOTHERAPY AND OCCUPATIONAL THERAPY PRACTITIONERS
ASSOCIATIONOF GOVT HOSPITAL AND CGHS
STAFFASSOCIATION OF Rkl KUMARl AMXT K 41 1R C ~ L L E G EOF NURSING
SPECIALIST OFFICERS ASSOCIATION OF CENTRAL HEALTH SERVICE
STAFFASSOCIAI'ION OF SEROLOGIST AND CHEMICAL EXAMINER OFFICE
SERVICE DENTAL OFFICERS' ASSOCIATION
TECHNICAL STAFFASSOCIATION OF MIN OF HEALTH & FAMILY WELFARE
TEACHING SPECIALISTS SUBCADRE ASSOCIATION
TRAINED NURSES ASSOCIATION OF INDIA

S.NO.

NAME OF THE FEDERATION/UNION/ASSOCIATION

MINISTRY OF HOME AFFAIRS

163.
164

165
166

ALL INDIA CENSUS EMPLOYEES FEDERATION

ASSOCIATION OF SENIOR TRANSLATORS (CENTRAL SECRETARIAT
OFFICIAL LANGUAGE SERVICE)
CENTRAL SECRETARIATOFFICIAL LANGUAGE TRANSLATORS
ASSOCIATION
OFFICIAL LANGUAGE WING EMPLOYEES ASSOCIATION
MINISTRY OF HUMAN RESOURCE DEVELOPMENT

I67
168
169.
170

171
172
173

174
175

ALL INDIA ARCHAEOLOGICAL SERVICE ASSOCIATION

ASSOCIATION OF GOVT. LIBRARIES 8t INFORMATION SPECIALISTS
CENTRAL EDUCATION ADVISORY OFFICERS ASSOCIATION
GOVERNMENT OF INDIA LIBRARIANS ASSOCIATION
J & N T COUNCILOF LIBRARY ASSOCIATIONSOF INDIA
NATIONAL MUSEUM NON-GAZETTED EMPLOYEES ASSOCIATION
NATIONAL L I B R ~ R YGAZETTED OFFICERS ASSOCIATION
NATIONAL LIBRARY STAFF ASSOCIATION
NATIONAL LIBRARY EMPLOYEES ASSOCIATION
MINISTRY OF INDUSTR-h-

176
177

178
179

180
181

ASSOCIATION OF THE GAZETTED OFFICERS OF THE DEPARTMENT OF

EXPLOSIVES,CIViL LINES
INDIAN SALT SERVICE OFFICERS ASSOCIATION
PATENT OFFICE CALCUTTA STAFF ASSOCIATION
SMALL INDUSTRIES DEVELOPMENT ORGANISATION NON-GAZETTED
STAFF ASSOCIATION
SMALL SCALE INDUSTRIES DEVELOPMENT ORGANISATION OFFICERS
ASSOCIATION
TECHNICAL GAZETTED OFFICERS ASSOCIATION
MINISTRY OF INFORMATION & BROADCASTING

1a2
183

184
185
186
187

188
I89

AUDIENCE RESEARCH EMPLOYEES ASSOCIATION

AIR FOREIGN SERVICES TRANSLATORS BROADCASTERS' ASSOCIATION
AIR AND DD STENO ASSOCIATION
ASSOCIATION OF RADIO & T V ENGINEERING EMPLOYEES
AKHIL BHARTIYA AKSHWANI GROUP'DKARAMCHARI SANGH
AIR & DOORDARSHAN ENGINEERING ASSN
GRADUATE ENGNEERS ASSOCIATION OF AKASHWANI & DOORDARSHAN
INDIAN INFORMATION SERVICE OFFICERS ASSOCIATION (GROUP A)

S.NO.

NAME OF THE FEDERATION/UNION/ASSOCIATIOP!

190

PROGRAMME STAFF ASSOCIATION OF AIR & DOORDARSHAN

MINISTRY OF LABOUR

191.
192.

ALL INDIA CENTRAL GOVERNMENT CANTEEN EMPLOYEES ASSOCIATION

AKHIL BHARTIYA CANTEEN MAZDOOR SABHA

MINISTRY OF LAW, JUSTICE & COMPANY AFFAIRS

193.
194.
195.
196.
197.
198.
199.
200.
201.
202.
203.
204.
205.
2Q6
207.

208.
209
210
21 I .
212.
213.
214

ASSOCIATION OF OFFICERS OF CENTRAL LEGAL SERVICE

ADVOCATES-ON-RECORD ASSOCIATION, SUPREME COURT
ASSOCIATION OF OFFICERS & EMPLOYEES OF HIGH COURT OF DELHI
CENTRAL COMPANY LAW SERVICE ASSOCIATION, NEW DELHI
EDITORIAL OFFICERS ASSOCIATION
IbDIAN LEGAL SERVICE OFFICERS' ASSOCIATION
SUPREME COURT CLASS1 OFFICERS' ASSOCIATION
SUPREME COURT CLASS IV EMPLOYEES WELFARE ASSOCIATION
SUPREME COURT SHORTHAND'KNOWMG ASSOCIATION
SUPREME COURT JUDGES LIBRARY STAFF,SUPREME COURT
TECHNICAL STAFF(PRINTING)ASSOClATIONOF MINISTRY OF LAW
MINISTRY OF MINES
ASSOCIATION OF GEOPHYSISTS GEOLOGICAL SURVEY OF INDIA
GEOLOGICAL SURVEY OF INDIA EMPLOYEES ASSOCIATION
GEOLOGICAL SURVEY OF INDIA STAFF UNION
GEOLOGICAL SURVEY OF INDIA ADMN. & MANAGEMENT OFFICERS
ASSOCIATION
GEOLOGICAL SURVEY OF INDIA SCIENTIFIC OFFICERS ASSOCIATION
GEOLOGICAL SURVEY INDIA DRILLING OFFICERS ASSOCIATION
GEOLOGICAL SURVEY INDIA MECHANICAL ENGINEERS ASSOCIATION
GEOLOGICAL SURVEY OF INDIA CLASS IV KARAMCHARI UNION
GEOLOGICAL SURVEY OF INDIA EMPLOYEES FEDERATION
GEOLOGICAL SURVEY OF INDIA EMPLOYEES ASSOCIATION, NAGPUR
GEOLOGICAL SURVEY OF INDIA EMPLOYEES ASSOCIATION, CALCUTTA.
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES A N D PENSIONS

215.
216.
217
218

2 I0

CSS GROUP 'A' OFFICERS ASSOCIATION

CONFEDERATION OF ALL INDIA CENTRAL GOVERNMENT
STENOGRAPHERS;ASSOCIATION
CENTRAL GOVERNMENT EMPLOYEES WELFARE COORDINATION
COMMITTEE, MUMBAI
CENTRAL GOVERNMENT EMPLOYEES COORDINATION COMMITTEE
CENTRAL GOVERNMENT CLERK'S UNION
26

S.NO.

NAME OF THE FEDERATION/UNION/ASSOC1ATION

220.
221.
222.
223.
224.
225.
226.

CENTRAL GOVERNMENT CLASS IV EMPLOYEES ASSOCIATION

CENTRAL GOVERNMENT STAFF CAR DRIVERS ASSOCIATION
CENTRAL GOVERNMENT DESPATCH RIDERS ASSOCIATION
CSS SECTION OFFICER'S ASSOCIATION
CENTRAL SECRETARIAT SERVICE ASSISTANT D.R. A!$SOCIATION
CONFEDERATIONOF CENTRALGOVERNMENTEMPLOYEES AND WORKERS
CENTRAL SECRETARIATSTENOGRAPHERSSERVICE GAZETTEDOFFICRERS
ASSOCIATION
CENTRAL SECRETARIAT STENOGRAPHERSERVICE ASSOCIATION
CENTRAL SECRETARIAT SERVICE(D R GAZETTED SECTION OFFICERS
ASSOCIATION
CSSS GAZETTED OFFICERS' ASSOCIATION
CENTRAL SECRETARIAT ASSISTANTS ASSOCIATION
GOVERNMENT EMPLOYEES NATIONAL CONFEDERATION
KENDRIYA KARAMCHARI SANGH
NATIONAL COUNCIL (STAFFSIDE) JCM FOR GOVT. EMPLOYEES

227.
228.
229.
230.
231.
232.
233.

MINISTRY OF PLANNING AND PROGRAMME IMPLEMENTATION

234.
235.
236.
237.
238.
239
240.
241.

ALL INDIA ASSOCIATION OF ASSISTANT SUPERINTENDENTS(UL

ALL INDIA ASSOCIATION OF INVESTIGATORS(NSS0)
ALL INDIA OFFICERS ASSOCIATION, NATIONAL SAMPLE SURVEY
ORGANISATION
ALL INDIA FEDERATION OF STATISTICAL INVESTIGATORS
CENTRAL STATISTICAL ORGANISATION SENIOR INVESTIGATOR
ASSOCIATION
INDIAN STATISTICAL SERVICE ASSOCIATION
NATIONAL SAMPLF SURVEY EMPLOYEES ORGANISATION
PLANNING COMMISSION OFFICERS ASSOCIATION
MINISTRY OF POWER

242

ASSOCIATION OF TECHNICAL OFFICERS OF CENTRAL ELECTRICITY

AUTHORITY
MINISTRY OF RAILWAYS

243.
244.
245.
246.
247.
248.

ALL INDIA RAILWAYMEN'S FEDERATION

ALL INDIA ENQUIRY-CUM-RESERVATION'CLERKS'
ASSOClAfION
ALL INDIA TRAM CONTROLLERS ASSOCIATION
ALL INDIA LOCO RUNNJNG STAFF ASSOCIATION
AKHIL BHARTIYA RAILWAY MEDICAL KARAMCHARI ASSOCIATION
ALL INDIA RAILWAY EMPLOYEES CONFEDERATION
27

S.NO.

NAME OF T H E FEDERATION/UNlON/ASSOClATlON

249
250
25 I
252
253
254
255
256
257
258
259
260
26 1
262
263
263
265
266
267
268
2 69
2 70
27 1
2 72
273
274
275
276
277
278

ALL INDIA STATION MASTERS' ASSN

ALL INDIA RAILWAY COMMERCIAL CLERKS' ASSOCIATION
ALL INDIA COMMERCIAL INSPECTORS ASSOCIATION
,
& LEVERMAN ASSOCIATION
ALL INDIA S ~ I T C H M A NCABINMAN
BHARTIA RAILWAY KARAMCHARI UNION(S&T)
BHARATIYA RAILWAY MAZDOOR SANGH
CHITARANJAN LOCOMOTIVE WORKS LABOUR UNION
CENTRAL RAILWAY OFFICERS' ASSOCIATION (GROUP A & B)
CENTRAL RAILWAY PROMOTEE OFFICERS' ASSOCIATION
DIPLOMA ENGINEERS ASSOCIATION
FEDERATION OF RAILWAY OFFICERS ASSN
INDIAN RAILWAY TICKET CHECKING STAFF ASSOCIATION
INDIAN RAILWAY TECHNICAL SUPERVISORS' ASSOCIATION
INDIAN RAILWAY PHARMACISTS ASSOCIATION
INDIAN RAILWAY ACCOUNTS SERVICE OFFKERS ASSOCIATIOX
INDIAN RAILWAY PROMOTEE OFFICERS FEDERATION
INDIAN RAILWAY CHEMICAL & METALLURIGICAL STAFF ASSOCIATION
INDIAN RAILWAY ELECTRONIC DATA PROCESSING STAFF ASSOCIATION
INDIAN RAILWAY ENGINEER GRADUATES ASSOCIATION
INDIAN RAILWAY PERMANENT WAY, INSPECTORS ASSOCIATION
INDIAN RAILWAY TELECOM UNION
INDIAN RAILWAY TRACTION WORKERS ASSOCIATION
INDIAN RAILWAY SIGNAL & TELECOM STAFF ASSOCIATION
NATIONAL FEDERATION OF INDIAN RAILWAYMEN
NATIONAL FEDERATION OF RAILWAYMEN
RAILWAY MEDICAL OFFICERS ASSOCIATION
RDSO, CLASS-111 STAFF ASSOCIATION
RDSO PROMOTEE OFFICERS ASSOCIATION
WESTERN RAILWAY OFFICERS' ASSOCIATION(GR0UP A & B)
WESTERN RAILWAY PROMOTEE OFFICERS' ASSOCIATION
MINISTRY OF RURAL AREAS AND EMPLOYMENT

279

DIRECTORATE OF MARKETING INSPECTION EMPLOYEES ASSOCIATION

MINISTRY OF SCIENCE AND TECHNOLOGY

2x0
28 1
282
2x3

ASSOCIATION OF THE SCIENTIFIC ASSISTANTS

DEPARTMENT OF SCIENCE & TECHNOLOGY SCIENTIFIC OFFICERS FORUM
GAZETTED OFFICERS' ASSOCIATION OF NATIONAL ATLAS AND
TIHEMATIC MAPPING ORGANISATION
IN IIIA METEOROLOGICAL DEPARTMENT GAZETTED OFFIC 1 ERS
ASSOCIATION
2%

S.NO.

N A M E O F THE FEDERATION/UNION/ASSOClATlON

284
285
286

INDIA METEOROLOGICAL DEPARTMENT NON-GAZETTED STAFF UNION

INDIA METEROLOGICAL WORKSHOP UNION
SURVEY OF INDIA CLASS IV KARAMCHARI

MINISTRY OF SURFACE TRANSPORT

287
288
289
290
29 1
292

CENTRAL ENGMEERMG SERVICE(R0ADS) GROUP 'A' ASSOCIATION

DEPTT.OF LIGHT HOUSES Bt LIGHTSHIPS STAFF ASSOClATlON
DIRECTGKATE OF MARINE ENGINEERING GROUP'A' OFFICERS
ASSOCIATION
GOVT OF INDIA MARINE SURVEYORS ASSOCiATION
LAKSHADWEEP HARBOUR EMPLOYEES UNION
PROJECT COMPUTERS (TECHNICAL SUB0RDINATE)ASSN

MINISTRY O F URBAN AFFAIRS A N D EMPLOYMENT

293
294
295
296
297
298
299
300
30 I
302
303
304
305
306
107
308
3 09
-;
10

ALL INDIA CPWD EMPLOYEES UNION

CENTRAL GOVERNMENT ENGINEERING DRAWING STAFF CONFEDERATION
CPWD WORKERS' UNION
CPWD MAZDOOR UNION
CPWD NON-GAZETTED STAFF ASSOCIATION
CPWD ARCHITECT ASSTT./ASSTT(AD)ASSN
CPWD ARCHITECTS ASSOCITION
CPWD. JUNIOR ENGINEERS' ASSOCIATION
CPWD JUNIOR ENGINEERS ASSN(IND1A)
CENTRAL ENGINEERING SERVICES(DR) OFFICERS ASSOCIATION
CPWD ENGINEERS' ASSOCIATION
DRAWING STAFF ASSOCIATION
DIRECT RECRUIT HORTICULTURE OFFICERS ASSOCIATION UNDER CPWD
ENGINEERING DRAWING STAFF ASSN
HOR rICULTURE SECTIONAL OFFICERS ASSOCIATION
NATIONAL FEDERATION OF GOVERNMENT OF INDIA PRESS WORKERS
NATIONAL FEDERATION OF PRINTWG STATlOPlERY & PlJBLlCATION
EMPLOYEES
TOWN & COUNTRY PLANNERS ASSOCIATION
MINISTRY OF WATER RESOURCES

31 I
112
-3 1 3
314
315
3 10

ASSOCIATION OF JUNIOR ENGINEERS OF CENTRAL WATER COMMISSION

ALL INDIA CENTRAL GROUND WATER BOARD OFFICERS ASSOCIATION
ALL INDIA FEDERATION OF ENGINEERS
ALL INDIA CENTRAL GROUND WATER EMPLOYEES ASSOCIATION
CENTRAL WATER & POWER ENGINEERJNG SERVICES GROUP 'A' ASSh:
CENTRAL WATER & POWEK COMMISSION ENGINEERS(CLASS-11)

S.NO.

NAME OF THE FEDERATIONR)NJON/ASSOCIATlON

3 17.

CENTRAL SOIL AND MATERIAL RESEARCH STATION ENGMEERING

OFFICERS(QR0UPA) ASSOCIATION
CENTRALWATER COMhAISsI0s GRADUATE ENGMEERS ASSOCIATION.
CENTRAL WATER& POWER RESEARCH STATION OFFICERS ASSOCIATION.
CENTRAL WATER & POWER RESEARCH STATION KAMGAR SAbHA
STATISTICAL & SCIENTIFICEMPLOYEES ASSOCIATION, CWC
SCIENTIFIC ASSOCIATION OF CENTRAL WATER COMMISSION

ASSOCb4
318.
319.
320.
321.
322.

DEPARTMENT OF ATOMIC ENERGY

323.
324.
325.
326.
327.
328.
329.
330.
331.
332.

ATOMIC ENERGY EMPLOYEES ASSOCIATION

ATOMIC ENERGY WORKERS 8t STAFF UNION
ATOMIC ENERGY WORKERS AND STAFF UNION, MUMBAI
BHABHA ATOMIC RESEARCH CENTRE EMPLOYEES ASSOCIATION
BHABHA ATOMIC RESEARCH CENTRE OFFICERS ASSOCIATION
DEPARTMENT OF ATOMIC ENERGY r&D GROUP ASSOCIATION
DEPARTMENT OF ATOMIC ENERGY OF SECRETARIAT EMPLOYEES
ASSOCIATION
DPS EMPLOYEES STAFF ASSOCIATION
HEAVY WATER EMPLOYEES mION
HEAVY WATER PROJECTS(B0MBAY) EMPLOYEES ASSOCIATION
DEPARTMENT OF SPACE

333.
334.
335.
336.
337.
338.

339.
340.
341.
342.
343.
344.
345.
346.
347.

INDIAN SPACE SClENTIFICOFFICERS ASSOCIAtION

INDIAN SPACE RESEARCH ORGANISATION STAFF ASSOCIATION
INDIAN SPACE RESEARCH ORGANISATION DWERS ASSOCIATION
ISRO-SAC KARAMCHARI MAHAMAUDAL
INDIAN SPACE RESEARCH ORGANlSATION STAFF ASSOCIATION
ISAC STAFF ASSOCIATION
lSTRAC EMPLOYEES ASSOCIATION
LIQUID PROPELLANT SPACE CENTRE STAFF ASSOCIATION
LIQUID PROPELLANT SPA& CENTRE EMPLOYEES UNION
SPACE ENGINEERS ASSOCIATION, KERALA
SHAR EMPLOYEES ASSOCIATION
SYAR EMPLOYEES TRADE UNION
SHAR EMPLOYEES UNION
SPACE EMPLOYEES ASSOCIATION
VIKRAM,SARABHAISPACE CENTRE EMPLOYEES UNION

:30 :

S.NO.

NAME OF THE FEDERATION/UNION/ASSOCIATlOlk'

ESTABLISHMENT OF COMPTROLLER AND AUDITOR GENERAL OF

INDIA
348.
349.
350.

351.
352.
353.

354.
355.

ALL INDIA CIVIL ACCOUNT3 EMPLOYEES ASSOCIATION

ALL INDIA AUDIT & ACCOIjNTS ASSOCIATION.
ALL INDIA FEDERATION OF DIVISIONAL ACCOUNTANT'S ASSOCITION
ALL INDIA CIVIL ACCOUNTS EMPLOYEES FEDERATION
ALL INDIA ASS0,CIATIONOF ACCOUNTS iYr AUDIT OFFICERS OF IALAD
INDIAN CIVIL ACCOUNTS SERVICE ASSOCIATION
INDIAN AUDIT AND ACCOUNTS SERVICE ASSOCIATION
JOINT ACTION COMMITTEE OF ACCOUNTS & AUDIT EMPLOYEES
ORGANISATIONS
ALL INDIA SERVICES'ASSOCIATIONS

356.
357.
358.
359.
360,
361.
362.
363.

INDIAN CIVIL AND ADMINISTP A T WE SERVICE ASSOCIATION'

INDIAN POLICE SERVICE (CENTRAL) ASSOCIATION
INDIAN FOREST SERVICE ASSOCIATION (CENTRAL UNIT)
INDIAN ADMINISTRATIVE SERVICE OFFICERS' ASSOCIATION, ASSAM UNIT
INDIAN POLICE SERVICE OFFICERS' ASSOCIATION, ASSAM UNIT
INDIAN FOREST SERVICE OFFICERS' ASSOCIATION, ASSAM UNIT
WDIAN ADMINISTRATIVE SERVICE OFFICERS' ASSOCIATION, HIMACHAL
PRADESH UNIT
INDIAN POLICE SERVICE OFFICERS' ASSOCIATION, HIMACHAL
PRADESHUNIT
INDIAN FOREST SERVICE OFFICERS' ASSOCIATION, HIMACHAL
PRADESH UNIT
IAS ASSOCIATION, KERALA
IPS ASSOCIATION, KERALA
IFS ASSOCIATION, KERALA
INDIAN ADMINISTRATIVESERVICE OFFICERS' ASSOCIATION,
MAH-4RASTRA UNIT
INDIAN POLICE SERVICE OFFICERS' ASSOCIATION, MAHAMSTRA UNIT
INDIAN FORkST SERVICE ASSOCIATION, MAMARASTRA UNIT
INDIAN ADMINISTRATIVE SERVICE OFFICERS' ASSOCIATION, MANIPUR
UNIT
INDIAN POLICE SERVICE OFFICERS' ASSOCIATION, MANIPUR UNIT .
INDIAN FOREST SERVICE OFFICERS' ASSOCIATION, MANIPUR UNIT
INDIAN ADMINISTRATIVE SERVICE OFFICERS ASSOCIATION, MEGHALAYA
UNIT
INDIAN POLICE SERVICE OFFICERS' ASSOCIATION, MEGHALAYA UNIT
INDIAN FOREST SERVICE OFFICERS' ASSOCIATION, MEGHALAYA UNIT
INDIAN ADMINISTRATIVE SERVICE OFFICERS' ASSOCIATION, MIZORAM
UNIT
*

364.
365.
366.
367.
368.
369.
370.
371.
372.
373.
374.
375.
376.
377.

3I

S.NO.

NAME OF THE FEDERATION/IJNION/ASSOCIATION

37x
3 70
380

INDIAN POLICE SERViCE OFFICERS' ASSOCIATION, MlZORAM lJNlT

INDIAN FOREST SERVICE OFFICERS' ASSOCIATION, MlZORAM U N I T
INDIAN ADMINISTRATIVE SERVICE OFFICERS' ASSOCIATION. NAGALAND
UNIT
INDIAN POLICE SERVICE OFFICERS' ASSOCIATION, NAGALAND UNIT
INDIAN FOREST SERVICE OFFICERS' ASSOCIATION. NAGALAND UNIT
INDIAN ADMINISTRATIVE SERVICE OFFICERS' ASSOCIATION. S I K I M
UNIT
INDIAN POLICE SERVICE OFFICERS' ASSOCIATION, SIKKIM UNIT
INDIAN FOREST SERVICE OFFICERS' ASSOCI.4TION, SIKKIM UNIT
INDIAN ADMINISTRATIVE SERVICE OFFICERS' ASSOCIATION. TRIPURA
UNIT
INDIAN POLICE SERVICE OFFICERS' ASSOCIATION. TRIPURA UNIT
INDIAN FOREST SERVICE OFFICERS' ASSOCIATION. TRIPURA UNIT

38 1
382
3x3
3 84
385
386

387
388

NCT DELHI
389
390
39 1
392
393
394
395
396
3 97
398

3 99
400
40 1

ASSOCIATIONS O F SCHOOLS OF SOCIAL WORK IN INDIA

DELHI VETEMNARY ASSOCIATION
DELHI SCHOOL LIBRARY ASSOCIATION
DELHl ADMINISTRATION SUBORDINATE GRADE 11. WELFARE ASSOClATIOh
DELHl GOVERNMENT PLANNING AND STAT CADRE. OFFICERS' j3'ELFARE
AS SOCIA TI ON
DELHl PROSECUTORS WELFARE ASSN
DELHI ADMINISTRATION FOOD INSPECTORS WELFARE ASSOCIA TION(PFA)
DELHI ADMINISTRATION EMPLOYEES FEDERATION
DELI-II AND ANDAhIAN & NICOBAR ISLANDS POLICE SERVICE DIRECT
RECRUIT ASSOCIATION
DELHI ANDAMAN AND NICOBAR ISLAND CIVIL SERVICE OFFICERS
ASSOCIATION
FEDERATION OF EDUCATIONAL ASSN(S) O F DELHl
GRADE I OFFICERS ASSOClATlON OF NCT DEI,HI
SOCIAL WORKER'S WELFARE ASSOCIATION
UNION TERRITORY - LAKSHADWEEP

402
403
404
405
306

LAKSHADWEEP GOVT. EMPLOYEES UNION

LAKSHADWEEP EMPLOYEES PARISHAD
LAKSHADWEEP VETERINARY SERVICE ASSOCIATION
LAKSHADWEEP PARA-VETERINARY ASSOCIATION
IJAKSIIADWEEP GOVERNMENT COLLEGE TEACHERS ASSOCIATION

S.NO.

N A M E OF THE FEDERATION/UNION/ASSOC1ATlON
UNION TERRITORY - PONDICIHERRY

407.
408.
409.
410.
41 I .
4 1.2:
413.
414.
415.
416:
417.
418.
419
420.
421.
322.
423.
424.
425.
426.
427.
428.
429
43.0.
431.
432.
433.
434.
435.
436.
437.
438.
439.

ASSOCIATION OF PONDICHERRY GOVT. AGRICULTURAL TECHNOLOGIST

ASSOCIATIONS REPRESENTING OFFICERS AND EMPLOYEES OF JIPMER
CENTRAL GOVT. EMPLOYEES WELFARE COORDINATION COMMITTEE.
PONDICHERRY
CONFEDERATION OF HEALTH EMPLOYEES ASSOCIATION
COMPOST DEVELOPMENT INSPECTORS ASSOCIATION
CONFEDERATION OF PONDICHERRY STATE GOVT. EMPLOYEES
ASSOCIATION
DEGREE?DIPLOMA ENGINEERS iNSTRUCTlONAL STAFF ORGANISATICN
EDUCATION LABORATORY ATTENDERS ASSOCIATION - PONDICHERRY
FEDERATION OF HEALTH EMPLOYEES ASSOCIATION
GEOLOGICAL ASSISTANTS ASSOCIATION STATE GROUND WATER UNIT
GOVERNMENT PRESS TECHNICAL EMPLOYEES UNION
GOVERNMENT PRESS DIPLOMA HOLDERS ASSOCIATION STATIONERY AND
PRINTING, PONDICHERRY
GOVERNMENT TECHNICAL CERTIFICATE HOLDERS ASSOCIATIOS (PWD)
HEADMASTER GR.II/SCHOOL ASSISTANT GR.I/DY. INSPECT OR OF
SCHOOLS ASSOCIATION
ISOLATED CATEGORIES EMPLOYEES ASSOCIATION. BHARATHIPURAM
JUDICIAL EMPLOYEES WELFARE ASSOCIATION
MOTILAL NEHRU GOVERNMENT POLYTECHNIC TECHNICAL STAFF
ASSOCIATION
MNGP TEACHERS ASSOCIATION
PONDICHERRY MINISTERIAL ASSOCIATION
PONDICHERRY STATE COMMERCIAL TAX OFFICERS ASSOCIATION
PONDICHERRY STATE FISHERIES DEPARTMENT TECHNICAL OFFICERS
ASSOCIATION
PONDICHERRY ACCOUNTS OFFICERS ASSOCIATION
PONDICHERRY STATE COOPERATIVE DEPARTMENT.OFFICERS
ASSOCIATION
PONDICHERRY POWER ENGINEERS SERVICE ASSOCIATION
PORT ENGINEERS ASSOCIATION OF PONDICHERRY
PONDICHERRY STATE GOVERNMENT EMPLOYEES CENTRAL FEDERATION
PONDICfrERRY STATE P W.D SUPERVISORY STAFF ASSOCIATIOS
P.W.D. TECHNICAL STAFF ASSOCIATION
PONDICHERRY STATE P.W.D.'OVERSEERS ASSOCIATION
PONDICHERRY STATE PWD DRAUGHTSMEN ASSOCIATION
PONDICHERRY STATE METER READERS (PWD) ASSOCIATION
PONDICHERRY STATE PWD WORK INSPECTOR ASSOCIATION
PONDICHERRY STATE DIPLOMA ENGINEERS
: 33 :

S.NO.

NAME OF THE FEDERATION/lJNION/ASSOClATlON

440.
441.
442.

PONDICHERFRY STATE SENIOR MEDICAL OFFICERS ASSOCIATION

PONDICHERRY STATE ASSISTANT SURGEIONS ASSOCIATION
PONDICHERRY STATE HOSPITAL EQUIPMENTS WORKSHOP EMPLOYEES

443.
444.
445.

PONDICHERRY STATE DIETICIAN ASSOCIATION

PONDICHERRY STATE OPTHALMIC TECHNICIANS ASSOCIATION
PONDICHERRY STATE HEALTH OPERATION THEATRE TECHNICAL STAFF
ASSOCIATION
PON DICH ERRY LEPROSY TECHNICA L STAFF ASS OC1AT I ON
PONDICHERRY TRAINED HEALTH INSPECTORS ASSQCIATION
PONDICHERRY STATE PHARMACISTS ASSOCIATION
PONDICHERRY STATE LAND SURVEYORS ASSOCIATION
PONDICHERRY SURVEY COMPUTER DRAUGHTSMAN ASSOCIATION
PONDICHERRY GOVERNMENT FIELD ASSISTANT ASSOCIATION
PUDUVAI MMSARA THOZHILALAR SANGAM
PONDICHERRY ELECTRICITY EMPLOYEES FEDERATION
PONDICHERRY STATE RADIOLOGICAL STAFF ASSOCIATION
PONDICHERRY STATE PRIMARY SCHOOL HEADMASTERS ASSOCIATION
PONDICHERRY POSTGRADUATE TEACHERS WELFARE ASSOCIATION
PONDICHERRY GOVERNMENT PRE-PRIMARY SCHOOLS STAFF
ASSOCIATION
PONDICHERRY STATE HIGHER SECONDARY SCHOOL INSTRUCTORS
ASSOCIATION
PONDICHERRY TECHNICAL HIGHER SEC. SCHOOL TECHNICAL STAFF ASSN
PONDICWERRY STATE TECHNICAL TEACHERS ASSOCIATION
PONDICHERRY
PHYSICAL DIRECTORS AND DIRECTKESS ASSOCIATION
PHYSICAL EDUCATION TEACHERS ASSOCIATION PONDICHERRY
PONDICHERRY GOVT. STUDENTS HOSTEL EMPl OYEES ASSOCIATION

UNION

446.
447.
448.
449.
450.
451.
452.
453.
454.
455.
456.
457.
458.
459.
460.
461.
462.
463.
464.
465.
466,
467.
.46X.
469
470.
471.
472.
473
474.

PONDICHERRY GOVT.AGRICULTURAL DEPARTMENT EMPLOYEES UNION

PONDICHERRY STATE INSECT COLLECTORS ASSOCIATION
PONDICHERRY GOVT. AGRICULTURE LABORATORY TECHNICAL STAFF
ASSOCIATION
PONDICHERRY AGRICULTURAL TECHNICAL EMPLOYEES ASSOCIATION
PONDICHERRY STATE TAHSlLDARS AND DY TAHSlLDARS ASSOCIATION
PONDICHERRY STATE PHYSICALLY HANDICAPPED GOVT SERVANTS
ASSOCIATION
PONDICHERRY GOVT. BALASEVIKAS AND CONDUCTRESS ASSOCIATION
PONDICMERRY STATE SOCIAL WELFARE ORGANISERS ASSOCIATION
PONDICHERRY STATE GRAMASEVA KS AND GRAMSEVI K AS ASSOCI A TlON
PONDICHERR Y STATE STATISTICAL FIELD SUPERVISORS A SSOClATlON
PONDICHERRY STATE ISOLATED CATEGORY EMPLOYEES ASSOCIATION

S.NO.

475.

476.
477:
478.
470.
480
48 I
4x2.
4x3.
4x4.
4x5
4x6.

4x7.
4x8.
4x9

490.
401.

492.
493.
404.

495.

NAME OF THE FEDEHATIONIIJNIONIASSOCIA'I'ION

PONDICHERRY GOVERNMENT DRIVERS ASSOCIATION

PONDICHERRY STATE FIRE SERVICES STAFF ASSOCIATION
PUAlJVAl ARASU WATCHMAN
PONDICHERRY STATE JAIL WARDERS ASSOCIATION
PONDICHERRRY STATE SUPERINTENDENTS ASSOCIATION
PUDUVAI MANIL PENSIONTHAR SANGAM
I'ONDICHERRY STATE INDUSTRIES DEPTT TECHNICAL STAFF
.4S SOCI A TI 0N
PONDICHERKY GOVERNMENT PROJECTOR OPERATORS ASSOCIATION
PLANNING & RESEARCH DEPARTMENT GAZETTED OFFICERS UNIT
POI :DICHERRY CIVIL SERVICES OFFICERS ASSOCIATION
RETIRED POLICE OFFICERS ASSOCIATION PONDICHERRY
RADIO SUPERVISORS AND RADIO TECHNICIAN POLICE RADIO BRANCH
STOREKEEPING STAFF ASSOCIATION
SENIOR LABORATORY TECHNICALSTAFF ASSOCIATION
THE ASSOCIATIONOF COMMISSIONERSOF COMMUNE PANCHAYATS
TECHNICAL OFFICERS ASSOCIATION O F GOVT. AUTOMOBILE WORKSHOP
AND TRANSPORT DEPARTMENT - PONDICHERRY
THE STAFF ASSOCIATION O F THE TOWN & COUNTRY PLANNING
DEPARTMENT AND PLANNING AUTHORITIES - PONDICHERRY
TEACHERS ASSOCIATION - PONDICHERRY
THE ASSOCIATION OF THE EXECUTIVE STAFF
THE PONDICHERRY GOVERNMENT INFORMATION TECHNILOGY
PROFESSIONALS ASSOCIATION
WIRELESS OPERATORS. POLICE RADIO BRANCH - PONDICHEKRY

PENS1 ONERS
496.
497.

498.
499.
500.
501.
502.

503.
504.
505.
5 06.

w7.
?OX.

so0

ALL INDIA EX-SERVICEMEN WELFARE ASSOCIATION

ALL INDIA CENTRAL GOVERNMENT PENSIONERS' ASSOCIATION
ALL INDIA RETIRED RAILWAYMEN FEDERATION
ALL INDIA ORGANISATION O F PENSIONERS
ALL INDIA CENTRAL COMMITTEE O F PENSIONERS' ASSOCIATION
ALL INDIA RETIRED RAILWAYMEN ASSN.
ALL ASSAM CENTRAL GOVERNMENT CIVILIAN EMPLOYEES PENSIONERS'
ASSOCIATION. ASSAM
BHARAT PENSIONERS' SAMAJ
CENTRAL d ALL INDiA SERVICES PENSIONERS' ASSOClATlQN
CENTRAL GOVERNMENT PENSIONERS' ASSOCIATION, SHIMLA
DISABLED WAR VETERANS(IND1A)
DEFENCE SERVICES OFFICERS PENSIONERS' FORUM
EX-SERVICEM EN MAHA PANC tlAYA1'
FEDERATION OF,CENTRAL GOVERNMENT-PENSIONERS ORGANISATIONS

S .NO.

NA ME: 0I '1'1 1 E FE:I) E HAT I 0 N / I1 N I (1N /A S S 0 ('I t l l ' I O

-5 10

51 1
5 12
513
i I4
5 15
5 10
517
518

01'H K HS
5 1')
520

51 I
522
523
524
i2i
5%
527
528

529
530
53 1
532
533

534
53s
536
537

538
530
540

h1.L INDIA F7EL)LIKATION OF DIPLOMA ENGINEEKS. I~l31.l11

\'

,4('('0(,!NT.4X'l. ,ANI) ('EN']-R A I. ( i 0 E KN31f S T 0 I:FI C E K S ' :\ S S O(' I ;\ '1.1 O N .

A4 AN 1PU K
A1.I. INI)1.4 RMS UNION (ASS:'\X1 ('IK('I 1; BK.Ah'Cl{')
ALL INDIAN ASSOCI.ATION OF II'OS~ASPOS.(ASS.4!Vl ('IR('L1; l 3 l ~ . A \ ( ' l I )
AL1. INDIA POST.41, ER1PLO~'EESO N I T . ASS.Ah4

ALL. INDIAN AI~P.IINISTK.i\I'l\~EFh4I'LYEES 1'NIOS. ASS.;\Jl

ALL INDIA ASSOCIATION OF IRM/ASKMS (ASSAhl (*lKCLE)
C 00K DIK AT I0N COhl M I TT E II 01: C E h'T R .i\I.. G 0 V 1; K S J11.; 'i
1' I-: \ 1I' I 0) E I.: S.
s I ii Klh4
cE N T K A t , Gov13ii3 M EN-r EMP LO\iE E s \v EL FA K E c00K 111s .A T I oN
(30hl M 1TT E E . S AG A LAN D
C EN T RA L GO V E RN M ENT N 0N -G A 2 ETTE D E 54 P L0 1' E E S .*IS S Oc' 1A TI 0N .
MAN 1PI,' R
C E N T R A 1, GO!' E RN M EN T E hl P LO Y E E S \$'EL 1: A K E C 00I< DI N A T I0 N
C O M M 1TT EE . X I IZOR A h4
CIVIL AUDIT ASSOCIATION, MEGHALAYA
CLASS Ill SERVICE ASSOCIATION. SURVEY OF INDIA. h4EGHALAY.A
COORDINATION COMMITTEE OF CENTRAL GOVERNMENT EMPL0)'EES.
MEGHALAYA
CENSUS EMPLOYEES ASSOCIATION, ARUNACHAL PKADESH
COORDINATION COMMITTEE OF CENTRAL GOVERNMENT EMI'L0)'EES
AND WORKERS. ASSAM
COORDIKATIONCOMMITTEE OF I' K: 'r EMPLOYEES UNION. N I-: c 1 i u . i :
CENTRAL SERVICES ASSOCIATION, HIMACHAL PRADESH
COORDINATION COMMITTEE OF CENTRAL GOVERNMENT EMPLOJ'EES
A N D WORKERS, SHIMLA
ENGINEERING SUBORDINATES ASSOCIATION
GROUP A X: 13 CEXTRAI, GOVERNMENT EhlPLOYEES ASSO('IA?'li)S.
1'RI 1'; R A
GKOUP C Ki I)(:EX T'RAI, GOVIiKWMEX?' Ehll'l,OYf<l~SA S S ~ ) ~ ~ l A ' l ~ l O S .
~

'

S.NO.

NAME: OF THE FEDERATION/IINION/ASSOCIA'TION

541.
542.
543.
544.
545.
546.
547.
548.
549.
550.
551.
552.

TRIPURA
KARAMCHARI CLASS IV UNION, SURVEY OF INDIA. MEGHALAYA
MINISTERIAL STAFF ASSOCIATION. SURVEY OF INDIA. MEGHALAYA
METEOROLOGICAL DEPTT STAFF UNION, GUWAHATI BRANCH
NATIONAL FEDERATION O F THE BLIND, NEW DELHl
NORTH EASTERN COUNCIL SECTT EMPLOYEES ASSOCIATION. SHILLONG
N E RAILWAY EMPLOYEES ASSOCIATION, ASSAM
N E RAILWAY PROMOI'EE OFFICERS' ASSOCIATION. ASSAM
N E RAILWAY OFFICERS' ASSOCIATION (CLASS I). ASSAM
PROGRAMME ASSOCIATION O F AIR AND DDK. MEGHALAYA
REGIONAL COORDINATION COMMITTEE OF P fl: T UNll . ASSAM
SURVEYORS' ASSOCIATION. MEGHALAYA
TECHNICAL STAFF ASSOCIATION BUREAU. SHIMLA

: 37

DEFEhCE FORCES
-I

G E N E R A L S R O Y C'HOWDHURY. CHIEF O F A R M Y S T A F F

AIR CHIEF h l A R S H A L S K SAREEN. C H I E F OF AIR STAFF

XDMIKAL V S S H I K H A \ i ' A T . C'HIEF O F NAVAI, STAFF

LT G E h J M GAKGA. DIRECTOR G E N E R A L O F 0L;ALlTY ASSURANCE

X I K CHIEF MARSHAL N C: SURI(RETD)

.4Dh4lRAI, R H TAHILIAKl(RI'TD). P V S A4

10

BRlCi S P SIBAL(RE1.D)

S E CRE TA R I E S/SP 1; CI A I, S E CR ETA H I E S/ A D 1) I -1I 0NA L S E CK:E 1'A H I E S TO

GOVERNMENT OF INDIA

SI,SO

KAME A N D DESIGNATION

13

SH K I (; 13ALA KR ISHN AN. S1X.R I T A RY. DEPA K'I'M!-:N'T OF A(; K K'ljLT\ Jlili
AN11 COOPERATION

I4

SHRI Y N CHATURVEDI. SECKETARY(1 S M & 11 ). MINISTRY O F

HEALTH B FAMILY WELFARE

15

SHRI I' I' ('HAIJHAN. SECRE'I'AKY. IXPT?' 01:I-IEAL'I'li

I6

DR R C'HIDAMBARAM. CHAIRMAN. ATOMIC ENERGY COMMISSION

17.

SHRl P K DASGUPTA. SECRETAkY. DEPTT O F EDUCATION

I x.

SHRl S GOPALAN. SECRETARY, MINISTRY O F INFORMATION &

I3ROA DC A STlN G

19.

MRS SARLA GOPALAN, SECRETARY. DEPTT OF WOMEN 6 CHILD

DEVELOPMENT

20.

SHRI SALMAN HAIDAR. FOREIGN SECRETARY. MINISTRY OF EXTERNAL

AFFAIRS

21.

SHRl P C HOTA, SECRETARY. DEPTT OF ADMINISTRATIVE REFORMS

B PUBLIC GRIEVANCES

7')

DR A P J ABDUL KALAM. SCIENTIFIC ADVISER TO RAKSHA MANTRI

MINISTRY O F DEFENCE

23.

SHRl V K. KAPOOR, SECRETARY. DEPTT OF DEFENCE PRODUCTION &

SUPPLY

24.

DR K. KASTURIRANGAN, CHAIRMAN. SPACE COMMISSION

25.

SHRI G K. KHARE, CHAIRMAN. RAILWAY BOARD

26.

DR L MISRA. SECRETARY (LABOUR) AND DG E&T. M1N O F LABOUR

27.

SHRl M.P MODI, CHAIRMAN(TELEC0M COMMISSION) & SECRETARY.

DEPTT OF TELECOMMUNICATION

28.

SHRI K PADMANABHAIAH, SECRETARY(H0ME). MINISTRY O F HOME

AFFAIRS

--.

39

SHKl K U S PKASAD. SECRETARY. DEPTT OF POSTS

SHRI K RAJAN. SECRETARY. ANIMAL HUSBANDARY A N D DAIRYING
SHRI C RAMACHANDRAN. SECKETAKY, DEPTT Of: URBAN DEVELOI1hlI:.NT
PROF. V S. KAMAMURTHY. SECRETARY. DEPTT OFSCIENCE B
TEC 11N 0LOGY
DR M S REDDY. SECRETARY. MINISTRY OF WATER RESOCJKCES
SHKl S S.4TYAM. SECRETARY. DEPTT OF STATISTICS

SHRl A C SEN. SECRETARY. MINISTRY OF MINES

SHRl B P SINGH. SECRETARY. DEPTT O F CULTURE
SHRl CHET SINGH. FINANCIAL ADVISER. MINISTRY OF DEFENCE
SHRl N K SINGH. SECRETARY(REVENUE). MINJSTRI Of FlK:IKCl~
SHRl V SIVAKUiMARAb!. FINANC1.4L COMMISSIONER. MI\ISTRY OF
RAILWAYS (RAILWAY BOARD)
41.

SHRI M R SJVARAMAN. SECRETARY. DEPTT OF REVENUE

42

SHRJ S SUNDER. SECRETARY. MINISTRY OF SURFACE TRANSPORT

43.

DR DJNESH CHANDRA. ADDL. SECRETARY. DEPTT. OF PENSIONS &

PENSIONERS WELFARE

HEADS OF DEPARTMENTS
44

DR S K ACHARYA. DIRECTOR GENERAL. CFfY OGICA!, S L R V E Y OF lNDJA

45

SHRI CHANDRESH BHUSHAN. REGISTRAR G E N E R A L . SUPREME C O U R T OF

INDIA

46

SHRI R GANESAN. CHIEF POSTMASTER GENEKAL. MUMHAI

SL N O

NAME AND I)ESI<;NA'I'ION

47.

SHRI S. GHOSH. KEGISTRAR, SUPREME COtJRI' 01: INDIA

48.

SHRI RAVI KATHPALIA. CONTROLLER GENERAL of: ACCOUNTS

49.

SHRl K.K. MADAN, DIRECTOR GENERAL, C P W 3

50.

DR. A.K. MUKHERJEE, DIRECTOR GENERAL. HEALTH SERVICES

51.

SHRI S.S.NATARAJAN, DGOF L CHAIRMAN, ORDNANCE FACTORY BOARD

52.

SHRI A.N. PRASAD, DIRECTOR. BHABHA ATOMIC RESEARCH CENTRE

53.

SHRI KALYAN RUDRA. DIRECTOR GENERAL. RAILWAY PROTECTION FORCE

54.

SHRI RAMESH SHARMA. REGISTRAR. DELHI HIGH COURT

55.

COMMODOR SRINIVASAN. CHIEF HYDROGRAPHER. NAVAL HYDRAGRAPHIC

OFFICE. DEHRADUN

56.

SHRI K s VENKATARAMANI. MEMBER(T). CENTRAL EXCISE GOLD

APPELLATE TRIBUNAL

CENTRAL POLICE ORGANISATIONS

5 7.

SHRI D.K. ARYA, DIRECTOR GENERAL, BORDER SECURITY FORCE

58.

SHRI K. DEKA, DIRECTOR, DIRECTORATE O F COORDINATION (POLICE

WIRELESS)

59,

SHRI D.C. PATHAK, DIRECTOR, INTELLIGENCE BUREAU

GO.

SHRl K VlJAYA RAMA RAO. DIRECTOR. CENTRAL BUREAU O F

INVESTIGATION

GI.

LT GEN. T P.S. RAWAT, DIRECTOR GENERAL. ASSAM RIFFLES

62.

SHRI JOGINDER SINGH, DIRECTOR GENERAL. INDO-TIBETAN BORDER

POLICE

63.

SHRI N.K. SINGH, DIRECTOR GENEKAL. BUREALj O F POLICE RESEARCH

41

04

SHK! A.K. TONDON. DIKEC'I'OK GLNEKAI.. ('ISX'II'KAI, ININS'fKI.4I.

SECURITY FORCE A N D NATIONAL SECURITY GUARDS

hS .

SHRl S.('. TRII'ATHY~ DIRECTOR GENERAL. CIVIL DEFENCE. MINISTRY

OF HOME AITAIRS
'

00.

SHRI S.V.M. TRIPATHY. DIRECTOR GENERAL. CENTRAL RESERVE

P O I K E FORCE

CHIEF SECRETARIES/ADMINISTRATOROF STATES AND I'NION TERKII'ORIES

67.

SHRJ S.R. ARYA. CHIEF SECRETARI'. GOVI.~RNMENTO F PONDICHERKY

GX.

SHRl A. BHATACI IAKJEE, CHIEF SECRETARI'. GOVERSMENT O F ASSAM

69,

SH R1 G .S C H EE MA. A DMIN I STKATOR. LA KS HA D\\X E P

70.

SHRl M. DAMODARAN. CHIEF SECRETARY. GO\'ERXTMEI\('T OF TRIPURA

71.

SHRl N. HARIBIIASKAR. CHIEF SECKHTARY. GOVERNMENT OF TAMILNADU

72.

SHRl T.C.K.LOTHA. CHIEF SECRETARY. GOVERNMENT OF S A G A L A N D

73.
.

SHRI R. RAMACHAWDRAN "AIR. CHIEF SECRETARY. GOVERNMENT OF

KERALA

74.

SHRl K.K. SINHA. CHIEF SECRETARY, G O V E R S W N T O F MEGHALAYA

75.

SHRI K.K. SETHI. CHIEF SECRETARY, GOVERXMENT O F MANIPUR

76

SHRl S.P. UPASANI. CHIEF SECRETARY. GOVERSMEST OF MAHARASHTRA

77.

SHRl K.A. VARADAN, CHIEF SECRETARY. GOVERKSlENT O F SIKKIM

42

!HOXlINENI PERSONS WITH WHOM THE <~OhlhllSSlONIhIEHA<lEl)

COVEHNORS.
1

Dr P C Alcsandcr Govcrnor of Maliarashtra

*
7

Sliri Komcsh Bhandan. Go\ crnor olTripura

Shri P Shiv Shanhar. Go\ crnor of Kcrala

Shri P.R Kyidiah. Go\cnior of Mi~oram

CH 1EF M I NI STERS/DEPUTY CHI EF MI N 1STER/M I N1 STERS/MP

5

Shri A K.Anron!.. Chicf Ministcr. Kcrala.

6.

SIiri P.K. Chamling. Chicf Ministcr. Sikkirn

7.

Shri S. C. Janiir. Chicf Ministcr. Nagaland.

S.

Sh.R. V.Janakiraman. Chicf Ministcr. PondichcT

Shri Manohar Joshi. Chicf Ministcr, Maharastra

10.

Dr. M. Karunanihhi, Chicf Ministcr, Tamil Kadu.

11

Shri Rcishang Kicshing, Chicf Ministcr. Maniyur

12.

Sliri Lalthanha\vla, Chicf Ministcr, Mimram.

13.

Shri S.C. Marak, Chief Ministcr, Mcghalaya

14.

Shri Hitcshwar Saikia, Chicf Ministcr, Assam

15.

Shri Baidya Nath Majumdar. Dcputy Chicf Ministcr, Tripura

10.

Shri Gopinath Munde. Dcput!. Chicf Minister: Maharastra

17.

Shri J. Lalsangzuala, Financc Ministcr. Mizoram.

IS.

Mrs. Margarct Aha. Mcmbcr of Parliamcnt.

43

PP

'SZ

'PT
'S

'ZZ
'I2

'OZ
-6 I

23. Post Parbong. Maniyur

CENTRAL POL1,CE ORGANISATIONS

(NON PARA MILITARY ORCANISATIONS)
24, National Sccurity Gaurd Traning Ccntrc and Garrison at Mnticsar. tIan.ana

2 5 . Intclligciicc Rurcau Hcadquancrs. Nc\v Dclhi

26. National Crime Rccords Burcnu. New Dclhi.
27. National lnstitutc of Crminoiob? & Forensic Scicncc, Ncw Dclh~.

28. Headquartcrs of Laboraton. of Govt. Esamincr of Qucstioncd Docunicnts. Stiinila

DEFENCE ESTABLISHMENTS
29. Hcadquancrs Military Engineering Scnicc. New Dclhi.

30. InfantF Division. Pooncli and Infan@. Division. Jammu & Kashmir.

3 1 , Harbour Arca and Nava1,lnstallations B Ship. Mumbai

32. DRDO Snow and Avalanchc Study Establishment, Manali, Himachal Pradcsh
33. .Air Forcc Firc P o w r Dcnionstration. Pokhran
34. Dcsert Scctor in Rajasthan - Army Exercises

35. Hqrs. Wcstcrn Naval Command, Mumbai

30. Naval Dock!ard, Mumbai.

37. Naval Arniamcnt Dcpot. Karanja

46

40. Iica\!. Vdiiclc Facton.. Avadi.

1 I . Etigiiic Facton. Avadi.

92, Clothing~acton.Avadi.

43. Dtc. Gcncral of Bordcr Roads. Kashmir Housc. Ncw Dclhi.

44. Conibat Vchiclc Lcscarch and Dcwlopmcnt Establishnicnt. Avadt .

45. Rcgional Hcadquartcr of Const Guard. Chcnnai.

RAI LW AY ESTABl ,I SH MENTS

40. Track lnspcction of Dclhi Arca. IRCA Building B DRM Officc ol' Railways. Ncw k l h i
47. Jammu-Udhanipur Rail Project
4K. Rail Coach Factor?. Kapurthala, Punjab.

49. lntcgral Coach Factov, Pcrambur.

50: Mciropolitan-Rapid Transport Systcni. MinistF of Railways. Chcnnai

5 1 . \I.'csiciii Zonal Krtilway Hqrs. & Suburban S>stcm.'Mumbai

5 2 . . Cciitral Railway Hqrs., Mumbai.

53. Passcngcr Rescrvation System, Control Oficc of Dclhi Division of Northcm Railway.
Dclhi
54. Cardiolog?, Unit; Railway Hospital, Pcrambur.
5 5 . Nagorc and Nagapattinatp Railway Stations, Pondicheny

OTHER ESTABLISHMENTS
56. C.P.1V.Dconstruction in Vigyan Bhawan, New Delhi.

57. C.P.\V.D. construction of Parliament Lbrary and Hall of Special Display at Pragati

Maidan. Nc\v Delhi.

SN. Fast Rrccdcr Rcactor. Dcpartnmt of Atomic Encrg. Madras

47

59.

Bhabha Atomic Kcscarch Ccntrc. Muriibai

60, Indian space Rcscarch Organisation, Trivaidrum

6 I . Vikram Sarabhai Spacc Ccnlrc Trivandrum

62. Liquid Propulsion Syslcms Ccntrc. Mahcndragiri.

63. Test Facility of Liquii Propulsion Systcms Ccntrc, Mahcndragiri.

64. Atomic Encrgy Commission Hqrs. Mumbai
65

Missile Prcparation Facility,TUNIR

66. Ncw Customs Housc, Mumbaj.

67. Air Customs, Sahara International Airport. Mu'inbai

68. State Sccrctariat at Shimla.
69. State Sccrctariat. Govt.of Maharastra; Mumbai

70. lncomc Tax Settlement Commission, Mumbai

7 1. Films Divisions. Mumbai

72. Jawaharlal Institute of Postgraduate Medical Education and Research

(JIPMER).Pondichcny

48

ANKEXE: -1.10

DETAl LS REGARD1 NG COh.IMlSSlONEDSTUD1ES

SL
NO

INSTITUTE TO WHICH
STUDY WAS ASSIGNED

NAME OF THE
STUDY

INDIAN INS'I'l'lU1'13 01.' 1'1 JIII.IC'

AIlMINISTIIA'I'ION,
NEW IIEI.1 I1

FACtJLTY OF MANA<XMlIh'l Sl~lJ>ilS

lJNIWRSlTY OF I)l3,1~1,
1>)3LIII

RI:STKUCTURING OF SEKVICI'S IN
THE: FIF1,II OF SCIENCE AND
TECI lNOLOGY & AGRICUL'I'IJKAI,
KESEARCH
SUIU'I,US M A N P O W K O N '1*1-11: INDIAN
IIAII .WAY S

49

INIIIAN INSIITUTE 01:SCIENCE.

HANGALORE

SI.

NO

IKS'I'IIUTK 'I'O WHICIi

S1'III)Y WAS ASSIGNED

NAME OF I H E

STUDY

10.

11.

12.

13.

14.

15.

16.

17.

I')I:.'lI~RMINATION OF MINIMUM
S N A K Y FOK CENTRAL GOVERNMIXI'
IJMI'I.OYEI~S

1 x.

1~E'II~RM!NA'I'ION
OF A KA'I'IONN,
SALARY STRUC'I'IJRE FOK SENIOH
FIINC'I'IONARIES IN THE Cl%l"AI,
GOVIJI<NMI-:NT

19.

so

INDIAN lNSI'Il*lJ'IE O F P I Jl31.1C

N1MINIS'I'RAlION.
NI:W 11131.1 I1

ANNEXI;:-1.1 1

S ~ J M M A R YTABLE OF WORKING GROUPS

SINo. Category of Posts

studied by the
Working Group

I . Laboratory
Technicians

Scope of

Constitution

S1udy

To examine the
disparities in the pay
structure of Laboratory
Technicians, Laboratory
Asstts., Chemists,
Laboratory Attendants
etc.

1 Jt. Secretary (Admn.)

Ministry of Science & Technology

2. Jt. Secretary (Per)
Ministry of Defence
3 Jt. Secretary (Estt )

Deptt of Supply
Ministry'of Commerce
4. Jt. Secretary (Admn.)

Ministry of Rural Maairs &

Employment
5 . Jt. Secretary (Police)

Ministry of Home Affairs

6. Executive Director

Railway Board
Ministry of Railways
2

1. Jt. Secretary (Admn.)

Non-Gazetted To examine the need for
Deptt. of Science & Tecllnc.ogy
Scientific Staff maintaining separate
Ministry of Science & Technology
(TecMScientific cadre of specialists
Research Asstts.) among non-gazetted staff
2. Jt. Secretary (Admn.)
And for rationalising the
Deptt of Health
Pay structure, career
Ministry of Health and Family
Progression, special
Allowances and also the
Welfare
Formation of an
Organisedl unified service
3 It. Secretary
Deptt of Agricultue &

SI No. Category of Iosts

studied by the

Constitution

Scope of
Study

Working Group

Cooperat ion
Ministty cif Agriculture
4. Executive Director

Railway Board
Ministry of Railways
5 . Director of Personnel

Defence Research Br Development

Organisat ion
Ministry of 1)ctencc
3.

Para Medical
Staff

Examination of the nature 1 Jt Secretary (Admn )

Ileptt of Health
and nomenclature of posts
Ministry of Health arld Family
to be included in the
Welfare
category of para medical
staff, optimisation of
2 Jt Secretary(Police)
their man power and
illinistry of Home .Ntiirs
rectification of the
problems ofanoriialies in
pay and promotion
3 J t Secretary (Per s)
Deptt. of Science Br Technology
Ministq- of Science & Technology
4 J t . Secretary (Adnin.)

Ministry of Defence
5 Director General

Railway Health Services

Ministry of Railways
6 Dy. Directr General CMedical)

Deptt. of Posts
7 J t Secretary
Ministry of Environment & Forest

52

L'etei-inarians

'1.0 define, examine and

suggest the co-relation
between the size of
para medical and medical
service and to look into
the demands for parity
inter se between these
categories and
rectification of
anomalies in pay scales
and stagnatioii

I . Director General
Remount Veterinary Corps
Ministry of Defence

2 Jt Secretary (Admn )
Deptt of Animal IIusbandry
Ministry of Agriculture
3. J t . Secretary (Admn.)

Deptt. of Health
4 Jt Secretary

Ministry of Rural Airairs &

Employment
5 . Jt. Secretary

Ministry of Environment R:
Forests
6 Director

Veterinary Services
Delhi Administration
7 Representatives of
Para Military Forces and
Border Security Force
5

Printing Staff

To suggest sttPs to bring

uniformity in pay scales
and service conditions
and removal of existing
disparities

1 Add1 Secretary and Jt Secretary

Ministry of Urban Affairs Kr
Employment
2 Executive Director
Railway Board ( G )
Ministry of Railways

3 Jt Secretary
Ministry of Finance

SI No. Category of Posts

studied by the
Working Group

Scope of

( onstit ut ion

Study

4 Jt Secretary

Ministry of Science Rr Technology

5 . Director
Postal Board
I k p t t . of Posts
6 Ilirector

f rin t ing
Directorate o! Printing
6

Electronic Data Rationalisation of pay

Processing Staft scales of EDP staff and
(ED0
examination of the
feasibility of crealing a
Central Informatics
Service

1 Spl Secretary

Planning.Commission
2 Director General
National Informatics Centre
3 J t Secreta?
Deptt of Personnel Kr Training
3 J t Secretary

Deptt of Expenditure
5 Executive Director (Acctts)
Ministry of Railways
6 Scientist/Engineer (Grade SG)

Deptt, of Electronics
7 J t . Secretary
Atinistry of Honie Aftairs
8 Director

Ministry of Defence .

Work
EstabliShment
Charged
Nornis

Comparative Study ofthc 1 Director (MI'P)

norms for work charged
Deptt of I'elecom
estt in various
2 Chief Engineer (HRM)
Ministries/Departments
Central Water Cornmissioni
with a view to
rationalising then1 and
effecting economy
3 Director SIU
Deptt of Expenditure

4 Director (Plg RC. Coord)

tleptt of Defence Production &
Supply
5 Director (Works)
Deptt of Defence
6 Supdt Engg (Coord)

Central Public Works Department

7 Director ( C )
Fifth Central Pay Commission

Stenographers
outside
Secretariat

To examine the demand

for parity in the pay scales
of Stenographers in the
Sectt or HQrs Offices and
those in the attached and
subordinate offices or in
the field formations and
to examine the adequacy
of the promotional
avenues available to
them

1 Jt Secretary (S)
Fifth Centra! Pay Coniniission

2 Executive Director
Ministry of Kailways
3 Jt Secretary

Ministry of Defence
4 Director (C)

Fifih Central Pay Conmission

5 Of'ficer on Special Duty (PC)
oeptt of Posts

SI No. Category of Iosts

studied by the
W orki rig G 1-011 11

Scope of
st lid!

7 Dircctor (1;)
I>eptt of I e r s ~ n ~K:
i ~Training
l

Language
1nst ruct ors

10e\amine the demarid

h i parity i n pay scales
and promotional a \ w u e s

1 It Secretary(S)

I itih Central Pay (oimiission

2 .It SecIctlr\
Ilcptt of Persotunel

5 J t Secretary (Training)
hlinistn. o! Ilefknce

10. Accounts Staff To esamine the need h i paritv in pay scales and
s c n k e conditions

1 .It Sccietar->.(S)
!-itill (enti-al Pay (ommission

2 Addl I- .,\ (I)R: J1 Secrctar).

\linistr\, of 1)efencc

SI No. ('ategory of Posts

studied by the
Working Group

Scope of
Study

6 Director ( C )

Fifih Central Pay C:,)rnmission

7 Principal Director (Stall)
Office of'C & A G
8 Jt Director (Fin)

Slinistry of Railways
9 I>y Secretary (A)

Fifth Central Pay Commission

10 Dy Secretary (E)

Fifih Central Pay Comniission

I1

Artists

For streanilining the

grade structure

I J t Secretary ( R )
Fifth Central Pay Commission

2 Jr Secretary (IP&CA)
\finistry of Inforniation K:
. Broadcasting

Secretary (B)
Slinistry of' Information K:
13 road casting

-3 J t

4 J t Secretary (Films)

3linistry of Information K:
Broadcasting
I2

Cameramad
Photographer

For streamlining the

grade structure

I Jt Secretary (K)
Fifih Central Pav Conimission

2 Jt Sccrelary ( E )
Ili riis~rv 01. Defcncc

57

Sl No. Category of Posts

studied by the

Scope of

< onst it u t ioa

Study

Working Group

3 Jt. Secretary
Defence Production
Ministry of Defence
4 Jt Secretary (Admn )

Deptt. of Education
Ministry of Human Resource
Development
5 . .it. Secretary (Admn )

Deptt. of Agriculture &

Cooperation
Ministry of Agriculture
6 Jt. Secretary (B)

Ministry of Information &

Broadcasting
7. Jt. Secretary (Admn.)
Ministry of Water Resources

13

I4

TranslatorsStudy the disparities

Cum-Interpreter between those in the
Foreign
Ministry of Defence and
Language
those in the Ministry of
External -airs
and to
streamline their grade
structure in general

Central Police
Organisations
(CPOS)

Restructuring and
rationalisation of ClOs

1 . J t . Secretary (R)

Fifth Central Pay Cornmission

2. J t . Secretary (E)
Ministry of Defence
3 J t . Secretary (AD)
Ministry of External Affairs
1 , Meniber Secretary
Fifth Central Jas (ommission
2 Spl Secretary (JSf)
Ministry of Home Affairs

Si

Kc).

<'atcgory of Posts

studied by the
Working Group

<'enst i t 11t ion

Scope of
Stiidy

3 Director General

Border Security Force

4. Director General

Central Resene Pclice Force

5 Director General

BPR&D
6 J t . Secretary (NE)

Ministry of Home Affairs

7. Jt. Secretary (P)
Ministry of Home Affairs
8 . J t . Secretary (Security)

Ministry of Home Airairs

59

1.12

STAFF
SAhCII O

N E I)

ANNEXC.

ADMINISTRATION Admii. Scctioti

WlNG

Cilsh

COORDINATION

01
01
02
Asstt.
01
stcno
01
IS)(..
'I'cl.Opr. (1 1
( 1.4
Driver
I'COll
0I

f~stablishmcntmatters including Gcncral U S .

Administration and Rcport printing
S.O.

Scction

Coordination I

WING

Coordination I1

Convening niccting of thc Commission

(both in and outsidc Dclhi). matters
rclating to thc tcmis of rcfcrcncc.
principlcs of pa!. dctcrmination &
pay i
structurc. classification of scniccs
and posts, datc of cffcct of tlic
rccomnicndations. financial iniplications
of thc rccomriicndations and summaq' of
rccot1itnctidilt1011.
Mattcrs rclattng lo All India Scn ICCS.
Ccntrnl Ci\d Scrviccs Group 'A'. Dclhi
and Andatifiln Nicobrrr Islatid~Ci\d
Scrvicc/ Policc Scr\xc Group * 3'.
Itidlati Forcigii Scr\.rcc Group 'R'arid

D.S

01.

1J.S.
S.O.
Steno
L DC
Pcori

0I
01
03
01
02
0I
01

Asstt.

PA.

IJ S

0I

Asslt

03

stcno
LIX
I'COII

01

01
01

SECI'ION/

TEAM WISE WORK

TEAM

AI.LO('ATION

Indian Information Scntcc Group 'B'

Computcr Unit

To provide total computcr systcm .

to thc Commission

Statistical Unit

Matters pcrtaining to M i n i s e of
Planning and Progrmmc
Implimcntation; Planning Conmission

PS.A
01
Prog Asstt 0 1
D & 0 'E'OI.
(On loan froni
NIC)
L DC
03
Pcon
0I

u s.

Asstt
lssucs rclating to dcamcss allowancc.
JRA
compensatory allowanccs. dctcrm t nation Stcno
of minimum and inasimum salan and
LDC
comparison of salarics and pcrquisites
Pcon
with PSUs/Privatc Scctor/Statc Govcmmcnt
ctc as wvcll as collcctton and
compilation of Statisttcal Datc

TECHNICAL WING Team "A"

Matters rclating to scrvicc conditions

and pay scales of Armcd Forces

pcrsonncl and women cmployces
in Govt.

Team "B"

D.S.
S.O.
Asstt.
P.A.
Stcno
L.D.C
Peon

D.S.
Matters pcrtaining to the Ministries of
Agriculture, Chemicals & Fertiliser,
D.D.
Civil Supplies, Consunicr Affairs and
J.A.
Public Distribution, Communication,
Asstt
P.A.
.Enviro&ent & Forcbts, Food, Food
Processing Industries, Health & Family Stcno
Welfare, M~JICS,
Non-Con\m~tionalEnergy UDC
Sources, Rural Dcvclopmcnt, Scicncc & Pcon
Technology; Departments of Atomic
Enera, Occcan Dcvclopmait and Space.
61

01

RO.
01
Consultant 0 I
02
04
02
01
0I

02
01

03
01
01
01
01

01
01
01

01
01
01
01

SKCTI ON/

TEAM WISE WORK

TEAM

AI,I,OCATION

S'TA FI;
SA NCI'10 N E I)

lssucc rclating to Scicntific, Tclcconi.

Postal and Mcdical Scrviccs including
Laboratory Tcchnicians 62 Vctcrinae
Officcrs; medical facilitics for Ccntral
Govt cmployccs
Tcani "C"

Mattcrs pcrtaining to Ministrics of

Dir
0I
RailuaJs. Civil Aviation and Tourism.
D I1
01
Coal. Industry, Patrolcum & Natural Gas. Sr.Analis1 0 1
Powcr, Stccl, Surfacc Transport. Urban Asstt 02
0I
Affairs & Employmcnt. Watcr Kcsourccs P A
and Department of Elcctronics
Steiio
0I
JRA
0I
lssucs rclating to Engiiiccritig Scr\ ICCS. LDC'
02
Workshop Staff. Marine Staff as ~ c lasl Pcon
0I
common catcgorics likc Elcctronic Data
Proccssing Staff, Gardcncrs and Nurscq
Workers an printing staff Housing
facilitics and HRA

Tcam "D"

Mattcrs pertaining to Miiiistrics of

DS
US
Commcrce, External Affairs. Finance.
Human Rcsourcc Dcvclopmcnt. Pcrsonnc1.S 0
Public Gricvanccs and Pcnsions
Asstt
PA
Issues rclating to pcnsions gL othcr
UDC
retircincnt bencfits. Ccntral Scctt
Steno
Seniccs. Group 'D' staff. educational
Pcon
facilities and allowances, providcnt
fund. Insurancc. spcciai pay. deputation
dut). allo\vancc and bonus

Team "E"

Mattcrs pcrtaining to thc Ministrics of

DS
Labour, Law, Justicc & Compan! Affairs.U S
Parliamentary Affairs. Tcstilcs.
so
Asstt
Issucs rclating to thc Cabiiict Scctt .
PA
President's Secretariat, Prime
Stcno
LDC
Ministcr's Sccrctariat, UPSC. Ccntral
Vigilance Comniissioii. Elcction
Pcon

02 :

0I
01
01

03
01
01
01
01

01
01
0I
03
01
01
0I
01

India. Indiaii Audit and I.tbrarran 0 I

Accounts Dcpartmciit including coiitrollcr
Gcncral of Accounts. Accoi~iilsStaff of
Rail\+ ays arid Dcfcncc Accoiinls
Dcparlmcrit. pa\ scalcs of'otliccrs arid
cniplo\ccs of Suprcnic Court ot'
liidia aird High Court of 1)clIii its NCII 3s
thc Union lcrritorics. Et'iicicnc\ in
Administration. Libran
('oiiiiiiiss~o~i
of

Tcam "F"

Mattcrs relating lo tlic Ministries of'

Homc .4ITam and Inlorination K:
13roadcnstI II c

J I)
s0
ASStl

I' .4
Issucs pcrtaiiiing to coninioii atcgorics J K A
Iih; Kaitna! l'rotcctioii Force. Fire
Stcno
Scr\ icc Staff. Artists. Can~crmicri.
Pcon
I'hotoynplms. ('incnia I'rolcct ionists and
O p c i ~ ~ t oeditorial
i~.
stnl'l' I ranslators.
inlcrlmtoi~and Sccurit\ Yt:ilT 1)cIhi
Policc (ollicr tliaii Group ;\' K, 13')

0I
0I
0-1
01

0I
01
0I

ANNEXE 1.13

ORGANISATIONAL CHART OF THE FIFTH CENTRAL PAY COMMISSION

-.

- .-

____

JCHAIRMANI

LEQEND : DIR

---

Dkrc(or
D.S. mputy ~rcrrewy
J.O.
D.D. -Joint
-payDhw&x
-r

64

LIST OF OFFICERS A N D STAFF WHO WORKED WITH THE COMMlSSlOFi

SI Name of Official
so (S/Sh.)

Designation

Service

Parent Oflice/Cadre

Remarks

h 4 K Kaw

Member Secretary

Indian Administrative.Sen..ice

Hiinachal Pradesh Cadre

3 Sunder Rajan

J6int Secretary

Indian .4udit & Accounts Service

Comptroller R: Auditor General

of India, New Delhi

Rakesh

Joint Secretary

Indian Administrative Service

Manipur-Tripura Cadre

Director

Indian Railway Accounts Service

Ministry of Railways

1 1) 1 1 Gautani
5

Snit hladhulika I Sukul

Director

Indian Defence Accounts Service

Ministry of Defence

Snit P Janaki

Deputy Secretary

Indian Defence Accounts Service

Ministry of Defence

M R Iania

Deputy Secretary

Indian Postal Service

Department of Posts

8 Anind Kumar

Deputy Secretary

Indian Forest Service

Sikkim Cadre

65

Repatriated n e f
31 3 95 (.AS)

SI Sariic of Official

Designation

Service

Parent Office/Cadre

Deputy Secretary

Central Secretariat Service

Ministry of Finance

Ken1 a r ks

S o (S/Sh.)

..\

ti Chandna

Ktd

\i

e I-

? ! I Oh( I\)

I)e p 11t v Secret a ry

Central Secrctariat Scrvice

Ministry of Finance

Repatriated

'>\

I; 1296(F\t

Deputy Secretary

Indian Ordnance Factories Service

Ministry of Defence

Deputy Secretary

Indian Revenue Service

Ministrv of Finance

I>epu t y S ec re t ary

Indian Economic Service

Minist?. of Finance

Joint Di rec t or

Border Security Force.

Border Security Force

I'rincipal Systems
Analvst

National Informatics Centre

Plannipg Commission

tinder Secretary

Central Secretariat Ser\ice

Ministn of Finance

Under Secretary

Central Secretariat Service

Ministq of Finance

60

ef

~~

SI S;irne o f Oniciirl
so (S/Sh.)

IJesignat ion

Service

Parerit Onicc/Cadre

i S K John

Under Secretary

Central Secretariat Service

Ministry of Finance

S 11 f3aijal

IJndcr Secretary

Central Secretariat Scwicc

hlinistry of Finance

20 Y \: Srivas:a\.a

Deputy Director

Central Engineering Service

Central Public Works Deptt

Xlin. of Urban kffairs &
Employment

21. R . N . Sood

.Deputy Director

General Central Service

Geological Survey of India

hlinistry of Mines

Principal Private
Secretary

Employee of the
Supreme Court of India

Supreme Court of India

Scnior Analyst

Gcncral Ccntral Service

NSSO(I-OD). New Delhi

10

Remarks

Ktd
w e f 30 9 96(.-lS)

24 .4mn Kumar

ReseearchOfficer

Indian Ekonomic Service

Ministry of Finance

25 S K Ctitiikara

Section Oflicer

Central Secretariat Service

Ministry of Finance

67

Designation

Service

Parent OfliceKadre

Scction Oficcr

Central Secretariat Service

Ministry of Commerce

27. \;istipal Sinph

Scction Officer

Central Sccrctariat Servicc

Ministry of Commerce

28. A.K. Pattanaik

Section Officer

Central Secretariat Service

Ministry of Finance

29. P.C Gupta

Section Officer

Central Secretariat Service

Ministry of Defence

30. S. Balasubramanian

Section Oficer

Central Secretariat Service

Ministry of Finance

31. D.S. Bhatia

Section Officer

General Secretariat Service

Intelligence Bureau, MHA

32. R.K. Dhoria

Section Officer

Central Sccrctariat Scrvice

Ministry of Finance

3 3 . Jagmohan Singh

Stction Officer

Central Secretariat Service

Ministry of Home Affairs

34. V . K Tondon

Private Secretary

Cen t ral Secretariat Stenographer

Service

Ministry of Finance

Central Secretariat Stenographer

Service

Ministry of Agriculture

SI Name of Offcial
No (WSh.)

26.

!lrlil

Ioshi

35. Kariial Kishore

68

Remarks

Kepat riat ed
w e f 18 4 95(A>V)
Repatriated
w e f 2 2 1096

SI . Y a m of Official
No (S/Sh.)

Designation

Service

36 Jagdish Mittcr

Privatc Sccrctary

AFHQ Stcnographer Service

Ministry of Defence

Private Secretary

AFHQ Stenographer Service

Ministry of Defence

38 C.S S Raghav

A.A.O.

General Central Service

39 P K Gupta

A.A.O.

General Central Service

Controller General of
F.epat riated
w e f 24 5 95
Defence Accounts
Controller Genera: of
Accounts, Ministry of Finance

40 h4 R Sadagopan

A.h.0

General Ccntral Scrvice

Controller General of
Defence Accounts

Junior Analyst

Central Kcservc Police Force

Central Reserve Police Force

37

41

E R Padmanbhan

K nhaskaran

4 2 S, Sankar Kanian

Assistant Programmer Electronic Data Processing StafT

National Informatics Centre

3 3 Gulshan Arora

Data Entry
Operator(E)

Electronic Data Processing Staff

National Informatics Centre

44 Smt Usha Malhotra

Data Entry
Operator(E)

Electronic Data Processing Staff

National Informatics Centre

69

Repatriated
wef 5 6 96(AS I

1)esignation

Service

Parent OflicelCadre

45 S~ihhashChander

Assistant

Central Secretariat Service

Ministry of Finance

46 Anil Jain

Assistant

Central Secretariat Service

Ministry of Finance

47 Snit Anita Mahendru

Assistant

Central Secretariat Service

Ministry of Finance

-18. A K Misra

Assistant

Central Secretariat Service

Ministry of Finance

49 V K Goel

Assistant

Central Secretariat Service

Department of Posts

SO R P S Neyi

A ssi st ant

Central Secretariat Service

Ministry of Agriculture

5 1 Smt Laxrni Srinivasan

Assistant

General Central Service

Cabinet Secretariat, M.H A

52 Kailash Chander

Assist ant

Central Secretariat Service

Ministry of Agriculture

5 3 U S Iaiidey

Assist ant

Central Secretariat Service

Ministry of Labour

54 Lila Ram

Assistant

A.F H.Q. Civil Service

C A 0 , Ministry of Defence

SI X;;~nicof Officinl
So (S/Sh.)

70

Remarks

SI Same of Official
S o (S/Sh.)

Designation

Service

Parent Office/Cadre

5 5 ii P Bahl

Assist ant

A FH

C.A.O.,Ministry of Ilefence

56 R I' Sharma

Assistant

Central Secretariat Service

Ministry of Finance

5 7 \; K Sikka

Assistant

Central Secretariat Service

Ministry of Finance

58 \'inas Malhotra

Assistant

Central Industrial Security Force

Central Industrial Security.

Force

N K Pandey

Assistant

A F 14 Q Civil Service

C.A:O., Ministry of Defence

60 S R Sharma

Assistant

AT: H.Q Civil Service

C.A.O.,Ministry of Defence

P S Kalra'

As'sist ant '

Central Secretariat Service

Ministry of Home Affairs

6 2 .?rrun Goswami

Assistant

Central Secretariat Service

Ministry of Home Affairs

59

01

Q Civil Service

Repatriated w e f
3 I . 12.96(AZN)

03

Smt Sushila Khanna

Assistant

Border Security Force

Border Security Force,

04

K C George

Psis! an:

Intelligence Bureau

Intelligence Bureau,

71

Remarks

SI Name of Official
No (S/Sh.)

Designation

Service

Parent OfTice/Cadre

65 Amit Das

Assist ant

Intelligence Bureau

Intelligence Bureau,

66 P G Banai

Assistant

General Central Service

Controller General of Accounts

67 R K. Suryanarayanan

Assistant

General Central Service

Central Board of Excise &

Customs

68 Devki Nandan

Assistant

Central Secretariat Service

Ministry of Labour

69 Mohd Salahuddin

Assistant

A.F.H.Q. Civil Service

C.A.O.,Ministry of Defence

70 S N Munjal

Ofice Superintendent General Centsal Service

N.S.S.O. (FOD), New Delhi.

71 Arun Kansal

Assistant

Central Secretariat Service

Ministry of Urban Affairs &

Employment

72 Krishan Kumar

Assist ant

Central Secretariat Service

M i n i s t j of Urban Afl'airs &

Employment

73 Umesh Pande

Assistant

Central' Secretariat Service

Ministry of Urban Aft'airs &

72

Re marks

SI Name of Oflicial
No (S/Sh.)

Designation

Service

Parent Ofice/Cadre

Employment
74 K.L Ahuja

Assistant

Intelligence Bureau

Intelligence Bureau,

7 5 Manjeet Singh

Personal Assistant

Central Secretariat Stenographer

Service

Ministry of Welfare

76. 1 Narayanan

Personal Assistant

Central Secretariat Stenographer

Service

Ministry of Finance

77 TamnKumar

Personal Assistant

Central Sccrctariat Stenographc r

Service

Ministry of Finance

78. P. Suresh

Personal Assistant

Central Secretariat Stenographer

Service

Ministry of Finance

79 Praveep Singh

Personal Assistant

Central Secretariat Stenographer

Service

Ministry of Finance

73

Remarks

.-cd

tE
0

.-

-0

.-c

3:
vf

hD

(d

u
K

E
m

-t

c
.
)

.-!=

-5

2
2

'
L

0
c

.-

cd

-0
cd

c7

c
.-

cd

t?

cd

u
.-+
cd

..-.vl

3;
!XI

.-C

C
C

cd

.-9
L

73
cd

c
.-+a

L-,

SI Name of Official
S o (S/Sh.)

Des ig nat io 11

Service

Parent Ofice/Cadre

88 .A K Sharfi,ci

1J L) C

A.F.H.Q.Clerical Service

C A 0 , Ministry of Defence

89 Cr Sreeniwas

UDC

A F H Q. Clerical Service

C A 0 , Ministry of Defence

90 \IS Bisht

II D c

Central Secretariat Cltrical

Service

Deptt of Industrial
Development

91 S (hakravany

UDC

AFH

92 A K Bhatnagar

IJ D C

General Central Service

N S S 0 (FOD), New Delhi

93 Smt Usha Seturanian

JRA

General Central Service

Ministry of Finance

91 Ravinder Kotq

JRA

General Central Service

Department of Posts

JRA

General Central Service

Department of Posts

96 K K Kohella

UDC

General Central Service

N S S 0 (FOD),New Delhi

97 h i 1 Kumar

UDC

General Central Service

N S S 0 (FOD),New Delhi

95

Smt Soni Lata Koul

0 Clerical Service

75

C A 0 , Ministry of Defence

Remarks

Designation

Service

Parent OiEce/Cadre

U D.C.

General Central Service

N.S.S.O.(FOD),New Delhi

Steno Grade D

Central Secretariat Stenographer

Service

Ministry of Finance

100 Chander Mohan

Steno Grade D

Central Secretariat Stenographer

Service

Ministry of Finance

10 1 Rajeev Sethi

Steno Grade D

Central Secretariat Stenographer

Service

Ministry of Finance

102 Sandeep Nautiyal

Steno Grade D

Central Secretariat Stenographer

Service

Ministry of Finance

103 W a s Avasthi

Steno Grade D

Central Secretariat Stenographer

Service

Ministry of Finance

1 04. Dcvinder Kapoor

Steno Grade D

Railway Recruitment Board

Ministry of Railway

105 T.A. Sunni

Steno Grade D

General Central Service

Ministry of Information Rr
Broadcasting

SI Name of Official
S o (S/Sh.)

98 Smt Vijay Laxmi

99 Dhiraj

Kumar

: 76 :

Remarks

SI Name of Official
No (S/Sh.)

Designation

Service

Parent OtTce/Cadre

106 Ranjeev Nar

Steno Grade D

Central Secretariat Stenographer

Service

Ministry of Finance

107 Kanhiya La1

Steno Grade D

Central Secretariat Stenographer

Service -

Ministry of Finance

108 P L Sanyal

Steno Grade D

Central Secretariat Stenographer

Service

Ministry of Agriculture

'

109 Miss V. Sharda

Steno Grade D
(ad hoc)

Casual appointment

110 Miss Rajini Chawla

Steno Grade D
(ad hoc)

Casual appointment

1 I 1 Miss Ekta Katyal

Steno Grade D
(ad hoc)

Casual appointment

112 Smt Rachel Jose

Steno Grade D
(ad hoc)

Casual appointment

77

Remarks

SI Name of Official

Designation

Semite

Parent Ofice/Cadre

1 13 hliss Urmila Kumari

Steno Grade D
(ad hoe)

Casual appointment

113 P S Bedi

LDC

Central Secretariat Clerical

Service'

Ministry of' Finance

1 15 Shardha Nand

LDC

Central Secretariat Clerical

Service

Ministry of Law and Justice,

Deptt. of 1,egal Affairs

116 S S Phuloria

LDC

Central Secretariat Clerical

Service

Ministry of Urban At'fairs and

Employment

117 S C Rawat

LDC

Central Secretariat Clerical

Service

Ministry of Finance

118 D Vasuki Krishna

LDC

Central Secretariat Clerical

Service

Ministry of Agriculture

I I9 P V S S Kaladhar

LDC

Central Secretariat Clerical

Service

Ministry of Agriculture

S o (S/Sh.)

Remarks

a,

0
x
rd

Q)

0)

u
C
(d

.-c
0

r,

5
2i
3

r,
0

CA

s
V

.I

m
w
d

v,

>.
E(d

a,
Y

O d

00:
3 %
tE5

>,
(d
'T

.-(d
C
P)

r
0

m
s)
z

i-

(d

'P.-

~~

.~

SI S a m e of Oflicial
S o (S/Sh.)

Designation

Service

Parent Of?ice/Cadre

128 Ram Bharosa

Staff Car Driver

Ministry of Finance

Ministry of Finance

Staff Car Driver

Mail Motor Service

Department of Posts

130 S S. Rawat

Daftry

Group D

Comptroller & Auditor General

of India

13 1 Sultan Singh

Jamadar

Group D

Ministry of Finance

152 K Kanan

Jamadar

Co-terminus appointment with

Chairman

1 3 3 . Satya Narain

Peon

Group D

N.S.S.O.(FOD), New Delhi

134 Dinesh Kumar

Peon

Group D

N S.S.O.(FOD),New Delhi

Peon

Group D

Ministry of Finance

Peon

Group D

Ministry of Finance

'

129 )'ash Pal

Remarks

135 . h a m a t h

1 36. . h i n d Dayal

80

SI Name of Official
50 (S/Sh.)

Designation

Service

Parent Office/Cadre

113 C K Murmu

Peon

Group D

Ministry of Plannins, Deptt

of Statistics

144 Hari Krishan Shah

Peon

G-roup D

Comptroller & Auditor General

of India

145 Desh Raj

Farash

Casual appointrnent

I37 M Manoharan

Peon

Group D

Supreme Court of India

138 Gusain Sinsh

Peon

Group D

Supreme Court of India

139 Shishir Kumar Andia

Peon

Group D

Supreme Court of India

1.10 Om Prakash

Peon

Group D

Ministry of Finance

14 I Sajjan Kumar

Peon

Group D

N S S 0 (FOD), New Delhi

142 Vikram Singh

Peon

Group D

N S S.O.(FOD), New Delhi

81 :

--

Remarks

LIST OF CONSULTANTS WHO WORKED WITH THE COMMISSION

B K Aggarwal

(2 1 9s to 31 1 97)

.+IK Chandna

( 1 2 9 6 t o 3 1 796)

-3

A L Shastry

( 1 3 9 96 to 31 12 96)

S Balasubramanian

( 1 1096to31 197)

TERMS OF REFERENCE

2. I
Thcre is a conscious dcparturc from the past as far as the Tcrms of
Reference of this Commission arc conccr~icd.Wc have becn asked :

"to examine thc work methods and work environment as also the variety
of allowances and bcncfits in kind that are presently available to the
aforementioned categories in addition to pay and to suggcst rationalisation
and simplification thereof with a view to promoting eficicncy in
administration, reducing redundant papcnvork and optimising the size of
the Gowxnment machine?."
Admrnistrativc

Rejbrms
Commission

2.2
This enlarges considerably the scope of this Commission. Although
it would possibly be an exaggeration to call it an Administrative Reforms
Commission, as was stated by a national newspaper, it brings under our purview
certain significant issues of public service management which we may not
othenvise have dealt with at length. We welcome this opportunity to express our
views on the general policy which the Government ought to pursue in the area of
civil service reform.

1
Supporlivr
role

~~~~

APPROACH OF STAFF SIDE

2.3
Thc staflsidc of the National JCM havc not bcen aversc to this parl
ofour charter. They havc repeatedly asserted their comniitincnt to a ncw stylc'of
zovcmancc in his counu). and pledged their support to an); rcfomiist ideas that we
may cspoux Tlicy had only two ca\'cilts . thc consideration of such issues should
be taken up af'tcr thc main report on pil\.scalcs and allowances was submitted and

thcy bc consulted on the contcnts of the refom pachage Thc Coiiiinissioi1.

Iioivcvcr, fclt that \vc should present a singlc final rcport containing all our
rccommcndatioiis, aptxially as therc is an incstricablc linkage bctwccn thc qualit!
and quantity of manpouer. thc rcsultant quality. utilit! and cost cffccti\ciicss of
public adrmnistration and the corrcsponding compensation package The pay scalc
& allowanccs cannot simply be dctermincd without refcrcncc to thc organisation
and s i x of thc Government machinery

ConsuItuncy
reporb

24
It must be admitted at the outset that the time at our disposal \\as
not enough to delve deeply into the controversial arms of public senice
management However, we tried to enlarge our horiLons by resorting to
c~nsdtancicson such diverse subjects as the emcrging scenario af govcrnanco in
the 2 1st ccntq, restructuring of organizations, optimisation of manpowcr etc

Visit to

25
We also tried to analyze the mcasures taken by somc
Commonwealth countries which have atuactcd vide attention Tlic Coinniission
paid a brief visit to Malaysia. New Zealand, Canada and the U K which havc
undertaken widc ranging & succcssful refoms In public administration We had
fruitful intcraction with the pcoplc who were involved with thc ncu s\stcms

Commonwecaltlr
countries

EXPERtENCE OF CIVIL SERVICE REFORMS IN OTHER

COUNTRIES
6.
K.

2.6
In the U n i t 4 Kingdom, the effort started in 1979 whcn it was
realized that the countn wa$ excessively bureaucratizcd and regulated. At first,
Efficiency Units werc created in the Prime Ministers Ofice. Scrutiny Exercises
revealed several flaws in the civil service, which w r e saught to be remedied
throygh the Financial Management Initiative. Government departments werc
allowed to manage their own budgets and managers made personally accountable
for results. Then came the Next Steps Study, which resuited in the creation of
Executive Agencies. In 1991, the Government launched the Citizens Charter, a ten -:
year programme designed to raise the standards of public service. Privatisation has
been a key strategy in order to promote fair competition between thc public and
private sector and give the best value for money to thc tasjaycr and the user of
public seniccs.
2.7
New Zealand also kicked off its reforms process by corporatisation
and privatisation. Many government enterprises were sold off into private
ownership. More than that, the principles of private sector organisation, cfficicncy
and market coppetition were applied in the public sector A new system of
financial manigement was put in place to give individual departments gricalcr
autonomy in rhc management of thcir resources. Ministers now cntcr into contracts
with dcpartmcntal chicf oiecutivcs, specifying thc dcsircd output and the pricc that
will bc paid. Chicf Executives arc on fivc-year contracts. The!. in turn havc full
powrs to hirc and firc thcir staff and to fix thcir salarics which arc wholly rclatcd
to pcrformancc.

<

~rIl,ll/,l

ZR

111 Canada. tlic rcnc~al

oltlic I'cdcral piiblic scr\ ICC\\;la i i i i t i ~ t ~i idi
Thc kc! thciiic of tlic rcfonii proccss is 10 pro\ idc liigli qualit! scr\ ICC and
iiicrcascd clicnt satisfaction Tlic public scrvicc has to bccoiiic niorc cngagcd. niorc
opcn. morc Iisiblc and morc consultativc It must i i n cst niorc hcavily i n thc
dclclopmcnt of pcoplc and simultancousl\ rcducc thc burdcn of internal controls
An intcr-dcpartmcntal quality nctwork has bccn cstablishcd and scrvicc standards
picscribcd Greatcr powcrs havc bccn dclcgatcd to dcpartmcnts through thc
cstablishicnt of opcrating budgcts and incrcascd fiscal jmr-end flcsibility Ncu
inforniatioii technology has also bccn uscd to providc improvcd scrvicc at rcduccd
cost

1080

,\ h

/ ~ ~ S " '

2.9
Malaysia has also travcllcd in thc samc dircction through thc
do\vnsizing of thc public sector through privatisation, thc introduction of thc
Malaysian Incorporated conccpt and thc inculcation of positivc values and work
cthcs. The public service has adopted thc concept of Total Quality Management
lchich has paved the way for thc crcation of customcr-focused organisations
capablc of delivering quality outputs and scniccs to customers in a tinic bound
fashion. Towards this cnd, Govcrnmcnt has adoptcd thc clicnts' chartcr which
ciii~isagcda \+Titten commitmcnt by its agcncies to mcct prcscribcd standirds
SJwmic changes wcrc introduced in the budgcting and accounting arcas lo pcrmit
iiianagcrs to achicvc optimal utilisation of rcsources Thc Ncw Rcniuncration
S\.stcm cerated a work culturc that cmphasizcd pcrformancc, qualit!. and
productivity

2.10
There are several lessons that we can draw from thc expcricnce of
other countries in this general area :
Civil service reforms have been identified as a
critical concern in the quest for rapid economic
progress, both in developed and dcveloping countrics
the reform process has sought to define and
concentrate on the core duties of Government and to
ensure that non-corc functions bc offloaded on to thc
non-governmcntal sector
this has involved right-sizing of the Government and
reduction in its flab
many functions have consequently been privatised
fully or partially. corporatised o r ,given out on
contract

Lhcrc has bccn rc-engincering of the Govcrnmental set

u p lo mahc i t i'unctional. cilicicnt. prodiictn~c. costcffccti\ c and sen icc-oricntcd

standards of perfornirrnce have been published b!.

indr\ idiid organications and bccn adhcrcd to stricill
greater transparency has bccn impartcd to thc
functioning o f Govcrnnicnt dcpartments
gotcmmcnt employees a r e being held accountable for
thcir actioiis. and ;ii~otis mcthods of rcrvnrd and
punrshmcnt rclatcd to thcir pcrformniicc arc bcing
dc\ 1scd
thcrL is greater erriphasis on productivity, qualit!,.
courtcsy and custonicr satisfaction

THE! INDIAN EXPERIENCE

tI irtorira I
rwic)s

2.1 1
It is not that India has not taken initiati\,cs i n thc field of
administratiic rcforms. We ha\^ had thc Sccrctariat Reorganisation Committcc
hcadcd by Girija Shankar Bqpai ( 1 947). thc Rcport on Rcorganisation of thc
Machinen. of Go\zmmcnt b!. N Gopalastvanit .A!?.;ingnr ( 1940). the' Gon\ ala
Committcc Rcport (I95 1). !hc Applcb!. Rcports (1953 and 1956)> the
Administrative Rcfomis Commission Rcport ( 1900). and thc scrics of rcports
submitted b\, the Economic Administrati\z Refurnis Commission ( I98 I -84)
headed b!. Shn L.K.Jha. Conscqucntl!,. a11 01gnnisation and Mcthods Di\ision \\.as
set up in the Cabinet Sccrctarlat i n 1954,and this has flowercd into tlic prcscnt
Department of Administrativc Reforms. New s! stcins of sccrctariat working ivcrc
introduced, performance budgeting was adoptcd b!, all dc\dopmcntal niinistrics.
there was vide delegation of admlnistrativc and financial powers, scvcral initiatii.cs
were taken to professimaliie the public sector operations and attempts \vex madc
to create svstem of on-line monitorins of perforniancc in governmcnt.

Recent

2 12
Certam initiati~cs of the last tncnt? \cars ha\ c further accclcratcd
our march on the path of progrLss Wc ha\ c gone through a telccoiiiniunication
rcvolution, our shies ha\c bccr, frccd both for acroplanc flights and tclc\ ision
channels, information technology have spread far K: wide in thc Go\crnmcnt,
taxation systems ha\ e bccn rcfornicd, procedurcs ' for industrial licensing
transformed. NRIs and forcigli in\ cstors facilitatcd. shares of public scctor
enterprises disinvestcd and ratc of grou th of c\ports niultiplicd manifold The
NCM Economic Polic! of the In-1 fi\ c \cars has \ icldcd postti\ c rcsults and. thc
ccononi! appcars to ha\ c bccomc buo\ ant

Imlloftves

ltiillufitig <I

de hnlc

'

2 13

It must bc conccdcd, ho\vc\cr. that Structural and organisational

reforms in the machinery of Government itself h:tve not kept pace with the

OURAPPROACH

2 I4

Our approach to thc prcscntation of' our vicwpoint

IS

as lollous

First. ivc shall look gcncrally at the futurc. that is thc

inimcdiatc futurc of thc ncxt 10- I5 !cars. \vhich is thc
timc horimn for any Pay Commission This will hclp us
to undcrstand what kind of India is in thc making and
what kind of go\~crnmcntalsct up it ought to haix

Ncst. n c shall cnunciatc an cfficienc!. prograrnnic of

hou. to rcdcfinc thc goals of Go\crnnicnl. pass on ccnain
non-corc - asti\.itics to pnvatc contractors. dc\.elop
partncrship bctivccn Govcrnmcnt. indust?.. acadcmia
and NGOs. rcstructurc govcmmcnt, change thc work
nicthods and cnvironmcnt. bring about aulonom!..
transparcnc!,. productivity and cquit?. in thc system.
rcducc papcn+,ork and introducc automation and
infgrmation tzchnolog!,.

Thirdly. \+c shall putlinc ccrtain n o \ d idcas on

marlpower dei clopment so that we attract thc best talcnt
into Govcmmcnt and retain it, cxamine new modes of
rccruitment. including contract cmplo\mcnt, look at
some innovative suggestions relating to training.
performance appraisal. carecr progression. transfcr
poltcics and accountability

Then lastly. vc shall examinc thc emplo! mcnt under the

Ccntral Go\cmmcnt and whcthcr thc s i x of its uork
force can bc controllcd. look at various options of
optimising thc S I K of thc Govcrnmcnt machine?.
cspcciall! in tlic orgmsed scn ICCS. amicd forces. central
rail\\ ays,
posts
and
p o l i ~ c organisations.
tclccommunications. and inahc spccific proposals for
rightsi/ing of Go\ crnmcnt

,I

/ h / W i ? l / I</

11i/i0l~

2 16

At thc cnd of t h i s Part of the Repod, wc ivould c\pcct to havc

outlincd a blucpnnt for actioii lthich. if iniplcmcntcd bv Govcmnicnc. vould result

'

X I :

3
I LOOKING A T THE FUTURE I
I. I t l l t n I l l I*<\,

31
Any attcnipt to look at tlic futurc is a liazardous cscrcisc.
Futurolog?. in\.olvcs an ixuapolation of thc past into thc futurc \\.ith in1elligcnt
gucsscs about the Iikcl! ouicomc in an unccrtain world. Thcrc arc too man!.
impondcrablcs and cixn onc cataclysmic cvcnt like a world war or disintcgration
of a largc count!.
can make all thc guesswork rcdundant. Thcrc are n numbcr 01'
altcrnati\.c futurcs auaiting us.

.\ \ICr N''p0I.I

32
Fortunatel!. the hmc horwon of a pa! cominission is just a dccadc.
not too long a period to indulgc in a bit of iiispircd clam o! ancc Wc. thcretorc
commissioned the Stratcsic Management Group to forecast thc Iihch sccnnrio i n
thc political. economic. social and other sphcrcs upto thc \car 20 I0 lhc! ncrc t o
idcntif! the possiblc changes in thc charactcr of golcrrmcc and to suggcst
structural changes and the hind of bureaucracy requircd tc; mcct cffcctn cl! thc
emcrgmg challenges of thc 2 I st centuq In what fdlov s we nttcmpt to con] c! thc
gist of their report. as modified by our own pcrspcctn es

SECURITY A N D INTERNATIONAL ENVIRONMENT

"~rcll\~e3

33
The primaq objective in this arca IS to rctaii and strcngthen thc
sovereignty. unih. intcgnt? and sccurity of the nation. contain fissiparous
tcndcncics. turmoil and unrest at home and 01crt threats from across thc bordcrs.
emergc as a kc! pla\cr at lcast on the Asian sccnc and optiniisc our rcsourcc
util1sation

Our rrirni r l

34
Toda!. thc itorld IS no longcr bi-polar In tlic post cold n a r period.
v ith Amcrica cnicrging as thc strongcst militan powct. India c m w l iciist
intcrnat~onal prcssurcs b! pla! ing onc supcr po\\cr agaiiibt thc ollicr \+/it11
Pahistan dcchiing i t s nuclcar capabilitj, i t is impciaIi\c that 11: c,ncliiII! I C c\aiiiiiic thc nuclear option to rcmoic thc ambiguit! i n our polic! Wc should
continuc to rcsist prcssurcs n i t t i rcgard to our missile and spacc piograiiiiiics

WL

rtrili'

/)l~/lclc$

India'\ l j o ~ > t i l i l t i ( j i 1Ioda\ I S the sc~oiid1iiShcsI 111 rhc \\<)[Id.\\hilt

d m a is onh 2 4"+1 1 hc Plniining Coinmission ha\ c prolcctcd a populatrori of'
1081 2 million b\ 2000 A I) arid 1 104 25 million b\ 2 0 I I 4 D During thc pcriod
1 OX 1 I99 I . birth ratc per thousand dccliilcd Irom 3 ; X to 2 0 a i d th: dcarh ri~tc
lroiii '2 1 to 0 7 -1 tic annual gronth ratc is 1 X ' h \\liich is Iihcl! to fall funhcr IO
I ?'I' 0 E\cn 50. thc nci roproduction ratc of 1 or Icss \ \ i l l bc achic\cd b? thc !car
2000 onl! i n Tamil Nadu. Kcrala, Karnataha. Punjab and West Rcngal This has
b g n rcndcrcd"pbssib1c by increasing the ratc of fcmalc Iitcrac? and rcduction i n
infant mortality ratc Dcspitc Govcmmcnt's bcst cfforts. total litcracv would
prohabl! not bc achic\ cd bcforc 2027 A D
i0

Siniultancousl!, thc ratc of urbanisation is also picking up fast l'hc

3 10
pcrccntagc of urban population is cspcctcd to go up from 27 82 in 1996 to 30 57
b! thc cnd of thc !'car 201 I Thc gro\t.th of citics is haphalard and rcsults in
scicral ncgativc fcaturcs likc risc in land pnccs. incrcasc in slum arcas. dzgradatiot?
i n thc quality of Iifc. cspcciall! of thc urban poor
Thc cniplo!mcnt sccnario is cquallj dismal Thcrc is a currcnt
3 11
bachlog of cstimatcd 18 7 million uncniploj cd and anothcr 125 million pcoplc arc
Iihcl! to cntcr thc labour niarhct bctwccn 1'990-2010 Honci cr. thc ratc of incrcase
in cmplo! mcnt opportunities during thc pcriod I97 1 - 199 1 has bccn a very IOU
2 2';;) pcr annum
3 I:!
Thcrc arc Laning cstimatcs of pcoplc 111ing bclou thc po\crty linc
and thcsc rangc from 30'% to 40'%1of h c total population Thc anti-povcrt?
prograninics hn\c not bccn ablc to achic\,c thcir targcts niainl! duc to proliferation
of schemes and thc abscncc of a propcr dclii c? mechanism
I?
Food sccurit! of thc population is a major arc0 of concern It has
bcen cstimatcd that 2.50million pcoplc consumc lcss than thrcc-fourth of the
nccdcd calories, uhilc anothcr fifty fivc million tahc lcss than half their daily
calonc rcquircmcnts The major problcm hcrc is thc incffccti\,e public distribution
s! stcm vhich is not rcaching LHL rural poor
9

3 13
Although the status of sonic \\omen in our society has seen a
rcmarkablc upgradation. thc position on an o\crall basis is quite unhappy The scx
ratio has declined from 972 in 1901 to 927 in 1991 The position of femnlc
literacy and nutritional and hcalth status of vonicii Icaics much to be desired
Efforts at thcir political cmponcrmcnt h a w not fructificd full!

3 I3
A similar problcni cxists i n rcspcct of socially and economicall?
backward groups lihc schcdulcd castcs, schcdulcd tribes and other backward
clasws Sustained efforts haw rcsultcd in an cnhanccmcnt of the Iitcracv rate to
37 4 I % for the scheduled castcs and 29 60'%1for thc schcdulcd tribes Rescmation
of scats i n thc Pariiamcnt. Icgislati\ c asscmblics. pancha! ati raj institutions.
cducational cstablishmcnts and for cniploj mcnt i n thc go\*crnmcntand thc public
scctor haw iniprovcd thcir status Sociall!. this has had t ~ hinds
o
of fall-out I n
ccrtnin Statcs. thcrc is a climatc of tcnsion bct\\ccii thc mciiibcrs of fontard and
bachnnrd conimuiiitics to tlic cvtcnt of bccoming a la\\ and order problem It is
also \\idcly fclt that thc facilities extended to thcsc disad\ antagcd sections of
socict> ha\c bccn corncrcd b) a feu influctitinl familics

,i g w i k r

/or

3 I0

In this contcxt. thc tollo\\ing agciid,, I'or action ma! havc to cmcrgc

~lc~lllll

Programmes aimed at halting the demographic explosion.

rcmoving illitcraq. reducing infant mortalit! and po\ crt! from this
high a n thc agcnda for the
country w i l l havc to bc c&mcl!
Central Govcrnmcnt

.The quality of management of the social services sector,

especially in basic health and primary cducation in Govcmmcnt has
to be drastically improved.

There will havc to bc special schemes for an orderly transition

t o a highly urbanised society, with particular rcfcrcncc to thc
problems of thc urban poor.

The eslstmg Public Distribution System \vill havc bc ovcrhaulcd

so that it becomes an cffcctivc conduit for suppl!mg rations at
reasonablc prices to thc rural poor

The entire paraphernalia that sustains the phcnomcnon of male

dominance in society will nccd to bc disbandcd

An attempt w i l l h a w to be madc to move gradually from a

reservation-centred approach to an enhanced opportunity
approach, for the upliftmcnt of mcmbcrs of disad] antagcd castes.
tnbes and communities

THE ECONOMIC SITUATION

Rare qf
growh

During the eighties, thc Indian cconomy moved au.a>' from the
Hindu rate of gro~vthof the preceding two decades and achieved an averagc growth
rate of 5.23% per annum. Hotvevcr, the csplosive growth in government spending
resulting in negative savings of the Government administration and failure of the
public sector to generate investible resources led to a macro-economic crisis
towards the'end of the decade.

I:'collomic

3.18
A new economic policy was announccd in Jul!.. 1991 which
cnvisaged a roll-back of the State and placing a grcatcr rcliancc on market-fricndly
polrcics. In the ficld of industrial policy, liccnsing \vas abolishcd for most of the
industries, the number of items rcscncd for the public scctor uas rcduccd to six
and thc MRTP Act was amended. The National Mincral Policy ( I 993) dcrcser\,cd
t h m n minerals for exploitation by the private sector, \vhilc the National Tclccom
I;'olicy (1994) allowed privatc participation in basic telccom s c n k c s . Thc Air
Corporation Act, 1994 cnablcd privatc air taxi compaiiics to opcratc rcgular
dorncstic scrvices. The National Highways Act was amcndcd to cnablc levy of toll
on uscrs of national highivays.

pol1cre.c

3.17

3 19
Thcrc \ w c sporadic attcmpts at disinvcstmcnt i i i public sector
cntcrpriscs, but these got cmbroilcd i n controvcrsics. culminating finally i n thc
sctting up of thc Disinvestmcnt Commission ( 1996) I t is incrcasingl!, felt that in

92

3 20
On an ovcrall basis. i t has bccn cstimatcd that i f thcrc is a 5%
growth m GDP, per capita tiiconic can bc raiscd 2 4 tinics by thc >,car20 10 and thc
pbrccntasc of pcoplc bclow thc po\crt! linc can bc brought bclow 20% If therc
is an invcstmcnt ralc of 30'%,and a gro\\lh ratc of 7-X% ovcr thc ncxt IO-15 \'cdrs.
pcr capita incomc can bc trcblcd and thc demographic threat Lcpt undcr check

Eniplo!mcnt ~cncrationhas bccn considcrably lovcr than thc target

3 21
of 2 6% to 2 8% This ncccssitatcs a major policy initiatiw
3.22
It has bccn acccptcd that thc main rcasoii for thc niacro-cconomic
crisis was the growth of public spending through the cightics as a rcsult of which
\
fiscal deficit as a proportion of GDP rosc from 6.4%)to 9%. The yarning gap
between rcvenue rcccipts and rcvcnue cspcndturc was rnct by deficit financing and
thc raising of intcmal and cxtcmal dcbt. Attcnlpts to curtail thc dcficit havc mainly
been made through rcductioii in capital cspcnditurc. with conscqucnt advcrsc
impact on the economy. What is rcallv nccdcd is a cut in rcvcnuc expenditure, for
which a reduction in thc rolc and scopc of govcmmcnt is cssential;

3.23
The reduction in' Goicrnrncnt will ha\c to bc achic\.ed through
dismantling of the cxccssive controls. disinvcstnicnt in the public sector,
corporatisation of departmental undertakings, privatisation and contracting out of
many services that arc presently bcing performed dircctl!, by Governrncnt.
Government's role will bc morc in evolving thc policy of govcmancc and less in the
actual governance itself. Most Goiwnmcnt dcpartrncnts will havc to function as
facilitators rather than inhibitors of growth. New regulations will havc to bc
c\,olved and enforced so as to provide a Icvcl playing ficld as between the pub1:c
and private secior enterprises, as also bctivccn domcstic and foreign companies.
The admrnistered price mechanisms will ha\c to be rcplaced'by mechanisms based
on market-determined prices.
3 24
A major thrust of Gowmmcnt initiatives w i l l have to be in the field
of poverty alleviation Although thcrc arc a number of anti-povcrty schemes in
existence, a much bctter dclilwy s!stcrn nccds to bc dcviscd The multiplicity of
the existing programmes \ \ i l l ha\c to bc curbed Thcrc is nccd for higher
mvestmmts m the fields of pninaq. cducation. basic health care. rural roads. water
supply, sanitation, slum mipro\ cment ctc

Thus the cconomic sccnario of thc next dccadc \id1 most probably
3 25
rcquirc the following initiati\rs
An iii\*cstnientrntc of 30% and a rate of growth of GDP by 6 to,
8OA

An increase in erriployment generation by 3% cvcN year

Dismantling of the permit-licence system

Hesrduol role
of.Yfa&

Disinvestment in ttie pirblic sector

C'oi-poratisation of departmental undertakings

Privatization and contixcting out of services

3 26
Thc residual role of the State will hale to be confincd to ~lic
following areas-

As

For dc\xAopiiicnt infrastructure

As an investor in social senices

In p o ~ c r t yalleviation programmes

facilitator of economic activit!,

THE OVERALL SCENARIO

.treedf i r .fasfrr
growtlr

3.27
Thus when \ve.visualize the national scene as it is likely to emcrgc
by the year 20 10, there are some discernible trends. The fundamental task I S to
keep the nation intact against all its enemies, internal and external. We ha\c to
fuse the different classes, castes and communities into a unified band of sccular
citizens. And India has to achieve a faster rate of economic growth with the
private and public sector working in tandem.

How the Central Government would ha! e LO change in response to

3 28
the new challenges is our next theme

I
hitroductioti

INTRODUCTION

41

Having visualized the possible sccnarios for the next decade, we

may now look at the manner in which the rolc of the Central Government is likely
to be altered as a result of the potential changes in the environment. Before we do
that, a brief appraisal of the subtle shift in the rolc of Govcmmcnt itself would be
in order.
A MODIFIED ROLE FOR GOVERNMENT
4.2

Hole o/Slare

Philosophers,economistsand political scientists have often differed

violently on what the role of the State should be. Adam Smith was a votary of
laissez faire and Western capitalism was founded largely on the premise that the
best Government is the one which governs least. The world war period saw the
emergence of the Welfare State which come to be firmly established in all the
western capitalist societies after the Second world war. In the alternative system
ofeconomic organisation, Karl Marx d l c d for the withering away of the State, but
critics of Marxism allege that,the revolution spearheaded by the proletariat led, in
actual fact, to State Capitalism and totalitarian rcgmcs.

Recent Change.$

4.3
Recent decades havc sccn a shift towards a rcduccd role for thc
Government in all countries. Thatcherism in U.K. and Reaganomics in USA. tricd
to pull out the State from the morass of over-involvemcnt. The decline of
Communism in Eastern Europc has furthered thc trcnd towards economic
libcralisation and disinvestment in public stxior cntcrpriscs. Thus it is no longer
always popular to be a lcftist or to advocatc nationalisation as tlic panacca for all
ills.

7hz itiifiati

4.4
India could not hnvc rcmaincd unaffcctcd by thcsc ,global trends
But it was really the dcep economic crisis of I90 I which pushcd us on to a ncw

onlcxt

95

path of development Today it is the received wisdom that Govcrnmcnt should

confinc itsclf primarily to the core function's that cannot be performed b! thc
iiiarhct El cvthing else must bc left to private initiative
Contemporancously,hcrc 1s no onc who advocates an all-pcn asis c
role for the Government The attcmpt is to identify the core functions There is
a fair amount of sonsensus that the following areas fall within the legitimate
province of Government as such :
45

(9
(ii)
(iii)
tiv)
(v)
(vi)
(vii)

National sesurity
International relations
Law and order
Management of economy at macro level
Setting up of infrastructure
Social services
Programmes for disadvantaged sections

4.6
At thc sanie time, it is recognised that there arc functions currcntlv
performed by Government which ought to be given up. Direct participation in
manufacturing, mining qnd cconomic services and direct control of cconomic
activity in the private sector are two such major areas. Many countries have
&vested themselves of public sector enterprises which could be better run in the
private sector in the areas of coal, steel, fertilizers, air, rail and road transport,
tourism. hoteliering, banking, insurance, and so on. Some countries have turned
to the private sector wen in the tradtionally super-sensitive areas of atomic energ?.
space and defence production. Where some activities have been retaincd in
Government. they have becn hived off into separate autonomous agcncies with
independence of functioning.
Slate It1 relalion

toprivoie sector

4.7
The nature of Goverhment regulation of cconomic activit). has
undergone a major change. Governments no longer insist on issue of licences and
permits for setting up of new industrlal units or expansion of esisting ones. It is
considered Lviser to set up autonomous regulatory agencies Lvith quasi-judicial
powers, in order to ensure that the functioning of private units is regulated in thc
social interest.

I
~~

A NEW CHARTER FOR THE CENTRAL GOVERNMENT

'The yuesrion of
jurisdiction

4.8
In the Indian context, we have to also examine whether within the
overall parameters of what the State should directly do, a particular itcm should bc
within the jurisdiction of the Central or State Governments or the third tier of
Govemmcnt that is now bang established at the level of the urban local body or thc
village panchayat.

Federalism

49
When the Indian Constitution was initially framed, it was intcnded
to be a federal polity with a unitary bias During the period 1950-90, thc unitan
bias got a tremendous boost, owng to Lhc fear that thc country would othcntisc bc
broken mto fragments due to strong centrifugal forces After 1967. u hen thc first
Sanyukta Vidhayak Dal ministries were formed in the States. right through thc
pcnod 1977- 1980 when the Janata Dal was in office, the opposite trend of Statcs
asking for greater powers was also set in motion Today, ~vhcnthe Ccntraj
: 96

Govcrnmcnt is itsclf a multi-pafly coalition of wvhicli sonic partics rcprcscnt

rcgional force. thc fedcral tciidcncics have again conic iiito tlicir owvii.
Thcrc arc two major dccisions nccdcd hcrz First, there has to be
4 10
a transfkr d functions, powers and resources t o the States. This can be donc
a m d i n g to thc overall plan laid down by thc SarLiuia Commission on CcntrcState relations Thcrc are dccisions takcn or suggestions made ih moetings of the
N?tional Development Council, Chief Ministers' Confcrmcc or the conclaves of
leaders of Opposition parties
4.11
paramcters :

Specifically, thc action would bc guided by thc following broad

The Central Government would confine its activities only to

the core functions mentioned in the Union List. Even here, an
attempt could be made to prunc the list.

Some items could be shifted from the Concurrent List to the

State list. Education is onc such major subject.

Matters which are itemized in the State List could be generally

left to the States, with the Centre only dealing with certain
minimal aspccts of international relations. o&eralllegislation and
coordination

The list of Centrally Sponsored Schemes could be brought

down sharply to almost ten National Programmes, with the rest
being transferred to the States.

The entire scheme of sharing of revenues as between the Union

and the States could be worked out afresh, so as to allow the
State Governments to h a w elastic sources of revenue or a larger
statutory share in Ccntral revenue receipts.

Sel/-gowming
Institutinns .

4.12
Secondly, self-governing institutions . where the people
themselves take over the functions of the State would have to be encouraged,
sustained and nurtured. These would include municipal bodies, panchayats.
cooperatives, voluntary' organisations and the like. Political and economic
authority would necessarily have to be delegated to them. . Politicians .and
bureaucfats,who have trrsdltionally looked at these organisations with contempt or
disgust, would have to willingly share power with them.

The Cen:re's
Preserve

4.13
Whatever is then lcA with thc Ccntrat Govcrnment as its legitimate
preserve would need to be further rationalized in the following manner :

Only matters requiring policy initiatives and overall monitoring and

coordination should be rctaincd in thc Ccntral Ministrics and
Dcpartmcnts.

97

Funclions that involvc rcgulalion and control of private initiatives

would havc to bc Iiivcd olT to scnii-autonomous iiidcpcndciit
agencics.
Dcpartmcntal undertahings should cithcr bc closcd douii.
privatized or bc convcrtcd into public scctor cntcrpriscs
Services that can be pcrformcd by the private scctor should bc
contractcd out, as far as possible; to that sector

IMPLICATIONS FOR ORGANISATIONAL STRUCTURE

Changes it#

4.14

slrncmm

govcmmeni needs to bc smcured.The decisions that may rcquirc to be takcn will

All this has widc-ranging implications for thc way the Ccntral

be of the following broad types :

(Ij

Some Ministries and Departments may have to be abolished

altogethexor amalgamated with other Ministries and Departments

An .4ltered Role

(ii)

The Size of a Ministry or Department may have to be reduced

drastically in order to fit it for the rcviscd rolc that it has to
perform.

(iii)

The kinds of programmes and schemes that will be

implemented may have to be quite different.

4.1j

In gcneral,the Central Govcrmnent will havc to alter its perceivcci

role. delegate much more to other levcls of Govcmmcnt, transfcr many of its
functions to the non-fiovemmental sector and fashion a public senice that would
be geared to the new tasks. It is sometimes thought that an altcrcd rolc for thc
bureaucracy would Mute its importancc. This is too simplistic an approach. I;
is our considtred view that the public services have a critical role in the task of
building up a resurgent nation. Let us now try to see what this role is likcly to bc

98

5
THE PRESENT STRUCI'URE
Structure of
public services

When \vc assess the present structure of public services m'In&a,

see a certain welldefined pattern. At the Central level, the All-India Smiccs, the
Central Services and the Commissioned-Officers in the armed forces providc the
leadership. The Group B Services are a second &g of leadaship and supemision.
The Group C Services pmide valuable support and the Group D Smicts form the
auxiliary wng.

Recruiment

52
There are certain distinguishing features of the public scfvices
Recruitmcnt is generally made by open competitive examinations conducted by
tndependent bodes hke the Umon Public Senwe Comrmssion, Subordinate Savicc
Comrmssions, Service Selection Boards etc The p d u r e s are open, transparent
and generally trouble-free We have a high degrec of fairness and objectivity in
selection to the public services

Constitutional
powers

5.3
The public servants are authorities under the Constitution and the
law of the land. They derive their power and authority from Articles 109 to 3 13.
of the Constitutionand various-Acts, Rules, Regulations and notification$;~aIlof
which have a legal sanctity. The exercise of such authority is subject to scruthf
by a number of institutions. The legality can be questi&ed in a court of law; the
propriety can be challenged by the Comptrolter and Auditor General; the
contribution to public welfare can be debated in Parliament and its many
Committees; the iflqpty aspcct can be probed by various vigilance organisations,
and an indepcndcnt press performs a vigorous watchdog role. Thus all the
institutions that arc prcrequisites for an independent, fair-minded, honest, devoted
public service arc in place.

51

1
Complaints of h e
public

PUBLIC IMPRESSIONS

Howvcr, if onc spcaks to any cnlightcncd tiicmbcr of the public he

54
has several complaints against the public services. Thcsc relate to their sile.
productivity, accountability, transparency and intcgrity.

S1.W

5.5
Thcrc is a gcncral imprcssion that thc rrbsolutc silt of tlic
burcaucrrrcy is ovcrgrown bcyond what is ftiiidanicntally iieccsscln. It is oftcn
rcfcrrcd to as bcing "bloatcd". It is also fclt that the ;iunibcrs arc iiicrcasiiig at a
rapid pace. with scant regard for thc work-load. Pcoplc also spcak of tlic
burcaucricy being top-hcavy

t'rodrcstl\?~v

56
Not only are public servants pcrccivcd to be too many in numbcr.
it is also believed that they do not contribute to thc gross domestic product Public
scwants are alleged to invanably come late to office,spend a large part of the day
in sipping tea, smoklng and indulging in gossip. and leave officc carly
Consequently, productivity is said to be abysmally low, estimates of thcir actual
\\orking hours ranging from onc to two and a half hours in a da?

Accounfabihy

5.7
It is felt that bureaucrats are a law unto themselves. Thcy hide
behinds mountains of paper, maintain uncallcd for secrccy in their dealings with
public issues, takc surreptitious decisions for considerations that arc not always
spclt out on paper, and arc amuntable to no one. They havc lifc-timc contracts of
service which cannot be cut shori on any ground, dcfendcd as thcy arc by thc
safeguardsunder b c l e 3 1 1 of the Constitution. Their misdecds are ncver found
out. Ifacposed, they take refuge behind the protcctivc wall of collcctivc dccisionmaking in committees, which cannot be brought to bdok.

Inrrgriy
. -

The most serious charge levelled against thcm is that they lack
5.8
integrity and honesty. llus t h q are alleged to lack not merely in the scnsc that they
accept money or rewards for the decisions they take as public scnants in thc
exercisc of thcir sovereign powers, but also in the larger sense of not maintaining
a harmony between their thoughts, words and deeds. Many scams arc bcing
uncovered every day and evidence unearthed of public scnants not only conniving
at corruption but being the beneficiaries of the systcm themselves.

SELF-IMAGE OF THE PUBLIC SERVANTS

Importance

59
If one speaks to public servants, they have a different story to tell
They feel that thar tasks have become increasingly complex and important over the
years Inha used to be a comparatively smpler semi-feudal society that had
remained largely static and unchanged over centuries It had been described
variously as 'the mtinent of Circe' or 'an area of darkness' Suddenly it has becn
transformed mto a nation wth 'a million muhnies'. The disadvantaged sections of
society - women, backward classes, scheduled castes and tribes. dalits, minorities,
the poor, the handicapped -have woken up to the,, ;@r Everywhere there are
struggles and these have got to be resolved peacefully, productively and
meaningfully

5.10
The increasein the size of the work-forcehas not unfortunately kept
pace with the workload, the bureaucrats .feel. There arc unnecessary hurdles on
creation of posts and illogical across-the-board cuts in numbers. The result is
delay, inefliciency and corruption
S ~ J I ~ Ili*veh
W

5 \I

The public servants fcel victimid by thc systcm which has pcggcd
their salaries at very low levels compared to (he public and privatc enterprises Thc
r a n t cnby of multi-nationals and NRI-owned companies in the Indian market has
100

f d x r dmpcncd that cnhsiasm, as thcy find lhcir own ncvt gcncration drawing
salancs which bcar no rclauaiship at all with their o\vn pctty wages Thcy arc also
rcscntful of the fact that Pay Commissions arc sct up at intcrvals of dccadcs and
that thae is only pmal ncutralisatm of the nsc in cost of living, which means that
thcy are bcing subjccted to a gradual and sustained proccss of impovcnshqmt
Itltegr;&

5 12
Many public scrvants fccl that only a small pcrccntage of lhem me
cormpt, but thc),are all tarrcd with the same brush. Thcy would like Govemmcnt
dtake s@daction agahst such miscreants, so that the general image of the public
servant is not sullied. They feel that they are actually accountable to a host of
agencies and, in fad, many of thcm havc stopped taking decisions owing to the fear
that any decision taken by thcm is liablc to be misconstmcd and misintcrpnted.

I
1

A BALANCED APPRECIATION

Gap in
perceptions

5 13
There is a yawning chasm betwcen thc public perception of the
bureaucracy and its self-imagc. Both views arc rathcr exaggerated and the reality
lics somewhere in thc middle.

Achievements

5.14
The achievements of the public services are laudable. If wc have
been able to govern a country which is more of a sub-continent, with so many
elements of religion, caste, communiq, language or region that can divide, some
credit should go to the bureaucrats too. Our scientists have worked wonders in the
fields of space, agricultural production, atomic energy, defence production,
electronics, computer software and so on. Our cngincers have built roads,
high\va>s,buildings, dams, factories and otha complicated structures. Our doctors
havc eliminated a number of diseascs and lengthened the life-span of each citizen.
Our dplomats have implemented a fearless and independent foreign policy which
has steered us clear of the power blocs. Our soldiers and policemen have defendcd
the'integrity oi'ihe nation. Our industrial workers have shown wonderful results
in-numerous fields: On the .whole, India's ovcrall progress spanning the last half
a c e n w , whle sustaiung a vibrant democracy, an independent judiciary and a free
press, is not a mean achievement.

Failures

5 15
We could have done better. We should have loosened controls
over the private sector We should have opened out into the global market We
should havc resorted to cconomic liberalisation Whatever steps we have taken in
the last five years could have been timed for the early eighties Even at present,
there are areas of public sector disinvestment, dismantling of tariff bamers,
bringing down of rates of corporate taxation and interest rates, nghtsizing of
manpowr, controls over industry and trade at State Government le~elctc where
wc arc still dragging our fixt Part of the reasod i s the disinclination of the
political executive to let go the levers of power, the unwillingness of the local
industry to face global competition and the reluctance of the trade unions to
come to terms with the new environment. But the bureaucracy has also to share
pan of thc blame
5.10
With rcgard to the SIX ofthc public SCTVICCS. while 11IS tmc that the
numbcrs havc rlseii sharply Goni 29.82 lakhs in I97 1 to 4 1 182 lakhs in 1994 as far
as cn 111;uiCentral Government cmployms arc conccmcd. there is a visible trend
towards slowing down ofthe annual increase, over the last 15 years. Various

nxxsurcs taka1 by Govcnimcnt arc rcsponsibl~for this. I n I'aci. thc otdy scgnicnt
which has sccn substantial incrcasc in numbcrs in rcccnt vcars is that of Ccntral
policc organisations and hcrc thc rcasons arc known. Thc cxppditurc on pay and
dllowanccs of Central Governmcnt cmployccs as a pcrccntagc of thc total rcvcnuc
cspem$turc.of thc Central Government has also mmc down from 33.5 in 1960-6 1
1028.3 in 1970-71, 19.1in 1980-81 and '13.6 in 1993-94. This is mostlybccausc
of the tremcndous increase in the total revenue expcnditurc and thcreforc thc
pcrcentagcfigyre may not give us a realistic picture. Be that as it may, there is no
doubt in our mind that there is a substantial scope for an across-thc-board cut in
numbers and w are makingour recommendationson this aspect in a later chapter.
5 . I7

Producitvi~

There is no doubt that the productivity in Governmcnt is quite low.

Lack of punctuality is one reason,' the five-day week and the largc numbcr of
holidays anothcr. Sufficient care has not been taken in dcvising criteria for
measurement of an empluyec's output. Most of the norms for creation of posts are
outdated and necd to be revised. Thcre arc no incentivcs for highcr output and
promotions arc almost automatic. Thcrc is unduc cinphasis on rules and
proocdures, and riot enough on output. lntcrfercncc from political sources crcatcs
havoc in day-to-day administration.

Accouiiiabilir).

The true position about accountability is that Government

employees are accountable but to the wrong people for the wrong reasons. There
is accountability to vigilance, but if the paperwork has been done skilfully it is
difficult to hold anyone responsible. Auditors are unfortunately more concerned
with whethet all the procodms have been meticulously followed. In any case, the
PAC questionS a remote successor about the misdeeds of his predecessors who arc
no longer traceable. Newspapers tend to sensationalize news, with thc rcsult that
good solid work gets overlkked and silent workers ncvcr get pattcd on the back.
What we require is on-line monitoring of performance, pcrformancc budgeting,
performanceaudt, concurrent evaluation, continuous counselling and feedback at
all levels.

iniegriy

5.19
Integrity has never been a strong point of the bureaucracy in India
and the situation has definitely worsened in recent years. The time is ripe for
drastic steps to counter comption, which has assumed cancerous proportions in
the body politic.

Salary Levels

5.20

5.18

Salary levels in the Central Government used to be quite attractive,

when compared to the private and public sectors as also the State Governments and
Universities. Over the years the other sectors have gone ahead and public servants
have been left way behind. .Something siguifirint need9 t~ 'be done or else
Government employment will soon bc the last choice of bright young meti and
women.

CRUCIAL SIGNIFICANCE OF PUBLIC SERVICES

'rillto1

Jniportmct

5 21

The deterioration in the calibre of Ccntral Govcrnmcnt crnployccs

could have b a n ignored if lhcy had bccn unimportant cogs In the machinc of
governance It has rlow bccn proved in country aflcr country that an honcst.
professionallysound,contented bureaucracy is a critical clcmcnt of any programme

102

o f m n m i c rcsurbpce. Thcir iniportancc arises froiii tho followng fuiictions that

thcy and only thcy can pcrfornl :

They are catalytic agents of change. In dcvcloplng countrics,

they arc ofien thc most cducatcd and \veil qualificd groups of
pcoplc with a prcscncc right up to thc grassroots. They haw ilcccss
40 information from all over thc world, thcy havc the means to
imp!ement ideas and the), have thc communication network to
propagatc their agendas for action.

$Theyenforce socially beneficial regulations with reference to

cqucial inputs like land, forests, minerals, encrgy, water, finance,
manpower, training, education, health, housing and the likc They
can hastcn the setting up of infrastructure, specd up customs
clcarances and provide a boost 10 international tradc

As watchdogs, they are capable of regulating the actions of all

the players and ensuring a level playing field. They can support
the good peoplc and supprcss thc malefactors.

Needfor bes/
brains

They provide inputs to the maintenance of the macroeconomic equilibrhm, by controlling the total money supply,
keeping inflation under chcck, preventing the dumping of goods by
foreign competitors, taking steps to rctain a. positive balance of
payments, adopting a national policy on manpower-rclated issues
and so on.
They are the ones wedded to the task of defending the unity
and integrity of the country against recalcitrant neighbours and
misguided internal saboteurs. They promote peace, stability and
t
no mnomic, social, political or creativc
tranquillity, ~ i t h o uwhich
activity can ever flourish.

5.22

It is thus of the utmost importancethat the best brains in the country

are attraded to the public savices. They should not only be motivated to enter h e
services but also to remain thcre with f i l l professionalism, motivation and devotion.
to duty. This necessitates a positive look at all the major parameters oftheir
induction and retention.

POINTS TO BE CONSIDERED BY THE PRY COMMISSION

Ow apprwcli

5.23
We have divided our approach to the problem of the public servants
into four segments.

Eflciency

5.24.

Iti

adnrint.rtration

In Section II of this Part, wc look at the area of efficiency in

administration. For this purposc \vc Iiavc to establish an efficiency programme
at the highest levels of Government. Thc forcmost'task thercaficr is to redcfinc
the functional goals of each govcrnnicntal organisation. Therc arc ccrtain .scnices,
that can be contractad out to othcr agcncics and thcsc nced to be idcntified. Certain
areas might rcquirc a partnership bctwccn thc Govcrnmcnt .and privatc sector.

5 25
Thcn \\c looh at ways and nicans of rcstructuring thc Govcrnmcnt
Thc uorh mcthods and uork cnvironmcnt \st11 nccd to hc drastically changcd
Dcviccs likc dclaycring ha\ c to bc innovatcd so that tlicrc is a niarkcd iiicrcasc i n
thc producti\ it! of Govcmriiciit cmployccs This \vill in\ olvc automation and
reduction of papcrnork Thcrc has to'bc grcatcr opcnncss i n Govcrnmcnt's
functiorung. and a more broad-based autonomy and dclcgation of powcrs to loner
formations Grievancc redrcssal has to be quick and forthright, and a rcsponsii e
system of management information has to bc devcloped
Human resource
dttvelopmmt

5 26
In Section 111, wc hscuss the various mcthods of human rcsourcc
dcvclopment Starting with recruitment and retention, we csplorc thc possibility
of introducing some mobility between Government and othcr sectors We also looh
at the potential of contractual employment in Govcrnmcnt Training is an
important facet of manpower development, while wc try to find out hot!
performance apprmd can become as objective and impartial as possiblc We also
review the promotion policy and other methods by uhich motivation levcls of
employees can be improved We try to develop mcchanisms to ensure a grcatcr
degrce of accountability and suggest some innocativc stcps on transfer polic)

Size of

5 27
In Section IV, we have taken up thc crucial question of optimising
the size of the Government machinery We first considcr thc organized services
and then take major departments of railways, postal and tclecommunication
services, central policc organisations and armed forces for detailed consideration

Gowrnnietil

Conclusion

5 28
It is only after dwussing these crucial aspects of how wc can hat c
a competent, professional, productive, motivated band of pcople in the employment
of the Government that we move to the other major task of devising an appropriatc
structure of Compensation packages for them. We 'want to emphasize that our
report should be taken as a single document and the inter-connectedness of
the various elements of the report should be borne in mind while taking
individual decisions In particular, the size of the bureaucracy has to come dourn
drastically and the public sewant has to be much morc productivc and accountable
than he is today

104 :

HISTORICAL PERSPECTIVE
It cannot be said that the realisahon of the critical importance of thc
public service to the ovaall development of the country is rccent. There have been
several attempts at administrative reforms, starting from the Secretariat
Reorganisation Committee, which submitted its repofi in August, 1947. The
Committee suggested various steps fix adrmnistrative reorganisation in the context
of British withdrawal from India.
6.1

6.2
In 1949, Gopalaswami Ayyangar submitted a Report on
Reorganisation of the Machinery of Government. Besides suggesting the
regrouping of Ministries, he advocated the establishment of an Organisation and
Methods Division to keep a continuous watch over the performance of he
administrative system and to improve the standards of efficiency therein.

6.3
In 1950, the Constitution of India came into force. It was by itself
a fundamental instrument of administrative reforms. It laid the ground rules
guiding the relationship betwcen the citizens and the State, and the State and the
civil servants.
6.4
In 1951, A.D. Gorwala submitted his Report on Public
Adrmnistration in which he made a number of recommendations particularly with
regard to introduction of Organisation and Methohs procedures in Government
dcparlments
Two reports which had a significant impact \ w e Paul H.Appleby's
'Public Administration in India f Report of a.Survey, 1953' and "Re-examination
of India's Administrative System. 1956". As onc of the outcomes of his 1953
Report, an 0 & M division was set up in l954 in the Cabinet Sccretariat. Thc
attempt here was to effcct imprOvcmcnt in papcr management through
manualisation and a system of inspcctions.
6.5

105

Second Pay
Commission

6.6
The Second Pay Commission ( 1959) recommended the pooling of
the Secretanat and the attached offices into a single headquarters organisauon, as
also the establishmentof a Whitley Council type of machinery for negotiation and
settlement of disputes

Sonlhanam
Committee

67
In 1964, the Santhanam Committee looked into the problem of
corruption. Its reoammendations led to the establishment of the Central Vigilance
Commission and amendment of the conduct rules.

Department of
Administrative
Rr/ons

In the sameyear, a Department of Administrative Reforms was set

up in the Ministry of Home Affairs and the 0 8t M Division transferred to it. In
1965, a Bureau of Public Enterprises was set up to provide an inhouse management
consultancy agency for public enterprises.

Administrative
Reforms

69
In 1966, Government set up the Admhstrative Reforms
Commission under the chairmanship of Shri Morarji Desa. From 1966 to 1970,
the Commission submitted 20 reports which led to many major changes. The
Departmentof Personnel was set up, the role of the Department of Administrative
Reforms was redefined, new systems of Secretariat working mcludmg the desk
officer system were introduced, performance budgetmg was adopted by all
developmental ministries, financial and adn)inistrativepowers were delegated to
the maximum extent and the Bureau of Public Enterprises was strengthened

Commission

6.8

6.10

.Vo1tonal Police
Commision

The National PoliceCommission (1977-87)examined the role and

functions of the police and modemisation of law enforcement, and suggested
arrangements for preventing misuse of powers by the police.

Ministry of
Personnel

6.11
In 1985, a MI-fledgedMinistry of Personnel, Public Gnevances and
Pensions was set up directly under the Prime Minister, and a new Ministry of
Programme Implementation was established to improve the overall economic
management of the country.

Jha (.'ommiision

6.12
The Economic Adnunistrative Reforms Commission under L.K.Jha
( 1983) advocated the &to mowe towards accountability in the positive sense, so
that greater importance was given to performance than mere adherence to rules and
procedures. The amcept of Management by Objectives was introduced in the form
of Annual Action Plans for Ministries and Departments and Memoranda of
Understandingwith Public Sector Undutalungs. Similarly, an on line monitoring
of managerial performance in infrirr;tructure sectors was initiated.

Lessortsjkm h e

6.13
Although the many reforms introduced in the last 50 years have
borne some fruit, thae has been a tendency for dymmc initiatives to peter out once
the prime movers &hind $em were removed. Thus the systems of performance
budgeting, annual action plan, management by objectives, organisation and
methods, memorandum of understanding etc., which started off as highly

Past

innovative responsesto systemic stasis, got convertad into routhe, ritual exercises
bereft of any meaning. Orgamationalreforms have tended to be more in form than
in real substance, leaving little impact on the efficiency of the system. What has
been lacking is a congruence between strategy, structure and substance Indian
cxperimcnts with r e f m do not get institutionalisod, they often fade awav with thc
pcrsonalitics who introduced them.

I06

INITIATIVES TAKEN ELSEWHERE

International
ugnrience

6. I4
The Commission had thc opportunity to peruse the excellent
publications titled "Current Good Practices and New Developments in.Public
Service Management'' brought out by the Commonwealth Secretariat idrespest of
different Commonwealth countries. It also had the opportun~tyof visiting the
Un$d Kmgdom, Canada, Malaysia and New Zealand in order to have a first-hand
interaction with those cohected with the public service reforms. Some of the
initiatives taken .in other countries have been discussed in the s u d n g
paragraphs.

THE UNITED KINGDOM

R e J m s in the
United Kingdom

6 I5
The U.K. Civil Service consists of over half a million people. The
most notable attempt to reform the Service was the Report of the Fulton
Committee,but the adrmnistrativeculture still remained bureaucratic. In 1979, the
Conservative Government led bv Margeret Thatcher sought to reduce public
expenditure in order to reduce direct taxation. The view was taken thatthe U.K
was over-governed and it would be in everyonc's interest for Government to play
a smaller role. This started the drive for Civil Service reforms.

Eficiency Unit

6.16
In .1979,the Prime Minister's Efficiency Unit was created and it has
fipically comprised two civil servants and three seconded .industrialists with a
support staff of three. Thc Unit developed a methodology based on Scrutiny
Exercises on narrowly focused and short-term studies in order to reduce
expenditure and improve efficiency of a department. It is not responsible for
conducting screening exercises; it is responsible for ensuring that such exercises
are conducted by the departments themselves. There are twenty exercises done
every year and these are stated to have produced savings of Pounds 200 to Pounds
300 million annually.

Financial
Management
Initiative

As the exercises recorded fundamental flaws in M Civil Service's

approach to management, the Financial Management Initiative was introduced in
1982. Managers in Government departments were given responsibility for
managing their own budgets Output was measured and the cost-effectiveness of
their work evaluated. Each Department was required to operate within a limit for
its manpower and total running costs.

Next Steps

In 1988, the Next Steps study recommended that Executive

Agencies should be established to cany out the executive functions of government
within a policy resources framework approved by the Minister. Each Agency
would be under the direction of the Chef Executive who would have freedom from
daydoday involveanent of the Minister. By Apfil, 1994,60% of the civil servants
\ m e working in Agencies and othcr organisations operating on Next Steps lines

Citizens'Charter

In 1991, thc Pnmc Ministcr launchcd the Citizens' Charter

6 19
htiative This IS a ten-year programmc dcsigncd to raise the standards of public
servicc It has six kcy prinaplcs-setting standards, i n f o m a t h and openness,
choice and consultation, courtcsy and hclpfulncss, putting things right and valuc
for money

6 17

6.18

107

L.essons/ion the 6.20

The conditions that have been showtl to be critical for the success
u K. ~
F of thc
~ programme
J
~
~
~
~
are:

sustained political commitment to change on the part of the

Government and a degree of cross-party agreement on policy
principles

pressure to secure the most efficient use of resources

pressure to reduce the number of people in the Civil Service

opportunities for civil servants to participate in analyzing the

problems that are faced

R e f m s I ~ New
I
Zealand

responsibility for implementation being firmly placed with those

responsible for sustaining the changes and
programmes of staff development directly linked to the reform
programme.

6.21
In New Zealand, reforms were initiated by the Government el@ted
in mid - 1984. Their key overall concepts were transparency and consistency, and
these translated into the following organising principles for the reforms process:

.The State should not be involved in any activities that would be

more efliciently and effectivelv performed by the community or by
private businesses

Trading enterprises would operate most efficiently and effectively

if structured on the lines of private sector businesses

Departments would operate most efficiently and effectively with

clearly specified and non-conflicting functions, particularly with
policy and operational functions separated, and with commercial
and non-commercial functions separated

Departmental managers would perform most effectively if made

fully accountable for the efficient running of their organrsations,
'with the minimum practicable central control of inputs

I.qislatiinr

6.22

pctsseli

legislaiion:

The quality, quantity and cost of products offered by the State

departments should be determined by the purchAscr's requirements
rather than the produccr's preferences.
These principles were reflected in three important pieces of

Structuml

6.23

The State Owned Enterprises Act, I986 which provided the basis
for converting the old tradjng departments and ajrporahns into
businesses along private sector lines
Tile State Sector Act, 1988 which made dcprutmcntal chief
executives fully accountabk for managing W
i OrgMiSations
eiliciemtly and effectively

The Public Finance Act, 1989 which changed the basis of state
sector financial management &om a focus on inputs to a focus 011
outputs (the relevance and efftctivcncss of actual products) and
outcomes(the OYQBHd t s ofthe outputs from the Government's
point of view).
The reforms process had fout main stages as under:

nfms

As part of the structural reform large departmentswere abolished

atid most of their functions assumed by Statt-owmd cntapristS.
Many of these were subsequently sold and most of the rCmaining

enterprises are viewed as potentially marketable. The State has

almost entirely withdrawn from direct involvement in trading
enterprises

Departmental restructuring began in 1985, to ratioaralise the

functionsand shape of the code public service, and moving much of
the service delivery fmctions to q new tier of nondepartmental
entities called 'crown entities'.

In 1988, Government began a major rtstructuring of the education

sector. Local education boards were abolished and their fuactions
transferred to elected boards of trustees. Simil~ly,health
aufiorities have been replaced by appointed regional health
authorities with funding responsibilities and Crown Mth
enterprises operating commexyially as service providcrs.
In 1988, chief executives became individually accountable to the
rmnisters, through limited term contfltcfs which were perf
related. The role of the State Services Commission ch
anployer of all public savants to employer of the chief executives.

JZ

Rcvicw of (he
Progrommc

6.24

A review of the reforms programme in New zcaland shows that

three aspects have been extremely successful. Transparency in the activities and

pmcesscs of the State, the liberation of managers from central input coatrols, and
the new f i i d management and accounting systems are revolutionising the way
in which departments and oficials work. New Zealand's economy has recovered,
its audit rating has been regraded upwards, inflation has been reduced to less than
two percent and employment has been growing steadily. The 1993 World

Competitiveness Report ranked New Zealand first in quality of government and

second on business community optimism.

109

6.25
The New Zcaland c x p e r i suggests
~
that thcrc arc seven kcy
elements to a successful reforms process. Thcsc arc:

AdmhiShdivr
refbms in

Malaysia

Vision 2020

unflinching political determination

very dear obicctivcS, agreed at the highest levels, and based on
an intelligent appmiation of the community's tolerances
'a set of comprebensive .and well-integrated basic principles,
agraed at the highest levels

sound kgal architecturethat n-dcfincs the rules outright

a demanding but realistic time-table

a core of unified, highly motivated, experiencd and

imaginative senior public servants, provided with sufficient
ftsources ad discretion to manag impIementation; and

very effective informatien and public reiations systems.

6.26
In Malaysia, the Government established the Development
Admikmtion unit (DAU) as a centre for administrative reforms in 1966 and six
years later the National Institute of Public Administration (INTAN) was set up to
develop slulls and expert~seamong public sector employees. The Malaysian
Administrative ModemiLabion and Management Planning Unit (MAMPU) was set
up in 1977 under the Prime Minister's Depment, to initiate administrative
changes and innovations to the Public Service Some of the important measures
introduced during the eighties included the downsizing of the Public Service
through privatizaticm, the mtroduction of the Malliysian Incorporated Concept and
the inculcation of positive values and work ethics. Efforts were also made to
improve the quality of counter services as also to streamline systems and
procedures.
6.27
In Februq 1991, the Prime Minister of Malaysia unveiled his
Vhm 2020, wh~chstatcs tht ~ t i aspiration
d
to attain a l l l y industrialid and
developednation status within the next three decades. This vision can be achieved
only if t h m is an excellent Public Service to meet the challenges of rapid

development in a constantly changing environment. The Public Service has

idavified seven fundamentalvalues which are deemed necessary for this purpose.
These are quaby, productivity, innovativeness, discipline, integrity, accountability,
and profdsionalism.
Qualiw

6.28
In November, 1929 the Government launched a nation-wide
Excellent Work Culture Movement which stresses quality as the foundation for
success. The Public Service adopted Total Quality Management in order to create
customcr-fmsedorg&ations capable of delivering quality outputs and services
to customers. Agencies were advised to fonn Quality Control Circles as an
effkctivc mechanism to mobilise expertise, experience and employee creativity in
110

cffativc nxchanism to mobilisc cxpcrtisc, cxpcricncc and cmployx crcatrvlty 111

problcni-solving. Thc Malaysian lncorporatcd Policy is bascd on'thc undcrlyng

philosophy that collaboration bctwccn Govcmmcnt and busincss is csscntial for
auxlcratcd national competitiveness in the global markctplaqc. Thc Govcnuncnt
has olso adoplcd rhc Clicnts' Charter which gtlsurcs that cach Govcmment agcncy
provides a written commitmcnt to its customcrs that goods and smiccs will
comply with dcclarcd quality standards.
t~UC~.rlVIly

6.29
The Public Savice placcs equal emphasis on productivity. The
Govcmment has identified eight critical factors. which influence productivity.
Thcsc arc manpowcf, systans and procedures, organisation structure, mariagemcnt
style, wadi cnvu-4
technology, materials and capital cquipmcnt. Productivity
measuremen(and cvaluation is also part of the improvemcnt effort. Various steps
havc been taken to introduce better file management, work simplification, form
design, officc automation, information technology, etc.
6.30
The professicinalism of &e civil servant has been further.enhanced
with the introduction of the New Remuneration System. This involves major
changes to thc cirganisationalstnrcbure,remuneration and reward system, and terms
of service. This has resulted in mating a cadre of innovative, crcativc and talented
cmplayeeswho have readily embracod B work culture that cmphasiscs performance,
quality and productivity.

.Slrntrgies/or
S14CCt.U

(1.3 1

Five main' stratcgies have becn adoptcd-to ensure thc successful

imp lcmcntation of administrative rcfoms. Thcsc includc consensus building,
documentation and .information dissemination, training, follow-up and followthrough, and recognitions and awards. The reforms are coordinated at the highest
Icvel by the Pancl on Admmistrative Reforms to the Civil Service which is chaired
bx thc Chief Secretan. and acts as a think-tank and prime mover. Consensus is
also built through discussions in four major permanent committees of Public
Scrvicc top management comprising Secretaries General of Ministries. Heads of
Services, Heads of Fcdaal Departments, representatives of State Governments and
Chicf Executives of Statutory Bodies.

Pohrrral support

6.32
A major reason for success is the personal interest shown by
the top political leadership, especially the Prime Ministers of Malaysia who havc
bccn the lcading propcllants of reforms.

P i 4 hlic Sewice

6.33
Thc starting point for thc Govcrnmcnt of Canada's joumq on the
road to administrativc d o r m is the process cntitlcd "Public Service 2000". This
was m d y the effort of thc federal public service itself. Although it had political
intcrcst and support. it was not closely dircctcd and actiwAy-managedby thc
politicians. Thus it docs not bear thc imprint of a particular political agenda as in
somc ohcr countrics.

2000

A;:I. 'l'lrert1c.v

6.34
Public Scnicc 2000 stakcd out somc kcy thcmcs. Thc Public
Scnicc must slrivc to pro\.idc a high quality smice and incrcasc clicnt satisfaction.
Thc Public Scnicc must bccon~cmorc cngagcd, morc opcn, morc visiblc and morc
consultative. Public Scmicc managcrs must crcatc organisations in which p p l c

morc hcavily in thc dcvclopmcnt of its pcoplc. It must rcducc thc burdcn of
intcmal controls so that intelligcnt, wcll-motivatcd managcrs havc gt-catcr latitudc
to improvc service quality and client satisbction.
6.35
Among thc initiativcs to improve, s e n k c quality IS the
cstablishmcnt of an intcrdepartmcntal-quality network and an attempt led by the
Treasury to cstablisb scrvicc standards for all dcpartmcnts. The rcduction of
central agency constraints is being addrcsscd by incrcased dclcgation of authority
for human resource managcmcnt to dcpanmcnts, and for financial managcmcnt
through the mechanism of Operating Budgcts and increnscd flexibility at the end
of thc fiscal year. Special Operating Agencies have been crcated to givc scrvicc
units within depaRments direct responsibility for results and increascd managerial
flexibility. Even in an era of fiscal constraint, thc Government has bccn increasing
its investment in the peoplc who constitutc the public scrvice. A new spccial
operating agency called Training & Development Canada has been created and the
Canadian Centre for Management Devclopment established to focus on thc needs
of theexecutive level. Emplaylng new mformation tcchnology is emerging as a kc!
way of achieving objectivcs such as improving scrvicc and reducing cost.

6.36 There are several reasons to believe that the process of public servicc
r e f m will continue for many years. First, there is a major economic problem
that gives it urgency. As a result of very substantial budgetq dcficits in the last
two decades, Canada finds itself in the-uncomfortableposition of being a major
international debtor. Thus there is a demand for major rcductions in'thc operating
cost of thc public sector. Secondly, Canada has always been in the forefront of
advances in communicationstechnology. Thc Canadian public sector will draw
upon this expertise to apply leading-cdgc information and communication
tcchnology to the pmVision of public services. The final factor is the commitment
of public servants to reform. The values that Public Service 2000 has espoused
arc taking root within thc culturc of the public servicc in Canada. at a11 Icvcls of
govmcnt.
ESTABLISH'ING THE NEED

6.37
Looking at thc expericncc clsewhcrc. it is apparcnt that thcrc is a
world-widcmovement for public scrvicc rcfom. Wc havc scen that thcir succcss
dcpendcd initially on thc firm comitmcnt to reforms at the highest lcvcl. Such
rcfm can come about in India only whci therc is an apprdciation that launching
an cfficicncy programme is critical for thc socio-economic dcvclopmcnt of thc
countq. This realitation has to come at the highest political level and nothing
short of a personal commitment of the Prime Minister himself will do. It has
also to be r e a l i d that this is not a political issue. Thus a national consensus necds
to be developed, cutting across party lines, so that the process of reform once
initiated is not allowed to peter out rnercly because of a chnngc of Govcrnmcnt.

DEVELOPING THE APPARATUS

0 3
Once thc ovcrall commibncnt is Iorthcoming. what is thcn rcquircd
is an apparatus which will spcarhcad thc rcforms and constantly monitor it. For
this purposc, thc following stcps nccd to be takcn .

I12

The Department of Administrative Reforms should become the

most importanf Department of the Central Government. It
should bc hcadcd and manncd by thc most brillimt and outstanding
offccrs availablc in Govcmmcnt

It should be a separate Department headed by a senior

Secretary.

There should be a Cabinet Committee on Public Service

Reforms, which should meet once a month. It should consist of
the Prime Minister, Finance Minister, Home Minister. Defencc
Minister and the Cabinet Minister incharge of Public Service
Reforms. This Committee s h d takc final decisions on proposals
put forth by the Committee of Sccrctarics and Chief Sccrctarics.

There should be a Committee.of Secretaries on Public Service

Reforms under the chairmanship of Cabinet Secretary. It should
meet once or twice a month, as may be warrantcd, to consider
specific proposals of administrativereforms.

Approach
reforms

10

Thc Department should cease to be an adjunct of the

Department of Personnel and may be placed directly under the
Cabinet Secretary and the PAme Minister.

Another Committee! of Chief Secretaries should meet once a

quarter under the chairmanshipof Cabinet Sccrctq to review and
monitor the public service reforms in the States.

6.39
With this apparatus in position, a step-by-stcp approach to public
senicc reforms should be adopted as follows.:

The Core fdnctions of Government should first be defined

The distribution of work between the three tiers of governance

will have to be restated

The number of Central Ministries and Departments should be

reduced drastically

The size and constitution of Central Ministries and

Departments should be redefined in order to fit them for their
newly stated roles

All functions that should be performed by the State

Governments and Panchayati Raj institutions may be
transferred to them

All functions that do not involve formulation of policy should

be delegated to agencies, which may bc public scctor cntcrpriscs,

autonomous bodies or cooperative institutions

113

Recruitment to the different services may be reduced

There should be a sound legal architecture tlist rcdcfincs tlic

rulcs outright

Thc Government office itself will need a. heavy dose of

restructuring

The financial management and budgetary system will have to

be totally rewritten

.il time-tahlr.fw
rictioti

Therc will have to bc a simplificatian of procedures and

formulation of accountability norms in Govcmmcnt.

(1.40

Abovc all: theri: is need for a dcmanding but rcalistic timc-tablc fcif
achieving the major objectivcs of thc dorm process. There will havc to bc some
short-circuiting of procedwes, some ruthlessness in implemcntation and some
strategy for managemtnt ctf change. Th~swill to the utmost Govcmmcnt's skills
in dealing with the opposition parties, thc unions and associations of Govcrnmcnt
cmployces, the press and thc general public. But if therc is a basic sinccrity of
purpose and a strong determination at the v t q topl.tangiblc rcsul1s can bc show
in two to threc years.

114:

The efficiency programme has to start with a redefinition of the

functional goals of Government. Unless the objectives of governanp am made
clear and specific, therewill always be a tendency for expansion of the bureaucracy
in accordance with the inexorable Parkinson's Law.
7.1

Hmtoriul
brrck~md

7.2

Thac was a time when govunmcnts were instruments of political

power and their mam fundon was to maintainlaw and order inside their territories
and to defend them boundaries against extand aggression. Over time, there was
an cnhancanentof the role u n k the innuencCofwclfafe, Keynesian and Marxist
ideologies, till the State threatenedtobccune an overbearing presence, exemplified
by the 'Big Brother is watching you' syndnwne. The last two decades have scen a
reversal of the trend, mainly due to the burgeoning budgetary deficits, fming
governments of all persuasions to cut back an staff, subsidies and functions.
In India also, the same trend exhibited itself. In the fifties and
sixties we were t y n g to find a middle way between the Soviet and the Beveridge
models and this gave rise to the 'socialistic pattern' Later. nationalisation
combined with de novo establishment of public sector enterprises became the
buzzwnrd and PSUs occupied an increaslnglv large area of indust? and commerce.
The fiscal indiscipline of the eighties finally led to the ignominicus crash of 1991
and to the reversal of the trend.
7.3

t'ro&ahon
qfdefarmmrt

74

Prulifaation of deparunents is a sure indcx of the '1 b m g net of

the Government Against only 35 ministries and de1)artincnts in .40,. we had 50
111 1972 and *re
are 81 ministnes and departmenls a1 prcsc I' D:spite the
economic refofins. in 1995 we hm the imedifiing spectx, af fivc new
departmentsbemg set up at the Centrc lndusuy. which IS alrcad! tksrtamnted into
several departments. got an off-shoot with 'inc!ustnal polic> and p"o . o t d being
separated out Urban Development Miriistq can cd out a separatc area of 'urban
cmplqment and poverly allewahon' and so did the Ministe of Rural kvclopment
branch off into 'rural employmcnt and poicn> allc\iation' A 'kpatment of

Animal Hushdry was set up in the Minisky of Agriculture and a Department of

Consumer Affairs in the Ministry of Civil Supplies.

CONCEPTS AND METHODOLOGY

Activiw
analysis

7.5
All this is a result of confustd and woolly thinking. Instead of only
looking for political slogans or how new slots can be created for ministers and
secretaries, we have to start by asking ourselves the following basic questions
about any pdcular activity :

Docs the job need to be done at all ?

If so,docs the Govhment have to be responsible for it ?

If so, which ievcl of Government ?

If it is the Central Government. d*s it have to carry out the job

itself?
If so, is the organisation properly structured for the job ?

76
If a Group of Three, who combine in themselves objectivity,
knowledge and dynamism, I d at the Central Government with the above
questicks in their mind, the answers will stare them in the face.

CONSULTANCY REPORT
Classttcatisrr
oJGovmumrpf

ofices

7.7
The report of the Tata Consultancy Services have suggested a
three-fold classification of Government offices, on the basis of the role
performed by them. They can be Core, Participatory or Auxiliary.

core.

The oflices under this category perform roles which are given
by the Constitution,which Cownment has to perform at all times, which are
governed by societal expectations and where the Government has exclusive
responsibility to deliver social goods and services. Exampks are : Atomic
Energy, Science and Technology,Space, Defence, External Affairs, Furance,
Forests, Home, Law, Planning and Rural Development.

.\

ParticiDaton; .
Thesecover a r e s !xve fhc Government has both a
policy making and enforcement role but private and public sectors are
allowed to participate in dclivcry of goods. w i v w tlic Cavernment has
direct
responsibilityof ensuring a desited kvel of delivery of services t!rough
or indirect intervention in the sectoral markets an& industry, and where
Government has a responsibility towards production and trading oi goods
and services. *Thesemay include Coal, Fhcation. Hcalth a d Family Welfare.
Energy, Petroleum, Stee!. Chermcals and Fertilizers, Industr)., Information and
Broadcasting. Railwa:. s. Surface Transport. Telecommutucatmns. Posts, Urban
Affairs and Civil Aviatio;!

Au,uilian.
Here the Government has only policy making
responsibility but not for delivery of goods and services, or Government may
enter for regulation of markets, trade practices etc Examples are AI? and
Culture. Food Processing, Sports, Tourism, Consumer Affairs. Labour, Water
Resources. Wastcland Dew clopment and Textiles
7.8
Thc above classificatimis highly arbitrary and simplistic, and there
is scope for endless refinement both of the definitions as well as the list of
Ministrieswvhich fall unck om or the othcfcattgory. The main point to appreciate
is the need to undertake such an excrcisC so as to be clear about what has to be
done by the Central Gowmment itself, where it has to regulate and participate and
where it need act only as policy maker and arbitrator.

7.9
Even within the Con category, the functional goals nctd to be
sharpened fiuther. Let us take defence which is definitely one of the key functions

of the Central Govemkent. We are I& with a lingering impression that the s ? a t
perception as perceived by the Government as a whole after looking at the political,
diplomatic,. military, strategic and economic aspects has not been clearly
articulated, to enable the armed forces to develop a long-term manpower policy
perspective. ' h s is a blatant exampleof fuzziness in our perception of functional
goals. Such examples can be multiplied.
7.10
At the leiel of individual organisation, what is required is a
mission orientation which provides clear and understandable goals fully
owned by the senior management and accepted by the operational staff. The
purpose of establishing a mission orientaticn is to :

clarify the goals of the organisation in the mind of the

management
clarify for staff the purpose of their jobs in meeting
oiganisational goals
make clear the p o k y of the Government to msure that it is
interpreted accurately by staff

engender pride in betonging to the organisation

provide targets to aim for, against which rcsults can be assessed.

The basic pre-conditions for this are :

7.11

understanding customer needs

top management commitment to goals expressed in the missioii
statement

clear grasp of mission concepts by management and staff

full explanation and training to staff

117:

7.12
A study of the experience of other countries underlines the
importanceof redefining functional goals, both of Government as a whole as also
of each g o v m t a l organisation in particular. The wncept of mission statement
is an effective tool in this process and is recommended for adoption.

.8 I
The rightsizingof Government and the shucturd reform of the
bureaucracy can gcc offto a flying start if the Government decides to privatise both
public sector undertakings as also departmental enterprises within a strict timeframe:while at the same time mtracting out many of its own activities to the
private sector.

8.2
Inteinatid experience suggests that the m a s of privatisation and
contracting out of services are very fertile and yeld a rich harvest k terms of a
diminished governmental presence in the life of a ci~zen,a reduction in the
draining out of public funds in a vain endeavour to bolster sick public enterprises,
improved and more cost.effective sentices to customs and better value for money.
United

Kingdom

8.3
In the United Kingdom, the Government departments use markettesting to assess whether the services for which they are responsible can best be
delivered in the public sector or the private sector. The objective is to promote fair
and open competition and find the supplier of a service whose combination of
price, quality and other factors offers the greatest value for money in the long tern.
8.4
In general, activities which have been found to be particutarly
suitable for market-testing are of the following types :

resource intensive
relatively discrete
specialist or support services
subject to fluctuating work patterns
subject to a quickly changing market
119

subject to rapidly changing technology

8.5
The White Paper 'Competing for Quality' (1991) set out. the
Go\.emment'splans to achieve better value for money, in particulk by opening up
more public senices to competition from die private sector, while. making it clear
that Government had no dogmatic preference for private or public provision of
senices.

Candidates for market-testing are identificd bv each department by

8.6
asking the following questions :

Is thc function or activity essential '? What are the implications of

not doing it? Or of doing it in a reduced or combined form
elsewhere ?

Can the activit) be performed morc cconomically by olhcr means

9

What is the full cost of the level of senice presently provided and
that which is considercd necessary '?

Is the function or activity organisationallydiscrete '!

What are the working methods, organisation and use of capital
assets *? What use is proposed of existing staff and assets ?

8.7
The attempt is to define thc user-nccd .for the' service and to
establish the cost of the existing service. A specification for ths service is drawn
up and this is part of the illvitation to tender. The providcrs of the current sa-vicc
are encoufaged to submit anin-house bid. E\.entually, the line management decides
on whether the service should be retained in-house or contracted out.
Sew Zealand

8.8.
Jn New Zzaland, tile mechanism developed to facilitate the
divestiture of the state trading agencies was the State O\\ned Enterprim Act of
1986. The process of economic liberalisation led to a major restructuring of the
public sector, first though corporatisaxion and in many instances subsequFntly
through privatisation. Government owned enterpriscs in fields such as banking.
forest?, insurancc. transport. communications and broadcasting were trmsfomed
into corporatc cntitics and were later fully privatiscd.
8.9
Thc. move LO corporatisc organisations was consistent with thc
Go\!ernment objective to open up many sectors of thc economy to internal and
esternal competition. State-owmcd enterprises wverc now statutorily required to
operate as successful commercial busincss and cmulatc thc cficicncy and
profitability of their private sector countcrparts. If Ciovcmmcnt wantcd such an
cntcrprise to providc a non-commercial senicc. it had to contract to do so. Thcsc
cnwrpriscs w r e expected to fund their spending from unsubsidizcd private sector
capital sourccs and to pay taxes arid dividcnds
For thc pn\ atisation proccss. no standard formula was applied A
rangc of routcs and mcthods was adopted. dcpcnding on cmditions in the markcl
o
plxc. fiscal considcrations rud political factors The! tcndcd to follo\v t ~ routes
8 10

: 120:

an equity route wherc shares were sold in clear& defined

commercial organisations

an asset route that entailed selling of assets because of the less

commercial nature of thc organisation.

8.11
The process of privatisation proved more controversial than
corporatisation. Particularly in the initial years, mistakes were made in
privatisation before the Government and the public service gained expenence. In
the privatisation of assets, as long as safeguards were installed, there was no
restriction on foreign ownership. Although most of the large scale privatisations
mvolving organisations such as Telecom, New Zealand Rail and Air New Zealand
have been completed, privatisation is an ongoing process.
Malaysia

8.12 .
The privatisation policy of Malaysia has been introduced in order
to relieve the administrative and financial burden of Government and to improve
efficiency and productivity. It was first announced in 1083 and the first stage
on of idonnation to the public. Guidelines on privatisation
consisted or.were published in 1985 and the Privatisntion Master Plan was launched in 199 1.

8.13
The privatisation pmgramme can be implemented in a number of
ways Theseare:

sale of Government assets or equity or sale of Government

companies' equity, whether in part or whole

lease of assets for a specified time period

management contract which uses management expertise of the
private sector to manage Government entities
Build-Operate-Transfer or Build-Own-Operate systems,
gemklly used for new infrastructure projects and public facilities.
Undcr this method, the public facilih is built by the private sector
using their own finances and is run by *em during the penod of
concession, at the end of which it is surrendered back to the
Govenuncnt

8.14
The planning of privatisation is done in the Economic Planning Unit
of the Prune Minister's Department and involves the idcntification of privatisation
candidates. In-depth studies are undertaken and these lead to two-year rolling
action-plans. An intdpartmental committee on privatisation discusses the plan
and, aftu h e approvalof the government, evaluates the various possible modes of
privatisation.
8.15
These are Government-initiatedprivatisation projects and therefore
But thac are also private sector-initiated proposals
subject to CompCLltive.-b
which are evaluated and if found to be auxqtable, b award is made by the ministry
concerned. Further, the private sector is allowed to initiate projects not yet
identified by Govenunent, provided that their proposals contain unique features by

: 121

.offainga uniqut solutimto im canamic problem or by using the exclusive patent

rights or technical know-h<*=iof a particular party.
8.16
The efforts at privatisation have been very successful, as they have
not only reducedthe administrative and financial burden of the Government but
also enhanced the efficiency and productivity of the privatised entities. In
Malaysia, therefore, the implementation of the privatisahon programme will
continue to be accelerated.

8.17
In the light of the international experience as also the peculiar
genius of Indian institutions, a. comprehensive policy perspective for
Corporatisation,pivafislytioliand contracting out of services needs to be drawn up.
Some sporadic efforts have been made by individual departments but there has
been no conscious pol!cy thrust initiated and monitored at the highest levels of
Government. The general parameters of such a policy perspective could be the
following :

a)

Cornoratisation :

No activity which involves manufacturing of goods or the

provision of commercial services should be undertaken by a
Government department. All such activities should be transferred to
existing public sector undertakings or new PSUs be set up to look after
them. Outstanding examples are ordnance factories in the Ministry of
Defence, mints, currency presses and opium factories in the Ministry of
F i ~ n c erail
, cuach fadoriesin the Ministry of Railways, telecom factories
in the Dcpartmdt of Telecommunicationsetc.
Corporatisation could also be a necessary half-way house on
There arc certain advantages of privatisation
which can be achieved through carporatisation, and wrporatisation is
always less controvasial'than privatisation.

the road to privatisation.

b)

Privatisation of activities where Govcrn&t

direct role

does not need to Dlav a

There are a number of areas where Government. either directly or

through its PSUs,has been compelled to play a role. If an objective and
dispassionate review reveals that such a role i s unwarranted,
Government should take expeditious steps to disentangle itself from
the same.
Examplts of such areas abound The National Textile Corporation
need not be a PSU. The clothing and vehicle factories in the Ordnance
Factories Board can be privatised with advantage. All printing presses,
d a q and other farms of the Ministry of Defimce, Telecom Factories, Delhi
Milk Scheme, Mail Motor Service, sale of postaSstationery, stamps and

: 122:

postal orders. Song and Drama Division of thc Iwinistqxtf hformation

and Broadcasting etc are outstanding ciindidatcs for privatisation
c)

Activities which should continue to be the exclusive resDonsibilitv of

the Government
There are activities like &fence. atomic energ?. space, development
of railway infrastructure, provision of security to sensitive installations
and so on which have to be the monopoly of the Government. These
should continue to be so. All we can do is to explore possibilities of
linking the private sector as a source of raw materials, components,
sub-assemblies and even some non-sensitive finished products.

d)

Areas which should retain the mixed economv conceot. but with
zreater comDetition

We should identify clearly those areas of the economy where for

reasons of public welfare it is not desirable either to keep them exclusively

in the public sector or in the private sector. The private sector should
play an increasingly active role in these areas, but there should be a
substantial presence of the public sector so as to ensure that quality
services are provideu at reasonable rates to members of the public.
Such areas wauld include road, rail and air transport,
telecommunicatioii saviccs, banking. insurance, power, medical and
educational services, courier services, construction and maintenance of
defence aircraft, ships, tanks and other equipment, production of blank
coins for mints etc.

e)

Contracting out of services

There is a widening area of services which are currently being

performed in-house in the Government, but which can be
conveniently outsourced to the private sector.
These may include designing: construction and maintenance of
Goianment buildmgs, factories, workshops, residential colonies, railway
stations. equipment and transport. clcanlincss, sanitation and
housekeeping, maintenance of monunicnts. lams and gardens. catering
(includingcatcring in airlines, trains, canteens). provision of transportation
scnices (to rcplace the fleet of staff cars), postal deliveries, carriage of
mail, security of all non-sensitive buildinss and installations,rcservations
in railwa>sand airlines, printing, reprography, photography, audio-visual
publicih, translation, interpretation. computer-related services,
maintenance of accounts etc.
Routes$or
~

8.18
As far as pnvatisation is concerncd, this can also take a iariety of
* as
~ in
~ other
~ countries
~
~
routcs
-

There could be straight disinvestment of Government equiR m

public sector enterprises
: 123:

Lease of assets could be tried out

In certain areas, management contracts could be given to private

companies

There could be private participation fof impro\ement of a public

service

We may also by out tiic Build-Operatc-Transfer kind of schemes,

so that the assets revert to the Go.remment after the private
company has realiscd its investment
I

INITIATIVES ALREADY TAKEN IN INDIA

The Build-o\vn-LeaseiTransfw(BOLT)scheme has becn launched

by the railwcsin order to attract private finance in railway projccu
on leasing terms. At the cnd of the lease period asse:s arc
t r a n s f d to the Railways on a nominal pa>mest. Efforts arc
being made to attract private capital f a manufacture of roiling
stock,
gauge
conversion,
do;ublings. elccttificrrtion.
telecoxhrnuniation etc.
An Own Your Wagon scheme has also been init1ate.I for
investment by rail users in acquisition of wagons by the Raiiways
in retutn for asSured allotment of wagom and lcasc charges to be
paid by the Railways.

Mainttmance ofrailway stations and colonies are being tricd out for
2rivatisation.
All flitweecatering in trains is being sourced out to private
contractors.
Printing of postal stationery has been partly privatiscd
A scheme of Licrnsed Postal Agencies esistd upto thc late cighties
but thcrc were complaints of misuse or authorisation and

opposition from the Staff Fdcratlons.

Carriage of mail through private and public transportcrs has bccn
s u c c e s s f ~undertaken for s m l decades in rural and semi-urban
aTe8S.

(viii) In tnc D c p a m n t of Teleconi, value addcd scn'iccs and ccllular

phone scctor has alrcady bccn privattscd fully.
(is) Several dcpanments haw contracted out sanitation, mrrintcnancc.
security. computer, rcprography, cantccn and transport scniccs.

(s)

Some militap-dai? farms have been closed down.

(xi)

MES contracts out its building works and has started giving out
maintenance work also to private contractors.

(sii) Several ordnance factories are buying compontnts,from the private

sector.
D:scnwstment
l - l m l I rvan

8 20

Some progress has also been made in respect of disinvestment of

Government equity in PSUs Disinvestment was first conceived primarily as a
mcthod for reducing the fiscal deficit. but it got bogged down in controversies
Reccntl!. the Government has set up a Public Sector Disinvestment Commission
\\ hich is expected to suggest a comprehensive overall long-term disinvestment
programme for about forty PSUs referred to I t by the Core Group. It will pnorihse
thc PSUs irl terms of the o\erall cfisinvestment programme, recommend the
preferred mode of disinvestment (domestic capital markethntefnahonal capital
matket/ auchodpnvate sale to identified investors/ my other mode), suggest the
appropnate mix between pnmary and secondary disinvestments, advise
Government on possible capital restructuring of the enterprises etc.

Present trends indicate that Government may concentrate, in the

short run, on reforming the PSUs by grant of greater autonomy and
flexibility, greater delegation of powers, introduction of greater
accountabilityby means of perfonnincix=elated pay and a system of hire and
fire and other similar measures. The issue of transfer of ownership of these
enterprises may get deferred.

8 21

h t e v e r the shape disinvestment may take, observers feel that it

would be god for collsc~nasas the Government wdl relax such controls on private
enierprises as had been imposed in order to protect the public sector enterprises
lrom competition.
8.22

It will be apparent fmm the above discussion that although some

Roie ol/h.odr

8.23

un:ons

steps have been taken totvards caporatisation, privatisation and contracting out of

scrvices in India, these have been ad hoc, unsystematic and halting. What is
required is a clear and comprehensive pblicy in this crucial area, so, 6s to
progressively reduce the role of the public sector in.the industrial an<
commercial activity of.the nation. There are bound to be hurdles on the way.
The ma^^. opposition will come from the trade unions and associatipns. They will
have to be handled with care and circumspection. There may be a need for n new
policy on the--formationof trade unions, on the pattern of what has been
attempted in otherxountries. Workers will also have to understand that in the
pcrspective of globalisation, WE have to compete or perish.
Needfor
Im"s~amn~

8.24
The other problcm \\odd be to keep the process of disinvestment
and privatisation as transparent as possible, so as to obviate the criticism'of
partisanship and malfcasancr:. Even in advanced countries these have attracted
virulent controversies and India can be no exception.

I25

VahJor
money

8.25
Lastly, we have to keep the public interest paramount in our minds.
Privatisation should not become a fad, as nationalisation had become at one
stage. We should choose the private sector, the public sector or a mix of the two,
according to the nature of the Conimodity or service lo be produced and the only
touchstone should be that the ultimate customer should get the best value for
his money on a long-term basis in as competitive a market as is humanly
possible.

INTRODUmION

.9.1
The entire machiripe of Government has got to be reinvented. This
4s a mammoth task. it is nat possible for us to go into thc details of the

restructurins exercise that such a reinvention would entail. In this chapter, we

would like to take up the bIinistries of the Czntral Government as an esample md
demonstrate how the restructuring could help.

9.2
We had 8 posts of Secretaries,18 deparlmentsand a total workforce
of 14.40 lllkhs in 1948. Todav. w e have 92 Secretaries, 79 departments and 2
workforce of more than 41 lakhs. No doubt, the work has expanded. but the
expansion of the Government is disproportionate to the increase ot workload.
There have bccn many attenipts at reforming the Central
9.3
Government. Some of these are :

setting up of Organisation and Methods Divisions in the Ministries.

setting up of a Department of Administrativc Refoms

setting up of a Department of Personnel, Public Grievances and

Pensions

sctting up of Staff Inspection Unit

introduction of Desk O f h c r system

introduction of Financial Adviser system

introduction of Annual Action Plans

introduction of Performance Budgeting

CONSULTANCYSTUMES

WehadawsdadtwostudicsonrestructuringofthcGovanmcntto
IIT, Dclhi and Tata Cansuhrncy Services.9.4
IIT. &&I

95
The IIT, Deb identified the major objective of restructuring to be
goal achievement and mice oriatation, through flexibility and enicicncy. The
ns. g options involved interventions atthe level of situation, action and
process. At the level of s i t u t i o ~ 1 ,the physical environment, the operating
environment and the socio-cultufalcnvircnment was to be chmgcd. At the actor
level, bothsystemic and attituditdchanges\ w e required At the process level. the

interventionsrelated to operatiorla1processes and stra!egic processes

Intmnwntiau
suggested

9.6
For Phase 1; thc interventions found feasible at situation level were
: conducive physical worlung conditions; openness to environment; fedefalism;
systcin. At the actor level these were training for
,+layering;anddeckion-

multi-skilling; involvancnt in clarifying goals and objectives; quality and work

consciousness; stllse of digmty and individuality: promoting self-help; and
receptivity to technology-bascdsolutions. Process level options identified were:
simplifLingsystem of checks and balances; horizontal communication processes;
minimal and approlxlatenpating and documentatioir; upward feedback processes;
privatized support scrviccs; reorienting strategically to liberalize; shedding
functions to affliated ardonomous bodies; installing learning processes;
reengineering work flows and'continuouschange in work proccssts.
.

~ct?lF=o/~e

9.7
The fidings of the study point towards a decision-oriented,
facilitative, flatter,fkxibk, Information Technology support@, participative
and elegant Government office effectively achieving goals with service and
client orientation.

7csshrdy

9.8
The TCS catqmzeci various Governmuit offices into three broad
types - Core, Partidpatory and Auxiliary. Based on the decision-malungmatrices
in these offices, the study concluded that one of the major changes in the
organisational structure was to reduce the levels in the hierarchy from nine
to seven. A flatterhierarchy would ensure speedy decision-makingand be able to
respond quickly to the demands of the environment.
9.9.

The levels proposed were :

ChiefExdve
Senior Executive
Middle Executive
Junior Executive
Supervisory
Assistant
Suppodattendant

Grades and Icvrls 9-10

Eighteen gradcs were proposed in these seven levels. The grades

within a level would only be for promotional purposes and not form a
hierarchy-for reporting. The promotional channels were increased to provide

128

carccr groulh for the employees. Thus the hiaiuchial Icvcls wcrc delinked from
promotional gradcs
I9ecisimi-making
mare important

9ll
The study laid emphasis' on decision-makers rather than on
assistants It proposed that each section within a department should have just one
Assistant - level position. Decisions should be hastened. and files and papers
should be disposed of at the level to which they wcrc addressed

The support staffthat would be Fwdeced redundant could be iitiliscd

in the following manner:

9.12

by training them in computer applications so that Government

departments could redeploy than in those functions
b! transfixring them to new activities or projects, aftcr giving them
adequate training in the new skills.

9.13
The TCS study considered restructuring in three streams. The fmt
was organisational structure. The second was a comprehensive human ~CSOU~CC
dcvelopmcnt system to achicvep t c r efficiency, responsiveness and productivity,
and to bring in sustainabilityin tbt Organisation The third concentrated on the two
major ofice systems -record management and dak system, ofice equipment,
information technology and wock environment.
9.14
In this chapter, wc shall wnmtrate on the friit stream viz.
organisatid mtructurhg in tht contextof the Ministries and Departments of the
Central Government.

L
The dime basic

qnestimis

OUR PROPOSALS

The first e ~ ~ ~wci must

s e have is to s u m q the entire gamut of
Governmental functioning and ask the three usual basic questions :
9.15

Things that nued

na be done

Thihgs that need

tiot be done by

Government

Does this need to be done ?

Does this need to be done in Government *?
Does this need to be in the Central Govcrnmcnt?

The answers to these questions, if attempted in an objective and

dispassionate manner, will show that some activities need not be undertaken
at all. For example. wc do not need the large and expcnsivc memorials which have
taken up so much of prime land and building space besides involving heab?;
recurring expenditure. The moment we identift this as an activity that should be
stopped forth;\ ith, a number.ofaction points cmergc.
9.16

In the second category, we may conclude that bread, milk o r

condoms need not be manufactured in Government. In the third category, wc
may decide that 90% of our effort in education, health, agriculture, law and
order etc. should be with the State Governments. Our honest replits to the
basic questions will show us the areas in which restructuring can yield rich
dividends.
9.17

: 129:

Number of
Ministries

9.18 Onc ofthe basic objectivesof restxuctunng is reduction of staff. It is best

to begrnwith the topmost categoq of Secretary. There is a general feeling that \;.e
have too many Secretaries to the Government of India. Health is a State subject
Do we really need three Secretaries in the Minis@ of Health, looking after Health,
Family Welfare and Indian System of Medicine ? We would like to recommend
that there should be just one Secretary for ?he whole Ministry.
9. I9
Similarly, industry is a State subJect. We have separatc departments
of Industrial Policy and Promotion, Industrial Development, Public Enterprises.
Heavy Industry, Small Scale Industries, A g o and Rural Industries and Textiles.
With the reducedemphasis on licensing, one Secretary could look after all these
subjects in a single Ministry..

Similarly. it does not seem ncccssary to deploy a Sccrctary cach for

Animal Husbandry, Inter State Council, Official Language, Programme
Implementation and thc likc. We have appended a small list at Annexe 9.1,
suggesting some realignments of departments.

9.20

9.2 1
The most major restructuring effort would be in determining
the size of a Department or Ministry. The genaal formula that we would like
to suggest in this regard is the follo\ving :

-.

If it is a Corc Central subject, we may not take it up in the

beginning

if it is a Core State subject, it cannot be a Core Central subject too.

In that case it shbuld be high on the list of Ministrics to bc reduced
in size
as we move away from Core subjects to Participatory or
Auxiliary subjects, the need for sizeable Ministries becomes
more and more questionable. Such Ministries should be axed
first of all.

9 22
Mmstnes have axtamorganisations or activities which may either
be an integral part of the Mmistq. or an attached or subordinate offkc Very
often, such organisations have no business to be in Government. They would
be much better managed if they were in the public sector, the cooperative
sector or as an autonomous body. jus: ene example d d 1 t!pc \\ill suficc to
clarify the point being made

Ordnance Factorics would bc better managcd as PSUs

Delhi Mith Scheme would be better off undcr thc NDDB

Thc Ccntrd lnshtutc of English. at Mysorc would be bcst managcd

if it wcrc an autonomous bod>-

Coming to the organisation of a t>pical Dcpanmcnt of a Cciitral

.Min~su-y.\\c would Iikc to rccomrncnd dclaycring as an antidotc to dcln\ There
should be a general rule that no file would be allowed to travel to more than
three hierarchical levels before a decision is taken. Thc TCS stud! has hintsd

9 23

I30

iit thc solution by dclinking hicrarchical Ic\cls from promoticns

We have
separately approved a modified version of the hierarchy suggested by TCS
as under

Top Executives
Senior Executives
Executives
Supervisory Staff
Supporting Staff
Auxiliary Staff

9 24

.Kt' cuicl
delaywing

Thus there will bc only six levels in the hierarchy. The TCS have
suggcsted that promotions to grades within a level should be for purposcs of
financial benefit, but need not havc any rclationship with a higher decision-making
level in the hierarchy. We have adaptcd thc TCS recommendation to provide for
itx Xssurcd Career Progression Schcme, by which all non-executive cadres will
receivc two financial upgradations on a tim-bound basis while executives will
bcnefit frqm three such financial upgradations. The ACP has been designed to
del ink hierarchy from financial upgradations, and should therefore help in
delayering of the Governmental set up.

ImljumpLig

25
Another method of quick disposal, which is quite rclatcd to
delaying, is known as level jumping. Here there is conscious attempt to bypass
runes in the hierarchy. As early as September, 1968 the Administrative Reforms
Commission recommended that there should be only two levels cif consideration
and decision bebw the Minster viz. (i) Undcr Secretary/ Deputy Secretary and (ii)
Joint Secre!ary/Additional SecretaqVSecretary. This observation led to
.iniplementat.ionof a scheme of dircct submission of cases by senior Assistaii!~to
Branch Officers in 1974. In 1978, thc schcmc got a push when it was said that 3
case should either be seen by an Undcr S c c r z t q or a Deputy Secretat)ilDirczto:
but.not b,.both. The cOncept of Icvcl jumping, though known in Governierit, has
not been effectively implemented so far. What is required% a firni iuideline
that at the executive level, the third level should be the last, 'where a decision
i s taken.

Desk Oflcer

9 26
-4major piece of organisational restructuring \\as the enunciation
of the Dcsk O f k e r concept. Thc attcmpt herc was to convcrt thc Centrid
Secretariat into an officer-oricntcd system. The Dcsk Officer systcm was
introduced in Jlmuary, 1973 in sclcctcd wings of Ministries wherc at Icast 4014 of
thc work related to strategic policy making, planning and problem sol\:ing. Each
desk comprised two officers of the rank of Under Secretary or Section Oficcr or
both. The Section Officer submitted cases dirkctly to the Deputy Secretop, while
Lhc Under Sccretq submitted his filcs dircct to the Joint Secretary. The idca was
to abolish the Section, which has too much of supporting staff in thc shape of
assistants, UDCs, LDCs, Dafthris, Peons ctc. Thc aim was to reduce the numtcr
of levcls by at least two, to reduce the accent on noting and to lay stress on oral
discussibn, to foster greater participation in and commitment to crganisational
goals among offers at the base of the Secretariat structure. Each desk was given
a wil-definedarea of functioning. SOs appointed as Dcsk Officers wcre allowcd
to suthenticatc orders and sanctions in thc namc of the Presidcnt and to dispose
cascs on their o\\n responsibility.

Cortccpt

131

Whyithasnot
hadway

9.27
Currently, there are 1816 Sections and 427 Desks in the
Govemmcnt of India. The Desk Officcf system has not made much headway due
to the following reasons :

Section Oficcrs appointed as Desk Officers got all the

responsibility but without much monetary incentive. They were
allowed a special pay of Rs.150/- p.m., which proved insufficient
to motivate them.
The staff unions saw the Desk Officer system as .in attempt tc*
rcduce the dependence of the Secretariaton the supporting staff like
assistants, UDCs, LDCs etc. whosc numbers arc very iarge They
asserted their position in the JCM and forced the Government to
slow down the implementation of the new system
Therc was just one desk attache or P.A. .attached to the desk, with
the rcsult that no memory could bc built up, as in the case of the
section. The working of a desk got disrupted cvcn by the
procceding of one of its members or1 leave.
OWercp"ceP'

It is our considered view that no restructuring of the

Sesretariat can go very far unless the Desk Officer systern is reintroduced in
a highly effective manner. We propose to m o v e the dcfects in the earlier system
by-adopting the follcnving strategy :
The Dcsk officer should be a separate and disiinct post, not a mere
honorific for a Section Officer:with a pittance as special pay. That
is why we are suggesting that 25% of the posts of Section
Officers be converted into Desk Officers in a higher prerevised scak of Rs.2500-4000.
The percentage of 25% should gradually be increased to an
optimum led, so that the bulk of the work, baring that pertaining
to housekeeping and routine administration, is finally dme in the
desks and not in the sections.
Each Desk should contain two officers and two Executive
Assistants. With a numerical strength of four, the absence of one
or two members will not lead i~ = 4 l a p s e of Lc Desk.

Ad~n'concep'

The next step that is necessary to resmcturc the supporting staff

in the Central Secretariat is to create a multi-skilled position called Executive
Assistant. Hc should replace the present posts of Assistant, UDC, LDC, PA and
Stenographer. The qualificationsprescribed for this functionary should include
a)
b)
c)

Traitiing to
EXccUtlVC

Assistants

graduation in any discipline

the qualificationspresently prescribed for a stenographer
ability to work on computers

9.30
The training imparted to an Esccutive Assistant should bc such as
to enable him to discharged the skills of noting, drafting, filing, stenography,
typing, public relations, receiving telephone calls and visitors and s o on. The

I32

m a is to haw a multi-shillcd cmploycc capablc of pcrforming all the tasks

requircd for a conipctcnt secrctaq in organisations othcr than thc Govcmment.
\/iclrisA~Il~ng
in
Group 11'

(?(lire.nstcnis

9 31

Wc ham to inject thc concept of multi-shiling at the G r ~ 'y5 revel

too. Hcrc we may finally arrive at the ideal worker who may be called an
Office Attendant and can really attend to all the auxiliary tasks in an ofice.
But in thc short nin t i c arc suggcsting a rationalisation into four occupational
goups - office attendants. scciirdy attendants, cosmctic attcndants and malls
9 32

There IS a whole area of ofice systems, about which h c TCS

study has thro;\n up a number of ideas. Restructuring of office systcms has to
make the office more efficient and effective. This can be done by .

reducing unncccssary movemcnt of filcs

reducing the number of files with various officers at anv given time
prcventiiig \+.astag of time in locating thc Likes
freeing vfficcrs from routine maintenance of records
c1in:inating repetitive tasks
making thc dak system more efficient ctc.

COORDINATING AGENCIES
i

Planning
Coniniission

9.33
Lastly, we come to the coordinating agencies in the Govcmmcnt.
The most gargantuan of these is fhe Planning Commission. There was probably
some justification fcx its size and range of authority when our objzctive \VBS a
centrally controlled economy on the Soviet pattern. Now that such centralized
planning models have been abandoned even in the country of t h e k birth and
we are moving towards an open, liberalised economy. w e 'have to
considerably reduce the size of the Planning Commission. Japanhas a small
Economic Planning Unit undcr thc Prime Minister's Office. .In OUT case, we can
have the Planning Commission as a separate entity wzh much more r e d u d
functions than at-present. It should be an advisory body performing an idea
generating role and providing alternatives before the national economy in a fast
changing and technology-driven world.
9.34
The Department of Programme Implementation also had a
coordinating and nionitorlng role at one time. Somewhcrc along the way, it has lost
its mqndatc It should be abolished.

Prime Minister's OCfice has emerged as a coordinating

9 35
The
officc of sorts It may be of advantage to have a less visible role for it.

9.36
The Cabinet Secretariat is officially charged ivith the task of
coordination and is geared for it. This position should bc recognised and the
Cabinet Secretary charged with the responsibility for ensuring coordination
at the bureaucratic level. There may be nced for somc anicndnient in the Rules
of Busincss to providc for certain matters to be resolvcd at the level of Secretaries
through the intcncntion of the Cabinet Secrctary, and at the level of Ministers
h u g h the intencntion of the Prime Minister. This will impart the necessary cdge
to both the offices, in kccping a k p on the governmental mkhinery, so that all

133

actions of Governmen: are secn to move in the same general dircction and in
mutual harmony.

CONCLUSION

9.37
We have providcd certain broad directions 011 the restructuring of
the Central Secretariat. Similar solutions uill also appl?. to attached and
suborhnate offices. It is our f e n a t hope that organisationid restructuring of thc
Governmental machinen. would Icad to a more cffcctive. iiiorc efficient and a
service-orientcd set-up.

:\nnese

- 9. I

\IERGER OF DEP.-lRT\IE\ 1.h 13 THE CENTR.ALCOVt~KS:%IER'T

S.SO DEP.-lRTMEKT(s) TO BE
SIEKGED

Department
Rcfornis

of

Adniiiiistrati\c

:M1N ISTRY/DE PA RTM E N l I N W I4 I CH

-roBE MERGED
Cabinet Secretariat

Department of Animal Husbandp.

and Fisheries

Department of hgriculturc and Cooperation ( to

bc renamed as Department ol.i\griculture )

Departments of Jamniu and iinshniir

Affairs, Official languages and IntcrState Council

Minist? of Homc Affairs

-I.

Department of Consumer .*ffairs

Department of Civil Supplies and Public

Distribution

'5.

Department of Fertilizers

Department of Csemicals and Pctrocricmicals

0.

Departments of Famil!. Wclfare;

I n l a n SysZmn, of hkdicinc and
Homcopiilhy

Department of Health

Departnicnts of lndustrinl I'olic> and

Promotion. !ndustrial Dci c!olinicn:.
Public Entcrprises. Hca\-\ !cdLiSti>
Small Scale industries A g o mi
Rural Industrics and \linistn of
Te\ti Ics

To be merged into a nc\v si:ig!c department called

Dcpartment of Indus!rial Dci clopiiient

Dspartnicnts of Culturc. Youth

A ffairs and Sports. \Voincii and
Child Dcvclopmcnt

Department of Educatio;i

Dcpartnicnts of Food Procurcmcnt

and Distribution. Ftwd P:occssing
Industries

Departnient of Food

I0

I!

135

i2.

~cpartmenlor urban E m p i o p t
and Povexty Alleviation

Department or usba D c v e l o p ~ t

13.

Department of Statistics

Department o t Planning

14.

Anticorruption Wing of the C.B.I.

Central Vigilance Commission

I36

10

Inhorhrcttas

10.1
Today,the governmentoffice is sccn as a dusty,moth-eaten, h g y ,
papa-infestcd hovel chod<ful ofbabus, which is feudal in its atlook, hiefardtiical
in
antediluvian in its p d u r c s , dilatory in examination of issues and
Santivcin its ckalmgs with customers. Dcspite bang one of the largest ;Novidtrs
ofsuvica,thae is a axnplete i a c of
~ customcr orientation in various gavernmcnt
.,the common man v i m the govemmcnt functionaries
as exploiters m a c i l i t a t o r s or pmvidcrs. The reality has been changed
smcwhat on aocount of various measures taken by the government in the recent
past. However, the process of change has been tardy and much more reeds to be
done to improvethe existing work methods and work environment in government

Offrccs.
Three ypes 01
OfiClS

7ftc yresenf
scsmrio

10.2

Government offices can broadly be divided into three categories :

Those incharge of - planning and policy formulation; monitoring and control; and
operations. The work methods and environment in all these catcpries of
government offices needs to be improved, albeit in different wvays
10.3
While office procedure manuals detailing the procedures to be
followed for performing any \\-ark and guidelines enumeratiag specific space and
facilities to be given to stafYofficersof dfferent levels do exist in the go\fernment,
these gurdelinesare observed more in the breach. The elaborate ofice systems add
procedures being observed presently generate unnecessary file work, reports and
returns. F i b system in most of the offices is antiquated. Proper accommodation
is also not available in most offices and while senior officers do have separate
mdividual foams, the Musually sits in cramped conditions. The furniture is very
old and in poor condition, and not available in adequate.quantity. Sections where
the staff sit are usually noisy, under-illuminated and poorly ventilated. Many
bddings housing governmentoff~icesare very poorly maintained and lack in basic
amenities like safe drinking water and clean toilets. The conditions inservicx
departments of the govemmcnt, which provide an interface with the general public,
are the worst, with customers having to suffer the lackadaisicai attitude of
functionaries coupled with physical discomforts like lack of proper sitting space.

137

Comparative
projle

10.4
W e c w t state of ~vocI<methods and work environment in most
of the State Govanments is similar to that existing in Central Government, public
sector mdemkln
. gs have effectedcertain changes in this field. Most public sector
offices today have an open layout h e r e i n modular partitions and modular office
units are extensively used. In the offices of the Reserve Bank of India, such an
open layout is being used where grade 'A' and ' B officers sit in the open space
along with the staff.

Ins~ructional
experience

10.5
In most of the countries where large scale administrative reforms
were effeaed, proper attention was paid towards establishment of streamlined work
methods and a conduciv:: work environment for the staff. In Malaysia, the open
office concept heralded closer supenision, congenial working atmosphere and
effectice communication and interaction. In the United Kingdom, the individual
departments were given flexibility to tailor their own systems of work methods
\ d u n the general fiamewvork. In New Zealand, the Chief Executives were given
complete m n t d over establishment of appropriate work methods and environment
so as to deliver the agreed outpuis at the contracted price to the concerned Minister.
As would be clear from the experience of other cou~.trieswhich have been
successful in implementing the administrative reforms, proper werk methods and
a good work envirorment are inherent constituents of such reforms and no
organisation can hope to tje efficient and effective without proper emphasis on
these aspects.

Consulrciwy
Studies

10.6
In the Commission's sponsored consultancy studies
on
"Resuucturing the Government Office", lndian Institute of Technology (IIT) and
Tab Consultancy Services (TCS) have in their reports, commented on the general
state of work methods and work environment in the government offices.
10.7
Both the organisations have found the existing level of amenities
and facilities in government offices inadequate and the prevailihg procedures for
file movemat, dak disposal and filing cumbersome and time-consuming. TCS has
proposed a new system of filing and file movement wherein creation of "File
Libraries" containing all the section-related files has been suggested. Under this
system-tkconcerned official can call for the relevant files, as and khen reqiii:ed,
by sending a requisition to the library. The official would only keep the file with
himself in case he is still processing it at the end of the day. In all other cases, the
file would be retumed to the section library. The Section File Library will keep all
the current files, with non-current files being sent to a Central File Library for
purposes of record. File retrjeval and subsequent return to the Central Library
would be through the Section Library. The concerned official would submit a file
rcquisition form to the Sectional Library lncharge who would then procure the file
from the Central Library. Apart from the filing system, both these studies have
also suggested changes in the work environment wherein an open centrally air
conditioned ofice for seating of all non-executive staff, with junior esecutives
being provided shared cabins and individual cabins being limited to only scnior
csecutives has been suggested. Other measures like use of modular furniture.
pcrmanent and semi-permanent partitioning and diversion of area above file
cabinets for storage shelves h a w also bccn rccommendcd.

0UR RECOMMENDATIONS
Reducing Ihe
paper work

10.8
Paper \vork in governmentoflies should be reduced by abolishing
all unnecessary reports and returns, reducing the number of circulars.
increased use of computers,etc.

Sveamliwd file

10.9
The existing system cf file movement needs to be streamlined.
Files may be replaced by floppies, queries and letters by phone calls, fax
messages and electronic mail. Officers may be given the freedom to destroy all
useless paper immediatelyon nOtipt. These devices not only result in speedier file
movcment and decision-making, but lead to a more efficient functioning of the
off1cc.

niovement

10.10
There is a need for greater inter-ministerial and interdepartmental co-ordination. Instead of moving files for every case, discussions
and dccisions should be issuewise with individual matters being finalised within
the concerned department/ministry in the light of general decisions taken interministerially. Unnecessary and irrelevant questions should not be raised. All
points needing clarification should be raised only once.
10.11

Reorgunising SIL:
and IllSU

Staff InspectTx '!hit (SIU) and Internal Works Study Units

(IWSU) should be re-org!nised in terms of their style of functioning, as presently
these units follow thumb rules without any analysis of actual situations. At times,
they also lack expertis: on the subject matter undcr review. Instead of having such
units which operate iIoni outside, efforts should be made to develo? in-house
niechanisms like "quality circles" to constantly review their own working and
suggest innovations and improvements. Often S!Us and IWSUs are not welcome
in most of the organisations as t h q are perceived to be instruments for downsizing
the staff. The proposed system 6om within would develop space for creativity and
build confidence among the participants that any decision taken wvould be in the
o\.erall interest of the organisation as well as the individuals by improving their
effEtkeness. productivity and also the rewards. Apart from SIU, the Government
should also make increasing use of outside nianagcment consultants to streamline
the Govcmment machinery.

Reducivg the
supervisory levels

10.12

The number of supervisory levels should be curtailed with

individual oficers being given smaller charges with complete autonomy so
that they are fully accountable for any lapse. Simultaneously, multiplicity of
checks in the form of Lqternal audit, technical audit, external audit etc. should be
replaced by a single asncy for effecting suitable checks.

Service

10.13
In order to minimise the differences in the qualiiy of services being
providcd, there is a need for laying down strict guidelines regarding
accountability norms and standards for government servants, to be strictl!.
adhered to wtule providmg the services. The people delivering the services and the
physiqil environment where h s e services are delivered are crucial. This has been
one of the most neglected areas in the service departments of the government. Of
late, a few departments have made some efforts to improve the physical
environment of such places but there is immediate need to make them cleaner,
aesthetically pleasant and more congenial.

dePormenh

1.39

Traineg

10.I4
The'public ScrYItlts who have an interface with the people should
be given intensive training in behaviourial science, so that they are seen as
helping hands with the smiling face rather than as exploiters.

Common ~ p i s t

10.15
All the available typists in an office should be placed in a
common typist pool. Any official requiring typing assistance may utilise the
services of any typist of this pool. We should depart from the Drevailing practise
of giving individual typists to officers.

Poor

Herding an
oficer orienlation

10.I6
All government work has to be made officer-oriented. Matters
may be considered and disposed of only at officer level and full a u h r i t y must be
delegated to each officer.
10.I7
Work environment includes oflicc layout and furniture, office decor
and amenities. We have considered all the three aspects of work environment
separately.
10.18
Office layout concerns the arrangement of equipment within the
available floor space. Presently most of the government ofices have a number of
private rooms. Such rooms are given to employees on account of their position of
prestige or because the work needs a higher level of concentration or is of a
confidential nature. The concept of private rooms is now changing and the image
of prestige built on separate rooms has to be abandoned because they hamper close
supervision of the subordinate staff,occupy more floor spacc and are generally
more cxpensive to build and maintain. Accordingly, efforts should be made to
design offices with large open areas where all the staff/juilior level executives
(up to the rank of Under Secretary) should sit. For limited privacy, partial
modular partitions can be provided. Adequate lighting, ventilation 'and acoustical
sound proofing should be provided. Modular furniture should be used and the area
above file cabinets should be converted h.tostorage shelves. Mobile racks should
be used for storing all files in a section. The personal assistants should not be
given private rooms but be placed in foyers outside executive offices. While middle
and top executives may be given private rooms, the same should be constructed by
using movable F t i o n s so as to provide flexibility for any future changes. Proper
area should be provided for visitors and reception.

OficeDecor

10.I9
Office decor gives a pleasing appearance to the office, thereby
reducing the boredom of sit& in one ofice for years. Decor also helps to
unprove the imagc of an organisation. Most of the government offices are found
to be wanting in this area.
As a short-term measure, different
ministries/departments may initiate steps for ensuring better ventilation, lighting,
air conditioning, sound-proofingthrough provision of carpets, proper maintenance
of ofice equipment and furniture, propcr colour scheme, use of potted plants, wall
clocks, curtains, wall paintings, ctc. Long-term measures can include provision of
piped muidart galleries in the cotriddreception area, utilisation of space on the
ground floor .for small museums @laying articles relating to thc historical
background of the particular department, etc.
10.20
Provision of basic amenities is a necessity. as thcir abscncc can
spread dssatlsfactlon amongst employees and customcrs We havc observed that
most of the g,ovemnicnl offices at present lack propcr basic amenities Provisions
have to be made in cven- government onice for providing drinkins water with

\taler coolers. clcan toilets. vcndiiig machines for tea and colrce and a small
recreation room'libriq Governincnt should also consider taking concrete steps
lor providing facilities Irkc creche. ladies' common room, g)mnasium, sports
fixilltics IS \\ell ;IS dcpmm!d storcs well stocked in items of daily consumption

in !]I. large officcs

l-.'trsuritcg
I O I ~ / ~ ~ ucros.y
~ I ! Y

ofices

10.2 I
We view \nth concern the tendency of vocal and powerful officers
to gct morc spacc and mcnibes for their personal and functionally related staff.

The government should take adequate measures and form proper guidelines to
ensure that uniformity is maintained in provision of these facilities to different
offices.

141

Sred 10 improve
producfivih,

11.1
One of thc major thrust arcas in th~sReport is the need to improve
productivity of Govemmcnt employees. Wc h v c kept this at the forefront of our
mind and man of our recommendations have bccn madc with the sole purpose of
raising productiiih to an optimal levcl. In this chaptcr. we nil1 give a few
examples of such recommendations.

Three major ways

11.2
improved .

There are three major ways in which productivih is sought to be

a)

By measures that ensure that employees have more time available

for work

b)

By measures that motivate employees to work more

c)

By measures that improve the producrivity of employees through

organisational restructuring, use of information technology etc.

MAKING MORE TIME AVAILABLE

11.3
Or,e of the most obvious ways in which employees can be made
more productive is by making more time availablc for work.
Increasing the
number of
working days

The first measure is increasing the number of days available

for work in a year. C m n t h . there arc too many holidays in Government and we
follow a five day week in a number of Governmcnt offices. Further, there is a
to declare a holiday on very flimsy grounds lilc thc dcath of a VIP or thc
tenbirth centenan of some departed leader and so on

Six-duy week

11.5
We have recommended the promulgation of the six-day week
instcad 01 thc five-day week This singlc stcp imrncdirltcl\.increascs the number
of working days by 40. The number of gazetted holidays have been reduced

11.4

from 17 to 3. This gives another 14 days. We are suggesting that other holidays
should be declared only on the death of an incumbent President o r Prime
blinister and on no other death. This \\ill also increase the n h k r of working
days by at least 6 days in a year. Thus we have been able to add a total of 60
days or two months to the number of workihg days in a year.
Encadmierttqf

leave

Time clock

II

We have allowed employees to encash 60 days of u r n c d leave

their service period. Assuming a total service period of about 30 years, such
cncashment would also increase the number of working days for an employee by
an average of two days in a year.
In

11 7

In ordar to ensure punctuality in attendance, we have suggested

the introduction of the time punching system, so that each employee right up to
Cabinet Secretary has to punch in his time of arrival and departure. Such a system
has worked wonders in Malaysia and it ccmdo so in India too.

Tramport
Allowance

I1 8

Punctuality in Government ofices becomes a casualty also

because employees cannot a f f d to travel from residence to office in their own
vehicles, be these can, mom bicycles, scooters or bicycles. We have
recommended the grant of a modest transport allowance that would permit
most emplojjees to meet at least some part of the heavy expenditure they YC
compelled to make on commuting to office It is hoped that this would also
promote punctuality.

Srrvurg o/tea on
h e table

11 9
One major irritant in Government offices is the tendency of
employees to use the taking of :ea as an excuse to absent themselves from rhcir
scats for as long as half an hour at a time. We have recommended arrangements
that would ensure the service of tea, coffee, cold drinks and snacks on the
table, so that DO interruption to the work schedule takes place.

Changing t i m i t i p
of service
insti~tlons

1 1.10

Another important recommendation is-thatGovernment should

change the timings of hospitals and dispensaries, banks; shopping centres clc.
so that. these are open in the mornings and evenings when Government emplogxs
(and all employees for that matter) are free. This can be done either by introducing
a shift system and bifurcating the present staff, or through a sp!it duty system in
which case \itcan pay a split duty allowance to dliicers and staff. The idea is that
Government employees should not have to leave office and transact the business
of taking their children to a doctor, shopping or encashing a cheque, on official
time.

11.11
Having brought the emp'oyee to the office in time, having
prevented him from getting late in distractions like tea, bank transactions or
shopping. and having increased the number of working days is only part of t k
battle. How is the employee to be encouraged to work more ?
Output-based
budgelitig

1 1.12
We are suggesting budgeting and financial reforms that will
convert our budgets to documents outlining the outputs and outcomes of
departmental work instead of being obsessed with inputs. If implemented in thc
right spirit, it will bring about management by objectives, with every employ3
143

lwrwvlgexactly what his duties art,what k h d of output is expected from him and
putting in his best to meet the laid down targets.
11.13
All incentive schemes have to be productivity-linked. Bonus
is supposed to be so. Unfortunately, ma@ of the bonus schcnies c m e d y in
operation are linked to productmn and not to productiviQ We have suggested
certain dfications SO that there is no automatic increase in the quantum of bonus
menly by emu. of time, but there is a direct link established between productivity
and bonus. We are also suggesting the conversion of ad hoc bonus schemes
into productivity-linked bonus schemes.
Perjmlurce
appraisal

I I 14
Performance appraisal is another area of reform If we
develop better methods of appraisal, which are linked to actual perforqance in
qiianUtativcand qualitativeterms, and link promotion and other incentives to such
objectivc appraisal, we would be creating the best motivation for higher
productivity
11.15
As part of the appraisal system. \e arc suggestiiig a ruthless
weeding out of the incompetent and corrupt elements at the time of promotion
to the Senior Administrative Grade. If this is linked to performance, it will haye

very salutav results.

Perjbnmmce

Related
Increment

11.16
We are also introducing the Performance Related Increment
scheme. undcr which an employeesperformanu during the previous year would
dcterniinc whether he remains where hc is, cams an increment or is given two
increments instcad of one. This is a precursar to Performance Related Pay, whch
can be introduced at a later stage.
11.17
Group ITemployees currently do not face an annual perfmance
appraisal. This is b u s e they had no promotion avenues so far. Having
introduced the four-grade structure for these employees, we have also
brought the ACR back. There will thus be increased pressure on them to
perform.
11 18
In the case of cutain departments we have made specific
suggestions for improving productivity For example, 25% of runnmg
allowance has been linked to the punctual running of trains Similarly, if a pension
payment order is delayed due to the negligence of somcone in Government, he will
have to pay interest to the affected employec for the period of delay For the
tdephone department, we have suggested a colourcd points systems, with red for
bad uork and green for good work, the points beins added eve? month to mi\ c
at a numerical assessment of the productivity of telephone mechanics There is
also a recommendahon for customer opinion surveys to ascertain the views of
customers of services provided by the Government

OTHER MEASURES FOR INCREASING PRODUCTIVITY

11.19
There are other measures-that havc a v c n direct and positive
impact on productivity. Somcofthese aic briefly mentioned in the succeeding
paragraphs

144

Orgmirsntrotrd
rt,rhrrc/ttrinK

RedwittK

trrmmbc.rs

St?I#p/!fiCltfl/Jtl

1 1 20
Organisational restructuring includes a number of steps like
amalgamation of Ministrics and dcpartmcnts, delegation of administrativc and
financial powers,-delaycring,led-jumping, the introduction of the Desk OlEcer
q'stcm. functional multi-skilling and crcation of new c a w like thosc of Esecutive
Assistants and Office Attendants ctc. All these will lead to greater efficiency and
thus to higher productivie.
11.21
There am also numerous suggestions for.reduang the numbers
in Government employment through privatisation, contracting out of services,
transfer of functions, schemes and organisations to the State Governments, or their
conversion into cooperative institutions, PSUs and autonomous bodies, revision of
norms etc. Many of these recommendations will lead to higher productivity per
cmployee from among those who arc left in the Government.

procriltrrer

11.22
Office procedurcs prescribed in government organisations at
present are very complex,cumbersorneand time consuming. Such procedures often
lead to a greater emphasis on observation of the prescribed norms rather than
maintaining productivity. Procedures in all government offices need to be
simplified and made less tedious and time consuming.

..tccottmhtlrF

1 1.23
A shift has to be made towards accountability in the positive
sense wherein a greater emphasis will be laid on achieving the end result rather
than a mere adherance to rules and procedures. This will also provide government
employees with the necessary impetus to try out various innovative approaches for
increasing productivity.

.4 ufomafiotr

11.24
Thm there IS thc whole field of office automation, reduction of
papemark, computerisation. introduction of information technolo9 etc which IS
likely to cause a quantum jump in the productivity of Central Government
cmployees.

12.1
The main objective of administrative rcfornis is to increase thc
efficicncy 'and cffectiveness of the government by increasing productivity. In this
scenario, automation and computerisationplay an important role, as obsolete office
equipment not only leads to a wastage of time on account of difficulty in handling
but also does not give the required quality of output. Automation is also important
for installing modem communication systcms in offices, which can present
generation of a lot of unnecessary file movement and useless paperwork.

Automation
Exisring Scenario

12.2
The existing level of automation in govemment offices is quite
inadequate and haphazard. Government offices are still continuing with the
tradtional machines llke manual typewTiters. cyclostyling machines, etc. which do
not give the required quality of output. Most of thc officeequiprrmt is outdated
and poorly maintained. The telecommunication facilities are insuficient or absent
in most bf the offices. Furthermore,the office equipment is provided on the basis
of designation of the person. The best and most expensive equipment like personal
computer is kept in the room of the senior most officer who may either have no
knoivledge ofits operation, or inclination or tirii? 10 iisc it. In x j case, one singlc
pcrson ma!. not be able to utilise the equipmcnt to its capacit).. Thus there is a need
to split thc equipment into Individual and Pooled equipment.

Generatimr of

12.3
Presently government officcs gcncrate a lot of useless paperwork
in the form of unnecessary reports/returns, cstcndcd filc movement - in many cases
for clarification of some minor query which could have been avoided. tedious
proccdurcs for asposing of dak, q r o p e r filing and thc tendency amongst officials
to,corrcspond only through the medium of the witten ivord even in cases wherc
rcquisitc information could be easily gathcrcd by phonc. pcrsonal interaction ctc.
Such tendencics are a major cause of delay and rcducc the level of efficiency in
govcmment offices

LkeIess
Paperwork in
Ofices

I46

COMPARATIVE POSITION
I . ~ . ?r
~I
:I

ttfrmntrmt it1

other mutttries

12.4
Most of the other countries have realiscd the importance of proper
officeequipment and r c d d papvork in increasing thc cfficiency of government
ofices and initiated several steps in that direction. The developed countries of the
world have had a vety.hghlevel of automation with attendant reduction in useless
paper work, during,thepast 2-3 decades. Currently, the United Kingdom invests
more than 2 billion Pound Sterling a year and eniploys 20,000 staff (despite
reduction in the overall size of the government) to install and o p t e various
information and tclccommunication systems. In Canada a blueprint h e becn
designed to substantially change the way in which technology is implemented
throughout the governmknt. A 'Software Exchange Senice' (SES) has been
opened to promote and facilitate the sharing of go\wnment owned application
software, and related systems between different government organisations at all
levels. The level of automation and technology in developing countries is also
being upgraded continuously. In Bangladesh, computerisation of government
offices has been taken up on a large scale. Alongside 0 and M techniques like
modified personnel manual, standardised job descriptions with MIS are &o being
utdised. -InMalaysia, .go*.~;mmentofices are increasingly being provided gadgets
for image processing, electronic data interchange, work flow automation as an
integral part of the endeavour to help government departments to cany out their
daily operations more efficiently and effectively and with less amount of paper
work.

I
Iicralding
Cmpurerisatiort

RECOMMENDATIONS

12.5
The existing manual system of working should be replaced by
an automated and computerised system. This change should be initiated from
top levels of executives in the government whose commitmenf to the proccss of
change should be total and visible. The various activities bemg taken up for
cornputensation should be pnoritised and activities having a public interface, those
involving a lot of legal complicatims and litigation or those that generate a lot of
.repetitive work should be computerised in the first leg.

12.6
The final objective of automation is the creation of the
paperless office or the almost paperless office. One of the fears expressed by
officers is that there would be no record of who said what and therefore
accountabilih would be diluted. It is now possible to use devices by which it
Government file can be almost replicated on the computer, with sufficient
safeguards to ensure that it would always be possible to fis responsibility for
statements nladc by individual officials. We need to educate officials about these
techniques, so that there are no unfounded fears on this account.
f'ropt*r Truutitty

12 7

I n the new office, the higher lcvcl management will have to be

receptive to adopt new technology. Proper training would therefore be essential
for training the senior officers on both - the skills for operating computers
and the appropriate attitude to implement information technology in the
organisation. Simultaneously, the general staff would also have to be trained
for using the office automation and also to accept technology as a facilitating
147

and supporting system. Sometimes innovktive technology programmes are

initiated u i t h k t informing the einployees and their unions. This leads to rumours
and misunderstandings about the reasons for their introduction. The first
inipression that the employees set is that t b y will'lose thcir jobs due to
computcrisation. Their fears about informatipn technology should be
addressed' properly through meetings and notices. JCM can play an
important role in this respect.
12.8
The introduction of infomation technology would requirc changes
in the systems and procedures. Each system and procedure would have to bc
studied in detail and suitable softwcre and hardware implemented for each
application. Present forms being used in government are cumbersome and not
amenable to being fed in the computers. A11 such forms would need to be
simplified and made both custonier and computer friendly. Need to fill in
multiple forms should be miriimised and ultimately eliminated, once the entire
government machinery is properly networked.

Computers can be used effcctivcly only if a proper and accurate

database is available. Hence a proper database would have to bc dcvclopcd A11
government departments should accordingly initiate compilation of available
information in a proper format which ran be used for building up an
extensive database.
12 9

I 2 10
While initiating computerisation,each ministry and department
should design their system in consultation with expert bodies like NIC so as
to ensure comratibility within the overall system of the government. Thc
dcsign should also take mto actount the present arid future data volumes and must
exmine costs and benefits of various alternatives available. 'This should also be
esknded to all the field organisations as well The over all emphasis should be
to develop a network in the entire government machinery wherein immediate
exchange of data through computers would be facilitated. The system should
also contain hierarchical and functional level based codes so that appropriate
confidentiality of data is maintained.
Other Oficc.
Equipmrnt

12 1 1
Apart from computers, other office equipment which improve
the effectiveness and efficiency of employees should also be used Thcsc
include Electronic T>pewritcrs. Photocopicrs, E-Mail which enablcs thc
tr;uisni~ssionand reception of mail. FAX or tclcv around the globe. microfilm in^
Equipment i\hich makes miniature copies of rccords on film and stores thc film
either on small reels or strip and can bc used h reducing i k number of lilcs.
Scanncr I\ hich can be used to scan letters and text so that the need for typing thc
sicncils is obuated, etc Machncs should also be utllised for enforcing punctualit!
in office through electromc rccordmg of attendance and timing of disposal of C ~ S C S
etc
I' 12
In the \\hole proccss of automation, care should bC takcn to cnsurc
that modern equipment is providcd on the basis of needs Individual equipment
should be provided to a person only if he needs it continuously o r if work
would be hindered or delayed otherwise. This can include equipment lihc
calculator. computer tcrmina! ctc Other equipment which is large and
expensive should be kept in a comnion pool with timings for the use of
individuais and sections decided in advance. Such poolcd cquipiricnt would

include fax, photocopier, telex, DTP facilities, NICNET, computer systems,

franking machines, scanner, papex shredder, etc.. All government ofices shw!:
have a central pod of equipment like telex, fax, photocopiers and word processors
in an easily accessible mom which can be used by various officers to t&e high
quality print-outs for the purpose ofcorrespondence, reports, etc.
Reduction of
paperwork

12.13
There are also several steps which need to be taken in order to
reduce papenwork in Government. Some recommendations in this regard are as
fOllO\~S:

a)

AU forms should be reduced in size and be pared to be barest

minimum onl?,one copy ofthe same should be asked for from the
customer More copies. if needed. s h d d be generated in the
Government ofice

b)

Rcports and returns should be reviewed every three months

All unnecessary repodreturns should be discontinued forth\nth
The penodmty of rcporls/retumsshould be ruthlessly reexamined
to s e whether
~
thar +city
could be made longer If a monthly
return IS converted into a quarterly return, we immediatel\ reduce
paperwork by two-thirds

c)

All officers should be authoriscd to destroy some incoming

papers immediately on receipt.
Sometimes the same
nprcSentaton is received &om six quarters and adds to the volume
. of a file. The five extra copies should be destroyed immediatcl?.on
receipt.

d)

No copy of a letter should be endorsed to any person, unless it

is clearly known that it will be useful to him in some way If
such a ktter is received by anyone who is not concerned \\ ith it, he
should destroy the same immediately on receipt

12.14
Many such methods for reduction of paperwork can be devised,
once m e makes ry, one's mind and trains everyone in Government to drinkin
similar terms.

Dejriirmrt

13.1
The simplest definition of openness is "casy and speedy access to
right information". In the context of government functioning in the present era of
economic liberalisation, ''~penness"means giving everyone the right to have access
to infomation about the varicus decisions takcn by Government and thc reasoning
behind them.

Comparative

13.2
In most of the countries where large scale administrative refarms
have been carried out, emphasis has been laid on libera!ising the extent to which
details of policy, performance and other information about government activities
are made available to the general public. In the U.K.,Citizen's Charter contains'
.specific provisions for promoting increased openness about the reasons for
decisions taken by the Government. In 1988, ceItain changes were effected in the
Official Secrets Act, 1911 to narrow the scope of official information falling within
the ambit of the Act. Besides, a.White Paper guaranteeing a statutory right of
access to personal records held by the government has also been implemented in
April, 1994. Canada has an Access to'hformation Act which giv& all Canadian
Citiiens, as well as people and corporations present in Canada, the right to have
access to federal government fccords that are not of 2 perso.na1 nature. The
government has taken steps to ensure that informatioil about its activities are
broadly available to the people, .with exceptions being limited and narro\vly
defined, and provisions for resolving any disputes over:the application of such
exceptions independently of the government. An Information Commissioner has
been appointed to investigate compl&ts from members of the public arising from
the above-mentioned Act. Government of Malaysia has also takcn various steps
to provide an apen and transparent government in terms of decision-rnaking. These
include publication of reports on public complaints, progress of administrative
efforts undertaken by the gove-ent
etc.

posiiiorr
111 other c-oroitrie~

Recent Trends

13.3
As would be clear from the above, there is a trend worldwide to
have increasing openness in the system of governancc Various factors like
changing socio-economic milieu, increased awareness of thc public about their
rights, the need to have a fully accountable and responsivc administration and
growL?gpublic opinion which views eflorts at secrecy as cnhancing the chances of
abuse of authority by governmmt functionaries, have led to a dcniand for a greater
transparency in govemmental functioning. Hoivcver. complcte openness is

150

neither feasible nor desirable. Accordingly, a balaqced approach to openness

in government functioning has to be devised.
OPENNESS WITH PUBLIC
~

~~

Bdaailced
approach

13.4
All govemments in the world practise studied concealment of
infamation from the people though the nature, degree and extent h e o f varies.
While capitalist and democratic countries have a higher degree of openness vk a
vis authoritarian regimes, nowhere in the world is government functioning totalb
open. The effort is to satisfy public demands as far as is reasonable and
practicable. Transparency also has to be fully compatible with the constitutional
and pdiamentaq system of the country and the cost of sharing information should
be commensurate with the benefit to the public. It may also not bk practicable to
give information about any proposal under consideration while it is yet to be
fhhsed, as this is likely to bring into play several pressure groups with attendmi
increase in corruption. Thus what we need in the country today is a limited
opennkss-in government fuhctioning, which would make available ex post fact0
infoamationabout vasicus, but not all, government decisions to the citizens of this
country. while anything that is detrimental to the interests of the nation, the
security of the state or its commercial, economic and other strategic interests,
may not be made public, nothing should be held back just to subserve the
interests of individual bureaucrats and politicians.

Right to

13.5
Experience of other qounbies shows that we will have to initiate
the process by passing a Right to Information Act, somewhat on the lines of
Canada and the United Kingdom. Adequate safeguards will have to be built into
the legislation to ensure the primacy of the national interests as also the privacy of
the individual citizen. At the same time, an independent authority will have to be
constituted to decide whether a document can be made public or not. In this
context, we recommend the creation of a National rnformation Authority
which may be headed by a retired Supreme Court Judge or a retired Chief
Justice of a High Court. It should also include independent and eminent
persons ss its members. The decision of this authority should be appealable
only in the Apex Court.

Iqfonnation Act
and Setting up
anindependentaut

hority

Dissemiiiation of
~~,/ornrclrrun

white paper and

P==
cammunique

13.6
Public relations wings, which already exists in most of the
government departments, should be converted into Public Relation-cumInformation Wings. Their functions should include dissenrination of
information to citizens on payment of a prescribed fee. People should be able
to inspect Government papers and, if necessary, take photocopies of desired
documents. No extra staff should be employed for this work, as the existing
staff of P.R Wing can take on these duties additionslly. Departments should
also publish information of general interest and keep copies of these in their
libraries for general consumption. They should put information on
computers with linkage to Internet and other global networks.
13.7
Every important government decision involving a shift in
policy should invariably be accompanied by a White Paper in the nature of
an explanatory memorandum. Whenever a government decision brings about
any pecuniary benefit of the value of Rs.100 mm or above to any particular
kdividual, p u p of company, whethcr in form oflicences, tax relief or award of
151

large projects, an elaborate press communique' erplaining the origin of the

issue, factors taken into nccount while arriving at the decision and names of
the particular groups/ individuals which it has benefded, shod$ be released,
within 24 hours of the decision.
Openness in
public dealing

ofices

Curring out
discretion

13.8
A new kind of office struchm, with a counter system, as in the case
of banks, shauld be adopted in all field offices involving public contact. This has
already been uscd with success in the Ahmednagar Experiment wherein the district
office was restructured, demystified and made more open so as to facilitate the
work of the general public. We have to move towards a government office wlUch
gives a elearat time-limit for dqmsing of any rquest of a member of the general
public. An individual, if he so wishes, should be made aware about the exact stage
of his case at any p i n t of time. In such a system, ad -applicant is given a fixed
time-limit, at the time of submission of his application giving the date on
which the final decision on his request would be conveyed. The Passport Office
has already initiated a system, where the status of an application can be ascertained
at any point of time.

13.9
Openness also implies that the reasons for Government decisions
are placed on record in black and white. For this purpose, formulation of criteria
that would be used for decision-making is a must. Accordingly specific rules,
criteria and norms have to be laid down for every activity of the government.
The areas of discretion should be minimised and, in fact, eliminated. There
should be no provision for Ministers, MPs or bureaucrats to dispense favours
like Gedical- college seats, Government accommodation, telephones, gas
agencies, petrol pumps and the like. All such out-of-turn o r discretionary
quotas should be abolished. Wherever discretionary powers have to exist,
these should be exercised by a group of officials with disparate backgrounds.
In such cases, there should always be a 1ecorded decision giving full justification
for the stand taken. These groups should never be headed by ministers.

OPENNESS WITH EMPLOYEES

Tmnspmncy in

appoinbncnls,
promotions clc.

Redress ogainst
s t c p crior:

13.10
Presently, the procedures invoiving personnel management in
government m kept so much under wraps that even government servants
themselves are not aware of them. Many of these activities like policy of trqsfers
and postings, procedure for empanelment and even the list of persons who have
made it to a p a d remains closely guarded secrets. Transparency in dealing with
matters relating to appointments, promotions, placements and personnel
management is essential. We recommend that clearly defined criteria for all
matters concerning promotions, transfers, appointments, etc. of government
employees should be laid down. When a panel is drawn up, it should be
published so that everyone knows where he stands Apart from reducing
frustration amongst government employees, this will obviate the need for fighting
service-relatcd cases in the courts.
13.1 1
Op&ess in governmental functionins has to extend to rcsolution
of disputcs among government savants. In the present hierarchical structure in the
government, a subordinate does not have any avenue to air his grievance against
his immcdiatc superior to anyone. Thc official rulcs provide for representation

152

through proper channel In \\ hich thc first link IS again the neurimniedrate officer
Moreover, m case of a dispute. there is always a-prcdiicction among the top
bureaucrats to go by the statement of the senior officer It would be better if in
such cases, the senior ofticer counsels both parties involved in the dispute to
arrive at a mutually acceptable settlement. If differences still persist, efforts
should be made to delink the two persons involved in the dispute, as they may
both be good people, only temperamentally incompatible
Rrlalions wid1 the

nrrdin

13.12
Openness should not mean indiscreet lcaks about Govcnnnent
actions, all of whose secrets are bandied about in public. In fact, openness should
do away with the very provocation for such leaks. By its very nature, the work of
a government employee is faceless as it invariably flows out of efforts involving
the entire system. The concept of anonymity of the public servant is a good thing
an0 should mtinue. Lately certain public servants have developed a tendency
to acquire a false halo by cultivating the press and giving them friendly leaks.
There i s a need to suppress this tendency. The Conduct Rules.already
provi(le for departmental action in such cases. There is a need to implement
this severely so that no more paper tigers amongst bureaucrats are created
by the media. At the same time, the public relations machinery of different
government dqartments should be trained to give out balanced stories to the
media who should also be piven sufficient opportunity to visit the places
where good work has been done. Instead of issuing drab press notes giving dull
statistics, the media should particularly be apprised of individuals who have been
helped by the system, as hufiiii interest stories always evoke greater attention.

Rejorms in rVew
Zecllnnd

14.1

The presznt trend the world over is towards granting greater

autonomy and delegating more powers at all levels oithe government. Perhaps the
highest level of autonomy and delegation has been effected in New & a h d during
the course of the refornis initiated in the last decade. Most o i the government
activitieshave been either privatised or are being run as State O w e d Enterprises
like private sectq businesses.conformingto commercial objectivzs aione. For the
core' activities that have been retained in Govemnent? Mkisters enter into a
contract v&h the Departniental Chief ExecutivesAcrein the output to be produced
by the department and the price to be paid are specified. The Chief Executive, who
himself is on a contract, has full powers to hire atid fire his staff and to fix their
salaries. All civil serv'ants u e employed on a contract, under which they are
responsible to produce a &rt.aiq number of outputs of specified qudity at a certain
price. In order to achieve such outputs, each manager has complete discretion over
inputs and can prescribe work methods, devise systems. fix salaries, grant
amenities and decide upcn the number of his staff while *enwining within his
overall budget. The pay of the-manager is also dependczt.on his performance.
There are annual reviews and depending on their rzsults his pay can be adjusted
both upwards and dowwards. Budgeting has become totally output-oriented, with
the control of the Treasut). limited only to a fixing of the total size of the
deparkental budgets.

I
E'eusibiliry o/

Ineducing
New Zealand
aiodel in India

AUTONOMY AND DELEGATION - AN APPRAISAL

14.2
While this kind of system may be the ultimate aim for any
government of the future, it is doubtful if the prcsent circumstances are conducive
to its instantaneous implementation in India. Today we have a centralized system

of Govemnmt that is prcrnised on distrust. Whether it is the Ministry of Finance

or the Ministry of Law or the Department of Personne!, they do not tnrst other
individual Ministries to do thc right thing. It is, thercforc, necessary .to refer
everything important to tliesc nodal Ministries. Whakvcr little autonomy the
departmental heads sccm to enjoy notionally is withdravn b\. thc Ministry of
154

Finance under the plllse of econonn,. Most important decisions of any consequence
are taken either by the Cabinet or a Cabinet Committee or the Minister or thc
Committee of Secretaries.

14.3
Delegation of authority is critical to the cutting-down of levels and
the time taken for arriving at a decision. Ony delegation can lead to reduction in
the size of government which is central to the entire process of administrative
reforms. htralised control leads-towastage, as one set of rules cannot 6 equally
applicable to thousands of diverse situations which obtain in a country of India's
size and complexity. There is thus no doubt that delegation is the key to faster
decision-making.

RECOMMENDATIONS
L)rcrti:ralIsatioti
of Fitiancid
Powrrs

Presently,the most excessivecentralisation of powers is seen in the

matt9,of finance. All ministries have a Fin+cial Advisor (F.A.) who is
responsibleboth to the ndrmnistrative ministry and the finance ministry. The F.A.
assists the administrative Secretary in respect of the powers delegated to the
ministry and the Secretary can, in theory, overrule !iis F.A. In practice, however,
stringent restrictionshave been piiced in respect of exercise of delegated powers.
Powers for creation of non-plan posts, reappropriation from plan to non-plan
expenhture, expenditure on telephones, travelling allowance, entertainment,
overtimeetc.have been seyerely curtailed q withdrawn. This kind of total control
is stifling and often acts as a barrier in achieving the allotted targets and goals.
Accordingly, there is a need for the finance ministry to allow other ministria
greater freedom and flexibility in financial matters. If would be more
appropriate if the finance ministry approves the overall budget for different
ministries and thereafter allows them sufficient flexibility to manage the
financial resources in the most productive manner irrespective of the various
heads under which it is spent. Simultaneously, all t%e powers withdrawn
from the ministries during the last few years in the name of economy
measures should be restored, with reiteration of the government's desire to
effect maximum economy. The dual control over the F A . should also be
removed and they should work under the control of the administrative
Secretaries- a s real financial "advisors" in respect of delegated financial
powers.

Rolr c$.bfinrstq

14.5
The Ministry of Personnel, Public Grievances and Pensions is the
nodal ministry dealing with policy in respect of personnel matters. Due to common
criteria prescribed by this ministr), there is a great deal of uniformity in the civil
services, which is not always conducive to effective management of the functions
attached to diverse departments. There is need for greater freedom in personnel
matters within the existing system subject to the specified budget on pay and
allowances. Individual departments should be allowed to determine the
structure of their cadres within the existing pay scales without the
intervention of the Ministries of Finance and Personnel. They should also be
authorised to work out incentives applicable to their employees, within the
parameters of general guidelines, like increments, lump-sum payments,
productivity-linked bonus, etc.. The departments should also enjoy greater
freedom in res'pect of personnel who are specific to such departments and are
not to be found in other ministries. In such a scenario, the role of Ministry of

of Personnrl.
Pllhltc
Grimraticesotid
Pr?lslwls

14.4

155

Personnel would be confined to laymg down general policy guidelines in respect of

matters like recruitment, promotion, deputation etc.
Appointments
Commitree ojrhe
Cabinel

Hole of
Conmfirree

OI

Secretaries

Ro!e of
Srcrc~tarte.t

14.6
The approval of the Appointments Committee of the Cabinet
should be sought only in respect of appointments of Joint Secretaries and
above in the secretariat and appointments to posts carrying a pay scale
equivalent to that of Additional Secretaries and above in the field offices.

14.7
Presently there is a tendency to refer almost all important matters
to the 'Committee of Secretaries'. This leads to avoidable delays and dilution df
responsibilities. Individual cases should not be referred to the Committee of
Secretaries. Only broader issues having wider. ramifications should be taken
up a t their level. All administrative Secretaries should be delegated the
complete and final authority for approval of projects, programmes, schemes,
procedures etc. upto any limit within the overall budget. They will iio doubt
seek the advice of all those concerned before arriving at the final decision. This
would ensure that the ministry responsible for a given task also has the necessary
pomrers to achieve it.
14.8
All administrative Secretaries should be given maximum
functional freedom and financial flexibility as in the case of Chief Executives
in New Zealand. Simultaneously, they should also be asked to commit
themselves to targets aiid action plans for their entire tenure and held
accountable for the same.

Ijeieptron as a
prelude 10
Delayring

'f4 9

An armospherc. 01

14.10
An atmosphere of trust bs to be created throughout the
administrative system, so that each rung of the Government feels motivated and
responsible for the results in specific are+ of responsibility Power &
responsibility should go together. Only in such,a system can decisions be taken
quickly and efficiently.

trust

As a prelude to reduction of levels in the ministries, the posts

of Director, Deputy Secretary and Under Secretary should be treated as one

group and that of Joint Secretary, Additional Secretary and Secretary as
another. An officer belonging to the lower group should submit the files
directly to an otficer of the higher group who should be delegated the
nswqsuypoSvers to take a decision on such matters. This will ensure that no
file is dealt by more than two executives&fore a final decision is arrived at.

Grievances

15 I
It is inevitable that the large size of the Government machinery and
the plethora of services provided by it should generate grievances. Thesc can bc
arosdly divided into two types - grievances of customers and gnevances or
employees

Wirhdrawal of
Gowmmen:

15.2
One major policy thrust that can reduce both is the withdrawal of
Government from arcas that can be transferred to the corporateor private sector.
This option has to be pursutd vigorously.

Need fm effec:iw
reahsal

But for areas that remain with the Govcmncnt, an efficient

gr~evmceredressal machimy has to be an integral part of civil service reforms.
It has to be effective, speedy, objective, readily accessible and casy to operate. It
has also to be well publicised so that aggrieved parties arc a m of not only the
available recourse but also the f m for lodging the complaint.
15 3

EXPERIENCE OF OTHER CCOUNTRIES

Malaysia

15.4
Other countries have tried to build effective grievance redressal
mechanisms. In Malaysia, a Public Complaints Bureau has baa crated in the
Prime Minister's Office. It has the status of an independent organisation to look
into complaints against public agencies. It is the main channel for the public to
f o n d their grievllnccs against public servants. Several steps have been tAen to
inform the public about their right of redrcss.

Liriled Kingdom

15.5
1 In the U.K., the Cit izcns' Charler ( 1991) introduced mechanisms
L
for registering and redressing complaints made by customers. Govcmmcnt took
stcps to publicize the proccduPes for lodging complaints. A Complaint Task Force
was created for setting up improved complaints %stems. A telcphoiir: hclplinc
called "charterlinc" was installed to help people to find out more about public

services as also Wtolodge complaints about *an. A post of Ombudsman was

created to deal with complaints of alleged injustice caused by Governments
maladministration. If other attempts at redress failed, individuals could approach
the Ombudsman through their Members of Parliament.
Canadp

I5 6
A Department of Public Works and Cmvemment Services was
opened in Canada, in order to permit members of the public to lodge formal and
informal complaints. The Canadian International Trade Tribunal was appointed
in order to receive and decide upon complaints in respect of award of Government
contracts to private parties \
1

CONSULTANTS ADVICE
Tata Consdtancy Servicts have suggestedthat all public grievances
should be received and acknowledged only at one point. The Departnient of Public
Gnevances should function as a nodal department and forward thc csmplaints to
the respectivedepartmats for necessary action in a time-bound manner. Creahon
of a grievance committee for handling grievances of employees has also been
suggested.
15.7

EXISTING SYSTEM
Department of
Pacbiic
Grievances

15.8
As in everytiung else, we already have a public grievance redressal
machnery in place. At the apex is the Deqartmcnt of Public Grievances, under the
charge of a full-fledged Secretary who reports directly to Cabinet Secretary. It
registers all public grievances received e i k firom individuals or from the
newspapers and forwards the same to the concerned Ministries. Action taken
thereon is monitoredclosely.

Special Celh

15.9

Iiiditiduals can also file their grievances with the concerned

Ministry or Department directly. Most Ministries have special cells under senior
officers for looking into such grievances. People also request their public
representatives to intercede for them with the Ministers or senior officials.

Defects in present

15.10
The troublc with the pnscnt system is that it is not worked properly,
due to the following reasons :

Tslem

a)

The concept of customer orientation is almost non-existent

b)

Government oircials an not projxrly trained in effective grievance

redressal

c)

There is no pitipainted responsibility for each task

d)

Responsibility for non-rcdressal of a grievancc is not fixed there

and then

e)

No reward or punishment system exists

15% :

hue is no s y s k a t i c attempt to assess the custofflers' opinions

g)

Multi-tier institutional mechanisms have not been developed

h)

There is no institution outside the departmental machinery whlch

could effectively intervene on behalf of the aggrieved person.

OUR RECOMMENDATIONS
15.11
An effstive grievance redressal machinery has to be put in place,
so that each of the a b v e defets is taken care of. Our recommendations try to

achieve this objective.

1j

Citizens' Chorter

There hps to be a Citizens' Charter, defining the rights of the

customers of Government schemes and services. Each department has to
publish its own Charter, defining its standards of performance, fixing time limits.
setting out the grievance redressal mechanisms, stating what redress would bc
made. For example, the Department af Telecommunications will have to state how
much time it will take to set a.telephone in order. Suppose it stipulates 24 hours.
If it fails to rectifL a defect within that period, it will have to pay damages to the
subscriber. Each Government employee has to understand that he is a public
servant in every sense of the term and he has to serve the public. That is the only
reason for his existence. The idea that Government employees dispense fa\.ours
to members of the public has to be buried once for all.

A ttirudtnal
chonge

15.13
Officers have to be trained in effectbe grievance redressal.
for this. Each oficer has to maintain an open door
There am somc basicprincip11~
policy. His doors have to be dways open to the members of the public, to listen
to their gkvances. Disposal of papwork ha$ to take sccond priority. So long as
papers arc gimm& importance than peop~c,our administrative systems cannot
improve. Intersention bas to be personal, by calling the concerned official or by
ringing him up. Deadlines'have to be set for each task. The completion of each
task has to be monitored. No backchat is to be tolerated-from subordinates. Each
person is to be trained in problem solving, and in f w i n g our innate tendency to
pass the buck to someone else.

Pinpointing of
responsibility

15.14

The distribution of work. in Government ocfices has to be done

in such a way that you can always pinpoint responsibility on a single
individual. No one who is called upon to perfonn a task should be able to claim
that it is not his job. If he is held responsible fix non-ptrfwmance, he should not
be able to wriggle out.

Performarice
opprouol

15 15
Whenever a grievance is redressed or not redressed within the
time limit prescribed by the organisation, there should be an automatic
mechanism for recording of the performance there and then. It should bc
recorded for several purposes It should go into a data bank which records the
pcrformance of the individual That should enable the department lo prepare LL
Monthly Performance Appraisal, whch should be communicated to thc indlwdual
The other use to which the information can be put is the determination of the
individual's entitkment to a financial reward or punishment.

Reward und
pwiishmenl

15.16
Asimpk systcmm the tclcphne.maintcnance wing of DOT could
award green points for good work and red pcints fa.slipshod work. At the end of
the month, al the green and red points could be totalled up, to give either a net
green (plus) or red (minus) figure. That figure could determine whether the
mdwidual \ w d d be entitled to an incentive or a deduction. In other departments,
it could be linked with (say) running allowance in the railways or performancelinked bonus h the postal deprtment or a cash incentive in a defence workshop.

Customer
Opinion Surveys

15.17
We require a well organised system of Customer Opinior.
Surveys, which could give us f d b x k about the performance of an organisation
or individuals within it. These niay be conducted internally. through units
dedicated to the task of Performance Appraisal or by engaging private survey
agencies on a contractual basis

hiiiuimnal
mechanismfw
redressal

15.18
A multi-tier institutronal mechanism has to he developed for
grievance redressal. This means that only grievances which cannot or are not
redressed at a particular level will travel to the nest higher level. X grievance will
keep on travelling up the hierarchy, as long as it is not sol\.ed. Thcre should be
automatic mechanisms which alert each higher level about the unresolved
grievances at the nest lower level as soon as thc stipulared standard time has
elapsed. One of the methods could be that of Lok Adalat or Social Audit Group.

Sarvochha Lok
Adalat

15.19
The higlwst tier of grievance nd&d at the bureaucratic level
should be the Secretary (Public Grievances), who should be one of the
senior6ost Secretaries to the Government of India. He should be able to hold a
niionthly meeting to discuss unresolved grievances which need attention at his level.
The meeting should have representatives of the administrative Uinistry, and the
Ministries of Finance and Law, ail of whom are Illy empowered to commit their
Ministries to any come of action that may be jointly decided upan. In important
casts, theref- the concerned Secretaries may attend the meeting personally. The
aggrieved party should also have the right to d e a verbal reprsentation before
this forum, which may be called the Sarvochha (Apex) 'Lok Adalat. Decisions of
this Adalat should be final and binding on all the Ministries of the Central
Govcment.

Calling/or
departmentaljilcs

15.20
The Secretary (Public Grievances) is currently authorised to
call for the fkpertaining to any case of any Ministry and to pass any orders
that he may deem fit, taking all the circumstances into accQunt It IS not known
how often or whether at all he exercises this power. But it would be salutary to
have this power vest in him, and wherever necessary he could obtain the
approval of the Cabinet Secretary or the Prime Minister, to lend the
necessary weight and finality to his decision.

Ombudsman

15.2 1
We also need an Ombudsmanoutside the routine bureaucratic
machinery. This could be a retired Judge or senior bureaucrat, ~ h may
o be given
a Constitutionalor legal status. He would be avai'lable for attending to unresolved
gnevances and could intervene in gitical matters. Hs hearings could bc public. but
without there being any lawyers. The complainant and the reprcscntatwc of the
Government department could be heard and an appropriate order passed either
setting a time limit to thc niattcr being resolved by the dcpartmcnt or in thc case of
a dispute, even deciding what line of action should be pursticd

100

[ GRIEVANCES OF EMPLOYEES A N D PENSIONERS]

I

.Wac/iinety

15 22
The gicvanccs of employees and pensioners wilt have to be mainly
dealt with by having multi-level points of grievance redressal, starting from thc

immediate boss and travelling through the layers of head of office, head of
department,adrmnistrativesecretaty and so on. Time limits for grievance redressal
should be fixed and adherd to.
Grtewnce

15.23
Each Ministry should have an Employees Grievance Committee
chaired by the Secretary. This should be the apex of a hierarchy of such
Committees, starting from the field level. Unresolved grievances should travel
quickly up the hierarchy, so that matters are set right within the shortest possible
time. Personal hearings should also be allowed at each level.

Pension Adalat

15 24

Committee

For pensioners, we must create P multi-tier effective Pension

Adalat system, fully empowered at each level to take shbrt cuts, short-circuit
procedures, reduce paperwark and come to reasanable, COmmuIlSense decisions
which resolve the matter in issue on the spot. For policy matters, SCOVA should
be fully empowered in the manner of the JCM,as has been mentioned in asother
Chaptcr

161

Dafmiliori

16.1
Management Information System is an integrated approach to the
design and use of a computer-based information system that provides summary
information and highlights exceptions for corrective decision-making. Readily
available and up-to-date information is a vital requirement for facilitating correct
policy-making and mOriitoring and control over various programmes. MIS also
enables the maaagement to take concurrent corrective action in ongoing projects.

I COMPARATIVEPOSITION I
Mcancrcs taken in
Orher

covnoies

16.2

Heralding improved MIS has been an inherent feature of

effected in different counrries of the world. In Canada an
office of Infomation Management Systems and -Technologyheaded by a Chief
administrativere-

information officer was created for policy devolution, implementation and

administrative -g
of the existing information systems. In 1994, the
Malaysian govvnwnt introduced a Civil Savice Link (CSL) as an on-line
informatioadatabaxsystem to enable the general public to access information on
government SGIyicCs at the touch of a button. This w a s p d e d by massive
computuisation and strcngthtned technology base in the management of public
services. The ambit ofadministrative reforms in the United Kingdom included
establishment of information systems in the principal areas of government
departments like personnel records, finance, physical resources and procurement.
An integrated approach to MIS was followed so as to share the available
informaton bctw#ndifhnt government departments. Efficiency units were set
up to detenninc departmental needs and recommend most suitable MIS for
different govunmcntal agencies . A body called the Government Centre for
Information Systans was created for promoting effectiveness and cfficicnq in
government through the use of information systems.

I PRESENT

STATE OF MIS IN INDIA

Ills plaguing h e
present +stern

16.3
Despite recent changes, govenunent ofices have not so far
adopted Information Technology in a big way. Collection and compilation of
information in government is being done on a very large scale by way of filing
various returns,whch engages most of the time of field functionaries. However,
this vast information is not Mly utilised because of its bulk and its delayed
availability. In gosernmentdeparimcntsinformation technology is mainly used for
document processing. While such systems have improved the eficiency of
operation of processes of a repetitive nature, they have not been used either for
decision-making or for planning, because of which the scope for enhancing the
effectivenessof organisations as a whole has been extremely limited. Most of the
departments have taken up computerisation of thcir operations in isolation and at
times their systems are not chpatible with the overall compnter network of the
govmment being operated by NIC. There is no effective mechanism for exchange
of information between various ministrieddepartments At times, the left hand
does not Inow what the right hand is doing. The bulk of informstion gathered by
the government machinery is not, therefore, utilised efficiently and effectively.
Quite often, information, in spite of being available. has to be collected from the
c o r n e d ofices due to cumbersome system of retried or the same information
is sousht more than once by the same office. The dormation so collected is hardly
used for monitoring of projects or for taking corrective action or even to update
data inputs for policy makers.

Desirable
altribules

I6 4
Today the government machinery needs an MIS which will
reduce duplication of efforts, streamline operations, make standard, accurate
and timely information readily available at all levels, integrate government
operations across the country, and take care of routine and repetitive
processes which presently account for nearly 80 per cent of all government
acthities. The ~oveanment,in its role as facilitator, should also nuke relevant data
available to t ! private
~
sector to facilitate its business interests, within the counby
and abroad.

RECOMMENDATIONS

Dmloping a
compu~trnetwork

16.5
Each ministry/department should identie the type of information
required at various levels for its designated functions and identirj, the sources for
its collection. Thereafter an integrated software should be developed which
should compile information fed by various sources and process it.to facilitate
its retrieval in the desired format by various functionaries. This will eliminate
duplication in data collection, its compilation and transmission. The NICNET of
the National Informatics Centre, which covers all the district headquartersin thc
c o u n p , should be utilised by all the ministries and departments of the central
govenuncnt. A common software should be devised by NIC Tor all govt.
departments so that the systems being followed in different departments.
remain compatible. Even if individual departments have to develop
specialised programmes for their specific functions, care should be taken to
make their language compatible.
The computers of various
offices/deprrtments should be networked so as to facilitate interchange of
information between different offices/ departments1 ministries of the

government. NICNET, Internet conneciivity should be provided to heads of

all field organisations. Proper safeguards should be incorporated within the
system so that only authorised officers can access the information, to prevent
misuse or leakage of information available.
Dcvisipg new
fomtsfor
submission of
infwmation

16.6
New formats should be devised for collecting information
from field units by the head oficdministry. These monthly formats should
be exhaustive and contain complete information so that the need for calling
details repeatedly from field offices is obviated.

Departmental
andfotnctional
management

16.7
A new system should be developed for departmental and
functional mmagement control. The system should interact extensively with
information generated at the operations level to summarise and present it in
the desired format. The reports generated by this system should cater to both
routine as well as ad hoc queries essential for decisian-making.

controlSVJIcns

Planrrirrg and
cotrtrol .yvstems

16.8
For purposes of strategic planning and control at higher
levels, a suitable information system consisting of related information from
external sources supplemented with data extracted from the operational level
of the department should be devised. This system should have an inbuilt
capacih ta caw to n larse number of unstructured and iuianticipated requests and
should bc able 10 support 'What-If analysis to enable users to develop their own
models.

Specia lised
sofiare

16 9
Government departments should be given specialised
software to perform functionswhich can lead to better analysis and result in
time-saving.

.hending the
existing
proceduns

16.10 Necessary modifications should be made in the current systems and

procedures of the government to make them adaptable to computerisation
and MIS.

Data Jnlalligcnce

16.11 .The data collected by government is quite eshaustive Fnd can be of great
use for private entrepreneurs in planning 5eir operations. The government
should develop a system whereby data having commercial value can be made
accessible to private sectors for commercial use.

System

I64

Intrduchon

17.1
Recruitment to posts in Government has become increasingly
difficult m the context of the growth of the private sector, which is now in a
position to provide much better rermndation and perquisites as compared to thost
OM
by government f'or camparabk positious. The age-old prestige attached to
Government service and the associated job security would not appear to be
adequate incenhves to attract the best amongst the job seekers. &lay in
completion of the recruitment proass also has an adverse impact onthe timely
availability of personnel to man vacant posts. A review of the recruitnient
procedyres and methodologies would, therefore, appear to be necessary

METHODS AND AGENCIES FOR RECRUITMENT

Various wtethods
o~'recru'brrent

17.2
bfferent methods ofrecruitment prevalent in.$ovemment for filling
vacancies in different categories are (i) promotion (;i) direct recruitment (iii)
deputation (iv) transfer (v) re-employment and (vi) short term contract. The
recruiting agencies of the Central Government are invclved in varyins degrees in
the recruitment process.

UNION PUBLIC SERVICE COMMISSION

Recruitment

d'rou~

17 3

The UnionPublic Service Commission (UPSC) is a statutory body

established under the Constitution. Article 320 of the Constitution contains details
of matters which would require consultation with the UPSC. This provides inter
alia, that all mattes relating to methods of recruitment and principles of promdon
that need to be followed for the civil service and civil posts shall need a reference
to UPSC. However, based on convention and explicit Government orders, dertain
other matters have also been brought under the purview of the UPSC. These
include proposals for upgradatioddowngradationof posts, constitution of DPCs
for promotion to posts in Central Civil Services and Group 'A' posts b a d on the
principle of selection and not on seniority-cum-fitness, special recruitment to the
scientists pool, etc.

165

IhmpfimlFmn
ronritfiadion
with UPSC

17.4
Similarly, the UPSC (Exemption fiom Consultation) Regulations,
1958 specify the matters which art excluded fiom its purview. These envisage that
if the rulesgoverningreauitment to the civil service or civil post concerned do not
explicitly provide for consultation with UPSC, it is not neqxsary to consult the
Commission in regard to selection for appointment in the following categories-

to a post included in an All Jndia Service, of any officer who is already a

member of an All India Service;
to a post included in the Group 'A' Central Service, of any officer in the
Armed Forces of the Union and any offcer who is already a meiiiber of an
All India Service or a Group 'A' Central Service;
to a Group 'B Central scrVice.or a post included in a Group 'BCentral
Service, of any offit& who is already a member of a Group 'B Central
Service, or a Group 'C'Central Service or of any oEcer in the Armed
Forces of the Union; and
to a tenwe post included in a Group ' A
of a State Service. .

Reduction of
lood Of

UPSC

or Group 'B Service. of an officer

It is &o not llccessaryto consult the Commission i n regard to selection for

tempomy or officiating appointment to a post if such appointment is not
likely to continue beyond a period of one year.

In the context of the increase in the work-load of the UPSC

17.5
responsible fbr direct recruitmentto a large nrmber c posts and of the inordinately
long time, ranging from 12 months to 21 months, taken in completing the
recruitmnt,it will be appropriateto rccollsider the entire question of indvemer,t
of the UPSC in recruitment to all civil posts in Groups 'A' and 'B'- The question
whether the UPSC litcds to be cansultedat all in respect of certain categories
of posts needs to be considered afresh by the Covernment. Alternatively,
Government could also consider the option of expanding the UPSC, opening
regional branches of UPSC or establishing other Commissions. But on
consideration of the various options, wc tee1 that the best course of action
would be to reduce the worliload of the UPSC by exempting more categories
of recruitmeqt from its purview. Such consultation should be restricted only
to recruitment of large numbers to organised services or cadres through
competitive examinations, conducted at the national level. This would cover
the Civil Services, Engineering Services, Central Health Service, etc.
17.6
In addition to making large scale recruitment to various organised
ServiceslCadres, the UPSC also recruits personnel to a large number of individual
or isolated posts. Whatas UPSC hss evolved standard procedures for recruitment
to the organisad Services, and is able to complete the process within a stipulated
h e h a m e , inotdinate delays occur in cases of recruitment to individual or isolated
posts. In the circumstances, theinvolvement of the UPSC should be dispensed
with if the number of posts to which recruitment is to be made is less than 15
and the ministries themselves may be authorised to make recruitment. Thc
Departmental Recruitment Committces constituted for the purpose should.
ho\+cver,associate outside experts. On reduction of its workload. the UPSC \\ill
166 :

then be in a better position to adopt i.vovative methods of rccruitmeat-by

modrfiing the present procedures and methods, and adopt other initiatives, such as
campus inteniiavs, \ v a l k - i n - i , association of private recruitment agencies
etc. so as to expedite the process of recniitment.
STAFF SELECTION COMMISSION
Other .-lgencies

jw

rrcruirmenr

Itivolvemen1
I.:PSC in
promotion

17.7
In addition to UPSC, Goranment of India has set up Staff Selection
Commission, Railway Recruitment Boards and other agencies and entrustad them
with the responsibility of recruitment to Group 'C' posts in Central Ministries,
Departments and their attached rrnd subordinate ofices and for recruitment to
catah specified Group ' B posts like Assistants and Stenographers in the Central
Secretariat. Vacancies in Central Chwemment Establishments other than those
filled through the UPSC or agencie like Staff Selection Commission arc filled by
the respective departments through notification to the nearest Employment
Exchange and no department can fill any such vacancy by direct recruitment, unless
the Employment Exchange issucs a non-availability certificate. In the event of a
conscious effort to reducc warkload on UPSC, as recommended by us, the
recruitment responsibilities shall need to be increased for Staff Selection
Commission. Also, Ministries, Departments and subordinate organisations
should themselves take up more recruitment responsibilities.. Govcnrmcnt
s h d d evolve procedures a b u t nominationof experts, if necessar).out of panels
maintained by UPSc/Stafstlca'iob C;orimission,
to the selection committeeto be
constituted by 'MinistriedOrgaktions for this purpose. W e do not suggest
creation ,of another .agency for recruitment by Governqent. The Staff
Selection Commission, which has already opeecd many regional offices, d s
to be expanded further to take over m o q responsibilities. This coupled with
the responsibilities passed on to the MinistriedOrganisations themselves will
ensure speedier recruitment in Government.

178
The UPSC is generally associated finalising promoboms at
various letcls In different services and cadres It is necessary to review the
different service rules with a view to ensuring that these do not contain
provisions for consultation with the UPSC in respect of posts specifically
exempted under the UPSC (Exemption from Consultation) Regulations, 1958.
In addition, the regulations should be amended to provide that consultation
with the Commission shall not be necessary in regard to selection for
appointment to posts in scales of p.ry below or above the Senior
Administrative Grade (Rs.5900-6700)in all ServicedCadres. The-present
practice of consulting the UPSC in cases of promotion from a Group 'B' post
to a Group 'A' post should however, continue. Promotions to posts below the
Senior Administrative Grade should be decided by the individual Ministries
themselves, who need to be authonsed to constitute DPCs irrespective of the fact
whether the promotion is to be made by the selection or non-selection method
Associatton of a representatweof the UPSC m the DPCs need not be insisted upon
I n short, the UPSC should be consulted for promotion only at the time of
promotion from Group 'B' to Croup 'A', or from a lower post to Senior
Administrative Grade in Group 'A*. All other promotions should be done by

167

the Cadre Controlling authorities themselves. Recruitment Rules should be

reviewed to provide for composition of the DPCs in the manner suggested in
this paragraph.

I REDUCTION OF

TIME LAG IN RECRUITMENT

Time taken

17.9
It has been brought to our notice that because of the inordinate delay
in selection of personnel by UPSC,StaffSelection Commission, etc., the selected
candidates lose interest and do not often join the posts. As a result, the vacancies
remain unfilled for a considerable time, affecting normal functioning of
Government offices. The present timc lag between the notification of vacancies
and issue of cffers of appointment to candidates Is very long and ranges between
1.5 and 24 months. There is a definite necd to rcduce this time lag. Besides,
reserve panels should also be prepared by the recruiting agencies so that alternative
panels could be made available to the indenting ministries wherever necessary. We
feel that measures suggested in the succeeding paragraphs should be adopted with
advantage by the Cmvernment departments and recruiting agencies to improve the
situation.

.Uanpower
piunning

17.10
Depar&mk$h+Iinistries should do proper and scientific manpower
planring with a view to ensuring that projections are made for vacancies likely to
arise in the next five years or so. While making the projections, it should be
en5ufBd that all relevant factors like past trends of resignations within a year of
appointment, csndidatesnot accepting offers of appointment, unforeseen vacancies,
etc. are duly taken into-account. Recruiting agencies should initiate recruitment
action on the basis of the projected vacancies: which may be subjected to
modification based on an annual review of the projected five vear manpowex plan.
~
of vacancies and changes therein
Indenting departments should intimate t l numkr
directly to the recruiting agencies, with a copy to the cadre controlling authority.

Maintenance of
Panels

17.11
Recruiting agencies should prepare a panel to cater to the vacancies
notified by the indating departmntsand, based on past trends and experience, the
size of the pards should be so determined as to ensure that the requirements
of the indenting departmats are fully metact of the panels. In cases of regular
annual selection through competitive examina:ions, the currency of the panel
should be valid till the panel on the basis of nest annual examination is available.
Vacancies resultingdue to resignation or death of an inckbent within one year of
his appointment should be filled immediately by a candidate from the reserve panel.

if a fresh panel is not available by then. Such vacancies should not be treatcd as
frcsh ones.
Provisional
uPPoinbnentr

17.12
The amcept of provisional appointmcnts needs to be introduced in
Government to ensure that candidates sclected by recruiting agencies are
immediately appointed, on a provisional basis for a period of three months,
without waiting for the completion of their medical examination and
verification of character antecedents. The Temporary Service Rules would
require amendment to provide that such provisional appointments could be
terminated at any time without assigning any reasons. All efforts should be made
to complctc the medical examination and vcrificntion of antecedents during thc
period of thrcc months that the provisional appointillcnt would be valid

17.13
The tinic limit within which the selected candidates are required to
report for duty should bc drastically reducul and the oger of appointmedt to a
candidate who fails to join within the period stipulated should be cancelled
without assigning any reason.

17.14
Demands have been made that the maximum age limit prescribed
for direct recruitment to VMOUS posts should be increased. Besrdts, furthw
relaxations of age have also been sought to enable departmental candidates to
apply for appomtment to posts filled by direct nauitmenl in their own departments
and outside We feel that the present provisions in this regard are adequate
and further liberalisation is not necessary.

17.15
It has been tepnscnted that, instcad of placing an excessive reliance
an theperformance of candidates in university examinations, which is often not a
very reliable indicator, recruitment to posts in government should be based on
examinations or tests specifically conducted by the recruiting agencies for this
purpose. It has been pointed out in this context that the standards adopted by
diffatnt Boards and Universities for evaluating students are also not uniform. We
fcd that the apprehensions underlying the demand are genuine and the only
way to overcome j h t problem would be to ensure that the suitablity of
candidates for appointment to posts is determined on the basis specific
or examinations conducted bv thc recruitinn anencies themselves.

if

: 169

18.1
Mobility of employees refxs to their capacih. in terms of flesibilih
it. serviceconcbtions,to move in the course of their career to other services or posts
in the Central Government itself: or in State Governments. public enterprises.
autonorno& organisations, international agencies, foreign governments and even
the private sector. Conditions of service of government employees. particularly
those relating to fonvarding of applications, retention of lien in the parent
department while working in other departments/ organisations, transfer of
pensicnary benefits in cases of permanent absorption or transfer, etc. have been
liberalised and improved pendically so as to remove impediments in their
movement to other sectors. But the extent of mobility is as yet quite insubstaytial.
~

18.2
A number of demands have been received by us urging that a liberal
exit policy should be formulated to enable Central Government employees to
accept employment in the private sector or abroad while retaining their lien in their
parent departmen.ts. It has been contended that, apart from earning foreign
exchange for the country,h s would also help in restricting the size of government
organisations. It has been suggested in this context that employees should be
sanctioned extraordinary leave for the purpose, as is being done by certain State
Governments like Kcrala and West Bengal, as well as some public enterprises.
Lateral entry of persons from other sectors into government senice has also been
advocated.
18.3
In Kerala, State Government employees are permitted to avail of
leave without pay and allowances, whether continuously or in broken spells. for a
total period of 15 years to accept alternative employment eithcr within the country
or abroad.
18 4
The National Hydroclecmc Power Corporation Limited permits. on
a selective basis, its employees who have been declared surplus to retain their lien
for a period of two years to cnnblc thcm to secure alternative cmplo\-mcnt in prn ate
organisations Employees of Himachal Pradcsh State Electricit) Board arc

I70

permitted to accept assignments m companies in the private sector which have

entered into memoranda of undastanding with the State Government. Such
assignments arc normally tenable for two years, but can be extended up to five
years. The period is treated as dies ~ #forl all purposes.
%sent position
in the Central

sowrnmmt

18.5
In tarns of the CentralCivil Services (Leave) Rules, 1972, not mote
than five years' leave may be sanctioned at a time to Cenkal Government
anployees. These further prohibit the employees from accepting any employment
either w i h n the country or abroad or undcrtdiing my m c r c i a l activities while
on leave.

18.5
After carehl consideration, we are of the view that it may not be
desirable, as a general principle, to permit all government employees to accept
employment in the private sector or abroad while retainmg their connections with
the Government. Quite obviously, acceptance of the demand would be dctrimcntal
to the interests of efficiency in government. The ewsting provisions in the rules
nxpinng them to resign from government before accepting such anployment arc.
considered to be salutary and deserve to be retamed. It may, however, have to be
mgrused i t this context that many employees arc apprehensiveabout exploring
alternative c8ccers in other sectorsbecause of the uncertainties involved and doubts
about their being able to adjust m an alien work environmat. One of the major
thrust areas of the COtnmissian is also to devise measures far rightsuing the
government machinery. Far this purpose, it may be essential to casurc that exit
hthedovemment seaof is easy and painless. Therefore, as an experimental
measure, certain specifred categories of employees could be permitted to
retain their lien in their posts in government for a very limited period, say
two years, while being employed m the private sector or abroad. During this
perio4 it should be possible for them to make the transition from the
government sector and to adjust themselves in the new work environment
and to decide whether they would prefer to continue in their new assignment
after resigning from government service or return to the post earlicr held by
them. This measure could conceivably act as an incentive for persons to
consider quitting government Swice after being exposed for a Limitd period
to a new work culture rind environment. To begin with, this facility could be
extended only to those categorkd as Executives.
n
F
in
'g
of
ipphcatians

18.7
The present rules governing the fonvarding of applications for
alternative employment from serving employees are considered to be adequate.
These provide enough mobility while safeguarding, at the same time, the right of
governmcnt to retain such of those employees as have been trained in specdised
fields at government expense and are, therefore, obliged, in terms of b n d s
executed by them, to serve government for specified periods. They anr not
restrained, however, from accepting employment in State G o v e k t s , mblic
enterprises and quasi-governme$ organisations. In such cases, the bon& am
transferred to the concerned organisations.
/

'krnptionfim
tppoinanent on
'Jcnnanent
bbssrprian in

Yuconmous
3rganisations

18.8
At present, CcntralGovemment employees can accept appointment
in a public entaprise or autonomous organisation only on severing all connections
~ 4 govemmcnt.
h
In view, however, of thc fact that this restricted the capacity of
those autonomous bodies which had only mall cadres to obtain the services of
personnel in spccialisd fields, detailed guidclincs have been issued by government
listing thc cases in which exemption can be'sought from the applicabilitydthe

171

provisions dating to permanent absorption in so far as appointments in

autonomous organisations are cmcemed. Besides, appointments of Chief
Executives and the zonal and regional chiefs on deputation for a period of five
years are also permitted in those Central public enbprises which are required to
maintain continuous liaison and ensure coordintltion with State Govanmtnts and
in cases where the expertise acquired in the State Governments is considered
essential for OrganisationaI efficiency. In thc specified cases, the autonomous
organisations concesnad arc required to obtain the necessary cxanption from the
Dcpiutment of Pension and Pensioners' Welfare. We are, however, of the view
that once the guidelines themselves specify the cases where the requirement
of permanent absorption may be dispensed with, a formal exemption from the
Department as envisaged should not be necessary. Instead, the rutonomous
oganisations may be given the discretion to appoint Central Government
employees on deputation to the specified posts.
Twn+ of
Pm'mav.
k ! I s

torcrolmqy
m chwnmcnf
Semce

18.9
Reciprocal ananganents presently exist to ensure that the services
r e n d e r e d by a Central Governmentemployee in a State Government and vice verso
are counted for pcnsionary benefits. The earlier provision in the des which
required the transfer of the pro rata pensionary liabiity to the borrowing
government has now been deleted. On the same analogy, it has becn daMtwkd that
this provision, which still exists, should be dispensed with in the ease of
appointments in autanomous organisations as well. This is-onthc ground that the
autonomous organisations are fdiy funded by g0v-t
grants. However,
appointments in autonomous organisations, irrespective of the source of their
funds, are not comparable, with those in the Central or State governments.
The present arrangements in this regard may, therefore, continue.

18.10
Lateral entry of persons from other sectors into Central
Government service could also be considered as the experience and expertise
gained by them could be u t i l i with advantage in government. They must
be encouraged to join on r time bound contract basis.

: 172

Inrr0dUcb;at

19.1
One of the mainpoints of criticism a g a k t govenuncnt employees
is that once they are appointad, tbcy are there for life and no one can @ rid of
than. It is, therefore,~eccss81ytosee how in the new atmosphereof libcmlisation,
we can devise novel metbods of ramitmmtwhich would not necessarily involve
lifetime employment. Contmctualemployment is the obvious alternative.

Prestnl panhim
in Gwmmcnf

i9.2
Appan antract are generally not resorted to in the m a
ot'public employment in the Government of India, except in a few areas requiring
specidtsatm. A contract appointment is one under wvhch an employee signs c
legal contract with his employer to perform assigned tasks for a specifid penod
on the tern= and conditions (including remuneration and erquisites ) specifid
therein. The need for contract employment paticularly arises whex a project work
of a purely temporary nature is required to be undertaken for complehon wthm a
speched period or certain aqxcdscd skills and inputs are considtrod necessary for
Shortddons. Generally,nCrUitmentto all posts in government, which are likely
to continue beyond a period of one year, is made on a regular bwis, the general
understanding being that persons so recruitedshall continue in service on a longterm basis. Thus personsrecruitedfor temporaryjobs are shittcd to anothq project
or jobs of temporary nature and they ~ f ultimately
e
assimilated in the permanent
work fmc.

Why we .reed

19.3
Thereis, Mbrc,auyingneed torecogniseti&bound temporq
contcactanploymcnt as a legitimate and accepted form of employment. The need
for such anp!oynmt also srises in the context of labour laws and general attitudes
of courts, which had to protect the interests of labour and convert casual workers
into permanent regular employees even if they are recruited for specifiedjobs on
a purely temporary basis. Providing security in employment thus assumes greater
importance than ensuring that the work of the Government is done at the minimum
possible cost. The need for contract employment is also felt for the purpose of
lateral entry for vanous positions at senior level where services of an expert in a

Contrad

employnrt

: 173

m c u l a r arca of specialisation am needed. Such outside talent brings a whiflof

fresh air into the musty corridors of G o v e k t and deserves to be erlcouraged.

SCHEME FOR CONSULTANTS

firails

of the
scheme
/Or
engagement
CrwrmHlrollr.~

19.4
A form of appointment for temporary work that is prevalent in the
Government of India is the scheme of engagement of Consultants to undertake
specificjobs of a specialised nature. Consolidated instructions on the subject were
issued by the tkpartment of Personnel & Training in their O.M. No. 16011/6/93Estt (Allow) &ted 3 1st December 1993. These stipulate that Consultants can be
appointed to the-extentof 10% of the total number of psts at the level of Joint
Secretaries and above within a Minisw, including attached and subordinate
offices. In the case of the Planning Commission, this nstiiction can be relaxed up
to 25 Consultants in all. In the case of appointment of fetidretiring employees
as Consultants, their total number in a MinistqdDepartmcntis not to c s d two
at any given time.Employment of such Consultants is not to be made for work of
a regular nature. In case this is rcsorted to under esccptional circumstanccs, the
post earmacked for such work is required to be leR vacant. The masimum period
for which such appointment can be made is not to exceed two yeas in case of
empioynent of outside experts and 6 months in .the case of retidretiring
employees of the MinistryIDcpartmknt. However, this scheme does not rcspond
to the 4fot contract employments at all levels in Government, whenever work
of a temporary nature arises.

COMPARATIVE POSITION ELSEWHERE

Pusitimi its Other

c0untrie.s

] 9.5

Temporary work is a common form of employment both in

industrial and developing countries. According to a rcport of the International
Labour Orgdsation (ILO), in some developing countries, the percentake of
tanpaary work ranges between 30 and 50 pa cent of the total employment, while
in the indubialiscd countries, an average of 10-20 per cent is most common.
Governments of most developing countries readily acknowledge the deploymerit
of temporary psonnel, though only very limited statistical data arc rvailatile on
such deplgnmnt. In certain developingcountries like Bahrain, Kuwait, Zimbabwe,
etc., which haw a significantnumber of expatriate non-technical advisok, the only
legal manner in which they can be recruited is on temporary contract. Contract
employmentfix temporary \vork is regarded as very useful in structural adjustmcnt
programmes in the context of reforms in public service, reduction in size and
reduction in job security. Contract employees, who are more vulncrable to
termination than workers with a permanent status, go first when staff cuts arc
unavoidable. Any reduction in the workforce in the light of an economic crisis is
easier to unplantnt if the proportion of temporary workers.ishigher It is easy tc
ensure smooth structural adjustments in a situation necessitating reduction in the
size of the public senicc. Somc countries, however, discouragc temporan:
employmenton the ground that most of the personnel recruited for tcmporac work
lack professional skills and arc no1 rccruited by competition. Thc Icgal franicwork
for such employees is also being constantly improved upon in a manner that t h e
do not retain only a tmpaq status'for a long timc and: cvcn whilc on contract.
service conditions are w r c or less at par with those of pcnnancnt cmployccs.

I74

Pasition in

prtvatr srctor

Appointments on contract are comparatively morc popular in the

private sector in M a Thc amtract form generally used m the corporate sector for
employment at higher levels provides in actail the duties and responsibilities,
remumration includingperquisites like accommodation, office equipment at home,
soft furnishing of home, savants, etc. It also provides for conditions of
termination of service. Whereas a notice of two months is generally prescribed for
termination of services &anather side, services can be terminated by the employer
without any notice when the anployec is founa to be guilty of misconduct,
unpunctuality, neglect of duties, unauthonsed absence, breach of confidentiality,
etc. Such contracts also have a clause about applicability of current Indian
legislation on employment contracts.
19.6

OUR RECOMMENDATIONS
Rrcogttititm oJ
contractual
employment

Taking into consideration all the factors discussed in the

preceding paragraphs, we recommend that employment on contract basis in
Government needs to be recognised as one of the legitimate forms of
employment and should be resorted more frequently in certain situations like
(i) replacement for temporarily absent personnel for a considerable duration
ranging from one to five yean (ii) time bound special projects, which are not
likeiy.tocontinue (iii) specialised jobs not normally required and (iv) for the
purpose of maintaining a certain flexibility in staffing both for the purpose of
lateral entry of experts, moderating the numbers deployed depending on the
exigencies of work and ensuring availability of most competent and
committed personnel for certain sensitivdspecialised jobs.
19.7

19.8
At present, appointmentagainst my post likely to ccntinuc Scyond
a period of one year is to be made on regular basis through UPSC. SSC,
Employment Exchange etc. In case contract appointnisnts are to be made by
conccmed MinistriedDepartments, it shall be necessary to amend the UPSC
(Exemption from Consultation) Regulations, 1958 to provide for eIemption
of all job-specific contract employment, which is to be continued up to a
maximum period of 5 years. Regular appointment through UPSC should be
required to be made only where it is likely to coniinue beyond a period of five
years.
It may also be necessary to amend the labour laws in the country
19.9
send a clear signal to the courts that short-term employment should be
recognised as a legitimate mode of engagement of labour, and job security
should not be accorded the preponderant attention that it has.received in the past.
tci

19.10
The Model Agreement Forms circulated by Ministry of Finance
in 1955 for contract appointmentshall need a re-look and updating in the context
of changes in employmentnabour laws during the last four decades. The model
should also provide for the description of dutiedspccific details of the job for
which such contract employment is to be made.

f9.11
The scheme of the Government for engagement of consultants
should be modified to provide for such appointments on contract basis. There
should be a provision that the appointment of a consultant on contract basis should
be made only &r proper notifrcatioddue publicity of the vacancy and should not
: 173:

be made in an arbitrary manner. Similarly,'appotntment of rctirzd officers of the

Ministry as consultants on project posts funded by UNhilateral agencies should
also be brought within the framework of present guidelines on engagement of
consultants about tenure, proper notificatiodpublicity for appointment etc

20

20.1
All the fecommendationson administrativerefom will work only
if a proper training programme to effect necessary changes in the work ethos of
government officials is designed and implemented. The prcrposed re-structuring
of the government offices and work procedures would cause a large scale redeployment of existing staff-especially thosc in group 'D'and 'C'categories -who
will have to be retrained for taking up new jobs: In the new environment with
cmphasis on "customer orientation", attitudinal changes in the supenisol?: and
executive cadres would also be ncccssary. Besidcs, training facilities will also be
required for responding to rapid technological changes taking place at present

EXPERIENCE OF OTHER COUNTRIES

Truimtg
mrcltunisms ttt
other countries

Canada

20.2
In countries where civil services reforms have been undertaken in
thc recent past, the importance of training as a significant means of improving the
human potential and increasing the efficiency of employees has been
acknowledged.
20.3
In Canada, despitc a series of cut-backs in operating budgets,
espenditurc on training and development has becn maintained at previous levels
or even increased. Employees arc given total freedom to opt far a training of thcir
choicc. A suhstantial parl of thc training effort is delegated to individual
dcpamncnts. Public servants undergoing training in colleges etc. in their own t h e
arc reimbursed part of the cost i n c u d thereon and emplojms are encouraged to
organise briefings and information sessions in their free time.
20.4
In the United Kingdom, grcater responsibility for training and
dcvclopmcnt of cmployccs is dclcgalcd to individual departments. The focus of
training has bccn shi\cd to bring about ncccssary changes in thc skills for bettk
cirsmcr scrvicc, Training coiuscs an: dcyiscd on the basis of practical experience
of di flcrent busincss houscs whid havc improved their performance through
propa training of thck staff Simultmmsly, emplo~-ccs
are encouraged to idcntifL

.\l , l l l I ~ ~ f i r

20.5

In Malaysia, training has bccn idcnltficd as a vital componcnt in thc

implcmcntaxion of the total quality m a q e p c n t con'ccpt and thc clients' chartcr.
Provisions arc madc for training at all lcvcls in thc civil scrvicc. Attachment
prograunmes to send Govemmcnt employces to certain specified busincss houses
in the privatc s c c ( ~ ffor expocum to practical aspects, practices of managemcnt and
intricacies of business operationshave bixn initiatcd.

THE PRESENT SYSTEM IN INDIA

20.6
The Indian Government has taken nwncrous steps to providc
training facilities to its employees. Direct entrants to Group 'A' services undcrgo
scveral institutional and in-service training programmes. Such programmes for
Group %' and Group 'Dpersonnel are,hdw~ver,less common. A Ccntral Training
bvision exists in thc Dcpartment of Personnel and Training which is rcsponsiblc
for promoting and coordinating training programmes of thc differcnt Ccntral
Ministries and Deplutmcnts, providing guidance and help, sponsoring or arranging
training courses on aspects common to d i f f k t services and maintaining liaison
with the States. This Division is also responsible for the training of Trainers and
Coordinators of different Departments and Ministries.

20.7
in the government, there arc various institutcs conducting differcnt
training programmes. The La1 Bahadur Shastri National Acadcmy of
Administration at Mussoorie imparts training to IAS oficcrs. Apart from
conducting training programmes for ftesh IAS probationers, it runs refmhcr
courses far senior IAS oflficcrs. A week-long vertically integrated (raining is also
being imparted annually (0 all IAS officers. Then: are other specialised institutions
likc the National Academy of Direct Taxes, Sardar Vallabhbhai Patel National
Police Academy, ctc. which provide training ta oficcrs of the IPS/Ccntral services.
These academies run foundational courses for direct rccnrits to the All India and
non-technical Central Group 'A' services.
20.8

These are autonomous institutes like the Indian Institute of Public

Administration, Admtnistrative Staff College of India etc. which conduct several

courses on administrative leadership, policy planning and so on. Some State
Governments have set up training institutes for specialised courses. A largc
number of oficcrs arc also nominated for training abroad.

LACUNAE IN THE EXISTING SYSTEM

20.9
Training in India suffers from the twin ills of low priority and ad
hocrsm. Thcrc is no wvcll thought out perspcctiw plan for training. Frequently
them is no intcgration bctwccn training and performancc or carcer dcvclopmcnt.
Modulcs imparting thc spirit of "clistomcr oricntation" amongst govcrnmcnt
cniployccs arc sadly lacking. The priority assigned to training is low and morc
oflcn.lhan not, an ollicial is sent for training only because he happens to be fm.
Training needs of thc staff arc seldom identified. Due to lack of proper incentives,
a posting as a facultp nicmbcr of atraining institution is not valued. Fcedback
I 7x

oblrtitlod lion1 the traiticc's ISnot properly atialy~cd.atld this lcads to pcrpetuatioti
of incffcctivc training prograninics. Wliilc tildivldunl training divisions Ibr
importing specific training havc bccn crcatcd i n sonic largc niinistrics/dcpartm~ti~s.
tlicsc do not csist iii smallcr dcportmaits.

1 RECOMMENDATIONSMADE IN CONSULlANCY REPORTS

20. 10
In the sponsorcd study on 'Restructuring thc Govemmcnt oficc'.
Indian lnstitutc of Tcchnology (IIT), Dclhi as w e l l as Tata Consultancy Scniccs
(TCS)havc madc ccrtain obscmations on this subjcct. IIT has obscnwl that thc
prcscnt lcvcl of skills among thc staff of govcrnmcnt officcs is \*cry modcratc.
t h d y indicating a nccd for kttcr training. Thc training nccds of staff arc seldom
idcntificdand thcrc is a growing nccd for adcquatc training mcchanisms:for multiskilling and rcdcployment of staff. TCS has proposed sctting up of training
division in cach dcpartmcnt, which should compilc an invcntory of knowledge.
skills and auitudcs rcquircd forpcrforming different jobs so as to rcctify any gaps
by propcr training in a planned manncr. Thc nced for cstablishing a systcni for
propcr fccd-back and pcriodical asscssmcnt of thc impact of training bcing givcti
to thc employccs, as ~vcllas linking training with othcr HRD functions likc
pcrformance appraisal, promotions, rccruitmcnt, etc. has been cmphasizcd.

DEVELOPING A NEW SYSTEM FOR TRAINING AND

DEVELOPMENT
GweriiJ.Strcrtt*w

('Tt!ClllOn Of

IraoiitiR Groups
utidcr HHI)

( 'ontntoin cour.w.t

j w

oll .St*nwt!.t

20, I 1

In thc libcraliscd scenario whcrc the govcrnmcnt has to rcducc its

six while simukancously incrcasing thc productivity, thc thrust of training for
cmployccst which form a bulk of thc work-forcc, will haw to bc
goup 'C' and 'D'
to\\ards multi skilling. All group ' D' staff shoutd be trained in different skills
so that they can simultaneously perform various functions presently being
carried out by a plethora of auxiliary staff. In the case of group 'C' ofice
staff in the Secretariat, proper training, enabling them to perform all the
functions of executive assistants, should be devised. This should include
training in use of computers and other modern office gadgets, shorthand,typing, drafting, noting and attending to phone calls. For group 'A' and 'B'
employees, the emphasis has to be on bringing about an attitudinal change
which is crucial to the success of the administrative reforms. Some specific
rccommcndations on diffcrent aspects of training and equipment follow.
20 12
An adequately equipped training group for analyzing regular
training needs as well as for arrabging department-specific, post-specific and
individual- specific training should be created in every department as pad of
the Human Resource Development team. This group should work out a
detailed training plan specifying the kind of training required for each level
and identify suitable training institutes and trainers therefor.

20.13
DOP&T has already identified a number of institutes for
running general training programmes funded by it. These institutes stiould
run common courses for different services/departments so as to bring about
a better interaction and commonality of approach between them.

20 I4 Prcscntl! LBSNAA. SVPNPA and NAD1' conduct fouiidational coiirscs

for all dtrcct rccruits to llic All India and non-tcchntcal Ccnwal Group ' A' scn'iccs
Latch IAS rccruits arc only scnt to Cf3SNAA for thc foundational coursc and onl!
thc rccruits of thc othcr All India and Ccnlk~lGroup 'A' scrviocs arc scnt to thc
othcr two acadcmics This dcfcats t l r \ e n ptirposc 01' thc fo~mdatronalcoursc
We recommend that all probationers, irrespective of their service, may be
distributed equally amongst these three academies. Further, direct recruits
t o Central Group 'A' technical services may also be sent for these
foundational courses.

20 I5
Thcrc IS a crying nccd for csposing govcrrtnicnt eniplo>ccsto thc
work proccsscs. mode of functioning and prcssurcs csisting 111 privalc scclor Jobs
Accordingly we favour initiation of a new scheme of attachment of
Probationary executives of the Government t o certain selected and efficiently
run private sector organisations for short durations. During this attachment,
the probationers should be asked to perform some specific tasks which should
be assessed for incorporation in their appraisal sheets. Short duration
borkshops and seminars with top ranking managers o f private sector should
also be organised for senior executives of the government in order to
facilitate exchange o f ideas and experience.
20.16
New methods for imparting training should be evolved and, as
far as possible, employees should be allowed t o choose their own training
schedule.
20 17
Thcrc has to bc a dircct rclationsliip bet\\ccn thc carccr plan of 911
cmployce and thc training imparted to him Although thc present pcrformancc
apprzllsal fomi has a colunin for training undcrgonc and futurc lrariiipg nccds, not
much unportancc IS attachcd to it We recommend that various training courses
undergone by an employee should be counted for assigning proper gradings
at the time of promotion abd deputation to posts should be linked to the
officer having successfully completed training in a relhted field. Besides,
refresher training courses tailormade for honing the skills required for
handling specific levels may be conducted at regular intervals. All officials,
after putting in specified years of service, should undergo these courses
mandatorily, followed by a test. Employees who fail to clear the test even
atler two attempts should be classified as unfit for promotion. Furthermore,
certain prestigious courses should be evolved on the Staff College pattern in
the defence services, to which only officers whose performance has
consistently been outstanding and who have been identified as potential
leaders for the future are sent. Such officers, on successful completion of the
training, should be picked up for manning the most sensitive and important
assignments in the departments.
I*Oreipitraining

20 18
Thcrc is a clamour amongst govcrnmcnt officials to rush for any
kind of forcign training. irrcspcctivc of thc fact whclhcr i t IS rclatcd to thcir work
or not This tcndcnc! nccds to bc curbed We recommend that government
officials should be sent only to such foreign courses and training as have a
direct relationship to their work and ctin he used for developirig their skills
further.

20. I!)

In vic\r. ofchanges cnvisagcd in thc fiinctioninS 01' h c govcrnnicnt

20 i9
In view of changes envisagod in thc functioning of *. ie gowrruncnt.
there w11 be need for carrying out refresher courses for executn es at all levels,
for effecting attitudinal changes to prepare them'for taking up the role of
"facilitators" instead of being mere regulators.

Troming of
C~CUIlWS
us

focilrtators

SP-1
mining

Feedback

of

20.20
In the case of professional scrvices like medical and engnieering,
here ISa need to introduce a proper training schedule at the Middle level for
broadening their horizons, updating their technical skills and fitting them for
higher policy assignments. Similarly, in generalist services, there may be B
need to reorient them towards broad sectoral specialisations at a certain
stage in their careers.
20.2 1

Adequate review mechanisms for gauging the effectiveness and

relevance of training programmes have to be developed. All training divisions
should establish a system for receiving a proper feed-back on the effectiveness of
a course h m partxipants. Based on such feed back. the training divisions&hould
develop mechanisms for pinpointing any lacunae in their training prograhnc and
institute immediate remedial action.

181

Objectiw

21.1
Perfomance Appraisal covers a broad ground and could bc
dcfined as the overall methodology by which an oqpnisation is cntitled to asscss
thc performanceand capability of an individual cmploycc. Such-appraisal is made
c v c n day. every hour. every minutc by thc supcriors, collcagucs, subordinates,
clients. the courts, the mcdia, membcrs of thc public. Orgaiiisations have periodic
rcvim n&qy or are monitoring pcrformmcc through which the pcrformancc of
m d v i d d oficers can be adjudged. But thc chicf. most commonly used, \vcapon
IS the -4nnual Confidential Report.

21.2

Annual Confidential Rcports on the pcrformancc of government

w a n t s provide the basic inputs for asscssing thcir suitability for being confirmcd

in scntcc. crossing efficiency bars for drawal of furthcr incrcments, promotion,

deputation and other special assignments. Aimed primarily at improving thc
pprformancc of employees, thc main focus of tlic report is envisaged as being
Cievclopmental rather than merely judgmental. It is intended to be true indicator of
Thc strengths and weaknesses as wcll as achicvcments and shortcomings 01 m
individual government servant and is thus an csscntial tool for propcr personnel
management. The s)stem ofwriting annual confidcntial reports, thercfore, has two
principal objcctivcs, which a Reporting Officer should bc clearly m a r c of. Thc
first is to i m p W the performance of the subordinatc rcportcd upon in his. present
job and thc second is to assess his potential and prcparc him, through appropriatc
fccdback and guidance, for further advanccnicnt.
Present puririorc

2 I .j
Major changes wcrc introduccd-in thc systcm of wiling thc
confidcntial reports on three occasions in thc past in 1975, 1978 and 1986. Thc
format of thc Report currently in forcc was introduccd in 1986 after detailcd
&liberations in a workshop organiscd in the contcxt of ccrtain demands from thc
Stan Sidc in the National Council of thc Joint Consultativc Machincq that thcrc
sliould bc grcatcr opcnncss in thc s!stcml asscssnicnt of thc fitncss of lower Icvcl
fitioimrics fpr promotion should bc dispciiscd with, ctc. This format is based on
thc conccpt of managcmcntby objcctivcs in govcnimc~tand is thc outcomc of an
and achicvctncnt-oricntcd. It cnvisagcs
attcmpt to n i k c thc s\.stcni morc obj~ctiv~
the cvolution of ncw work culturc based on pcrfomncc end rcsults and thc
aiscssnicni is. thcrcforc. both quantitativc and qualitativc. rnstructmns currcntly

i n force also providc that the rcporls on Group ' D employes nccd-nol bc
maintained if they are wt emplecd on sensitive jobs

!r\BOLITION O F CONFIDENTIAL REPORTS

1

I)i.pEcuitinnancuk

. F i f i e d cusc's

Our views

I
I

2 1 .J
We have recei\d a number of suggestions that the Annual
Confidential Reports should be discontinucd. This has been justified on the ground
that the system is defective and causes a great deal of dissatisfaction to the
cmplg-ees and that, instead of achieving the primant objective of improving
cmployxs in a positive manner, it has become an instrument of harm+miat and
victimisation. Other suggestions in this reg& are that (a) the fcports should be
witten only during the initial ten years of service of an employee and discontinued
tlicrcllfter; (b) the system may be retained only in respect of emplqecs in Groups
A' and * B and such of thoseGroup 'C'employees as arc eligible for promotion to
Group 'B' posts; and (c) the reports should be discontinued in rcspcct of posts to
which promtions arc made entirely on the basis of seniority-cum-fit, i.e. b?
the non-selection method;
21.5
Quiiobviously, in the absence of other efkctive methods of
performmceappniul, itwould'not be desirable to restrict the writing of t k
Annual Confidential Reports only during the initial years of an employe's

service. We understand that-r+tsinlespect of Group 'C'personnel c m p b y d

in some of the State Gowrnmqts are required to he maintained only if they are
cligible for p m o t i o n to Group 'B'!posts. We also mgnise that the A M U ~
Confidenfial'Rtports h e only of limitcd utility in determining h e suitability of
pcrsonnel for appointment to posts to which promotions are madu on the basis of
seniority-cup-fitness alone. lhough these factors might justijt a review of thc
nm-ssih for the continuance of the system in certain specified circumstances, the
hcnefits under the Assured Circcr Progression Scheme separately recommended
by us would bc available oniy'to those wvhosc performance conforins to the
prcscribed standards and who fulfil all other p-ribed
criteria for reydar
functional promotion to posts in the relevant higher scales of pay. Besides, \ve
have also recommended elsewhere in the report introduction of Pcrformancc
Related lncments for all anplqecs, including the Group 'D'personnel, purely on
h e basis of their perfmance during the year. An appropriate mechanism 'fix the
purpose will be neccssauy and the Confidential Reports would f m the basis of
asscssment of performance for regulation of increments. In the circumstances,
we are of the firm view that it will not be desirable to discontinue the system
of Annuai Confirlential Reports.
In fact, in the context of our
recommendations aimed at improving employees' productivity and relating
increase in compensation to performance, this ssould be reintroduced even
in respect of Group 'D'personnel.

.%tmttoT oJ~

suggestimis

2 1 .o
There is n widcsprcad dcmand ,for greater openness and
transparency in performance appraisal so as to clim'nate, as far as possible, any
subjectivity in rcporting. Somc of thc suggestions rcceived by us in this connection
I83

are: (a) the contents of the reports should bk disclosed to the employee concerned
so that he is aware of his capabilities and shortcomings and can strive to improve
his pcrformance; (b) the performance of an entire tcam should be assesscd
whenever m e s s a r y ; (c) employees should be assesscd not only by their superiors
but also b.! thcir colleagues and subordinates: and (d) additional monetary benefits
should bc provided for emvloyces whose performance is consistently of a high
order and who are graded as such. It has also been urged that more than one report
with an average grading should be treated as adversc and communicated to the
employee concerned. A few have also suggested, on the other hand, that the
grading of employees in the reports should be dispensed with and the reports
confined only to a general appraisal of an employce's performancc during the year.
.Vodal Afitiistw's
views

2 1.7
The Department of Personnel and Training appears to be averse
to the communication of an average report to an employcc on the ground that
"average" performance is not considered to be adierse though it IS not
complimentary It also appears that the demand for reports on performance of
employees being open documents was considered in the early eighties, when the
concept of an opeii system was not favoured Instead. the present system which
provides for a self appraisal by the cmployees themselves and assessment at tvo
levels by the Reporting and Reviewing Officers \\asconsidered to bc suitable for
our conditions. According to the Department, this has been working reasonably
\vet
We find that there is already partial openness in the Armed Forces
in the system of appraisal of the performance of Officers, who arc shown the
assessment of their performance, excluding the obscmations on their fitness for
promotion. Openness of vaqing degree has been introduced by the State
Goveinments of Kerala, Tamil Nadu and West Bengal. Some of the public
cnterprises have also introduced a participative system of performance appraisal
for t&ir Executives. The trend internationally is also to place a greater emphasis
on detailed job assessment of every employee Bnd understanding betwccn a
manager and his suborbates about their duties and responsibilities, the appraisal
of an employee's performance and contribution now takes place on parameters
kcown and agreed upon by the employee. This enables thc manager to be more
responsive to the organisationd dc,nands and is understood to result in a more
satisfied and productive work force. The traditional approach to perforniance
appraisal, which is primarily concerned with the past and usually leads to salary
review or promotion, is being replaced by a new approach, a fonvard looking
process kno\vn as Self Development Review, having its primary emphasis on the
future of thc employees and the organisation.
21.8

Our
recommmdatiotrs

(iradurg of overall
prrjrmmicr

21.9
In order to keep pace with the significant changes taking place
globally, and in Ihc contcxt of our cmphasis on increasing cmployecs' productivity
and relating increments to performance, we are of the view that certain changes
in the present system of employees' appraisal are called for. Our
rccommcndations on the reforms necessary are contained in the succeeding
paragraphs.

2 1.1 0
Under thc present system ofgradmg cniployccs as "Outstanding",
"Vcry Good"."Good"."Avcragc", or "Poor". thc fincr and morc subilc distinctions
bctwccn differcnt cmplo\.Ccs arc not readily disccrniblc For instancc. an cmployce
may not qualify lo bc graded outslanciing. but his pcrforniancc may wcll have bccn
184

shades bcttcr than increly very good, which would rightly jWtiFj' his being
considered supcnor to allother employee who May ha\.e earned only a very good
grading Fiiicr distiiictioris in grading would bc of considcrable utility in ensuring
that the most dcscnifig among different employees arc clevated to posts,
promotions to which are based on selection and mcrit. These would be of
pruiicular relevancc in the case of appointments to esecutivc and senior duty posts.
A more exhaustive and comprehensive assessment of personnel based on a pointrating sistem is already in voguc in the Central Policc Organisations and the
.4rined Forces,and cven individual traits and attributes are measured against a ten'point scaie The grading systeni followed in respect of civilians employees is,
ho\vever. somewhat restrietcd in its scopc and ambit
f h d i n x ' m i .I0
poorI vcaL

21, J 1
In order to remedy this deficienq in the present system. grading
of oficers on a ten-point scale could be introduced for the E x e c d v e cadrcs.
This need not, however, be as comprehensive as in the Armed Forces or the
Central Potite Organisations but could be confined onkjr to the fiilal, overall
gradihg. h e present system may, however, be rerained without any change
in respect of all other employees below the level of Exechtives.
'

k t t L ig

of 6 mil 21: 12

kff
It' f

A r a t i q of six and below on the ten-point scale, which would

have adverse implic itions for promotions based on selection for which
bciicliinarks are prescribed, should be treated ns tieing not good enough and
communicated to the executive concerned. This wvould enable him LOrcpresetit
against the Fading, should he feel aggrieved for any reason.'

Cleraikd orrlrrs IC 2 1.13

be mated
and to

In the context of our proposal to relate increments to peyformmcc

fadiEate the extension of financial benefits under the Assured Career
Progkssion Scheme as well as promotions based on selection, Reposting and
-Heviewing Officers may be specifically required to assess and indicate the
suitability of all categories of empioyees to (i) draw one o r more increments,
(ii) derivethe benefits of the Assured Career ProgressioriScheme, and (iii) for
promotion to higher posts, appropriate columns being included in the report
form for the purpose.

md
TrmrJpare'lc~

~~p#*lll:ess

2 1 I4 .
Iri order to ensure transparency in reporting and to sene the
intended objective of providing a feedback to cmpioyees to improve their
perfommce, partial openness may be desirable. For this purpose, the find
grading of employees, as recorded in the confidential reports, should be
conveyed to them Besides. grading of an employee as "Average" is as h m f u l
as ad\crsc entries in the reports This is sometimes resorted to by Reporting
Officcrs m order to owcome the associated problem of communicating an adverse
gading to the employee concerned and having to justifi such grading. In the
proccss. the employee rcported upon is denied the opportunity to bc aware of the
quality of his pcrfonnance and contribution, so as to enable him to improve or even
to represent against the grading In the circumstances, we are of the view that
grading of an employee as an average performer should be treatcd as adverse
and should be communicated. In fact, it may even be desirable to treat any
grading below the benchmark prescribed for promotion to the next higher
post as adverse and to communicate such grading t o the employee concerned
so as to afford him an opportunity to represent against an assessment that
mag adversely affect his career advancement. While receiving the

185

communication regarding an adverse entry or grading, the employee should also

have access to the Confidential report in its entirety.
Empfojwe

ApPraisu'fo
connnnous
process

With a view to securing greater objectivity in reporting and

ensuring that the Annual Confidential Reports are more focussed and contain
specific: and not vague or terse comments, assessment and appraisal of
employees' performance should be a continuous process. For this purpose,
officers responsible for reporting on their subordinates should maintain a
weekly or monthly record of their impressions about the performance and
contribution of subordinates, indicating interalia important achievements,
shortcomings, adherence to schedules for completion of specified tasks, ete.
21 15

.4ssrssment to
rncfude7eums
and deparftnent's
perjorniance

2 1.16
To be realistic and objective, performance appraisal should
not also confine itse1f;merely to an assessment of the traits and attributes of
an individual employee. It has to be recogniscd that an employee does not
function in isolation and that his performance and contribution are often influenced
by the team and work environment in which he is required to function. Reporting
and Reviewing Officers should, therefore, also ecdeavour to assess the
performance of an individual employee in the overall context of the
performance of his team including his individual performance and
contribution as compared to that of other team members, as well as the entire
office or department, identifying clearly the constraints in achieving the
stated goals and objectives. The employee should thereafter be graded,
assigning appropriate weightage for the contribution of the team and the
ofticeldepartment with reference to his own functional responsibilities.

Inconsistencies in
reporting

2 1.1 7
If the entries in the confidential report of an employee for any
particular year or period are inconsistent or entirely at variance with those
recorded in the reports of earlier years, which could be attributable to bias or
subjectivity on the part of the Reporting or Reviewing Officer, the employee
concerned should have the right to get himself transferred to work under
another Reviewing or Reporting Officer. In such a situation, the report in
question should not be taken into account for determining the employee's
suitability for promotion, increments, etc. However, if the reports for the
subsequent year or periods are also similarly adverse, the earlier report
should not be ignored.

Assessment of

2 1.18
Normally, Confidential Reports of the immediately preceding
five years alone should be considered by Departmental Promotion
Committees to assess the suitability of employees for career advancement and
other benefits, unless reference to reports of carlier years is considercd to bc
absolutcl!. essential.

suita6ifi!yfor

advancement and
orher benejts

Quitiquenniaf
Review

21 19
At present, an exclusivc rcliancc IS placed on thc Annual
Confidential Reports for assessing the personality traits and performance of
mdvidual cniploym For obwous reasons, thc rcports may not always reflect fully
all the achweinents and contribution of an employce or aspects of his functioning
that may not be cntlrcly complimentary or praiseworthy We are, therefore, of the
view that it would also be desitable to introduce a system of quinquennial
review of the performance of personnel in the Executive (Group 'A') cadres
by a group of officers. Apart from affording an opportunity to the cxeculivcs
conccrncd to prcsent their achievcmcnts bcforc tlic group and to dwell upon thc
186

constraints under which they havc had to function, such occasions should also be
utiliscd to apprise them of any adverse reports on iheir functioning as may have
bccn rcflccted in m d a rcpons, anon)mous complaints, etc. and to ascertain their
versions on such reports. In our opinion, the quinquennial review would reveal
iarious facts of an exccutivc's pcrsonaiity that are generally not discernible from
thc confidential report, howsocvcr objectively these may have bdcn witten. This
would also be useful in dctcrmining whether the executives concerned arc fit for
further retcntion in service or whether they should be compulsorily retired by
invoking the provisions of Fundamental Rule 56 (i). The group of officers to be
associatcd with the review should be senior to the executives concerned and should
have been closely associated with the departments or divisions ir which the
executives had worked during h e period to which it relates.
coIcflJ~lll,l~

21 20
Counselling of employees, which would be of particular
significance in the case of employees adversely reported upon. should also
form an integral part of performance appraisal. This could be donc b! a group
of officers intimately acquaintcd \\ ith the work of the Concerned cmployee,
including the Reporting and Revicn ing Officers The counselling would serve the
twinobjectives of providing the necessary feedback to the employees and
improving their future performance

DELAYS IN SUBMISSION OF REPORTS

\ Itxiwri*: IO
rlmwii~it~ic
d l

e h 5

21.21
A ma;or problem brought to our notice is that meetings of
Departmental Promotion Committees are not held in many cases because of tlie
non-availability of the Annual Confidential Reports attributable to thcir nonsubmission by the Reporting or Reviewing Officers, which results in promotion?
bcuig deferred,causing avoidablehardship to the employees concerned We are of
thc firm view that employees should not suffer because af the failure of the
Rcporting or Reviewing Officers to ensure timely finalisation of the appraisals
Apart from obtaining special reports in such cases, it should be ensured that
the schedule prescribed for the submission of self-apprraisals and confidential
reports i s scrupulously adhered to by all concerned. The concerned
employees should also be informed of the non-receipt of reports for any
particular period so that they could also make efforts to have them written.
The present instructions which envisage that the reports should be written
even if self-appraisals are not submitted by the employees to be reported
upon should be strictly enforced. Delays on the part of Reporting Officers
should also be adversely commented upon in their Confidential Reports.
Computerisation of data relating to Annual Confidential Reports of
employees by all departments wodd greatly facilitate proper monitoring and
follow-up action For ihis purpose, every office should establish a Confidential
Cell as has already been donc by certain orgmisations like thc Border Sccurit?
Force, which has set up a computcrised Personnel Management lnforniation
S!stcm.

187 :

I INTRODUCTION I
~

22. I
The problem of ensuring adequate career progression of the
employees in govemmcnt scrvicc is a perennial one that cvcn Pay Commission has
considered. Reasonablc promotion opportunities ranging from 2 to 4 promotions
in om's.Colreerhavc gcncrally been accepted as a norm. Similarly. the principlc that
the morc competcnt amongst the employxs should get fastcr promotion has also
become an accepted principle and is reflected in the adoption of the Limitcd
Departmental Competitivc Examination (LDCE) as a method of promotion by
different dcpartmcnts. Also, it is precisely on this considcratioii that a concept of
'selection' in promotion has been introduced as against the predominant method of
promotion by seniority subject to rejection of unfit, which is ;Cno\m as a 'NonSelection' method of promotion. A concept of bench-mark for grading of Annual
CunfidentialReports for promotim purposes has also been introdud with a view
to d n g that merit is given due @ d d m in promotion. However, is respect
of a majority of Government servants, promotion is enlircly depeident on
availability of vacancies in the him grades. b spite of the foimulation of detailed
principks to sift the brighter amongst the employees for providing faster
promotions, promotions arc made generally on seniority basis, as even in case of
selection,most oftiic employees are able to obtain thc requircd bcnch-mark in the
Confidential Report.

VIEWS OF PREVIOUS PAY COMMISSIONS

*

Sccotid C'PC

I88

\\as further rcgulatcd by prcscribing quotas for direct recruitmcnt and promotion
determined in the best interest of cfficicncy of the public servicc. Thc Second Pal
Commission. thcrcfore. gave prccedencc to the functional rcquiremcnt of pubilc
service over the career prospects of government scrvants for determining cadrc
structure of scrviccs
I'ttrrd t .fJ(.

I;olrrtll

C:Pc

22.3
The Third Pay Commission was f a d with the demand of
restructuring cadres so as to ensure at least two promotions in onc's career. It
considcrcd the position of Group 'C'and 'D'cadres as acute and made specific
rccommcndationsfot improvcment in their promotion pmpects, e.g. extension of
study leave to Group 'C' and 'D'employees. age relaxation, creation of posts of
Record Kcepers. review of the need for direct recruitment at certain internieciiatc
IcvcIs in Group 'C',hroduction of dcpartmcntal cxam/nations and increase in
existing promotion quotas. Thc Commission was, however, convinced that
addtionill posts should be justified on the basis of functional needs and should not
be created as an easy w a y of improving promotion prospects and for rclieoing
stagnation. Standard of recruitment was not recommended to be diluted merely to
open up promotion avenues.
22.4
For the problem of stagnation and inadquate promotion
opportunities,the Fourth Central Pay Commission suggested provision of a rational
cadre structure and elongated pay scales as solutions. Simultmeously, the
Commission also felt that the pstem of career progression should be consistent
with the functional needs and requirements of the organisation. It, thereforc,
refrained f?om laying down any rigid formulation about the number of promotions
that an employce should get in his career and the length of service that should
qualifi for'time-bound promotions. Cadre reviews were, therefore, recommended
after regular intervals with a view to idcntifjing the grades/posts which could be
upgraded taking into account their duties and responsibilities, consistent with the
riccd to promote efficiency in administration.

('orlrc. R C ~ ~ I C W 2
. ~1

As part of implementation of the recocimendations of the Fourth

CPC' dctilcd guidclines were issued by Government for conducting cadre rciicivs
of di fl'crciit scn.ices/cadres/organisatiotis.The main thnist of the guidelines was
that crcation of posts in a cn&c shodld not be solely for the purpose of improving
pron;otion opportunities but should also be consistent with the functional
rcquircment of thcsc posts and improvcmcnt In the cficicncy of the organisation.
Rcvicw of the necessity for the continuance of a post in a changed situation \vith
a view to abolishing all posts the continuance of which was no lonser justified. and
pro\.isionof matchins savings for meeting the additioml liability 011 account of a
cliilnge 111 the cadrc structure were sonic of the other broad principles that w r c LO
bc followd for cadrc ~wIe\\s.Bits& on these guidelines, cadrc revic\\:s in different
orgnisations, particulady in respect of posts in Groups 'B,'C'and 'D'were to bc
conducted by the respective adminisiratiCe mi~stries.-Initiativeswere takcti in
conducting such cadre rcvicus by di fferent ministries but the general espcricnce
in this regard as reported to the Conimission has not bcen very satisfactop
\Vhercver the cadrc revicw escrcisc was initiated, it took a long pcriod and
remained iticonclusivc. In a large number of organisations, no cadre rcviewvs'
4?3tsoevcr wcrc conducted. Coxccjucn!ly. prainotion prospec;* ur'a large
number of employees were not improved by the scheme of'cadre reviews
recommended by the Fourth CPC.

189

Parilioci o$Group
51 'Sqvices

22.6
Things have been a shadc better for the organiscd Group ' A
Central Scrvices, because thc Department of Personnel & Training, which is thc
nodal agency for personnel management policies, accepted the responsibility for
the periodic review of their cadre structure. The Department issued detailed
gudelines on various aspects of cadrc review of Gtoup 'A' Services However, the
position about cadre revicwr i c not cnifom cvcn in these Services. Whereas 3-4
cadre reviews had been conducted in a number of Group 'A' Central Services by
1992, only one or two cadrc reviews had bcen conducted in the comparatively
largcr number of other Group 'A' services.

Inadcquatc inlplemcntationofthe recommendations of the Fourth

CPC relating to the rationalisation of the cadre structure of diffcrcnt
organisations/cadreshas resulted in a sitGation where stagnation esists in diflercnt
cadres in large number of organisations. The situation has beconic con~parativcly
worse in respect of small cadres and isolated posts. Differences in the promotion
prospccts in various cadres and in different organisations and sometinics in
.different postdcadres in tlic same orgaiisation has led to a larse number of
demands about amelioration of Lhe situation and h most of the cases. a dcmand has
been made for the introduction of time-bound promotion schemcs. Availability of
tine-bound schemes in diffcrcnt organisations, such as the P&T, Rrtiltvays. Health,
Scientific Departments and ccrtain State Govemme;lts has given sucngth to this
demand. A re\iew of the existing promotion schemes in the State Govcmmcnts.
and in different departments of Central Gotemment is being prcsentcd here to
appmiate the background of the demand made by a large numbcr of employees for
providhg adequate promotions to them on a time bound basis.
22.7

I A REVIEW OF EXISTING PROMOTION SCHEMES 1

PosirrotI Ill .Stctte
C;o\ertmrrtrts

<;ovrrtinietrr

I!/

Hnjlrsrlrutt

( r m i * t ~ i m r,
t!
!~ /

It ;..%IF,*lr~cl/

22.8
In a good number of States like Arunachal Pradcsh, Kerala,
Rajasthan, Kamataka, Punjab, H q a n a and Himachal Pradesh. time-bound
promotion schemeshave been introduced In Arunachal Pradesh, all employees are
placed in the next higher grade afler completion of 13 years oC senice in a lower
grade. After another 7 years of service or a total of 20 years servicc,thcj*are
entitled to the next higher grade. Similarly, in Kamataka, threc: time-bound
promotions are provided after 10,20 and 25 years of service in lower grades. In
Punjab,Haryana and Himachal Pradesh, two time-bound promotions arc cnsured
aftcr completion of 8 years and I5 years of service in the Iowr gradcs

22.9
The Government of Rajasthan introduced a schemc of timc-bound
promotion in January, 1992. pcrniitting thrcx: selection gradcs to 11s ('lass IV.
ministerial and subordinate service employees and those holding isolatcd'posts on
completion of 9, 18 and 27 ycafs of senice. For eligibility under t!ic schcinc,
restrictions were imposed on its applicabiity to posts. the mclsimum of thc scalc of
which was Rs 3 2 0 as in 1989. Thc third sclcction grade is givcn only if thc first
two selection grades wcrc in scalcs of pay bclow h e scalc oi' Rs.2200-40OC
Selcclion grades arc giver? on!\.to those cmployccs whosc S C ~ I C Crccortl 15
'satisfactory'. Thc gait of sclcction yadc docs not affcct thc scriiority I;; thc cndrc
nor tlic sanctioned strength of each catcgoq of posts in the cadre

22 I {)
The Govcmrncnt of Wcst Bcngal introrfuccd a schcr?ic for
improvcrncnt of carccr pr~spcctsof its cmployccs in I000 I:ndcr ihis schcmc.

Governxpent employees were ellowed to move to the next two higher grades on
completion of 10 years and 20 years of satisfactory and continuoqs servicc.
However, when an employee becomes due for promotion in the normal course in
the fust higher scale with-reference to the current promotion policy and quota, he
will not be eligible for any fixatiorr benefit for the second time.
Govenrment o/
Gujaraf

22.1 1
The State Government of Gujarat introduced a scheme of three
time-bound promotions to higher grades for its employees in June, 1987 to deal
with the problem of stagnation and restricted chances of promotion in different
cadres. The scheme ims applicable to all posts having pay scales, the maximum of
which did not c x c d Rs.3500. Higher grades were to be given after completion
of 9, 18 and 27 years of service. The next higher grade was specified for each
grade for this piirpose In c a m where the promotion posts were in more than one
pay scalc, the Iswest of such scale was taken into account for permitting
promobons under the scheme. The applicable higher pay scalc were also specified
for posts not having any higher promotion grades. The scheme is limited in a
manner that the highest scale admissible under the scheme does not exceed
Rs.2500-4200 or Rs 2200-4000, which is admissible on pronotion from the scale
of Rs.2000-3500 The appointing authority for the posts carrying higher pay
scales is the authority who is competent to grant a higher pay scale to eligible
employees, provided the employee is fit for promotion on the basis of his overall
perfowance, qualification and passing of an examination wherever this is
prescribed. Any employee getting a higher pay scale is required to give an
undertaking that he will not refuse higher regular proinotion as and when it
becomes due and if he declines the promotion, he shall forfeit the right to hold the
higher pay scale under the scheme. The combined total cadre strengh continues
to be the same even after the grant of the higher pay scale and those granted higher
pay scales continue to perform the same duties.

Government 01

22.12
In Kerala, the scheme for time bound higher grades to State
Government employees was first introduced in 1973 and the scheme has been
further modified with effect from 1993. Three higher grades to be given &r
completionof 10,20 and 25 years of service are well defined. This scheme applies
to Group 'D' posts. However, those initial
ointed to posts in pay scales
ranging from Rs.950-1500 to Rs.2375-350
anted only t w time-bound
higher grades on completion of 12 years and 24 years of service. Those directly
recruited to posts in the scale of Rs.2200-4000 are given only one higher grade on
completion of 12 years of service. Besides, such appointees are entitled to this
benefit only if a qualified senior not directly recruited has been promoted under the
scheme. Those who are regularly promoted or appointed to a higher post within
the period specified for time-bound promotion to a higher grade arenot eligible for
the time-bound hrgher grade. In case the pay scale of the regular post is higher than
the time-bound higher grade prescribed, the pay on promotion to the regular post
is fixed with reference to the basic pay notionally arrived at in the lower post
Axmy service is reckoned for computing the qualifjhg servicc for the grant of the
first higher gradc However, civilian service in the Army is not coantcd.

Kernla

Position in

hhifs Secfor
I 'rrcL.rtakings

22.13

Information collected by us reveals that, no time-bound promotion

scheme exists in organisations like Hindustan Fertilizers Corporation Ltd.. indian

Overscas Bank,Engineering Projects (India) Limited, Maharashtra Antibiotics,

BHEL, Engineers India Limited ctc. Certain Public Sector Undertakings
(Hindustan Acronautics Ltd. and Mazagaon Dock)havc introduced time bound

promotion schemes but have restricted them only to lower levels, at the most up to
the clerical level. National Fertilizas Limited has introduced a five year promotion
scheme for workers who are allowed the ncst higher scalc on completion of 5 years
of service in the esisting scale, if they are not promoted in the normal course for
want of a vacancy Thc facility is allowed only oncc during the entire service
Employees up to thc level of Additiona! Managcrs arc dividd into trio goups
The promotions wthin thc group arc not related to vacancics but promotions from
one group to another arc made on the occurrcncc of vacancics In Rashtriya lspat
Nigam, the time-bound schcmc covers employees at junior Icvcl and 75% of the
incumbents in a gradc are provided the ncst highcr gradcs on meritorious
completion of three ycars of senice. Promotions to scnior/top Ic\.el posts are
vacancy b ascd
Eepormtrtit of
I'OSIS

22.14
In thc Department of Posts, a "Timc. Bound O X Promotion"
Scheme (TBOP)was introduced in the year 1983 for cmployccs in the basic
operative cadres, and the were placed in.the nest highcr gradc aftcr completion of
16 years of scmice subject to their being found fit by a DPC. The officials so
promoted continued t9 perform their earlier duties till such tinic as the:. wcrc placed
in regular supmisor). posts in their turn. The schcmc w a s subscqucntl!. estended
to the staff of administrativc offices and regional offices in the ficld in 1993 and
practically all operative Group 'C'and 'Demployees of thc department, excluding
officials of Inspectorial Cadre, Stenographers. somc isolatcd post holders having
analogous posts in other Dcparfmentshlinistries of thc Govcrnmcnt and Group ' D
staff of administrativeofficcs?were covered under thc Schcmc. Thc Department
of PosG introduced another scheme of promotion callcd " Bicnnial Cadre Review
" (BCR)for all the employees, who were covered under the carlier TBOP Scheme.
The review is done twice a year to provide a second promotion on completion of
26 years of service in the grade. The stated objective of thc scheme is to provide
promotion opportunities for the staff on the basis of functional justification. The
required number of posts needed for such promotion arc rclcased in half yearly
instaiments on 1st January and 1st July, to provide promotion to those who are
eligible. Creation of posts for the purpose is done by the Heads of Circles in
consultation with Integrated Financial Advisors. Matching Savings were provided
for introduction of the two schemes. For TBOP,5% reduction in operative posts
and 15% reduction'insupervisoryposts were offered, whereas in BCR, this cut was
1% and 5% respectively.
22.15
The promotion scheme in the Department of Posts changed the
principle of career progrcssion of Group 'C' and ' D staff and introduced a new
d\namics in personnel management and field operations Hithcrto. thc promotion
was linked to the post and with promotion the official \\'as assuming higher
responsibility alongwith availing himself of a highcr scalc of pa!, Thcre was clear
distinction betwecn opcrative and supervison posts \vhich ivas conducive for
command and control in field managmcent. Hoivcver, sincc thc number of
supervisory posts were vcry f x , nearly 92.5% of thc cmplo!ws in Group 'C' used
to retire in thc entry scalc of service The promotion schcnics ha1.c rcmcdied this
unsatisfactory situation to a great extent so that a Postal Assistant rccruited in thc
scale of pay of Rs.975-I660 is assured of gctting promotion to ncst highcr scales
of Rd400-2300 and Rs.1600-2660 after 16 and 26 ycars of'scnkc rcspcctiicly.
22 16
Thc department has, hotvcvcr, notcd ccrtain anomalics and
functionai problcrns i n thc iniplcmcntation of thc schcmc Whilc anornalics n'crc

of a transient nature, thc functional problcms arc causing conccrn to the

dcpartment. After introduction of BCR schemc, the supcnisory allowancc
attachcd to supervison.posts \\'as also discontinucd, leaving no diffcrcncc betwen
supcnisory and opcrativt:officials. This rcsultcd in a situation whcrc scniors wcrc
rcluctant to assume supewisory posts. This situation has. thcreforc. comprorniscd
thc systcm of close and purposcful supcrvision.

22.17
Introduction of TBOP and BCR schemes in thc dcpartmcnt has
had a mixed effect. Whle it ensured reasonable career progrcssion for cmplo>'ccs,
it also brought certain operational problems. The Department IS t q h g to
overcome these problems by modermsing services, inducting tcchnolog,. upgrading
skills, ek. The department is also trying to build in a distinct supenison. cadrc to
man supervisory posts by a merit-based fast track promotion, to mcritorious
officials. who upgrade their skills and acquire new skills.
/ ) l ~ ; ~ < l r mqf
olt
t~twll\l

22. 18
Ministry of Health and Family Welfare has introduced a time
bound promotion scheme for its Doctors including various sub-cadres of Central
Health Services. In case of General Duty Medical Officer, whose cadre structure
is on'thc lines of an organised Group 'A' Service, promotion is ensured up to the
level of Chief Medical Officer (Rs.3700-5000) in a total period of 10 years.
Promotion to the level of Senior Medical Oficer is ensured in four years, while
another 6 years are n d e d for promotion to Chief Medical Officer (Rs.3700-5000)
level. An alternative of a combined service of 10 years Df which at least 2 'years
should be as Senior iMedica1 Officer is also provided. Promotions to nest higher
grades are without any consideration about availability of posts in the higher grade.
Thus, if an officer is promoted,the post held by him is automatically upgraded.
The promotion to the higher grade is made on seniority-cumfitness basis of those
who clear the bench mark of 'Good'.Promotion to the grade of Rs.4500-5700is
restricted to 15% of senior duty posts i.e. all duty posts at the level of Senior Time
Scale and above. This provision in CHS is at par with the provision in other
organised Group '& Services.

In cases of other specialist sub-cadres, where induction is directly

22.19
at thc level of RS.3000-jOOO, a time-bound promotion is ensured upto the level of
Rs.4500-5700within a period of 8 years. This is in consideration of the fact that
recruitment to Specialist Grade I1 officers is made in the pay scale of
Rs.3000-5000 with a postgraduate qualification in Medicine and an additional
three years' experience after obtaining the postgraduate degree. Al: Specialist
Grade I1 Officers rccruitcd in the pay scale of Rs.3OOO-jO00arc promoted to the
scale of Rs.3700-5000on completion of 2 years of senice, subject to scniorihcum-fitness. Thc nest higher grade of Rs.4500-5700is giwn to thcm on
completion of 8 years of service as Specialist Grade 11. Promotion to this level is
made without any consideration about availability of vacancies.
DL.ycir/ttreti/of
f'r""'l"o'l-

.\le~frc.ol
Scirt1/ists

22.20
The Supreme Court in Writ Petition (Civil) No. I0 I8 of 1989,
Dr. Ms.O.Z. Hussain versus Union of India gave a direction for pro\.ision of
promotion avenues on similar fines to Group 'A' Gazetted Non-Medical Scientists
working in different' organisations under the Ministry of Health' and Faniily
Welfare. Tkc MinisQ of I.Icalth and Family Welfare, thcrcfore, formulated the
Department of Health (Group 'A' - Gazetted Non-Medical Scientific and Technical
Posts) In-situ Promotion Rules, 1990. The scheme organised all Group 'A'
Scicntists and Technical Officers who were working on regular basis on thc date
193

of commcIlctmult of the scheme into a cadre and divided thcm into four levels
namely Scientist Level 1 (Rs.2200-4000), Scientist Level 2 (Rs.3000-4500),
Scientist Level 3 (Rs.3700-5000)and Scientist Level 4 (Rs.4500-5700)for the
limited purpose of applying the in-situ promotion scheme to thcm.
22.21
The schenic pizvidcs for iii-sku promotion to a scientific or
technicalofficer holding a Group 'A' post up to and including the grade of Scientist
Level 4 in the pay scale of Rs.4500-5700.A five year period is prescribed for
promotion from onc level to mothcr. In addition, the scheme also provides for 8
floatingposts in Scientist level 5 in the scale of Rs.5900-6700and those having a
minimum of three years service in the scale of Rs.4500-5700are eligible for
pmotion to thesc posts. Whcrevcr an Off~iceris promoted under thcse rules, the
grade of the post immcdiatcly hcld by him is upgraded to the nest higher level to
which he has been promoted. The post, however. reverts to thc original level on its
vacation by the oficer holding it. In cases where an oficcr continues to get
promoted to hgher grades, the post vacated by him reverts to the level of original
recruitment to the posts.

Enrpanelmentfor
JnittrSecre'a~

Empanelment fw
Additional
Secretmy'
Sperm1 Secretan,
Secretaty

PROCEDURE FOR EMPANELMENT FOR SENIOR AND MIDDLE

MANAGEMENT POSTS

22-22
There is a practice of drawing up a suitability list (known as
panel) of eligible oflicers from the All India Services and Group 'A' Services
participating in the Central Staffing Scheme. This exercise is normally conducted
on an a n n d basis, by consideringofficers with the same year of allotment together
as one group. At the level of posts of Joint Secretaq and equivalent, the Civil
Services Board (CSB) finalises the panel for submission to the Appointments
Committeeof the Cabinet (ACC). In this wok, the CSB is assisted by a Screening
committeeof Secretaries. Thc panel approved by the ACC on the recommendation
of the CSB is utilised for making appointments to posts under the Government of
India, but inclusion in the panel does not confct any right to such appointment
unde~the Centre. Such appointments for posts of Director and above have to be
again approved by the ACC. The cases ofsuch officers who are not included in
any panel in a particular year are reviewed after a period of two years. Another
such review can be conducted &er a further penod of two ycars. A special review
can also be ma& in the case of any oflicer whose Confidential Report undergoes
a material change as a result of representation being accepted against recording of
adverse commentsin hs Confidential Report. The cadrc controlling authorities are
informed about the namcs of Officers under their administrative control, as and
when they are included in the panel. Stringent criteria of selection arc applied to
members of all the services.

22.23

Selection for inclusion on the panel of oflicers adjudged suitable

for appointment to thc posts of Adhtional Secretary or Spccial SccrctapdSecretary
to the Government of India and posts equivalcnt thereto is approvcd by thc ACC
on the basis of proposals submittcd by the Cabinet Sccrctae. Thc Cabinet
Secretary is assisted by a Special Committee of Secrclarics for drawing up
proposals for considcration of the ACC. Panels of suitablc officcrs arc drawn up
on an annual basis, considering all oiliccrs of a particular ).car of allotment from
one service togcthcr as a group. lnclusion in such p a d s is doric through thc
process of strict sclcction and cvaluation of such qualitics as mcrit. compctcncc

lcadership and a flair for participating in the poliq-making proccss.

I:'Iipklifi to
' r u l d ~ * r rd1
c s.
DS Director uttd
JS

22.24
For manning thc posts of Under Secrehuy, Deputy Secretary,
Director and Joint sarctary, the clighility of offictrs for holding thesc posts starts
when they havc completcd 5 yxrs, 9 ycars, 14 years and 17 +ars of servicc in
group *A@,
irrespective of the service to which they belong.

IN SITU PROMOTION
Career
ah*t=~tfm
Groups T'and

'LYcmplr+wes

22.25
A sdremt of in-situ pnwnotron for Groups'C' and 'D'empbyax
was introduocd in I 99I to provide at Icast onegmnotion grad^ to those who are
directly recruited to a Group 'C' or *D'
post and who could not get a promotiOn
wen aftcrreadungthe maKimmof the scale. such persons are placed in the next
higher grade available in their nmnd lint of promotion a f k following due proctss
of promotion. In cases where a post is filled both by direct recruitment and
promotion, a promoted employee senior to a directly recruited one will also @
promoted in case a pusonjunior to him is promoted to a highcr scale under the
scheme. The scheme is also cxt#ldcd to industrial workers. This is in fact a
scheme for removal of staptma and can hardly be regarded as a career
advancement or promotion scheme.

FLEXIBLE COMPLEMENTINGSCHEME
GCtIeral

22.26
A Flexible- C
. schant(FC3)wasmtrOQIcadin 1983
on the recommendation of the Third Central Pay Commission to ensure that
promotion of an offccr in a Scientifm Scrvict h n one grade to die next higher
grade took place after a prcscnbcd period of service on the basis of merit and
ability imspc&ve ofthe availability of a vacancy m the higher grade. The scheme
is available now in many of the seimtific depsrtments,organisations and
institutions under the Govcmment of India. The Scheme was originally made
applicable to pwuMncl in three critical scales ( Jrplior Time Scale, Senior Time
Scale, and Junior Administrative Grade in Group
scrvidcadrts). In
csccptional cases, it was also extended up to personnel in the non-functional
stledion Gr& (Rs.4500-5700).The cadrc strength of the entire cadre wvas fixed
on the basis of functional grounds and there was complete interchangeability of
posts beh\ccn JTS and STS p v i d e d number of incumbents in the two grades put
together did not esceed the combined strength of tww grades. The upward
nmvenmt to JAG was also without any refto availability of vacancies but
it was subject to the condition that total number of posts so filled in the grade did
not exceed 30% of the total strength of the cadrt upto J'AG level. In case the
scheme isas cctarded to NFSG Icvel, the total number of posts that could be filled
in thc grade wvm ngain 30% of the combined strength of JAG and NFSG put
togethcr.

Promotion
-omredwe

22.27
promotiOn under the scheme was made on the basis of 5 yearly
asscsslncnt of eiigible Otficers by a Board, which Bssesscd the technical
performance on the basis of quantity and quality of research and even conducted
an interview forthcprrrpost. Promotion was made in situ and was personal to the
concanedofficcr and did not result in any vacancy in the lo'RmfgracJc. Thepost,

195

howcvcr, rcvcrlcd to the original level once it was vacated at higher !evel.
11Nwbacks

22.28
'The Schcme was fiuther modified by many d e p m c n t s later to
provide fill1 flexibility by removing restriction on the number of posts and now
prwides carax progression from the gradc of Rs. 22004000 uplo the h e 1 of Rs.
. .
5900-7300, coveriiig 5 -? x t k s i;. Sfcrciii i;-. giiIiis&utli
ccrtaln dcpartments
like Space, Atomic Energ; imd DRDO,the scheme had been cstendcd at Icvcls
other than Group 'A' also. Howcvcr, only a limited flexibility is allowed in other
grades as against full flcsibility in Group 'A' Services. Thc scheme, Lhcreforc,
suffers from drawbacks likc non-uniform application, differences in Ic\*cl of
appiication, variation in thc period of review (rcsidency pcriod), cstcnsion of
schemc to directly rccruitcd scientists in the Sccrctariat organisrttiom. etc.

I OUR
Assured Career
Progressioir
Scheme

RECOMMENDATlONS

It is clear from thc foregoing paragraphs that at prcscnt there is

a proliferation of different trpcs of promotion schcmcs in diffcrcnt dcpartmcnts.
The basic trend of these schemes is, however, to provide an assurcd progression or
in-situ promotion on personal basis to all the employees who havc rcndcrcd a
specified period of service. This trend is seen for all categories of posts. but in
some Ministries like Ministn of Health, in-situ promotion schcnic has bccn
formulated only for Group 'A' Scientrsts whereas in some other Ministries likc
Departlnent of Posts,a promotion scheme has been formulated only for Group 'C'
operational staff. Esistence of such promotional schmes only for ccrtain section
of employees in certain selected Department has generated a feeling of
discontentment in the Central Government employees at large. Moreowr,
existcnce of time bound promotion schemes m diffacnt State Governments has
also added to the feeling. of discontentment in Central Government employees.

22.29

We, therefore, strongty feel that Government should.formulate a promotion

scheme which .should cater to the promotion aspirations of Central
Government employees in general belonging to difftent categories across the
Ministries and Department.
Application to

R&D
Professionals

22.30.
In the above context, we recommend that the Flexible
Compkmenting Scheme of promotion should be extended to all Research and
Development Professionals working in Research and Development
Organisations and Departments dtclarad as Scientific and Technical in
Government of India. Thc csisting Flexibte Complementing Schcmc has been
examined by us in this contest and modifications have bum proposed separately
while dealing with Scientific and Technical Services.

For all dhcr Ccnlral Govcmment employces, wc recommend that

a comprehemive and coherent promotion scheme should be evolved which could
assm adequate career progrcssion in a reasonable time frame to all catcgorics of
mployees. The basic fcaturcs of-thisAssured Career Progrcssion (ACP) Scheme
have been worked out by us and arc contained in the AMCSC 22.1. Thc
rccommcndcd ACP Schcme aims at providing a minimum of two promotions to
c x h Group 'B','C'and ' D cniploycc and thrcc promotions to cadi Group 'A'
cmployec, in thcir cntirc cxccr span, aflcr appointmcnt in a gradc on dircct
recruitment basis. Thc proposcd promotion under thc schcmc shall. howcvcr, bc
rcstrickd to financial upgradation in thc pay scale alonc and stiall not be linked to
22.31

the availability of a potit in a highcr grade on functional basis. The scheme will
provide reasonablc opportunity to all employees to move to highcr grades, within
a stipulated time frame.
Cndre Review

22.32
Introduction of thc Assured Career Progression Schcme (ACP)
shall howcvcr not cnd the need for adcquntc promotion avcnucs in otie's cadrc.
bascd on availability of highcr posts in thc hicrxchy. Thc nccd for regular cadre
reviews of each servicddepartment, as recommended by the Fourth CPC shall
COntinLte to hold good. The Department of Personnel and Training (DOP&T) has
already issued detailed guidelines on cadre management of Group 'A' Central
Services. The DOP&T itself conducts cadre reviews periodically once in 5 ycars,
and as per latest decision of the Committeeof Secretaries, this is to be done to cater
to the functional needs of the service and career qspirations of its m e m h .
Demands have been made to the Commission for periodical and speadler cadre
reviews for all ServicedDepartments in a manner that they meet the career
aspirations of the employees and remove inter-service disparities in promotion
prospects. We, therefore, recommend that the cadre review mechanism
should be reviewed so as to bring uniformity in the career prospects 01dl
Group 'A' Central Services.

The pdelines issued by the DOPBtT for cadre review of Group

'A' Central Serwces are very elaborate and contain specific directions for ensuring
the pyramidal structure of the cadre, appropriate structural ratios of different
grades to provide adequate career prospects, threshold analysis to make an
assessment of thc future promotion pmpccts, provision of Probation Reserve,
Leave Rcserve, Traning Reserve, Deputation Reserve etc. In comparison to these
guidelines, the orders issued for cadre reviews of Groups B',
and 'Dposts arc
very inadequate and prescribe only broad principles with an added emphasis on
provision of matching sdvings. This results in a situation where adequate cadre
reviews are not being conducted by ministries and departments and wherever cadre
reviews are Llndertakcn, they take comparativelya very long time and in many cases
cadre review proposds ore not even approved finally. Creation of posts as part of
cadre reviews are brought within the purview of the ban on creation of posts and
these pfoposals consequentlynever see the light of the day The DOP&T should,
therefore, issue detailed guidelines for the purpose of cadre reviews of
Groups 'B' and 'C'and ' D posts so as to ensure that these are conducted
within a specified time frame and are not subjected to routine examination at
different IeGels in the Ministry, once the review is conducted in accordance
with the guidelines and by a committee having a representative of the
Integrated Finance Division
22.33

'c'

Cndrr &view
sliould reveal

srtrplns

Ixw&I'
revirw

cadre

22.34
The Cadre review exercise should also take into account our
general recommendations on right-sizing of manpower in Government. Since
in a time frame of 10 years, a rcduction of 30% of thc esisting rnanpowcr is
recommendcd, the cadre reviews should ensure that an across the board
reduction of 3% of the manpower per year is achieved. Surplus manpower
should, therefore, be identified as part of the cadre review exercise.
22.35
The DOP&T Training should also assume the responsibiIity for
monitoring the progress of cadre reviews of diffment offices and different cadres
under the Ministries so as to ensure that these are conducted every 5 years. In
respect of those Group 'B'and 'C cadres, which are spread over in different
197

ministrieddepartments and whose higher posts are ultimately centralised and

recruitment
to
them
is made
through
a
common
selection/examination/limitcd Departmental Examination, the DOP&T
should assume the responsibility for coordinating the cadre reviews, which
may be done concurrently for all the concerned Ministries/Departments.
We also recommend that the holding of a cadre review every
five years should be included in the cadre rules of every service, so that the
matter becomes justiciable and can be taken to a Court of Law by any section
of employees that is aggrieved on this account.

22.36
Making cadre
review

jwticia ble

22.37
The existing mechanism of work study by the Staff Inspection
Unit of the Department of Expenditureshould be dovetailed with the exercise
of cadre review so that work-studies and cadre reviews are conducted
concurrently by maintaining a balance in the functional requirements of a
post and the career aspirations of the members of the cadre. In this context,
it may be desirable to transfer the Staff Inspection Unit functions to
Department of Administrative Reforms
Selection Grade

22.38
Provision of selection grades has been it moderating mechanism
through which disparities in promotion prospects available in comparable grades
were removed. The Fourth CPC, howeser, recommended its discontinuance in
general and for group 'C'and 'Dposts in particular and suggested provision for
stagnation increment. The need for selection grade shall further diminish in thc
context of the Assured Career Progression (ACP) scheme recommended by us.
However,in certain services the nomenclatureof Selection Grade is uscd ordinarily
to represent a tier of the organised cadre./structure, e.g. Non-Functional Selection
Grade, Selection Grade in CSS (Rs.3700-5O00) or Commandant (Selection Grade)
in Central Police Organisations, etc. Selection Grades in such form may
continue for the prestnt but these also need to be reviewed. We would urge
the Government to conduct this review immediately so as to do away with the
concept of Selection Grade altogether.

Stagnation

22.39
RatianalisariOnof pay scales and the'Assured Career Progression
Scheme, rccammendi;dby us would considerably d u c e the need for stagnation
inazments. Hovmer, in certain cascs,stagnation at the maximum of the pay scale
may still occur. As such, after considcring thc demands made for liberalising the
provsion for sanction of stagnation increrncnts, we recommend that the existing
rules for grant of stagnation increments should continue. In case of
Executives, the facility should be available only to the grades to which it is
already available, subject to the condition that the basic pay plus the
stagnation increment should not exceed Rs.22,000/- per month in the revised
scales of pay.

In-nt

22.40
In the context of acute stagnation at various levels, a demand has
bear made to the Commission to incrcasc thc promotion quotas in differcnt gradcs.
particularly those in the higher grades. Dcmand has also been made that uacancics
undcr direct rccruitmcnt quota being not filled duc to ban on rccruitmcnt should bc
divcrlcd to promotion quota In this rcgard. wc fccl that it is not possiblc to niakc
any gcncral recommcndation to incrcasc thc promotion quota, as proportion of
promotion and dircct rccruitmcnt in any post/gradc is dcpcndcnt upon thc strcngth
of fdag d c . Howcvcr, a frcsh look can bc givcn to thc proporlion of promotion
1ox

at various grades in dilrcrcnt smices and it may be rcvised dcpcnding on the

situation of the cadre and in thc overdl context of maintaining cfficicnq. It may
also be ensured that direct recruitment is not generally resorted to at two
successive grades in a cadre. If it is so provided in the rules, the 'direct
recruitment' to its higher grade should be changed to 'promotion', provided
it does not affect the quality and functional needs of the cadrdorganisation.
1.wluledpurLr

22 41

Promotiono p ~ t i t to
s thost holdingisolated posts arc almost
mn-&tmt. S& such isolated posts are filled by dircct recruitment. incumbents
of these posts generallv retire in the same post to which they \wwe recruited.
Repnsa&im have
reoeival by the Commission that in many cases, isolated
posts'& created even when the nature of duties assigned to the post arc simlar to
those of a cadre post We, therefoft, f d that as a matter of policy, no isolated
post should be created sanctioned in htumin Government. Posts sanctioned
by MiiristrieslDep.rtmentsshould always be a part of some organised cadre.
I f cnltion of a single post is indispensable, and it cannot be part of an

organised cadre in the Ministry, efforts should be made to encadrc such a

post in an organiscd cadre misting in some other Department/Ministry. Such
an attempt needs to be made even now and Ministries/Departments should
review tbt isolated posts &fh a view to encadre them in an o r g a n i d cadre
i n t k M i w or outside it. In case creation of an isolated post
becomes indispensable, the two higher scales to be given in a time bound
manner under the Assured C a y r prSrtssion scheme should be indicated in
the orders for creation of the po& itself.

22.42.
In the Assured Career Pmgession Scheme (ACP), wc have made
a provision fix fmancial upgradation to higher scale, even when there is no d e f d
hierarchy and we have termed it as dyqamic ACP. The dynamic Assured Carecr
Progression Scheme shall apply to isolated posts. We have tried to identie two
higher pay scales for each isolated post wherever feasible and whcfcvcr a demand
for improvement in promotion pmspccts has been made to the Commission.
Specificdesignations in tcrms of grades have also been indicated for such higher
scales. Howcver, if in ccttain cases, it has not been possible. !he
Ministry/Depattmcnt conccmed shall identi@ such scales on the basis of similar
posts in other departments for which we hme identified the higher scales. While
doing so, the different patterns approved for Secretariat and subordinate offices
should be kept in view. In case of Croup 'A' isolated posts, the next three
promotional scales shall be Senior Time Scale (Rs.3000-4500), Junior
Administrative Grade (Rs.3700-5000)and Non-Functional Selection Grade
(Rs.4500-5700).
H n I r . ~01
~ f i r ~ ~ t ir!fo t i

p l y or1
promotion

22.43
Dcmaiids haw bccn rcccived by thc Commission that financial
be&fits on promotion arc ven. nominal and dlcy ought to bc rcviscd; a minimum
of-IO%oddition in thc blsic pay should be ensured in casc of a promotion. Wc iue
of the view that thc minimum financial bcncfit on promotion should bc around 3%
of thc basic pay of thc cniploycc. The rule fm fixation of pay on promotion may
be amendcd to provide an addition of 3% of basic pay in the lower grade or one
incrunenl in lhc lo\\cr gradc whichever is higher, and then fixation at the next
stage in the higher pay scale This method should be applicable in all cases
where an employee is given a higher pay scale irrespective of the fact whether
assumption of higher responsibilities is involved or not.
199

Annexe 22.1

(Refer Para 22.3

Basic Features Q f J s s q d - G a L p r Progression (ACP) Scheme
wcommended for Centrrl Government emdovees
(1)

Every employee, recruited in a particular graddscale of pay

shall be allowed to move to his respective and specified
higher scales on completion of specified period of residency
in the lower pay scale, svbject to fulfilment o f usual norms of
promotion. If this tnvolvcs passing of a trade or departmental

test or acquisitioii of a htghcr qualifications. that prc-rcquisitc

would have to be fulfilled before thc bcnefit of ACP is given
(iij

On placement in the next higher grade, the incumbent shall

continue t o perform duties of his original post and will
continue t o hold the old designation, till such time as he i s
actually promoted to the higher grade on the occurrence of
a vacancy. I n case of isolated posts, the post held by an
individual shall get upgraded to the next higher grade but
shall be filled at i t s original level, when vacated.

(hi)

Placement in the higher grade will entail only the financial

benefit of the higher pay scale and associated entitlements
like HBA, allotment of government accommodation,
advances, etc. Other cntitlcmcnts like invitation to CCTCIIIO~II~!
fmctions, deputation to highcr posts, ctc which arc generally
dependent on the status of thc cmployce shall contiiiuc to bc

deteminedwith ref-

to hs lower/substantive postlpay scale

(iv)

The number of financial upgradations to which an employee

shall be eligible under the Assured Career Progression
Scheme shall be two; in the case of non-executives, while in
the case o f executives, the number will be three.

(v)

The highest pay scale up to which the proposed financial

upgradation shall be available will be Rs.4500-5700,i.e up to
the present "on-Functional Sclcction grade' in organised Group

'A' Services. Bcyond this level, there shall bc no financial

upgradation and higher .posts shall be filled strictly OR uacanc?
basis.

ivi)

The anplovecs recruited at junior and middle Esccutivc Icvcls in

the junior timc scak (Rs.2200-4000)
will gct thc scnior timc scale
in a pcriod of 4 ycius. Thc Junior Administrattvc Gradc
(Rs.3700-5000)
will bc avatlablc to thcm in anothcr fivc years
tinx Thcncst highcr gradc of Rs.4500-5700will bc providcd in
anothcr pcriod of 5 ycnrs. As such, a person recruited in the
junior time scale will be able to attain the level o f Se.nior

200

.1..ime Scale in the 5th year, Junior Administrative Grade in

the 9th year and NFS Grade (Rs.4-SOO-9700) in the 14th year.
This will be applicable uniformty to all organised Group *.A'
Services and Group 'A' posts for which direct recruitment is
nude at the level of Rs.2200-4000.
(vii)

In case of Groups 'B' 'C' and 'D'employees, first financial

upgradation shall be available on completion of 8th, 10th and
1Z t h year of service respectively, providcd thc crnployee fulfils
all the conditions for promotion to the higher grade and the
cniployee has not got thc vacancy bascd functional promotion,
during this period. The second financial upgradation in case
of Groups .B', 'C' and 'D" employees shall be given on
completion of a further period of 8, 10 and I t years
respectively.

(\~iil)

Financial upgradation to be given under the proposed

Assured Career Progression Scheme will be in the next
higher grade in accordance with the existing hierarchy in a
cadrdcategory of posts. In cases of isolated posts, which do
not have defined hierarchical grades, the two ACP grades
shall need to be specified in respect of each such post and
financial. upgradation shall be given even when the higher
scale does not form part of the defined hierarchy. Such
upgradation shall be knawn as Dynamic Assured C a m r
Progression Scheme. In case of common category posts, the
two higher grades should be defined for all the departments
under Central Government Dynamic ACP wvdl also apply in
cascs where an intermediate scalc has been introduced without
thcrc bcing any redistribution of posts into that scale This
should be an interim measure. so that upgadation takes place
uith that scale wthout a post bcing awailable, but the attempt
should be to meanwhile upgrade some posts to the newly
inuoduccd scale, so that it can become a normal scale to which a
normal ACP on functional promotion can apply

(is)

l h e numbcr of fiiiancial upgradations to bc giten shall be

coimtcd from the gradc whcrc an cniployec \vas inducted on direct
rccruitnicnt basis. The numbcr of finnncial upgradations shall be
strictly adhered to and thcrc shall no additional financial
upgradation for a senior cmploycc on thc ground that a junior
direct recruit in thc gradc got higher scale iindcr ACP Scheme.

On promotion to the next higher grade under the Assured

Career Progression Scheme, the full benefit of pay fixation in
the higher scale as in case of a promotion in a higher grade
shall be given. Thus, on actual promotion in the higher scale
on occiirrence of a vacancy, no fcrther financial benefit shall
~ crue.
c
(xi)

'fhe higher grade under this scheme shall not be given to

20 I

those who had declined regular promotion earlier. In cascs

where a person who has been placed in a higher pay scale under
the scheme refuses functional promotion involving higher
responsibilities on the actual occurrence of the vacancy, the
emplqcc shall be feverted to the lower pay scale. As such, whik
giving the higher pay scale under the scheme. an undertaking
should be taken that the employee shall occupy the regular
promotion on occurrence of the vacancy, and in case he
refuses to accept the higher post, he shall be kept out of the
'Assured Career Progression Scheme.'
(xii)

In case of an cinployee declared surplus in his organisation and in

case of transfers including unilateral transfer on request, the
services rendered by him in the depmment shall be counted along
with his semice in his new dcparttncnt for the purpose of giving
financial upgradation under the Scheme

(xiii)

Introduction of the Assured Career Progression Scheme

should in no case affect the normal promotion avenues
available on the basis of vacancies. Attempts needed to
improve the promotion prospects in an organisation on
functionar grounds by way of organisational study, cadre
reviews, etc. should not be given up on the ground that the
Assured Career Progression Scheme has been introduced.
Rather, one of the brief objectives of cadre revie\vs should be to
ensure that financial promotions are available within the
residency periods prescribed under this Scheme for the purpose
of grant of higher scale, wherever this is feasible without
disturbing the administrative hierarchy of the department.

202

Motivation is the inner urge to put in oncs best. It is the real

23. I
catalyst of action.
23.2
Motivation lcvcls can be improved by external props like s a l w
Icvcls, cash incentivcs,promotion policy, work environment and so on. Thesc have
bcen touched upon in the various chapters.
Thcrc is an area of non-financial and non-csternal props for
23.3
motivation. It is these that wc wll try to csplore in this chapter.

W H Y CHOOSE GOVERNMENT SERVICE As A CAREER

23.4
If one probes the question of why people choose Government
service as a career, one wGdd come across a variety of motives. Many of the
motives are sub-conscious and probably only half-articulated. There are subtle
forces at work here.
23.5
A number of people join the Govcmment becausc it represents
power, authority, status, the majesty of the law, rulership, being a pan of the
govcrning class. Therc arc those who are in the Go\ernmat because thcy are
prepared to serve an anonymous employer called the State but not an individual
called Lala Kanshi Ram. Others arc in Government service because it is the only
way they can serve the natim<the country, the poor, the illiterate. the starving
millions. Some have a predilection for carccrs that exist only in thc Governmcnt.
Thcy want to don thc uniform of a soldicr or a policeman, fly a fighter aircraft or
bc an admiral of the flcct.
It is ncccssq to appreciatc all this, with a vicw.10 ccrtairi points
23.6
for action mcntioned hercaftcr.

23 7
Wc should targct pcoplc ai \uungcr agcs. whcrr thc! arc still frcsh
from collcgc. thcy havc not lost tlrcir idcalisin. thcy arc not ovcnvhclmcd \vith thc
carcs of faniily.

23 m
In our targct z.udic;icc for carccr counsclling. wc must go for
young pcoplc who want to mmc into Govcrnmcnt smicc as thc best method of
puttmg in public servicc That is why Government scrvicc should ncvcr pay a
luxurious salary that may attraci thc wrong type of person
Once a pcrson i; recruited, there should be a clcar policy to subject
academic and pracbcal tests during his probation period, so that any
wrongly motivated persons who rmght have been able to smugglc thcrnsclves in can
bc got rid of with comparative case.

23.9
h m to -in

23.10
Thc non-monctay symbols of authority that cstablish the position
of an executive in the Government as a member of a ruling elite should not be
jettisoned. It is these outer c m b l ~ sthat create prcstigc and honour for
Govemmcnt assignments. Govcrnmcnt officials should bc treated with courtesy
and dignity,and not be SubJeded to public ridicule. That is why it is n e c e s s q not
to allow politicians to transfer senior officials prcmaturely without sufficient
reason.That is why there should be no senior posts in Gomnmcnt that have just
the pay and nothing else.
23.11
For civilian services too, thcrc should be a mechanism of nonmonetary rewards, as is prevalent in the military and police services. Fulsome
praise in public docs not cost anything, but it can be a vcq strong motivational
factor. All supen,isorsshould be t r d in the use of praisc. Therc should also be
Dstinguished Senice Awards and Extraordinary Servicc Awards for civilians, so
that they feel honoured for a life-time of dcvotcd scnricc as also for any highly
innovative and extraordinary act of theirs.

23.12
It has bear seen that leaderswho are positivc, dynamic, forthnght,
innovative, adaptable, enthusiastic, optimistic and willing to lcarn can provide a
tremendous momentum to any crganisation or institution that they lead. It is
unfortunate but true that in Government it is persons who arc negative, static,
tactrl, status quoist, rigid, sedate, pessimistic and pretending to be know-alls who
survive and reach the top. If we want the fmt variety of motivated people to be the
e have to hunt for thcm, choose them, protect thcm, encourage them and
leaders, w
lct them go ahead to do their own thing.

Our recommendations with regard to motivation lcvcls are

contained in the succeeding paragraphs.
23.13

23 14
The age of entry to the Civil Services Examination should be
kept between 21 and 24 years, PS it used to be in the past Mcmbcrs of SCs:
STs OBCs ctc should, howcvcr, continuc to bc cligiblc for thc age rclaxations as
at prcscnt, with rcfcrcncc to the proposed ages of cntry Similar attcmpts to lower
thc agc of cntry should bc madc for all scn.iccs, cspccially at thc cxccutivc le\d

: 204

\Vc havc alrcad!. pegged the salaries at a level lower than the
private sector so as to ciicouragc only public-spiritcd pcrsons to choosc
Govemnicnt scnicc as a carccr
2 3 15

23 10
Psychological tests arc king uscd in thc dcfcncc scn*iccs,but not
on thc civilian sidc Thew should be introduced, both at the time of initial
selection as also later dunng thc training and probation period Acts of omission
and commission dmng thc probation pmod should bc taken serious noticc of
23.17
Wc haw suggcsted tha: premature transfers of ofiictrs should
not be allowed, accpt in accordance with the rccommndations of a Civil Scrviccs
Board. Wc havc also suggestd the abolition of ccrtain posts of Secretaries which
arc more in thc nature of sinecures than pmpcr postings. We belicvc that posts likc
that of !hcmhry, Mmoritics Commission, Secrclary, Intcr-State Council or
S c c r e t e , Official Languagc do not carry even fiflcen minutcs' work. Such
c.amples can bc multiplicd at i l l lcvcls of Govcrnrncnt. So long as such jobs are
a l l c x d to continue in Govcmcnt, it is easy for anyone to demoralize an upright
officer. by posting him to one of thcsc pleasant sinccures. Such posts should bc
assiduously identified and abolished forthwith. We must make the worth of
charge of different posts of equivalent rank almost equal.

23 18
Distinguished Service Awards and Extraordinary Service
Awards should be instituted in all Government departments There should bc
a mechanism so that pcople at all lcvcls havc some Award or the other to looh
fmwd to These Awards should be eonfcrrcd after due deliberation. so that only
the deserving get thcm These should bc prescntcd to thc rccipients in public
functions b) high dipitarics
23 19
Wc must changc our cntirc way of looking at Government
officers Their chid quality should be that they can get things done, in the shortest
possible tune with the minimum inputs Everything in the system whether it is
recruitment policy or transfer policy, performance appraisal or promotion,
should be geared towards the emergence of what may be termed as
Administrative Entrepreneurs, people who are prepared to take risks and
stick out their necks for:the public weal.

23 20
It IS il mix of estcrnal props and internal props that can really
niotrvatc thc right peoplc to cntcr Govcrnrncnt senicc and remain thcre We havc
only suggested a fc\\ important areas of action, and Lhesc can be built upon in the
lieht of cxDcricncc mthcrcd in imDlemcntation
Y

I V h Is
accOuntabii*

24.1
Accountability in Governmcnt implies the subjcction of thc
discretionary powers and authority vested in Govcrnmcnt cmployccs to outsidc
scrutiny by various argans of the society. Whilc it is indisputable that cvcry public
functionary has to be a m t a b l e for his acts and docds, morc so a Go\wnmcnt
employee who exercises sovereign powers vested in him. It is oftcn said that
Govunmcnt scrv~ntsin India at accountable to no one. In thcov, this proposition
is totally unsustainable. In practice, it is largely true. Wc will try to cxplorc thc
rcasons for such a vast gap between theor>;and practice. and suggcst appropriatc
measures.

Accounmbiiity
fhr what

24.2
The accountability of a Govcrnmcnt cmploycc should ..xist.
formally and in writing, for the following:

Formulating policies in national and public interest and not to

subserve the interests of a group or individual;
Settingtargets for mmpktion of projccts, programmes, schcmcs.
facilities and services and fulfilling them within thc stated timcframe;
Setting standards of performancc and sticking 10 thcm.
Keeping discretion to the minimum and, wvhcrc 11 is absolutcly
necessary, exercise thc powcr in a fair. just atid transparcnt
manner; and
Mamblning an opcn Govemmctir whcrc an!. citi/.cn may h a w thc
right to inspect any aficial papcrs to scc ho\s the dccislons havc
bccn arrrvcd at.

34 3
Currcntly. Govcniincnl cniyloyccs iii thc Ccntral Govcninicitt
haw ccnain duties and rcspotisibilities under thc Conduct Rulcs Thcx haw to Ix
coiiiplctcly rc-\\nttcn so as to bc in accord \\it11 rnodcni notions of accountability

24.4
E v a today cmployccs arc accowrtablc to a numbcr of institutions.
which may be categorised thus:

Accountability to thc clcctcd rcprcscntativcs of thc people

Accountability to audit
Accountability to vigilancc
Accountability to thc customcrs
Accountability to thc judiciary

Accountability to the media

Accountabiliw to God and onc's own conscience

~

ACCOUNTABILITY TO ELECTED REPRESENTATIVES OF THE

PEOPLE
24.5
All actions of Government employees can be discussed in
Parliament. Elected representatives ask questions in Parliament and
to
etnbarrass the Ministers when they are on a wci?k w i c k . There are Committees
ofthe House l k the PAC, Estimates Committee, Standing Committee etc. where
matters ofpolicy and implementation are discussed.
This CDntrOl can be made more dedivc &an it is at present, if the
followng steps are taken:
24.6

Questions asked in Parliamcnt should be based on bettcr information

backup.
Both Ministccs and bureaucrats should be required to appcar before
Parliamentary Committees. Thosc burcaucrats who actually took the
decisions now being questioned by audit should bc made to personally
appear before these Committccs.
The Commitlecs should also hear intcrcst groups, cxpcrls outsidc thc
Government, commcntators in thc mcdia. so that thcy get a rounded
picture of a problem.

Discussions should bc muc-oricnted. Thc Committecs should take up

imporlant issues and summon all the conccmcd Ministers and burcaucrats,
hclonging to diffcrcnt Ministrics, who have a rolc to play in thc decision207

making proccss.

(c)

Discussions should lcad to \\cH-dr&cd plans of action, stating clcarl!

\\hat chmmgcs in polic\. law. rulcs. implcmcntatiorl strateby ctc arc bcing
rccommcnded. Thcrc should bc annual rc\ icw nicctings to cnsurc that
prcvious rep@ are actcd upon

24.7
At thc samc timc, interference by elected representatives in
day-to-day administration must cease. They should thcmselves desist from
tvriling letters about postings and transfers of cmployecs, promotions, vigilance
cases and so on. In case any such lctter wing to unduly influence the decisions on
these matters is reccivcd, it should not only not be acted upon but should lead to
administrativcaction against the conccrncd cmployoc.

ACCOUNTABILIIY TO AUDIT
24.8
Audit can be a most potcnt tool for ensuring accountability. It has
often unearthed major scandals and provided thc necessary ammunition io othcr
sections of the polity. There are, however. certain areas which nccd improvemcnt

The following suggestions arc madc:

Audit should reorient itself to look more at the objectives of
programmes or actions and whether such objectives have been
achieved promptly, instead of being unduly concerned with whether
the letter of a rule o r a procedure has been flouted. Dynamic
indiwdualso b b d i rule to adueve the target. If actions BT(: performed
bona fi&, in public interest, without any ulterior motive, audit should laud
those actions rather than bcing critical.

Audit should try t o be as concurrent as possible. Scandals and scams

are known evcn while they arc being planned and executed. If audit draws

attention to them forthwith in a well-publicised manner, such scandals can

be halted in mid-stride. Post-mortems are useful but can only be
conducted \\hen the paticnt is dead. It is bettcr to cure the patient and try
to keep him alivc.
Audit should constaptly look at systerGi f?i*!t~, areas of undue
discretion, blatant exercise o f arbitrary powers etc. and point them
out at once, without waiting for a report from the Government.

Where major individual lapses are noticcd, audit should ensurc that the
delinquent oflicials arc also required to prcsent thcmsclves before thc
Public Accounts Committcc. There should be adequate follow-up t o
ensure that disciplinary action i s taken against those found guilty.
Government departments have also t o develop a high degree of
sensitivity t o comments by the audit. Thc approach should not bc to
closc ranks and rush to the defence of the dclinqucnt official. The
208 :

s\stcmic dcfccts should bc rcmovcd at o m and individual iapscs punishcd

wth the utmost expedition
ACCOIINTABILITY TO VIGILANCE
Corruption is a major problcm in Govcmmcnt today. Thc
in:;mion is that 110 work in Government can be got donc without someone's palm
.being greased. This is unfortunate, as corruption is a cankcr that can destroy an
entire society, howsoever modern and progressive it may otherwise be.
24.10

24.11
Thcxe.isan existing machincty of vigilancc, headcd by thc Chicf
Vigilance Conunissioner, who is a Constitutional authority. Despitc it, corruption
thrives. Roccntly, thc CBI has been galvanized into action, mainly proddcd by the
higher judiciary. This may, however, be a passing phasc. What we n d to build
is a system which is not dcpcndent on thc action of a fcw individuals.

Corruption spreads from thc top. 'As is the mlcr, so is h e

24.12
c i t i 7 ~ 'thus
, goes an ancient adagc We havc to stern thc tide at all levcls.sta~ting
from the highest d e l o n s of Govemment. The following suggestions are offered
in this contcxt:
(a)

As the corruption at the political level is the fountainhead of bureaucratic

cormption, effectiw steps should bc taken to eradicate such corruption or
reduce it to thc minimum To this cnd we must

enact a new legislation which would eradicate

corrupt electoral practices
set up a National Election Fund to provide adequate
funds to political parties. Contributions to the fund
could be open to companies and appropriate tax
relief offered
pass the Lok Pal BN at the earliest, covering both the
politicat and bureaucratic leadership at the top. It
should be given teeth in the form of an investigative
machinery.

(b)

The Central Vigilance Commissioner should be strengthencd further this

could be donc by
hiving off the Anti-corruption part of the Central
Bureau of Iiwestigation, renaming it as Central Anticorruption Bureau and placing it squarely under the
Central Vigilance Commissioner
keeping the Central Vigilance Commissioner strictly
aloof from the executive, through appropriate
Constitutional safeguards and divesting him of
routine functions of advice

There is a need for IJ high level Panel For Clean Government.

consisting of the CAG, CVC and Cabinet Secretary, which could be
used to pool information and take effective remedial measures for
curbing corruption in high places.

Full time Inquiry Oficers may be appointed by all important

departments, to ensure that day-to-day hearings are held and
departmental inquiries normally completed within 3 months.
Suspension should be resorted to only in serious cases where a prima
facie case is made out. Once a person i s suspended, he should not be
reinstated till the enquiry is completed. Inquiry Officers should
mandatorily be asked t o complete the enquiries within a period of 3
months.
Government could take legal advice as to whether the provisions of
Article 311 can be diluted with reference to employees who have
either been caught red-handed under the Prevention of Corruption
Act o r who have been found after due investigation t o be in
possession of assets disproportionate t o their known sources of
income. I n such cases, suspension could be made mandatory. The
provision for revoking of suspension o r increasing the subsistence
allowance after sir months need not be made operative in cases of this
type.
Action on the lines of the Smugglers and Foreign Exchange
Manipulators' Forfeiture o f Property Act for forfeiture o f ill-gotten
property should also be extended t o Government employees of the
kind mentioned in sub para (d) above.
Reporting Officers should be permitted to record their views on the
integrity of the official reported upon, even if it i s based on his
general reputation. Adverse reports on integrity received from three
separate oflicers should be considered sufficient for initiating action
under FR S ( J ) for compulsory retirement.

ACCOUNTABILITY TO CUSTOMERS

24.13
All Government departments have custamers whom they are
supposed to serve. These are members of thc public in gencral or some segment
of the people in patucular. A democracy does implicitly dcmand accountability of
the Government to the customer, but this is through a circuitous routc passing
through the voter, the elected representative, the political executive and higher
bureaucracy. What has been rmgniscd rcccntly is the need for a clcar-cut
accountability directly to the customcr at the cutting edge Icvel.

This is thc gcncsis of thc Citircns' Chartcr in rhc U.K. and thc
Clicnls' Charter in Malaysia.
24.14

In India, a beginning has b a n madc by thc Consumcr

210

Coordination Council which has rcccntly dralicd a Citir.cns' Chancr for this
countr? Thc niain thcmcs of thc Chartcr arc quality. chorcc, standarCz. Auc.
accountability and transparcncy Undcr thc hcad 'standards'. each citircri w i l l bc
cntitlcd to expect thc following

Explicit standards will be evolved, adopted and published and also

promincntly displaycd at the point of delivery. These should include
courtesy and hclpllness hs M , accuracy in eccordancc with statutory
requirements, and commitment to prompt action.
The reasonable minimum and maximum response time, or frequency
of providing services will be indicated, as far as possible in consultation
with thc users of the service to suit their convenience.
Standards should be scrupulously adhefed to and the official
concerned held responsible for ensuring such standards.
Standards once set should be frequently reviewed and improved, with
simplification of procedures wherever possible.

If services are not satisfactory or standards ate not adhered to, there
should be a duly notified grievance d r e s s r h procedure, indicating
clearly the,response time for replies to complaints, with easy access
to the concerned officials.
As far as possible there should be a single window disposal, instead
of the citizen being pushed around.
At the very least, the citizen is entitled to a good explanation or an
apology. In many cases, he should have the right to demand
redressal and compensation. This would also imply the coverage of
all governmental services under the Consumer Protection Act.
A vigilant public can be created if there is full dissemination of
information. Some State-Gov-ents
have started publishing lists of ail
development projects sanctioned, arca-wise, along with funds sanctioned. funds
spent, agency of execution, target date of completion and the up-to-date progress.
Such reports can be an effective method of keeping the customers of development
projects informed of what is happening Such steps need to be taken by Central
Government agencles too

We recommend that the Central Government should draft a

suitable G t h s ' Charter for this country, invite a national debate on it and
then implement it promptly and effectively. It should also amend the
Consumer Protection Act and enact a Right to Information Act.
24.16

ACCOUNTABILITY TO THE JUDICIARY

24.11
Under the Indian system of law, the judiciary is the suprcnic
inkrpreter and protector ofcitizcns'rights vis a vis the Govcrniixnt. The judiciary
21 I

has cspandcd its traditional rolc by adding thc conccpt of public intcrcst litigation
Somc ofthc rcccnt trcnds in judicial intcwciilion arc as undcr:

(a)

Thc j u d i c i q is taking stringnt action against scnior officers for

dsobcyingor not fd!y complying with its ordcrs. This goes to thc estcnt
of awarding extended t&s of imprisonment. While it is cxtremclg
important that all judicial orders should be immcdiately and scrupulously
obeyed, there may be some scope for moderating the law of contempt.

(b)

A number of o r b arc being passed by judicial oficers at various levels,

eshorting the executive to take action in fields which are rclatively
ncglcctcd. These may bc the areas of environmental pollution. slum
clearance, sanitation, housing for the poor, construction of roads or other
amenitiesctc Somc of these may have received inadcquate attention due
to lack of funds or pressure of work. As such, some judicial orders may
not be capable of immediate implementation without diversion of funds or
efforts from other. possibly equally important areas of work

(c)

In matters of malfeasance or arbitrary, discriminatory, mala fide or illepl

acts, the Courts have started awarding c x e m p l q damages to the public
exchequer, not even sparing the Union Cabinet Ministers. Thus thcre is
every likelihood of public servants being held responsible for acts of
omission and commission vis a vis the public. This creates a direct
accountabilityof the public service to its customers, and the trend is to be
welcomed. In fact, it may bc necessary to extend it further to covcr all
kinds of torts, negligence, inaction, delayed action, discourtesy,
unresponsiveness etc. on the part ofpublic agencies, with a summary
procedure for award of relief or compensation, possibly thrdugh suitably
empowered Consumer Tribunals.

(d)

The Couris have also pushed the Central Government into filing criminal
cases and investim them through designalcd agencies in a time-bound
manner, by exercising direct and continuing supemision over the very
process of investigation This is somewhat unusual, but it has shown
d t s in some highly publicised cases. While the "victims" arc shouting
thanselves holnse against what they label as 'judicial activism', they could
posdibly have invited the w i t h of the judiciary by their inaction or
motivated action over prolonged periods.

24 18
On hc whole, he trcnds are to be welmcd. It is to be hoped that
the cxccutive will outgrow its initial reaction of being resentful about the so-called

judicial encroachment on its jurisdiction and start narrowing the zone of its own
inaction and inadequacy so as to make judicial intervention unnccessaq.

ACCOUNTABILITY TO THE MEDIA

The print mcdia in India have always bccn ficrccly independent
The strcngth of the fourth estate has bcen enhanccd manifold by the entry of the
electronic mcdia. Today, it is a common sight to scc a public scrvant bcing
24.19

212

confmntcd with a camcra and a riiikc at my odd placc. bc it outsidc thq court room,
his ollicc. rcsidcncc. cvcii 111a tin. This has niadc accountability to thc 1;2*.-.~2;a1.
aiid through thcm, a widcr audicncc sonicthing of a minutc-to-minutc cscrcisc
Somc of thc points that arisc in tliis.conncction arc:

'Man cats dog' IS mis Nc\,spcrsons arcgmcrally looking for scnsational

copy, an off-the-cuff commcnt that might spark a controversy or
something that smclls of a scandal or scorn. We have to rcstorc the
balance to the ncws-gcnera$ng machincry, so .that humdrum facts about
de\peloDmentarc also reported upon
Most of the tune, wc have onc-sidedstorics, without thcrc bcing a gcnuine
attempt to fiid out whether thc allcgations being ma& are based on facts,
or tryng to get the vcrsion of the opposite party. This makes for lop-sided
or motivated reporting.

What we need is a rcpodcr who is \~cll-ucrscdm his subject, who has donc
his homework and asscmblcd all thc facts, who is awarc of all thc
controversies, and who can draw out the intervicwcq by sympathetic
questioning.

We also requiremedia personnel who are so well paid by the industry that
they are not susceptibletothe varied blandishments that can be offaed by
various interested parties to p w c y distorted stories in order to malign or
scandalize.

In the Indian context, It is important to stress the fact that as a nation we

are fond of self-flagcllation. It is our national hobby. Thc media should,
thcrcfore, deliberately. as a matter of policy, report on positive events,
millions of which are taking placc in our country every day. If Surat saw
plague, it also t h e d into one of thc cleanest cities of the countxy within
an year. Yet, as against the daily hcadlines about the plague, how many
articles have we read about thc clcan up?
The media itself is under watch. Many newspapers now have inhouse
ombudsmen, there are media critics writing about its performance and the
Press Council of India maintains an ovcrall watchdog role. Such internal
"censorship" is to be wclcomcd.

ACCOUNTABILITY TO GOD & ONE'S OWN CONSCIENCE

24.20
In a modem society where atheism is faduonable and "cof~sc~encc"
has capitulated to "convenicncc", it may sccm anachronistic to talk of God and
one's own conscience. Yet, millions of pcoplc still bclicvc that God is our true Self
and ifonc listens hard enough onc can hcar thc still sniall voice of our conscience
24 21
I n the final analysis, the only controls that can work
effectively are internal ones. It IS whcn human bciiigs hold ideals that they

cherish, when they have rolc modcls t h y livc upto, when there are virtues of truth,
honcsty, integrity, devotion to duty, patriotism, lovc of one's fellow-beings, non2 13

vdcncc. pckc and b r ~ h c d that

d they t? to inibibc hat rr society can progrcss
and hc truly civiliscd.

24 22
But this can happai if the k&rs of socicty. bc t h e intcllcctuals.
burcaucrats. politicians. tradcrs, frrrmcrs or wvorkcrs. cschcw hc cult ofviolcncc.
sclfishncss md hypocnq wvkn thc older gcncration. by its conduct. bccomcs I
role model for thc younger gcncration. wvhcn then: arc pooplc of vision.
farsightednessand statesmanship who arc chosen by the pcople to NIC ovcr than.
and when the ihicves. damits, forgers and smuggtas are kcpt firmly behind lock
and kcy
24 23

In C\V

SC~ICC,

chcn:are good pcapk In fact, they consbtutc the

silent majorit? 1t is timc that them is an internal rcvolution of thc ps?chc

Rcccntly. thc State Association of a premicr Smicc thrcatcncd to hold a sccrct
ballot to vote the "three most corrupt pcrsotls in the c d r c " Thc mow was scuttlcd
under prcssw. Such self-regemcrating mowemcnls within the burcaucracy should
be encamgal There should bc open dialogues and debates on what the countfi
has bear reduced to All good men should speak up and unttc

24.24
It will thus be scen that thcre is no lack of agencics that can hold
a Govemmemt anplclryoc accountable. What is needed is LOactivatc. refurbish and
galvanizc thcse agencics.

: 214 :

25

25, 1

( ;vidi4iirrs qf

l.~cprlnrmlo/
Persontiel

Thc Department of Personncl iYC Training has issucd ccnain

instructim in the nature of guidelines from timc to timc on various issucs rclatcd
to transfer. These relate to posting of physically handicapped cmddale~,
hiisband

and wife at the samc station, staffworking in sensitive posts. etc. Thc guidelines
arc not cshaustivc and do not providc instructions for ail situations. Thcsc policy
guidelines am also not mandatory in nature but provide only policy options nithin

overall constraints of administrative convcnicncc.

Posiiioti l i t
somc A 1iiti.vtric.r

1kpartntent.y

25.2

Various minislrics of the Governmcnt of India have formulatcd

detailed policy guidclines which lcad to follow the instructions issucd by thc
Departmcnt of Personnel and Training and also takc into account thc s p i f i c
rcquircmcnls of individual Ministrics. Thc lransfcr policy of the Railways. for
example, discouragcs frequent transfcrs and insists on a fiscd tenurc for cach

postmg in ordcr to cnsurc administrativc continuity and stability to the incumbcnt.

The transfers for lowcr catcgorics of cmployccs arc confincd to Lhcir zonc.
Trans fcr rcquests across zoncs to mitigatc individual cascs of hardship arc
cntcrtaincd. giving duc consideration to thc fact that such transfcrs do not aflcct thc
seniority of csisting cniployccs. Thc transkr policy of Ihc Ordnancc Factorics
Board undcr thc Minis@ of Defcncc has four bound obligations: functional

rcqutrcnlcnts. cmxr dcvclopmcnt ofolliccrs through wdcr csposurc. rotalion from

scnsitivc posts and accomnlodiitlon of rcqucsts on collipassiollatc grounds
'mtrd /'<duv
1 )rl,.crni.votrcwis

25.7

In the Ccntral Pol~ccOrganisations, thc guidclincs issucd by thc

k-partmcnt of Pcrsonncl arc thc main basis of thc transfcr policy. Since thcir
pcrsoiincl hav: thc liability to scnc anyvhcrc in India, thcrc is an cscrcisc for
chqngc of pcrsohncl from dif-iicult arcas to normal arcas and vicc-versa. In static
units. a normal p l o d of stay of thrcc ycars has bccn prcscribcd, whiic a tcnurc of
two ycars has bccn prescribcd for difficult arcas.

lnspitc of thc csistencc of policy guidclincs on transfcrs. thcrc IS

3.4

a dclinitc fccling that thc instrumcnt of transfer is widcly misuscd in thc countel

particularly b? politicians in power, to subjugate the govcmmcnt cmployccs

Transfcr is also uscd as an instninicnt of punishment. Whilc thc Conduct Rules
providc for other contingcncics such as suspension. dcmotion. withholding of
incrcmcnts and dismissal. thcsc do not provide an!. safcguards against unjustificd
trmsfcrs. Dcmands have, thcrcfore. bccn mndc that any trsnsfcr bcforc the cxpiv

of thrce

in a post. should be madc applablc, particularly if it has bccn madc

~~

at the behest of politicians. Other demands arc for the prescrtption of a minimum
tenure for a posting, restricting the.transfcr to onc's homc to\m or home state, for

groups 'C'and 'D'cmplopes nbt to be subjcctcd to transfcr, for transfcrs not to be

made in mid acadcmksession and if madc, to be compensatcd for in monetaq
terms, and so on.

II OUR RECOMMENDATIONS II
~~

25.5

Wc have considcrcd thcsc demands and fccl that many of thc

yrievances of the employees can be met if their departments formulatc detailed,

clcar and transparent transfcr policics. Thcrc cannot bc a uniform transfcr policy

for all thc Ccntral Gowmmcnt DcpartmcntdOrganisations,as thcir administrativc

rcquircmcnts dilTcr. Dcpartmcnts whosc pcrsonncl havc a liability to scrvc
an)whcrc in lndta ham alrcady formulakd transfcr policics based on thc guidclincs
issucd by thc Dcpartmcnt of Pcrsonncl and Training and C ~ S C Sarc statcd to bc dcalt
with in the manncr according to such guidclincs. Dcpartmcnts which havc not

c\ol\cd an! Suidcliiics/policioson ttniisfcr should do so at thc carlicst so as to

climrnatc an! possibrlii! of arbitrariness rii c1Tcct:ng tmr:sfcrs Thc proposilions
coiitaincd

in

the succccding paragaphs may bc uscd as gcncral guidclincs for

inclusion in thc transfcr polic\

25 6

to bc formulatcd by diffcrcnt dcpartnicnls

Detailed guidelines should be formulated and publicised by

eacb department as part of a comprehensivetransfer @icy so as to ensure

that arbitrariness in transfers is altogetber eliminated and transfers are
effected in as transparent a manner as possible. Thc guidclincs so fmulated
should take into account various instructions issued by the Department of
Pcr,onncl and Training from timc to timc, particularly thosc dated to
transfer/posting of marricd couplcs at thc same station, posting of physically
handicapped employees. posting af employccs having mentally rctardcd chddren,
rotation of staff working in scnsitivc posts. ctc
Irrscription
of minimum
tenure

To ensure administrative continuity and stability to

incumbents, frequent tramfersshould be discouraged and a minimum tenure
for each posting of officers should be predetermined and it should normally be
3 to 5 years, except in cascs uherc longer tcnurcs are justified on functional
requirements llke mtmued availabilit! of certain spccialiscd skills In the casc of
sensihvcposts, where opportuniucs cmt for developing vested intcrests, the tcnure
of posting should be defincd for 3 shorter pcnod. which may be 2 to 3 years
25 7

?rans/ers not

25.8

in mid-session

end of the academic year so that these are implemented at the end of the
academic session. Whercvcr transfers arc made in mid-session, facility to retain
Governmcnt accommodation up to the end of the academic session should be
extended, if the Government cmploycc has a child studying in that station.

heasonsfw

25 9

preniurun

tenure should be based on sound administrative grounds which should be

spelt out in the transfer order itself Thc transfcr ordcr must, thcreforc, contain

trans/r.v

As far as possible, transfer orders should be issued before the

Any premature transfer before completion of the prescribed

detailed rcasons for thc uansfcr Ofticcrs should bc givcn a right to appeal against
such orders, if they feel aggncvcd ad a provision for a summary procedurc to deal
wth such situations should bc madc \\ ithin each dcpartmcnl In casc of emergency,
when such orders 3rc niadc in the cxigcncics of public intcrcst and haw to bc
implcmcntcd 3t oncc. rcprcscntations against a transfcr ordcr should be disposal
of by an authority supcnor to thc oficcr ordering thc transfcr aflcr pcrsonal
discussion. if possiblc on thc sanic da!.

217

I rriti\f;-r J U I I
I, #

/Id.

lnr.~u.ct~ll

25 10

The instrument of transfer should not be allowed to he

misused either by the bureaucrats themselves or by politicians in power. It

should not bc uscd as a rncanz of puntshnicnt by ctrcunii ctiting thc proccdurc laid
down for disctplinan- procccdmgs
*tJ?IA/I/UfW?I <JJ

~ ' I V I.%n.ICt..t
I

While ihc right o f the politician to have some say in postings

to some of the senior duty posts in the administration cannot be denied, there

I h r d 121 11rc
C'tvitrr mid

25 1 1

is a need to evolve certain norms in this regard. Thus whtlc evcry ncw Primc

111

M tnistcr/Chicf Mintstcr may

IIIC .Y/,Ifd'~

t&c decisions on appointments to ccrtain hc\

positions, decisions on transfer o r removal of the concerned officers when

there has been no change in the incumbency of the Prime MinistedChief
Minister should be taken only after the same has been examined by a highpowered Civil Services Board, comprising at least three persons Thc Ccntral

Govcmmcnt and c \ c ~ Statc Govcmmcnt should constitutc such Boards.

consultation \\ tth whom should bc madc compulsory bcforc ordcring any prcniaturc
transfer In casc of the Central Government, this Board may have thc follo\ung
cornposition -

Selection 01
M'mhers Of

Board *'ld

its

jurisdiction

(1)

A rctircd Judgc of thc Suprcmc C o d H i g h Court;

(2)

A prominent pcrson in public lifc including a rctired senior burcaucrat;

(3)

Cabinet Secretary

25.12

Thc first two mcmbcrs should bc choscn jointly by thc Primc

Minister and the M c r of the Opposition in the Lok Sabha. At thc State Icvcl. thc
composition should include persons at SI. No. 1 and 2 abovc who shall bc selcctcd
jointly by the concerned Chief Minister and Leader of thc opposition in thc State
Vidhan Sabha. lnstcad of ('abinet Secretary, the Chief Sccrctaq of thc Statc shall
bc the third member. The senior positions that should be brought undcr thc
purvicw of this Board slioiild bc thc Following:
In the Ccntral Govcmmcnt

I.

Cabinct Sccrctary (if his casc is king considcrcd, hc will not be a nicmbcr

of thc CSB)
2.

Sccrctarics to thc (iovcrnnicnt of India and thcir cquivalcnl

3.

Additional Secrctarics to tlic Govcmmcnt of India and thcir cquivaicnt

i:~.!hcStatc <io\wnmcnt
Chicf Sccrctan (If his casc is bcing considcrcd. hc will not bc a mcmbcr

of tilt csr3)
z

Secretaries to the Statc Go\.cmnicnr and their cquivalcnt

All Hcads oldcpartnicnts i n Scnior Administrrrtivc Gradc ana abo\ c

-I

All

5.

All IFS officcrs of thc rank of CCF and abovc

All 1)istrict .Illagistratcs and District Supcrintcndcnts of Policc

>

IPS officcrs olthc rank of Additional DGP and abovc

Whcrc\ cr the prcrnaturc transfcr of an! of the abet c oficers is

25 13

rcquircd to bc rnadc. thc Secretan. (Pcrsonncl) w i l l havc to submit

;
I \tTlttcn

mcrnoranduni before dic Cn 11 Scn~ccsBoard. giving reasons for the transfcr Thc
concerned officer
submission

\\ill

ha\c thc right to appear before the Board and make hts

The rcport of thc Civil Scniccs Board on thc proposal of

25 14

prcmaturc transfcr rvill normally bc acceptcd by thc Government. Wherever it i s

rejccted, the proceedings in full will have to be placed on the Table of the
House at its ncst scssion Copics of all documents \vould also havc to bc supplicd
to the officer so that hc may havc rccoursc to the courts. if necessary
It is the considcrcd \ k \ v of lhc Commission that unlcss thc

75.15

backbonc is rcstorcd to thc highcr burcaucracy by rccognising that thc5 havc a

coiistitutional rolc to play in the s!stciii of governnncc. India can ncvcr havc PI1
;idniinistraii\x s\stcni of ivliich it can be proud
Ever? 1)epartment should also have a high powered Board

25 It,

to review thc c;ises of all premature transfers of Croup A officers and should

scnc ;is a11apiw11;itc t

d b r all such traisfcrs \\hicli ilia\. bc rcsardcd as nialalidc

I,\

.hi cillpl<l\L

2 17

A n additional month's pay o'ccr and abovc the existing

( .,iiii~)~.ii.~iri,~ii~/;ir

pretii,irun.
trwi.+r

transfer allowance should be paid by thc transferring department if an

employee is transferred prematurely within a p4riod o f one year o f his earlier
transfer.

In spitc of this. if an cmploycc complics with thc ordcrs and thctl

rcprcscnts that thc traiisfcr was nialafidc, thc amount shall bc rccovcrcd from thc
salary of thc supcrior officer if it is subscqucntly provcd that thc transfcr was, in

fact, effcctcd with malafidc intent, undcr political prcssurc or for any othcr
cstrancous considcration.
7iui+rs

d!f

Groups

'( "ONJ

.I)' rmplq,w.v

25. I8

I n the case of employees in groups

'c'and 'D recruited on

a regional basis, postings should be given in the home townlhome district,

wherever feasible, and transfers rcstrictcd within thc rcgion and zonc. All

reasonable opportunity should bc givcn to voluntcers for posting/ transfer

10

difficultlunpopular placcs. Howevcr. if cnough uoluntccrs arc not asailoblc.

postings should bc madc for a short period to thcsc stations on conipulsoi-\.basis
~ I t ah clear assumcc ofchangc in posting ancr completion of thc tcnurc. Posting

of choicc should be givcn, as far as possible, to those who acccpt unpopular

compulsory postings.
\L truqfer qf
Group

7)'

rniplorues

25 I 9

No

transfer o f Group

'D'employees

from one station t o

another should normally be resorted t o except in very special circumstances

like adjusment of surplus and dciicicncy, promotion, csigcncies of service, mutual

transfers etc
Irnn.+rrs of

emplr+rcs uhour
lo retire

25 20

Generally, transfers should not be made after a Government

servant has attained an age three years leas than the age of his
superannuation and wherever possible a retiring Govcmment scmant should bc

transfcrrcd to a station of his choicc. three years prior to his superannuation

(;owrttnieni

employw.~t o

hz c l i u r p slice:c.djiw

25 21

Government employees should not be permitted to bring

political o r other extraneous pressure t o bear on the Government o r on the

transferring authorities in the matter o f transfers. An\. Government ernployce

brtnXiiig

who brings such prcssurcs should be procccdcd against undcr the Conduct Rulcs.

politico1

Thc prcscnt practice of taking action on lcttcrs rcccivcd from outsidc agencics

prc.rtura

including Ministcrs, MPs, Burcaucrats and othcr mcmbcrs of thc public has to bc
stoppcd forthwith. All such rcfcrcrices may bc uscd only for thc purposc of taking

dcpartmcntal action against thc Goscmmcnt cmployccs for whosc bcncfit such
lcttcrs have becn MTittcn.

220

26

1
The signrjicance
Of Ihe

size Of

Golmlnlt,rr'

Afachirrrty

INTRODUCTION: SOURCES OF STATISTICS

26.1
The size of Government mgchinery is critical for the success of any
drive for efficiency and economy in Government, where value for money must be
dclivcrcd to the tax payer. In fact any effort to optimize the size of Government
machinen would come to a complete naught in the absence of a robust statistical
information base on subject. Our terms of reference also rcquirc us to study the
financial implicationsof the various alternativcs before making our recommendations.
This ' exercise invariably requires the sizc of Government employees in various
categories to be available as a pre-rcquisite.

The inadequacy of 26.2

sources Of
slatislic s

The Schdule
hY
('omi.Lvion

We however find,that though there are several sources reporting on

the size of civilian component of Central Government cmployees such as the
Directorate General of Employment and Training in the Misistry of Labour, the Pay
Research Unit in the Mmstq of Finance, the Expenditure document of the B u d i t , the
Economic Survey etc., these sources are often dated, not sufficiently comprehensive.
incognate and yield conflicting results (See ,Appendix for dekiils).

26.3
The lack of any recent and reliable source ar.d the pressing need for
this ipformation appears to have led all the previous pay commissions to circulate a
schedule to gather information on the sizc of civilian component of, government
cmployees. We too have done the same and have collected information about the
regular employees w i h Government and excluded the non-regular employes as was
done by the previous Commissions. For the size of the Arnicd Forces, we haw tclicd
on the information furnished by the pay cells set up i n tlic Miiiistn: of Dcfencc.

SIZE OF EMPLOYMENT IN THE CENTRAL GOVERNMENT

Nqplrrr ( 'ivilitar
J l l d posts

26,j

According lo tlic infornintion collcctud by 11s.tlic 101;il nunibcr of

fillcd civilian posts at the-Ccntre as on 31 3.94 was of tlic ordcr of 38.73 lakhs as
;gainst 31.44 lakhs fillcd posts rcportcd by tlic 4th CPC 111 19x4. An incrcasc of thc
ordcr of S.20 lakh filled posts is cvidcnt in thcsc 10 ycnrs. (SCCArlilcsc 26.1).
26 5

We arc constrained by the

22 1

iioii- ;ii~;iil;ibility
of

Ministn wisc. group

dctixls rcgxdiiig "lillcd poW in [tic prc\ toits 1 ' : ~ Coiiiiiiisston rcports and hcncc
coiitincd our anal) SIS of thc clianging coinposition of Cciitral Govcrnnlcnt
Eniplo!t.cs to "sanctioned posts" on \\hich fatrlj dctailcd information \\as available in
tlic cirlicr reports Thc ininisty -nisc. p u p - n i s c dispibution of fillcd posts collrctcd
b\ us ;is oii 3 1 3 94 is howcvcr. givcn at Anncxc 2 6 7@) for the bciicfit of posterit! and
U C hop;. tliat thc futurc Pay Coninlissions n i l 1 bc ablc to nicantngfull) u t 1 1 1 this
~
inforin;i1ion
I\ c 11.11 c

26.6
The strength of sanctioned posts for the regular civilian Cciitral
Govcrnr,ient employment (excluding Union Territories) at 41.76 lakhs in 1994, is
obscrvco to have increascd from 17.37 lakhs in 1957 to 29.82 lakhs in 1971 to 37.87
lakhs in 198.1 (Sec Anncxc 26.2). During thc fourteen years between 1957 and 1971,
thc nunibcr of sanctioncd posts increased by 71.7%. during the next thirteen years
bchvvccn 1971 and 1984 by 27% and during thc next ten years bctween 1984 and 1994
by 10.3%. Vicwed on annual basis whilc an annual growth rate of 3.9% is obsend
for the period 1957 to 1971, an annual incrcasc of 1.9% is observed for thc period 197 1
to 1984. The percentage of annual increase is observed to have fallen to a levcl of
1 . 0 per cent during the period 1984 and 1994 suggesting thereby a general
deceleration in the ratc of growth of sanctioned posts for civilian employees in
Central Government, consequent to the various measures taken by the
Government to impose economy cuts on present numbers and freezes on further
reciuitrnent. Of thc 3.89 lakh additional posts sanctioned during thc period 1984 to
1994. 70.000 posts \ w e in the Dcpartmcnt of Communications. 4 1 .000 in Railways
and 3.28.000 in othcr deparlmcnts. Amongst the other departnicnts thc largest incrcasc
appears to have taken place under the head of police in the Ministy of Homc Affairs.
As per the Budget documents, between 1988 and 1995, an incrcasc in thc number of
cniployces of the ordcr of 1,49,447 took place under this head. We have elsewhere
shown that as against a compound annual rate of growth of 1% for the civijian
cmployccs during the period 1984-1994, the CPOs under the Ministry of Home grew
at thc ratc of 5.6% compound annual rate of growth betlsecn 1986 and 1994. Taking
cuc from the above trends. we awarded studies for the restructuring of some major user
dcpartincnts with a view to optimizing the size of Government. The chapters which
follow dctail thc areas ivherc sonic weight shedding may be possiblc.
'

26.7
Union Territory wise information on fillcd/sanctioned posts is not
available in the earlier reports. It is therefore, not possible to comment on UT-kise
incrcasc in nunibcrs While thc iota1 number of sanctioned posts for civilian cmployzes
in Union 'rcrritorics is available in the previous reports. this figure is not comparablc
as thc nunibcr of Uriioii Territories has been changing with time. The total number of
sanctioned civilian posts in Union Territories, reported at I .60 lakhs in 1970 and 2.25
ldkhs in 1.1.84,by the previous Pay Commission$, is observed to have however fallen
to a level of 1.63 lakhs in 1994. The UT wisc distribution of fillcd and sanctiomd
posts, across group A, B, C and D in 1994 is givcn at Annexc 26.7(a) and 26.7 (b) for
thc bcncfit of futurc Commissions.
26.8
As against the total filkd -posts of 38.73 lakhs, the :otal number of
sanctioncci posts at the ccntrc in 1994 arc observL ii: hp cfihe order of 41.76 lakhs
lcaving a gap of around 3.03 lakhs sanctioned posts unfilled at the Centre in 1994.
Similarly, wc obscnc that as against a total number of fillcd posts of 1.5 lakhs In the
Union Territories, the total number of sanctioned posts in UTs was of the order of 1.53
lakhs as on 31 3.94. Such a largc gap bctween the sanctioncd and fillcd posts may bc
cxplaincd partly by thc long procedural dclays in sclcction, by thc lack of suitablc
caiididatcs. reservation rcquircnicnts. ctc.
20 9
The information on dcfcncc forces madc a\.ailablc to us by thc Dcfcncc
Forccs pay ccll shows that as on 1st January, 1995 the sizc of thc defence forces was
11.91 lakhv of which 9.98 lakhs was the s i ~ oc f thc Army, 1.4 I lakhs thc S I Z C of tlic
Air fore and 0.52 lakhs that of rhc N a y Thus. the sharc of Army in the total dcfencc
forces IS 83.79'%,,that of thc Air force I 1 XJO;, and that of.thc Navy 4.37%. I t is also
obscnted [hat the compound annual rate of growth of thc defence forces for the

222

period 1YH1-91 at 1.4% i s higher than the compound annual ratc of growth of
1.2?40 for the civilian f o r m during the period 1981-1991 (SCCAiincsc 26 4 ) This
can probably bc attributcd to t l f x~ r tlint unlikc thc civilian sidc. thcrc is no ban oil
rccniitmcnt 111 t h Dcfctlcc
~
forccs :ind ill1 \\ilSt;igCS 11;n.cgcncr;illy bccn il1;idc iip

COMPOSlTION OF THE CIVILIAN EMPLOYMENTSTRUCTURE A N D TRENDS

A look at ihc distribution Df sanctioncd posts in Governmcnt in 1994
rcvcals that Railways haw ihc largcst coittingcnt of sanctioned posts at 15.40 lakhs,
follo\wd by 7.54 lakhs posts in Communications and 6.73 lakhs posts in Dcfencc
(Civilians). Around 12.03 lakhs posts arc sprcad ovcr i n other departments (Scc
Anncsc 26.2) The relative share of Railways in total sanctioned posts in Central
Government has registered a dirline from 57.4% in 1957 to 46.9% in 1971,39.7%
in 1984 and 37.0% in 1994. On thc other hand, thc sharc of Communications has
rcgistcrcd a steady incrcasc from 11.4% in 1957 to 13.2% in 1971 to 18.1% in 1984
and thcn stayed at 18.1% in 1994. Thc sharc of thc dcfcncc civilian cmployeccs in total
sanctioned.posts has varicd and was 15% in 1957, 20% in 1971, 19.1% in 1984 and
16.1% in 1994. Thc sharc of othcr dcpartnicnis i n thc total posts also increascd
steadily from 16.2% in 1957 10 28.8% in 1994.
26.10

The group-wise Qstribution of sanctioncd posts givcn in Annesc 26.5

reveals that in terms of pcrcentage of total posts in Governmcnt, Group A, B and C
posts hait shown a substantial incrcasc bctwcen thc period 1957 and 1994. Group A
posts which were 0.6% of thc total posts in 1957 have riscn to 2.2% of the total in
1994. Group B posts havc riscn from 1.1% to 3.3% of the total and Group C haw risen
from 42.0% to 66.8%of thc total for the samc pcriod. Group D posts have, however,
registered a decline from 5 6 . 3 O / i of the total to 27.2% of the total. It is observed
that Group A posts have in fact grown at thc highest ratc of 6% during 1957 and 1994.
followed by Group B. C and D !Ci, 5.4'1/0.3.7% and 0.4% rcspcctively in that order.
26.11

26.12
Annex 26.6 reveals that the total number of Group A posts have risen
from 67.969 in 1984 to 89,663 in 1994, showing thereby an increase of 3 1.9%. The
largest increase of Group A posts is observed in the Department of Communications
wherc Group A posts have increased b i 4756, and an increase of 13 1.2% has been
registered This is followed by Defence (civilian) department where the number of
Group A posts have increased by 4247 and an increase of 36.4% has been registered.
Radways have registered an overall increase of 1863 Group A posts or an increase of
24.1% . The number of group B and C posts also rcgistcred an increase of the order
of 55,406 posts i.c. 69.2% and 5.00,902 posts i.c. 21.9% respectivcly during the
period 1984 and. 1994. Thc largcst incrcasc in percentage terms in Group B posts is
obsemed in Mnistry of Comrniinications at 140.9%,followed by the defence civilians
at 104.8% . While in tcrms of numbcr of Groups C posts, Railways creatcd the
maximum numbcr of posts during thc pcriod undcr study, the Department of Defence
(civilians)crcatcd thc largcst numbcr of group C posts in tcrms of percentage incrcasc.
What is rcnlarkable is that Group D posts rcgistcrcd a dcclinc of the order of 1,9 1.33 1
posts during the pcriod 1983 and 1994, Thc Railways and Defence Civilians arc
obscnd to haw contributed significantly to this dcclinc. The dcclinc of Group D posts
may be a result of ban on rccniitrncnt inipscd in Group D, comparatively liighcr
rctircmcncs in Group D conip;ircd lo otlicr catcgorics and proniotioris from Group D to
Group C

'.

Thc pciccntagc incrc;isc i n ilic nunibcr of group A. B. C and D posts

4'%rrcspcctivcl>,bet\\ccn thc period 1984 and 1994.
only gocs to cndorsc thc fiiidings of thc carlicr Pay Conimissions that the pacc of
crcation of posts at thc liighcr Ic\cls, I c . Groups A and B IS much fastcr than tlkit at
thc lwcr ICILIS This is i n linc \\it11 thc iymxal c\pcricncc in countncs abroad wherc
26 13

?I 71 9%. 60 2%. 21 9%) and -I3

I heh~ftllll~~l
."i'rr.'m'"I\"

2 0 I4

'I'hc hlinistn - i t isc distribution of Group A. 13.

(. mid 1)

smictioiicd

p s t s IS~ I \ . C I I ;it ;iIiIicsc 2 0 7(;1) It ~ i i i i \ hc lioticcd tliiit IIIC MIIII:~? 0; DCfcllcC Ic;lds
Jrsfrihiifior < I /
iii tcnns of thc Group A s:inctioiicd posts at I 5.000. follo\rcd by Miniscn,of Kail\vnys
( ;rorip :1. I!. (. crmi
iit 059 I . Ministry of Homc Aflairs ;it 8047 and h11111stn
of roninltiIiiciitio!is ; ~ tX38 1
I ) ,v,l,ll.f~f~l~lcllrrlll

~ / i l l l ~pf'.\l.\
ll

77re

disfribiifievi o/'

(;rfw,,'
,IcrfJ,s.v o ~ l 1 l , I s z c f
.w n w c ' . v

77w :I I I llI&<l
Sen,tcc*.v

Dislrihtifiwi of

sancrro'ied~s's
betwecii
permaneni aiid
lemporaq*
caregoq'

Tiie si:z ./
Jrrdustrial
If iJrkc,r.c

The Ministry of Corniiiiinicatioris has tlic largcst nuriibcr of group 3 salictioricd posts
at 23.772. follo\vcd by tlic Ministry of Dcfcncc at 18.1 16 arid the Audit and Accounts
Dcpartnicnt at 13t932. The Ministry of Railways leads i n tcrms of the Group C posts
at 931.1 12. and I S followcd by Ministry of Communications at 5.58,552. Ministry of
Honx: AKiirs a t 4.83.804 and Ministry of Dcfcncc at 4.11.919, k\ail\vays again Icads
in rhc Group D cmployccs and is followcd by Ministry of Dcfcncc and Ministry of
Conununicalions in that ordcr. Thc Ministy-wsc distribution of' Group A. 3. C and
D fillcd posts is givcn at aniicxc 20.7(b).

26 Is
Of thc loti1 89.663 Group A posts, around 57.997 arc cncadrcd into thc
\;?nous organiscd Group A scniccs cscluding thc thrcc all India s c n k c s . Tlicrc has.
ho\\cvcr bccn an appraiablc incrasc in the numbcr of Group A scnficcs bctivccn 107 1
and I995 and thc numbcr of Group A s c n x c s has riscn froni 3 0 111 197 1 to 49 i n 19x4
to 59 in 1995. Sonic of thcsc SCIVICCS arc VCQ sniall i n sizc such as ttic Indian Suppl!
Scwicc (167), Ind~anNaval Arrnanicnts Scrvicc (94). Indian Inspction S c n ~ c c( I 2 1 )
and Indian Lcgal Scnicc ( 1 14). In fact, thcrc arc only 34 scniccs u.:tli a cadrc strcngth
c s d n g 500. Whilc all 18 Enginwring Scniccs taken togclhcr h a w a cadrc strcngth
of 18.225. the Group A Ccntial Scniccs rccruited through Ci\d Scniccs Examinations
acdount for 12.839 posts.

26 '16
Thc All India Scniccs includc tlic Indian Adniinistrativc S c n ice. t tic
Indiari Police Scnicc and thc Indian Forcst Scnicc. Thc AIS oficcrs 1m.c a
contingcnl of 11.576 officcrs with 5336 oficcrs in thc IAS. 3519 oficers in thc IPS
'and 272 1 in the Indian Forcst Scrvicc as on 1 . 1 .W. Oficcrs of thc AIS arc allotted
state cadrcs and thcy work both in thc Sratcs and at rhc Ccnlrc.
26.17
Tlic distribution of'pcrmanent and temporary posts shows that thc
numbcr as well as thc pcrcentage of temporary posts to thc total posts has dcclincd
steadily. This appears to be in tune with Government's policy of decasualiiation and
increasing permancnt employment. Thc numbcr of tcmporary posts droppcd from a
Icvel of 7.49 lakhs in 1971 to 7.28 lakhs in 1984 and to 6.83 lakhs in 1994 (Scc
Anncxc 26.9). Temporan. posts as a percentage of total posts, dropped from 25.1% in
1971 to 19.2% in 1984 and 16.4% in 1994. Howcvcr, while Ministry of Defence
showed the largest reduction of temporav posts, Railway actually showed an
increase of 1.60 lakh temporary posts between 1984 and 1991

26.18
As per infohation collccted by us, thcrc wcrc 9.:59 lakh industrial
workcrs i n thc Central Government as on 31.3.94. Morc than "0 pcrccnt of the
Industrial Workcrs arc cmploycd in Railways and Dcfcncc T1.c distribution of
Industrial Workcrs amongst the major depal;x:rnts ovcr thc \c;irc gn.cn b c l o ~1:

Kai I wa? s
3 61 (50 4)
4 91 (54 2)
4 9% ( 5 3 0 0 )
PKrT
0 06 (00X)
0 12 (01 3 )
0 00 (Ob 00)
Dcfcncc 3 10 (43 3 )
3 51 (38 7)
3 92 (4 I 80)
Olhcrs
0 30 ( 0 5 5)
0 52 ( 0 5 %)
0 4; (t,J 0 0 )

Total

7.16 (100)

224

9.06 ( 100)

9.39 ( l o r , )

I~rh.rrrr~rl
iliJrkfl.l.\

i;ihlc bclov). 11 IS obscncd t1i;i1 \\liilc Ihc pcrcciit;igc of' Supcn~sors.IiigliI!. skillcd ;tiid
skillcd ciiiplo~~ccs
takcii togctlicr 11;isiiicrc;iscd owi tlic \c;irs. t1i;it of' rlic sciiii-skillcd
;ind uiiskillcd ciiiployccs tias dccrcziscd

Highly Skillcd
Ski 1Icd
Scriii Skillcd

Unskillcd
Supcnisors
and othcrs

Total

1971

1984

1994

IO ' X B
3 9%I
24%

2 (1%
36%
2 2%

29.50%
2 5.a1%
2 1 .XO%

1971

1984

1994

27%

2 2%

1 7,40')/0

-100%

--

100%

5.70%

100%

26-70
The pay-scale-uise distribution of fillcd posts at the Ccntrc and thc
Union Tcrntorics is given in Anncsc 26.10. As niay bc rioticcd thcrc arc 62 pay scalcs
j i I l ~ ~ i f p ~ .UIv ~thl,
.<
bctwccn thc Centre and tlic UTs. The scalcs of 7000 fiscd. 4000 fiscd, 2000 fiscd arc
(-1wfrvund b r LX
found to be unique to the Union Tcrritorics. The Minist? wise distribution of fillcd
posrs in the scale cf Rs.5900-6700 and abovc is givcn at Anncse 26.1 1.
7 1 1 ~p(1)'
. .\colt, U'1.W

cflsrrihuf'otl

20.2 1
From thc statistics it is diflicult to come lo any dcfinitc conclusion
ivhcthcr thc burcaucraq as a wholc is "bloated" or not. It would bc correct to conclude
that tlic 7 1.7%incrcasc in thc numbcr of sanctioncd posts @tween 1957 and 1971 was
probably not justifid. But the fact that this pcrccntage growth ratc came down sharply
to 27% bctwccn 1971 and 1984, and then to a remarkably low figure of 10.3% between
1983 and 1994 shows th4,Govcrnment has acted to contain its fat. If thc extra pounds
havc not been shed, at least the rate of growth hasbeen markedly arrested. Even thc
\cry modest incrcasc of I% per annum is more due to the jump in thc size of the
uniformed forces. The aimed forces grcw at a compound annual growh rake of 1..4%
bctwcn 1981 and 1991 and the Central Police Forces by more than 5% annually
hetween 1986 and 1994. The Ministries of Communications and Railways sanctioncd
70.000 and 4 I .OOO additional posts during 1984-94 and contributed lo the incrcase.
26.22
Thc lessons wc lcarn from this are clear. If the Govcrnment has the
will to rcducc manpower, it can do it. Secondly, the uniformed forces are the most
difficult to handIe..If their avoirdupois can he contained, so can that of the rest of
the Govcrnment.
26.23
Thcrc arc 3.03 lakhs unfillai posts on thc civitian sidc. Thcrc niay be
sonic unfillcd posts on thc dcfcncc sidc as wcll. For any major cfforl at rcstructiiririg
and downsizing thc Govcrnmcnt, this large number of vacancies is a challenge

waiting to he met.
26 24
Alrcad!. thcrc IS a dcfinitc shift away from Group I? posts towards
Group A. Band C. Thus, there is a trend towards officer-oriented administration,
H tiich needs t o be strenuhened further

A N N E X E 26.1

DISTRIBUTION Of; FILLED POSTS IN CENIRAI, GOVT. BY M A J O R

D EPARThl ENTS

Yn age of filled
posts to Total
sanctioned

Percentage
increase
1984 1994 between

Post; Filled
(Lakhs)
---------.b----

Ministry

------------------

1994 &
1984

1.

2.

Rai 1ways

3.

1984

1994

5.

4.

14.15 15 01

6.1

94.0

97 5

93.2

90.3

Communications

6.37

6.81

6.9

Defence (Civi1i an)

6.29

5.99

-4.8

86.9

89.0

Other Departments

7.64 . 10.92

43 0

87.2

91.4

... .

Source:

..

. . -. .
. .._
. .... -- . . .

..

1 Report of the Fourth Pay Commission.

2 Data compiled by the Fifth Pay Commission

226

ANNEXE 26.2

2.

3.
~

9.97

57.4

6.

.. .

. .

13.0~1 I 5.05
4tl.O
39.7

__

7
.

. .~

....

_.

0.4 I
10 5

40.3

7h

27

37.0

15.46

1.08
11.4

3.93
13.2

6.84

7.54
18.1

0.70

98.5

74.0

1.0.2

18.1

Defense (Civilian)
7 t o Total

2.60

5.97
20.0

7.23
19.1

6.73

-0.50

129.6

21.1

47.9

15.0

16.1

-12.9

Other Deprtments
Clr to Total

2.82
16.2

5.93
19.0

8.75
23.1

1 2.03

3.28
84.3

110.3

47.6

37.5

28.8

1737

29.82
100 0

37.87

41.76

-27.0

103

100.0

3.89
100.0

71.7

IO.0
I .9

1 .o

Total

100.0

3 !)

:8.0

: 227

A N h ' l < X I 26.3

3.

4.

5.

6.

7.

0.04
2.4

0.94
, 2.2

0.72

0.04

2.2

1.0

2.7

0.76
I .o

1.36
3.3

0.12
7.4

1.48
3.4

1.19

0.11
7.3

1.30
3.2

27.8%
66.8

1.18
72.4

2q.06
67.0

25.92

1.08

66.9

72.0

27.00
67.1

11.39
27.3

0.2')
17.8

11.68
2b.9

10.60
27.6

0.27
18.0

10.06

0.23
0.6

0.00
0.0

0.23

0.21
0.5

0.00
0.0

0.2 1

41.76
100.0

1.63
100.0

4339

1.50
100;o

40.23
100.0

2.

1.

O.!'O

...

..

3.1

0.5

38.73
100.0

300.0
.-

228 :

- ..

.-

__

._

27.2

0.5

- ..

..-

--

..

1.

-.
3

3.

4.

1071

22.25

4.74

x.30

0.30

I .Oh

19x1

2S.87

5.20

X.SI'

0.36

1.20

10.37

44.44

3237

5.26

').'IS

0.51

I .40

I 13'1

50.02

N.A.

N.A:

0.08

0.52

1.41

11.91

N.i\

I07 I -x I

2.6

0.')

0.6

1 .o

1.2

0.7

1.9

I ox I -0 I

I .3

0.1

13

ii

1.6

13

I ?

229

5.

6.

x.

7.

'),(>(l

30.05

?\"ESf'

20.5

(Figures in Lakhs)
(;roup of' I'ost

1.

2.

3.

4.

increase i n 1094
over 1957

2.30

S.

h.

7.

y!
W

c\

30

cs

I -

C: 3
1

:s\
a -

: x

:c\
I

-.7

it

1)

3.

1.

5.

fl.

600
Y5Y 1
259

Il?X
46
l7i7

I c)Y
7075

lhh5
147

I5000
72w

4h7
45

5121

xx3
25
74

142

32
2 (I

232

I.
40
41
42
43
44

S87
101

262
63
3s

1*8
1911
320

IW

242

4222
4117563
IWI)
2138
117303

I343

48
49

469
728
6066

22117
49s
I885

51

655
1x6s
59I
425

utn

49

50

975I.

I43

I75

5404,

'

34x2

217

377
15Y

46

45

4614

11560

Miniauy 0 f . M
-Ministry of Food Rocirssiq Industries
Minimy d Hralh and family Welfare
Minisuy of Homr Affairs
Ministry 01 Human Kcsourevsand Development

I40
72
2606
6714
549

302
I34
1069
9378
1221

Minimy of Industry
Mio. of I (Y B
~ O f L b O u r
Minisay of Law. Justice anti Cornpray Maim
Miniof Mis

70I
2862
1353
433
2286

966

3068

6W7
742
502

20107
2795
1703
7264

62
63
64
65

Minktry of Nun-Coovenliorul W g y sourcCs

141
Ministry of Rrli.mrowy Affairs
I2
Minimry o f m o e l . plrblic Ckiewleu.odknsions3tlEl
Minimy of Rsookum and Nuucal ckr
32
Ministry of PlanningdRognmmc lmplcmenuiion 280

75
44
4662
I 05
594

66
67
68
69
70

Ministry of Ibwu
Ministry of Railways
Mimi.ury of Rural Anu and h p l o y m c n i
Miistry of Science .ad Technology
Ministry of S~cel

537
9332
192
825

71
72
73
74
75

Ministry of Surface T r a n r p n
Minbvy of Tcxtilcs
Ministry of Urbro Affairs and Employmeni 1368
Ministry of Water Resourns
Ministry of Welfare

IOUI

76

Ministry of k k n c c
lkpanmltni of Atomic Energy
I k p n n w n t of Electronics

52

52
54
55

56
57
58
59
60

61

YO
91

49

166
2863
1351
I I7

9%

406
5470

511

700
404

11227
4.56321
3195

WJMI

7%

1773X
4026
885I
6945
413

262

5ZSR
161936

17bU
735

22774

4194')

xx

1144.50

7412
1x84
X14Y

2244
599

12437
6619

201 2
2

10.52

no

11491

4710
2
I8547

2x

758
93dYl4
7U?

7WI
6W14

777 I

?6

116s
101
4654

626
I22

IS3

1798
I I9

324
22398

1769
IhU3O
I w37

40427
8126
3237
I 1558
44Y

I10
7 1%

64
397
265
547670
5(N
9245
IS2

302
5925
19(1(,

42

1301428
I w5
23359
5x2

2Y6S I

4Y266

1627

614.1
35480

43117
238

14247
lola

I 1688

ivszow

2937

40x3

.5VX647
;04N 1

404

242

1526

234

1564'

230

2.

1.

Depurmnt of Space
('ahiact Sccrdariat
ResidcDt's ScLretyiai

102
105

l4imc Minim's Office

I06

Ccnual Vigilaact Commission

Urction Commission of India
Planning Commission
Indun Audit and Accounts Service
supcm cwli
High Couli of Delhi

IOU
112
113
I14

T\

3.

4.

5.

6.

4Y28
592

2886
4 14s

22

nv

6377
4614
97

29

I35
424

1454
465
95
I in

91
100
101

107

JI)

tryst

1.10
31

25
I272
222 I
I90
101

sn
81
1891 '

12665
'

619

I17

141

73s
56
152

I sws

w 16
lo3
425

4%)

173')

57

202
136

91

I164

571

41YX

49468
100
59 1

060

7Ul4

668

1577

Tn(.l- 1
11

7.

206%

3872616

UnlOaTcrrl(0rks

12202

Delhi
I2203 'A&man and Nicobar lsl~nds
I2204 Labhadweep
I2205 Dadra and Nagiu Haveli
I2206 D a m and Diu
I2207 Pondicherry

1903;

Y904

312

541

54

2(K,
58

86

75705
13175
2840

Y407Y

7567
9593

1910

31R
647

7436

2162I
4580
2372
2687
23105

27041

IS W 4

87
1071

5Y2

11157
14m

3513

11397

108493

1480

--

Gnnd Total (i+fI)

76078

130447 2699062 1095977

---

Gm:Sutisliul Schedule received fmm Ministries.

23 5

m%

402306U
---

ANNEXE 26.8

AUTHORISED STRENGTH OF ALL INDIA SERVICES

Service
---

1971
.

.__.

__ ---__
~

1984
--- --- -.

1; 1.%
--

- _--

2.

3.

4.

Indian Administrative Service

3203

5047

5067

Indian Police Scrvice

1796

2679

3344

1.

236 :

ANNEXE 26.9

DISTRIBUTION OF POSTS BY PERMANENT AND TEMPQRARY STATUS

AND MAJOR DEPARTMENTS

Min!str.

12.45
89.0

1.54 13.99
11.0 100.0

13.92'
92.5

1.13
7.5

15.05
100.0

Cmnunications
(% tc Total)

3.10
78.9

0.83
3.93
21.1' 100.0
,

5.1 1
74.7

1.73
25.3

100.0

Defence (Civilian)

3.12
52.3

2.85 5.97
'47.7 100.0

5.15
71.2

Other Departments

3.66
6l.7

2.27 5.93
38f3 -100.0

22.33
74.9

7.49 29.82
25.1 100.0

Railwvs
(%to Total)

(% to Total)

(YOto 'Total)
Total
(YOto Total)

S0UK.C:

1
2

C2.7'3
82.3

15.46
100.0

1.60

6.18 .
82.0

1.36 7.54
18.0 100.0

-0.37

2.08 7.24
28.8 100.0

6.43
95.5

0.30 6.73
4.5 100.0

-1.78

6.41
73.2

2.34
26.8

8.75
100.0

9.59
79.7

2.44 12.03
20.3 100.0

0.10

30.59
80.8

7.28
19.2

37.87
100.0

34.93
83.6

6.83 41.76
16.4 100.0

-0.45

6.84

Report of the Faurih Pay Commission

Data compiled by the FtAh Pay .-ion.

23 7

2.73
17.7

ANNEXE 26.10
DISTRIBUTION OF FILLED POSTS IN CENTRAL GOVERNMENT AND
IJNIONTERRITORIES IN DIFFERENT SCALES OF PAY AS ON 31.3.1994

1
2
3
4
5

6
7
8
9
10
11

12
13
14
IS
16
17
18

19
20
21
22
23
24
25
26
27

9ooo (Fixed)
8000 (Fixed)
7600-100-8000
7600 (Fixed)
7300-200-750-250-800
7300-100-7600
7000 (FlXCd)
5900-200-7300
5900-200-6700
5 100-150-6300-200-6700
5 100-150-5700-200-63oO
5 100-I 50-6150
5100-150-5700
4800-150-5700
4500-150-5700-200-7300
4500-150-5700
4100- 125-4850-150-5300
4000 (Fixed)
3950-125-4700-150-5000
3700-125-495O-150-5700
3700-125-4700-150-5000
3700-1504450
3640-I 1 0-3750-130-4400-160-5200190-6150-230-7300-280-7580
3300-120-3900-150-4800
3200-100-~700-125-4700
3 150-100-3350
3 110-90-3200-1
10-3750-100-4400-.

II
167

21
51
4%
0

0
3
0

0
0
10
1

I 30

3087

54
0

IG
839
252
41
173
17
5799
71 1
0
21 1

452
10462
18
4

11

170
7
21
51
466
1
131

3
0
3
41
31
0
2
15
51
355

3141
16
839
255
41
176
58
5830
71 1
2
226
503
10817

19

0
32
0
0

65
459
800
8

1036
26256
39
7

I82
1209
0
0

1218
27465
39
7

27450
20763
54620
73728
129334

1801

29251
20918
56380
75300
143378

65
427
800

160-5200-190-6150-230-6380

28
29
30
31
32
33
34
35
36

3OOO-100-3500-125-5@0
3000-1003500-125-4500
3000-125-3625
2525-75-2750-90-3200-1
10-3750130-4400-160-5200-190-5390
2200-75-2800-EB-100-4OOO
2375-75-3200-EB100-350
2OOO-60-2300-EB-75-3200100-3500
2000-60-2300-EB-753200.
1640-60-2600-~-75-2900

238

155

1760
1572
14044

(Nwnhcrs)
Pay Scrks

Central
Union
Government Territories

1.

37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

2630 (Fixed)
2630-75-27W
2630-75-2705
2300-Io0-28W
2075~-2375-75-2750-90-3200-1 10-3750130-4270

2()00-60-2
120
2000 (Fixed)

2.

3.

4.

236
I45

0
96

236
24 I

78
2

0
0

78
2

1975-50-20~S-60-2375-75-2750-9O-32oO-1 I 0-3750-I 30-40I0 6

1810-70-2510-80-3280
1600-50-2300-EB-60-2660
1400-40-1600-50-2300-EB40-26Nl
1400-40-1800-EB-50-2300
1 350-30-1440-40I 800-EB-50-2200
1 320-301560-EB-40-2040
1200-30-1560-EB-40-2040
1200-30-1440-EB-301800
I 150-25-I500
1000-25-1320-EB-30-1750
975-25-1 150-EB-30-1660
975-25-1 1 SO-EB-30-1540
950-20'-1 I 50-EB-25-I500
950-20-1 150-EB-251400
823-15-900-EB-201200
8 0 - 15-1010-20-1150
775-12-871-1 4-1025
750-12-870- 14-940

89242
8988I
230429
26468
185007
200604
135017
13315
118

3 I2079
23959
436966
88992
547707
354607
233058
547241

Total

3872616
~~~~

-~

* This includes m a i n non-standardpay scales.

239

lobtal

0
0
382
291183
4246
540
4388
15221
619
3543
0
795
1355
8425
29743
3819
3561
3738
18763

1-44

I
6
I
8(3(,24
119764
234675
27008
189395
215825
135636
16858
I18
312874
23314
443391
118735
551526
358168
236796
566004
4023060

ANNIXK 26.1 I

MINISlHY/I)I<I'AAW'I'MEN1WISK

'OS'I'S IN CKN'I'WAI. (;!)VI<KNMKNI'ANI) UNION

KS RY I'AY SCA1.E
AS O N 31-3-1994
code

1.
40
41

42
43
44

45
46
48
49

50
51
52
53
-54

55
56

57
58
59

60
61

62
63
64
65
66
67
68

69
70
71

72
73
74

7s

Central Government

............................

Ministry of Agriculture
Ministry of Chemicalsand Fertilizers
Ministry of Civil Aviation and Tourism
Ministry of Civil Sup. Con. Affairs dlt Pub. Distri.
Ministry of Coal
Ministry of Cormnerce
Ministry of Communications
Ministry of Environment and Forests
Ministry of External Affairs
Ministry of Finance
Ministry of Food
Ministry of Food Processing Industries
Ministry of Health and family Welfare
Ministry of Home Affairs
h4nistry of Human Resources and Development
h4inistry of Industry
Wn. of I & B
Mbistry of Labour
Mtnistry of Law. Justice and Company affairs
Ministry of Mines
Ministry of Non-ConventionalEnergy Sources
Ministry of Parliamentary Affairs
Ministry of Personnel, Public Grievences and Pensions
Ministry of Petroleum and Natural Gas
Ministry of Planning and Programme Implementation
Ministry of Power
Ministry of Railways
Ministry of Rural Areas and Employment
Ministry of Science and Technology
Ministry of Steel
Ministry of Surface Transport
Ministry of Textiles
Ministry of Urban Affairs and Employment
Ministry of Water Resources
Ministry of Welfare

240

21

2
2

10

2
2

,..

1
8
31
4

1
1

3
I..

5
2
23
25

3
9
2

27
33
2
6

.5

5
1

2
3

I1
3
3
5
2
4
3

1
1

I
2

3
6
1

3
2
1

3
:.

14

I
6
132
2
5
2
5
4
5

x
5
3
20
342
16

128
532
5

2
85
117
11

13
46

13
12
21
1.
1
17
6
10
40
1019
9
14

13
20
4
46
40

rude

2.

1.

7t7
(Af

01

92
93
100
101
102
105

I ob
107

I 08
112
113
114

3.

M m w y 01 I )cicnce
I )rpuciiiciit ol Atoniic 1:ncrgy
Lk~)i~lllieiit
01 l l l e ~ t r ~ t l ~ ~ ~
Departriicnt oi Ocean Development
Ilepartmznt of Space
Cabinet Secretariat
Iresidenis Secretarial
Prinir MinistersOffice
1JPSC
Ceiitral Vigilance Commissioii
E1ectic)n (ommission of India
Plmning Commission
Indian Audit and Accounts Service
Supreme Court
High Court of Delhi

5.

6.

7.

IIX

1
i
1

52
2
87
50
7

9
&

I
3
1
1

_.
1
1

3
2
I

3
2

IS

6
07

T ~ t d I-

I1

11.

HI.

4.

167

456

3087

10

54

____11

Grand Total (r+II)

_._

Source: Statistical Schedule received from Ministries.

24 1

---._

170

7-

466

3141---

27

27 1
Optimiwtion of the Go\ crnmcnt machlncn . rightsuing of
Government. ~\mk(brce
sue wnml -thcsc arc VMOUS facets of chc samc problem
It must have been not~ccdthat reductron m the overall s i x of the bureaucraq is the
Underlymg idea beh~ndall the civil senicc rcfonns that wc ha\e advocated m the
predmg drspters Here we would like to gather all the threads and describe
the overall strategy in clear-cut terms.

OVERALL STRATEGY
We would like to divide the overall stratea into four main
27.2
sections as under :
kinm1mi~J
qnarrtnm dwwk

I)

Suggestions tb8t will lead to reduction in the quantum of work kft

with the Central Government. We have to :
1)

ii)
111)

IV)

v)
\ti)

Rduc'itn#d~e*, b)
rwga&u/icutul
restrncttiring

Ascertain tasks that need not be done by Government

Pass on tasks to Statc Governments
Trdnsfer certain tasks to corporate entrties UI public
sector
Contract out tasks to the prn atc sector
Transfer some entities to the cooptntivc serctror
Convert some institutions into autonomous'bodies

Suggestions that will lead to reduction in number of employees

required, because of organisational &structuring. These includc:
1)

ii)
iii)
Iv)

Reduction in number of Ministrics and Dcpartments

Inuoduction of ot'rrcer-orient4systcm in Government
Dclayering and lcvcl-jumping
Multiskilling

242

J w ~ I ~ w ~ J wc)
~ o

iidncluwi

Id

11%InIth&q

Sug@ons that will d w the neccssity for so many employees due

to induction of technological change in Government Thcsc includc
I)
ti)
iii)

iv)
Righ~citrcig

d)

Coniputcri/.tion
Ollicc automation
Crcation of a papcrlcss oficc
Chmgcs in office syaans and filc manapicnt

RightsSng strategies that will enabk Government to shed some fat

Tbcse include .

.wkpr.$

1)

ii)
iii)
iv)
v)

vi)

Abolition of vacant posts

Frcez on recruitment
Across thc board cut
StaLutoIy control a1 cftllljon of new posts
Voluntary rctircmcnt
Compulson Ktimment

Thc itcnis at (a) to (c) have already becn covered elswhcrc. In

27.3
this chapter. w will conantrate on nghtsizing under item (d).

MOLITION
OF VACANT POSTS
. v ~ h r r o / w m274
~
p
u
C
r

Cumxltly. thge are around 3 5 I& posts vacant MI Go\.ernment

Some of thesc hale been vacant for sonic time and rhere has possibh been no
cktmomm m Go\.emment's f w w g because of the vacancies In fact. m a m
areas might have q m v e d because a fm posts are vacant. Even today. the
instructions of the Go\.cnunent lay down'that if a post has f u n a d vacant for
mare than a year. the p t is Qccmcd to have been abolished.

(hr
m mmrtidatmns

27,s
We mommemithat Govenvnat aboW these 3.5 lrkh posts
at One Sttoke, \mless 111 Some p O d C l k
Go\.emmcnt fCCk dJlcrwist. V ~ O U S
arguments will naturall? bc brought up against such a course of action Posts fall
vacant due to vanous reasons T h q remain vacant due to other. very cogent
reasons. None of these rcasons are possibly the fault of the administrative
department As such. @ should not be made to suffer

SIWragv fiu

27 6
It may also be pleaded that vacancies arise at different levels If
at all such vacant pasts arc tabe abolished Ministries should be allowed to fill up
the higher posts and only the posts at the .lowest le\rcl where fresh direct
recruitment is to take pface should be abolished. This would ensure that
promotions to higher posts are not retarded due to abolition of posts

abolitmi

27.7
Anothcr argunxnt could be that abolition. like crcation. should be
'NihK1i'N1al
a conscious decision bascd on functional considcmtions and it should bc rcsorted
mmidrrutiwis :'
to only if a surplus is identilied after a proper,work stud\.
A hditioii huwd

nit*.;irpniriitJ
iim lintly

27 H
All thcsc liiics of reasoning proceed from a central assumption
which is fault?.. h is bang iissuincd that mare people makc 'm organisation

clkicnt Oncc wc undcrstand that wc haw too niaiiy cmploym in Govcrnnictit.

duction in numbcrs will bc scen as an attcmpt to rcducc t k croiyd. Pmplc \viIl
\vclconic it IS a stcp in thc right dircction Secondly. c s p e n c c has shown that
wdi studics o h lcrd to m u n c l d a t i o n s for additional staffduc to thc countcistratcgics Ibr inflation of workload adoptcd by thc esisting staff If \vc wait for
work studics to identify surpluscs. \vc may haw to wait indcfinitcly. As far IS
promotmn prospeas iuc concerned. wc cannot makc an omelette without brcdiing
some eggs. whcncver hvnsizing initiatives are undertaken. someone will be hurt
That is why we ore introducing the Assured Career Progression Scheme as an
antidote. so that people do not at least suffer financially. .

27.9
We. therefore, recommend that no arguments should be
allowed against the decision to abolish the existing vacant posts.

FREEZE ON RECRUITMENT
27 10
It would be of no itse abolishing thc vacant posts. if further
recruitmentgoes on memly. without any brakes being applied it is reported that
currentty around 70.000 posts are filled up every year. Obviously. most of these
on: at the level of supporting and auxiliary staff
27 I 1

Our b c thesis IS that we are holding top much manpower at the

level of supportmg and a u d i q d a n d that we should move towards an officeronentedorgmsatitional structure This can only be achieved if a total freeze on
fresh recruitment-ofmanpower in the categories of supporting and auxiliary
staff is applied.

27.12
As regards the e.ecut~uesand suptxvisory staff. the frcsh
recruitment cannot be stop& as this would result m cadrcs that are twisted out
of shape Govanmcnt has almxty broughtdO\\nthc fksh intake mto the IAS. IRS
and other services. The duction in intake has to be applied in all services that
operate at the k v d of executives and supervisory staff.

ACROSS THE BOARD CUT

27 13
The next step is to frome a ten-year manpower plan If we have
to plan for a 30% cut across-the-board within a time frame of ten years, it
wouldamount to 3ye duction in manpower levels every year. As h s is the
tKwmal attrition rate due to ret~ments,deaths. resignatians etc.. a total freeze on
fresh recruitment alone can achieve the 30% reduction within ten years To the
extent that fnsh recruitnients are made. as in d e cadres of executives and
supemisary staff, recourse may have to be had to other methods of reducing
manpower lcvcls

STATUTORY CONTROL ON CREATION OF NEW POSTS

27 14
There is a tendency on ,thc part of departments to send proposds
f a ae;ltron of new posts for my additional schenics that they may bc called upon
244

to mlplcmcnt It is riuc for a Sccrctan or

H a d of Dcpartnicnt to figurc out nays

and means of dovctailins thc schcmc in thc job list of csisting functionaries
Rcsultanth. cvcn if sonn:jobs arc cut. tic arc back at squarc onc if an cqun alcnt
number of f i h j o b s an:created in thc nrcantimc This has bccn thc fatc of all thc
](PAcuts that ofc ordmd. somccinm by thc hlitustry of Financc. somctinrcs by thc
Pnme Minister Parkinson's La\\ opcrates. inviolatc
27 I5
One mcthod adopt& dsmhac m thc w d d IS to havc a statute on
aumbcrof posts sanctioned in all Ministries and Dep;ulmcnts of Govemm~nl
This number then acts as the ailing beyond which no om can raise the numbcr of
sancti&ed posti'svithout approaching Pwliiunent for an amendment of the Act
We recommend that such a Ceiling on Sanctioned Posts Act be gotenacted
by the Government.

VOLUNTARY RETIREMENT
>

27. I6
Wc havc in a q m t c chapter enunciatcd our mnccpt of voluntiq.
retirement Two kinds of schemcs are cnvpaged. Thc normal procedurc for
voluntary rellrement A c r completing 20 ycars of senicc is to be continued. Over
and above this. a special schemc of voluntary rctircmcnt can be started in any
departmentwhere surplusmanpawer has becn identified. In such a scheme. there
will be provision for selective retircmcnt of persons. the initiative always resting
with the Government. and fix a goldcn handshake. It is ho* that such schemes
will be made use of, in order to render it easier for people to tide over the
difficult period of unemployment following the operation of redundancy
procedures.

COMPULSORY RETIREMENT
27.17
compdsor?, rctircmcnt i s not csactly tuned in to the nghtsinng
of Government. In fact, the accent here is on gettingrid of people who are either
mwmpetent or l a c h g m integrity But it is possible to launch campaigns for
r e t i m t s of a compulsory nature in departments where redundancies have
been noticed.

INCEmVES FOR RIGHT-SIZI NG

S U V U I can
~ A hr
dwemd

27 18
It IS also possible to mncei\c of in built incentives for nghtszing
of dqmtments One idea has bcen floatcd b\ us in the context of manpower levels
m the dfirces It has been suggcsted that long-tcrm perspectives on defence
budget allocallons be approved b\ the Minism of Finance. \\ ith the proviso that
if the Chiefs are able to save on manpower-related expenditure the savings
can be used on other expenditure of their choice. say. for purchase of
eqmpmmt A similar incentive can be offered to all Secretaries and Heads of
Departments. This would be a one-way valve. Only savings on manpowerrelated expenses can be diverted to other productive uses. The reverse would
not be permissible.

2-45

l l l ' ~ , * l l I l \ ~ lI~
l l\l l I l l

\lIwffg~

27

11)

Atiahcr I mmt on h c smic thcnlc IS tlrc idca that In casc a group

tcani arc ashcd to rcducc thc SILC d t h c tcam. a certain

ot' pcrsons \\orling 111 a

percentage of the saving on manpower-relatedexpenditure can be distributed

among the remaining members ofthe team, provided that the reduction in
team size i s made permanent through abolition of the post and all the
production or service targets are fulfilled in time.
G I lrnltrd~
wrtlnndt . w r * r r r g

27 20
Awards* Rewards, Prizes etc. could be made contingent on
having aihieved a certain minimum reduetion in the manpower of the
organisation headed by the person concerned.

27 21
It IS OUT fun1 bcld'that ifan almosphcrc for nghtslmg IS crcalcd
nght from che top. 1-' won we can achrcvc the optimum SIX of the Go~cmmcnt
rnachmq Some detailed strategies for individual sectors are outlined in the
next few chapters.

240

28
I

INTRODUCHON

28.1
Our strategy for optimization must start from the LOP. We arc.
therefa, largewng the All India Saviccs and Group A Ccntrd Civil Services first
of all Our recommendation is that there should bc an across-the-board reduction

of 30% in the overall siix of thcse Scrvices Details of the strategy arc contained
in thc rekvant chaptcrs
Servicewise
slrolegtes

28.2

In the rest of this chapter. we outline our strategy with respect to:

A: The Engineering Services

B: The Scientific Services and

C:The Medical Services.

scctaal Strategies

28.3
The remaining Chapters of this Section deal with sectoral
strategies in respect of the railways, the postal services, the telmm services, the
Central Police Organisations and the defence services.

Introduction

28.4

The enginaxing functions performed by thc Central Government

departments and agcncics vary from conventional civil mnslruction, manufacturing

and mining to modem-day tcchnology-driven arcas of telecommunications,

clccuonics-rncdia and powcr managcmcnt. Wc have discusscd the problems and
scnicc conditions of organiscd ctiginccring scnficcs later in this report. Wc will
discuss hcrc thc impact of cliaiiging rolc of thc govcrnrncnt on its cnginccring
functions.

247

I.bitc.titniul h r d a* ti

28.5

An analysis of tlic broad rlctivity-\visc b r d - u p of organiscd

(?i
~~>~'r?ittla~tl!
crigimiig scrviccs rcvcals that niorc than half thc work forcc is cngagd in civil
acI ti c c r i ii

wi~hrrt-

constructioii and manufacturing functions. wliilc anothcr morc than onc-lourth is

cniplqd in tclccommunications and clcctronics nialia
Distribution of Enainccrinn Pcrsonncl in Orcaniscd Scnlccs
Organisations

Activity

Civil Cotwwiicm (including Central Public Works Ikpulmcal Bada Roads 9. I J I

SuwcyordWculis. Ebclrical O r g a n h l i o n , M i n k k y o f S & ~ .
(41.24%)
atid Medunid Fngi-)
Ministr?. of Inlanution & UPodorsting. Railways
Post & Tclcpaph Civil Wing

!i4uwfaduring

( h h n c c Factories. Railways, l C ~ b w f nFactcries 3.29U

(14.87%)
leksonnnunicat ions.
El~rlPonicsMedia

Dcpu(mmt dSciencc & Trctulolog): Ministry of

M k
Materials Managcment

CaMtltancy

SIUdy

60.3J3
(28.08%)

DepmlmmI oflclccommunicalic. Yinistr). of 6.849 . 59.83I

InfTation A lhdcasling (AliA DD),Railwa>s(30.8%) (27.84%)

1.29S(5.84%)
Survey. Mining

(10.649
(37.52.0)

489

2.315
(1.11%)

3.343

(2.20?1) (1.56%)
(Swvey only) (Sunry only)

Railways (Stores), D i d m t c General of Supplies 1 . 1 0 6

dr Disposals. Na\d r\rmunrnt Supply Organisation (4.98%)

(1.360
(3.89%)

28.6
In the context of the new economic policy mitiatives by the
Central Govemment in early ' ~ O S , we commissioned the Indian InstiMc of
Technology (IIT), Delhi to examine among other things, the role of engineering
petsannel in the Central Government in the changed socio-economicand political
environment. The report-of IIT, Delhi observes that the counuy is in an early
explaratory stage of liberalisation, pnvatisation and globalisation but certain trends
noted in the report as reproduced below are significantpointers to the future of
engineering functions of the Government

less government : Government will play a more supportive role - a major

shift from earlier active 'doer role'.
athree-wDartnashl'@ of Industry,NGO's and government will emerge.
Industry will be trustee of technologics, production and industrial growth.

Social Investor: Escalation of social investment in irrigation, health,

education and other aspects of wclfarc. Even in these areas
implanatation m
y bc off loaded to private Engineering Procurement and
Construction (EPC) firms, NGOs and peoples' p u p s .

Essential Govcmimtt Arcas such as dclbicc. intcmal saurit>. will

rcmaiii \\it11 govcmniciit Parts of' dclicncc production. maintcnmce and
construction may bc off- loadcd
Planning. projcct appraisal and
monitonng. qualie assurancc and ccrtifications \sdI continuc to bc a
go\rmmcnt rcsponsrbllit!

Privatisation. Will bc progrcssivcly adoptcd to accss r c s m c s , latest

tcihnology and bcttcr perfomiancc.
Rcwlator\. govcrnmcnt Rcgulatoy rolc of government is cxpcclcd to
incrcasc.
Global standards Global standards m quality, cost and scrvice will requirc
cnginccrs to rcmain abrcast of best in cnginecring practice
Middlc-bulge: Thc rolc of middlc lcvcl cnginccrs is expcctcd to bc
rcduccd.
Diversity in role and Drofilc: Changes in the-role and profilc of different
engineering dcpartmcnts/ministries will vary significantly.
28 7
In the context of our overall strategy for right-siung of Government
c*onsaucmn and oubed in the previous Chapter, we feel very strongly that Government need not
GnI

~t.lCrrnr~-t?

involve ~tselfin civil-construction and manufactmng acuvities which employ a

large engineermgwdc-force In fact, particularly in the field of civil construction
where pivat: participation is significant, the government needs to drasucally
reducenumbcrs We fmd from anotherreport of an inter-departmental group
constituted by us that the establishment in construction agencies of the
govcndnent is invariably created on the basis of the 'outlay' for works. We
conjidcr'this concept to be totally out-of-date and recommend that the
Government discard this principle forthwith. In our opinion, the
establishment in government construction organisations should be created
p u d y on the basis of worth-of-chargefor mere management of construction
work rather than with a view to building an empire of government
tbneti~nrtk.WChaw d i ~ thed=port of this inttr-dCpmentd
lam
in the Chapter on 'Engineering Services'
28.8
Manufacturing activity likewise is an aredwherefrom the govcmment
can totidly withdniiv itself, with the possible exception of critical strategic defence

equipment. In Railways, for instance, a Committie constituted to study the

'Organisational Structure and Management Ethos of Indian Railways' has
recommended. in its report submitted in 1994, that the Railways shoufd shed off its
activities in periphaal areas. This Committee suggested converting railway
pfoductian units, waicshops and printing presses into'fdiy owned corporations of
Indian Railways, to be later associated with public capital from financial
institutions and.industry. We undcrstand that the Railways have built their
manufacturing and production- capacitics with a vicw to be self-sufficient in
maintenance and production of rolling stock assets, This infrastructure is. v c n
valuable -- out of total assets of Rs.33,743 crorcs as on March 31, 1995 in
Raii\vays, the plant and equipment account for.Rs.8,5oOmores. Ifthe value of lami
and buildings of worbshops and production Units and that of skilled manpower is
also taken into account, this will constitute ti significant portion of the railways'
1

249

assct-basc Dtil probably thcrc ts no comiiicrcial. sciaitific systciii of ssctaccountd in Hail\vays \Vc @her h a t thcrc i s hca\y ovcr-capitalisation in railug
~wdishopand production units. and aftcr modcrnisation ofworhshops a capacit~
far in csccss of in-liousc nccds has bccn crcatcd Wc arc of thc opinion that thc
railway workshops and producuon units can bc t&cn up for imnicdralc
caporatsation We suggest that the railways assess the installed capacity of
workshops and production units and re-evaluate thcir assets on sound
commercial principles to facilitate an early corporatisation of workshops and
production uhits.
28.9
Thc deum fktorics producing convcntional tclccom cquipmcnt alrc
losing thcir significancc in a tcchnolog?r-markct diivcn telccom sector It is timc
that the governmcnt withdraws altogcthcr from this area too.
28.10

Wc havc madc our suggestions on ordnance Factones elscwhcrc in thc

rrporl.
7zlc
cotam~niCarims
and Eiecatmic.r

Mediu

28. I I
The tclecom sector and electronics mcdia arc thc cpiccntrc of fastchanging tcchnology and market forccs are threatening to ovcnvhelm thc
Govemmcn( in dus sphere. The 'changc' is inevitablc. Thc Govcrnmmt nccds to
change policy and re-adjust its role on a war-footing. Whilc tl~crcccnt National
Telccom Policy has ushered in private participation in basic telecom and valueadded sqrvices, total freedom of 'air-waves' is only a matter of time in the age of
satellite TV. There .areindications that thc Government is alrcady gearing up to
compete with global players in this field ---- the recent decision to partly privatise
Doordarshan's Chanhel 3 and Go\emment's cfforts to prc-empt the 'Direct To
Household (DTH)' satellite project of a well known global nicdia giant are
instances in'point. We are, howvcvcr- of the firm view that the Government will
faoe severe ccmstraints in its bid to compete nith powcrful canlmefcial interests in
thesehgh-tech areas. The BsSeSSmCntd t h e role of the Gov-t
in this regard,
made'byIIT, Delhi in its report ref& to above is. quite appropriate as reprcxiu~ed
belo\\:

"Typically in some of engineering govemment departments, like

Telecom, there is every idcatioaof a siieablc off-10of work. The

issues are not'just that of privatisation and liberalisation but an equally
important set of concuns on what constitutes the essence of a national
governance system, Clearly, matters in Defence Ministry that touch the
@ty
ofcorrntry shall m
ain w d l government
~
and engineers w w l d continue
in iheir conventional role of planning, designing, maintaining and upgrading
periodically the engineering and the technological system. . But equally likcly
appears the strengthening of a parallel trend wherethe activities of Telecom
Departmeat and the Electronics ikpartment which have a high consumer
interface 'shall devolve .to agencies outside the governmental system.
Specifically, the regdatory function including planning, quality control and
monitoringof the govemment would be in the upswing and the manufacturing
and R&D function will get rcdefined if not substantially down scaled, To that
c x l ~ n the
t rolc of a segmcnt of c n g n m would get modificd to incorporatc thc
judicial functions."

250 :

28 I 2
The Government has already initiated legislath to
constitute a Telecom Regulatory Authority. The India Infrastructure
&port compiled by a 13 Member Committee headed by former Economic
Adviser in the Ministry of Industry, Dr. Rqkesh Mohan and made put& by
the Government in January 1997 incorporates recommendations of far
reaching importance and may form the basis for. economic reforms ia the
countrys infrastructure sector in the coming years. I t has been
i q x m m d d in the rep; that the Department of Tclecom be corpontised
as India Tdccom. We endorse this recommendation of the report. We also
pdvise that the Government immtdhtdy create the hg-awaited and overdue
Irasar Bharati Corporation.
.\.lotrrtctk

**mragmztit

Restrutturitig
itrevitahle

28. I3
Wc have noticed certain degrec of redundancy in materials
nlanagement stream as well, particularly after recent decentrdisrtion of purchases
niade by Directorate Gencral of Supplies and Disposals We have dimmed the
i~sucson Indian Supply Service and Indian Inspection Service in the Chapta on
hgineering Services. We suggest that-the Govcrnmcnt considcr significant
rductionin engineering w d - f m c in DiractorateGeneral of Supplies & Disposals
in the light of its reduced role in procurement of materials. We also ~wxnmend
that the Indian Supply Servicc (ISS)bc abolishcd in the long run wiihout any
prejudice to the career interests of thc existing members of the Senice.

28 14
Finally, me express our agreement with the conclusion of I1T
report that m view of discanible trends &.by
us earlier, a major restructuring
o f government ministrics/departments is inevitable in the long run and we
should respond to this situation in a phased manner. I t is our estimate that
a reduction of the total manpower in the engineering cadres by 30% within
a decade is very much possible.

Role, ObMtiiws

amd Activities

Dislributinrr qf
the services

28.15
Transfbnnation ofthe Indian society in its dentlcss march
towaal~props, seif-reliance and grsbal Compditiveness, as agoal of Screnct rufid
tcc:mology, is one of the major concerns of the Government. Covering a var&y
of rields of activity like Biotechnology, energy, ocean development, agriculture>
me,eorology, dectronics, communication, space and atomic energy. :.cientific
scrviccs exist in organisations concerned with work relating to. basic or applicd
rescarch, cxperimental development and design and engineering.

28 :6
Contemporary scientific and technological activity.
particularly of the research and development variety, is generally carried out in the
Central and State Government S&T Departments. and in sonic of thc socioeconomic Ministries, Non-gomnmcnt organisations. indcpcndcnt iesearch
institutes and m-house R&D by private sector industry The Ccntral Govcrnmcnt
accounts for almost 314th of thc total expenditure on R&D activity in the country
lhroiigh its natmnal laboratorics and R&D institutions The Central Govemmcnt

25 1

Mmistryl
Depttl
Orgrnisation

mai

No. of S&T Personnel

DRDO

5990 2628 2160

Atomic

3107 I l l 5
4848 1685

215

10793

700

4022

803

734 1

469 295%

3847

I73

Energ?.

SP=
DST

171

NC Enugy

166

Electronics

369

1Ii

55

Environment
de F m t s

92 373

355

23

12

Blot Technolorn

34

12

25

DSIR

40

46
17719 6465

742

351

4218

7808

848

32,831

sources

535

27

847

37

DeJClOpllMXlt

OthCrS

TOTAL

3079

72

46

28.17
The largest concentration of the scientific and technological
personnel is in the first four of the organisations listed above At thc time of the
Second CPC the S&T pcrsonncl comprised classcy I,II BtlIl, with a total sttmgth
of 7126 The Third CPC placed the figure at 22,026, cuvcring the first three
groups The c(XrcSponmngfigureas in I994 is estimated at 3 1,983 The trend of
gowith m employing scientific and technological talent in the Central Government
can be gauged from the following:-

CPC
{and year)

Second CPC

GROUPS
B

1427

4771)

929

(1%9)

252

TOTAL

7126

<:rc

CROUPS

TOTAL
f

{and year)

A.

Third CPK
( 1973)

6928
(1 5.4%)

4835
(9.1 O/o)

I0263
(S.6%)

22026
(6.4%)

N.A.

N.A.

N.A.

N.A.

Fourth CPC
(19%)
Fifth CPC

17719
6456
7808
31983
(4.6Vo)
(1.4%)
(-)1.3%
(1.88%)
Source :Reports of respective CpCs (Figurns in hruckets indicatc avcragc annual gmwh

l1M)

Thcse figures show that while lhcrc was a planned increase

of 0.4% annually between 1959 and 1973, thc annual compound rate of growth
dropped do\\m,&asticallytto1.8% bet&
1973 and.1994. But even this lower
growlh ratc is hi@
the the avcrage'rateof 1% for all civilians betwecn 1984 and
1994; it is also higher than the growth rate ( 1.4%) of the armed f m ; it is only
lower than the gro\41h ratc of the central pblicc forces. Juxtaposed with our
scientific achievements, two face stand out loud and clear. One, the impact of
scientific effort was qualitativily and qumtitatively inom pronouniexi, upto the
Third CPC, when economic planning emphas.4 a thrust towards development
of industq and infrastmcture. In the subsequent decades, there is a significant
drop, both qualitative as well as qumtitative.inscientific research in terms of the
impact of its applications. Transfer of technology has outpaced development of
indigenousscience and technology. Projects.like Main Battle Tank,Light Combat
Aircraft, renewable energy sources, malaria eradication, indigenous systems of
medicine etc. have taken too long to reach us, and are still on the anvil. And,
second, the numbers in absolutc terms have still grown during the same period.
28.18

Impact o/
h&cra'Jsutlor,

28 19
De\~elopmcntof new knowledge is essential far the development of a
growing economy such as India, particularly in propagating indigenous and
appropnate technologies With liberalisation,Indian industry is faced wth an open
cummy and being exposed to global competition Acquisition of relevant know
how is indispensable for success in the market place. Comrmtted to spcioeconomic growth through adoption of scientific methods and appropriate
technolop, science and technology bas to measure up to the incregscdpressgcncrated in the process of liberalisamn. Scientific institutions, f a d with a larger
necd to generate research funding, will further fcel the need for state-of-the-art
technologies to remain globally competitive. Industry is not .and MMO~ be
expected to allocate scarce economtc resources far producing knowledge not
M
y related to its profits. A lion's share is expected of the Central Government
fix investment in R&D,requring an appropriate mis for basic and applied science
It will make economic sense for scientific research infrastructure to be of use to
industry lhrough appropriatc linkages and transfer of technologics Industry, thus.
\\ill rcqum a more actm mtcraction with the Govcrnmcnt's R&D effort to exploit
the itvdabk expertise. In ths context, there is geed to strengthen the mechanm
that nurtures a long tcrm relationship bctwcwl domcstic i d u s e and fcswch
labontoncs Scmufic sen ICCS will require all the flexibility at their command to

253

givc crcrttivity and innovation ;t tlirust in this dircution Govcnimcnt is cspcckd

to play an alrcrcd rolc in this scenario.
Kccping in mind thc twin ObjCCti\CS of' thc rolc of Kbl) III
G\wcrnmcnt in thc ncu paradigm and thc nccd for optimising thc SIK of
Gcncmmcirt niachincc without sacrificing my of its thrust potcntial. thcrc IS an
u r p t nccd lo c a q out certain stcps which in our opinion will kccp thc SIIC oftlrc
scicntific cslablishment oTGovcmment in Iinc with its futurc rolc
28 20

Wc commissioned chc Ind~anlnstitutc of Science. Bangalorc.

to suggcst policy alternativcs for thc S&T set-up in Govcrnment, kccping in mind
its futurc rolc in governancc. Wc havc kept in mind thc suggestions of thc study
in making our recommendations.
28 21

28 22
We obsewc that a largc amount of R&D cffort within Ccntral
Govcmmcnt is already camed out by autonomous bodies like CSIR, ICMR, ICAR
ctc. Orgarusing I U D activities along autonomous lines helps not only in creatiic
flmbility, but also enables the provision of appropriate linkages with industry We
recommend that research and development function within Government
should as far as possible, be organised in the form of autonomous bodies to
be aided and advised by Central Comment, except for sensitive R&D effort
related to the Wurity and integrity of the country, which should continue to
be done in Government Departmenti.
Priyutising
ancillary R&D
rnPP0r'

28 23
Some 2ientific research organisations haw organised support scrviccs
Iikc supply of parts and components. conducting routine tests. calibration ctc
within the departmentalised units It is possible to pernit supply of parts.
components and sevices to remain in the private sector without offating thcir
woriung. The Rajan Committee as also the con~ultanc).study haw suggested that
for development of linkages df industry with the R&D effort in Government.
scientific personnel should ba permitted to migrate to industry so that such
anciilary senices can be develqped and farmed out to the pnvate sector. On the
question of lateral movement of R&D professionals we have made our
recommendations elsewhere We also recommend that services ancillary to
R&D effort, as described above, should be progressively disbanded and
privatised.

Conuncrcial
potential

28.24
The DepaAent of Space, Atomic Energy and other research
orgarusations have, over the k a d c s , developed potenbal for providing commercial
services in general and are ffequently engaging themselves in the provision of such
services. We have already noted elsewhere in this Report that thc .-ole of
Goyernment has to bc that of a facilitator to augment provision of goods and
services withm the ecaromy. It is, therefore, essential that Central Government
should not directly engage itself in tapping commercial potential arising out
of its R&D eflort. Transfer of technology for commercial exploitation should
be directed towards the public or private sector enterprises. In the yelcbant
Chapters w ham recommendsddisbanding or privatising of ccrtain scrviccs of this
nature

Overlapping

28 25
Wc also observethat Ministrics and Departments within thc rcdm of
scientific activity perform the functions that overlap with othcr Ministrics or
Departments or thcir attached and subordinate officcs The functions of thc

jitncti0n.r

254

National Atlas and Thcniatic Mapping Orgaii!satioii and tlw Survq of India and
sonw:ofthc organisations dcqling with fislicrics (Fishcn Suncy of'India. Ccntral
I iistitutc of Fishcrics. Nautical and Enginwring lqaining. Ccntral lnslitutc ol'
Coastal Engiixcriiig for Fisheries, Intqrarcd Fishcrics Procjccts. ctc.) arc cascs i n
point. An area 0 1 similar ovcrlap is thc grant of assistpncc and advicc to
Govcmmcnt- aidcd institutions by Minishcs and Dcpartmcnts othcr than thosc
utidcr whom such institutions fall. Wc havc rccommcndcd in thc rclevant Chaptcrs
me!ga of organisn(i0nScngagcd in such ovcrlapping activilics and appohmcnt of
cspert committees not only to identify rttc: overlapping arcas but also to suggest
thc optimal mix of thcsc scientific activities within Central Go\emmenl. We
recommend that such overlappingfunctions as have been directly identified
by us or by committees, based on our recommendations, should be remedied .
within specified time frames which in our opinion should not go beyond the
next five years.
Ahh'.dilling

28.26

Thc Scientific staff arc p c r a l l y engaged in carrying out routine

testing, calibration and experimenting or assisting scientific officers in such wrti
which includes generation of technical papers. . Such staff are also found to haw
common qualifications,but different entry kvels. In the relevant Chapprs \vc have
rccommended a large clement of uniformity in thc cn@ Icvel scalcs and
qualifications, We have also suggested that isolated posts should not csist .in
Gowmmentas far as possibk. Towards meeting thcsc two ends as also obtaining
the optimal mix of scientific talcnt in Central Gownmcnt establishments, it is
ncccssary that besides automating large office support functions in S&T activities.
the staffare also trained in multi-skilled operations so that these personnel having
thc basic minimumqualifications need not get compartmentalised in a single field
of activity. We recommendthat scientific staff should be uniformly trained in
appropriate skill requirements and be part of a multi-skilled scientific work
force. Wherever single and isolated posts are essential in Government for
this kind of routine scjcntit'ic work we kcommend that the services should be
obtained from thq open market.

Optimul Teams

28 27
Scientific work is generally creative and does not remam confined to
hierarchical roles. The spirit of Team-work is of crucial importance in scientific
projects. The incentives recommended by us for working with smaller teams
and effecting savings should form part of the overaU assessment in the
modified FCS procedures.

c~~cluslon

28.28

The above measures have been recommended in order to

organise scientifc activity in Central Government on optimal lines without leaving

room for any qualitative and quantitative loss of objcctivc Our effort should be

to achieve a 30% cut across the board in the Central Government SBsT staff
in the next 10years. We an hopeful that thc above measures will go a long way

towards achieving this objective.

2SS

I hA p : n , u d

28-29
Thc hcalth scctor plan cnvisagcs iniprovcmciit 01'
infrastruclurcthrough delivcry of primary. secondary and tcrtiary hcalth care and
aupmting resc;rrch'wittt.thcaimof achicving hcalth for all by thc ycar 2000 AD
The institutions and organisations in this scctor arc mainly conccmcd with mcdicd
relief & supplies, rn&i@l cducation, training & research and community health

Programmes.
Sue t$nuatapwer

28.30
Thc Mcdical and Para-medical scrvices togcthcr comprise
about 25,258personnel, of which 8327 are medical, and the rest para-mcdical and
support staff Thcst persMlnel arc primarily engaged-in the delivery of preventive.
pranolive, curativcand rehabilitative health care. The Mcdical personnel are part
of three organised services - Ccntral Health Servicc, the Indian Railway Medical
Service and the Indian OrdnanceFactories Health Servicc. Thcre are also somc
medical posts outside the& services. The para-medical personnel arc organised
into 1 1 categories which help the m d c a l men in &Jivering the hcalth semiccs to
the communityat large: The figures of medical manpowcr for thc pcriod 1959-94
are as follows:-

Service

C.H.S.
I.R.M.S.
I.o.F.H.s.

others
TOTAL

Manmwer under different CPCs

2nd
3rd
4th
5th
(1959)

'!973)

(1986)"

(1994)

1073
3880
52I
658
6132

3138
'2259
397
474
6268

3600
1650
550
'200
6OOO

5233
2569
275
250
8327

Source. Reporis of different CPCs

Note

Figures of 1959 and I973 mclude some Group B and Group C posts
also, hence the decline, as only Group A posts were counted in later
years

AnnuolGrowth
Rates

28 3 1
These figures indicate that betwren 1986 and 1994. the
manpower m medical sentids has grown at an annual compound rate of 4 2%
which is quite OonsiderablG when compared with the overall growth rate of I % for
civilian employees during the same period

ExperiencesoJ
the past

28 32
Eatpenments have been made ~ fthe
)
fidd of m e d d insurancc
privatisatm of medicat practiCCs, health delivery services, clinic sharing. etc .
wthm and outs& the country Various Committcts and Government agencies in
the past have gone into the question of organising and re-organising the health
delivery system and services, in keeping kith thc goals of primary and total health
care It has bccn pomted out by them that therc should be no nastage of talent in
the utilisation of qualified personncl for routine duties, overspecialisation should
bc guarded against and curative and preventive measurcs should be integrated

.4 dvcim-rs IN

2 8 33
Advanocs in &ca4 sciences and technologics haw kept pace
with phimnamtical advances. Sidc by side, the emergence of newer discases and

mc*drccrt
'CLL"Ce.'

256

i c-ciiicrgciicc 01' i1ciir-criidic;ltcd oiics ha\ c 111iidcI ~ i l t l deli\

i
CIA .I c,ot11ldc\ ;lild
costl! lash 1 his Iias ;iiso Iiiglilightcd tlic iiccd for coiista~itiipgr;icl;itioii oi'shilla
i ~ ciicoura~iiig
d
rcscarcli a i d tcachiilg c\pcriciicc I'coplc 01' OW coiiiitn ha\ c
f ~ t 111
h Ihc traditional Iiidia~S? stcnis ol' McdiciiIc itiid I l ~ i i ~ ~ ~ ~ p(ISM&
i ~ t l iI I! )
cspcciall\ as ~licscn'iccs pros idcd arc gciicratl\ clicopcr and a\ ailablc iii small
toitiis and rural arcas and t!ic rcnicdics arc hno\\n to bc gciiciali? licc iron1 sidcdkcts A iicu kpartmcnt 01' ISMBH itas crcatcd 111 March. 1995. to gi\ c thrust
to *is grouiiig arca of indigcrous scicncc Thc dcmaiids madc in nicinoraiida. oral
c\ idcncc. cvpcrt opinions and rcplics to our qucstionnairc, havc cmphasiscd the
nccd to rcstructurc thc h l t h tnd mcd~calscn'iccs to makc thcsc morc cfficicnt and
cfl'cctivc \\ithoiit incrcasing thc burdcn on thc common man

28 3.1
Kccping in mind thc abovc trcnd and sccing thc disturbing
ratc of growth of mdcal manpower in thc last decade, wc organrscd a consulta~~c~
stud! through thc Indian Institute of Public Administration to definc thc future rolc
of Govcrnmcnt mcdical scniccs. in thc changing socio-cconomic situation in thc
country and to suggest measurcs for rcstructurtng thc mcdical scniccs Thc stud?
has pointed out that hcalth will rcmain a vital function in Govcmmcnt and. at lcast
tn thc foresccablc futurc. it cannot bc lcft to markct forces which arc drncn b\
profit-masimisation motivc It has also emphasi'scd thc role of primary and
commmty hcdth carc as ajcading one in thc years ahead We ha\ c kcpt in mind
thc suggestions in the consultancystudy in making our rccommendations

Mcd~calEducation and Research is prcscntly bcing camcd out

'in thc Central Government and somc autonomous instrtutions likc
la\\ aharlal Institute of Post-graduate Mcdrcal Education and Rcscarch. Kational
Institute of Communicable Diseases, Ccntral Rcscarch Institutc. BCG Vaccinc
Laboratory. Ccntral and Regional Leprosy Institutes. Indian Council of Medical
Research, National Institute of Mental Health and Neuro Scicnccs. Patel Chest
Institute. National AcadeMy of Medical Sciences, AllMS, PGI.Chandigarh, CIC
During dmussions with us, Secretary (Health.) and thc Director General Health
sCn.icc eqrcssed thc \'iew that medical education and rcsearch should best bc lcfr
to autonomous bodies or private sector. Wc ha\z clsewherd cxpresscd our opinion
that creative scientific rcscarch requires flcxibility and freedom to the estent
possible to bear the desired fruit. We recommend that medical research
28 35
mostl?

institutions should, as far I S possible, also be organised in the form of

autonomous bodies or registered societies.
Recogtising

p,rivarehospitals

28.36
The Minisay of Health has recently issued orders rccognasing
privatc hospitals for in-patient and specialist treatmcnt for Central Govcmnicnt
employees and pcnsioncrs Though we do not advocatc complete privatisation of
' medical and hcalth scrviccs, there is rcason to bclicvc that such a recognition
reduces the pressure of manpower on Central Govcrnmcnt institutions deli\ cring
health carc We accordingly recommend that at least one private hospital in
each city having a CCHS dispensary should be recognised for in-patient and
specialist treatment of employees and pensioners

~'~Jtlhclcl~~lll
SZ17'1CC t

28 37
The Consultancy stud! suggestcd that onc \+a! of attracting
spccialists and supcr-specialists and making thcir scn iccs availablc through
Governmcnt institutions, is to resort to contractual appointments. with somc
flc\ibility to ntgotiatc the icrms bctween thc contracting partics This nicasurc will
o'nviatc thc nccd to have regular nidical ycrsonricl n i t h \cry high qualifications

u,,m I

50.215
31.304

61.141

3 I .9c+
4.07.217
76.02 I
1.92.110
1.14267
4.f10.670
40.097
I .50.2YX
. 55.2W
60.5 12

i6.186

15.622

6.S I .7P9

16.54.066

47.149
32.295
3.0.376
76.948
I .93. I43
1.19.42 I
4.611.755
4 I .410
I .4R, I95
56.m

( h n d 'rcUJ1

4.15.700
77.425
I .')5,0 I 5
I. 14.370
4.4 I .05 I
39.122
1,32.037
54.242
59.065

16.45.221

49.149
30.302
4.16376
77.76 I
I.W.761
1.14.mn
4.27.379
31.025
1.53.61 5
53.511b
57.069

wwi
29.941
4.l6.151
75.155
I .11.672
1.13.163.

15.657

15.411

16.23.495 .

-1.m.mn
37.32 I
53.217
54.050
52.569

I6.02.05I

Source : Ministry of Railways (Railway Board).

StaflCosts land
I*'inaitcial

I'iabiliy of
Raiiways

29.4
Indian- Railways is a labour-intensive oqynisation. The
produdivity ofmmpmver,k r m , is an important factor for thc Organisation in
sustaining fmmcial.viability. The Railways havc bcen successful in arresting
growth ofnumpowxdunng the last fcw years - thc total strength of employces, in
fa& has shown a decline during 1991-92 and 1994-95. Thc cost of staff, however,
has bcen steadily rising as shown' below:-

1950-51

I 157.0

1970-71

1374.2
1572.2
1651.8
164.1
1645.3
16253
1602.0

1980-81
1990.91

1991-91
1992-93
1993-94

1994-95

I 13.1
205.2
459.9
1316.7

913.6

lwodl

5166.3

5760.6
6562.4
7286.3
~076.9

I245
1774
3347
8376
31273
34828
39869
44812
50411

Source :Indian Railwavs : Y e a Book. 1994-95 (Ministry of Railways)

29 7
The staff costs- arc a s u b s t a n t i a l 45% of the ordinar), working
cspenscs in the Radway budget estimates of 1996-97 If liabilities on account of
pension arc included, the staff costs \\ill bc a vcry high 59 5% of the w o r k i n g
cspenses

Rs. in Crorcs (Budget E s t i m a t e s 1996-97)

Ordinary Workmg Expcnsos
16,457
Staff Wages and other Allowanccs
7,448 (45 3%)
StafT Wapcs including Pcnsion
9.798 (SO 5%)
20 I

"Iiidiai1 Rail\va!.s has bccn a rciiiarhably successful fiiia~i~iid

aitcrprise. cs~ixiaII!~wllcii coinparcd to iiian?' othcr raiIt\ays in thc world Dcspitc
thc stcad! erosion of thcir tiattonal lrcight and passcngcr niarkct sharc. liidian
Kail\va!s has bwii ablc to SIHW n surplus 111 iiiost !cars and n satisfacton liquidit!
S I IW iOIi

hi 1092. Bulb stall'cxaniiilcd raiha! acwuiits aiid found that t h ~

iruc costs ol' tlic labour forcc wcrc much largcr than commonl~assunicd 'rhc
addition to thc l'ornial uagc bill of thc \rngcs of casuill labour. pcnsioii payiiicnls
illid pro\ isioii of' housing. mcdical carc alld cducatioii aiid otlicr in hiild iiicoiiic
c in Financial Y c x IOX? to 52 pcrcciit of' opcrating
rarscd the true ~ a g bill
c\pcnscs iiistcad of tlic official tigurc of' -39 pcrcciit 13! Financial Ycar I90 I this
had incrcascd to about 05 pcrcciit as rail \\ages row fiistcr than labour producti\ it!
I n prcpariiiS thc projcctcd fiiiaiicial statciiiciit throug,h the \car 2000 i t as found
h a t thc onl!. \\a\ to maintain satisfadory linancial hcdth \+as to assurnc a stcad!
rcduction in thc labour forcc from l , X million in 1901 to 1 5 million b\ thc\car
2000- a rcduction iii forceof about 3.00.UOOjobs This iiould bring thc truc \rage
bill back doun to 50 pcrcent of operating cxpcnm aid sustaincd financial \ iabilit!
- a positiic ncl rcsult of about 7 billion Rupccs If. ho\tcvcr. thc labour forcc sta!s
constant at the I901 Ic~clsthcn thc Rs 7 billion surplus turns into a Rs 17 billion
(about USS O X 0 inillion) loss in thc !.car 2000

This trcnd has bccn idcntilicd in a rccciit stud!. cornmissioncd by

the Raihvay Farc and Frcight Comniittcc as a stcadil!- risiiig a\wngc capital output
'ratio siiicc 1080-87 aid a stccply rising aicragc cost pcr workcr ovcr thc sarnc timc
pcriod. Thc inabiljtj. to reafizc thc labour saving bcncfits of iiivcstmcnts has
r c d u d druiiaticallv thc marsiiial productivitl of rail iii\*cstmcntwhilc incrcasing
thc dcbt burdcii Thc dcclining budgctar): support of thc Cciitral Go>cmnicnt Is
csaccrbating thc problcm as firnds can no longcr bc found to rcplacc csisting
rolling stock nsscts. .If thc clioicc is bcttvccn thc \ r a g bill and rcplacciiicnt of
Iocomotivcs and ivasons tlic \vast bill. at lcast in thc short and nicdiuin run. ivill
win and Indian Railwqs \\ill bcgin to look iiiorc likc thc othcr finaiicialh. troublcd
r a i l n q s of thc \\odd."
Soiircc

11

11)

Indian Rail\\a! Prodticti\ it! Iiiipro:~c~iicnt Prqect.

Rcport No 100.54-IN, 'Thc World Bank. March 3 1, I002 .
Productivity Optinwation 011 Ir1diiiii R ~ I I \ \ ~Itidiii
~ s . Rail
Tcchnical and Enginccring Scri iccs. Nc\\ Dclhi. 100-3

: 262

Source: Railwa!. Farc and Frcight Co1iimit:cc Rcport. 1993.

Although such intcniatioiiai coniparisoiis arc not \en' valid sincc
Railivays diffcr in s i x , niodc ol' traction. cstcnt of automation. Icvcl of
tcchnologics. sociocconomic cmironmcnt impinging on railway and cvcn nicthod
01' compiling statistics. thc abovc statistics ncvcrthclcss indicatc ihc. tivin
phcnomcna of low productiytty .aiidla\v-paid but unduly largc work-forcc iii thc
Indian Railways.
29. 10
Thc nieasurcniciit of producti\dy of n \ast organisotion likc thc
Indian Railways is a complcs task shcc this would involvc converting all input and
output clcments into \*alucs. Wc haw, howcvcr. madc a limitcd wicrcisc to
csaminc manpower productivity in Railways by corclating number of cmployccs
aiid traffic carried by thc systcm during thc dccadc 1985-86 to 1994-95.-

. ~ ~ ' ~ ~ ~ . Sc!f i ~ ~ ~ ~ ~ ~ l I , ~ l ~

"rr""dc'"?~'

Manponcr and Traffic Carricd

Ycar

19x5-86
1986-87
I 987.~8
l')llX-X9
1989-90
1990-91
199 1-92
1992-93
1993-94
1994-95

Source:

Irio!iici.c

./

I'rodirs / I V I ! L

1ndc.s

U'ngon h s
in rnillions

Index

1613
161 1
1618
1626
t647
1652
1654
I646
1625

I00
99.M
100.3I
I00 H 1
102 1 1
102 42
102.54
102.05
100 73

15.788
17.:04
17.800
I X.b9 I
18,736
19.230

1602

99 32

100
I Q769
112 74
I14 59
11x67
121 xo
I 2 X 53
131 49
I35 07
133 33

Employee in
Ihousands

20.292

20.75')
2 I .326
Z2.OO t

I'ehicle h j n z Indcx
111millions

7,439
'7.624
7.979
x.171
8.502
8.585
X.902
9.170
9.367
9.666

100

1024~
10726
IWRI
I1429
11431

I 1967
12327

I2592
12'H-J

-- - _- - - ..- __
~Data on number of cmployccs and traffic carricd from Annual
Rcport and Accounts ( I9949S) Ministn. of Railways

29 1 I
This analvsis shows that manpowr productn ~ t yin terms of
nagon Km and Vchiclc Km incrcascd b\ approwiatcl\ 39%and 30%rcspcctn cl!
against an almost stagnant work-forcc of I 6 million during thc dccadc Howver.
thcrc has bccn a hefty invcstmcrit of Rs 24. I26 crorcs In Rail\va)s during this
pcriod The dccadc of '80s i s also markcd by important managcrial iniiovatrons
u Iiirl: rontrtbutcd to improi ciiicnt i n productivit\ llicsc inom-ations rncludcd

Vehicle Km

Index

I 0 8 5 -86
1986-87
1987-88
1988-89
1989-90

3 uc
4.30
4 67
4.96
5.57

I00
I13 25

1990-9I
I991 -92
1992-93
1993-94

6.05
6 46

Year

1994-95

Wagon Kiii

I00

I I0 xo
I I 0 xo
i -30 2
I41 09
158 43
I05 84
I82 0 7

121 3
128 8 3
144 68
157 I4
167 79
1x1 82
I02 47
302 33

7 00
7 41
7 70

Index

10 1.09

20 I

ox

Source: Annual Rcport and Accounts ( 1904-95) Miiiistp of Rnitwys

K1Ik.Y \ I u h .

29 12 Thc product~vrt>stud) doiic b> Rail India Tcclmical and Economic

Scnices(RITES) ~ d c a t c that
s dcspitc improvcnicnt in staff productrvit? in tcrnis
of traffic wts. the samc is not reflected in thc gross value added pcr mpcc of staff
cosl aficr 1980-81
Traffic Units and Gross Valuc Addcd pcr Worker

1970-7I 1.22.434
1975-76 I .44.840
I9&-81
1.62.040
1985-86 2,00,x40
1986-87 '2.17.230
1987-88 2.24.450
I 988-XY 2;24.350
1 989-90 2.3 1.5 10
1990-9I 2.39.235

I00
118

132
f 64
177

ins
I83

I R9
195

4.621
5,245

100

6.51 1

141

7.M9
R.208
8.550
8$06
8.791
9.0114

1 bJ
177
1 n.s

I13

I84
I90

I96

1.519
1.557
1 996
1.783
I 567

100

I03
132

IIX

1619
I 598

I04
I07
106

I636
I 748

I OX
I I6

* At 1965,66 levcl constant tariff raics

Source: Railway Fare and Freight Committee Report. I993
.WTttcducriorl
I'orerrriul :

NU I ~ - ~ ~ I
t.

.SllIllV

29. I3 . A further jnerease in the wage bill of Railway cmplqecs is incvitablc aficr
our recommcndations arc implcmented,by Lhc Govcrnmcnt. Remedial action
~ ~ I I ~ J . ~ I I
should also bc simultancous. Thc Railway Administration can igoorc thc \\Tiling
on the wall only its o m peril. The Railways \\ill h a w to achicvc much morc in
tcrms of improvemcnt in staff productivity and rcduction in rnanpowcr than
iiidlcattcd in the slatistics above. A diagnostic study coiiducted by RITES in 1990

264

I0

27
824

15
3

I10

2X

29

23

75

I
6

132

20

20

I 0
4

20

'liital excluding
Casiral Iahour

45

1466

455

295

* Casual Labour I 13
Note:

This can bc adjusted by kccping thc frcsh induction to thc Icvcl of 35.000
men pcr ycar upto !ear 2000 against nornial \vastagc.
Thc staff strcngth pcrtains to 1988-89 and docs not includc staff
.RDSQ, Railway Board and Production Units

fifli-1ivc
nnucItrN1

pr>trti~iui

in

Howcvcr, aftcr considcring thc long-tcnn mcasurcs \+hlcli

involved major design changes and m a i n othcr constraints cstcrnal to thc raiitvay
s!stcrn, the study concluded that the cflcctivc potential for reduction is of the
order of 70% of 2.94 lakhs it., approximately 2 lakh. Thc major arcas of staff
rcduction idcntificd by this rcport arc:
29. I4

rcdundmcy duc to phasing out of stcani traction

0.75 lakh
rcdundanq in rcspcct of train clerks. trollc!micn. pcrsoiincl sinK.
powr supply to closcd facilities and rcsidcntial quartcrs.
workshop activities 0.40 l a b inipro\ cd producti\ ity through
rcvlscd inccntivc schcnic In \\orkshops and othcr nicasurcs 0 40
lilkh

rcviscd norms for pcnnancnt \\a\ maintcnancc 0 . 2 0 lakh

( ;.,,rsrt;rl~trl-r.

SIUCI,~
( 'll,nnrr.~.~rwrc~cf
/!I.

29. I5

With a \icw to updating thc stnff rcduction potential nsscsscd%!

KITES in t h a r rcpon. wc comnitssioncd tlic Institulc 01Applrcd Manpcnver
Kc.scn:& (!14h4R). ?Jcw k l h i to undcrtakc n lirnilcd stud!. ~tli'lollo~ving
tcrnis of

1)

To critically atialysc stal'l' d u c t ion potential asscsscd by M/s

.RITES:

ti)

To updatc staUraiuctiai ptcntial esscsscd I>\

M / s KITES in tlic

l&t of significant changcs in ccnarti paranictcrs likc iticrcasc in

lraffic pnd stafTcosts, tariff and capital structurc of tlic Ra~l\\ays.
projcctcd plan S I X for thc 8th aqd 9th Ftvc Ycar Plans and
decasualisation of casual labour sincc 1990: and
iii)

.Toswat solutions (othcr than rctrcnchcnt) for 'ovcrstafing'

in Railways.

:,ti

in :(.

.-lS.~*.~W~~*ltI

I ' i w sC J ~ I / W
.\ fjtiistcv I ! /

hilwci,vs

29.I6
The lnstitutc of Applicd Manpowx Rcxarch cspresscd
difliculties in c q i n g out thc study strictly within thc tcrms of rcfcrcncc on
account of limircd timc and non-availability of adcquatc inputs from thc Railways.
Thcy instcad uscd thc timc-trend method for projeting thc trafic and tnanpwcr
requircinen(s of railways for h c ycat 2000 on thc basis of data collcctcd by them.
IAMR thus assessed that tbe railways will need 14.4 lakh staff in the year
2000 and suggested that there is a surplus manpower of 2.6 lakh in Railways.
29.I7

.The Ministry of Rail\va>s has strongly rcjcctcd h c hidings of'thc

IAMR. Tlic Minism maintains that

Therc is somc misconception about thc RITES rcport and a h c r

related studies.
Thc assessment of manpowr for Railways in 2000 AD madc b\*
lAMR is beyond the scope of the tcrms of rcfcrcncc of thc study
commissioned by thc 5th CPC.
What has been assessed by IAMR is the manpowcr requirenicnt
of the railways in 2000 AD as 14 4 lakh staff whereas actual
number of staff in 1993-94 has been taken as 17 lakhs. 11 does
not follow that the balance arc surplus in 1993-94. much lcss in
1995-96 whcd the rcporl has bcen prescntcd and by which ttmc
the staff strength had comc down to 16 02 lakhs
There are serious flaws in the methodology adoptcd by IAMR.
The Institute has relied on time-Trcnd method for arriving at
projected,&afic and projected manpower for the ycar 2000. The
traffic output has uxmscd, together \Vith reduction in manpowr
in thc past years. The projections baed on statistics pertaining to
these years arc not validsincc thc undcrlying assumption is that
increased output with continuous reduction in manpowcr can go
on indclinitcly. M m v e r , thc projcctions of traflic to bc handlcd
by the Railways in futurc cannot bc q k c d at by. a siinplc
regrcssion analysis as donc by thc Institutc.

266 :

sincc thc pattcnis of working. h i i d o l output. iiaturc of'a\ ailablc

infrastructurc. ctc . iary froiii rail\\ay to raihay aiid thcsc

important factors havc not bcci)

approach

g\ui

wcightagc

811

thcir

Thc Mmtstty of Railways has also pointcd out spccilic niistakcs

in dcpartmcnt-wsc statistics on stan' rclicd upon b$ thc IAMR in making its
anahsis and projcctions
Thc Ministty of Railways has maintained that the task of
foricasting thc future n u m b of staff mqutrcd for thc railway4 is cxtrcmcly
diffiult and complcx and has pointcd out following fwlhcr facts for our pcnrsal 1)

Railways haw introduced 52 I ncw passcngcr trains sincc 1990.

ii)

Rcvcnuc-eaming frcight loading has gonc up from 3 I9 million

tonm in 1m-91to 391 million tonnes in 1995-96. In t a m s of
Nct Tonne Kilo Mctrcs of trafic this incrcasc is from 242.78
billions to 275.2 billions during thc same period

Our views

iii)

Expansion of rail network comprising Traffic Facilitics.

Doubling, Gaugc Convcrsion, construction of ncw line. ctc.,
involving an outlay of Rs.6,364qorcs in the last five years.

iv)

Despite such expansion of services Railways are continuously

reducing establishment to the extent of about 2% every year.

\f)

Reduction of staff from 1990-91 to 1095-96 is 0 142 million

(7 97%) Had hc trafic output per staff remained at the same
levcl as in 1990-91. thc railnays would haw rcquircd I 972
million staffto handle the traffic during 1995-96 Thus cffcctivc
rcduction bccausc of increasc in productivity of staff works out
to 18 6% ovcr 1990-91

29.18
The protestations of the Railway Administration
notwithstanding, we gather that there is virtual consensus among railway
managers regarding overstaffing in railways. Thc arcas of rcdundant
manpower rn also \\.ell idcntificd as noted in Railway Fare aiid Frcight Coinmittce
Report of I993 -

"Most of the Stcam shcds have hccri closcd: sc\-cral?wds h3vc

bccn closcd: lrack niaintcnancc has bccn nicshaniscd 011 s c \ ~ r a l sections:
workshops h a w bccn modcmiscd; a numbcr of goods sheds 1m.c bccomc
rcdundant; sonic of h c old train csaniuiation dcpots arc not rcquircd w t h induction
of n m airbrakc stock; accounts work has bccn computcriscd. and t!.piiig \vork has
bccn drastically diniinishcd with thc induction of photocopicrs."
29.19
Thc World Balk rcport of' 199s or1 Indian t r n s p n sector rct'crrcd
by us above prcscribcs convcntional down-sizing and disinvcstnicnt Tor Indian
Railways. Tlic rcport also points out that 'rail rcforin is \vcll advanccd in othcr
reforming cconomics aiid thc cspcricncc indicates that this is B diflicult arca of
crdjustn!ciit li)I pt)IItiCIiIIiS. i;id h b u r and mmagctnciit ' T'hc rcport su!!,gcsls rail
207

rctiumiiig cconomics arid tIic cspcrictlcc I~idlciltcsIhrtt this IS ii dllticitlt aleil of

adjustiiiciit for politicians. rail labour a i d iiiaiiagcnicnt ' '1'l1c r c p ~ suggcsls
l
rill1
rcfornis through 'uii- bundling' of disparate scrvicc and cqiiipmcnt protidcrs into
c c h u i l fc~ti!;sCXt corporate catitrfi - public. ;tn!t/or Imvnlb We call IIliIkc ot11I'roni
t hc rcsponsc of Kailwa!. Administration 011 this issuc.. convcycd to us duriiig
official cvidcncc. that railwa!. maiiagaiicnt docs no1 consider corporalisat IOII ;IS
fcasiblc or dcsirablc but Ihcn:is B growing atvarciicss 01' thc ticcd lor rcl'oriiis. Thc
vicws ofthc railway managcmcnt arc dictatcd by thc harsh rcality of' Indian
Railways still &ing a public utility scrvicc providing crucial infrastructurc for thc
balornccd economic growth of thc country whcrc rail farc and frcight ratcs arc
detcnnincd n i m by socioummic and political considcrations ralhcr than by tlic
forccs of dcmandandsupply.
Thc Ministry of Railways has significantly con\.cycd to us that
t41qhavc !.ct w scc esucccss arrd viability of Konkan Railway Corporation Tlic
Ministp has noted tbc progrcss achicvcd in dcvclopcd countrics whcrc thc
govemmcnt ottncd railways haw tricdxorporatisation and privatisation of rail
nclwork \t ith following advantagcs claimcd by thcm:Bcttcr use of railway iisscts.
Grcatcr rcsponsivcncss to thc custoniers.
Highcr quality of sc,nicc.
Grcatcr emphasis on profitability.
29.20
'The Ministry, rcalising thc iniportancc of making compctitivc
changes for ~maiturgfinancially viablc, has conceded the need for divesting the
Indian Railways of manufacturing activities in thc contcst of non-progrcssion
of teclmlogy and quality. However, it considers the wholesale corporatisation
of Railways as non-implementable for thc follo\ving reasons:-

1)

Indian Railways is thc most visiblc symbol of Ccntral

Government and pcoplcs' cspcctations from thc Railwa?.s arc
enormous. Expansion of Lhc rail network in any area has comc to
'symbolisc dcvclopment in public pcrccption.

i 1)

Whilc private ownership may do bctter in ternis of productivc

efficiency: this is out-weighed by losscs of allocativc cflicicncy
and othcr'non-commcrcial !ct critical socio-cconomic outputs.
Indian Railways is in many ways a binding forcc and symbol of
national integration which would be lost if it is corporatised.

ill)

Thc capital atchargc of 1R bclongs to thc public and any attciiipt

at complete commercialisation will not bc supportcd by the

public.
i v)

There IS no ernptricai cvidcncc to provc that corporatisation

pcr-sc \\ill improvc thc overall health of thc systcm. cspcciall!. 111
a sct up wherc h c managcnicnt and staff rcmarn niorc or lcss lhc
same cvcn aftcr corporatisation

We wuld likc to cxprcss our Yicw on thc various aspccts of thc

problem as under:29.2 1

to wlwtliertlie core functions of the railways

can be corporatised. there is no doubt that

all the manufacturing. repair, overhaul and
maintenance activities are fully ripe for
being hived off into separate corporate
entities.

(.'onclusiot,

b)

Privatisation;

Certain initiatives almady taken like the

contracting out of big projects on gauge
conversion.
doublings
etc.,
under
Build-Own-LeadTransfer Scheme, Own
Your Wagon Scheme and privatisation of all
future catering services, etc., must go
f o k a r d apace. The Raihvays must Jaok out
for other avenues where the private sector
can be involved in its work. Some obvious
areas are sanitation, maintenanre of
buildings and equipment, computer-related
work, passenger and goods booking etc.

c)

Optimizirtion:

Estimates of surplus staff in the 2000 A.D.

may vary from 2 lakh to 2.6 lakh. The fact
remains that railways heve too much
manpower. Without quibbling on the exact
number of surplus emRloyees, the railways
must abolish a l l vacant posts, not create any
additional jobs and reduce manpower
annually by 2 to 3% for the next 10 years.

d)

Redeployment:

There should be plans for retraining and

redeployment of some staff against new
services and projects, so that there i s as little
retrenchment 'as possible. A 3% cut i s
possible even with normal attrition due to
retirement, death and resignation.

29.22
In conclusion, \vc \\auld cndorsc the following exhortation of thc
Railway Farc and Frcight Committcc ( 1993) for the railway managcmcnt -

"Financial viability and futurc dcvclopmcnt of Indian Railways

will dcpcnd on how much t h e can rcducc thcir cspenscs and unit costs in thc
coming years. Wc fccl that at lcast threc pcrccnt of cost cscalition should bc
absorbed by IR cvcry ycar to bc a b k to kccp thc tariffs low k d kocp thc costs
down. To raise the productivity of scnicc w r k . it cannot bc done by govcmmcntal
or political action. It is the task of managers and csccutives in thc rail\va\.
organisation. It is thc first social rcsponsibility of managcmcnt in thc knowlcdgc
socicty"

30
o-

'

7&P ds-

GENERAL INTRODUCTION
tlismn

'Vetwork

30.1

Postal scniccs arc among thc oldcst known community scrviccs in

thc country. Systcmatic organisaiion of thc Postal scmiccs in thc prcscnt form
began with the creation of the Depattmcnt in 1854. With the proiiiulgation of thc
IndianPost ofiice Act, 1898, all privatc transmission of lcttcr mails was integratcd
with Ihc cerltraliscd Govcrnmcnt postal systcm. The Act continucs on thc statutc
book..' The Postal scrviccs are based on thc four pillars of univcrsality. statutory
protkction, parliamentaq regulation of ratcs and rcasonablc liability for mail or
remittance. T3c services offered by
vast postal rtctwork play a crucial
infrastructural rule in thc socio-economicdcvelopmcnt of thc count?.
30:2

India has the largest network of Post Offices in thc \Corld - I ,52,786 Post

Offices (339% of them in rural areas) - handling over 13,339 million postal articles
annually. These P&t Offices arc organiscd into I9 Postal circlcs comprising one
or morc Statedunion Temtorics, structured into 435 Postal Divisions hcaded by
a'Divisional Superintcndent of Post Ofices. Post Offices are classified as Head
P d Offices (834), Sub-Post Offices (24,8 18) and Extra-Departmental Sub- and
Branch Post Offices (1,26,385). Of thcsc 1,45,966 Post Offices (96%) perform
h c deliveq function, and 170.providenight postal facilities. On an avcragc. cach
Post Ofice serves a population of 5,553 within an area of 21.60 sq. km..To
operationalise such a vast network, the Postal Services are manned by 5,96,062
pcrsonnel, over 3 lakh of them being estra-departInental. Furthcr, therc arc 573
Sorting Officcs and 438 Rccord Offces, under Railway Mail Scrvicc Divisions
handling sorting, routing and transmission of postal articles.
.

EMERGINGSCENARIO

30 3 Earlicr, the Postal scrviccs enjoyed a monopoly status, thc traditional VICW
of chc m i c e bemg that it is a social responsibility As a Govcmmcnt dcpartmcnt,
chc postal savices enjoy a reputabon of a public utility scnvice with a Icgal sanction
backmg it. in as much as thc proof of dclivcry of any postal articlc furnishcd by the
Post Oficc is accepted\:s a legal document in any court of law Thcrc IS also a

270

NEED FOR RESTRUCTURING POSTAL SERVICES

Ohjrclltr

304
Thc Objcctivc of thc Dcpartmcnt of Posts is to cnsurc an cfiicicnt,
cconamical, spccdy and rcliablc postal scrvice in the countty. In rcndcring this
scrvicc thc Dcpartmcnt's mission is to reach both quantitativc and qualitative
cscellcncc aimed at total ukcr satisfaction.

.The Third and Fourlh CPCs both attcmptcd to highlight thc nccd for
-cficicncyand cfldveness h the Postal Scrviccs. Thc Fourth CPC rccOmmcndOd
that the Postal services and ~ C ~ S O M C I management may, be rcvimd by a
Committcc so that it is possiblc to achicvc postal excellcnce and give satisfaction
to thosc employed in the vast infra-structure of the Department.

f ' r r ~ ~ ; u ~ ~ ~ t . ' n v30.5

i*m~n~issio,~~~

I ~ - ~ ~ ~ r ~ (30.6
' ~ m An
; ~ ~
c ~
expert

Committee on "Quest for Postal Exccllencc" observed in

1988-89 that many of the ncww organisatiom had responded to and accepted

modern technology and methods of work, but the postal service because of its
colonial origin had continued without much change in its early work pracdccs. The
Committee noted that the postal servicc failed to (a) attune itself to the changing
needs of the various segments of postal users; (b) increase the productivity of
postal employees in the context of increasing man-pow costs and availability of
nc\v technology; and (c) respond to thc low morale of thc postal employees who do
routine manual jobs which offer no chancc of upgradation of their skills and
scl f-devclopmcnt.
7 Since the timc of thc Postal Exccllcncc Conimittce, thcrc has bccn a
planned cffort to modemisc the postal systcm. Bcgimiing,withS p a Post on 15th
August, '1986,a number of new scrvices and strategies havc come into operation.
Introduction of automated mail processing, computerisation of countcr and other
opcrations, including Hybrid Mail and Satellite Monq Ordcrs, value added
mites;dedtcated transmission channels for Business, Metro and Rajdhmi Mails.
ergonomics and other technology inductions arc outstanding instanccs of thc efforts
to meet thc modcm markct chdlcngcs.

- ~ L * ~ h i ~ ' u ~ j v t ?30
s

S ~ K W ~ ~ ~30.8
J S ~On
~ the servicc front, aspirations of the users w
ith rcspect to postal services
"M~rove'"e'J'

i
d to be met without dislodging thc social objectivc. Agc-old practices rcquirc
a frcsh look towirds modcmisation and cficient postal scrviccs. There is.
d i m i b l e anxiety to mcct LIE cnicrging markct challciiges in the facc of a growing
pcrception that the postal services hnvc not bccn ablc to ma3 thc.cver increasing
demands of postal trafic. Tlicrc is substantial cvidencc to suggest that subsi&

27 I

Rmgnising thc nccd for c1iangc.w cngagcd thc Faculty of Managcniciit

Studics. Univcrsity of Dclhi. to studi thc arcas of rcstructuring in tlic postal
scrviccs. with a vicw to idcntifying its strcngths and \vcakncsscs in tlic face of
changing socio-ccononiic sccnario and cmcrging pattern of dcniands for poslal
scmiccs, aid suggesting allcmativcs to thc csistiiig structurc and functions and the
changes ncccssar) for providing accuratc, speed!,. cost cflicicnt and
customcr-fricndly postal senriccs. including nicasurcs to optimisc thc manpowr
dcploycd in thc Postal scrviccs.
?O.O

/~i.~'o,N,J1r.ndr';~J~.\
30. I0
(I!

rb.

.%JtcfI'

Thc Consultancy Study obscncd that though thc postal network in India
is onc of thc largcst in thc world with a pcnclration that is ividc and dccp. its
capacity as a nctwork to copc with thc cmcrging scnicc dcmands i n tcnns of
magnitudc, rmgc and quality is currpntly undcr doubt. Rising costs of opcrations
and cscalatingnccd for budgetary suGsidy arc ncither ncccssan nor dcsirablc. The
Dcparlmcrtt is showing cvidcncc of swain and overstretch. It is currcntly facing a
crisis of mismatch of two major kinds - first, its currcnt compctcncc and attitudc
on Lhc onc hand, and the niagnitudc of growing dcmands on thc othcr; and sccond.
its ovcnvhclming prcoccupation with thc familiar scniccs at low cost and falling
Ic\*clsof eflicicncy on thc onc hand. and a fast growing. highly dctnanding and
considcrably lucrativc cmcrging markct in thc urban busincss sector on thc othcr.
It further notcs that dcspitc the cfforts at modernisation and introduction of
strategic changcs in:;a; reccnt pat, thcrc is still substantial scopc for optiniisation.

30.11 Thc study has niadc scvcral suggestions on rcstructuring thc postal
services. These have taken into account the need for eliminating obsolctc and
incflicicnt units.. mating n c w r ones for morc cMicicnt and clktivc functioning
and acqlliriiig ncw capability to scntc cmerging nccds, as also rcorganising thc
organisation's nianpowr structurc. We haw kcpt in vicw thc suggcstions niadc b\*
the Consultanq. Study in making our rccommcndations.

I
/'I?(

14 5 l#1

I'cr w i t i d

RECOMMENDATIONS FOR STRATEGIC CHANGE

30 12 As our major focus IS on pcrsonncl. \vc would Iikc to takc up

pcrsotincl-rclatd issues first The attempt hcrc should bc to rccruit thc right kind
of pcrsons to Lh.3 vmouus jobs lbc) iiccd to bc youngcr In agc. more cducatcd and
a largcr prantitgc of thein should bc sclcctcd on mcrit rathcr than mcrc seniority
272

.lo. I3 \-C'C IIOIC t k i t IIO ciircct tccrtiitt\iciIt takcs 1jliic.C iit ;\ti\ OIIIIL' opcrat:\c 0 1
liiglicr Icvcls hcttvccii I'ost;iI/Sortin_c Assistants ( Ks 97C-.1000) atid tlic Itdtiiti
l'istal Scnicc (iroiip A (Ks.2200-4000).thouglr sci~cralfunciioiial Ic\.cls csist
'I'lw: cqxmtrvc cddn:of I'c~tal/Sbi-tiii_cAssistants providcs for dircct rccruitni*nt 10
thc cstcnt of 50%. \\hilt Postinastcrs. Inspcctors and Postal Supc'ititci~d~~i~s
itrc
nxniitcd aitircly dircuigh dqiarliiicntal channels. 'IXc Third CPC. \vhiIc obscrwng
dic I& for grcatcr clr?cicnc!* in tlic PRT scrviccs. rccommcndcd rcduction of llic
prqiimtion quota from SO to 2 5 5 at tlic clcrical Icvcl atid introduction of dircct
rccruitnicnt to thc tunc of 25'X at thc Icvcl of Inspcctors, subjcct to iniurovaiicnt
of pay scalcs for tlw lattcr. 'IIc Fourth CPC also obscrvcd a siniila: n
d and
mtimlcldcd itti clcnicnt of dircct rccruibiiciit both at tlic Icvcl of Inspcctor as \vcll
as at Postal Supaintctxicnc's Icvcl. to iiicct opcrational clrtcicncy and flcsibility i n
dcploynicnt.
30. I4 The Cotisultmcy study has suggcstcd that ~ t changcs
h
in uscrs' dcniatid
pcttcms and tlic Dcpartnictit's ongoing cllbrts at modcrnisttioii and
rc-organisation. thcrc is an iirgcnt iiccd to bring down thc agc profilc of thc
workforcc. and raisc llic c n t n Icvcl cducritional standards. talcnt and innovative
capacity.. It has also suggcstcd scgrcgatioti of cntn via thc Extra Dcpartmcntal
Agctits routc. Sincc almost XO'%I of thc cniployccs risc to highcr Icvcls through
Intcrnal mcchanisnis, this rcsults in a larger part of thc organisation rcflccting an
agc prolilc dcvoid of frcsh. young and conipctitivc talcnt from thc opcn niarkct.

30 15. We, accordingly, recommend that direct recruitment at the entry

kvel below that of Postman may be kept at 100% with a minimum entry level
qualification o f 8th Standard. Postmen/Mail Guards may. be recruited
directly from the open market to the extent of 25O/u with at least matriculation
qualifications, the remaining 75% being recruited through the existing
mechanisms As thc Dcprtmicnt has cmbarkcd on a long tcrm modcmisation and
computerisation progrmmc, direct recruitment at the level of PostaVSorting
Assistants may be retained at SO%, as at present, with the ectry level
qualifications being raised to 10+2 standard with knowledge o f typing and
computers. In the interest of procuring the best possible talent from the open
market, the induction should be through a competitive examination. Further,
one more level o f such recruitment being absolutely essential, direct
recruitment to the extent of 33-1/3% may be introduced at the level o f
Inspectors with minimum entry level qualifications of Graduation. This
recruitment can be made through thc Inspectors' Grade Examination
conducted by the Staff Selection Commission annually. The remaining
66-2/3% vacancies can be filled through tbe existing mecbanisms.
-30.I6 Thcrc is a dcmrmd for upgradation and nicrgcr of lnspcctors in thc Postal
and RMS Branchcs intcr-se as also mcrgcr at thc highcr Icvcl of Assistah
Sugcrintcndcnts in both branchcs. Whilc thc Consultancy study has suggcstcd
mcrgcr of these two strcanis with that of Supcnisors. it has also pointcd out that

due to non-availability of tinic-bound promotions to inspcctors and placcnicnt

bclow thosc the!. supcnisc thcrc has bccri an crosion of supcn~sopauthorit!.
Supcrvisov function in thc postal scrviccs iiccds to bc improvcd. Inspectors
constitirtcthc key pcrsonncl in this rcspcct. Thc ncglcct of this catcgon. lias'bccti
costly. Thc Dcpartmcnt has suggcstcd that lnspcctors n& to bc upgradcd to
rcstoi'c thc conunaiid structurc and that.Supcnisors king cnicial for continuity in
opcriitivc iwrk. should be kccpt as II distinct strcclm Mcrgcr of the Irispccto~i~r!

cidra shcdd k- ~ f l i k ~(XY\\LYI~

td
t l l<JstiIl
~
~ I I KMS
I ~
Ik;l1ichcs. IIIClhlrd(I)(.
did not iavour nicrgcr as the I\\O sidcs c a r d diftcrcnt naturc 0 1 dutics Tlic
I:ourth CIC considcrcd thc qllcstion of nicrging 1101 only tlic Iiislxxt1)rs hut also
Postal it Sorting Assistants iIs \vcll. It fclt that ii;stc;rd of n picrc-mcal n~id
fra&mtcdapproach.cadrc rcstructuring should bc comlirchcnsivc to Iikc carc ol
all rclmmt aspats and safcguard carccr intcrcsts. Howcvcr. II did not rcconiiiicrid
any.nlagr ofthc tuu branchcs. Wc obscntc that tlic lbllo\ving liispcctorial posts
csist in thc two branches:-

PAY-SCALES

POSTAL BRANCH

RMS BRANCH

Rs.1640-2900
Rs.1400-2300

ASPOs - 1,362
IPOS - 1,905

A-SRMS - 345
IRMs - 173

I .707
2.078

3,267

518

3.785

TOTAL.

TOTAL

30.17 liispcctors in both branchcs form fccdcr grades to thc posts of Assistant
Superintendents who, though functionally dtffcrcnt. mcrgc at that Icvcl. oril!. to
form a f d a gradc to the Postal Supcnntcndcnt Scnicc Inspcctors form thc first
csecutr~crung for postal and mail operations, for f d m g thc first rung of Junior
Managers \\hchIScommon to the two Bt-mchcs. We f d that interchangeability
and experience in both is essential to be effective as Junior Managers, and
accordingly recommend that Inspectors of Postal and R M S branches be
merged into a single cadre. Consequently, the promotion level of Assistant
Superintendents in the two branches will also be merged

30. I8 Time-bound pmmdions provide adcquatc carccr growth opportunitics for

the opcrativc personnel upto HSG-11, and thcreaficr, vacancy bascd promotions to
HSG-I and a 6% csamination channel in the Postal Supcrintcndcnt Scnicc.
Bccausc of highcr qualifications and skill input rcquircd at cntry. that we havc
suggcstd above, NC also m g n i s e thc nccd to place such cntrants at a highcr cntry
Icvcl pay-scale. We have kept this in view whilc giving our rccomnicndations on
thc revision of pay-scales,
. . in thc rclcvant chaptcrs.

nc

30.19.
Postal Federations havc also dmandai introduction of a fast track for
the meritorious and qualified pcrsonncl .in the highcr echelons of thc middle lcvcl

opcrativc structurc. Thc Dcpartmcnt also fcels that such a mcchanism will bc
csucmcly uscful in thc mattcr of flcsibilit?to mcct compctitivc markct dcmands.
as also man the critical arcas with thc b a t availablcralcnt. Wc arc of thc opinion
that such a mcasurc will go a long way in rccognising cxccptional talcnt and
improving cficicncy in thc pcrformancc of thc postal scrviccs. Gcncrally, thc
Dcpartment has a systcm of examination for internal rccruitmcnt to thc gradc of
PostaYSortingAssistants and Postal Supcrintcndcnt. 50% of thc vacancics in thc
fonncr padc arc filled by dircct rccruitmcnt. 75% of thc vacancics in thc gradc of
Supcrintcndcnt~ I Cfillcd by promotion and 6% through dcpartmenial examination
o f s u p c h ~ s o yoperativc staff. Keeping .in view the above position, we
accordingly recommend. that the vacancies under the Departmental
examination system for the levels of PostaVSorting Assistants and Postal
274

Superintendentshc ix~servedto the extent of 50% and 19%. rcslw.ctivcly. for

such a fast track.

.Wiw

#II'~#JJ.\

3).3) Shortqys of aianlmvcr have ol'lcn been citcd as tlic siiiglc largcst factor
alKxti.Iig tllc clriicnq oftllc Postal stmias. 'Ihc tMaratJic 'fimc Tcst is a standard
> ardsticli dcvclopcd hy tlic lkpnrliiiait of Posts siticc 195 I .IC asscss manpow:
rcquircmcnts in the post and mail olXccs Posts arc "crcatcd" bascd on tiianlliours
mcalod by thc tcst. Thc norms arc also citcd to justify manpowcr shortecs. 'Ihc
con'sultincy study has suggcstcd that thc norms and productivity mcasurcmcnls
should bc mahc upto-datc to.dctcnninc mcaningful stafing pattcrns and cffictcnt
cvaluation of pcrformdncc. Thc study has furthcr point4 out that dcspitc thc
c'sistcnccof norms n6'action is initiatcd at tcsting actual pcrfonna.ncc. csccpt iwthc
KMS through pcriodic tcsts for iticrcmcnt and cflicicncy bar. in thc first tcn !cars
of a solids scrvicc. Manpowcr shortagcs arc. thus, citcd as a blankct thrust arca
Tor improving cflicicncy. Thc Dcpartmcnt nccds to follow a morc rational
approach bascd on an objcctivc asscssmcnt of nccd, and also find nc\vcr tvays.
through modcrnisation, computcrisation and rcorganisation for improving
cficicncy. Thc norms nccd to bc updatcd and rcsct. Thc old norms bascd on thc
Mmthc Timc Tcst havc lost their rclcvancc, and arc now only hclping thc staff to
obtain overtime paymcnt cvcn when it is not justificd.. TCc Dcpartmcnt's vic\v IS
that modcmisation- and mcchanisatjon cfforts haw b a n initiatcd to nicct
rcquircmcnts of cficicncy. Thcre is nccd for changc in work culturc. upgrading
skills and Iadcrship at supcnisory and managemcnt Icvcls, and making ficld units
sclf-suflicicnt. Wc find that with-the cmcrgcncc of automation, computcrisation
and modeinisation, not'only ham the norms become outdatcd, but cvcn for csisting
mcthodologicsno new norms havc bccn.dcvclopcd. Thc inhcrcnt dysfunctionality
is manifcst 6 thc fakt that they arc based on "timc" rather than "piccc". 'Timc takcn
for a transaction is d i f f m t for differenl persons in a given technology, but it could
v a v for the same sd of persons using diffcrcnt tcchnologies. Conscqucntly. piccc
rates havc to be conditional on thc spocifications of tcchnolo~.The knns also
do not provide'for constant improvement over a period of time as the skill of thc
\vorkcr improves with experience. There 1s an urgent need to redefinc the basis of
the norms as also the iKwms thcmselvcs. To begin with,theMarathe Time Tests
should be shelved wherever newer methodologies of transacting business
have been evolved. Piece-based manpower requirements may be evolved by
engaging independent consultancy, if necessary. Tlic revision of norms milst
incorporate a factor for upgraded $dls by cxpcricncc as wcll as training in nciv
'tcchnologies. These norms can, thus, be used for staffing to mcct traffic
rcquiruncnts and \;orking out inccntivcs for higher efficiency. The'higher norms
should be used at successive-stagesbf assured-career progression.

.S<WII)?s
~c
'n7Cc'.~

30.2 1
A ~ k thc
g operational arcas of the postal scrviccf, sorting has bccn
a major conccrn with thc managcmcnt as \\.ell as staff. Whilc thc Fcdcratioiis'of
Postal Unions have dcniandcd .rc-opcning of Sorting Sections, the Consultancy
Study has suggcstcd scparating thc sorting functions from othcr postal functions
by. rclocating them at morc suitablc suburban locations in ordcr to pool thc
rcquircmcnts and for spccdicr sorting through mechaniscd mcjlns. It will also bc
conducive to the mcrgcncc of a ncw physical layout and ofice cnvironmcnt so as
to cnsurc an optimal rcstructuring. Both suggcstions in fact tun in diamctrically
oppositc dircctions. Whtlc thc formcr suggests mobilc sorting & running trains,
b e latter specifically dcsircs to scparatc thc sorting function from thc Post Ofliccs
ui fvour of siiburbw (but stn:ionuy) rclocalion. Till 1084, thc process of soning.

roiitaig aid tJiMistiiIsst<wt\\ils ills0 ~ W 0C1 1 I U I ~ I I I I Iriliils

I~
tlirotigli sets 01' tr;i\vlliiig
mail pcrsonncl known as "Sorttiig Scctions" On a rcorgaiiisa1ion o f tlic sorting
pttcrti. tbc I)cpar[miciil abolislicd sorting \cork OM riinnirig traitis: coticc1itritIltig
it at stationaq locations iii tlic csisting "Mail Oiliccs". 'I'hc DLlpartiiictil ncitlicr
favours rcopcniiig of sorting.scctions, as the sorting pattcrns havc iuidcrgwic
substantial changcs, nor separation of sorting function fiotii thc Post Oficcs. as
both mcasurcs would lcad not only to furthcr delays in iiiail transmission and
dcli\.cry, but dso rcvm a conscious dccision takcn for improving cfficicncy W c
fcd Uiat &lay in mail t r d s s i o n and dclivcn cannot bc assigricd to tlrc abolition
of crstwhilc sorting'scctions. Dclays.takcplacc duc to missorting. misrouting or
misscnding, which an:all mtifiablc by bcttcr supervision rkhcr than by sorting on
running trains. Routing and transmission is still donc on running trains by handling
only cldscd bags through "Transit Scctions". 'Morcovcr. running trains arc
unidircctional and mails arc scnt cntircly prc-sortcd for dcstination mail offices.
instcad of thc carlicr-systcm of loading unsort~dmails in "Sorting Scctions"
Rcopcqini Sorting Scctioiis will also involvc substantial additiotial manpoiccr.
We, therefore, do not recommend' such a measure. On thc qucstion of
rclmting thc sorting functioi. wc obscrvc that sorting and transmission is alrcady
spccialiscd and conccntratcd in RMS for dctailcd sorting purposck Post Ofliccs
arc cngagcd only in prcliminary scgrcgation of mails for facilitating the dctailcd
soriing i t RMS.In h c proceSs, about 40% of postal articlcs gct finally sortcd out
for dclivcry dcstinations without intcncntion of RMS. .Lack of mcchanisation is
no1 duc to nonanccnmtion of arliclcs. but niorc bccausc of non-standard sizcs of
postal articlcs and inipmpcr pin-coding. Shilling sorting work from Post Ofliccs
to suburban spccidiscd Mail Oficcs will introducc an clcnicnt of in-built dcla!. in
transmission liom collection ccntrcs to suburban locations and back. Sorting and
trmsrr\lssion has necesssuily to bc locatcd closcr to modcs of transport. mainly thc
Raihvays and Airlincs for spced. We do not agree to the suggestion for
relocating the sorting function.
.

~ 30.22
~ ~ ~ Demands
~ ~ ~ and
n r suggestions
~ ~ ~ ~ havc
~ . also
~
ban

niadc in rcspcct of thc Agcncy

functions of Savings Bank and Postal Lifc Insurancc, and for Lhc nicrgcr of thc
National Savings Organisation with thc Post OfIice Savings Bank. Thc Postal
Fedcrotions-havedcmandcd scparatc cadrcs for thcsc ficlds of acti\'ity. with pay.
allo\vanccs and scrvicc conditions coniparablc to banks and Public Sector Units.
on h c ground that thcsc arc spccialiscd functions and thc work is not dissimilar to
that of such organisado&. Postal Assi,stantsman th: Savings Bank and PLI .setup
at the operative cnd. Thc formcr arc postcd on thc basis of an aptitudc tcst for
Savings Bank and arc paid a spgial allowance of Rs.60/- pcr month if fully
cngagcd in .savings bank work. and Rs.301-per month if partly cngagcd. In thc
PLI, busincss is canvasscd through spccially cngagcd Dcvclopmcnt Oficcrs rroiii
among PostaVSortiqg Assistants with 5 ycars' sclvicc on a 5-ycar tcnurc. The
Department of Pasts has obsenrod that sdicicnt number of voluntccrs for aptitudc
tcst ~d posting in SB Branch arc not forthcoming and officials not qualifying thc
tcst arc postcd for SB work, thus rcndcring thcm incligiblc for thc allowancc.
Thcrc Is also a Savings Bank Control Organisation which carrics out concurrcnt
intcmal audit of thc SB transactions of thic Post Ofliccs. This is also maniicd by
Postal Assistants. l'hough thc Dcpartnicnt agrccs that work in thc SR Branch is
comparati\dy niorc coiiiplicatcd, skillcd and risk-pronc, it is riot in favour 01'
constitutinga scpawtc @drc,.b.uthas suggestcd grant oCallo\vancc to all opcrativc
mid supcrvisoc pcrsonncl 'doing SR work at highcr ratcs in thc cxisting
2 76

;iri i11ig~tiict11
1 0 aiiract

siillicicii~SIiiff Ncitlicr ~ O C SII I;l\.olir a st'l)iiriltc Ciitiit* 01'

1'1 ,I t11iiiipo\\cr WC iigrcc \\ it11 Ilic *;ic\\p<>ilitc\prcsscd I?\. t h Ikparttiicnl
~
111 iIb
niucli as LIE stall'iii tlicsc tno units arc conccriicd We accordingly recommend
grant of higher allowance to attracr Postal Assistants for the aptitude test, a s
I substantial number of these personnel would also be engaged in work other
than Savings Bank while working at Post Office counters. The SB incentive
may be raised to Hs.150/-per month for staff fully engaged in SB work; and
Rs.YS/- per month for those partly engaged. Staff in thc Savings Banh Coiitrol
Organisation w i l l not bc cltgtblc foi this allowaricc as t h q arc cngagcd onl! iii

concurrent intcnial audit. without actually pcrfonntng the savings bank fliiictioii
'rhc csisting arrangcnichs for Postal Li fc lnsurancc arc sufficicat and no changc
is c;illcd for
3 0 : 3 As rcgards nicrgx ofNationc?lSavings Organisation with thc Post Ollicc
Savings Bank. wc notc hat Ihc t\vo fuictions arc cntircly diffcrcnt. Whilc thc Post
Ofiicc performs the task of Savings Bank only as an agciic! function for 11ic
Minis@ of Financc, thc National Savings Orgaiiisation is a subordinatc ofiicc 01'
thc Ministry o\wsccing the rnobilisation of small savings and dctdoping
programmes and schcmcs for tlic purposc. Thc ccntral rolc of the Post OFTcc in
the cconbmy is that of a carricr and distributor of mails. Thc agcncy function IS
cntrustcd to it only bccausc of its estcnsivc network and rcach. W e do not feel it
desirable to saddle the Post Office with resource mobitisation functions in
addition to those it already handles.

Dcmands in various mcmoranda havc voiced concern o\w tlic

"loss-potential"of the Postal scniccs in thc csisting pricc and traffic ii~anagcmcnt
rcgiinc, leaving virtually no room for manouvcrability to tap commcrcial potcntial.
Thc Consultancy study has rcconuncndcd \hat tlic postal scrviccs must havc niarkct
orientation and cost consciousncss in ordcr to sun'iw as an cfficicnt and rcspcctcd
scrvice agcncy. It has pointcd out that thc Dcpartment's finances arc o\.crstretciicd.
and thcrc is lack of clarity in the cotnnicrcial and social ob.jcctivcs of thc
Dcpanmcnt. Thcrc is an inhcrcnt mechanism in thc system to incur losscs in thc
namc of public senicc. Thcrc is a mismatch in thc Dcparcment's ovcnvhclming
preoccupation with thc familiar scnices at low cost and falling levels of cfficicnc!.
on the one hand and a fast growing h!ghly demanding and considerably lucrative
cmcrging. market in thc urban business sector on thc othcr. The .study has
suggested thc setting up of a permancnt Tariff Committee and a Stratcgic
Managemcnt Group to go into thcse twin'areas. The Dcpartment fccls that the
scnrices haw becn subsidized by keeping tariffs artificially low, and post officcs
opened with an in-built clcmcnt of "permissible limit of loss". The Department is
already siczcd of the problcm and has endcavourcd to bridge tho rcsourcc gap b\.
optimising productivity. Rccogntsing thc cxistcncc of commercial potcntid in thc
postal scn.iccs, w e arc convinccd by the argucmcnts put forth by tlic Consultants.
Thc usc of post cards bj. cnmpcting tdcvision channels to market thcmschcs for
largcr vicwcrship is a classic casc of dkcrsion of subsidy from social objcctivcs to
commcrcial usagc. Thc problcm rcquircs solution in tcrms of both costs as wcll as
tariffs. Sccrctary (Posts).during official cvidcncc. was of thc vicw that thc t ~ u
csisting posts of Assistant Dircctors Gcncral in thc Costing and Ratcs iiiiiis
manned by pcrsonnci of thc C:cntral Sccrctariat S c n i x wcrc sufficient for thc
purpose. Bcsidcs. thcrc \vas oiic post of Assistant Dircctor Gcncral (Statistical
'IJiiit) cncndrcd in tlic Ii:dian Statistical Scnicc, along with indcpcndcnt CSS and
statislical staff 111 cncl: 0 1 tlicsc. We suggest .that the Department slioiild
30.24

277

cxaniine the feasibility of cncrdering tlic posts of the Costing and Rrtcs tinits
in the Indian Cost Accountants Service and reorganise the threc hithrrto
separate units into a professionalised Costing Unit headed by a J A G Ofliccr.
responsibledircctly the Postal Services Board through the Senior Ikpu:y
Director General While them may be no need for a separate and pernianent
l a r i f f Committee, the Postal Board itself should perform this function
through greater autonomy for all areas of postal services catering to a
"mrrket". Market orientation should be directed at the free play of the
forces o f demand and supply and economic decisions based thereon. We
recommend a one-time high-powered Tariff Committee to go into areas of
business that the Postal B a r d can be fully vested with for the purposes o f
commerce-based tariff fixations Thc constitution of a Busincss Planning
. a suficicnt bcginning towards a Stratcgtc Managcniciit
Lhnxtomtc, in our V I ~ V IS

Group. which must comc lion1 within the Organisation

30.25 This brings us to thc question ofcornmcrcial potcntial of Postal scn4ccs.

Thc Consul&cy study has idcntificd ii vast commercial potential in thc ficld of
('rwpiirtiti.wtiiwr
Spccd Post, Postal Lifc lnsurancc and Busincss Mails and has suggcstcd
tiud t'riviiti.wtiim ,
corporatisation of thcso vcnturcs for tapping thc potcntial, It has also suggcstcd
privatisation of* ccrtain opcrations not only for rclicving (iovcmmcnt of aiiy
conimcrcial activity as fas as possiblc. but also improving cflicicncy and
productivity and reducing thc si7x and prcscnce of thc public sector for savings of
rcsourccs It has bccn ablc to'find only marginal cvidencc of privatisation in other
countrics. Thc stud!, suggcsts launching of a rctail privatc nctwork for salc of
st,mps and stationc~as the rate of growth of Post' Oficcs has dcclincd during thc
last fivc !cars and counter facilities arc now located at considcrablc distanccs.
particularly in ncy satellitc townships. It has also suggcstcd rcvival of privatc
booking of Rcgistcrcd and Spccd Post Miclcs through authoriscd agcnts for
rcducing countcr prcssurc and to providc cffcctivc cdgc in cflicicncy and
availability of Postal scnices. An innovativc mcasurc to augment delivcn.
cfficicncy has also b a n put forth. Thc study fccls that privatising all dclivcn..
csccpt Moncy Ordcrs, Registcrcd and insurcd articlcs. on commission basis has
substantial potential for bringing about cficicncy and cffcctiveness in dclivcry
work. The Secret-.
Dcpartnicnt of Posts. during oral hearing bcforc thc
Conlmissioq favourcd autonomy in ccrtain operational arcas. likc Spccd Post and
Philately. for generating rcvenuc through commercialisation. Hc did not, howvciw.
lavour coryoratisitig Postal Lifc lnsurancc and Savings Bank bccausc of legal arid
other complications. The Departmcnt of Posts providcs a social scnicc. Ccrtain
functions; likc stamp vendmg and convqancc of mails. had alrcady bccn in thc
privatc scctor to a p a t extent. He fclt that reliability was a prime considcration
in thcsc niattcrs. Privatisatlon could bc tricd out in sonic scniccs. Conipctition
in dcli\c& oftnails could bc introduccd. though it rcquircd amcndmciit of thc Post
Office Act, which postulated transmission and dclivcry as a inonopoly function 01'
thc Govcmncnt. A licencing proccdurc could bc introduccd, along with a
regulatory authority. Wc arc inclincd to acccpt .the suggcstions niadc. Speed Post
('o~tim.:d

t 'atetitid.

and Philately may be corporatised for greater autonomy and marketability.

Thc Dcpannicnt must, ho\vcvcr. lirst ctisurc availabilit\. of funds for capital
invcshcnt and tcrminal bcnefits to bc paid to Govcrniiicnt cmplo>ccson switching
ovcr to a Corporatc sct-up. Sale of stamps, stationery and postal orders niay
be considered for organising through a retail private network. Clearance of
letter boxes, conveyance of mails and delivery of articles not requiring proof

2 78

of delivery tilay also he considered for private participation, cxpcrimentally,

if necessary, tlirougli contractual arrangements. Ihc system of Licensed

Postal Agents, that existed upto the late 1980s niay be revived to augment
counter facilities with the long term objective of restricting sale of stamps and
stationery to the larger Post Offices which will stock them for distribution to
agents. Privatisation of delivery through sponsorship, Single-point delivery
o r private agencies may be considered on experimental basis in newer
delivery areas, where redeployment i s not possible, at least o f all mails for
which no account is kept during the course of postal transmission. The
scheme, if successful, can be gradually introduced to other centres. Thcrc arc
othcr arcas where privatc contracts should bc adoptcd for optimising thc SILC of
Go\ crnment machincry i n thc Dcpartmcnt These are canteens, security,
cleanliness, and gardens. Isolated posts such as carpenters, electricians,
painters, book-binders, etc., handling services freely available i n the market
should atso be abolished in favour of such open market facilities A scparatc
cstablishmerit is not considcrcd ncccssan for thc purposc
O h * rm ( i . y . /
i ~ptitiriscirioti

:\ fiii/.\ hJlor
.St*n.icc

30.26 Thc qucstion of optimising tlic Sixc of Govcrnmcnt machincn has bccn
considcrcd in consultation with thc study group and thc Dcpartmcnt of Posts Thc
study group has suggcstcd that Mail Motor Scrvicc and Postal Civil and Elcctrical
Wings should .bc disbandcd. Thc formcr is a costly drain on thc Dcpartmcnts
rcsourccs, with difficultics in gctting qualificd pcrsonncl to run thc services. Thc
lattcr had no logic at thc stagc of its crcation and its idlc capacity is also a drain on
rcsoucccs, not justifying its codribution in tcrrns of architccturc, layout and quality
of construction. Thc Organisation also supports a Postal Machines Rcpiir
Organisation (PMRO) for scrvicing, rcpair and maintcnancc of postal rnachincs
and a printing press at Bhubancshwar planncd for catering to the form-printing
icquircmcnts of postal circles in that rcsion.
30.27 Thc Mail Motor Senicc (MMS) cmploys a total of 2847 pcrsoruicl, of
\\.horn 18 are automobilc cnginccrs at Group A ldvcl. The Unit convcys mails
bctween Post Oflices and Mail Offices within Imal limits of cities. Thc largcr
units include in-housc rcpair workshops. It has 1 I03 whicles spread ovcr 9 I citics,
largely metropolitan t o w s . Inter-city mail conveyance is already privatiscd to a
considerable extent. During oral cvidence, Secretary (Post) informed that MMS
is already frozen and IS being phased out. We note that MMS conveys about 8%
of thc total traffic in postal articlcs. It is cxpcctcd to providc reliable time-specific:
intra-city mail movcrnent, and also remain availablc in restrictcd, congested and
security-sensitivcarcas. We arc aware that even thc Policc Departments arc now
resorung to regular private conveyahceof personnel and goods. There is no reason
whj,. private convyancc of. mails cannot be organiscd on similar terms. We
accordingly recommend that the Mail Motor Service be disbanded in a
phased manner city-wise, within a period of five years.

imd ( . i d jjitig

30.28 The Postal Civil Wing looks aftcr Ihc construction, rcpair and rnaintenancc
nceds of real estatc of the Postal Dcpartmcnt, comprising ovcr 26,000 opcrativc
buildmgs and staffquarters. It also assists thc Dcparlmcnt in fair rcnt assessnicnt
of ovcr 24,500 rcntcd buildings all over thc country, including tliosc in thc rural
inkriors. The Wing is actually undcr thc administrativc control of thc Dcpanniciit
of Telecommunications. Thc Depannicnt of Posts only maintains a skclctal sct-up
of I72 t staff and ofliccrs for both Civil as ivcll as Elwtrical works. Thc existing
sctup swnls quite ixicqmtc trir thi. purpose allocatcd to thciil and ins!' be rctiiiilcd.
2 79

es
-

GENERAL INTRODUCIION
/iis:wicti

nacAR*owHd

Sue c#:/te
sen'Jc''3

31.1
Tchmunication (Tdccm) -scrviccscbnstitutc a basic nccd for
a modern dewloping socicty. With the bifufcation of the erstwhile Post and
Telegraph Dcpartment in 1985, and- the emergence of the Dqartment of
Telecommunication (DOT) therefrom, the tchxom scctor has witncssed rapid
organisationai a;ld techno1ogical innovations and changes. AL the ,timc of
bifurcation, thc services wcrc minimal, providing basic telephony, telegraph and
seqIces. In April, 1986, thc Mahanagar Tclcphone Nigam Ltd. (MTNL)was
- c i v ~ out
d as a PSU, for d~vc~opment,
opcration and management of telecom
sa\.ioesin Delhi ad Mumbai. The Departmentwas furthet r e s t ~ ~ t u r eind1989.
with the constitution of the Tclecai~Commission.
31.2

Thc personnel manning the Telecom services are organiscd into six
ktional ~TCBS,namely Telccom Engineering, T+com Trafic, Building Works.
Accounts and Finance, Telccom Factoncs and Witelms Planning and
Co-ordnation. In the first five arcas the Telecom is distributed group-wise as
follows:FUNCTIONS
GROUPS
TOTAL
A
B
C'
D
'I'elecomEnge and
Traffic

3 ,&7

14,500

2.58.870

88,077

3,65,114

Accwnls & Finance

509

3,303

2.810.

6.022

Ikilding Works

463

795

2,656

3,914

18.703

2,665540

93331 342,087

*T

_.---.

4,713'

I ,3
With an assot basc \*iil1lcd;it Ks 23.000 croic'b. l'~l~coi1i
scr\'iccs
providc T~lephoiic,Tclcs. Tclcgraph aiid lii1iichiscd \.;iluc-add~dscr\.iccs. 'l'licsc
scniccs covcr all thc 3OU citics and 4080 toivns in thc couiitfi~ias pcr I00 1 cciisiis
Ccllular Mobilc'smiccs, Radio Paging Scrviccs. Electronic Ma!]. Vidcotcs, Vidco
Confcrcncing. Voicc Mail, Morning Alarni scrvicc and othcr \.nluc-addcd scniccs
arc madc availablc through a fraiichisc systcm run by privatc opcrators. Smooth
functioning of all radio communication scrviccs and usages i n thc country is
cnsurcd by thc Wirlcss Planning iYr Co-ordination Wing as tlic national Radio
Rcgulatq Authority. Two training ccntrcs (Ghaziabad aiid Jabalpur). 6 Tclcconi
factories. Civil and Electrical Wings, a Qualit!. Assurancc Ciiclc. Tcchnical and
Dcvclopmcnt Circlc and an Accounts and F.inanccOrganisation providc captivc
support to thc tclccom opcrativc scrviccs.

Scri.rccs i ' r ~ ~ t i i h 3
l
/I, ;),I;,

7%1.

Tl*lecol,l

NZIMO d

?I 4

Thc Tclecom Commission is tlic apcs polic! making bod! I'or thc
Tclecolli scniccs Thc scrviccs arc organiscd into 19 tcrritorial Tclccom Circlcs.
aiid 4 Mctro Districts. cach hcadcd by a Chicf Gcncral Manager. lor installniion
and maintcnancc of asscts othcr than thc rcgional and inter-rcgronal long distrlncc
nct~vork Apart from thc terntonal circlcs, thcrc arc 4 scparatc fuiictional circlcs.
onc cach for installation and maintcnancc of long distancc nctnorh organiscd on
rcgronal basis Telephony is provrdcd through 20.356 tclcphonc cxchwgcs.
connccting 1 19 25 lakh Dircct Euchrlngc Lincs (DELs) 99 1 Dcpartnicntal
Tctcpph ofliccs. 44.054 coiiibincd Post and Tclcgaph officcs and I032 Tclccorn
Ccntrcs run tlic Tclcgraph scrvrccs. handling 01cr 009 lahhs inland tclcgranis
annually Tclcu seniccs arc providcd through a nctnork of 412 c\chnngcs
handling 47.16 1 working connections Fully autoniatic intcmational T c h scn iccs
arc availablc to all Tcles subscribcrs through Gatcx at Mumbai. Chcnnai and Kc\\
Deihi for 238 COWICS. The MTNL providcs basic tclcphonc scn'iccs in Dclhi and
Mumbai. as a public sector undertaking. though with its cntirc staff cornplcmcnt
bcing part of thc Departmcnt of Tclccommunicntions

1
Tdecorn PoliL;l~

EMERGING SCENARIO

3 1 ,5
Tclccommunication has traditionally bccn visua'iscd as a "natural
monopol!." bascd on voice-rclatcd iini\~crsalscnicc Thc Tclccomniunication
sector has witncsscd in rcccnt years rapid tcclinological innovations. both
qualitalivc and quantitative. The National Tclcconi Polic!, 01' 1994 cn\.isages
tclephoncs on dcrnand and univcrsal availabilit!. of thc scn'iccs co;.cring all villagcs
as carly as possiblc, cnhancing quality of tclccom scrvices with thc widcst posstblc
rangc to iiicct the ciistomcrs' dcmand, protcction of thc dcfcncc and sccurit!.
intcrests of thc country, and opcning up scnkcs for prn'ate prlriicipation. l'hc
tcchnology mission of the Commission aims at tapping the potcntial that this
advancing tcchnology holds for a paradigm changc to Icap-frog into thc futurc analog to digital, voice to data and basic tclcphony to valuc addcd scnliccs of \vorld
class qualit!,.
282

Liiictiicn. \Vtrctiicti. Cable

Splicxrs aid xgular Mnzcloc~rs
lcchntctans and othcr Group ( prsotiticl
(pkscsstng diploma 111 Enginwrtng)

I*cIwoiiilcchntcalAsststants

lulcphonc Operators. Tclccoiii

Senior Tclccom Opcrattng

Clcrks, Tclcgraphtsts. Tclcgraph

Assistants

Assistants
Thc rcstructuring has. ho\vcvcr. not achicvcd thc cspcctcd rcsults.
as the pay-scalcs oKcrcd in tlic rcstructurcd cadrcs arc not pcrcctvcd as attractive
cnough to motivatc thc misting stan to switch owr Thc DOT has alrcady dccidcd
to mcrgc (he Tclcgraph and Tclccom Ensinccring pcrsonncl into a singlc cadrc
Ilkmtindv it1
*c.nrmidr

3 I. 10 Dissatisfaction with pay-scalcs and conditions of scnicc in thc changing

cnvimnmcnt in thc Tcleconi scctor lias b a n brought out in tiiaiioranda. both
officialand thosc subniittcd by thc fcdcrations. Thc cmcrgcticc of thc privatc
scctor as a compctitivc biddcr in thc cniploynicnt niarkct in this scctor. and thc
rcdundancy of csisting tcchnologics and opcrativcs haw rcsultcd in dcmaiwls for
comparable pay-scalcs. thc nccd for quick training. and thc ncccssity to makc thc
rcstructurd cadrcs morc attractivc for a rapid switchovcr. Employees in thc
MTNL hllvc bcengnrn lfic status of dccmcd dcputation. and thcy havc dcmandcd
complctc parity in pay and scnicc conditions with thc public scctor. Thc pcrsonncl
in chc Tckom Enginccring Ccntrc, Tclccom Factorics and thc Wirclcss Planning
and Co-ordination Wing havc also dcniandcd nicrgcr with thc parcnt body and
cadres. A lot of dissatisfaction has bccn csprcssdd in Mcmoranda rcgarding
stagnation at thc middlc lcvcl. i.c. thc cnginccring schiccs bclo\v Group A. Thc
Telegraph and Tclcs traffic is coming doun. Thc pcrsonncl at the niiddlc lcvcl in
these services havc also rcprcscntcd with rcfcrcncc to thcir future prospccts.

I
7cmi.vof
re$eretice

CONSULTANCISTUDY ON RESTRUCTURING TELECOM

SERVICES

31.11
With the abovc considcrations in mind and thc dcmands madc in
Mp~oranda,we engaged the National.ProductivityCouncil (NPC) to carry out a
studyon thc possibilityof exploring new intiatiks to mcct the rcquircmcnts of thc
Telecom services in thc fast changing information cnvironmcnt. Thc NPC \\as
required to study the prescnt rolc of tclcconimunication serviccs in the Ccniral
Govcrnmcnt and the systemic dcficicncics with thc objective of cvolving an idcal
systcm for optimum utilisation of telccom manpower, and resolving thc duality of
DOT and MTNL along with ways for rcmoving thc uncertainties in thc scnicc
conditions of employees of thc lattcr. Thc NPC was askcd to suggcst changcs in
thc aganisational structure of DOT, including norms for tcchtiical stalf in kcxpitig
with its actual rolc in a modern cschangc, and irnprovcmcnts in thc scnicc
conditions and prospects of tclcconi pcrsonncl so as to cnsurc that professionals
possessing sophisticaicd cducation and skills, who arc critical 10 the dcpartnicnls

284

rcyuirciiumts. ilvc rctainod ilild do IIOImigratc to othcr scctor~.as also It) idcalif\
tlwsc w h m such criti&Ii!y da.s irot csist and flab can hc rcducd
S u ~ ~ ~a : /.. t n

31.12
Thc study idcntificd four critical and intcrrclatcd factom al'kctiiig
thc tclcconimunicalioiiscrvicc industty - tcchnological chaiigc, changc in mrkct
dcmands. h g u l a t i o n and globalisation It has also al~scrvcd4hlhatGovcmmcnt
will havc an cnhaticcd rolc in long-tcnn planning and rcgulation of
t c k u ~ ~ a i obut
n sa dcclining rolc in dircct provision of tclccom serviccs It
hos polnlcdout a mismatch bctwccn the spccd of technological and markct changc
on thc UCI h d and thc dccaion malilng ptoccss on thc othcr. Thc cxis~cnccof too
many 1ap-s for arriving at dccisions, thc study f i l s . IF timc-consuming d
unsuitcd for a conlpccltivccnvironmcnt Suggcstions haw bccn madc by thc stud\.
in thc ovcrall contcxt of granting autonomy and mmrcialising thc tclcconi
scn'kcs at chc pmscnt juncturc Thc spccific findings of thc study hrvc bccn kcpt
in mind while making our fccommcndations

*curunm~~~irl~itiiwi.~
.

RECOMMENDATIONS FOR STRATEGICCHANGE

3 I I3 A n u m b of issues havc uncrgcd UI thc mattcr of rcstructuring throushout

thc organisation, from thc Icvcl of thc Tclecom Comfnission.d a m to thc lowvest
lcvcls in the hierixirchy We haw gonc into thc rolc of thc Telebm Comniission.
its canposition and functioning, and restructuring of the opcrativc cadres UI view
of thc parallel cxistencc of rcstructurd and prc-restructured cadrcs (PRCs)
Duality of the MTNL human rcsowccs. norms for staffing and mention of
"crit~cal"persoruiel through special dispcnsa~on.haw also been considered in vim
of the commercial potential, rapidly ad\*imcinFtcchnologics (RATS),scopc for
privatisation of the Telecom seniccs and thc pbssibilitics of mngcr of hithcrto
scparatc cadrcs and units
31.14
Witb the induction of new digital t&hnologies, the restructuring of
DOT began in 1990, o r p i s i n g its opcrative employcts into the strcams indisatcd
in para 3 1.10, as shown in Annexe 31.I. Imdcquacies have been o b m c d in
rcstructuring, as the PRCs \vcrc pcfccivcd as more attractivc comparcd to the
restructured cadres. Vacancics arc crcated in the new grades according to
technological upgradation. 75% of the exchanges have k e n upgraded so far to
absorb the fcstNctufed cadres. A largc numbcr of emploiees have alrcady bccn
absorbad in thc switchow and a large number continue to wait kith only 26.300
of the 80,000 qualified personnel at Group D level having bccn traincd for

absorption. -Over2Iakh,employccsarc still in the prc-restructured cadres. The

Ikpartmcnt has suggostcd that thc rcstructuring has to be more attractivc than thc
PRCs,: in or& to inducc switchover, particularly of the scniot expericnccd
pcrsonnel. It has also suggcstcd that the Group D grades should bc abolishcd by
merger with Group C with somc spccial dispensation for them in the-form of
time-bound promotions, as thc number of scales availablc to th~sgroup and thc
ratcs of increment are negligiblc. and thcrc are inadcquatc growth opportunitics.
Also, whcn the scale of pay crosscs Rs.1200 t h q arc trcatcd as Group C and thcrc
is a reduction in thcir rcthmcnt agc. Thc consultancy stud?. has poinlcd out h a t
thc pcscntjob profile ih the DOT is too narrowly dcfinod. and necds to bc cnlarb.!
\kith thc advancing tcclmlogics. so that thc number of categorim is rcduced.

2x5

lA*s!rwtiwrq tlw
:p*r:itrw*sitr~?

7 I 15
Wc agwx that thc I)cl)artniciit rcquircs siibsktiitirrl flcsitdit> l o r
quick adaptation of tlic rapidl!. advaiicing tcchnologics llic s\vitcliovcr ol tlic
csistitig Ixrsonncl niust bc as sincwth as possiblc. In i t s rcslructuring schci~~c.
of
I9N. 1 1 1 ~ DOT has opcncll channcls for all Group I) cinployccs lacluding
temporary atid rcgular noii-matric Mn/.doors to bccotnc Phonc Mcchan~cs111
Group c. not laving room for any support staff at thc Group D lcvcl Wc do not
agrcc to thc abolition of Group D. as thcrc will al\vays bc a rcquirckctit of
pcrsonncl at lhat Icvcl. Thc gap bct\vccn thc cmployccs of thc two Groups should
rcducc ovcr a pcriod of timc. Thc proposals on assurcd carccr progrcssion nil1
achicyc the objccti\cs suggested by thc Dcparlmcnt.. Thcrc should bc two scparatc
Icvcls - Group D as onc and technical and opcrativc as thc othcr Croup D staff
may all be redesignated as Telecom Attendants afia bcing providcd appropriate
training in niultiplc skills. Thc ncsl highcr grade is thc Pbonc Mcchanic. with the
basic cne-scalcof Rs.975-1540. We recommend that Phone Mechanics be
redesignated as Telecom Mechanics. Such of those who are Matriculates and
qualify a screening test should be permitted to switch over to the restructured
cadres. The switchover should be a onetime irreversible opportunity.

Tcchnicians and othcr Group C staff posscssing a 3-ycar diploma in Enginccriiig

haw bccn pcrniittcd to walk-in to thc cadrc of Tclccoin Tcchnical Assistants
(TTAs).. Tclccom Opcrating Assistants. Tclcphonc Opcrators, Tclcgraphists and
Telcgraph Assistants havc bccn rcstructurcd into die cadrc of Scnior Tclcconi
Operating Assistan6 (Sr.TOAs). Our rccommcndations for thc pay-scalcs of
~tructurcd
cadres arc givcn in thc relevant Chapter. Thcsc will apply only to the
rcstructured cadrcs. The PRCs will remain in their present shape with the
replacement scales recommended in the relevant Chapter. The scheme of
ACP will not apply to them. A time limit of 3 months should be given to them
from the date of implementation of our recommendationsto decide whether
they will switchover. The option once decided will not be reversible,
JIOS crtrcl 77;s

3 I . 16
Stagnation in cadrcs of Junior Tclccoq Oficcrs
(JTOs)(Rs.1640-2900) and Tclccom Engineering Scrvicc Group B
(TES)( Rs.2000-3500)
havc bccn voiccd as a major demand in the mcmoranda.
Junior Telecom Officers arc the first rung for cntn into thc csccutivc Icvcl of
Tclccom management. TES is the ncst promotion Icvcl for thc JTOs, who havc
also dcmandcd upgradation at cntry on the ground that a majority of them arc
cngincchg graduatcs r m i t e d dircctly. and form promotional gradcs for diploma
c n g i m . Both catcgorics haw a lateral advanccmcnt to thc ncxt highcr scalc on
completion.of 12 years scnricc The administratkc Ministry has also pointed out
thc problcm of not bcing able to fill the Scnior Timc Scalc (STS) vacancics on
rcgulb basis strictly in accordance with rccruitment rulcs. It has suggcstcd placing
80% of thc Group B posts in ihc JTS, csclusi\d~for promotion. and upgrading
TES to thc b d of Rs.2375-3500.his also considcriiig upgrading JTOs to thc
extent oftlo% after 3 jcars s e ~ c on
c account of acutc stagnation. An cscrcisc of
mergcr of Tclccom Engineering and Trafic is alrcady at an advanccd stagc of
finalisation, which will rcsult in a larger numbcr of posts in a singlc cadrc. Thc
consultancy study has niarkcd this Icvcl as critical with substantial possibilit!. of
csodus, alongvith thc need LO upgradc qualilications so as t o nicct thc rcquircmcnts
of. advancing tcchnologics; bcsidcs upgrading rhcir pay-scalcs and providing
adcquatc proniotion prospccts. \Vhilc agi-ccingwith thc findings of thc consultancy
study as also the conccrn of thc DOT ivitli. thc probicms of stagnation and
advancing tcchnologics, \vc also obscrvc that under thc Time-bound proniotion

Ckvclopm~~
of teleconi scniccs in Dcllii and Mtinhiu. :\I1 thc nianpowcr.
h~\wvcr.is dram fmn thc Do1011 "dccnicd dcputation" tcniis. Thcsc pcrsonm.1
totalling W . O S ~arc spread at a11ICVCIS 2 I 776 iii Group D.3 ~ 4 7 2in Group C.
I795 in Group B a d N).( in Group A and haw dciiwrdcd thc pay and pcrks
applicablc to a h c r publlc scctor undcrlakings. .While ihc argucmcats fbr and
against divcstjng MTNL froin tlrc IhT arc both strong, thc dificultics in buying
back thc iiivcstmcnts in MTNL arc substantial. with rcquinvllcnts of upgrading
tcchnologics, increasing DELs, trahkg, ctc.. Thehng-term aim should be to
corporatise the entire DOT setup. As a first step, thc MTNL should be
converted into a full corporation which should be extended to other Metcos

3 I .20
The DOT has also suggcstcd mobility of its cniployocs to hclp thc
pnvatc scctor through availabilityof t m d mnpo\va. It 'suggests Lhc mcchanism
'ofdcputation on foreign smicc tcrms, with thc option to (hc employees to d u r n
to chc Departmat to cruich it with thcir cxpcricnccs. T h g h this mcasurc, Ihc
Dcpartmcnt socks to rcducc stagnatie also. Wc an: unablc to xccpt chc
suggestion on two counts. First, thc Dcpartmcnt itsclf has voiccd its conccms
about lhc possibility of csodus, particularly of critical pcffonncl, and second.
opcnings in thc privatc scctor might Ic&l to 'mdss scalc rcsignalions. or

post-rcrircmcnt cmploymcnt.
31.21
Thc !jcacmy (Tclccom) is thc Chaintian of Tclccom Commission
in h - p a yofRs.8000 ( l i d ) . Thc Commission has fmr full-timc Membcrs also
in Lhc pay of Rs.8000(fixed), onc each for Financc. Production. Tcchnolom and
sCn.iax, and dha part-time Members dta\\n from various ficlds. it is rcsponsiblc
for fmulating Tclccom Policy, its in@cmcntation and prcparation of budgct. All
the fivc posts in thc pay of Rs.8000 (fiscd)arc cs-cndrc posts. 'king part of
Ccntral Staffing Schcmc. Thc Indian Tclccom Scnicc (ITS) has demanded
posts in thc scnicc sincc it is thc mainstrcam smicc rccruited
M n g of all h.
through thc UPSC, specialising in thc ficld of Tclccommunications. Thc
admnistrativc Ministry has obsenul (hat according to rhc resolution constituting
Ihc Commission, thc Chairman and full-time Mcmbcrs shall be drawn from thc best
persons availablc, includrng those from \tithin thc Departmcnt. The ITS Group
A is nxruitcd through the combined Enginocring Scrvices Esmination drawing
oficas fian the best engineering institutions, and thcy.arc involved in installation.
opcration, mainknancc, planning, dc\~clopmcntand docision making at various
Iacls. Duringor01 hearing,scadiu?.(Telccom) fclt that cncadcring thc posts ma?
dilute the quality of mcmbcrship of thc Commission, though sincc its inccption in
1989, ITSofiicers had bccn posted to thc Commission BS Mcmbcrs, and the systcm
was functioning v q d l . Apcs tnihaging.Bovds like thc Railway Board. Ccntral
Board of Escisc and Customs, Ccntral Board of Dircct Taxes, Postal Scrviccs
Board, dc. arc cithcr being nm by cadrc officcrs or \\c arc suggesting cncadrcmcnt
of the lopmost posts, \vhcn necessary. The Tclocom Commission has 4 part-time
members in policy formulation and implcmcntation function, drawn from various
fields for a broad vision. The Tclccom scrvicc itsclf has a lcsscr rcprescntation at
the Mcmbcr Icvcl. Thcrc is no post of Mcrtibcr for thc Civil and Elcctrical \vorlis.
We recommend the encadering.of three fulhtime Members in the ITS Group
. .A. One post of Member (Works) may be created for heading the Building
Works wing. Member (Finance) may be encadred in the P&T Accounts and
Finance Service Group A after eligible officefs become available at that level.
I

2XH

As rcgards thc C1iaiml;lti a i d otlicr p.w-tiiiic Mcmbcrs. tlic csisting arrangnicnts

may continue.
( *#JmttUWl,II

InAwml'urltl
st-opeJ5w.
priruriwliim

51.22
As p a 4~ Nalitaiiil l'clccom Poliq. I994. thc Tclcconl Scctor Iias
been thrcwn opcn lo pri\ atc participation. Ihough thc DOT has cntcrcd thc ama
of valuc-addcd scrviccs. OIcsc arc mostly on privatc franchise. Rcscarch hito
switching and production is already substantially with thc autonomous Mia.
public scctor units or privatc scctoy. Tclccom factories arc, howcvcr, still in thc
&panmenial mould, darc IKM yct gcircd to undcrtakc production of cquipmcnt
d insmmcnts b a d on d c m technology. Thcrc arc 6 Factorics with osscts
\\-ohRs.63~UICS dannual tumo\vx worth Rs. IS5 crorcs cngaging 6.437 stan.
Thc Sinha Conimittcc ( 1992). suggcstcd a3-ticr structure. with a Factory l36iud
at thc apcx, thc Factorics organisation as o Dcpartnlcntal . p i t y and an iidjunct in
chc f m ota Tactmica1 Product Dcvclopmcnt Group. The Consultanc).audy has
pointcd out problans of compctition with PSUs likc ITI. HTL, ctc., and thc privotc
scdor, obsolesccncc of tcchnolob?,, csccss manpowcr; lack of demand, clc.. which
arc plagui~gthe T c h Factorics. Thc Dcpartmcnt has, howcvcr, adviscd that
it is ablc to obtain eompctitivc pricc advantage, and possibility o f supplying to
privatc opcralm by rdaining the Factorics as Dcpartmcntal units. Bolh thc stud)
and the Dcpartmcn! fix1 that thc Sinha Committcc rccommendations hpvc been
adcquatc. Wc fix1 hat with ;L suong infrastntcturc of production outsidc thc
Dcparlmcnt, there arc strong gounds for giving grcatcr autonomy to Tclccom
factories. so its to cnablc thcm.to upgrade obsolctc tcchnologits, mcthods and
products. We accordingly recommend that they should not be expanded. Till
they are retained in Government, they.should be corporatised. As
competition increases, they should gradually be privatiscd o r wound up.

t'~iclu.~t~t

3 I 23 With the above rcccxiuncndaticnrs, i t is expected that 8 new structure of

Teleeom services will emerge which will not only be trimmer, more effective
and efficient, but will also squarely meet the requirunchts thrown up by the
changing environment in terms of technologies and economic forces Thc
various skps should lead to.a gradual downsizing of thc total manpoww by 30%
OVQ the next 10 ycm. Thc impact of the n m Tclecom &I&,
1994, and cntq of
private sen~iccproviders i s not cxpectcd to be fclt at Icast fix another decadc.
lcavmg tbe DOTto take full advantage of the changes wc have suggested above to
takc up leadcrship of the Tclccommunicaticn sct-up in the country

32

flllrlll1~l<
Ill I l l

32 I
Thc Cciitral Go1.t has bwn riiisirig Ccntral policc forccs froni tinic
to tinic for handling spccific problcnis While most of thc forccs h a w bccn raiscd
mdcr MHA. othcr Ministrics likc Kail\va>.s aid Dcfcncc h a \ z also raiscd thcir oun
policc and para-milrtan. forccs. Of thc forccs undcr XIHA, CRPF \\as raised
primaril!, for dcaling with law and ordcr situations. BSF and ITBP for guarding
thc intcrnational bordcrs. ClSF for proiiding sccurit!. to Ccntral govcmmcnt
industnal installations ind NSG for combating tcrrorisni. Thc Raihvay Protection
Force undcr thc Minisq of Rai1waJ.swas crcatcd priniaril!, for protcctiog rail\\ a>.
FiOpCrt?. Morc rcccntl!..'thc Ministry of Dcfcncc have raiscd thc Rashtri\.a Riflcs
for combating insurgcnc!: though thc priman, rcsponsibilit!, for intcnial sccurit?.
rcsts with thc Ministnp of Homc Affairs. In fact. all thc forces undc;. MHA arc
bcing cxtcnsiycly uscd for internal sccuritj. and countcr-insurgcnc!. dutics.
irrcspccti\,c of thcir primary roles. The!. arc also bcing uscd on a iargc scalc
during clcctions and for pcrforming othcr tasks. For csaniplc. ITBP pcrsonncl
hn\c also bccn uscd for guarding b a n k and static dutics. and NSG for providing
VIP sccurit!.. Such divcrsion of forccs froni thcir primary rolcs hiis Icd 10 a
sciiicwhat haphamrd growth of thc forccs. n h c h has also ad\crscl! at'fccted thc
nioralc oc [hc pcrsonncl

GROWTH OF MANPOWER AND EXPENDlTURE

,'irtJlt,/il
.\ / ~ I I I / J ~ l N ' ~ ' I '

32.2
Thc tablcs bclo\+.givc an idca of thc cstcnt of groivth of' !iianpoucr
i n \.arious C'cntral Policc Organisations -

strength

200

)'em- NSG

ITRP

('HPF

BSF

AH

CISF 'I'otal
strength

I089 7.482 25,482 I .21,206 I .49.568

I090 7,482 29,488 I ,3 1,260 I .71.168
109 I 7,482 29,504 1 ,S9.09 1 1.7I .363
I992 7.485 29,504 I ,58,!)07' I .'I1.SO I
I993 7.485 29,504 I 3 , 6 9 3 1.71.735

52.460
52.400
52.460
52,482
52.504
I994 7.5 I2 30,29I 1,65.334 I .71,735 52.504

7 I .%I X 1.ZX.O I0
74.334 4.Oh. 192
79.620 1.09.i20
84.6 1 I 5.04.400

87,337 5.07.258
88.603 5.15.079

Sourcc - Ministry of Homc Allairs, Annual Rcport 1991-95)

Thc tablc bclow indicam how thc cspcnditurc on CPOs has riscn
32.3
during thc pcriod 1986-87- 1994-95:Year

86x7
87-88
88-89
89.90
90-91
91 -92
92-9.:
I)?-94
94-95

BSF

CRPF

ClSF ,

ITBP

AR

NSG

Total
(Rs. Iwkhs)

31 .I')? 00 22.549.34
8,02S.(K) 4;Ol 1.00 10.790 (HJ 2.572.1JO
36,13 1 .OO 161189.40 9.887.00 6.580.00 12.95 I .oo 2 . I30.00
43.:!l4.00 30.888.00' 11,955.00 7,690.00 l3.'~S~.Ot) 2.61 5 . 0 0
.

513Of.00
66.1 10.00
72,198.W
80,832.0(1

42.259.21 1 4 ~ 0 0 . 0 0 9.16600
43.398.65 17,196.00 10,157.00
58.5.47.00. -10,684.00 1-1.707.00

64?964.00 25.232.00 16.020.00

94.809.92 75,373.00 30,057.15 18.242.12
97.730.00 $5.550.0() 36,441 .00 19,28400

7'1.1 ?1 ?4
93.7h8.40
1 .IO.321 00
I6.501.oo 3.7I~).OO 1..37.21 1.21
17.91 1.00 5,274.00
1.60.036.05
20.X29.fW 4.558,(MI 1 :89.523 00
14.61 H 00 5.682 00
2.1 7.34%00
28.871.46 5.258 40 2.52.612.08
3 1.791.OO 5.258.00 2.76.054 00

(Sourcc - Ministry of Homc Affairs, Annual Report 1994-95)

32.4
P
d of the above tables shows that here has bccn considerable
increase in manpowcr and expenditure in thc Central Police Organisations during
the pcnod 1986- 1994. The annual compound growth rate of manpower \iorks out
to 5.6%: which is cxtrcmcly high when comparcd with dic corrcsponding figurcs
of I% for civilian govt employes y d I .4% for thc Aniicd Forccs pcrsonncl.
Similarly, annual growth rate in espenditure for this pcriod which works out to
18.03% is much higher, comparcd with thc corrcsponding figurcs of 13.4%for
ci\.ilian govt cmployccs,and 12.95% for Armcd Forccs pcrsonncl.

CONSULTANCY
32.5
Whilc we apprcciatc thc difficultics cncountcrcd b!. thc pcrsonncl
of the Ccntral Police Organisations in dealins \vith various complcs situations. wc
havc n o d with scrious conccm thc cslrcmcly high ratc of gro\vth ol'niaopowr inCPOs. With a vicw to finding out niorc cconomical ivays of utilising thc
manpower in CPOs and to ensuring +at funds providcd by thc public cschcqucr
arc optimally utiliscd, \vc awardcd a consultant!. stud!. 10thc Ccntrc for Policy
.Rcscarch with the following broad tcrms of rcfcrcncc:

io I

(I)

lo cxaniinc thc primary and sCc0ndat-y rolcs of thc Cciitral lolicc

Orgmsatmis 4mkfinc nvssions \sit11 a s icw to rrrtionalisitig thc
csisting stmcturc of thc Ccntral Policc Organisations

(ii)

To csplorc thc fcasibrltt\ of piwitsation of scxmrity rcquircmcnts

in rcspcct of Cciltral cstiblishrncnts. banks ctc.

(iii)

To idcntib mcosurcs for stmngthcning and modcmisins the Statc

Police Forccs so as to cnablc thcm to cffcctivcly perfonn thc law
and order and intcmal security functions. which pri:nardy fall
within their purvrc\v

(iv)

I4ew of .
rtdm'cri~ati'v
A4inisl?y*~slaw
iicnvrnm~nts

To rckommend diffcrcnt models aimcd at rcducing thc numbcr of

Ccntral Police..Organisations and avoiding multiplicity and
duplicationof fwtions, includingqhc possibility of bringing them
under one umbiclla

32.6
Wc also held dlscussiOnS with Horn: Sccraaty. olha scnior oficials
of the Minisby of Homc Affairs, and Directors Gcncral of various Caitral Policc
Forces. This mattcr was also:uIp up \villi sonw of thc. Chicf Ministers. Chicf
Secretaries and DGsP of the Statcs visited by us. In rcply to thc qucstionnairc
circulated by us, wc rcccivqd views of Directors Gcyral (Police) and Chicf
seaaaries of some ofthe other siates as ~ C I 3s
I promincnt rctimi police oflicers.
Wc havc considerod all thc vigus and suggcstions rcccivcd by us as \\.ell as thc
rccommendations made by- thc Centrc for Policy Rcscarch and our
mommendations in thc matter arc discusscd in thc succccding paragraphs.

1 OUR RECOMMENDAT~ONS1
.%wn&henittg
State I'dice

F'me

o/ 32.7

One of the pasons for the deployment of Ccntral Pblicc Forces for
internal security pwposcs is the inadequacy of Statc policc forces b deal with the
merging situations. We feel;.that State Policc forces should bc strengthened and
made capabk of mamg mosvof UIC internal security threats. Currently the police
departments are grossly n&lecled owing to thc cspcnditurc on them being
categorised as non-plan. As a result, funds are not sufliciently available for
lllodcmisationof the Statc police forces and upgrading thc skills of their p m c l .
In prder Lo reduce the usc of& Central Forces, it is of paramount importance lo
strengthenb.State Police forces. Our suggestions in this regard am as under :-

(a)

There is a need to state emphatically that meeting the routine

threats to internal security is primarily the task of State
Covts. The Centre's role should be confined to providing
CRPF Battalions as reserve to meet the occasional
contingencies such as major breakdowns in law and order or
larhe scale disturbances.

(b)

We recommend that the State police departments should have

plan schemes in order to drengthen and modernise them. The
States should also be financed to progressively increase their
Armed Police strength through raising of India Reserve Bns,

292 :

which should bc centrally sponsored on matching basis and

Central funds earmarked to upgrade State police forces.
( e)

(d)

Two ambitious schcmts Police Housing and Modernisation of

police which were launched at one stage as Plan schemes
achieved a lot in terms of strengthening the basic
infrastructun and equipment of the State police forces, but
mrc scrapped haw-way. Both need to bc revived.
We rho feel that the existing regional training centres under

the ccntrrl Govt &odd be strmgthcned to impart specialid

training to State Police forces so that the skills of the police
personnel are upgraded to enable them to tackk various
situations, thereby reducing the need for deployment of
Central police forces in aid to civil authorities.

Heponpnng (?/

I.bKcs
Holes

tkW

(e)

Besides allowing thc Statc Forcc~acccss to thcsc spccialiscd

training facilitics, it is necessary to provide an exclusive annual
f
o
mto discuss and exchange views on al! matters concerning
thesc activities. Such a mcasurc will facilitotc linifonn
professiona1standiuds. training. cquipmcnt ctc

(f)

We rho recommend raising of a Special Task force in each

statd'on the lines of the Rapid Action Forcc in thc CRPF for
ConducGng spccialiscd opcrations.

Thac has becn consldenblcdeviabon from tk;rolcs assigncd to thc

C1
Police forces No clear cut definition of rolcs IS k i n g follo\vd To cffect
rationalisation and to ensure that CPO manpo\\cr is propcrly utiliscd. it has
~
q necessary
e to ndefint the roles of the CPOS and :O rcgroup the r m
according to their assigned roles

32.8

We me of the considered view that Central Police Forccs should be

mgroupcd as Border Security Forces and Internal Security Forces. Based on the
above approach we recommmcnd that32.9

(a)

CRPF

should be the single force to assist the State

administration in .dealing with major law and order
situltions We do not find anyjustification for a separate force for
anti-insurgency The anti-insurgency duties should form part of
the role assigned to the CRPF. The requirement of Central
forces hr ekdion duties should be assessed on a realistic basis
as the existing level of deployment i s very high. CRPF should
be the only Central Force for deployment on election duties.
Moreover with strengthcning of State police forccs and raising of
Ma Reserve Battahons, the numerical strength of CRPF should
also bc dt~cedi to that extent. The Rapid Action force (RAF)
raised within thc CRPF should morc oppropriatcly bc callcd as
Special Task Force andcontinue to bc deploycd in communally

scnsitivc arcos

Sincc thc Amiy has i i o csclusivc rcsponsibilit> in thc iiiattcr of

rntcrnnl sccurity. \vlvch is primardy thc conccrn of MIiA. thcrc is
a casc for rc-csamination of thc rolcs of Raditrry~Kiflcs and
Assam R i l l s We recommend that Rashtriya Rifles, which was
raised without any plausible justifrcwtion for a period of 3
years only should be disbanded forthwith, This \vill makc
available 36 Bns to thc Army which bcsidcs tiding ovcr tllc
s)wrtagc of o f f i and m rn lhc Army to somc cstcnt. will rcsult
in substantial savings both in tcrms of manpower and cxpcnditurc

Duc to changed scenario on Bccount of bctter communication

facilitlcsand o h administrativc improvcmcnts.thcrc is no rcason
for the Assam Rifles to m a i n confincd to North Eastcm Statcs
and that too iindcr opcrational control of Army As such, we
recommend that Assam Rifles be delinked from the Army. It
may be withdrawn from the Border security duties in North
bst and merged with ERPF for Internal security duties and
brought under the control of the MHA. By doing so. the f m c
\dlintegratewith thc minstrcam and would nio\ c out on transfcr
to othcr states as wvcll This will also rcsult 111 rcductron of the
various H a d quarters elcments of Assam Riflcs including training
establishments Almost 80% of thc oficcrs no\\ on dcputation
f m Army wli thus rcvmto thcir parcnt organisation and help in
making up thc cxisting shortages in tbe Ami!
With rcgard to Border Security, we suggest that while security
o f Sino-Indian, Indo-Bhutan, Ihdo-Nepal and Indo-Burmese
bordtis (Northern Border) could be entrusted to ITBP, BSF
should be made responsibleto look after Indo-Pak and IndoBangladeshBorders(Western and Eastern Borders) Moreover,
thesetwo forces should be withdrawn from Internal Sacurity
duties.

RegNSG,then is a strong casc for withdrawng it from VIP

security duties and putting a cciling on thc organisation. We
recommend that NSG should not comprise mom than lo00
pqrsonnel including civilians. The staff in exccss of the ceiling
should be sent b3ck to thcir parcnt organisations NSG should not
be deployed on VIP security duties and should confine to its
primary role of combating terrorism. The small size of the
NSG is necessary to maintain its d i t i s t character This mcasure
will rcsult in cutting down of manpoucr to thc cxtent of
apprkmately 6OOO men with consequent rcductron in cxpenditure
on maintenance of this forcc
At prcscnt Ccntral Industrial Security Forcc(CISF), lndo-Tibctan
wc"fi~

Border Policc (ITBP) and othcr organisations likc thc Railtvay Protection Forcc

urrc~ti~t~~~rorls

(RPF) arc looking afier the sccurity arraf$cments of Ccntral cstablishmciits

including banks. Whilc CISF is looking aftcr the sccurity functions of Industrial
w~dcmhngsowiicd by Ccntral Govt., lTBP is.lookingafter the security of banks
in Punjab. Similarly RPF has bccn looking aftcr thc dutics relating to protcction

: 294 :

of Kail\vay properly aiid bookcd consignnicnts. With a view t:, strcaiiiliiiing tlic
arrangcnmts, we rccoiiimcnd that -(a)

ClSF should only guard the installations which have a bearing

on national security instead of guarding all kinds of industries.
Thc rcsponsibility of providing sccurie to othcr undertakings
should bc cntrustcd to private security agcncics 3r to Statc.Gov&.
concaned or,alternativcly thc industrial establishments should
develop their own in-house security orgapisations for this
purpose. Saving on this account could bc appmximatcly 30%.
This, touplcd with general cut on manpower, will result in
substantial saving both in terms of mangowcr as wcll as
espcnditurc.

(b)

Likewise, bank duties in Punjab should be taken away from

ITBP. Thc manpower s a d as a m u l l thcrcof could bcttcr bc
utiliscd for dcployncnt on borders to offset thc shortfall of

personnel fbr border duties.

(c )

R d r t f l IIj.4

In casc of RPF \vc find that thc dutics conncctcd with book&
consignments involvc constant interaction with thc commercial
staff and kno-se-of
their functioning, which wc fix1 should
continue 16 bc done by RPF instcad of contracting out to private
agencics.

32.1 ]
Thc Minisby of Homc Affairs is thc nodal ministry responsible for
internal security. Thcrcforc, cven forcc dcploycd on intcrnal sccurity duty should
be fully accouqtablc and aiis\\.crabIe to thc MHA so that MHA could control the
actual deployment and operations of the forccs. It has also been brought to our
notice by heads of CPOs that once thcir troops arc placcd at thc disposal of State
Govt, the duration of deployment and movcnicnt is stretchcd bqond reasonable
limits. Even the MHA is not in a position to monitor such movcmmtddeploytnents
etc. At times the units arc despatched to thc States without giving them adcquatc
time for preparation. We recommendthat ;
(a)

A suitable mechanism be evolved within the MHA to control

and monitor actual, deployment (including duration) and
operations of the forces. In this regard, therc is nced for setting
up a control room in thc MHA which should bc manned round the

clock by officers and men drawn from thc existing strength of

CPOs This control room should bc cxclusively used for
moiiitonng thc police operatiohs, deplojment and mo\wnent of
vanous uruk of CPOs and should be placed undcr an ofiicer of the
rank of Jomt Sccrctq to be designated as JS (Policc Operations).
(b)

The MHA should ensure that a reasonable time is made

available for equipiing the personnel.before their movement
to different climatic regions.
MHA should also makc
arrangcmcnts with the Ministry of Rail\vays fQr providing rolling
stocks on top priority to the CPOs to facilitatc thcir speedy
moucinent. Hoivcvcr, our proposal for rc-grouping of forccs wili
rcsiilt i i i substalliid rcduction in the movcmcnt of troops.

(c)

(d)

A 'National Framework' should be worked out clcariy

idcnti@ing the fore requirements of each State on the basis of
projections about anticipated law and order and internal
security problems in the coming 5-10 years.

There sbould be three coordinating torn within the Ministry of

Home Aff.8i1-snamely,
(i)

Establishment hard dcaling with matters dating to

Human Resource Dcvelopmcnl, recruitment, promoth,

training etc.

c~'wrClus1m~

l~rntlnlg01
nnmkrrr

(it)

Strategic management group to formulatc broad policy

guidelines and

(iii)

Crisis M
tgroup to deal with situations which
nccd constant monitorhg. All thcsc thrcc fora should bc
headed by either thc Home Sccrday or thc Special
Secretary (Home) dcaling with internal security. Thc
Director, Intelligen& Burcau and Heads of some largcr
CPOs &odd be meinbcrs of these f i a . Thesc lhrec fora
should ensure that optuhum use of the forces is madc
without much movement and administrative problems.

32.12
Thc main objectwe of restructuring and rationalisation of the
Central Police Organisations was to delineate a national framework for internal
security management and carve out roles for the Union and States. Another aspcct
of ovemding imporlance wvas that the countq has ~peakdlyrequisitioned the
secvices dthe Amry to handle law and orda and intemd secur~tysituations, which
IS not warranted bamng exceptional situations. It may be appreciated that 11 IS
~lban),
times morecostly todeploy the Amy compllfed to the State Police or any of
the CPOs. Any nmsuredfforrestructuring and rationalisation of the CPOs cannot
bul take serious note of this imperative and deliberate on a National frame work
which should make cacptndenct on the Army to meet internal security situations
an exception ratha then the rule. On the other hand, unlimited and unplanned
e x h i m of various forocs is ako a malady and them atc dangers inhennt in their
expmim beyond a point, such as probletns of cummand and control,difficultyin
cataing to training arrangements, weapons, equipment and other essential
pdministdve and b s t i c support. Furthkr, la@-sized forces tend to have many
problems of cplcEoIKwnicutilisation of manpowa due to un(KxxIunled,unaulhorised
and wasteful diversions. There has to be a balance between size and efficient
management.

32 13

The above requirements have been kept in view by us while making

our rccanmmdaw on testnrduring and rationaliqation of forccs in this Chapter
It is expected that the various proposals madc by us will lead to an overall
pruning of the numbers of Central Police personnel by 1/3rd within a period
of ten years Meanwhilc, po additional staff should be sanctioned for any of thc
Ccntral'fbfccs'and action may bc initiated on the lines suggcstcd by us. Them
would bc no n d for retrcnchmcnt of any person The entire ducrion can be
achicvcd by normal attrition.

: 296

33

I INTRODUCTION I
Geneml

Gmu*'hoftk
Services

33 i
In the earlier chapters, we have considered the scope for optimization of
c i ~ manpowtz
h
in the vanous sectors of Government. As the defence forces are the
second largest Government sector in terms of numbers employed and resources
allocated, we decided to examine the areas of manpower optimization in the Defence
Forces also. We intend to approach the subjet in the overall cbntext of the emergmg
Security scenario, the ongoing financial situation and the internal needs of the Defence
Forces to modtrnise their weapons and equipment and to kecp their men fighting fit.
33 2
The table below gives the manpower figures for various years for the three
Services. An examination of the manpower figures of the three s e m , the Army,
Navy and Air Farce inhcates that their manpower has grown at an annual compound
p w t h rate of 1.4%. dunng the period 1981 to 1991 which is somewhat higher than
* the rate ofgrowth of 1 2% for civilians during the same penod.

Year Strength
1966

1971
1981
1991
1995
~mndofD+nm
Ikptnditun

8,24,000
8,30,000
8,80,930
9,98,045
9,98,046

Na\y
Year Strength

Air F6rce
Year Strength

1961

16,821

1961

37,558

1971
1981
1991

30,100
36,169

1971
1981

51,042
52,453

1991
1995

97,949
1,10,833
1,29,057
1.30.44 1

1995

33.3 The year-wise Defence cxpcnditure for the period 1985-86 to 1993-94 was
as under:

Y car

l98S-U6
1986-87
1987-88
1988-83
1989-90
I 990-91
I99 1-92
1992-93
1993-94

1)clcncc ISspciiditurc
Dcfcncc
Espcndimrc
as Perccntagc of
(in Crorcs or Rs.)
GDP

3 .OS
3.58
3.59
3.37
3. I6
2 90

7989

10,477
11967
13,341
14,416
15.426
16.347
17,582
2 1,845

2.66

2.49
2.78

The data indicates that although thc Dcfcnce Expenditurc has k n

increasing in absolute terms, it has remaincd within 2-3% of GDP.

We have bccn infomicd that manpower and rclated costs alonc

account for about 65% of the Defencc Budgct lcaving limited rcsoufccs for
nmicrnization and acquisition initialivcs.

I
Inrental .\eccls

h'md 7 h o r
Scrnario

NEED FOR RESTRUCTURING

33.4
Feeling umcemed at the large deploynicnt of nianpowcr in the Armed Forces
and thc extremely high cost of maintaining this manpower. we studied the operating
scenario to see how best the situation could bc nianagcd. Our inquiries retailed that
with the disintegrationofthe USSR, which had bccn for thc past hvo decades a rcliabk
and cheap source of military hardware. procurcmenl of n d i w hardware for ollr
Dehce Forces has become a more costly proposition. Clarly, we cannot maintain p
credibleddimce posture, if our defence capability is to remain in the currcnt s t r u c ~ l
form and the defence expcndture as a percentage of GDP is to remain at the current
level of 2.78%. Our defence preparedness, to bc both credible and affordable, will
have to bc predicated upon some re-structuring involving a shift of focus from a
manpower - intensive force to an equipment-oriented force.

33.5
The aforesaid re-structuring option could as well bc the most appropriate
response in the context of the emerging threat scenario. While there does not seem to
be my threat of war b m our immediate neighbours,their military modernization plans
and acquisition of nuclearweapon capability are dimensions which have to be taken
into &count. Though the general international climate has greatly eased after the end
ofthe cold war,it still poses,challengcsto our security and sovereignty in terms of nonmilitary threats and pressures because of our forthright stand on issues such as nuclear
non-proliferation, Comprehensive Test Ban Treaty (CTBT), Missile Technology
Control Regime, etc. In such a scenario of threats and challcngcs, a demonstratively
highcr oirensive capability for olir Defence Forces rather than their ability to be
engagcd in a long drawn-out war, would have thc right deterrent effect vis-a-vis an!
military misadvcnturc or bullying design against us. This proposition is especially
rclcva$ in the context of nuclear equation in our immediate ncighbourhood. Though
our nuclear policy has bum to use our nuclear capability for pcsccful purposes without
f d i p g our nuclear option, we cannot overlook the nuclear dimension in our hture
conflicts and its implication for our conventional deface preparedness.

298

33.0
In IIK: light ofour.analysisof thc situation and with a view to linding fcasihlc
options. wc conitiiissioncd thc liistitutc of I)cfcncc Studics and Analyscs (IIISA) to
undertalc a Gctailcd study with rcgard to "Manpower optiiiiisation in thc Ilcfciicc
Iorccs". Thc IDSA in thcir Rcport haw brought out that if thc prcscnt approach 01'
niain!aining dcfcncc capability at 3% of GDP is continual. we would bc scwrcly
widcr-prcparcd for ang hturc cvcntuditics. Thc option. according to tlic IDSA. would
bc bctwccn achicving mutual arms control spccially with rcspcct to our ncighbounng
countrics lcading to somc rcduction in manpower or by cngaging in "Autonomous
R-uring"
lcading to d u d manpotvcr but incrcascd mobility-Grc powcr. The
IDSA have ruggated that the'said"Autonomous Restructuring" may be carricd

' ~ ~ i . ~ i i / f ~ i ~ i ~ . I . ~ f i ~ ~ ~ .

out on the following lines:

Doctrinally, shift from strategic zltfcnrc.to strategic offensivc
paradigm to prevcnt war.
Reduce active manpower in the A m y by 3S-4SYo and retain
3&4S?/o of present manpower on standing reserve and reduce
manpower: in the Navy and Air Force in the supporting
components.
Increase the armourcd a d meehanised forces.

Higher offmsive capability for Air Force and augmented Naval

presence.
Substantive increase in Defence R&D.
intermediate range ballistic anu worter range cruise missile
capability on high priority.

The IDSA have envisaged that tvith this forcc restructuring. thc
Defcncc Forces will ktain thc capability to provide disaster rclicf. but \\Ill have
reduced potential to ~ e r l a k internal
c
security duties.
Suggestions .Uu&
by lAX4

33.7
In line with the proposed Force Restructuring, the IDSA havc
suggestcd certain altemate manpower management models.' which singly or collectively
with a provision for higher active reserve, could provide the base for greater
optimization of manpower. They include "Voluntary National Service" (WS).
"Compulso~National Service" and "Reduced Colour Service with Lateral Induction
within Defence Forces and Outside It". The concept of VNS,which was formulated
by Defence PINlning Staff of the Chiefs of Staff Codittee: cnvisages .retention of
30% personnel on regular service and induction of 70% personnel under VNS doing
5 to 7 years' service and then being resettled exclusively in the civil scctor. Under the
schcme of Compulsory National Service, aspirahts to the Ccntral and State
Government Serhces (particularly Police Forces) and college students who obtain
highly subsidized education (doctors, engineers and.the like) sh'ould do a mandaton.
period of five vears' service with.the Defence Forces which should consist of such
entrants to the extent of two-third of their strength, thc balancc one-third bcing
rccruitcd by dimt enby who wwld provide the permanent cadrc of the Defence Forces.
The third option vi&liscs rcduction in colour senkc and lateral transfcr of pcrsonncl
to support functions within the Defencc Forces and outside in thc civil scctor.
33.8
The IDSA havc suggestcd that as a part of thc gcncrai optimization
cxerc~sc.thc Scnkc Hcadquarters should bc intcgratcd with.thc Miniswy of Defence.
which will rcsult in some savings in lcrms of manpowcr and cfforts. We have also

rcuciwd siini tar suggestions froill tkc Ar-tncct I c ~ c s

33 0
Wc havc. \vIiilc foniiulating OUI i)ri~posidson tlic siibjcct. 1;1hc11into ;lccoi1111
the suggcstioirs iiiadc hy the IIISA Wc also held discussions 011~IICSC alld ~ t h c f
Ilcfcncc niattcrs \\itti thc Scnicc (*hick rctricd chicfs and sciiior officcrs of. thc
Ministrl\.of Dctcncc .The YIC\VS csprcsscd during thcsc discussions as \vcll as lhc
viavs cspnssed in tlic Arnicd Forecs ii~~iilt~r;iridu~ii
havc bccii quilc useful 111-hdpirip
us to fim\ up our approach Wc havc also considcrcd the Y i c w csprcsscd by thc
Estiniatcs Coniirittcc (1992-93) of thc Tcnrli Lok Sabha and Tcntli Finance
Commission regarding Ihc nccd for optiniimtion diiranpo\vcr in thc A r n d Forccs and
kccping (lie Forccs young.

OUR RECOMMENDATlONS

33. I 0 Sincc nmpo\r.cr rcquircnmlts in our Dclcncc Forccs arc dctcrmiiicd by the
forcc structures to be nmintained. any nimpo\vcr optitnilation cscrcisc to bc arllgmundcd riiust flow from forcc rcstructuring in our Dcfcncc Forms. In this rcgagq w c
find thc IDSA lbmiulation on Autonomous Rcstructuring as a sound framc\vork
towards mlmpotvcr optmilation without compromising on dcfcncc prcparcdncss.
Drawing on this IDSA prescription. we would likc to prcscnt a bluc-print for
rcsullctunngour dcfcncc capabili[y. The re-structuring that we are !alkhg about
could mean a small sized Amry reinforced in terms of enhanccd mechaniscd
strike capahilit? and complcmcntcd by a more offensive-oriented Air Force and
augmented Naval prcscnce. This would rcquirc a positivc approach leading to a
drastic cut-bad on n m p o w r not only in thc Anti> but also in thc suppon coniponcnts
of Ihc Na\> and Air Fom. so hat wc haw cnough rcsourccs to go in for niodcrnimior.
and nicclianisaiion of our Forccs. Acquisition of indigenous wissilc crtpabilit!- and
sustained dcdopnicnt of Dckncc R & D to attain sclf-rcliancc in niccting our dcfcncc
nccds must ncccssarily be thc high points of our agcnda for modcmisation.
An? c\crcisc for ii~siipo\\croptiiiirration in thc Armed Forccs has to address
to thc nccd of keeping thc Armcd Forccs. cspcciall! 11s combat coniponcnts. !ouiig
In this rcgard. \\c ha\c considcrcd thc rhrcc altcmatc monpo\vcr managcnicnt modcls
with a provision for higlrcr activc rcscmc. as suggcstcd b y thc IDSA. Though the
IDSA suggestions oRcr a framework for restructuring our Dcfcnce Forccs towards a
lcaner and youngcr shape. xvc arc against thc idca of higher rcscncs and any changc in
thc voluntary naturc of rccruitmcnt into our Dcfcncc Forccs. Going by our past
cspericncc and thc gcncml social attitude and cthos. \vc can not dcpcnd on rcscn-ists
of any kind for a rciular war. hlorcom. rl war in thc Indian conicst is ncccssaril!.
sonlcthing forccd on us by 8 turbulent nciglibour and thc timing can ncvcr be decidcd
by us. By the timc thc rcscnfists arc summoncd. our wars arc api to bc ovcr.

33 I 1

33.12 Our Defence Forccs havc all along bccn making rccruitrilcnt on \.olunian
basis. Thc concept of i,oluntap rccrumicnt has bccn accepted b!- many countries in
thc world, Evcn thc USA and Great Britain. who had a long cspcricncc of national
senice, haw svitched o m to the systcni of voluntan recruitment. We fed that any
changc in the voluntap nature of recruitment into our Defence Forces will
seriously affect the quality and morale of thc personnel in the services. In \icw
of thcsc considcrations \vc do not subscribe to thc idca of cithcr Voluntary National
Senxx or Compulson. N ~ I ~ I OScrvicc.
N~
as the! \vould bring in an cicnicnt of forcc or
conscription in tlic pattcrn of rccruitnicnt ~ n t othc Dcfcncc Forccs.
33 13 l l m Ica\cs us nit11 the option of Keduccd Colour Scriicc nlth Latcral
Induction ~ i t h i i rthc Dcfcncc Forccs and Outsidc It Wc find this conccpt both
practicable and i\orhablc This option envisages a lean cadre of oflicers and men

300

serving upto their normal age o i retirement and a large cadre of oflicers and
rncn (HIshort-tenn cngagemcnt with provision for their lateral induction within
the ' Defence Forces and outside in the civil sector including Itolirc and
paramilitary organisations Thls conccpt nor on]! proiiiiscs to liccp ihc coiiibal
Aniis of our scnkcs young bur also providcs a franicworli for nianpowcr optiiiiisacion
by bringing in thc conccpt o f a largc cndrc 011 shoncr tcni! of cngagciiicn~ tlo\vc\.cr.
tlic opcrationalisation of thc conccpt would largcly dcpcnd upon thc scopc for rciiiustcring within tlic scniccs and thc fcasibility of finding rcquircd iiunibcr of jobs
outsidc thc Dcfcncc Forccs. Wc havc as an intcrim mcasurc clscwhcrc suggcstcd
incrcasc in thc pcrccntagc of rcscrvation in Govcrnmcnt jobs in CPOs for csscnkcmcn and havc also suggcstcd a Joint Rccruitmcnt Board.
Hccircc 111)fI (I1
(

'(ihmr St*nw,*

Whilc thc mnccpt of latcral induction holds good for officcrs and mcn of thc
thrcc scr\ i c e . it holds spccial significance for thc Combat and Combat support Arms
among thc Army PBOR for whom \vc havc rccciwd a spccific proposal from Army
Hcadquartcrs on rcduction cf tcmis of cngagcmcnt Thc proposal cnvisagcs
distributing thc manpowcr into combat, combat-support and supporting scn'iccs
groups and lateral shill within ahd outsidc thc Dcfcncc Forccs after prcscribcd periods
of scrvicc and keeping in mind the agc profilc rcquirement in thc groups Wc havc
considcrcd thc proposal in detail and as a first stcp towards thc opcrationalisation of
thc conccpt. we recommend that one third of the annual intake into the Combat
33 I4

and Combat Support Arms of the Army PBOR should be engaged on a shorter
term of engagement of 7 years with the provision of their re-mustering into the
other supporting Arms and Senices within the Army Hcrc, while thc schcmc
would kccp the combat componcnts young, it \?ill save the effort rcquircd to find
suitablcjobs outsidc thc Defence Forces to absorb thcse short-tcrm cngagcd personncl

We find hat thc Armed Form havc deployed thcir manpowcr in scvcral arcas
not related to thcir core functions. If thc Armcd Forces withdraw from such arcas. thc
manpower rcleascd can be utiliscd to meet the reported shortages of oficcrs and men
in the thrcc services Our specific suggestions in this regard are as undcr.

~ f i ~ / ~ ~ ~ t r u . a l 33
h n 15
t
IIfJtl-COTt!
~;l!lC/t<Jtl.S

Rashtriya Riflcs have been raised by drawing on the regular Cadrc

of thc Army to perform internal security duties. The Armed Forces
have represented that their deployment on internal security duties
should bc minimised. We also feel that the Army should legitimately
bc kept away from internal security chores. We, therefore, suggest
that Rashtriya Rifles shoulB be disbanded and the engaged
manpower should revert to the regular cadre of the Army.
Similarly, the Army should be completely withdrawn from the
Assam Rifles
The Antlcd Forces need not divert their manpower to organisations
likc the Suney of India, Directorate General of Quality
Assurance, Defence Research and Development Organisation,
Milihry Engineering Service, Border Roads Organisation, etc.
There shaiild bc a gradual civilianisation of all these
organisations and thc officcrs can bc uscd for corc functions

The Air Force is wasting its manpower on accounts jobs Such

jobs can bc fully Iiandlcd by civilians. Thc Air Forcc manpowr
should hc iviihdrawn from such functions

'Ihc scrvicc 1ic;idqinrtcrsarc Iwlding olliccrs i n cxccss of sanctioned

strcngth. bj drau ing pcrsoniicl lioiii the ficld Thcsc can be casit?
spared for licld dutics and tlicir placc tahcn b! Ci\.ilians Wc
rcconirnend that minimum required nianpower he kept at thc
scnice ti& and the surl,lus niilnoowcr released immccliatcl!
for field duties
Thcrc arc a nunibcr of jobs i n thc Canteen Stores Deparlmcnt,
Army Service Corps, Resettlement Wing, etc which can bc held
by civilians. Wc suggcst that these organizations should he
progressively civilianised
33 I0
Sincc cniplopiciit of Civilians IS a less costl! proposition than that
of Combatants. tlicrc IS a clcar casc for cxploring thc possibility of civilianisation of
posts in static. rcar arid adniinistrati\c suppon organwattons and workshops in thc
lhrcc scniccs Wc fccl that the Ministry of Defence should set up a committee to
review the existing civilian-combatant ratios in different wings of the Armcd
Forces and InterSenice Organisations and identify posts for civilianisation
Herc, we recommend that, as a governing principle, wherever the existing
civilian - combatant ratio i s 20:80 it should he raised $0 SO:SO, whcre it is 70:30
to 80:20 and where the civilian component is 100%, the status quo should he
maintained.
33.17
For thc full operationalisation of thc conccpt of "Rcduccd Colour
Scnicc \vith Latcral lnduetion within Dcfcncc Forccs and Outsidc It" and to address
othcr issucs rclating to manpoivcr management in thc Dcfcncc Forccs. wvc recommend
that thc Government should constitute a National Commission on "Manpower
Utilization in the Defence Forccs". Thc proposcd Commission. to havc a holistic
approach to the issuc. should coniprisc rcprcsentati\.cs of thc Armcd Forccs. thc
Minisw of Dcfcncc. Ministry of Honic AlTairs. Minist? of Finance and the Minis@
of Human Rcsourccs Dcvclopnicnt and should dclibcratc on the proposcd forcc mix
rcquirenicnt in view of the thrcat sccnario and Ihc reduction to bc carried out through
ciwilianisation ofjobs. privatisation and contracting out of scniccs as also integration
of senices and infra-structure across thc ducc scniccs

-33.I8 Ho\vcver, as an inccntivc to achicvc manpowvcr reduction, wc wvould

rccommend for thc Govcmmcnt's considcration a proposal with an in-built incentive
for reduction of numbcrs in the tluee senices i.c. all savings achicved in thc allocated
rcsourccs duc to cut-back on manpower could revert to thc senices. To illusuatc.
suppose thc overall budgetaiy allocation for the Armcd Forces is Rs.30.000 crorcs.
Wc could givc the Armed Forces a ten-year pcrspectivc plan wvith an annual increasc
of (say) 5%. This would be a guaranteed amount. Whatever reduction in
manpower related expenditure is brought about by the Services could be allowed
to them to be spent on acquisition of better equipment
3 3 , 15)
We haw considered the issuc of integration of Scnicc Hcadquartcrs
wvirh thc Ministry of Defencc in thc light of oitr go\ennicntal functioning and thc
heudyiiurfws wifh
suggcstions of thc IDSA and thc Armcd Forccs. Wc havc also takcn into account thc
M)I)
views of the Ministry of Dcfcncc on thc issue. Thc Ministry of Dcfencc maintain that
thc existing systcm allows continuous intcraction bctwcn the Ministn and Senicc
Hcadquancrs and thc professional and technical expertise availablc in the Scnicc
Headquarters is made use of for examining dcfencc-rclatcd matters. Thcy haw further
added hat qny integration beyond this point d l havc two iiiain disadvantages :- (i) thc
systcni of independcat analysis will bc lost; and (ii) thc military disciplinc would dctcr
thc scnicc oficcrs manning Ministry Posts to modif\! an!' proposal forwarded by thc
Itilr,grurioti

I,$

Service

3 02

Scmicc Chicfs 111 VICW of tlrc Minrstrfs VICWS. we do no?recommend any change
in the existing arrangcmcnt between Senice Headquarters and thc Ministry of

Defence.
~fJtlC/ll.Vi~l~l

33.20 In our opinion. thc nicasurcs lisrcd in this Chaprcr should lcad to a roughly
30% cut in thc nianpowcr of thc Armed Forccs during the next 10 ycars and should
also lead to grcatcr strike power in lcnns of modemitat~onof hmponry and

upgradation of technology.

INTRODUCTION

(ietwral

33.21
Thcrc arc 39 Ordnance Factories having a manpower of 1.66 lakhs
and an annual turnover of approximately Rs.3,OOQ crores. The employment under the
Ordnance Factories accounts for nearly 87% of the total Govt. emplojment under thc
Deptt. off Defence Production and Supplics. The Ordnance Factory Organization
functions as a departmental undertaking under the Department of Defence Production
and Supplies. Ordnance Factories primarily serve as a production base for the Indian
Armed Forces for supply of critical lethal as well as non-lethal stores. In the absence
of adequate orders fiom the Armed Forcesi Ordnance Factories are also now engaging
themselves in production of items for the nondefence sector, for achieving better
utilization ofthe available capacities and'manpower. The existing range of products
d
W by Ordnance Factories include artillety and infantry weapons and other
small arms, assorted ammunition,explosives and propellants, anmured vehicles mo
military transport vehicles, optical and optoelectronic insbuments required by thc
Armed Forces,and combat uniforms, foot-wear and parachutes etc. The manufacturing
processes ir Ordnance Factories correspondingly cover a very wide specbum, i s .
enginwring, metallurgical, chemical, optics, opto-electronics, textiles and leather.

Xeedfar

33.22
Of the 39 Ordnance Factories, 16 were set up beforc independence
and had capacities created for finished stores as well as for basic and intermediate
materials. These had. therefore, an excessivc element of backward integration In
respect of factories set up after Independence, the orientation has been more towards
production of finished stores,drawingupon the civil sector for supply of raw materials,
components and semi- finishcd goods. IR thc context of the liberalised economic
scenario, we thought that the need for continuance of Ordnance Factories as a totally
dedicated production base under the Government should be examined. We have, in our
approach towards workforcc size control already recommended that no manufacturing
and commercial activity should be undertaken departmentally by thc Goyemmcnt. To
what extent the Govemmcnt could be disengaged from the activities carried out by thc
Ordnance Factories in vicw of their strategic nature and what form the rcstructuring
.cIr;~Idtzkic 1115 ~li:teforc,one of the major problem areas before us In order to haw

Resrrvcfuring

303

an ohJcctI\ c asscssiiiciii n c coiiiiiiiswiicd M A '1'at;i ('onsultaiic\ Scr\ iccs to

tindcaakc xi indcpcndcnt stud\ on "Kcstriicturrng of Ordnancc I:nctorics" 7'hc scope
ofthc Stud\ includcd restructuring of thc Ordnancc f:actorics to mahc than iiiorc goaloriciitcd and sclf-sustainlng. c\aniitiatIoti of thc \ iabilig of con\ crting thciii to a PSI;
Slructurc. c~tcntof pri\ atiwtioii possiblc and fomiulation ofa itinnponw plan for thc
Orgnni/.a t toti
( ~ i ~ f l s l i / l i l ~S lI~I -i vC

l~

33 23

The main suggcstions madc by

I ~ Consultants
C

arc as follotvs

Corporatisation of' thc Ordnancc Factory Organi/ation and

privatisahon ofclothing and schiclc nianufacturing units in a phascd

tiianncr
Diversilication into c n 11 scctor and rcduction of backward
intcgration
Rcdeplojmcnt of cyccss iiianpowcr. sclcctiw induction of quahficd
nianponcr and introduction of ncu promotion s! stciti
Progrcssii c limitation of thc control b! inspcction agcncncs
Modifications i n Financial control systcm

Mod I fica t i oils in ra i v ma tcr i a I procurcmcn t proccd u rcs

33.24
Thc Ministn of Dcfcnce has^ not agrccd nith thc suggcstion ofthc
Consultants for corporatisation of Ordnancc Factories and ha\.c suggcstcd rctcntion of
thc csisting structure. Thcy arc also of thc opinion that privatisation is not a \.iablc
proposition. In thcir vicw, selcctivc induction of manposvcr and modcrnisation of lincs
or production would improvc productivit? in thc organization.

O U R RECOMMENDATIONS
33.25 We have taken into account thc vicws cspresscd by the Consultants and thc
Ministry on this matter and our mnmicndations on the various issues connected with
the structure of Ordnancc Factories and streamlining of procedure arc discusscd in thc
succeeding paragraphs.
33.26 Ordnance Factones'arcbasically a conglomcratc of manufacturing/production
units. But, being Departmental undertakings of the Government. thcg could hardly bc
run on the lines of industrial enterprises. This is clearly cvidcnt in VICW of the fact that
some budgctan support is still rcquircd to be proiidcd by thc Govcmnient. Funhcr.
with Ordnancc Factorics now being rcquircd to go conuncrcial (both donicstic and
international) in thc face of dwindling indents from the h c d Forccs. thc nced for
fieeing Ordnance FaCtOiies of shackles of Govemiental procedurcs and allo\ving them
full functional autonomy has become all the more evident. In our opinion, to make

them mom goal-oriented, cost-effective and self-sustaining, Ordnance Factories

should be re-structured in the mould of Public Sector Undertakings.
33 27
In the Public Scctor sct up, thcrc Mould bc morc autonomj in
managing c i a y - t a y aEairs of& factoncs as WCII as in dc\ ismg tlicir on n SCI of rulcs
i n thc arcas of recruitment, pay scales, producpon policics, disciplinary rulcs and
matcnal procmmait As a public scctor unii, Ordnance Factories w i l l be able to raise
funds from thc capital markets Sincc interest will have to be paid for the money
raiscd. thcrc n i l 1 bc more prudencc in the monq rcquircment and cxpcnditurc With

304

thc corpontc linmicial accounting s? stcm. tlic i~erloriiiaiiccof Ordnnncc Factorm \r 111
Iwmiiic iiicnsunblc and nidiout dic nssurancc of*Golcrniiicnt support at all timcs. coqi
co~isc~oi~sncss
\\ill incrcnse W i t h thc prcscnt s\ stciii of all availablc funds lapsing 011
hlarcli 3 1 dispcilscd wth. procurciiicnt proccss invoh ing long dclivcn schcdulcs n i l 1
hc scrcamlincd and fhdnaiicc Factorics ~ 1 1 bc
1 ablc to rctain profit ~ h i c hthc! ma! carn
i n civil ~ a d cMorcowr. \\ithout thc rcquirciiicnt of prc-audit of cspcnditurc. thcrc I\ i l l
bc no tcndcnq. to niiun:ain an in\cnton kvcl highcr than what is rcallt rcquircd. thus
rcsultrng in bcttcr imcntoc managcnicnt and cost control
33 28
111 Accping with our v i m that Govcmmcnt should mccntratc on corc
actnitics such as po!icy making and not bc dircctly involved in production actitity. wr
mommend that Ordnance Factories be converted into a public sector unit Thc
units may sign a nicmorandum of understanding (MOU) with the Govemmcnt of India.
undcr \\hich ccnam targcts would bc laid down to cvaluatc the pcdorrnancc of
Ordnancc Factories The MOU should also spccify the dcgrcc of autonomy to bc
grantcd to Ordnancc Factorics
33 29
In addition to manufacturing strategic military sIores. Ordnancc
Factorics arc also prcscn~lycngagcd in rnanufacturc of transport vchiclcs and cablcs
and ccrtain clothing, lcathcr and packing itcms Therc is an cmcrging opinion that In
kccping 1~1ththe prcscnt libcmliscd mnomic dispensation. Ordnancc Factorics should
bc discngaged from these non-stratcgic m a s and that thcsc items should bc procurcd
cu-tradc

We r & m c n d that Ordnance Factories engaged in non-core,

non-strategic areas of production should be privatised in a phased manner To
start ~ ' i t h . the Ordnancc Equipment Group of Factories consisting of Ordnance
Eqwpmcnt Factory. Ordnance Parachute Factory. Ordnance Clothing Facton ma! be
consldercd for privatisauon In the next phasc Vchiclc Factor?. and Grc? Iron Found?
bc pmatiscd Subscquentl!. the Ordnance Cablc Factory may also bc considcrcd f i r
pri\ atifation
33 3 0

33:3 I
In order to $gruficantly improw thc capacity utilia/ation of Ordnance
Factories, greater thrust should be given to diversification into civil sector. Thc
cngincering factorics amotig the Ordnancc Factories offer ample scope for,
di\*crsification. These factories have special strengths, which can be tapped in
precision machining, machining of larger jobs! and manufacture of spccial grade stecl.
What may at best be required would be retooling of certain machines for civil sector
production and switching back to defence production may not be a, difficult and
cspensivc exercise. Keeping in mind the tremendous scope for di\wsification. a real
annual growth in civil trade of 25% should be achicvablc.
Reductioti iti
Backward
In1egmtiotr

33 32
Though Odnance Factories have already shed backward intcgration
tn some arcas like bar-mill and steel-melting, there is still enough scope for further
reducing backward integration. Ordnance Factories should disengage from
manufacturing raw materials and other inputs, which are already aiailable in tradc in
desired quality and quantity, as their manufacturing by Ordnance Factories themselves
does not lead to economies of scale
33.33
While Ordnance Factories are generally, ovcr-staifed, they arc
particularly deficient in some of the requisite skills. 'In thc Ordnancc Factory
Organization, old skilled hands arc getting dcplctcd duc to normal wastagc through
rctiremcnt and death and thcrc is no induction of ncw skillcd hands to rccoup thcsc
ivastages, due to continuing ban on frcsh rccnritmcnt in DGOF Organization. This
portends n \.cry dificult situation fir the organization i n thc !.car 2000 and beyond.
?i'lk'Jl r ! i m ofil~.;oitI skillcd hands would rctirc. Alrcady, Ordnancc Faciorics. which

3 05

k n c gotic iii ibr NC/('N(' niichincs. arc finding i t difliciilt to I I I tllcili

~
in thc dwctlcc'
of adcquiilc shilld lirrnds In this sccnnrio. coniprclii:nst\c tiratipo\tcr re\ I C N I S lolig
o \ w duc It shoiild bc undcrmkcn imnicdintcly

33 34
As largc scalc rctirciiicnts arc schcdulcd 111 dic t i n t 5 !cars. Ordnancc
Factorics ha\c a rcal opponunity to rtght-siLc thcir manpowcr l h c ciisting flab in
manpowcr, nhcn wasted out, should not bc rccoupccl. Fresh manooaer
induction shou!d bc limited only to mcct thc cmcrging skill requirements and
Ordnancc Factories can formulate a pcrspectivc manpowcr plan to this cntf
Hcrc. \vc specifically rccoiiimcnd that Ordnancc Factorics should bc alloncd to tnduct
shillcd niatrponcr both at thc working and supcnison lcvcls as pcr thc pcrspcctit c
iiianpowcr plan
33.35
Ordnancc Factorics Iuvc drcir oitii quality assuraiicc sct-up to ciisurc
quality at all stagcs. starting from raw matcrial procurcnicnt to intcr-stagc production
to final asscinbly of thc product. This set-up is parallcl 'to thc sct-up of DGQA. Na\al
Amlanicnt lnspcction and Ar Armamcnt lnspcction Wing. As niost of thc Ordnancc
Factorics liavc got ISO-9002 Ccnification and thcy haw bccn gi\ing a lot of
inipgrtancc to ttic quality aspcct. wc fccl that thcy can bc dcpcndcd upon to cnsurc
quality ofthc product. Howcvcr, kccping in \icw thc critical importancc of quality in
Ilic ficld ofanns and anmunilion froni thc point of vicw of thc uscr i.c. hrnicd Forccs.
\vc bvould still bc in favour of indcpcndcnt audit of thc quality of thc final product

Thus, we recommend that independent audit through DGOA,

Naval Armament Inspection and Air Armament Inspcctoratc should be confined
to the quality assurance of the final product and to quality assurancc at interstage production and raw material procurement stage only in the case of some
very lethal and critical items In all otticr niattcrs. Ordnancc Factorics should bc
solcly rcsponsiblc and accountablc for quality assurancc.
33.36

33 3 7
The existing system of prc-audit of expenditure should be
restricted to amounts above specified values and independent financial control
can he e r e r c i d by a regular process of post-audit. In thc Public Sector Structurc,
howcvcr. the cxisting accounts establishment has tc be fully integrated tvith thc
Ordnancc Factorics structure.

33.38
Our suggcstions with rcgard to thc Ordnancc Facton Organization
would haw thc cffcct of making thc Organization morc goal-oricnted and focuscd in
thc contcxt of thc new cconomic dispcnsation and ultimately lcad to grcatcr selfrcliancc for thc Ordnancc Factorics. Thc thrcc pronged apnroach of conycrsion to PSU,
privatisation of non-corc. non-strategic arcas and improvcnicnt of capacity utilisation
through planned divcrsification into the civil sector. it is hopcd, will rcsult in
improving thc cficicncy of thcsc units and rcduction in manpowcr to the tunc of 87%
of h c cxisting manpoivcr under thc Dcpartmcnt of Dcfencc Production and Supplics.
Sincc thc avcragc agc of cniployccs is high and a significant portion of manpowcr
w u l d rctirc within the ncxt six years. rcdcploymcnt of manpower may not posc a
scrious problcm.

34
I INTRODUCTION I
34 1
One of the major factors that has to underlie our
recommendations is the general economic situation in the county
Obviously, if the economy is in a mess, the employees alone cannot have
a Eood time On the other hand, ifthere is a generally upbeat mood in the
country, Government employees should also share in the general
prosperity
ill1 t Y I <
!/I(
I

Xrirop I ) /

J)I<\IiII

CI

\ PI1

11lc

I.( Otl01111~

Hcforlll T

lhc p

tk!-lT 01

Illd I 1Jf 0 1 It1 $

74 2

Today, as we write the present report, the reforms under

the New Economic Policy have made deep inroads into the various sectors
ofthe Indian economy The unleashing of the reforms package has been
by far the m s t significpt development on the economic front in the last
decade These reforms have brought India to the threshold of a new era,
a era which is marked by a transition away fiom the strong interventionist
development strategies to more open and market-oriented strategies
jq 3
The reforms were essentially a response to the
unprecedented crisis which hit the Indian economy in 1991. This exigency
tiad been precipitated by the reckless public spending through the 1980s
arld the consequent decline in the foreign exchange reserves in 1991,
which fell to a level just sufficient to meet the import requirement of the
cmntry for two weeks International credit ratings plummeted and the
cmfidence of the financial comniunity in our ability to manage our
I C S O ~ I ~ Cfell
~ S to an all time low
We were at the brink of default
Vleanwhile, the collapse of the centrally planned economies like USSR and
other fhst European countries discredited the planning and interventionist
approach thc world over I t was increasingly recognised that excessive
governniental irrter\mtion could be counter-productive. Thus the role of

307

tlic Government canic to tic rcdcfincd Not only rhc scopc and arcas ot'
bureaucratic intelvetition undcrwent a radical downward revision, h i t thc
btircaticriicy was now rcquircd to act as a facilitator
intcrvcning
mcaninglully, and not as a controller or a regulator 'I'hc ccononik
rcforms in India represented the fniition of this philowphy
Ill,*

< crr'k~titof

tiic rc/c)rws

The refornis package as it unfolded ovcr thc years canic to

have a set of slabilisation-cum-structuraladjustment measures In the field
of industry, the major initiatives consisted of liberalisation of direct
discretionary controls on investment and prices and delimitation of areas
reserved for the public sector With reference to the tax stnicture, change
resulted in simplification and rationalisatiort of the rdtes of income and
excise tax rates broadening of the tax base, abolition of wealth tax on
productive assets, etc. In the area of trade and exchange rates, selective
abolition of import controls, reduction of import duties, partial
convertibility of the rupee and simplification of rules and procedures for
attracting private foreign investment were the new steps In the financial
sector, revised accounting and prudential norms were introduced, SLRs
reduced and rates of interest offered by Government on its own market
borrowings increased Similar reforms were initiated in the capital market
and Government's control over pricing of issues was done away with,
consequent to the abolition of the oftice of the Controller for Capital
Issues SEBI was given statutory powers and was required to regulate the
market Private sector mutual hnds and foreign institutional investors
were also encouraged to operate
-34 4

POSITIVE IMPACT OF REFORMS

In what follows we summarize the major trends in the

34.5
economy in the post-reform period a f k the year of crrsis ( 1991-92).
( h s r htiieslrc
J'roditd

34 6
We observe that India recorded one of the fastest
recoveries from a macro-economic and balance of payments crisis The
growth achieved is spectacular even by international standarcis A look at
the rate of growth of Gross Domestic Product at factor cost and constant
prices shows a jump fiom 0 8% in 1991-92 to 7% in 1993-96 (See Annexe
34.1) As against the earlier years when increases of this magnitude were
largely explained by high rates of growth in agriculture, the improvement
since 1994-95 is being attributed to the remarkable development of
industry

ThC

34 7
The rate of industrial growth inay be gatiged from a look
at the Index ofhdustrial Productiorr The annual increase in the Index of
Industrial Production which had dipped to a level of 0.6% in 199 1-92 rose
steadily to a level of 9.3% in i994-95 and 10 4% in 1995-96 (See Aiinexc

i ~ i c r ~ "it1
w

Iticlrr.trrirrl
l~rl)*llictif)tl

34 1 ) Industrial growth has not onlv hccn high during the last t\vo yc'ars
..
has also lwcn Imwi-bascd 1 tic c.apita1 goods sector riiaintairicd i t s
position as an iriipcmmt contributor the iiidustrial surge, with a gro\vili
ratc o f 2 6 2% arid 20 490 in 1994-95 and 199.5-96 respectively I n tlic
core sector, however, while the ratcs of growth of'coal and cernent have
slw\sri acceleixtion, those of electricity and crude oil have declined. l'hc
l3u1

Index for Industrial Production for electricity has shown a sharp dIop in
April-May, 1996. This is primarily on account of reduced hydro-electric
generation The Index for crude oil productim also declined in the period
:lpril-May, I 906
We observe that the annual Late of inflation based on thc
WPI declined from a level of'around 14% in I991 -92 to ',tat of 10 4% at
the end of 1994-95 and 5 0% at the end of 1995-96 (See Annexe 34 I )
This success in containing inflation is attributed to a combination of
factors iricluding a deceleration in monetaiy growth, high levels of open
market sales of food grains, a liberal import policy, especially for essential
commodities and a surge on the supply side associated with acceieration
in the rate of growth of GDP The slowing down of inflation was noticed
across the board in primary articles like food grains, manufactured
products. etc Prices of fuel. power, light and lubricants showed moderate
increases in the past but are now slated to rise as a result of the upward
adjustment in their administered prices The rate of growth of Consumer
Price Index, on the other hand, fell fiom a level of around 14% in 1991-92
to 8 9% in 1995-96
3 4 b:

34 9
The economic reforms also led to a marked and favourable
turnaround in the performance of the external sector since the crisis of
I99 I The key indicators regarding the countrv's position are summarized
at Annexe 34 2 We observe the following trends

A strong and sustained recovery in exports is observed with the

rate of
growth of exports in dollar terms moving
up dramaticall). from - 1 1 % in I99 1-92 to
20 8% in 1995-96

ii)

The ratio of exports to imports has mcved within the range of 85

to 90% in recent years compared to a mere 60% in the later half
of the 80s.

iii)

There has been a substantial decline in the current account deficit

as a proportion of' GDP from over 3% in 1990-91 to more
manageable levels in recent years

..
I:

.'iflu;js'Jrge

haP :Axti place in foreign investmcnt from lcss than 5!

100 millicw to

iit

ound

S 4 to 5 billion in thc last thrcc years

34 10

Though the rise in exports remained stroiig at 2 1 per cent

in dollar ternis during 1995-96, the balance of payments came under some
pressure because of the continuing surge in imports, high debt-service
ratio on liabilities incurred in the prcvious years and a decline in the net
portfolio investments in the form of GDR issues The pressure on the
BOP m i f a t e d in the depletion ot'hreign currency reserves to the extent
of $ 3 billion during 1994-95 and 1995-90, as well as the depreciation of
the rupee.

I AREAS OF CONCERN I
Thc d o n print rli
i n c+yiciclfur 1,

34, 1 1
There is also some mixed news in a few critical sectors
Initially, the percentage increase in the index of agriculture production
plummeted to 2 O?/O in 1991-92 It. however, recovered tc around 4?h perannum during the period 1992-93 to 1994-95. In 1995-96 the percentage
increase fell to 0.9% Food grains production which had risen to a new
peak of 191 I million tonnes in 1994-95 mav also turn out to be
marginally Iawer at '1 90 4 million tonnes in 1995-96 because of a decline
in wheat output Public food stocks which peaked at a high of 35 6
million tonnes in July, 1995 declined to 22.7 million tonnes in April, 1996
because of the open market sales by FCI The buffer stock of 22.7 million
tomes is, however, still 50% niore than the norm. Reforms in the customs
tariff,trade policy and exchange rates have substantially reduced the bias
against agriculture. Investment in agriculture still remains an area of
concern and may possibly be responsible for the recent slowdown in
agriculture

34 12
The country is already facing a crisir in the field of
iiI/TLIssIrucIurQ, infrastructure An unprecedented power supply d. m t and growing
[he power
freight transport problems threaten to undermine the c untrv's stabilization
supply shorluge
und,-o,yesflon and reform efforts The recent reforms ended dec des cf public sector
iri jreigh f
monopoly (with the exception of railways) in infrastK :ture and invited the
t r u t v o r l ~ " ~ o ~private sector to address the major infrastructure needs While the
response of the private sector to shipping, ,air transport and
telecommunications has been strong and positive, the same cannot be said
of other areas like power, roads, etc
7he crisis m

llle cieclillc 111

34, 13

A key objective of India's liberalisation programme has

pvver(v und

been employment generation and poverty alleviation.

310

The sharp

I111

<*li\l
Ill

< l l l / ~ / 0 \IIlClll

devaluation ofthc rupee and the decliiic iii piotcction to the iiianu1kYuriii~
wcior did t u i n thc tcnns of-track 111 favour ofngiixlturc on which a laigc
segment of the population IS dependent On the other hand, the increase
in prices of key commodities such as tbrtilizcrs, rice, sugar, coftee and
gasoline could have put a high burden o i l the poor The AJI India figures
on the number and percentage of people below the poverty line as

supplied by Planning Commission, however, shows a decline in the

number of poor from 20 1 4 1 million to 168 57 million between 1987-88
and 1993-94 (See Annexe 34 3) This is supported by case studies as well
as statistics on wages for unskilled agricultural labour The 1993-94
National Sample Survey released in July, 1996 also indicates that the
incidence of poverty has declined Similarly, as per the estimates of
employment given by Planning Commission, the additional employment
generated appears to have gone up from a level of 3 0 million in 1991-92
to 7 I8 million in t 994-95 (See Annexe 34 4) While all this is heartening,
what instils disquiet in our mind is the absolute numbers of the poor and
the unemployed, which still continue to be unduly large
1It( 1 r w J c y u r r c
p ~ l p < T111~ Ilk,
\O(

I d

\((

10,

34 14
The progress in the field of social sector is far from
satisfactory Indicators on demography, mortality, education, nutrition
etc show a poor performance India which was close to China in 1960 is
now far behind The main reason is the poor delivery system Every
innovative programme seems to deliver only a Fraction of the intended
benefits and is almost always accompanied by high administrative costs
and leakages

CONCLUSION

34 15
The sum and substance of the preceding analysis is that we
no longer stand on the brink of a macro-economic disaster as we did in
199 1 Our industrial growth is buoyant and so is GDP. We have made
some dent in the problems of poverty and unemployment Inflation is
largely under control Exports are doing very well and our foreign
currency reserves are comfortable No doubt, there are areas where we
should do better, as in the fields of agriculture, social services and infra
structural development
34 16
From the point of our limited perspective, we could
conclude that the economic reform have come to stay, the economy
is in a better shape than before and there is every room for optimism.
Ihere is no reason, therefore, to deny what is reasonably due to th,e
Governrtient eniployees as w class It cannot be Sainsaid that they can
a l s o lcgitiniately claim part of the credit for the turnaround of the
cconoiin

?I I

P *:

0z.c
N

-3

Y.

h
(c

$2
N

$ .2
c

c.-J,
N C.

-.

- *?

Y!

cv
c
m
Y!

r-.

f 9

.r.

-.t

cIT. \c

N
7

c,*

R"c

-= -

q c
c.

=, q
r'x
re

t::

rs'

U:

(USS million)
Itmts

1.

-.
7

3.

4.

5.

6.

7.

I.

21,.

3.

4.

7.

Tcral Ikht Service I'aymen~s

(5 million)

X.')X2

-honomic Survey. l'JO5-96 : An 1 iflate.

x.250

7 . m

%Urw :

(4

h.

~~iprtrcs
include receipt on account of India I k v c l o l **nt tionds in I W I 4 2 and
related repayments. it any. in the suhsequent year$:

+ Indudc among cufiers. delayed exptn receipts and erwrs and ommi.wicins. F ~ thr.
K
year 1W2-Y3 it also includes errors und ctmrniJi.rions arising out of
dual exchande rates applicable under thz lihzralised Exchange Kate
Wanagzntcnt System (LERMS,

31s :

x.w

IO.UlC5

12.625

I.

-.*

3.

3 16

4.

3.

Ycar

Estiniates of Emptoyment

Total Employnicnt

Addi:ional Emplqmcnt
Gcncratcd (in miltions)

(in inillioiis)

I
-

Annual (%)
lncrcasc in
Eiiiylo\ nicnt

IOOO-9I

20% 73

I 00

5 x1

1002-03

30% 31

2 I%

0 5%

5.02
7.18

35

Our tcniis oi' rcl'crcncc tcqittit its t o c\;tnitnc tlic stiucturc 01'
emolunients and conditions of sen ice of' Go\ cmtiicnt sen ants ha\ ing rcgat d
7

-7

among other relci ant factors to the rcsourccs oi'thc Central Go\ cninicnt and the
demands placed thcrcoii such as tliosc 011 nccoitrit of' L ' C ~ I I O I I I Iand
~
social
dc\ clopnicnt. dcicnce and national sccitrtt! and icqutrcnients of' sound liscal
nianagenicnt In this contc\t. ;I re\ ic\\ 01' the Iinanccs 01' tlic (.cntral Go\ crnnic'n~
has bwn necessitated. to assess the capactt! 01' the Go\ cninicnt t o nicct the
cnhanccd \\ agc bill conscqutnt to our reconmendat i o n s
-7> 2
N'e observe that the position of tfie Central Government
finances at present, although not a: alarming as in 1991 is by no means
comfortable A looh at thc rci iscd csttmatcs ol'tlic 1arioils indicators of' liscal
imbalance in 1095-90 shou the rc\cnuc deficit t o be 0 1 the order of' Rs 3?.3? I
crores or 3 l " ol'GDP.
~
the budgctan deficit to be around Rs 7.000 crorcs or 0
of GDP and the gross fiscal deficit to be Rs 04.0 10 crorcs or 5 O ' h o f GDP (see
Anncvc 35 I )
? -

7"1i

7 -

-7

-7

Rc\ cnitc dclicit nicasurcs thc csccss 0 1 rc\ cnuc c\pcndttitrc o \ r r

~ ~ ~I-cquirri ~ ~ irc\'ciiiic
t
t-ccctpts not
rcimue receipts. Prudent fiscal ~ i ~ a ~ i a g\\-odd
onl!. to coniplctel~~
finance thc rc\.cnuc cspctid~turcbut also to ccncratc enough
surpluses for niccting the capital cspcndttitrc N'c 1ia1.cn large rci.cnuc deficit. and
iti 100-7-04.
it has niovcd lioni 2 3'%,i n l O X 5 - X O to 3 i",,,
iti 1000-01. to 4
bcforc droping to -3 1% 111 1005-00 \Yhilc rc\ciitic dclictt Iias tnipro\~cd111
comparison to 1000-9 I i t continues to C ~ L I S Canstct!. as its absolute magnitude IS
large This in effect incans that tncrcnstnr,l! I a I g 1)rq)ortioiis 01' high cost
borrotvings arc being di\.crtcd to meet the dclictt i i i the re\ c n w accounl \vtthoiil
an!. rctuni llo\\ 10scrvtcc thc borro\\ ttigs
3

;nI.\.\ /;.\a
I h+C It

'I1

-.r r-

(.iross Iisciil dclicit IS tlic iiiost coaiprcliciisi\c iiic;isiiic oI liscnl

itiihlancc as it oicludes ititcnial and c~~crtiiil
borrow ings of ( 'ctitral Oovcniiiicnt
111 addition to Ihc conventional b u d ~ c t dcticit
z~
It stood at 5.9% ofGD1' as pcr
the re\-iscdcstiniatcs Ibr 1905-06 Though thc liscal dcticit as a pcrcc~itagc01.
GDP has sl~o\vtia substantial drop siiicc l'NO-9i when it had pcakd at X.~'!.,I. I I
q -

still Iiovcrs in the danger zonc High fiscal dclicits whcn financcd out olcstcnial
ncccssarily inipl!. incrcascd dcbt burden as w l l as iiicrcascd dehi
smicmg. Fiscd dclicits tinniiccd out ofthc intcnial borronings from thc public.
intcrcst r a t s nnd croug out pri~atcinvcstnicd in productive arcas Fiscal
~~lcn\nsc
dclicits tinanccd out o f borrckings iron1 RBI can bc inllationa?. If such highcost borro\vngsarc to bc uscd only for intzsting in wiproductivc arcas. \vhcrc thc
returns arc vcn lo\\ or ncgativc. such as in loss making PSUs. or on ivagcs and
salaries of Govcmnicnt ciiiplnyccs. subsidies. defcncc ctc . the situnt loti becomes
iicll nish unsustiinablc Rcchlcss'borrotvings. among othcr rhings. 1iai.c Iatidcd
countrics in dwp financial crises. The bursting of' the Mcsican bubble and the
coriscqucnt itisol\~cn~
of the Mcslcan Gowmnmt is a cnsc i n point. India too had
Imdcd itself in alniost a siniilar prcdicanicnt during thc ccononiic crisis of 1'10 I
\ v h its fiscal deficit as a pcrccntagc of CDP had touched X -3'XI and it \\as faccd
\I i t h the prospcct of defaulting on its intcniational conimttmcnts All ~CCCSSto
cstcnial commercial markets had thcri bccn dctiied to India and the intcniational
linaicial conuiiunrty's confidcnccT n our nbiiit:. to manag our finanax \\as at nn
all tinic lo\\
~OUI'CCS.

_- 9 -3 . 0

The prccariousticss of the countn.'s linanccs is also brought out

by a look at Anncsc 3 2 which spclls out the tinsncing pattcm ofthc Eighth Plan
Public Sector 6utla\.. Thc realization of the targct ofpublic'scctor cspcnditurc of
Rs.J.?S.O(jOcrorcs during the Eighh Plan cruciall\. dcpcnds on the mobilization
ol'adequatc sa\.itigsfrom I\ ithin thc cconom~.(466%). contribution h m public
sector cntcrpriscs (31 1%) and balnncc lroni current rcvcnucs (X l " 4 . Trends.
ho\\.c\w show that the Balanccj fmm Currcnt Rcvcnucs haw bccn negative in the
past 7 years (scc Atuicsc 35.7) Thc pcrfomiancc of tlic Dcparlnicntal Enterprises
has also bccn vcn. dismal, .4 largc gap is o b s c n d bct~vccnthc amount of
rcsoitrcc's targctcd to bc generated b\-'the Public Scctor mid thc actual contribution
lroni llic Public Sector durins thc 7th plan A number of Public Scctor Enterprises
continqc to bc in thc rcd and Railways. inspitc of gcticration ofsurpluscs. continuc
to dcpcnd on thc ccntre for budp%ry support No appreciaMc incrcasc is obsencd
i n tlic ralc of savings. ivhich appcaf to havcrcachd a platcau. Dclicit filialicing
as a sourcc of financ'c for thc Eighth plan had bccn targ,ctd at 4 6"o ol'thc total
rcsourccx but one can only be sccptical about this target for the rcasons nientioncd
above. TIE tigurcs lor thc hrgctcd and thc realized aiiiount oldelicit financinS for
the 7th plan only go to.confimi our apprchcnsions.

ji 9
The expenditure on pay and allowances of the civilian
emplo_veesi s a percentageof revenue receipts, revenue expenditure and CDP
is observed t o have declined steadily since 1960-61 (Scc Anncxc 35 f))
Howvcr. bctrtccn JOXC-WC~and lcN3-'~4.cupcidilurc on \tagcs and salarics 3s ;1
pcmntagc of'rcvaiuc rcccipts sccnis to ha\ c mcrmscd s o n n h a r lion) !0 -3% l o
I0 5% Thc cqxnditurc on \iascs and srrlarics as a pcrccntagc of rctwiilc'
cxpcnd~turcon thc dhcf hard has fallen froni a Ic\cl of 16% in I OXS-%O to I 3 t a " l ~
i n 1003-04 This indicatcs that othcr itiiiis of rc\cnuc cvpcndituic durinc this
period g e u faster than thc cspcnditurc on \\ages and salsrics

3s 10
Our examination of the salaries of Central Government
employees over the years has shown serious erosion on account of inflation.
espechlly at the higher levels. The extent o f erosion at the Secretary level is
as high as 71 ?" Comparisons \\ 4th thc othcr scctors likc thc prn ate scrtor and
the public sector s b \ s that Ihc got cninicnt cmployccs haw bccn lcft Ik behind in
thc raw and ha\c lost thcir position of'prccniincncc
3s I 1
We also observe that the preentage increase in salaries at the
vnnous levels in government between 1J.86 nnd 1.I.% is evtn lower than the
percentage increase of per capita income during the same p e r h d (Scc table
below) whrk the pcrccnlage iiicrcasc b&ccn I O N 6 and 1996 in pcr capita NNP
at currcnt priccs is I78 E. that bct\\ccn )hc cmolumcnts (Basic+DA+lR) of thc
poon. LDC. UDC. Assistant. Group A JTSjand Sccrctay is much laser and ho\crs

betttecn 107 3% and I74 7% Thc pcrcentagc tncrcasc in per capita inconic
measurea thc at cragc rncrcqsc of inconws in thc countn Surel?.the incrcasc in
LIKXY~CSof thc Govcmmcnt cniplo! ccs c m o t bc lcsscr than the a\ eragc tncrcasc

Incrcasc in Pcr Capita Nct National Product and EliioIuiiicnts of

G o v c m m t Employccs during 1986 and 19%

I tcms

I I I080

2.

Pcr Capita Net

National Product
h a t cumnt prtccs

2')62*
( I9%0-%7)

Eniolumciits
(Bnsic+DA+IR)
(i) Peon

I I I006

3.

Pcrccnl
lncrcasc
4.

X237**

178 I

( I 904-95 )

I74 7

( * 4 t p t i , - ~ r,t ~ j t l i , ~

f ;oi.vriitiimt I,,

pi

35 I 2
Whcn \tccraniiilcthc argunmt rcgardiiis Govcmnicnt's capacit?
to pay. tlicrc arc two cxtrcnic opinions that iiccd to bc considcd. It can bc said.
and it has bccn said by thc rcprcscntativcs of thc cinployecs. hat thcrc really is no
limit to thc Govcmnicnt's capacit!. to pa!. Govcrnnxnfl can raise rqvcnuc h!
plugging of various loopholes, it can cut down on othcr non-cssential itcnis of
cspenditurc and \then cwrything clsc fails it can print rnonq.. Ernplops also
point out that scait\. of rcsouicesdocs not sccni to inhibit thc Govcrnnqt \\-hen
it iidulgcs in various gaiiics of populist jirofligac? . Its pursc-strings tightcn onl!
\vhen thc qucstion of its owi eiiiployccs is raiscd

->i
- 13
Another argunicnt gi\ cn b! the cniplo! ccs is that Governmait
used to spend almost one-hrd of its rc\ cniw cvpcnditurc on ivoges and salmcs of
its crnplayces. now it IS down to 13% Thc Go\ cmment's arguntcnt is that this is
nuslerdlng and 13% itsclf is too high a ligm of c\pciiditurc on cniployccs. that the
liscal d e E i t IStoo steep and has necesml> to bc brought down. that Go\cnuncnt
IS unable to d u x : its other items of expenditure in natiirc and thc major scopc for
rduction tics in the cspcnditurc on crnplo\ces
Our .+pnncch

35 I4

We have tned to stcer a nuddlc course betwen the t\o cstrcnm

I t is true that the Government is facing a dificult budgetary situation Thcrc

IS need topnme the fiscal d&it
as also to kcep thc rate of inflation iil re;lscm;lblc

le\cl A t the same time, lack o f resources cannot be cited as an unalterable

reason by denying the employeertheir due. Government itself i s partly to
blame by its act of lifting the lid off private sector emduments. I t has also not
shown circumspection while approving wage revisions in the Public Sector
probably due to pressure of employ& unions. In the case of citfiaim highwage islands like airline pilots. Government has gone berserk. With this
unenviable retord, i t can hardly preach abstinence and forbearance to its
employees.

3 15
What ISnmkd ISs t a t d p ruld \ isioii Our lcadcrship niust
mi for a selc of govcmruxr: i n \ h c h thc rolc ofducct state involt cnicnt in the life
ofthe citlmuy is rcduccd to the niinimuni Wc should have lcucr but better-paid
cniploys Wc haw suggcstcdccrtlliii m c ~ ~ s m
fors rightsimg of the Govcmnient
inachincn I f thc Go\cninicnt is scrioiis about containing (tic deficit it will
irnplaxnt chose tcmmnmdations ~ i d\iigour and smglc-niindcdncss I n case the
numbers can be brought down, Government can very well afford to pay its
employees a decent salary

I. RECEIPTS
I . devenue Rectiots

2 6 . m 54.954 6c.030

u.pa

15.453 91.083 110.191 130.345

2. h D h 1 R w i o t s
l i 1 Aecoverv of loans
2.773 5.112 6.021 6.356 6.191 6 . N 7.411 7.048
Ii i1 Other recsiots Idisinvestment
of S b r e r of PSYs ml issue of
Bands 1
..
Ld31) 1.961
-48 5.907 1.392 5.001
l i i i l B o r r q i n r r and Other l i a b i l i t v 16.542 33.285 29.469 27.862 49.297 56.143 56.410 55.686

..

-1

Total

---------11.EXPENOITUAi

-----..----1. Revenue

Exoandi ture

i i 1 lon-Plan ilwndi tur6

l i i l Plan Exoeaditure

32.Sib

73.516 82,292 92.?02 108.169 i22.112 143.522 161.820

6G.if6 67.216 72.925 83.321 93.841 113.099 128.353
6.907 12.620 15.014 19.ill 24.848 21.265 3t.123 33.467

27.;;;

2. Caoitai lwoanditure
ii1 Nos-Flrn Eroenditure
I iiI Plan Exoenditure

Total

- I1

---------iII. Revenue Deficit 11.1

- 11.11

N. BudoQtrrv B e t i c i t I1 -111

VJ.

5.289 16.362 16.262 18.574 32,716 31.029 3;.331

5.316 11.347

Prirarv Oeficit V
I - lot Patrsnts) 14.346 23.1f4

31,415

i.6N

6.576

9,729 9,098 23.516 13.655 iZ.OlC

2.266

6,8%

tf.311 1@.%0

961

Budaetarv D e f i c i t

i.6

2.1

1.1

1.1

1.4

0.1

G.i

0.5

6ross Fiscal Osficit

8.3

8.3

5.9

5.7

7.5

6.1

5.9

5.0

Prinrrv Deficit

5.5

4.3

1.6

1.3

2.9

1.4

1.1

0.2

Aaount t to the

Aaount

Total

t o the

Aaount

to the
Tot, 1

Total

at ore-Plrn rates of taxes

2 , Contribution o f Public Enterorises

35.405

19 7

3 , MarLe t bor r 01i nos

30,562

17.0

14.~3

1.3

17.316

10.0

:
:

1.321

4.1

1X.055

40.6

26.200

6.0

I
I

,
I

5 . Provident funds

31.1

4 # Sna I 1 savinqs

148.140

iOi.226

57.8

6.

Hisc. caoitel receipts l n e t i

ii.618

7.0

I
I
I

7. Tera Ldan froa Financial Institutions

4.639

2.6

8. Inflow of Foreion resources

16.G00

10.0

16,124

9 4

28.700

6.6

9. Geficit financinqluncoverid qao

14.000

1.6

2S.tS6

1S.d

20.000

4.6

16.702

74.8

31.391

17.6

0.0

0.0

i?.OOSI

-1.1

0,o

10.

lddit ions I respurce aobi I irat ion

il. Ooeninq surolusldeficit

2917

-1454

-9163

-1365

-10528

1991-92

-6060

-2940

-9000

1992-93

-2494

2 20

-2274

1993-94

-15713

- 1709

-17422

1994-95

-13370

-5722

- 19092

1989-30

-437 1

1990-9 1

Includes ARM committed at CMs level, a Dart of

which may relate to SLEPs also.

Source: 1. I n d i a n Public finance S t a t i s t i c s , Min. o f Finance.
2 . Annual Plan

1995-96

Note: 1. (his docs not in:;ude the emenditure irlcurred on D ~ and

V a l l o m t s of tnrtlovees
of the IndllII lljjloffs abroad and that o f Union l e r r l t o r r Adhlnlstrdtlons.
2. lhls doas not i n c 1 d e the er3endi:ure ikcurred on Produrtivitt i i n k d 3onus;Adhoc Bonus.
H o n o r a m 3rd hcarhrtr: d tsrrtd Luke.
Source: Brochure on Ptr and altodances of ;antrat Covt. Civilian trolorees.
Fir Rcscdrch ilnit. Wln. of iiarnce.
325

(Rs. crores)

.YOJ-86

2.745.63

829.92

1.9'15.51

13.53

7986-87

3.436.87

830.97

2.605.90

36-01

i567-68

4,087.30

983.26

3.iG2.64

i9.06

1988-89

4.504.55

1.171.47

3.333.38

7.44

1989-90

4.918.00

1.305.92

3.612.06

8.36

i990-91

5.094.34

1,483.92

3.610.42

-0.05

1991-92

5.626.38

1.539.19

4.0.17.19

11.82

1992-93

6.337.48

2.133.07

4.204.41

4.14

1393-94

7.041.75

. 2.445.34

4.596.41

9.32

12.49

14.46

11.56

nny

A n n u a l corcloound qrowth
t-ate ( X ) 1985-86 t o
1993-94

Saur-ce: 1. P a y C e l l . M i n i s t r y o f Defence.

2. Pay Research U n i t . M i n i s t r - y o f Finance.

417.00

j2.2

3.5

2.1

754. GG

25.0

21.9

3.1

1186.00

21.2

26.3

2.0

1886.GO

25.4

26.2

2.6

ii51.11

23.0

19.1

2.2

5422 25

19.3

16.0

i.3

6iP0.25

18.1

14.3

2.;

7203.G2

1S.5

i3.6

2.4

8129.63

i8.6

i5.0

L.J

3 G l S . 62

il.2

14. I

i.2

1GG26,62

i8.2

il.6

2.1

I I I10.42

i6.a

i3.5

2.6

1 3Gi: I . 13

11.6

14.17

2.1

i4iX . G i

19.5

ll.6

2.1

ii.17

Note:

15.6G

"

14.84

This includes HZA. CCA. O T A . CECA. Chi Idrsn Education allacance.

Reinbursvielit o f nedicel iharses and T u t i o n fees, LTC, TraiellinJ allowani?
and other conoensatorr allocance but does not lnitude the enoenditbre
incurred an oa'r and allonaricej of emolavees of the Indian Mission$
abroad and that o f Union isrrltories or the e m n d i t u r e Incurred on
on oroductivitu linked bonus;ad-hoc bonus. H m r a r i u r and entashmertt d f

earned lsare.

Source: t . Brochure on Par and Allonances o f Central Goit. inolovees

Hinistrv o f Finance.
2. tludqet Documents 01 the Central Corernmsnt.
323.

36

7
Genera I I nt roduct ion

30 1
Thc staff sidc ofthc National J C V 113\c strongl! urgcd that fair
comparisons ulth public scctor undcrtahings iiim be rccogniscd as a lcgitiii~atc
pnnciplc of pa! fiution The dciiiand lot fair coiiiparisoiis dcrn es its thnist l h i i
thc docmnc of cqual pa! for cqual \\o1h as ciishriiied i i i the Coiistitutioii of India
The staff sidc hale confincd thciiiscl\cs to a conipartsoii \\ ith thc Public Sector
Undertakings as thc sole basis tor li\atioii ol' Go\ criiiiieiit salarics It 113s bccn
argucd that thc Ccntral Go\ criinieiit ciiiplo! ccs \\ere up to the Second ('PC at an
adiantage coniparcd to their couiitcrpnrts i n thc Public Scctor and it is onh sincc'
1958-59 that \\ages of Ccntral Go\ cnuiiciit cniplo\ws ha\ c started lagging bchind
The n a g c agrccmcnts 111 all public scctor undcnahings arc go\cnicd b\ the
dircctn cs issucd b! thc Department of Public Entcrpriscs as thc Go\ cmniciit of
India is thc majorlt!' shareholdcr in thcsc undcrtahings It is. thercforc. thc
obligation ofthc Go\crnmcnt to remunerate its cmplo!ccs. a majorit! ofit honi arc
also industrial workcrs. at ratcs \\Iiich i t b! itself laid dorm for its public scctor
cmplqws Undcrl!fmg the stafi'sidc's plca for fair comparison is thcir dcniaiid for
absolute parit? \tith Public Scctor cniplo\ccs at thc lo\\cst Ic\cls
At this point \\c \\is11 to claril:\ that our tcniis of rcfcrcncc do not
explicitly require us to stud! ttic pay structiirt and senicc conditions of public
scctor undcrtakrngs We haic includcd this chaptcr in thc report to confirm that thc
issucs raiscd b! thc staff sidc ha\c bccn iiioqt seriousl! cxainiiicd b! us We

30 2

generally accept fair comparison as an essential principle of pay fixation and

also concede that there is a need to maintain fair relativities vis-a-vis nongovernmental sectors, be it the public sector o r the private sector.

The dcniand Ibi parit! \ \ i t l i the Public Sector is houc\cr difficult

to coiicedc as \\c fccl that the lob Lotitent atid cond1tioii.s of' scr\icc i n tlic
Go\ crnnicnt and public scctor arc not ncccssaril! tlic same Tlicrc arc csscntirll
diflercnccs bct\\ccn the t\\o sectors Most PSLs ha\c bccn set up w i t h a
30 3

')iir

I ~ * I ~ N I ~ I I Ij(,
I,4
~~

111 spite d t h c aboic t~~cniioricd

Ictors. \\c hat c tricd [Oidcritifi
sonic broadl! coniparabk posts and coninioii catcgorics \\ i t h i n thc public scctor
and thc Gotcnmient A dctailcd qucstionnairc n as circulatcd to all Public Scctor
Undcdings clicitirig inlbmiation on thcsc catcgorics 0 5 undcrtahings rcsporidcd
but onf! 29 rcsponscs pro\ idcd full information 01' thcsc. I 4 w r c fioni profit
niaking undcrtahings and 15 from thosc sut'fcring losscs Siiiiultancousl\
Managenicitt Re\ clopnicnt Institutc. Gurgoan U P S atso ciigascd to cam out a
stud! on this subjcct

i
tthh

S r r lor - / l i t ,

Broad Observations

j(, 5

The public scctor has varied connotations depending on thc

contcsi in nhich 11 is used Whcii defined most IiberalI!. it could include all
actii'itics fundFd out of the Go\.crnnient budget including public administration.
lihc Rztil\t a! s. Posts and Tcicconi. all statutop
dcfcncc. d e p ~ i e n t aundertabrigs
l
corporations and companies at the Centre and h e States The public enterprises
sun c! refers to the non-departmental undcrtakings at thc centre as public sector
entcrprises and escludes banking units from the definition The Ccntral
Go~emmenternpiol\wshave referred to all non-dcpartmcntal undertakings as $4ell
as banks as public sector enterprises We too for the purposc of our cnquin
proposc to interpret thc evprcsston "public scctor cntcrpriscs" to include a11 non
dcpartmental undertakings at the centre including banks
30 G
Wc obsen e that thc pubhc sector is unportwt bath iii tcmis of rhc
siiz ol'nianponer emplo!rd in it and thc S I X of capital invcstcd According to thc

public cntcrpriscs suney. thcrc ncre 245 public cntcrprises (escluding banks) at
the Ccntrc i n 1992-93 and the capital eniplo\cd b!. thcsc cntcrprises \\'as of the
order of Rs 1.46.071 I0 crorcs The number of regular employees employed by
these enterprises stood at 21.37 lakhs. As compared to this. thc number of'

ciitcrpriscs at the centre in 1984-85 stood at 207. thc capital cmplo!cd \\as
Rs 36.000 crores and labour crnplo!cd 2 I 1 lahlis Thus i t is obscncd that uhilc
the number of public entcrpriscshas incrcascd b\ -1% units in tlic riitcn~cningpcriod
and capital cmployxl has gone up by four tiincs. tlic labour cniplo!cd in thc public
sector has s h m n onl! a marginal iiicrcasc

-30 X
Large dispantrcs arc obscr\ cd to C\ISI i i i the total cniolumcnts 01'
the ciiipl~ccssen iiig in the Public Scctor and Gcv crniiicnt of India At the loner
Ic! CIS. in a largc nunibcr o!' PSEs. the total cniolimicnts drann b\ the catcgon ol'
pmis' mcsscngcrs IS niorc than that dranii b\ tlic pco~ii n Cciitral Got cninicnt (scc
Aiinc\c 3 0 I ) At thc highcr Ict CIS sa! the ciiln gradc officers or the highest
functioriq . thc Ccntral Go\ crnniciit Eniplo! ccs arc seen 10 ha\ c an edge o i cr the
Public Scctor ciiiplmces as on 1 I 95 (SCCAnnc\c -30 2 3)3 and -30 4) At the
loucr Ic\cls the disparities arc causcd priniaril? h\ thc higher basic pa\ g1\c1ib\
the Public Scctor Undertakings This is a result of the lrcqueim of\\agc re\ isions
i n Public Sector EntcrprJscs as \\ell as tlic tic1 that the IDA prior to Jul\ 05 111
PSEs \\as morc lucratnc than thc ('DA i n Go\criimcnt at the lo\\cr Ic\cls Thc
total cniolumcnts at tlic highcr Ici CIS arc found to be highcr i n Go\ crniiicnt
pnmanl! bccausc the CDA foniiula adoptcd b! the Govcniment is niorc fmourablc
to thc emplo!a.s at the top than the IDA formula adoptcd i n PSEs This is bccausc
compensation for price incrcasc undcr CDA is linkcd not lust to thc Cdiisumcr
Pncc Indc\: but also to the pa!. unlihc in ID.4 .4t this point it ma\*bc clarificd that
\\hilt this \{as the position as on 1 I 05. b\ a rcccnt ordcr No Z(iO)/XO-DPE(WC).
dated 10 JuI! . 1095- the Dcaincss Allouancc forniula i n PSEs has also bccn ItnAcd
to CPI as NCII as to pa! in similar fashion as in tlic Ccntral Go\crnmcnt \\ c f
1 4 0 2 This has rcduccd tlic cdgc the Ccntral Goi.cmmcnt cniplo\ ccs cnjo! cd at
thc highcr Ic\.cls , Additionally. it ma! be ntcntioncd that cvcn bcforc this changc
in the Industrial DA ti as effcctcd i n thc PSEs. llie "iin1inii;cd" cntcrta~nnicnt
allo\\rrncc aiailable to tIic CEOs in PSEs morc than compcnsatod for the
disadi antagc in the dcanicss allouancc and ga\ c him a relati\ c ad\ antagc in tcrnis
of his total pa! pachct This obscnation is full! substantiatcd b! thc MDI stud!
\\hich has rcponcd that the CEOs in PSEs arc eiitillcd to s a c r a l allo\~anceslihc
club nicnibctship allo\\ance. credit card aliov ance. gucst entcnainnient allouance
etc. not aiallablc to Sccretarles in Go\cnmicnt of India Thc study after
yuantif\ing the non-nioncti/cd pcrAs has found that uliile a <'EO in thc public
scctor costs Rs 37.262 pcr month on aii a\ cragc. a Secrctan to Go\ cninicnt of
India costs Rs 43.X I7 pcr month
l ~ r c q i w i i l\ ,J/ J J C I ~
I
t ~ ' l l \ l ~ ~ l l \

30 1)
We obser1.c that the pa! re\ istons i n the public sector arc more
licqucnt than that i n the Go\cmnicnt Beginning 1073. four uagc agrecnicnts had
bccn concludcd i n thc public sector and irI I903 the filih round of \\age negoliation
330

.<Ill,..I l l , '

A. l r ~ ~ . l l " l l l , ~

1h*,mrc.rc
I !/I>~r,llic'*.

-30

lo

\V:ihc ticgotiat ions i i i the public sector tahc p l u - tlircwgh ;I s\ stciii

ol'collcctivc bargaiiiiiig. unlihc the ('cotral (iovcniinctit uhcrc ~ a g t.c\
c ISIOIIS arc
bawd on the rcconiiiiciidatioiisol' Pa!. ~oiiiniissions.\Vc obscnx that the datc 01.
cmuilcnccliicnt ad cspp 01' tlr \vase agrwnicnts bciwwn ths csccu~i\~cs
and thc
iion-csccutivcs in cach PSE varies (See Aiiiicsc -30 4 ) Such dtl7krciiccs i n the
tvqgc agrccniciits (k'tivccn c~ecuti\~cs
and non-cswut.ii%salso cause problems UI
iiiattcrs of pa\. lisatioii \vhcn the non-csccutivcs arc proniotcd to the crcciiti\ c
cadrc I n the case ol' uorliiiicn. \ihtch is the iiiiioiiiscd 51311 iiiidcr (lie m i cwcutivcs. thc management o f the Cciitral PSEs ha\ c' \ idc order No l ( 7 VXODPE(WC) datcd 12.4 0 3 aiid I 7 I 04 nojv bmn given lull autotiom!. t o ciitcr i n l o
wage iic~wtiations
subtat to the proi'iso that thcrc IS no incrcasc i n the labour cost
pcr ph!sic;ll umt ol'lhc output. nq iticrmc i n tlic budgetar?.supporl lor niccting the
cnliatlccd liability on account of thc rcviscd \\ages and no Consequent iiicrcasc i n
the administcrcd priccs. \vhcrc\cr such pricing exists In thc case 01' ofliccrs.
holvcvcr. DPE wjh the apprmal of CCEA issues rcwscd "~iiodcl"
.scales of pa!
corrcspondins to thc cststing scalcs of pay Aftcr issuing tlic modcl scales. tlic
Ofliccrs' Association is consulted on thcsc pa!. scales cithcr b\ the ~lnnagcmcntor
t niodcl
the Govcnunent. The Managcnicnt of the PSEs IS then requird to a d ~ p thc
scales of pay tvith thc approval of the Co\~crnincnt DPE lids rccciitl!. in Jul!,. 95
issucd the reviscd scalcs of pa!. for the ofliccrs. Whilc profit-making PSEs arc
allo\vcd to adopt Lhcsc scalcs of pa!. strnighta\va\.. PSEs making losscs i n the past
-3 >cars rcquire the appraal of the Go\.cmnicnt. which iiceds to bc satislied
rcgarding how the additional rcsourccs for \vagc reiwon.are to bc generated In
the cage of units rekrrcd to BIFR. pa!' revision and grant of othcr bcnclits is
allo\\donly if it is dccidcd to rcvi\ e thc unit and the revival packngc includcs tlic
enhanced liability on this account.

36.11
In the public scctor. t\vo s!stems of dearncss allo\vancc arc
prcvalent at prescnt. namely. the IDA and thc CDA. Banks follow a distinct
fomiula of their own for Dezuncss Allo\vancc. Out of thc 245 Central Public
Scctor Enterprises (escludmg Banks). 107 arc on thc IDA pattcrn whilc JX
continue to bc on CDA pattcrn . Approximately. W%,of'thc total 22-Iakh \wrliforce in all thcse PSEs arc on IDA paltcm Thc IDA pattcrn in PSEs used to givc
DA fu,Rs.2 per point incrcasc beyond XOO \v.c.f. -1.1 39 Ho\vcvcr. this position
has now anne to be changcd and vide BPE ordcrs datcd 10th July. I095 and 26th
July. 199s a new DA forniula on lines siniilar.to thc CDA has been rmplenicntcd
for both csccutivcs and non-csccutivcs

36 12
Dcarncss Allo\\ancc i n the public sector IS no\\ paid for thc
incrasc in AlCPl abo\ c clic quiutcrl! aide\ a\ erase of I009 as on 1 1 02.10 \\ hich
thc rcviscd pa? scalcs arc rclatcd Thc pcrcciitagc it~crcasci n the AIC'PI IS
calculatcd on the base of I OW and iicutralisattoii 10 ciiiplo!ccs i n dill'crcnt pa\
ranges IS made at tlic folio\\ iiig rates -

\[!(I 3lsl!~-s"slll!I \[!,I

Wc obscnc that I1111 ('onil>cnbalon Allo\\aiicc (H('.A 1. is p i i d

a fcu PSEs I t also varics across tlic public scctor aimpriscs In ccrtaiii
Oil conipaiics likc HPCL and IOC. both Hill Conipcilsaoq Allowaiicc aiid Wintcr
Allu\\aiicc is paid for a pcriod of'0 months u Rs 400 pcr month lor olliccrs and
Rs 200 pcr nionth for non-officers In baiihs likc Indian O\*crscas Bank. Statc
% a d of H!dcrabad and LIC. HCA is paid as a pcrccntagc of thc basic pa! and
\ m c s according to hcight bctwcen Rs I 10 at thc lowest Icvcl to Rs 000 at thc
highcst Icvcl In Ccntral Governmcnt this alloi\ancc varies bctwcen Rs 5 0 at thc
lowst Ic\d and Rs I50 at thc highcst h c l Thus HCA as payable in certain Oil
coiiipanics and Banks is iiiorc attractnc than in the Ccntral Goicmicnt as oii
I I 0 5 (Scc Anncvc 30 6 )
.30 15

oiil> i n

36 I 0
Thc niajor PSEs lihc BHEL. SAIL. NTPC AND Oil Group 01'
Conipanics maintain their own dispensaries and hospitals for trcalnicnt of thcir
cmplo\.ccs and dcpcndents In other Undcrtakings. cmplo\ws at ail thcmschcs of
rhc scniccs of ESI hospitals Thc cntcrprises which ncithcr haie therr o u n
dispcnsanhospital nor arc cot crcd b? the ESI providc for rcini6urscmcnt 01'
niedical e\penscs subject to certain limits For domicilian trcatnienl. cmplo! ccs
arc alloucd rciniburscnicnt of actual cvpciiscs subjcct to a ceiling of onc monlh's
salan coniprising of basic pa! and dcarncss allowance
In thc casc of
hospitalisation reimbursement of actual cvpenscs incurrcd for trcatnicnt from a
hospital recogused b! the cntcrprisc concerned is permitted
Ho\\c\ er
rciniburscmcnt is rcstrictcd to the ratcs prescribed b! thc All India Institutc of
Medical Sciencc. Net\ Dclhi when trcatnient is a\ ailed from hospitals other than
thosc rccogniscd b!. thc cntcrprisc conccrncd
36 17
The age of superannuation for all catcgories of cniplo! ccs in niost
of thc undertakings is 58 !rears However in some of the enterprises like India
Tradc Promotion Organisation. Food Corporation of India. Nuclear Power
Corporation of India. Rural Electrification Corporation Limited. Mahanadi Coal
Fields the age of supcrannuation is 58 years for Group 'A'.'B' and 'C' enipio\ecs
and 60 years for Group ' D employees as is the case for Central Government
employees

36 18
Gratuity is payable to an cmplo>*eeon his superannuation or on
death The rate of fiftcen days Mages for cach conipleted year of sen icc is found
to be fairi?. uniforni across PSUs for rctircnitnt gratulty Siniilarl!.. the eligibilil!
limit in tcrnis of niininiuni years of scmicc required as well as thz ceiling on
retircmciit gatuih' is fairly uniform and is fiscd at 5 years and I Iakh in most
PSEs In Govcrnmcnt ho\vever. the ccillng on retirement gratuity has bceh reccntl!
increased to Rs 2 5 lakhs Similarl!.. thc cligibilit!.. as well as thc rate of dcath of
gratuity is fairl!, uniforni across thc PSUs as well as governnicnt (Sce Anncw
30 7)
36 1')
Some 1anation across PSEs is also noticed iii thc cniplo?cc's and
cmplo! cr's contribution to thc pro\ ident fund The contributions from thc
eniplo!*er and cmplo!cc arc observcd to \ a n bctireen X 1/3'%, of pa! to I 0% of
pay Pay I s \ ariousl!. intcrpreted to include fiwd DA and/or variablc DA (Scc
Anncw 30 8 )

I ;droram
1ia.tmwr~wt

.5' li,'llr,

l 'rrliiiitI I ~ III I

30 20
A hltdcl Volunt;in. K a ttctnciit Schctiic li)r the Puhlic Scct:w
ciiipioyccs \\;is notilied tl\. ( iovcriiiiicnt o f I n c h on Stti Octohcr. I OXS \\ 1111 thc
priiiian' objccti\.c of pruiiiiis surplus iiianpo\\cr and t o ciisiirc optiiiiisation ol'
1ahO)ur use i n the \'anoils I'SI3 In gcticral. rcgular cniplovccs ol.(*ciitr;il PSEs tvlio
1im.c coniplctcd at least ten \cars of scrvicc or havc attained 40 y c m of agc arc
eligible to smli voluntan. rctircniciit Bcnclits accruing to cniploycss undcr t k
sclicnic includc cs-gratia payniciit cqutvalcnt to I '/2 months' cniolunicnts
(basic+DA) for cach coniplctcd \car ofscrvicc or thc nmthly cniolunicnts at the
ttnx of.rcttkment multiplied by the balancc months of scnicc left bcforc noniial
datc ol'rcuircnmt. i v h i h c r is lcss. Tlx: ohm statuton. bcncfits such as pro\.tdcnt
fund. gratuity and cncashmcnt 01- l a v e as pcr cntitlcnlenf undcr thc rules \\odd
also bc adniissiblc to cinployccs scctiiiig voluntary rctircnicnt Sonic of thc
cntcrpriscs also nicct travelling cs:spcnscs for die ciiiploy and his famil\-as pcr the
ciititlcd class to thc placc whcrc tic intends to scttlc do\w Finall!. i t i s thc
nianrrgcnicnt of tlic coiiccnicd PS U \vhich cii.io\.s thc discrctioii \I hctlier to Sraiit
\,oliuiwrctircnmt or iiot As pcr the available infoniiation I .76.054cniplo:.ccs
optcd for voluntary rctircnicnt till 3 1 3 . 0 5 since tlic inception of the sclienic in
19x8 I n Govcmincnt ho\vcvcr one n c d s to havc scncd for at lcast 20 \cars to
be cligtblc for voluntan rctircnicnt

30 2 I
Tlxre is no t i i i i l i x l n i t ~ i n thc proniotion polic\ across thc I31ious
PSEs Pronmion poliq IS obser\cd to dilfcr across gradcs and categories of'
a n p l e ox Whilc i n sonic gindcslctitcrpriscs. seniorit\ -cum-merit IS lh11onc.d as
a critcrm !'or tiiix-bound proiiiotions or promotion to \ acanc! - rclatcd p s i s . 111
others selcction o r fast track promotions arc fa\ourcd to rward and nwti\ ate
cmplo!m l'm outstding pcrfonnancc In w n ~ * m IDcrforniancc o!'the c!iiplo\ ecs
IS e\ aluatcd on the basis of annual confidential reports as '1 thc ~ a s of
e thc Cciitral
Go\ cninient

CONCLUSION

36 22
In conclusion it must be reiterated that we cannot concede the
principle of parity as between Government and the public sector. Making a
fair comparison, we have tried to bring about a certain change in the
relativity, in order to improve the condition of Central Government
Employees. Thcsc nieasurcs include the folio\\ iiig
a)

b)

In order to cnsurc that Cciitral Govcmincnt Emplo\ecs do tioi

suffcr froni increase in cost of living duc to non-rc\ision of
salaries for a dccadc or rnorc. we have suggested a permanent
pay body which would recommend annual revision of
salaries Altcmatircly. w havc rccommcnded a fi\cd I 0 !ear
period for thc application of thc rcconlmcndatioiis of SUCCCSSI\ c
pay bodics In that case. it has also been suggested that there
should be a conversion of DA into Dearness Pay which should
be counted for all purposes every time the cost of living in&\
goes up by SO'%,

fWA has been changed to r percentage basis. In A- 1 cities i t

bc 30%, ofthc niaxiiiiuni of thc scale

w i l l iiou

334

I ;droram
1ia.tmwr~wt

.5' li,'llr,

l 'rrliiiitI I ~ III I

30 20
A hltdcl Voluiit;in. K a ttctnciit Schctiic li)r the Puhlic Scct:w
ciiipioyccs \\;is notilied tl\. ( iovcriiiiicnt o f I n c h on 5th Octohcr. I OXS \\ 1111 tlic
priiiian' objccti\.c of pruiiiiis surplus iiianpo\\cr and t o ciisiirc optiiiiisation ol'
1ahO)ur use i n the \'anoils I'SI3 In gcticral. rcgular cniplovccs ol.(*ciitr;il PSEs tvlio
1im.c coniplctcd at least ten \cars of scrvicc or havc attained 40 y c ~ of
s agc arc
eligible to smli voluntan. rctircniciit Bcnclits accruing to cniploycss undcr tltc
sclicnic includc cs-gratia payniciit cqutvalcnt to I '/2 months' cniolunicnts
(basic+DA) for cach coniplctcd \car ofscrvicc or thc nmthly cniolunicnts at the
ttnx of.rcttkment multiplied by the balancc months of scnicc left bcforc noniial
datc ol'rcuircnmt. i v h i h c r is lcss. Tlx: ohcr statuton. bcncfits such as pro\.tdcnt
fund. gratuity and cncashmcnt 01- Icavc as pcr cntitlcnlenf undcr thc mlcs \\odd
also bc adniissiblc to cinployccs scctiiiig voluntary rctircnicnt Sonic of thc
cntcrpriscs also nicct travelling cs:spcnscs for die ciiiploy and his famil\-as pcr the
ciititlcd class to thc placc whcrc tic intends to scttlc do\w Finall!. i t i s thc
nianrrgcnicnt of tlic coiiccnicd PS U \vhich cii.io\.s thc discrctioii \I hctlier to Sraiit
\,oliuiwrctircnmt or iiot As pcr the available infoniiation I .76.054cniplo:.ccs
optcd for voluntary rctircnicnt till 3 1 3 . 0 5 since tlic inception of the sclienic in
19x8 I n Govcmincnt ho\vcvcr one n c d s to havc scncd for at lcast 20 \cars to
be cligtblc for voluntan rctircnicnt

30 2 I
Tlxre is no t i i i i l i x l n i t ~ i n thc proniotion polic\ across thc I31ious
PSEs Pronmion poliq IS obser\cd to dilfcr across gradcs and categories of'
anple
Whilc i n sonic gindcslctitcrpriscs. seniorit\ -cum-merit IS lh11onc.d as
a critcrm !'or tiiix-bound proiiiotions or promotion to \ acanc! - rclatcd p s i s . 111
others selcction o r fast track promotions arc fa\ourcd to rward and nwti\ ate
cmplo!m l'm outstding pcrfonnancc In w n ~ * m IDcrforniancc o!'the c!iiplo\ ecs
IS e\ aluatcd on the basis of annual confidential reports as '1 thc ~ a s of
e thc Cciitral
Go\ cninient

CONCLUSION

36 22
In conclusion it must be reiterated that we cannot concede the
principle of parity as between Government and the public sector. Making a
fair comparison, we have tried to bring about a certain change in the
relativity, in order to improve the condition of Central Government
Employees. Thcsc nieasurcs include the folio\\ iiig
a)

b)

In order to cnsurc that Cciitral Govcmincnt Emplo\ecs do tioi

suffcr froni increase in cost of living duc to non-rc\ision of
salaries for a dccadc or rnorc. we have suggested a permanent
pay body which would recommend annual revision of
salaries Altcmatircly. w havc rccommcnded a fi\cd I 0 !ear
period for thc application of thc rcconlmcndatioiis of SUCCCSSI\ c
pay bodics In that case. it has also been suggested that there
should be a conversion of DA into Dearness Pay which should
be counted for all purposes every time the cost of living in&\
goes up by SO'%,

fWA has been changed to r percentage basis. In A- 1 cities i t

bc 30%, ofthc niaxiiiiuni of thc scale

w i l l iiou

334

3 0 2.;
With t ) r lmsaiing of'a~itrols
ot cr hc public sccm. Cioi cnencr~f
m a ! no longcr bc rtblc to i ~ ~ a i n tamtiglii control over ihc compc~isatio~i
pachagcs
ofthc PSEs ivho hat c cot\ bccn allotvcd 10 ncgotiatc scparatc pa! -scales \I 1111 thcrr
unions This, however, underlines the need for a national wage policy. so as
to ensure a broad measure of uniformity across the various sectors of the

\ c t d l l ~ P. ~ , I / l ~ J t # t I /

If

izyc I S J ~ J
1C

economy.

ffi1I-SZ

-ooti-oz-ozEr

65

IFZ

OZCI

066'2

SL

WII

Wtl

-OOEI-Oz-UOzI

wt - I

tS6'Z

ZY

1I

s CO' I

EtCI-ZZ
ECZ I -0Z-SCOI

WI 'I

1PI

ow'I

s991-OC
EZP1-EZ-00ZI-UZ-~Ul

WL ' I

(~d)9EsI-CCZPlI
(-Jnoq.l
PJnPl'un)
z1t I-02-ZLI I

L n ' l 'I

OZSI-zz

UZC

C91'f
EM'Z

IS

If I

ZPl'I

096'2

0s

-9 I

211'1

601

980' I

911'6 'I

IS

sot.

OW1

6y't . I

901

OLt

Wl

26'1 'I

ooci

zm

ZW

080'I

sm14

'0 I

'6

'x

.S

SP'Z

OOL'C

..

005

Z91'F
L89'C

'E 1'

W P 'I

tfO'C

'Z I

'I 1

't

'f

'I

%.-

"

U:

1.

Air India Ltd.

2. Bharat Electronics Ltd.

333.14
30.93

1. 1.87
1. 1.87

2005-50-2lOS402825-10-2965

2,005

2200-100-3600

2.200

..

1,563

..

1,517

872

100

525

..

5,065

Pa! Scales due for

rvs wion

\c.e.f. 1.1.1992
550

..

100

4.297

Pay Scales due for re*.+ .:

H.C.f.

3. Bharat Aluminium Co. I t d . 1.16

I. 1.119

2500-120-4300

2.500

.. 1.44J

4. Bharsit tleavy Electrirals

133.16

1. 9.M

250-120-43(w)

2.500

250 IAJJ

5. Bharat Yantra Nigam Ltd.

N.A.

I . 1.87

6. Bongalgaon Refinery and

29.01

I . 1.89

7.50

100

1.1.1992

..

4,794

..

J,1.94

..

J.394

Pay Scales due k r re*N'

w.e.f. l.F.1992

Pa! Scales due for rw ivon

w.c.f. 1.1.1992

Ltd.

Petro Chendcals Ltd.

7. Cement Corporation of
f ndia

f-) 52.08

8. Cochin Shipyard Ltd.

(-)

9. Dredging Corporation of

14.88

India 1,td.

7.95

2,500

..

I.JJ4

4759

2500-120-4300-330-

2.500

..

1.444

250

..

2200-75-2800-EB100-4OOO (CDA)

2,200

..

2.750

220

..

92500-120-4300

m e (IDA)

75

!*

320

100

IIR,

1. 1.89

2500-120-4300

2,soo

..

1.w

750

loo

4.794

I . 4.M

2400-100.u106120-4320

2.400

..

1.44

.w

75

4,279

I . 1.87

2Joo-I204320

1.444

3M

75

2.m

50

lcantcen
tUbid\)

4.329

Pa! Scaler du fat r1

w . t . f . 1.1.1992

IWII

3
-.

I.
10. Urlhi Transport

c-QM.22

3.
I . 1.86

2200-75-2800-EB-

7,

8.

2,200

2,750

4.50

2,350

1,444 1
2.500

705

5.

6.

9.

11.

100

100
(1R)

5,6oQ

100
100

500

600

5,099
5,300

420

!Qo

4.464

720

100

4,664

100-4OOO

Corporation
1 1 . Enlineers India Ltd.

4.

29.35

1. 1.89

I . 1.86

2350-1oMlSO (IDA)

20004-23W-753200 (CDA)

2.000

loo

12.

I ? . Frrru Scrap %Ram Ltd.

8.47

13. Frnilizcr Curpration of

India Ltd.

1-)225.98

1. 1.87

2400-100-3000-1204320 (IDA)

I .a

I . 8.87
1. 1.86

2500-120-4300 (IDA)
2200-75-2800-100w)o (CDA)

1,444
2,750

750

2.200

660

100
100

4,794
5,710

2200- 100-3600

2.200

I .w

550

108

4.294

2.200

550

100

4,294

720

loo

4,663

14.

IS.

Fuud Corporation of
idia Ltd.

2200-lbe-m

ardvn Reach Ship Builders 23.35

2.500

1.1.

Pay Scales (IDA) due for

revisioii H . E . ~ . 1.1.1992

Pay Sales due for revidon

w.c.f. 2.1.1992

rd Engineers Ltd.
16. findustan Arronautics Ltd.

52.34

I. 1.87

2200-100-.3600

I f . Hindustan Fertilizer

(-)349.45

1. 1.87

LJ00-100-3Wo-lZO4320

2.a0

(-)O.ll

1 . l.S9

2400-120-4320 (IDA)

2,m

360

2.200

2;750

330

100
100

4,5,380

360

75

4,279

Corporation Ltd.
18. tiindustan Salts Ltd.

2200-75-2800-EB-

1.444

.*

IOOJOOO (CDA)
19. liindusian Ship!ard Ltd.

20. Hindustan Steel \ V o r h

(-)113.95
(-)75.74

I . 1.87
1. 1.86

(.u. Ltd.

2.400

2200-4000 (CDA)

2,200
2,400

2300-4320 (IDA)

Construction Co.Ltd.
? I . Indian Kailwa!, Can%truction 17.40

2400-100-~-1204320

I . 1.87
1 . 1.86

2400-1204320 (IDA)

2200-75-2800-EB-

)icy .Scaler due for revirion

w.r.f. I.I.IW2

Pay Sc;rkr due lor rtvismn

n.r.f. 1.1.1992

2,750

330

360

.w

720

2,400
2,200

660

1 0 0 4 0 0 (CDA)

3 40

20
20

5,300

100
160

4,664

4,224

5.710

."
z
.c

c
L

..

..

. .

. .

82
--

. .

. .

..

..

.,

..

. .

. .

PI
3

a'

gg
-

.-.
.-.c

c
rr-.
X

f
7

7
i

-. -.

L
i

L.

--

%
E

e. C .

+-,
I -

-\SXESE36.1
TOTAL EhlOLUhlENTS INCLlfI)IN(; PAY. FDA, VDA AND IR AT TIIE
MlNlMUhl OF THE PAY SCALE FOR .SOME COhlMON CATEGORIES
IN THE PUBLIC .SECTOR AND CENTRAL GOVERNhENT AS ON 1.1.95

Undertaking

Net Profit
/Net Loss
1992-93
(Rs crores)

Entr?
Grade
Clerk

Staff
Car
Driver

EnIr!
Grade
Officer

3.

4.

c .
_

6.

7.

8.

333 14

2.643

2.738

2.748

3.56X

S.A

1 1 0 1985

30 9 3

2.592

2 .?h7

2,962

3.647

sA

I Xh

2.714

2.814

'.XI4

3.944

N.:\.

I 4 l9R9

133 10

2.740

2.xo9

3 I94

I I ..XI

I 9 1946

2.

1.

India LtJ

Unskilled
IVorker

Highest
Functionary

NonElrecutite

I.

Air

-.

Bhardt E,e:clromcs Lid

3.

Bharat Aluniiiiiuni Co Ltd

4.

Bharat Heavy Elrctricalc Lid

5.

13hrrar Yaiitra Nigaiii Ltd

NA

2.743

2.731

.2.773

3.044

x .(I04

I 19x7

B o ngaigaon Re t iiir ry a nJ
Prtro Cheniicals Ltd

20 0 1

2.70'

-'.X')?

2.762

7.044

sA

7.

Cement Corporation 01 India

52.ox

23x1

?.OX1

2.6X 1

3.944

I 19x0

8.

Cochin Shipyard Lid

(-1 7.95

2.735

2.w

2.845

3.R44

sA
s A.

9.

D r e d p g Corporation of
India Lrd

14.RR

2,694

2.759

2.709

3.X44

7.695

I 419x9

10.

Delhi Transpon Corporation

(-)246.22

1,844

?.?')'I

2.294

5.050

X.A.

I I 1986

II.

En_pinecrs India Lid

29.35

2.810

3.310

3 1x5

3.704

S.A.

I 1 IW2

12.

Frrro Scrap Nigain Lid

x.47

2.764

2.x70

2.x79

7 .M4

S.A.

(-)

34s

.1\

I 1992

I9Xx

I 419RR

3.

4.

( - ) 2 2 S .ox

2,720

2.XM

I .68

2.714

.2.

6.

8.

3.X1J

I I 1987

2.058

3.944

2.725

3 .(A4

13 .

Fen1llzt.r Corporation of
lrd1r I.td

I4

Food Corporation of India Lrd

i5

Girdcri Rcach Ship Biiilders

and Engineers Lid

23.35

2.MO

10.

I linrluscan Aeronaotrcs l.cd

52 34

1.540

1.070

3 (A4

17.

tliiidusiaii Fcnilircr
Corporation Lid.

2.720

2.070

-4.x44

IS.

Hiridustan Salrs LrJ

2.194

2.394

2.391

3 .x44

I 1989

I IYXY

IY.

Hindustan Shipyard Ltd

2,823

2.953

7.017

3 x44

2 19vo

1 !W';

20

Hindustan Steel Works

Construction Co Ltd

2.580

2.680

2.680

3.844

21

Indian Ra-iway Constructlo;

C o Ltd

17.40

2.094

2,494

2.494

3.844

. 1.1987

1 IW-

22

Indian Telephone lndustrrer

X5.XY

2.902

3.052

3.051

3 .q44

I I 1992

27

Life Incurance Corporation

of India

I .w7

2.340

2 . I76

1.914

I 8 1987

24

Manpanese Ore (India) Ltd

2.370

j.558

I l.lYX0

25

MICArrddmg Corporation
01 India Lrd

2.716

-4.894

26

\linrrA Exploration
Coqior.iiion I,td

2.717

27

hatioridl

Seed\ C orporation

( - )340.45

(-)5.87

IJd

346

2. K M

2.707

2.707

64'4

2.681

2.6X 1

:,946

h.lYR7

r-'

u,

RATES OF CITY C-NSATORY

ALIBWANCE IN
SELECTED P U B L I C W O R UNDERTMIYGS AND
CENTRAL m M E N T AS ON 1.1 1995
Undertaking

TYPe
of

!Scale
I.

2.

Air India I.iJ

Rharai Aluniiniuni C'o.

3.

< ----At the rate

5.

4.
of 6 R d Basic Ply with

max of Rr I O W - ~..~ >~

6% of Basic with
max. of Rs I(X)/-

4.5% of Bacic wiili

mrx. of Rs 75;-

3.5% of Basic with

max. of Rs. 201-

Bongaigaon Refinery and PetroChernicalc Ltd.

6 %of Basic with

rnax. of Rs. loo/-

4.5%o f Basic with

~ U X . of Rs.751-

3 S % of Basic with
mar of Rs. 20,-

7,

Cenirnt Corporation of India Ltd

- do -

- do

- do

8.

Dredging Corporation of
India I.rd

- do -

.do -

9.

DrlhtTmnspnn Corporarlon

< ._.__________
As %r Cemal Governnirnt rates

1,ttl

Bharat Electronics 1,rd

Bharar Heavy Electricals L u ~
Bharat Yantra Nigam Lid

1I).

Fngincerc lndta I.rd

---.------a-

. do .
5

IDA

6% of Basic with
niax. of Rs. 1001

4 . 5 % of Basic,with
inax. of Rs. 751-

('DA

I V K ) . 199') R < ,75120WI Xr ahove Rs. IM)'

2 0 ~ 1&) iitxive R\ 7.51

I.5M). 1099 Rs.W/-

11.

Engineering Projects India Lid

<-----------At the rate pnscrihed hy IlPCCIDPE----.--------- >;

12.

Ferro Scrap Nigani Lid.

6% of Basic with
mar. of R \ . 100/-

4 5 % of B a w with
niax of R\ 7.51.

348

3 , > % of Basic w\th

nwr of R s . 2 0 ' -

13.

Fertilizer Corporation of India

14.

Fold Corporation of Iidh Ltd.

do

Ltd .

IDA

.do -

6 % of Basic with
IMX.

CDA

4..5% of Basic with

m3x. of Rs. 151-

of R~.100/-

Below 950 Rs. 301-

- 1499 Rs.4511500 - 1999 Rs. 751950

2 0 0 0 & ahove Rs.1001.

do .

Below 9%) Rs. 251950 - 1499 Rs.3s)1500 - 19% Rs. 501.

2 0 0 0 & above Rs. 7.51-

15.

Garden Reach Ship Builders and

Engineers L$.

<-----At the rate of 6 % of Bask Pay with max. of Rs. 1001-------.>

16.

Hidusran Aeronautics Lid.

6% of Basic with

4.5% of Basic with

max. of Rs. 751.

max. of Rs.100117

Hidustan Fertilizer
Corporation L d .

< __-----__.____
At the rate of 6 % of Basic Pay-------------.-- >

. 18.

Hindustan Salts Ld.

Below 950 Rs.301950 -4499 Rs. 4511500 1999 Rs.7512000 & a b v c Rs.1001-

95b RS. 2.51950'--* 1499 Rs. 3511-SO0 1999 Rs. 5012 0 0 0 & above Ra. 7 5 i -

Bombay & New Delhi

Visakhapatnani
@ 4.5% of Basic Pay with
nuximum of Rs. 751-

19.

. Hiidustan Sh,pyard L d .

RCIW

@D 6 % of Basic Pay with

maximum of Rs. 1001-

20.

Hindustan steel Works

Corntruetion Co. L d .

3.5% of Basic with

max., of Rs. 201-.
Retow 950 Rs. 2011499 Rs. 2011 5 0 0 - 1999 Rs.20;2 0 0 0 & above Rs. 20'950

3.5% of Basic with

max. of Rs. 201-

&low 950 Rs.201950 - 1499 Rs.2011.500- 1999 Rs.2012000 & above Rs. ZO/-

IDA

6 % of Basic wuh
man. O f Rs.1001-

4:5% of Basic with

IMX. of Rs.751-

3.5% of Basic with

mrx. of Rs. 201-

CDA

&low 950 Rs.301950 1499 Rs. 4511500 - 1999 Rs.7512000 & & O V C Rs.1001.

&low 950 Rs. 251950'1 1499 Rs. 3511500- 1

m R6. 5012000 & ~ V RS.C 751-

&low 950 Rs.2019500- 1499 Rt..201IS00 1999 Rs.201Zoo0 & above Rs: 20;-

349

0
l
r
,

-?
<

U
I
I

c
v.

re
U

C,

2
..-;
m

>.
c
*

i
,

r-,

.-.

t i

6%of Basic with

Workers

4 . 5 2 of Bask wtth
max. of Rs. 751-

max. of Rs. 1001-

3.5% of Basic with

mx. of Rs. 201(for pay'bc!ow Rs.1515)

Amount by which pay

falls shvn of Rs. 1524
(Rs.1515and above)
34.

35

Projects k Equipment
Corporation of India Ltd.

Officers

6%of Basic with

Rs.751-

Rs.201-

Workmen

8% of Basic with
mx: of R~;1001-

Rs. 751-

Rs.201-

mix. of Rs.1001-

Central Government

%:OW

WOW950 R< 251950 1499 Rs.3511500 1999 Rs. 5012000 & above Rs. 751-

950 Rs.301Rs.451Rs. 751-

2006 k above Rs.1001---_I_.--_-

.-__I_

Below 950 Rs. 2019.W 1499 Rs.201-

950 1499
1500 - 1999

Pay also includes special pay, Personal pay. Deputation Duty allowance & Non-Practicing Allowance
Source: Data Collected by the Fifth Central Pay Commission..

352

_ - ...

1500 - 1999 Rs.2012000 R above Rs. 201..

T__

._-..__.__....-____I__

- -

COMPARATlVE POSlTlON O F R n ~ - C ( l ~ P E N S A T O R Y
ALL0WANCE:WINTER ALLOIVANCE Ell'
IN PUBLIC SECTOR UNDERTAKlNGS 81 CEhTRAL GOVERNMENT AS ON 1.1.95.
-.

---.

...----.-_

---

Undertaking

____-.-- ...............

.....

Basic paylClass of

PlaCcs

TY pe of
Allowance

Employm
1.

.---.._I

'

..-----

2.
__

...

3.
- ....

4.
.............

............

......

Rates of Allowance

5.
.......................................

C e m y t Corporation oi
India.

Below R s . 9 5 0
Rs.950 R s . 1 4 9 9
Rs. 1.500 - Rs..1999
Rs.2000 - Rs.2999
Rs.3(KIO and above

HCA

Rs. 50 p.m.
Rs. 7 0 p.m.
R s . 1 2 0 p.m.
R s . l S 0 p.m.
Rs.1-SO p.m.

2.

11industan Aeronautics
I-rd. (Koraput Division).

Worknien: Gr. A
Gr. B
Gr. C
Gr. D
Gr. E
Gr. F

HCA

Us. 70 p.m.
Rs. 80 p.m.

Rs. 49 p.m.
Rs. 60 p.m.
Rs. 6.5 p.m.
R s . 70 p.m.

4.

Height of ahove
1500 metres.

Hindusran Salts Limited.

Officers

HCA + WA

Rs.400 p.m. from

October to March

Non-Officers

HCA + WX

R s . 2 0 0 p.m. from
October to March

Below Rs. 9 5 0
Rs.950 - Rs. 1 4 9 9

HCA

R s . SO p.m.
R s . 70 p.m.
R s . 1 2 0 p.m.
R s . 1.50 p.m.

Officers

HCA + WA

R s . 4 0 0 p.m. from
October to March

Rs. 1500 Rs. 1999

R s . 2 0 0 0 and above

5.

Indian Oil corporation.

Heigbt'bf 1500
Metres or above

__I.."

353

........

Date of L

6:
...........

R s . 90 p.m.
Rs.100 p.nr.
Rs. I15 p.m.
R s . 1 3 0 p.m.

Officers (1982 pay scale)

Rs.
- Rs.WOO
Rs. 1001 - Rs. I100
Rs.1ID1 R s . 1 7 9 9
R s . 1800 and above
1lindustan.Perrolcum
'Co~wrationLimited

.......

revision

1.

3.

ASSESE 26.6

19x3

-----

."._ . . .

... .
0

1.
.. . .

. .

..

2.
. _-- . -.

Indian C)krseac Bank

-.

3.

tieieht of IOOO
metres & above
but I c s t h a n
rsoo metres.
Height not less
than 7M metres and
which are
surrounded by hills
with a height of
IIW nietres & abnve.
Height of 1500
and abnve but less
than 3OOo metres.

.. _.-

_.. . .- .

.^

-____

4.
..- ._

..

-.-. -.... .

..

---

7.

Indian Telephtine
Induatrte%Ltd.

R.

Life insurance
Corpnmtion of India.

Height of 1 5 0 .
Metres ahove Sea
level.

... ,.

-_

. .

6.
.-

... .. . ,.

fiCA

Officers

HC'A

5 R of basic pay subject

to maximum of Rs.130 p.m.

..do .-

_.
do _.

..do -.

Clerical & Subordinate '

Staff

HCA

8% of h a w pay
maximum of Rs 150 p m

Officers

HCA

6 5%

6% of hasic pay

O f basic pay subpct

a maximum of Rs.600 p m

Clerical & Subnrdinalr:

Staff

HCA

18% of basic pay

maximum of Rc 450 p m

Officers

I4Ch

15% Of basic pay subject

in a maximum of Rs 600 p m

Einployees of Sriniigar
Unit

Rs 190 p ni

Class-I

7%

Of b S l C

pay SUbJeCt

t o maximum of

_.__---.---

Rs

180 p m

7 % of bas= pay subject

to maximum of Rs. 159 p m

Class-I

HCA

Class-11. Ill & I V

5 % of basic pay subject

to maximum of Rs 150 p m
5 % of basic pay subject

3 54

7.1091

maximum of Rs.110 p.m.

Class-11. Ill & IV

Height heween
lo00 mtres & 1500
metres.

Clerical & Suhc>rtlinate

Staff

to

Height of 3000
Mrtres and ahove.

-.

5.
.. -

1 1 57

__

.....

.....

-..._ .

.-

........................

3.

2.

1.

.....

........

.-

. ............

-.

...

__

. . . . . . .

,.. .

_- .- . . . . . . . . .

... - ..

_"........

5.

4.
.

.....

.......

...

._ - .. _-

6.
_. ....

to maximum of Rs.125 p.m.

Height not less

than 1.50 metres hut
surrounded by and
accessible through
hill of loo0 metres
and ahove.

9.

State Bank of Hyderabad

Clerical & Subordinate

Staff

Height 3000 metres

& atmvc.

IS00 - 3000 metres

10.

Tehri Hydro Development

Coqkxation Limited.

Project site.
Tehri.

........

Clerical & Subordinate

Staff

8% of basic pay subject

to maximum of Rs.150 p m

Supervisory Staff

6.5% of basic pay subject

to maximum of Rs.160 p m .

Clerical & Subordinate

Staff

6 % of bark pay subject

to maximum of Rs.110 p.m.

Supervisory Staff

5 % of basic pay subject

to maximum of Rs.130 p.m.

Below Rs.1500
Rs.1500 - Rs.1999
Rs.2000 Rs.240
Rs.2500 & abnve

HCA

Rs. SO p.m.
Rs. 70 p.m.
Rs.120p.m.
Rr.150 p.m.

Below Rs.950

CHCA

Rs. SO p.m.
Rs. 10 p.m.

Rs.950 - Rs.1499

....

_-

Rs.450 p.m.

15% of basic pay subject

to maximum of Rs.600 p.m.

Rs.120p.m.
Rs.150 p.m.

Rs.1500 Rs.1999
Rs.2000& above
~

18% of basic pa) subject

to maximum of

S u p m i s o y Sraff

Central Government
Employees.

11.

HCA

HCA
CHCA

Itill Comynsatoty Allowance

Composite frill Cwnpensatoy AllOwancc
WA
Wimer Allowance
Source Data collected by the Fifth Central Pay Cbrnn!isaion.

355

1.1.86

DEATH-CUM-RETIREMENT GRATUITY ADMISSIBLE TO THE EMPLOYEES OF THE PUBLIC

SECTOR AND GOVERNMENT OF INDIA

AhiXSE 36.7

Cndertaliing

__

(min. year
of service)
.

2.

1.

_____

-____

._

Air India Ltd

2.

Bharat Electronics Ltd:

3.

Bharat Aluminium Co. Lld

__
-

3.

-_

No. of

Amount

Months

(Rs.)

-_

-.. .-

~ _.

4.

- -

.___--.
___-__-.
- -.--

_-

5.

IS days salary
for each completed year of
service

6.
__

Amount

CRS)
-

~~.

a.

7.
~

..

16.5 Months
Emolunients

1 lakh

20 Months

I Iakh

Salary
(Basic + DA)

lecs than I y r

2 Months
Emoluments

1 yr & above but

less than 5 yrs.

6 Monrm

5 yr.& above but

less than 20 yrs

12 Months
Emoluments

After 20 rs

Emoluments

I IaLh

112 Month's

Emoluments
for cornpleted half yf
of qua1ify ing
service

I lakh

3 56

< ...__
._...d(,.. __.......
>
^

9.
~

1 lakh

1S days salary
for each coniplrted year of
service

? years

No. of
Months

33 tinier
Emolument\

IdAh

5.

Bharat Y a n m Nigam Ltd

6.

Bonpaigaon Refinery and

P e t e Chemicals L t d

7.

Cement Corporation of
India

8.

Drlhi Transpon Corporation

1 lakh

I lakh

16.5Months
Emnlunients

IS days salary
for each completed year c d

I lakh

33 times
Emolumcnis

I lakh

I lakh

33 times
Emoluments

I lakh

33 tlrtU5
Emoluments

1 lakh

33 timer
Emoluments

I lakh

KWkX

9. Engineers India Lid.

S years

< _ _ _ _ d__.___
o >
16.5 Months
Emoluments

10. Ferro Scrap Nigam Lrd

II.

Fond Corporation of India

12. Garden Reach Ship Builders

and Engineers Lid.

20 times
Emoluments

I lakh

2 years

IS days salary
16.2 Months
for each comple
Emoluments
ted year of
service
(Basic + DA + Spl.Pay )

1 lakh

5 years

IS days salary
for each complcted year of
service

I lakh

13. Hindustan Shipyard Lid.

1 lakh

357

1
c
.
L

2.

1.

3.

- __
22

23

.. .

hfinenl Exploration
Corporation Lid

4 years

National Thermal Power

Corporation Lrd.

S years

5.

6.

__

IS day7 talary
for each completed year nf
wrvice

LO Montlic

IS days salary
for each complrted year of
service

40 times

I lakh

IS dayc wages
for each completed year cif
;eivici t i l l
the date of
retirement

Emolumentc

1 lakh

less than I y r

Eniolu me nt s

15 days wages
(20 months)

6 Month5

5 yr.& above hut

12 Months
Emoluments

After 20 yrs.

5 years

Rashtrtya lspat Niceam Ltd

15 day7 emoluments
for each complered year of
cervice

20 months
Emolumentc
(Baric + DA)

20 Month.
Emolumentc

33 rimes

1 lahh

I lakh

Emoluments

I t ? Month's
Emoluments
for completed half y r
of qualifying
service

1 lakh

1 lakh

I14 th of Emolu16 5 times

2 5 lakh
ments for each
Emoluments
completed six
months of service
(Basic + D A Q 97% for Pay up to Rs 35001Basic + DA @ 73% for Pay of Rs 3501-600
subject to inmimum of Rs. 3395
Basic DA @ 63% for Pay of Rs.6001 & ahove
subject to minimum of Rs 4380
w.e.f 1 4.1995)
- ___
- - __
- _ _ _____
Note: For the putpose of computation of gratuity in PSUs, a month should
hc reckoned as consisting of 26 working days

1 lakh

33 times
Emoluments

5 years

25. Government of India

2 Months
Emoluments

I yr.& above hut

less than 5 yrs.

less than 20 yrs

24

8.

7.

- _

____-

-__--

__
59

- -- ______I__--._-.
Source Data collected hy the Fifth Central Pay Commiswn
_
_
I
_

2.5 kkh

AShEXE 36.8

1.

2.

3.

1.

Air India Liniited

10% of basic pay

10% of basic pay

>
-.

R h a m Electronics Limited

10% of h a w pay

3.

Bharat H e a v y Electrical< Ltd

10%of P a y + D A + F D A

4.

Btiarat .4luininiiiiurn C ~ I1 td

10% of Pa!

5. Bonpaigaon Refinery & P e m

+ DA

10% o f haric pav

DA

10%of Pay + DA +FDA

+ DA + Spl P n )

10%of Basic pay + D A

Chemical$ Limited

+ DA

10% o f basic pay t !>A

10% of hasic pa!

Cocliin Ship) A r e 1 Limited

X 1/3% of ha5ic wages+ D A

X li37r n f h $ i c w a g e s + D A

Dredging Corp of India Lul

10% of basic p a y + D A

h.

Cement Cnrpwiir

7.
8

tin

of India

9. Fern] Scrap S p i n Limited

10% of basic pay +DA

10. Food Corpordion of India

10% of hasic p a y + F D A + V D A
(IDA scale)

Lln~lted

1 0 % of

hd\iL

pa) + DA

10% o f hasic pay + C D A

(CDA scale)

+ DA

11

Hinductan Aeronautic< Ltd

10% of hasic pay

12

Hind ti \tan Fenil ize r\ Ltd

10% of basic pay + DA

12

Hinduwin Shipyard Liniited

X.33% of basic

14

Indian Railw.i\ Construction

Company Liin lied

10% of basic pay + D.4

110% nl'hasic pa) t DA

360

2.

1.

3.

-IS. Indian Telephone Industries

10% of b2.k pay+DA

i 0 l of basic pay f DA

10% o l the aggregate of

the basic pay including
90% of the Fpl.AI1owances

10%of basic pay

Limited
16. Life Insurance Corporation

of India

10% of basic, pay + DA

+ DA

17. Manganese Ore Limited

I 0% of basic pay

18. Mica Trading Corporation

10%of basic pay+VDA

10% of basic pay+VDA

19. Mineral Exploration

10% of basic pay+DA

10% of basic pay+DA

20. National Industrial

Development Corporation

8 113% of basic wages+DA

8 113% of basic wagrs+DA

2 I . National Seeds Corporation

Limited

10%of basic payi DA

10% of basic pay+DA

22. Rail India Technical aluf

10% of basic pay f DA

10%of basic pay + DA

23. Paradeep Phosphates Ltd.

K)% of basic pay

10%of basic pay

24. Projects and Equipment

Corporation of India Limited

10% of basic p ~ fy DA

lC% of basic pay+DA

25. Rehabilitption Industries

Corporation Limited

8.33% of basic pay+DA

8.33% of basic p q t DA

26. North Eastern Handicrafts

8.332 of basic pay - i C A

8.33% of basic pay+ DA

of India Liniiled

Corporation Limited

Economic Services Limited

and Handlooms Development

Corporation

27. Central Government Employrcs

..._________.

%I

of hitsic p1y only

No! applicable

___-

....

Source: Data collected by the Fifth Central Pay Commission.

361

___

....

__

-. .

37
-3 7 1
Wc obscnx that subscqucnt to thc cpcning up of thc cconoin!
salaries in thc pri\,atc scctor ha1.c sk>.rockctcd and gone through the roof T h i
recent spirt in the conipcnsation packages oTcmplo!ws i n the prn'ate sector I S 3
result o!' die intcnsc conipctition :iiiongst thc large nunibcr of p1aJa-s that ha\ 5
sml.rgcd on the industrial scciic It IS ilicsc pla! crs nho arc making such lucratii 2
oflcrs i n ;i bid to attract and rctain kc!. pcrsonncl

-- 2

Go\wnnicnt tm has contnbutcd to thc salan. booni in the p r n a c

b!- raisuig the ccilings on the renitineration of nianagenal personnc!.
aid later b:. relasing the ceilings coniplctcl!. for profit-making companics. Todn! .
such coinpanics can pay their nimagcrial pcrsonncl 5%) or lo'%,of their net profits.
dcpcnding on lvhcther thc conipar.!. has onc or niore than one Managing
DirectoriWhole-time Dircctor. Thus, a company with a net profit of Rs.100
crores and with one Managing Director can pay him Rs.5 crores per annurn
This kind of astronomical satan. is not iiicrcl!. an example. these da!.s it I S fact
Thus Govemeiit poliq has blown up the htheno innocuous differentials betuccii
the Govcrnnmt md the private sector. espec!all\~at the highest levels. many tinics
o\zr Nccdlc;s to sa).. h s has led to extreme rcsnntmcnt and,heart-burning among
the Govcrnnicnt employees.
.' I

l ; a i o r . iiiitial!!.

37 3
At a Sermnar organized in Januan. 19%- b: the Centre for Kcv
Perspcctnzs on the " S a l v . SJsteni in Go\ crnmcnt". the public s e n ants argucd
h pnvate sector iil respcct of
\chcnicntl! in support of a comparable status ~ i t the
salancs It \+as argud that the "o\cr offcrings" b! multinationals to fresh IIT and
managemcnt graduates. which Mere as high or highcr than the salaries of senior
Go\ crnment officials. iverc eroding the niorale of all Government functionaries
Such glaring disparities between the pa! structurc in the Government and thc
pri\ atc sector might creatc a senous crisis ol'talent. cspcciall~at higher Ic\ cis
37 J
The issuc of salaries iri pris atc sector has hogged considcr-able
media attention and senerated a yeat deal ofcontrovcrs!, Whilc there IS a plethora
of nc\\.spapcr and magazine nniclcs a \ d a b l c on thc subject of salarics i n thz
pri\ atc scctor. tlicrc is no reliable databasc In tius contcst. \\c dccidcd to assigii
a stud\. to thc Managcmcnt Daclopmcnt Institute ( h4DI ). Gurgaon to tarn' o i i l 311
objccti\ c asscssmcnt of thc situation. comparing the salaries and pcrqiiisilcs

obtaining in thc Ccntral Go\ ernment nith those in the prn ate sector The MDI
circulatcd a questionnairc to about 400 pnvate sector enterprises ranging from
small traders to huge multinational companies The list tias d r m n up so as to
cmer a urde spectrum of enterprises in terms of their scale of operations. types of
actn ities. organisational structures. locations etc The s,ample drann \\as
influenced b! con~enienceof access to information and technicail! could not be
called a random sample The pmate sector is highly reluctant to part \\ith
information relatins to cornpensahon packages With great deal of persuasion and
personal efforts. MDI succeeded in elicitmg information from 1 I2 organisations
The response to the questionnaire was received from these 1 12 enterprises This
is a good beginning and it is hoped that Management Institutes across the
country will take this as an example to follow, so that a body of literature is
created on private sector remunerations
f

I d / H p

\/iiiA

\[I ) I

o///w

ivitriisfed /o

37 _i
Aftcr n i b g some assumptions regarding thc comparable levels
in the pri\ ate scctor and the Government, and other assumptions for the purpose
of quanbfi mg non-quantifiable benefits (see Annes 37 1) thc MDI have calculated
the "average total cost to the organmuon"of maintaining officers at var~ouslevels.
m the Government and the pnvate sector. This average total cost includes both the
duect and mdirect cost and is given for five levels of managment in Annese 37.2
The MDI have concluded as under :
1)

11)

111)

I\)

The Secretary to the Government of India, on an average,

costs his employer around half of what a Chief Executive
Officer (CEO) costs his employer in the private sector The
average cost of a CEO in the private sector is Rs.1.02.255 p.m.
For a Secretary it comes to Rs.44.817
Besides an average basic salary (including DA -t CCA) of
Rs 23.303. the CEO in the private sector draws an incentive
pay of Rs.14,752 which works out to 6570 of the basic salary.
The secretary to the Government of India does not get any
pa! nieiit of this nature

CEOs in the private sector enjoy a little more than their basic
salaries in the form of housing and car benefits These includt
hoisc \\ ith furnishing a l l o ance,
~
house maintenance. telephone.
dni er. car mmtenance. insurance. road ta\. pctrol. ctc In some
c a m . portton ofespcnditure on housing and car is given in cash
on reimbursemen; basis The Secretan also cnp? s housing and
car bcncfirs but not of conmxnsuratc \ alue
In 3dditicn. a CEO in the private sector draws sundry
allowances such as books and pcnodicals. club incnibcrships.
credit cards. LTC. medical entertainment. sen ices and anicnitics.
s m Ants. ctc . to thc tune of Rs 12.045 p i n which is nearly
55% of his basic salary As regards the Sccretac to the
Go\erniiicnt of India. he is entitled to soiiic medical benefits and
LTC b! rail only. nhich may bc \ alucd at Rs 2700 or I O'%) of thc
basic snlar!

In the. private sector, -0s

v)

are increasingly being given

superannuation benefits which are significantly better than the
pension entitlements available to the Secretanes.

vi)

The annual increase in the compensation to a CEO in the

private sector enterprise is 30 to 35%. while the increase
penrutted to the Secretary is marginal (in the range of 8-9%) If
the trend continues, the gap between compensations allowed to
CEOs and Secretaries will increase draniaticall!. ovcr time.

Vii)

The structure of the compensation pachage of a Head.of

Depilrtment u1 the pnsate sector is sinill& to that of his CEO. but
the differential m the quantum of remuneration is \tide An NOD
gets about 40% lesser than his CEO. However. in
Government the differential between the emoluments of a
Secretary and a Joint Secretary is very little At the HOD
level pnvate organisations are v e c :heVal ulth deswptions but
conservative with regard to compensations While an HOD has
approsunateiy 8- 10 years of espenence. a Joint Secretq has
dread! spent I6 to 22 yesus in senice

siii)

Though the average compensation package of entc level

executives in the private sector may be lotier th'an in the
Government. in some cases entry level executives reach a
compensation level that is nearly two times the compensation
at the highest level available in Government of India, w h i n
a short span of time. This is pnmarily because of performarxerelated rewards available in the private sector

In the private sector. performance criteria are well laid down and
salaries are revised annually Those performing better tnan
others are given accelerated increments and promotions.
Amongst the nonexecutives in the private sector it is observed

&at there is a high degree of flexibility and multiple

functionality. For instance, a typist also performs the role a
telephone operator. a stenographer. a PA or an assistant
Similarly. a Peun/Messenger is zked to work as a dri\,er as also
attend to other errands like making and sening tea
xi)

Annual pay is revised in such a manner for non-ewxutives that

the rate of increment includes both the components I e inflation
adjustment and reward for performance

sii)

In the private sector. there are many employce-friendly link

parameters For esample. attendanccishift aliott ancc. transport
for family members. picnic. free gifts on the occasions of
important festivals etc

siii)

Salaries are deliberately structured in the private sector so

that an employee is able to save on income tax .A significant

component of the pay packet in the pnvate sector is that of cash

allo\\anccs. \ h c h are given to them on "reimbursement" basis in
order to a\ old payment of income tax Some of these could also
be termed as malpractices. Similar methods are not possible in
h e Go\ m e n t \\here there is more tfmsparenq! and a rigorous
s\ stem of auditing The study has suggested exemption of
Government employees from income tax or reduction of their
tax burden
siv)

The number of holidays in the private sector is far less than

that in the Government.' But the duration of working hours and
,\\orhng days is much greater. In practice. there are no standard
hours of work

SV)

Government may consider introduction of a fast track for

promotions. Some of the appointments could be made on
contract basis.

svi)

In certain sectors in Government, linkage between performance

and compensations wuid be easily established, as these are
departmentally run commercial or service undertakings

From the above study, it is indisputable that there has come to be

a yawning gap behveen the salaries and benefits aviailable in the private sector and
the Go.\.emmentat nil le\.els. We believe that this problem if not addressed at this
juncture is Ilkel? to graduall?,spell a rot in the system. Not only is a flight of talent
an immediate possibilit) a tendency towards corruption is equally likely. We also
obsencthat it may not be possible to lift the remuneration system. prevailing in the
private sector and transplant it in its entirety on to the Goyemlent as there aie
vital differences behvecn the nvo sectors. Security of tenure in the Government
is a distinct advantage conipared to the private sector. Similarly. unlike the
Government. profitabilin- considerations in the private sector continue to be the
prime dri\,ing force. Even so. some relative parities will have to be maintained.
Countries abroad have already started doing so. In Singapore, salaries in
Government have been benchmarked to the salaries in the private sector. The
salancs ol'Pemiancnt Sccretxies in the U.K.are also close to the salaries of Chief
Esecuti\zs in thc pm'ate sector.

/ > ( I I I I I L I I I I ~ <J I Y W I

rlw prn rirr

\I,<

ior

37 7
\Vc are. honeber. constrained by the availabhh of funds \\]thin
the Go\enlnient in niahing recommendations of this son Yet. \\e have tried to
str1l.e a balance b! borro\\inS certain features from the private Sectoi Our
recommendations on exemption of allowances and pensions from taxes,
performance-related increments, linking part of running allowance with
punctuality of trains, introduction of Limited Departmental Competitive
Examinations for promotion, reduction in number of holidays, etc., have
drawn inspiration from the experiences of the private sector We have also
narroued dorm the astronomicall!. large differentials at the highest h e 1 to a
limited estcnt b! reconmiending 100% mflation neutralisation at all lei CIS

Needfor National
fa~poi~

3 7.8
While we hope that the present boom in private sector salaries IS
a transitory phenomenon and will be self-lmniiting. we do feel that a National
Wage Policy needs to be drawn up to put an end to the corporate warfare being
currentl!. waged by private industq. for wooin? m a y human capital

Assumptions made by MDI for the purposes of calculating and comparing total
compensation packages in companies.

Designationsand salary structures do not have one to one IidaSe in several organisations.
Where the s a l q structure is not clearly defined, we have taken the basic salary of the
incumbent III that post as an estimate of the basic salary.

Many compan~esuse a vanable annual increment as a comblned measure for both inflation
adjustment and increment (up valuing skills) Consequently in our reporting the changes
u1 DA + m u d mcrement ma! be combined together to estimate increase in compensation

Wherever a company car has been provided, a sum of Rs OOOO/- per month has been used
as an estunate for h s benefit This figure has been arrived at based on estimate of driver's
monthly salary plus car maintenance plus petrol expenses plus other expenses like tax etc.
This figure is for non-AC standard car model. In the case of l u s u cars
~ like Contessa,
Cello. Esteem. etc., a sum of Rs 15.0001- per month is taken as an estimate.
Telephone :If a telephone \\;lth local call facility is provided. a sum of Rs.jOO/- per month,
respectively is added in the
with STD facility and ISD facilie Rs.15W- and Rs.2500/monthly compensation package.
-i
.

Transport C-ation
In some cases it cmnot be treated as a part of compensation since
the lowtion of the unit is outside the cih. !n such cases the cost of monthly pick up is not
included as a part of the compensation
Medical Benefits Whenever the company does not specifi. the upper limit for medical
reimbursement. it is estimated that this figare is equal to one month's basic salary.
LTC : Where an upper limit on LTC is not specified. it is estimated that this figure is equal
to one month's salary.
Accommodation Where conipan) accommodation is provided and HRA is not specified.
50 per cent of s a l a n (bastc+DA) is uscd as an estimate for the rental Idue of the house
In the case \\fiere bachelor accommodation is provided. 25 per cent of the basic + DA may
be used
Subsidisd Food Wherever lunch. Tea/Coffee is provided b! the cornpan). a flat sum of
Rs 750/- per month is added to the total monthly compensation package of executive and
Rs 3001- in case of workmen

10

Grahuh h the case of yatuih. 15 days' salary for even completed year of service is taken
as an estunnte The salan here ma! be taken to be the basic pay + DA of the upper limit

of the pay scale

11

Provident Fund . For PF 10 per cent of the basic + DA is added to the total monthly
compensation.

367

12

Leave Encashment wherever th~sscheme m s t s , the amount may be added to gross annual
compensation, whether it is availed or not.

13.

Productivity Incentiia : Wherever this scheme I s in vogue. last year's data IS used as an
estimate

14.

Uniforms. Shoes. etc.. which are given to employees are treated as a part of compensation.
although some companies do not trcat them as such.

15

The jobs responsibilities and hours of uork f6r the same designation v a n considerabl) Ln
ma!. organisations We haw e used our judgement to classifi them into similar clusters

Some Definitions used for Ana!ysis

Cost to company:
This represents all direct and indirect cost to the company for hmng an empio! ee Thls
would mclude al! monthly pajments. annual payments stotutoF obligations (ESI. PF. Penson. etc )
and subsidies (Canteen. Cor,veyance, Umform. eic )

Effective Pay

f i s is the total cost to the company excluding statuton obligations (PF.Gratuity and other
Terminal Benefits), housing benefits (Rent on leased house. house maintenance. telephone. etc ).
convqance (including carIpetrol, insurance. tax and maintenance). This. howe1,er. would not g1i.e
the cash pa!. packet whch employees moss the sector take home. Nevertheless, it senes as a useful
measure of comparing the pay across sectors. especially when a significant proportion of the pa? is
strictl!. non-measurable or non-vanable.
Take Home Pay
This is the pay packet in cashwhich an employee receives each month. It includes basic pa!..
DA, CCA, Cash Allowances and excludes HRA if any and all annual benefits like Bonus. Es-gratia.
LTC. etc.. as also statutory benefits Ilke PF. Gratuit?,. Pension, etc.

ANNEXE 37.2
COMPARATIVE LEVELS OF TOTAL COST IN THE GOVT. AND THE PRNATE SECTOR

.
.
.
.
. ..

I.&\

__

el

_____

__

-.

(Rs./Month)

_ ~ _

Total Cost to the Organivation

Desigriatioa

Luw

Avg.

High

1.

Highest l e ei~

2.

(a) CEO

(b) SecretanSenior level

(a) Head ofthe Dqtt.

(b) Joint Sareta?

4.

7X 512
44x17

101,255

269,967

44.817

44,817

20.308

65,283
N A.

112,783
N.A.

10,837
14,350

23,288
16,380

1,146
3.251

8,381
5,139

3,582
2.961

8,065
3,234

36.805

( a ) Esecutives
(b) Ciraup A Ofticas

Siippoi1ing Stafl

3.

2.0OCJ

12.139

in P\? Sector
(b) T-pist in Govt.
(a) Typist

(a) Peon in h?.

Sector
(h) Peon in Govt.
._______
-__Source: MIiI Study

Lowest Ie\d

360

I OX6
q - l

3.312

930

2.hm

_____--

_.

38

I
71lC i l ' 4 /ill.
L

otitpim V J I I s u11h

r h S~IJW,

GENERAL INTRODUCHON

--I

38.1
Our Ternis of Refercncc rcqurre us to ninhc rccommcndations
about the structure of the emolunients and conditions of sen ice of tbc Central
Govemeni e m p l q ws ha\ in2 regard. among other i ele\ ant factors. to the

p r e - d m g pa) structuic and retirement benefits available under the State

Cjovemcenf s

1
Tlw S L V rlrrd t 7 K

VIEWS EXPRESSED BY PREVIOUS COMMISSIONS

j8 2
The Second CPC uhile admitting problems of making \ d i d
comparisons among State Go\emment employees stated " The rates of
rcmuneration of the heads of mqor d e p m e n t s are comparable nith those of
heads of departments under thc Central Gownrnent The diffcrcnces hone! er. arc
most conspicuous in the case of Class IV and clerical staff \\ hich i n conjunction
\\ith the s m l a n h of'qualifications and duties has pro\ ided a ground for agitation
b? the non-gaircttcd cniplo! ccs The disparitics i n the cmolumcnts of p ~ b l ~ c
servants in different States are lo a largc extent. but not cntirch thc reflcction of
unequal le\ els of econoniic de\ elopment and of dillcrences i n thc linancial
resources of the Slate Go\ emnents "

I I, v h>iiirrli (

f'(

38 4
Thc Fourth CPC obscned ' \\ hiie a graduate teacher. staff car
dn\cr staff nurse are paid less at the m m i u n i of the scale compared to the Centre.
a m i n othcr categories like LDC. Constable. Head Constable. Telephone Operator.

Midunes ctc are gettmg hgheremoluments There is no uniformih of pa!. scales

across the Statcs and relativities behecn different posts also differ across states"

METHODOLOGY

In order to study the pre\ailing pa! structure in the State

cmnicnts. a qucstionnaue imdesigned for eliciting information about the pa!
Ics of different categories of posts. allo\\anccs 3nd retirement benefits of the
)Io\ ccs and other relei ant conditions of sen ice Copies of the same \\ere
m d c d to all the State Governments Replies \\ere recei\ ed from 2 1 out of the
m u Thc four defaulting States \\ere Bihar Kcrala. Nagaland and Punjab
also \ isitcd some States Duriny our \ isits n c had discussions \\ith the Chief
iistcrs. C h i d Sccrctancs. Ofiicers of the Statc Governments and the State units
hc rcspccti\ e All India Senices officers' .4sscxlations
7

SIZE OF EXPLOYMENT IN THE STATE GOVERNMENTS

38 6
Used on the mformation recci\ cd from State Governments it is
obsen cd h a t tlie total number of employees under the State Governments is more
than the number of ctvrlian employees under the Central G o v m e n t While
according to the data b a s 4 on Economic Sun e.! 1995-96 the number of ci\ ilian
emplo\ws i n the Central Government rose from 32 7 labs In 1983 to 33 9 lakhs
~n 1004. the number of State Government emplo! ees increased from 60 4 I&s to
7 3 4 Iakhs during the same period. representing an increase of about 3 7% t'or
Central crnplo\ws and about 2 1 5% t'or State Go\ cnunent emplo! ees Ei en if u c
taAe the intonnation based on the schedules. the figure for Central Go\ ernment
emplo!ces sho\is an increasc of 10 3% o\er the period 1984-94. there are no
figures for State Go\emnient emplo! ces a\ ailable from the same source It can be
broadl! stated that the Central Government has been able to keep a tighter
control on the number of iis employees than the State Governments because
of thc free/e operative since 1984

BRO.AD OBSERVATIONS BASED O S COMMON CATEGORIES

-3 x

S r r r l r , '1Il
( lltllllll\\

Ill\

;'
From the replies recened it is obsened that the pa! structure of
Statc Go\ cnmicnt cmplo>eesIS pcnodicall! re\ i a e d and re\ ised b? the respcctij e
Statc Pa\ Conin;issions/Comniittees on the pattern of Central Government pa!
scales The number of such Pa! Commissions iaries froiii three to nine across the
States n i t h thc largest number ha\ ing been sct up in Andhra Pradesh. Assam aiid
Orissa ( Sc\ en each). Rapsthan (Eight) aiid Jammu R Kashniir (Nine) (See
Annexe 38.1 - lor details)
38 x
Most of the States have adopted the Central Government
pattern with slight modifications to suit local conditions In ccrtain Statcs lihc
Karii,itaka. Andhra Pradesh and Assam. the pay scales have been rcvised as
racntl!. as I 7 iOO3. 1 7. IOW and I 1 1989- as compared to 1 I l O X 6 \\hich IS thc

37 1

date of eff& of the Fourth CPCs recommendations. Consequently, the pay scales
in these States are much hi&
than the pay scales at the Centre as these are linked
to higher levels of AICPI.
Pav-.\rules
Smwc

iti

38 9
The number of pay scales are seen LO vary across States. wth a
maxlmum of 46 scales in Goa and a rmnirnum of 17 in Haryana The number of
scales in some other States are Andhra Pradesh (32). Amnachal Pradesh (36).
Assam (30), Gujarat (36), Maharashtra (30), Rajasthan (25), Uttar Pradesh (37).
West Bengal (24) and Himachal Pradesh (29) (See Aniiexe 38.2)

38.10
There is no uniformity in the scales of pay of various categories
of employees across States. The Chef Secrew's post. being an IAS post. is in the
scale of Rs.8.000/- in almost all States, escept Goa and Tripura. The Chief
Secretary of H q a n a gets a special pa); of Rs.500over and above the basic pay of
Rs.8,000/-. The scales of pay of Directors of Education and Chief Engineers shm
considerable variation across States.
38.11
It is also obsaved that the pay scales of some common categories
like Constable. Head Constable and Staff Car Dnx er I I ~a large number of States
are more attractive than at the Centre. (See Annexe 38.2)
!frrlm,unl.\fiJrrmuni ran0 in
StlllcJ$

hfla IlOII
"i'c-'af*ov

ln

Smfes

Encoshnrent of
'''rive a"dLTC

38 12
The rmnunum-ma~um
ram across States as on 3 I 3 95 IS at the
level of 1 10 7 as at the Centre. Goa and Tnpura are the onl! exceptions, as theu
Chei Secretaries are rn the scale of Rs 7300-7600 and not Rs 8000 as m the other
States and their peons are m a hgher scale than their counterparls at tbe Centre
38 13
Salaries are indexed for d a t i o n In all Slates and the
compensation for increase ui the cost of living is given in the form of dearness
allowance as per the Central pattem All the States use All India Consumer Price
index for Industrial Workers for measuring inflation. as is the practtce in the
Central Government
38 14

In regard to the other mndhons of service Ilke hohdays,

enwhnent of leave and LrC we find that there are large scale variations b e e n

the Central and State Government employees (SeeAnnexe 38.3) As compared

to 16 gazetted holidays at the Centre, the number of holida! s in the States
from 41 in Siklrim to 3 0 m Jammu 8c Kashrmr and 19 in Goa Smlarly. as
compared to 12 days's Casual Leave at the Centre. the pro! ision m most States 1s
for 15 days Eaned Leave IS m f m fixed at 30 da! s both in the Centre and the
States While no encashment of leave d u n g senice is pernutted at the Centre
such encashment dunng senice ranges from 15 to 30 da! s in a block of hso years
rn the States such as Andhra Pradesh, Gujarat. Karnataka and Maharashtra
Gujarat also permits encashment of LTC but is alone in this respect In most
States as well as at the Centre. Government employxs and their families are, for
the purposes of LTC. entitled to travel by a specified class x\ hich is not the same
class as the official is entitled to travel whde on tour How\er, in thecaseof
officers and the families of Tamil Nadu Government draning a cenarn pa). air
travel is pernutted Assam and Meghalaya Government permits the employees and
theu fanulies to travel on LTC by the s m e class to uhich the official is entitled to
travel \\ hilc on tour

372

3% IS
%lost of t h e States do not have a system 3f payment of
overtime allowance For a feu categones of emplo>,eeswho are required to work
at odd hours. a special tiffin allo\vance is permitted

38 16
We also 0bsen.e that certain other local allowances or facilities
like a peon surrender allowance, car for private use on nominal payment
along with free petroi. medical reimbursement of treatment from private
medical practitioners, sumptuary allowance etc., are given by certain States
like Tamil Nadu to their employees, whde such allo\\ances or facilities are not
pro\ ided b! the Centrc
38.17
A _greatdeal of uniformity is observed in the retirement benefits
avdable to the State and Ccntral Government employees n i t h average emoluments
for calculating pensions being based on last 10 months' pay in mo.st cases. rate of
pension being 50%. qualifiing service for full pension being 33 !'ears and for
eligibility of pension being 10 years (See Annexe 38.4). The minimum and
maximum pension limits vaq. across States because of differences in the pay
structure. The States of Andhra Pradesh, Madhya Pradesh, Onssa. Rajasthan.
Tamil Nadu and Tnpura have no ceding on pensions. As at the Centre. on third of
pension is allowed to be commuted in all States. Whlle rcstoration of commuted
value is generally allowed after a period of 15 years botli at the Centre and in the
States in a fen States this penod has been reduced even to 12 years.
38.18
Whde no \anahon IS observed between the Centre and the States
m the rate of deatb-cuni-retuementgratmty and the ceilmg limit in terms of number
of months is also broadl?. umform at 16 5 months or so. many of the States have
not yet reported an increase in the financial ceilings (See Annexe 38.5)

38 19
Kegardm_epromobon pohq. \\e obsene that the States of Andhra
Pradesh. Goa. Gujarat. Kerala. Rajasthan. Maharashtra. MiLoram Uttar Pradesh
and West Eknsal ha\ e introduced some form of time bound promotions at Group
B. C and D lael (See Annexc 38.6) Slkkun has introduced an ad\ ancement g a d e
of Joint Secretar after I 0 !ears of service at the Group .A 121 el The number of
such tinie-bound promotions \ a n bet\\een 2 to 3 across States and le\ CIS In the
Central Go\ crnnient also. tirne-bound proniotions ha] e been introduced at the
lower h e l s of certain Group C staff in the Department of Posts Man! scientific
departments at the Centre operate a flexible complementing schcine for Group A
scientists and for other categories of employees. \\hich is also a J ariant of timebound pronimon

WAGE BILL IN STATES AS A PERCENTAGE OF REVENUE

RECEIPTS. REVENUE EXPENDITURE AND STATE DOMESTIC

PRODUCT.
38 20
As compared to Rs 9044 crores spznt by the Centre on the wages
and salaries of Central Go\.emment emplo?ees in 1989-00. the corresponding
amount spent by the States vaned betucen Rs 2040 27 crores in a large State like
U P and Rs 42 67 crorcs in a small State like Sihkiiii (See Annexe 38.7)

38 21

The wage bill of the Statk Government eniplo?cos as a percentage

3 73

percentage of

Revetwe Receipt,
KLWetlNC

Expendifurr arid

s , ~ ~~o,,lcJIic
,~,
Prodmi

of Revenue Receipts, Revenue Expenditure and State Domestic Product varies

across States from 1414 tc 56%; 14% to 51% and 2% to 23% respectively,.as
compared to 17.3%, 14.1% and 2.21% at the Centre. There are certain States
which are spending a larger proportion of their revenue receipts, revenue
expenditure and SDP on wages and salaries as conipared to the Centre This is
either because of the disproportionately large number of Governlent employees
in some States. or their low revenue receipts. rei'enue espenditure and State
Domestic Product. or B combination of the above factors. It is also observed that
the rate of growth of revenue deficit in some States like H q a n a , Himachal
Pradesh. Kerala. h j a b and Tamil Nadu is much faster than the rate for the Centre
which stood at 22.7% between 1984-85 and 1994-95 (See Annexe 38.8). This
seems to be infer alia on account of a large component of revenue receipts being
used for payments of wages and salaries of State Government employees

LESSONS FROM THE EXPERIENCE OF THE STATES

C'crrairi broad

~ot~rlusicitts

38.22
Looking at the scenario across the iwious States, certain broad
conclusims may be drawn .
While the pay structure and conditions of sentce in respect of
State Government empla~ees are mostly on the Central
Governmentpattern, some peculiar features have been mtroduccd
The
by each State with reference to its requirements
conventional wisdom that State Government employees are
not paid as much as their counterparts in the Central
Government is no longer valid for some of the States. Man!
States have either formally snitched over to the Central pattern
or are now committed to grant of Central pay scales or have
evolved their own patterns which are not 111 any way lower *an
those prevdemt at the Centre

Notwithstanding their strained fiscal situation, some States

pay a large number of special allowances to their employees
as compared to the Centre. In regard to other conditions of
service also like h e d Leave. Casual Leave and Encashment of
Leave, the State Governments are more liberal and innovative
than the Centre.
Time-bound promotions have been introduced by several
States to keep intact the nioraie of their employees.
The State Governments ha1.e been compelled to take many of
these steps m order to keep peace ith their employees This has
resulted in a kmd of competitne populism in which cfifferent
States are forced to emulate each other due to pressures brought
by staffassociations The budgetary deficits of the States have
thus mounted, not least because they have not been as
successful in keeping tab over the numbers as the Central
Government has

It is possibl> 100 late in the day now to mouth pious homilics

asking the States to cut d o m the salanes and perquisites of thcir
employces. especially when mflation is rampant and private
sector salanes are no longer under check. In the long run. it ma!.
possibly turn to be an advantage. as a well-paid but smaller sized
bureaucracy can also be a motivated and honest one But the
States will definitely need to prune the numbth drastically
The trend worldwide is to have lean but efictent organisations
and the States \ \ i l l do well to follow in the same direction
I.cssotis /or r l i r
(-ttitruI

GcnwwniLviI

38 23
As far as the Central Government is concerned. we feel that there
are some lessons to learn from the States. Some of the ideas borrowed froni
their experience are .

Rtpple

~ J C IL

.Vm (jfccm(i,i

encashment of leave during service

travel by entitled class in LTC
transport allowance
sumptuary allowance to executive cadres
commutation of pension in 12 years
iissured career progression

38 24
We also appreciate that our recornmendations for the Central
Government employees are likelj to have a ripple effect and are not without i t s
implicattoys for the State Governments. We have kept h s constraint in rmnd
while making our recommendations
38 2 j
There is :i final note of caution we would like to sound. Bet\veen
the State services and the All India Senxes, there is an interface, as the former are
feeder cadres to the latter In their erithusiasm to better the lot of the State
services, some State Governments have made them more attractive than the
All India Services. This is an unhealthy trend which needs to be looked into
We shall speak of this at greater iength in our chapter on -411India Sen ices

: 375

Annuxe 38

1. Centre

750

- PI0

SO!

1.1.86

1114

1.1.92

608

1.1.86

150

- 950

11s

I. 1.89

900 -1435

1.k

608

1.1.86

950 -1500

815 -1200

350 -15GG

$15 -1660

350 -1501:

1145 -!420

1595 -jOiG

1975 -4010

1745 -3420

1595 -3

950 -is00

825 -1100

Pi5 -16%

S50 -1500

LA,

1285-3015

915 -1935

1065-2095

N.A.

n.A.

ii5 -1025

1150-1500

050 -1500

3i5 -i66G

LA.

1150 -is0

750 - 9JLI

IJr. Asstt.;
950 -I506

825 -1200

120-2040

I.A.

950 -1530

1200-2010

#.l.

N.i.

N.A.

to20 -?ti

N.A.

A. r,

11. States
---I---

1 Andhra Pr6hSh

2 Arunachal Pradesh

3 tssa
4 ha

5 Warat

!.A.

601

1.1.86

;?I5 -2315

r i t h a start
O f 1s. 855;6 Wrua

608

1.1.86

1 Yiaachai Pradesh

608

1.1.86

8 Jaanu I. kashair

608

1,4,81

;SO

- 346

450 -1500

soi.iav

i S G ~ .oav

Of Rs.~/-

of Rs.401-

450 -1800
with a start
O f Rs. t000i-

150 -135G
950 -1800
950 -1800
1200-2130
with a start u i t h a start u i t h a start u i t h a start
of Rs.110;- of Rs, 10001- of Rs. 105Ql- of Rs. i260/150 - 940

950 -1500
(Jr. Asstt.)

825 -1?OO
950 -ti00

1340-1940

1300-1t70
(stl. grade)

9 Karnatrka

632

1.1.43

140 -1340

1043-1900

1040-1900.

li30-2i00

10 Wadhra Prsdesh

608

1.1.86

750 - 945

350 -1530

950 -1530

li50 - 8 G G

ii Rrhrrashtri

608

1.1.86

156

- 910

950 -i500

825 -1200

915 -1660

915 -1660

9% -1501

12 Nanio~lr

608

1.1.86

i5G

- I46

950 -15Q

825 -1200

975 -i660

H.A,

950 -150:

13 llt9hdihri

661

i 4 IlirorU

608

1.1.86

SOq-iijG

Nl

825 -i26G

li.i.

6.1.

E.4.

iS trissi

aoa

1.5.89

150

356 -)NO

950 -1500

N.A.

16 MaSttiL

603

i.E.88

756 - 940

15G -1680

825 -1350
i i t h 1 start
of Rs.8551-

05; -168;

- 940

1040-;90G
H.A.

3;;

-1660

8.1.

N.A.

n.A.

950 -;50

950 -168

AnneJe 38.1

irirtura

608

1.1:86

Utt i r Pradesh

608

1.1.86

- i130
150 - 910

715

: 377:

N.A.
950 -1591

a511 -2130

I.A.

m.

1.1.

150 -1400

915 -1660

1200-2040

950 -1500

I, h a

32

IAS

8140-1O;tJ

U-A.

8000

Nk

l:X,;

HA

4200-5300

;.A.

45

i300-1600

Nh

l:j.4

5. Gujsrit

k*i,

6. Harvarta

1:1C.7

1. Hirachrl Pradcsh

23

8300

#A

i:10.1

8. J
m i kaokrir

28

IAS

IAS

1.1.

9. Kmattkr

20

14
Iu

10. ladhrr Prdrrsh

11. Naharrsktra

30

12. Wanbur

24

IAS
8000
#A
8000

13. Heyhalava
14. Wizoru
15. Orissa
i6. Aajasthan

24
31

8000
8000

2i

8000

25

8000

17. Sikkir
18. Tuiluidu
19. r m r a

21
25
!.A.
31

IAS
US

20. Uttar Pridesh

21. krt dcnprl

19

24

7300-1600
IAS
8000

130O-ICOO
IIA

4100-6400
5900-6100
5100-6300
~~OO-SOOII

5900-6100 1200-5800
Ih
1500-5166

5825-6800
IPS
5000-6100 /600-8000
5100-6300 Cadre Pht
4100-5300 7 m - 8 0 0 ~
4200-1880
1500-5100

HA
ti4

4800-6300
3900-5000

5100-6500
5100-6306

HA

4000-5106

4500-5iOG
5100-5100

5500-6500 5100-5700
#.A.

IAS
llh

4000-5900

NA
7300-1600
N,A,
1300-8000

IPS
IPS
i100-7600

5900-6100
5900-61013 1300-7600
#A
5f00-6100 5Yir3-VG 73lC-7660

1040-1900
950 -1530
825-1200
a25 -1200

840 -1340
150 -945
150 -ttO
150 -940

1050-1135 820 -1175

825 -1200 800 -1150
950 -1500 150 -940
825 -1350
150 -940
start at 855

gl0 -1290
825 -1200
850*-;11F,
950 -'I&,

8OG -1060
150 -945
775-1130

150 -910
920 -1617 600 -1265

Commissioner start a t
962

!.A.
1: 10.1
H.A.
1: 10.;
i:?.8

1:lG.O
1:lO.i
1:lG.i
N,h.
H.A.
1:3.1

H.A.
i.1C.G

" - ~ - - - ~ - . - . -....
...--..
...................................................................................................................................

:Director o f Public Instruction

I Eirtclor of Higher Educaiitr
1 ;am Secretarv

Annexe 38.1

16

12

30

2i

15

30

(----ill-*--- ilov loon once i n a block

of 2 rears and Annrhen i n
india once i n II block o f
d fears

1 Praderh

15 b a n E.L. at a Hone TOUR once in 1st block

of 2 vrs,and anwhir6 in
India once i n 2nd block of
2 bears

g a ~of 12 ronths

chrl Prsdcsh

11t2 days 3
as iiesirad
bv DC for
their d isiricts.

29

------ C C6ntral Pattern---------

--..

15

30

For IUD
davs f o r Offices
of Lrunichal Pradash
locdted at Heu Delhi,
Assar, Heghalara 4 Yest
&nQal.

iiow iolrn once i n a block

o f 2 rears and Anvuhere i n
M i a once in a block of

ii1

s fears

(----------

it

On Central Pattern---------

15 days i n a tied Hcne Toun once i n a block

of 2 calendar r r i of 2 vrs and anvuhers i n
India once i n a block of
1 rrs sutije!t t o @ax. o f
5500 kns to and fro

4 "

Ii

30

1.A.

30

W.A.

<--Gn Central Pattern--i

(--On Central Pattern--)

18

23

la1 Pradesh

i0

CERtrdi Pattern

Hi1

1 Ldshrir

iil

ieaira: Pattern

iii1

:379 :

i.1.i. lntroduced
v.e.f. l:.3.1912

For the rturDose of LTC

Covt. Eroiovees rnll their
f u i l i e s are Entit?ed bv
class o f journey t o lrhich
Covt. E B D ~ O V Eis~ e r t i t l e d
to travel while OR tour.

Annexe 38.3

3 Karnatrlia

15

i9

30

30 davs i.L.
ir a block o f
two r e u s .

10 Haahva Pradesh

20

11 naharashtra

24

12 naoiour

21

13 lleghala~a

la

N.A.

(----------------

13

11 Wizorai

26

#,A,

15 Orissa

21

25

15

\I Sikkii

41

W.A.

18

;a Tarilradu

20

12

t i

Rajasthan

N.A.

30

(----------------

30 dars i n a
rear on a i a i l u n t
o f kut iess than
30 davs i,i.

lome Toun ofice i n !

tears. Afirchere in
India onl) Once i n
entire service Period.

Onlv Hore loun i s

d l lobed,

On Central Pattern-----------------

Ni 1

Home Toun once I n a block

o f 2 years and Anwhere ill
India once ir a block of
1 vedrs

On Central Pattern----------------

ioi the ouroose o f LTC

Erolovees and their

f a p i l i e s are entitled bv
clcss of journev t o which
Govt. Emolovee i s entitled
t o t r i v e l uhile on tour.
Gobt,

10 drvs 30 davs I

30 davs E.L. i n a Onlv once i n entire

service period.
So1.C.L e v e n a l t e r 21 wnths uhhn he
-nate bear has to his credit
minimum 120 davs

+ 5 dav 31 davs i n block oeriod of

30

30 dars E.L.
i n a block o f
tuo veafs.

l l l t of the 30 dd'vs i n ablock

rteriod w e n t of three rears
on dutv

3G

15 dais a t

i ~ c e r v d io f
i2 ronths I
30 d a i s
interra; o f
2 i nofithj.

i----btAllO&---i

(----Hot Allwed----;

Oae uav once

i n tw vrs.
and both UIYS
ohce ifi 4 vrs

Officers of State service

dralirtrl a oak o f Rs.5000;.
D.C. and A.I.S. Officers
drawing a oar o f Rs.5903'fire allohd t o travel by
Air inder L.T.C.

Annexe 38.:

%.A.

12

ii

iG

%.i.

Home Torn once i n a block

of i rrs ard abvrhere irt
i n d i d ow i n service oericd

O ~ ! I firlie irt ertiire

service. i i r i t e d to

3606 ims.

i!iJit!t

after corttinuance
service for 15 ris.

EO

10 nonths
Basic Pav

33

r f s . it vrs. of
iG r r S . iif

50

2i50

450

ienwrarv
uans 1 onat 1e
serriii

Centrai P a t t a r n I S beinq followad

i GO&

5 Gu:iarat

H.A.

33 trs.

10

rrs.

N.h.

----*---------------I

$75

iOGO

6 Hzrvana

i Hiaacha; Fradesh

;--.-----------Central Pattern I S

teino followed

------------.--------)

8 Jasau 6 l i a s h r i r

10 months
Basic Pay

vrs,

!O v r s .

Fish.

s5

375G

3 Karrtatakd

Basic Pav a t 33 vrs.

the time of
retirement

i t frs.

50 f

330

35G

33

G i u S SIl\.Rar for
S i t X W a D h e f s,

t r ~ i s t ~d.r i v e r s
i l i f t attendants

i G Hadhra Fradesh
i 1 Waharashtra

N.1.

33

ffs.

tG

vfs.

N.A.

375

ti0 LeiiirtG

10 months
Basic t NPA

33 vrs.

1G

trs.

W.k.

375

4bGb

nonths

:? t r s ,

:G rrs.

N.L.

275

3GO

1 2 Mariiour

10

Basic. s R i . 6
Personal Pal

IS Grissa

i6

gasasthan

ii S i k k m
12 lami 1oadc

i9

lrioura

l a s t Basic
Fa Y

20 Utter fradesh
2 1 West Eenilai

33 yrs.

10 mi. Proaortianate
t o ianpth o f
olral i f Ytnil
aer w 1ce

100

KO c e i l i n q

Coaautation of oension and Death-cun-retirement Gratuitt

adaissible to Central and State Government imo1oi;ees

I . centre
--- .--

Annexe 38.5

vrs. or

One T h i r d of

15

t h e Pansion

73 fears
of aue

11. States

------

1 Andhra Pradesh

On6

ihird o f

1;; o f ewlunsnts liast 6asic

F a r ) for each

i5

9s. G.6G iakhs

enoiunents (last Basic

Far1 for each
ionoleted 6
monthif oeriod

ii.375

?a. i.OG Lakhs

l i d o f hnolufvinq seri ie nants (last Basic

2aVl for each

16.5

8s. 0.72 iakhs

15 vr5.

the Fensian

iljrcleted 6
nonth;f oeriod
or 3/16 of

3 ASS6R

Gni! Third o f

14 vrs.

the Fension

5 rrs ouai

conoleted 6
noiithir. U6rlGd

S Gusrrat

One Third of

the Pension

15

rrb.

Death

----less than
i

i rf

5 vrs.

20 rrs.

20 or hiore

2 tires of oac
6 tines of oar
ii ttnes of oar
;:2 of the Basic Fav for each iiinoleted s i r nonthlv
oeriod of ouaiifiincl service sirtieit to naxinun of
2 3 tines G a r or Rs. 1.00 iakh rhiiheref i s less.

Commutation of oension and Death-cun-ratirerent Gratuitv

admissiole t o Central and State Government Enolitvees

16 Wadhva

Pradesh

11 Ilaharasktra

i-----Csntra:

Gns Third of
t h a Pension

Pattern-----;

15 rrs.

5 vrs

airall-

frinq

seiriie

I/; of enolirnents [Basic i

201 DAI for each
completed s i x
aronthlv oeriod

Retiieaeni

111 o f l a s t
Basic Pav for
5 rears u t t a i i - each conoletad
f r i n t l service 6 conthlv Period
o f oualifvine

---_-------

Annexe 38.5

i6.5

16.5

R s , 1.00 Lakh

serv1r.e

Oeato

-----

less thiP ' ~r 2 t i w s of oak

: - 5 r r s . 6 t i w s of oar
5 - 2C rrs. i 2 t l r s s of oav
25 or more

112 of t h e Basic Par for each coaoleted s i r . nanthlv

oeriod of oual,frinp jervicc stitiiact t o m a x t w R o f
3 tines oav or 8s. i . 0 0 iakh WhiChever i s less.

Commutation of oension and Death-cum-retirement Gratuitv

adnissibls to Central and State Government Enoioieas

i5 Grisaa

Annexe 38.5

Third o f
the Fension

Gni!

Death

----less than
I
5
20

5 vrs.

- 20 vrs.
or more

ir

2 ti%;,: c f oaf
6 i.iRSS o f o a r
i 2 tines of oar
i12 of the emoluments for ever\ S I R monthiv
oeriod subject to ualiaun of 35 times enolunents
orovidtd that amount of Death qratuitr i n no case
~ A C C ~iis.~ S!,GO

i6

Wasthan

One Third of
the Pension

laih.

fears of u e
whichever i s
iater

17 Sikkia

One Third ~f

15 YrS.

the Fension

5 us. ouali- i l l G: m l u fvinq service ments for each

16.5

Rs. 5.65 iskhs

16.5

Rs. i.00 Lakh

comoittsd S i k
month:* Geriod
16 Taailnadu

2ne Third of
the Pension

15 t r b .

5 rrs. uuali- 114 of emoiufvinq service ments [aasict

20% DL; for each
conoieted 6

mGnth;r
19

iritrura

One Third d f
the Pensioh

iS

vrs.

GeriOd

Comnutat ion -of oens ion and Death-cul-ret irenent 6 r r t u it v

adaissible t o Central and State 6overnlent Enolovees

20 Uttar Predesh

One Third o f
the Pension

vrs.

t i 4 of arolunents for each

5 vrs ouali- conrileted six
fvinp service nonthlv DeflOd

Retirement

----------

Annewe 38.5

16.5

Rs. 1.GO lakh

Geath
---a

21 West Benqrl

One'Third of
the Pension

15 vfs.

less than 1 vf
1 - 5 us.
5 - 20 vrs.
20 or #ore

2 tines of D ~ ' J
6 times of oar
12 times of oav
112 o f the enolulonts for e v e n six aonthlr
oeriod subject t o maximum of 3; times emoluments
orovided that aaount of Death qratuit'J i n no case
excceds Rs, 1.GO lakh.

Retirerent

114 of eaolua n t s for each

coaoleted six
nonthlv oeriod

----------

16.5

Rs. 0.85 lakh

Death

----less than 1 vr 2 tines of oav

1 - 5 vrs.
6 times o f oav
5 - 20 vrs. 12 times af oak
20 or nore

112 of the emoluments for evorv s i x mnthlv

oeriod subject 'to wximua of 33 times elolunents
oroviilad that amount of Death qratuitv i n no cass
ejlcceds Rs. 9.85 lrkh.

1. Andhra Pradesh

- Soecial wade
- Pronotion

t i ) After 8 fears service

l i i l After 16 years service

~ ot s scale

- An add!.
inc r e me11 t in
oronot ictna 1
:ost scale

2. Assan

Promotion is made subject t o t h s a v a i l a b i l i t y of Posts

3. Goa

l i n e bound oronations t o qrouo 'C' and 'D' enplavees

includinq those qrolro 'C' enolotees who are eiicible
t o be oroaotsil t o qrouo ' 8 ' oosts. Should have 12
'rears of service i n the e x i s t i n q oost. Mot m l i c a t l e
t o the teachina s t a f f .

t. Gujarat

3 Tine bound oronotions t o the posts carrvinq oak

naximua o f which does not exceed Rs 3500 a f t e r 3 .
18 and 21 veers o f service. For teachers the Period
i s 3 , 20 and 31 rears.

5. Kerala

(i)3 Time bound oronotions t o the Posts w i t h w s c a l e

of RS 775-1065 t o 825-tE50.

lii)2 T i l e bound orornotions t o the Posts rith Davscele

o f Rs. 350-1500 t o 2375-35GO.
liii)Direct r e c r u i t s i n the oavscele of Rs. 2500-4000 are
qiven hiqher scale on conoletion of 12 vears of service.

I i v 1 Teachers
;a1 Secondfirr Schools

------------------

1. T.G.T.
(1400-26001

i s t oronotion a f t b r 12 vrs.
2nd ororotion a f t e r 12 vrs.
and attainnent o f oostaraduate o u a i i f i c h t i o n

2.Headmaster

i s t oronotion a f t e r 12 vrs.
Rs.2200-4GQ0
and attainnent of oost-qraduate
illra iif i c a t i o n

12000-3506;

Rs.1640-2100
Rs. 20GO-3505
iiiniteil to
20% G O S t S ;

Ib) Primarb

-------

i. Teachers

- i s t vonotion after

12 vrs.

Rs. 1453-2600

2nd orornotton after 12 vrs.

and at tainnentof t r a i n e d
qradubte o u a l i f i c a t i o n

As. i64G-i9OG
(limited to

i 1200-2W 1
PGX-oosts;

Annaica 38.6

6. Haharashtra

2 ororotions to q r w 'C' and '3' enolovees.

7 . Hirirran

T i n e bound oronotions t o qroco '0' amolo~aescho have

ioaoiated 20 Years of service.

8 . Rajasthan

3 selection wades to class :V ninisteria and

subordinate eaolovees on ConGietlofl of 4. 6 and
ii vears of service.

9. Sikkis

Advancement Q r a h U Y L U he levti of J o i n t S e c r t t a r l rho

have conoleted 10 rears of s e f v i t e .

kxiiicahie ti) the enoloiees iiraiinq Day uoto Rs.3506

10. ilttar Pradecn

[ i )After

years of satisfactorv service

- One adCitionsl
inir enent i n
the form of

selection wade
(iil After 14 ~ e 8 f sincluding 6 years i n selection
wade
iiii) After 20 years of service

- Wert hiuher
prade

- One additional
increaent

(ir\

kftar 26 wars of service

- Wert hiuher
wade

11.

West Eenqal

2 Tina bound o r o w t i o n s - each aftir i G rears of

iontinuorls and satisfactorv service.

38 9

i kndhra Pradesh
2 krunachai Pradesh
3 Assea
4 Bihar
5 Goa

383,632 1,03i.51 4,476.89 4.115.12

40,960
84.33
289.16
256.66
366.283
6 3 7 . 1 6 1 . 5 M . 8 2 1.668.78
;.A.
i ,855.67 3,640.46 3.830.36
36.910
76.21 217.17
228.33

5 Glr.;arat

239.762
276.541

i Harvana
8 Hiatichai Pradesh
3 Jannu & kashnir
i0 Karnataka

Karsla

Hadhva Pradesh
Haharashtra
WaniDUf
15 Heclhalava

il
12
13
14

i 6 Wizorar

4.60
22.08

2.09
5.88

43.42
52.29
36.38

13.80
39.0i
44 62
45.76
25.43

19.802

33.25
42.06

13.08

51.281
683
632

ia.52

17.65

46.45
30.62

51.08

2i -46

30.85
11.41
34.55
49.11
34 * 25

h.4.

21.99
5.90

36.34
27.06

3i.Gi
30.51
49.18
26-77
2J.8i

ii.23

14.68

2.21

61.55

20.638
i ,059

50.3:
3.69

5 i 1 .09 3,53i.20 3.703.64

24.126

665. iE i ,607.24 1,701 .73

i57.767
319.13
182.50
12 1.23
238,103
501,36 960.00 1,096.36
537.392 1,233.91 1,336 .4a 1,182.91

li,i88
2.751

i4.45
41.30

231,762 S 6 G 4 7 i 2,047.64 2.298,09

ii6.109 1,626.1; 3.876.78 3.779.30
671.214 i.394.57 7.528.66 7,902.55
64,307
155.22
334.19
303.87
34.752
94.66
309.19
258.77
Ej.475
982,930
332,535
405.206

73.92
344.38
239.63
157.58
380.51
335.41
637.77 1.740.72 1.846.11
993.00 1.799.97 2.032.79
324,Gl 2,667.60 2.697.63

N.A.

26,126

1!.649

N,A.
N.A.

10.386
16.290
13.776 f

24 i i t t a r Frsdesh
25 West Benqal

19.195
42.67
134.21
115.27
1,151,266 1,462.33 4,251.57 1,730.79
112,348 206.33
427.00 419.54
859,501 2.044.2: 6.623.17 7,654.05
468.608
945.61 2.494.07 3.97i.25

26 Centre

3.774.396 9.043,62 52.296.00 61,210.60 108.662

21 Sikbii
22 i a t i i lnadu.
23 T r i o u r a

Note:

23.i7
23. i6

382
8.61i

18.658

i 7 Hacraiand
18 Orissa
19 Funjab
20 Rajasthan

2 2 . L3
52.86
3.22
48 -44
23.38

22.544 j

194 f
24.790
N.A.

15.763
26.125 t

66.98
36 * 54
55.50
3.6i

31.75
2d.iG
is,22

29.62

36.58

en

I .JO

6.99
7.i3

15.5i
N.A.

6.13
5.84
8.22

2.72
22.73
14.98
H,A.

6.14
6-13
6-71

N.A.
4.48
3.62

Pav L Aliotrances of tit: Centre includes HRA. CCA. G i A . C l i c k . Cht;drert Education allowance.
Reiab$rseient of n e l i i i a l ihaices and Tution fees, LTC. Trhvei i i n a a i ;oranCe
and other C o r m n s a t C r ~ d l i o m i e but does not include t h e e i o e n d i t u r e
incurred art oar a n d aiiawances o f enolorees of the Indian H i s s l a n s
abroad and t h a t o f I f l i o n T e r r i t o r i e s or the e m n d i t u r e incurred on
on o r o d u c t i v i t r 1 i q k e i boncsiad-hoi bonus, Honarariun and eniashment o f
earned leave.

390

I
1
I
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uoz

W L n r O l

mco
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a e t v
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~
o
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I

I
I
I

*
Y-)

~
Im
I
I
I

I
I

r-.

cu
cu

~I
I
I
I
1

I L U

m m
as-

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I
1 . -

I
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II c- n
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i
I1

.zl

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II

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">
c1o

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an

4 .v
2

.Uu

I t-\
n
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0L
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lI mEl
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4I
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-- - - --

. .-. m. . .-.
c-

C'>

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c-,

'0

c u r-

-0

cr,

f-

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v rI

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I

39

Our o p p m c h

39 1
Our tarns of reference require us to evolve the principles \\ hich
should govan the anolumcnts and conditions of service of Central Government
employets within the wunw. Whde studying the princlpks govemlng the
emoluments, wc fclt the need for exarmrung the espcnence of other countries A
~ ~ O n I O t a M t. w nCanpansons
a l
was. therefore, framed and fomarded
to the High CommissiondAmbassndors of Inha in 27 selected countnts Only
some couatfics rtspondcd a d d m a t i o n on several issues was found 10 be
mcuipkte. WCW to nfato many journals and reports of Intanational Labour
Organisation cud Commorr-wcalth Secretariat to tie up the loose ends. We
followed this up with a visit to wuntr~eslike Malaysia,New Zealand, Canada and
U.K.to Compldeour familisrisatmn exercise
39 2
Thschaptasummarkonly the broad trends in the remuneration
offered to pubk man& a b d . The international ucpcncnct in domizing and
administrative reforms has been discussed elscr\.hcrr in the report

SIZE OF EMPLOYMENT IN THE PUBLIC SERVICES

Tlic rupid
r-~PJsiot

riJc
public sector rnril
tltr I9SO.s

39.3

Our study of the available literature shows that by the IYhOs and
1970s. a m a p v i m in publlc sector was underway world-wide. The \vclf;lre
role cf the State had by then been recognized and taken fonn. In central and
Eastern Europe the Public Sector had come to be a basic tenet of the political
ystem. In most deyeloping economies. only Governmentscould have found the
means to c q out thc much-necdcdlarge scale projects such as public utilities.
infrastructure. industrial development. social scnic& and health carc. Thus thc
period until the I9IIOs saw a rapid cspansion in the sire ofthe work forcc in thc

Public Sector The s i a of Public Sector emplement for the period 1960-90 as pcr
an IMF stud! IS given below:-

Size of Public Sector Employment' as a percentage of total emplqment

Australia
Canada

Finland
France

1960

1980

1 on8

1989

1990

23 0

26.0

24 I

23.0

18 8

19.4

19.4

17.8
20.8

21 7

21.9

23 0

22.8
26 9
19.6
14.4

22.8
19.7
22.4
22.6

----

77

NOW?

---.---

UK
United States

14.8
14 7

23.2
21.1
15.4

25 7
20 8
14.4

27.7
19.2

---.

Public sector Emplayment here includes all Central, Regional. Provincial

and Autonomous Public Institutions.
39 4
It may be observed from the above table that Public Sector
emptolment aCCrlllfltCd for nearly one fifth of the total employment in most
countries under study in 1990.
The experiments
Iir domsiziing

39 5
Eiy the late 197% however. Pubhc Sector had becane a heavy drain
on the n a u d budgets all over the world. The early 80s brought along oil shocks.
exceptionallyhigh interest rates, falling commodity pnces and a global economic
donntwn The burden on thee>rrhequers became unsustainable. Mounting foreign
debt and merest pa>-mentsbegan to cause concern Any restructuringof the debt
by the IMF and World Bank camed with 11 the obligation of reducing the size of
go\emment It was the pressure to reduce public expenditure which became
the primary stimulus for the "downsizing" exercises that have been underway
in countries like USA, UK and Malaysia
39 6
Some information regarding the size of Federal Govenunent
employees and the amount spent on the salaries and wages of Government
cniplo!*ees was also collected by us (see Annese 39.1). Bearing in mind the
caution that needs to be exercised tihile making cross-country comparisons (on
account of differing concepts and definitions). we may. on the basis of thc
~nfonnationavailable with us. broadly conclude as foilows:I)

11)

Amongst the countries that have responded, the share of the

bureaucracy as a percentage oftotal population IS the highest in
Malaysia at 4 60?4 follo\\ed by 3 20% irl Hongkong. 2 98%)in
S\veden 2 50% tn Indonesia and Thailand. The s u e of the federal
bureaucracy as a pcrcentagc of total populatmn is amongst the
lowst in hdia and China. because of the large size of population
in these countncs
Similarly, the expenditure on salaries and wages as a percentage of
revenue expenditure is the highest in countries like Sri lanka at
60%, followed by Malaysia at 40.6% and Indonesia at 19.0%.

393

India'ranks fiRh amongst the countnes under study in terms of

expenditure on wages and salaries as a percentage of revenue
expenditure.

THE BROAD TRENDS IN PAY STRUCTURE 1N PUBLiC

SERVICES
-ABROAD

Jiz hmad trc~ids 39.7

i r l ~ c ' ~ ' s r r c c c ' r r * robserve
e
it) Ptrhiic Sccnirrs
dwotiJ Bmic

.Y,hI?

From the dmiation received in rcsponsc 10our questionnaire. we

that the pay of the public servants all over the world consists of basic
s d q . dlo\vances and bonuses Most countries have not reported tile ratio of the
basic salw to the \ arious supplements. Howevx. as per a study conducted by the
ILC. basic s a l e . constitutes 70% to 80% of the nionthi!. income in Germany. 80%
i? t-Iunga~.and72.4',';, 111 Korea. Th~sis probably because basic salan is cftcn the
only factor which is used in determining social security rights. unemplqment
benefits. old age pcnsion and the level of certain othcr allo\vmccs. It is thereforc.
important that the basic satary accounts for a larger proportion of the pay.

39 8
Most couatries have reported that allowances and other fringe
benefits are awarded to their employees in order to compensate for specific
circumstances related either to work. such as working in remote areas or
under dangerous conditions or to their personal or family situation. Others
grant allowances for specific qualifications Some de\ eloped corintnes have
reported that allownccs are offered mainly to make the public sert*:ce more
competitive While in most countries allo\vances constitute a small proportion of
pay. ID. Turk? it is observed that for high ranking civil senants. supplcnientq
remuneration makes up the largest part of the emoluments Thc lanyage bonus
and the hardshp ~!lo\vmceare both quite high and thc latter mat. even turn out to
k the largest co,nponcnt of the salary for the civd sen ants nho are worhg, in the
so calied priorin. development areas.
Real Eaniuigs

Salnrie.~in flir
puhbc servicrs
\%?-(l-\'iZ

pr,l,a,c,

llIZ

39 9
A fall in the realesmings of civil servants also appears to be
fairly universal and as per an ILO documertt. most wunmes like Argentina.
Colombia, Meslco. Pcru. Sierra Leone, Deanark. Germany. Greece. reported a fall
in tic r
d earmngs of the ci.r.11savants for the pcnod 1960- 1990 We also ok5en.e
that h e salary scales in the private sector are slightly higher than the public s t o r
in most cases ( S e e Annese 39 2) Where public senice remuneration has
&tenorated wth respect to pnvate sector remuneration. the motivation of workers
has tended to suffer. there IS a hgher rate of moonlighting and a greater dlfficulh
m recruitlng qualified ne\s \\orkers The bottom line has generall: been an erosion
IT^ the quality of public sen.^^^ That is nhy in some countries like Singapore an
attempt has been made to reverse this trend by formally bench marking the
salaries of the ministers and the civil servants to the salaries in the private

sector
( 'us/ o f L i v i ~ l ~
39.10
In thc past. the pay scales in several countries such ils Denmark.
.WrJnnrrra France. Greecc. Itat!* and United Kingdom were indexed to inflation. It seems
11 * O I At
however. that man!. countries have abandoned this ?stem in recent years The
autoniatic indexation o f w a p of police staff iu U.K is soon 10 be terminated. in
Denniark thc automatic cost of living indexation scheme was abolished in 1982
France discontinucd its quarterly adjustment of public scnicc salaries in 1980s
G e m l q . and Ital!. hwc also discontinucd this practicc In gencral. countries which

394

hate abolrshcd automatic adjustment have done so on the assumption [hat

indcvatioii tcnds to luel inflation and IS therefore iiicoiisistent with cost
mtammciit and price stability policies. Honevcr. soinc countries Iikc German!.
Pottugal. Pahistan. Switzerland do provide partially for inflation The same trend
is also obscn cci from the information collectcd b!. us (See ..\nneuc 39 2) Cost of
Lnin? Adiusuiicnt or COLA has been done m a y u i t h in most ~oiintnesand docs
not e\rist !II countries like Canada. Swdcn. Indonesia. Japan. Malaysia and
Thailand In ccrlaiii other cauntnes like Sri lanka. China and Honykong onl?
partial'compcnsation for increase UIcost of living is given. In most countries.
pay revision take place through a mechanism of collective bargaining. An
important element in such negotiations is the neutralisation of the cost of
living increase that may have taken place since the previous revision of
salaries. Therefore, although there is formally no Cost of Living Adjustment
(COLA), in actual practice &ions of salaries do take into account the need
to neutralize inflationary pressures
L)t.vpari& Ratios

30 1 I
The dlspimt ratlo between the minimum and the maximum varies
behieen 1 2 66 in Sn lanka 3 140 as reported b!* Hongkong (See Annese 39 2)
Ho\\re\ler.the mmimum and nmmum levels reported by these countnes may not
be comparable with our coly tions.

Pr+nuncr

39 12
B d on air study of the existing trends, another development we
anticipate in the structure of emoluments is the movement towards increased
variable componentof pay because of the: introduction of pedomance related pay
schemes in most countnes. We obsepie a departure away from rigid public
service pay in favour of flexible pay schemes Flesible piiy schemes allow the
public sen ICCto offm more competitive sdanes as well as to feward pedonnmce
In U K for grades below the Permmmt Secretary. the system is now entuel?
perfonnancc based and there are no autoniatic annual increases of any kmd. Earlier
there used to cmst a centralizd pa! and gading system where grade wise pa!
scales w r c negotiated centrall! and \\ere uniform across departments Now there
exists a q stem of delegated pay and giadiiig Under this system the individual
Permanent Secretary controls the pay progression of his staff taking into account
ptrfomiance. le\el of responsibilityand maketabilir? of skilIs There is a uniform
pay range for all Pcnnanenl Secretanes inciuding the Head of Home Civil Senice.
honever The level and extent of the rinse of pa! of the Permanent Sect&is
detemiiiicd on the basis ofthe advice of thc Senior Salarics Revie\\ Bod\. made up
of thrw outside members The heads of Home Ci\ 11 Service and Treasup. though
nicnibers of thc remuneration committee. do not pla?.a par! in determining their
onn pa\ Australia and Canada ha\e also introduced performancc related pa\
scheiiics \lala> sia has introduced a performance related remuneration scheme in
1992. callcd the New Remuneration System (NRS). which provides for salan
progrcssion based on mdidual petfomance differentials Four different hpes of
salap progressions have been ifitrodwed under this scheme - diagonal. vertical.
hor17ontaland static With the introduction of NRS the salaq progression of a
cnil scnaiit is no longer automatic as in the past Those who produce
unsatisfactoc nark remain static and do not recei\ e an! increment. those \\ ho are
satisfacton gct a honzontal increment. those nho are good get a vertical salan
progression and those who are evcellent get a diagonal progession. New Zealand
also introduced performancc based pa! on a widespread basis in 1988 Net\
Zealand used to have a system in ~ h i c hlife time Civil Senants \\orked as
admmistrators exautmg g o \ m c n t policies The hat e no\\ moved to a structure

related pay

wherein everybody in civil senice is employed on fixed-term contracts \4ith

pedormance reiated pay to deliver outputs that Ministers have contracted for.
39.13
It is also observed from Annexe 39.2 that the Federal employees'
incomes are not exempt from Income Tax in most countries. But then income
tax rates in these countries are much lower than in India Countries like Sri
lanka have declared complete esemption of government senants salaries from
Income Tax since 1977 Hongkong has exempted certain allouances only like
House Rent Allavane. Travel Ah\and Childrcn Education Allo\vance from
Income Tax
39.14
The international experience shows that retirement age varies
between 60and 65 years in most countries. Women have the option of retiring
at 55 vsars. 80% to 90"4 of the last pa!' dratvn is paid as pension in Sri I d a .
However no gatuih is paid in Sri lanka and the only temiinal benefit availabie is
pensions. It is also o b m e d that in most cases like Canada. Hongkong. Indonesia.
Japan and Sweden pensioners are protected against inflation. The hea\T
expenditure on pensions has made most countries think of a pension fund as an
alternative. In Japan this sckme is already in existence. Further details are
contained in our section cn Pe&ionmy Benefits
As ,will be apparent in the later Chapters. we have tried to draw
some lessons from the international experience. A major element in our strategy
39.15

to improve the productivity of Government employees in India is the

Performance Related Increment, the seed of which was derived from the
Malaysian experience. The same is true of the use of the time ciock even at the
level of Prime Minister and Cabinet Secret-.
Our suggestion about increase in
age of retirement to 60 is based on international esperience. We also drew
mspiration hthe trend towards right sizing of the bureaucracy in almost all
the countries. Our recommendations on Pension fund take into account the
lessons learnt elsewhere.

39 16
There s a need, m our opinion. to have a mntmuous update 0x1 our
i n f d o n about what 1s happenrng to the bureaucracies of other countnes It is
imperative that we join hands with organisations like the ILO and the
Common-wealth Secretariat to generate information about the major trends
For thls purpose. the Dcpartmmtof Personnel may bnng out an annual publication
on Public Services in India. summarizmg the broad trends. and encourage other
countries to do the same Exchange of information through our diplomatic
missions abroad should also be done on a regular basis

Annexe 39.1

2. Canada
3. France
4 . Sweden

2.26
1.5
<--------------2.60
N.A.

0.77
<--- not reported---->
not reported----------------2-98 (---not reported---->

*
5. China
6. Hongkong

90.00
1.97

7. Indonesia

45. OO

Japan

8.39

9. Malaysia

8.80

10. Sri Lanka

4.30

*
N.A.

0.75

<--- not reported---->

6.6

3.20

<---not reweed---->

L-

19.0
1990-91)

2.50

3.0

(1990-91)

N.A.

N.A.

<---not reported---->

12.9

4.60

11.8
(1995)
(1995)
<--- calculated--->

N.A.

2.47

60.0
(total
revenue 1

**

40.6

not reported

11. Thailand

15-0

N.A.

2-50

18.9

4.8

12. United Kingdom

5.33

N.A.

N.A.

N.A.

N.A.

13. India

38.9

1.2

0.46

13.6

2.1

**

***

***

Total of Central and Provincial Government Employees.

Of total Govt, Expenditure
white Paper on The Civil Service: Continuity and Change in U

1, Australia

2 , Canada

Large
Nos.

:art16
Nos.

The Austa-

1 : 7.66
l i 8 n Public i i 1 . 3 1
Senice
ooerates
H i t h i n the
Federal
lndus tr i a 1
Relations
Svsten and
neqotiation6
are heid
between
Govt. 4 'irade
Unions.

lio foraai
;inksqe
but an
1 n f or na i
relativitv
i s Maint a ined

No d i r e c t ;ink
betwean l u s t r a l Ian
Pubilc Service cat
increases and cost
of iivine.

Collective 1 : 3.15
No formal
Erceot oost o f f i c e
baraa i n ine f 31.10.91 I 1inkaoe
eM1ovees. none
but r e l a t i - of the eaolovees
between
vitv
salaries orotected
enolover &
rith Private b;r cost o f l i v i n i l
euo lo fee
T i 1 1 suaier
Sector i s
allomce.
maintained
o f 1337
co 1 1e i t 1ve
Howe~er
barqa i n inii
oubl i c
banned.
salaries are
deliberatel!
Instead.
incraje i n
keot SI l o h t l v
locer tnah
ta4es
r est r 1c tad
the Private
Sector.
t o 3X o w
7 2 months.

39 8

Not
erei~ted
fi;z

iilcme
iat..

Not
ewamoted
from
Income
Tar.

Annexe 33.2

1. Sweden

No f i x e d
D ~ Ysca-

les. Ebch
eaDl 3v in4
aqen:v

based on
its
reoui renent cbn
hira
OeODie.

5 . China

i 2 qrades
riih
51 i ar ias
ranqinir
from
iis S i 8 . 3
to SiJb.6

Rav ised
throuqh
neqot ia tions
between
Associations
of emolovers
and emoloveef.
rarious
factors
iike
i n f 1a t ion.
Economic
conditions
eic.
considered.
not. reoorted

1 :4

Yes, Govt.
servants
srlaries
rdiusted
tr, market
:eve Is.

i :a

i 19931

r!at
rzoarted

39 9

i o u i ~ a l e n tof DA
doesn t exist.
Cask of l i v i n q
index i n d i r e c t l v
constitgte MI
iaoor tant f ac t o r
for n e w t i a t inq
h i Q her incr enan t
i n danes.

Mot

Inflation
ad.justment
i s aiihoi
arid i s oaid i n
the f o r t o f
i l i 61 iorance.

Not
ekeno ted
from
income
Tax

exemtad
from
Income
Tar.

Annexe 33.2

6. Honakonr

455
wades
i250
ranks
or job
ieveis
oav scales for
d i ff ereG
4rOUDS.

(unified
tivil
Service
comn
aooo in t

rent

orocedure
disciol inrrv code
rnd
condit ion8
of
service)

Revised
on the
basis O f
the
f indinos
o f the
annual
survev
conducted
on the
erol ulents
rdrissible
i n the
Pr ivrte.
Sector.
Othar

1:10
119951

Linkaqe i s
recoqnised

Increase i n the
cost of
fornallv and livinq i s
ouatification an iroortant
benchrarkina considefat ion
but not f u l l
exists.
cowensat ion
i s qiven.

Not eeeaot
f ron

salarv
tax.

ftCtOf8

like
cconeric
conditions
BUd!l&rV
constrrints.
cost o f
l i v i n e etc.
:ons idered

7. Indonesia

1 qrouos
of oav

scales
varvinq
with the
lenqth of

service.

Not
automatic.
Revision
done
throuqh
oresidenthl
decree
and 6avt.

reeulations.

1:6.9
I19951

No linkaqe
but Davsca 1es
in the
Private
Sector are
hiqher a t
the hiqher
levels
and lower
a t the
li(ssenwr
levei

No rllowrnce
to coroenfata
erosion i n real
income or oaf.

6overnaent
eao 1ovees
oav incone
tar
notiona 11v,
Govt. oavs
income t a k .
i n lieu.
which i s
15% of

salarv
irresoect ive
of ranqe;
amount
of inioae.

Annews 39.2

a. Jaoan

larw

For o f f i c e r s Can't be

Nos. i no

NPA lakes

fixed oar'
scales)

9. Ha;avsie

10. Sri tanka

11

BY o ~ e c i r l

Officer
level
scales

cabinet
c m i t tfi
every 3 vrs.
but not
autwtic.

9 salar,

Revised bv
a oerlanent
salarv
cadre
cowittee.
A t t i w s bv
Hiqk Powr
CoHit tees.

scales.
uniform
across
a l1
the 3

ser ViCBS

NPA

calcujated attenots
recowoni n Jaoanese t o brinq
NFI salarv
dations
Govt.
a t oar riith
and for
-i
ndust r ia1
-PL;t .Sector
Iroiicit
staff i n
relationshio
Govt. enterorises
betueen
through
Govt. t Fvt.
collective
Sector salarv
scales.
barpa hinq.
1 : 3

1:2.66
Ratio
between
Sac r et a r v
and entrr
level of
officers

CCLA doesn't exist. Not

salaries o f
National Public
Inolovees revised
t o offset
increasi i n
cost of
l i v i n q index.

exerot
from
incole
tax.

HO
COLA has been
relationshit donh LWIV with.

not
ererot
froa
inconr
tax.

no fcraat

COLA e r i s t s but

rehtionshio exists.
Pvt.Sector
i s oaid
t r i c e as
ruch that
i n the Gov!.

not linked t o
COlI. It i s at
discretion of.
Govt. t o sanction
cost of i i v i n a
allJrance.

Ertroted
fror
Income
tax
since
1911

Annexo 39.2

1 1 Thai land

oav

On the
rsconren124 stsosl dations
Generso f the
l i s t and
Civil
SoeciaService
1i s t s
Coiriss ion
6eaded b y
and too
ranacleaerit P. W. /DeDut i
Qrouos are P.W.
civen soae
additional
allowances.
11

scale6

1 :9

Inforral
relatiritf
uit!! the
Pr ivate
Sector i s
uintained.

No aalrivalent o f
DA i n Thailand.

Infact, salaries
o f C i v i i Servants

are refised
f r eauent 1v
t o take care o f
increase i n the
cost of l i v i n q .

Basic
salarr
and most
of the
al lowances
subjected
t o incoae
tax .Hor;ever,
certain
a1 louances
l i k e MA.
TA, Children

Education
A 1lowtnce
etc. are not

taxed.
11 India

:402:

Tenm <g
mJkmlce.

40 1
We have bam immcted in our Terms of Reference to "evolve the
pnnciples which should govun the structure of emoluments a d those d t i o n s
of service.of Central Government employees which have a h m c i a l bearing".
Earlier Pay Commissionshave also grappled with k s subject. with varying results.
It is not our intention to traverse the same ground. We would cinly draw attention
to some emerging trends and the impact it has had on our thinking. while taking
decisions on pay determination

.Uexo-rrctid*

40 2

As we move towards the twenty first centur?;.some trends have

come into sharp focus and these may be briefly referred to as under :

a)

We are moving towards a period of less visible yovernancq.

Governments will mcreasingl: whdraw from direct control of
mining. manufactunng. trading or sen ice activities. The
emphasis 4 1 shift to facilrtation and regulation of ensuring and
refeieeing the fair competition among private. cooperative.
corporate and other non-govcmmental forms of enterprises.

b)

With the thud k r of sovemancr being formally mandated by &he

Constituticm there would be progressive need fm reorienting the
bureaucraq to provide effective coordination of multifarious
activities, at the Pancha)ati raj level. This 'would require
substantial reduction of burcaucrac: at Central and State levels
and its strengthening at the lowest level.

c)

There \vouM be a,steady and persistent pressure on budgets.

which will force go\'emments to right size the burcaicrac:.
drastically

403

d)

At the same timc, thc wagc levels m other sectors ~villbc so

volatile as to incite governnient employees to collective
bargaining mcthcds for bringing about pant! with the
conipensation packages atalablc clsewhcrc Thc net rcsult would
bc that gotcninicuts \\odd bc forccd to have less pcoplc and pa!
them bcttcr

e)

Thc uciid uould bc totvards an onicer-oriented administrativc sct

up Thus t h e tiould bc 3 tcndcnc! to\\ards reduction 0 1
numbers at tlic supponing and ausilian. levels Such reduction
would be achicvcd through multi-skillmg

f,

Thcrr: \\odd bc a grcat cniphasis on professionalisation of'

Got cnimcnt. as a r c h ofuliich the compensation pachagcs of
all professionals I r k managers. doctors. scicii~ists.coniputcr
profcssionals ctc \\odd havc to be specially jacked up

.\ /<J'/I/ii''/
prlllc f l J k ' 4
IZC

e.3

wri

40 3
Vieivcd in thc light of tlic aho\.c iiicga-trcnds. thc application of
the princip!cs of pa\ dcleniiiiiatioii as cnunciated by the previous CPCs \ \ i l l
iindcrgo suitable nioditications We hat c tricd to do so i n thc nianner dcscribt:d
hcrcaficr

CHARUTERISATION OF A SOllND P.4Y STRUCTURE

7llrl%*
clr:mi&ttw.c:it .c

40 4

l l f ~ ~ l \WfI,.\.\
Il.~f

40.5

Inclusiveness implies that the broad patterns of pay scales that

have been adopted' for the civil services will be uniformly applied evenwhere.
especially in area$ where some autonomy has been provided.

.A Nppitt.d t r )
n 1%

40 6

The earlier CPCs had referred to three characteristics 01 a

sound pay'structure - inclusiveness, comprehensibility and adequacy. There
is no doubt that these characteristics are as valid oodry as ever.

We would like to point to a feu instances of departnients \\ hich

ha1.c no: put their autonomy to thc best use and have infringed the principlc of
tnclusiveness The scientific dcpartments \\ere allotved at one stage to dct isc'
wrtan special schemes for a sinmdicr and quicker carwr progressioii of'sciciitists
Initially. certain parameters w r c held to bc sacrosanct For cuamplc. hen the
Flcsiblc Complementlng Schcriic \\as lauiichcd it \\as mean1 to bc applicablc oul\
to Group 'A' scientists cngagcd i n rcscarch and dci elopnient Unfortunatcl! . 01 cr
thc years. FCS has degcncratcd into a routinc time-bound promotion sclicnic iiot
on]!. for Group A' scicntistscngagcd ln R&D. but c\ cn scicnlists of Group B' aiid
'C' catcgories. e\cn scicntists not ciigagcd in R&D. and cvcn non-sriciitists lihc
artisans. ininisrerial staff and thc lihc Wc hat c had to talc rcsort to tlv priiiciplc
ofuiclusivcncss and iiiodih the FCS so as to mahc it applicable onl! to Ciroiip A'
scicntists oncc again At thc miic time. \\c ha\ c broadened its application in thc
iicw niilicu to all Group .A' RK:D prdcssioiials Thc principle ol iiicliim ciic's~
liistifics a coniparisoii ktnccrl protkssioiials ol dill'crciit disciplines INII tIic\
should bcloiig t o Group A' and bc i n \ olt cd 11ilh rcsearch ;wd dc\ clopiiiciil

1\

qqI/l',l/

t~l'/l'>l<
1'

Xnothcr c\amplc is that of thc gradc stnicturc prc\ a h iii the

rail\\a!s. as opposcd to the dcfcnce production uniis The rclatnc autoiionn
ciiio>cd 5! thc Raiha! Board bccausc of its pcculiar adniinistrati\e structurc
ciiablcs thc Rail\\ a! s to resort to solutions that camiot e\ en bc conceii ed of b\
other departments. least of all b? a consenatnc department lihc Defence The
uiiioris 01' the raili\a!s also haic grcater bargaining po\\cr. as compared to thc
dcfxcc associations Resultantl! . n c found that tlic intergrade ratios achiei cd b\
thc raiha! artisans were much supcrior to thosc prei dent in defence production
iinits In thcop the rail\\a!s had arrncd at these ratios through a meticulous
cwrcisc based on fictional considcrations In practice. the fact that all such ratios
in diffcrcnt disciplines \\ere the same told a different stov It could not eicii bz
agiied m e\tcnuation that qfustication in t e r n of techiioloq in the r a i h a! s \\as
superior to that pre\alent in defence production units Wc used the principle of
inclusiieness to grant a supenor utter-grade ratio to the defence units. based on the
s\aiil!>!c CC the r a i h a! s
A() 7

/<,

I! I1 \ I l l 1

~ ~ ~ w p r e h e P , ; h l / l i lJ()

Coming nest to coniprehensibilih. \\I: a g e e with the finding of

the previous CPCs that a pay scale should normally give a total picture of the
emoluments of a post, rather than being fragmented into P number of
allowances. We have, t5erefore. tried to rationalize allowances wherever
possible This rationallastlion has been attcmpted in a number of nays

Iti~~1/"0'~

a)

Where hvo allowances \yere found to be subsenmg the smie

object. we have abolished one of them This has been n e c e s s v .
especially beca~~se
of the scheme Df Performance Related
Iricrerncnt.

b)

There arecases where a number ofallonmnces !\crt' being grruitetl

for h e siune gencral purpose In such cases. the allmances ha\ c
been merged into a single allo\\arice and givcn a gencric namc

d)

Wc ha\ e tried to abolish spxial pa! s in a nunibcr 0 1 cases rind

auarded a higher- p?\scale iii IICLI thereof. :ii ordcr to LJII c n marc
traiisparcnt pa! pachagc to thosc posts

The third rcquirciiicnt is that of adequac! Most go\ cniiiiciit

cmpln! ccs ha\ ::a focllng tha! their cniolunicnts arc inadcquatc \\ith respect to tlicir
shi!ls. dicational qualifica!ioiis. c\pcrieiicc dutics and responsibi1it:c.s. but also
as co:iipard to their p
e
e
s
r outsidc the G a cnunent We \I 111 be dealing \\ ith tiit'sc
qiicstions latcr in this chapter
40 9

SI'PPL!' A N D DEhlAND CONSIDERATIONS

considerations. .Totake a single illustration. it is quite evident that an entrant to

Group D Service today would be available even at Rs. I500 or Rs.2000. not
because these amounts are sufficient but due to the unemplo!ment situation in the
countT. We cannot. for that reason. avard \en. low pay packets to the entrants to
Group 'D' semices.
rrigii-wcIff'
i%[U~id.%

.\ f i i i i i n i i r n t i r i d
\ fnnrriicirr If i z p .

40 1 I
On the other hand. there are hIgh-nagc alands like those of airline
pilots who command a vev. high price due to supply and demand considerations
\Ye ha\ e taken these into account \\ hilc deciding upoii the total packages for BSF
pilots or the pilots of fighter aircraft in the Indian Air Force. although we ha\ e not
been able to take these an!i\here near \\hat is being offered in the privatc sector

12
On both the niininiuni and mawmum tiage. \\e ha\e tried to
c \ o l \ e other more humane. rational and realistic criteria and these ha\e been
c\plained at great length in the relei ant chapters
J()

I EQUAL PAY FOR EQUAL WORK I

c,c/ictr/

1j

As a principle. the equal pa! for equal work' criterion has been
used ividei! b!. the higher C O U ~ S Incidcntall!.. it ma! be mentioned that the
Canadian Human h g h t s Act has furthcr amplified the concept to include "equal
\\ages for equal 1 alue of \\ark" Theorcticall!. n o t h q can be said against it In
practice. it is estremel!. difficult to define \\hat equal work is
J()

40 I 4

.Jnh Etnlirotioti

Job evaluation is a technique that has been practised in some

departnients The Expert Classification Comnuttees of the M i n i s 5 of Defence are
one example We had also appointed intcr-Departmental Committees for se\ era1
coninion categories Where the categories are nearly the same 111 terms of
qualification. job descnption, designation. method of recruitment, promotion
avenues. etc .there has been no difficulty md \\e have been able to suggest urufomi
scales of pay in model cadre structures for adoption by all the concerned
departments Wherever it was found that most of the parameters matched and one
or t u o did not. we ha\e suggested parih in pay scales subject to qualifications
being upgraded or resort being had to direct recru!+ment

Rr/tifivitir.\

40. 15
Milch more intractable are the questions of horizontal relativities
between sa!. a forest guard. a Constable of a central police organisation. an cum!'
soldier and a shlled artisan. There is a lot of histon, in each equation and each lack
of equation. We have had to take the bull by the horns in such cases and a m \ x at
certain conclusions based on our Senera1 csperience. For example. we ha\c
equated Forest guards to the Constables of CPOs. but we have maintained the
differentials behveen the CPO Coristablc. the Arni!. soldier and the Skilled artisan

\ l i i i i \ t ~ v - t t t /~ r r r t l

. - I r t i w i i 1 rir/rc,\

I (,
There tvas a c c m narpcd relati\.ih betueen the ministerial and
artisan cadres Whilc thc LDC (Rs0 5 0 - 1 C O O ) \\as promoted to l!DC (Rs 12002040) and then to Assistant (Rs 1400-.??00). the skilled artisan (Rs 950-1500)
rosc to Highl! Shlled I1 (Rs I200-1XOO) then to Highly Skilled I (Rs 1320-2040)
and then to master craftsman (Rs 1400-2?00) Wc nicrged the scales of Rs 12002040. Rs 1200-1XOO and Rs 1320-2040 to a m i e at a single scale of Rs 1320-2040
Oiic rung out of the t\\o Highh Skilled categorics \\as made to disappear This
has pro\.idcd somc relief' to the artisan catccop

f()

Qunlijicariotihnsr d p q v scales

40 17
We are suggesting m a later chapter that there should be a
permanent pay body. so that it can keep on studyng the parameters o f different
jobs and develop more objective cnteria for job evaluation than are available at
present Although it IS not ven. scientific or conclusive. we felt that as a

preliminary step towards rationalisation, the entry qualification could

provide a fairly reliable clue. It will be noticed that we havc attempted a broad

rationahsation of pay scales across cadres and departnients. depending on whether

the e n 5 qualification is middle pass. matriculation. 10+2. matriculation with ITI
Cemficate. 10+2 with a 2-year diploma. 10+2 with a 3-!ear diploma. an ordinay
degree. a degree in agriculture. horticulture. Ian. engineering. etc or a postgraduate degree The results may not be perfect. but one can have some
justification that a1 ieast the educational quaiifications ha\ c been reccgiiised

FAIR C O M P A R I S O N
40 18
We have used "fair comparison" to a large extent in our
deliberations I n almost every discussion, we have tried to make comparisons

across cadres, departments, state governments, public sector enterprises,.the

privatc sector and even internationally.

40 i9
As a general obsmatm it \ v d d be weful to point out that while
the Central Government's pay scales used to be. once upon a time. the leading pay
scales. it is no longer so Banks. PSUs and the private sector ha\re marched ahead.
for obvious reasons But that even the cash-strapped State Governments should
pay their employees more is surpnsing. The Junior Engineers have given a
comparat,ve statement of pay scales granted to Junior Engineers by the vanobs
State Govcmnients. the State Government scales seem to be higher Same is m e
of the police personnel. Even the Provincial Civil S m i c e Ofticers now have higher
pay scales than IAS Officers, with the result that their adjucMneilt on promotion IS
becoming a problem
A

40.20
What this means is that the Central Government has been
somewhat consemi-tive in granting pay increases. This shows that the control of
the Minis- of F:nance over pay scales is quite stringent That tlus is so is also
exhibited by the tight control exercised on the sanction of posts The Central
Government has witnessed a compound growth rate of just I% per year in its
civilian posts
There are two conclusions to be d r m n from this First. it is
40 21
necessan for the Central Government not onl? to control but even to reduce
numbers Onl? thc requisite poliucal and admuustrative I\ 111 is required Secondl! the Ministn of Finance being so conservative during the decade mtenening
behseen thc Pa! Conunissions. a greater responsibility devolves upon any Pay
Commission to be reasonable and pragmatic, and try to bridge the widening
gap betwwn the compensation packages of the Central Government and the
rest of the ecmomy. We hope that we ha\e perfomid our tasb \iell

-107

As far as productivie is conccmcd. u e have devoted a full chapter

40.22
to 11. which we commend for close scrutiny

I MODELEMPLOYER I
40 23
As stated above. the Central Go\~emiiien~
is no\\ neither the model
employer not a g d employer With its burgconing budgctac' de!icrt. the on]!
hope of the Central Govcmnient bccoming a good eniplo!er IS for it to right size
the burcaucmcy fitst and then pa!. it adcqratel!

FUR

APPROACH TO PAY DETERMINATION

40.24

We \ \ o d d like to state that therc is n niod~cumof' truth and

~ h v inmeach of the gencral pnnciples of pay detcnnination that hat.e been used
in the past ln addition. \ve woiiId like to state a feu niorc critcria thal \\e ha-.c
found to be useful in our analysis
l l l r r l l # s l ~w f r t c 01
41

pjh

Linking .vnaIlercRt!irtie.v 10i a r p r

fme.Y

L)c4itihi,ig pay
Iron1 positif>Il

Irl\trcr t o

<Ill

[ 'ctitnil

( l o ) cnitmvit

m p / m t'I'\

40 25
The first is the "intrinsic value of a job". This is a sunmiation
of d the factors that one can t h d of in relation 10 n job - the skills. thc
arduousness. the uoib atmosphere, the qualification. thc rccniitment procedurc. thc
c h m of career progession. the status. the securih . the prestige. the perquisites c\ enthing that is quantifiable and non-quantifiable
40.26
The second is tP? need to link smaller entities to larger
entities. Our attempt throughout has been to collect isolated posts and place ti .II
in a cadre. pick up cadres and put them in a senice. We ha1.e suggested new All
In&a Senices for nidcal and engmeering fields and Central Senices in the fields
of veterinary science. agnculture. informatics. shipping. archaeoloh?. archives.
libray and so on.

40.27
The third is the need to delink pay from position in the
hierarchy. The entire schcme of Assured Career Progression is about granting ii
person pa!- upgradation. when functional considerations do not permit his risc i n
the herarcliy. He continues to perfomi the same job as before but moves into the
next higher scale. The idea here is the basic one that a pcrson needs more money
as he becomes older. but he ma!. not receive a promotion because there is no I zed
for another post III the herarch!.. Our effort is 10 rclie\.c stagnation \sithout unduly
upsetting the hierarchy
40 2x

The fourth is that we have recognised the need to be evenhanded in justice towards the lowest and the highest-paid functionaries. For
the entrant to Group D, \\e have gn en a junip of'3 75 tiiiics. much more than \\hat
our consultants had suggested For the higher cadrcs \\c hats introduced thc
concepts 01' full neulralisatioiiof cost of 111 ing and gi\ 1112alloitanccs and pensions
nct of UICOII~L'ta\ so that tha reccnc the full compensation pacbage as dscidcd b\
us. \\ithout its being dcciniated b\ inflation or ta\ polic\

l j < l l l l I Oil

crllr I U t l ) l ( ;'\

( ~ l / l ~ l L l // If ! / M l l

40 29
With regard to allowances, our policy has been to recognise
that these should either reimburse in full the expenses incurred by the
employee (as in the case of travelling allowance, daily allowance or medical
reimbursement), or the reimbursement is more liberal than at present (as in
thc case of housc rent allo\\ancc or city compensaton allouruicc). or the
compensation for loss incurred i s raised substantially so as to niatch the loss
(asin thc case ol'blon- Practising Allouance) In some cascs. \\c,ha\t. bceii forccd
to sanction nc\\ allcnnnces like transport allowance (in kicu of the him?
expenditure tncurrcd on cotiiiiititatton bebyeen office and rcsidcncc). attcndant
allonance ( i n \ icu of ~Iicfact that large number of officers ha\e orderlies and
batmen and on]! a fcn do not) or cntertainment allowance (in vicu of thc fact that
oflicers partahc ot'dinncrs \\ tth other people and should be in a position to return
the hospitalit! )
40 30
Above all. we have always kept the capacity of Government
to pay uppermost in our mind. The financial implication of cach demand was
calculated In detail and decisions to accept. not accept or only partially accept a
proposition depended largel! on the expenditure they involved We are happ!. that
n e hi?v\lgbeen able to accommodate some of the demands of the employees without
unduly inflating the pa! bill of the Government. I n the final analysis, we shall
consider our efforts worthwhile only ifwe have succeeded in maintaining a
balance between the interests o f the Government and the interests of the
employees.

409

1. 1
When u c come to the nuts and bolts of dcterniination of pay
scalEs i n Go\knnicnt. u e realize that thc lirst cxsrc:sc IS soinshow to fix the tivo
ends of the spectrum. Once \ve arrive at [he minimum and maximum salaries on
the basis of rational and pragmatic criteria. I t becomes rclati\.el!. simple to deduce
the scalcs \ihich fall in between. We. therefore. s t m our aial\.sis by considering
the \arious parameters that ought to be kcpt in \.ie\\ \\-hi:e fixing the minimum
salan

Ow t i ~ ~ p r o ~ i ~ . I i4

41 2
Although m the contest of the Go\ emnient it is more relevant to
speak ui tcrnis of m m u m salaries, much of thc literature deals with the concept
of m m i u i n !\.ages We may. thersfore. take these temis as broadly synon>mous
for the purpose of our general understanding

I LEGISLATION ON MINIMUM WAGES I

The \frrriniitrrr
lllg,~\.k/l o w

41 3
B!. 1938. legislation on niiiiiinuin \\,ascs \\as firml! in place in
most couiitrics like Australia ( 1896). Ne\\ Zealand ( 1x94). Great Britain ( 1909)
and USA { 1938) The evolution of mininiuni uagc legislation in India. can.
hone\ er. bc traced back to the Minimuni Wages Act of 1948 The Minimum
W a g s Act aims at preventing exploitation of \\orhers in scheduled employments
b!, f w i g niiimum rates of \\ages The covcragc of the act IS selective. as it aims
at protccting uorkers m m l > rn the unorganised industrics The Act empoijers the
Got enunent to add to the list of emplo>ments % I \ cn i n the schedule and prescribcs
that tlic miiirmuni wage should consist of basic and 1ar:able elements ( n i t 1 1 or
nithout IinLagc to the cost of In ing) Whal thc Act docs not comment on I S \\ha!
should go into the deterniination ofniiiiiiiitiiii \\ ages

410

Article 43 of the
Cotrstirurion

4 1.4
The role of the State in securing a living wage was rccognised in
the Anicle 43 ic the Constitution of India, under the Directive Principles of State
Policy which rcadr; as follows.

"The State shall endeavour to secure by suitable legislation or

economic organisation or in any other way to ali workers, agicultural.
industrial or otherwise. uork. a living wage, conditions of work ensuring
a decent standard of life and full enjo!ment of leisure and social and
cultural opportunities and. i n particular. the Statc shall endeat our to
promote cottage industries on an indit.idual or cooperati] e basis in rural
aieas
'I

r/Je 15113 ILc

llY57/

41 5

15th Indian Labour Conference in 1057. that for the

first m e thc concept of minimum wages cnstallized and a coiisensus was arrived
at about the factors \vhich should go into the detcniiinatioii of niiniiiium n a p
It \\asat the

The norms ucrc to be as follows

(a)

Threc consumption units for one wage carner i e four

consumption units per famil!

(b)

Minimum food requirement of 2700 calories per a\.erage Indian

adult

(c)

Clothing requirement of 72 \ w d s per annuni per famil!..

(d)

Rent correspmding to the minimum area pro\.ided for under

Go\ emment's Industnal Housing Scheme

(c)

Fuel. lighting and other miscellaneous itenis of espenditure IO

constitute 20% of total minimum wage.

Thus. in 1957. Minimum Wages' evolved as a need-based concept.

1LO (1 968)

41.6
In 1968. a few more critaia for detemkation of Minimum Wages
came to bc recopnised when the Internztional Labour Organisation listed thre
critena for fixing miriniuni wages. These were (I) the needs of thc worker. (li) the
capacity to pa\. of the employer and (iii) wagis paid for comparable \\ark. In 1969.
the capacih to pa\. ivas explicitly admitted as a relevant factor b!. the National
Conmission on Labour. \\hen it held that in fising thc necd-based minimum w g e .
the capacit\- to pa!' should be explicitly taken into account.

Strprenrr ( 'ortrt

41 7
In 199 1. the Supreme Court in a judgement i n the case of
Reprcrkoc.,Rrm and I b VL"SI~.S olhers oplned that the criteria recommended by the
Indian Labour Conference 1057 nLu' not suffice It held that an additional
component for children's education. medical requirenicnts. recrcation including
fzjtwaldceremomcs and provisions for old age and marriage should constitute 2%
of minimum uagcs

frrrfSt.ntL"tr1991

41 I

productivity and the appropriate Government under Minimum Wages Act may fix
piece rate wagcs wherever feasible.
ILO

11 9931

41.9
The Indian Labour Conference in its Thirtieth Session in
September. I992 opined that while thc tendenc! to fis minimum wages at
unrcalistically high levels must be checked. implenientation of w g e s once fixed
must be ensured. It felt that the implcmciitatioii machinen.. consisting of labour
administration in the States. had bccn far froin cffccti\.c It ivas dcsirable that I?
grcatcr role \\as pla\.ed by \yorkcrs' organisations. iioii-~c~\~criiiiiciital
t-oluntan.
organisations ctc. instead of enlarging thc arm!. of inspectors for this purpose

The subject of a National Minimum \Vage has bccn considered b\

sc\eral bodies and fora in the past The National Coiiirjiission on Labour ( IcW))
i t a s 01' thc \ ic\\ that such a \\age in the v x s c of n iii1lfclr;il minmiuni nionetan
remuneration for the count5 as a ~ h o l \\as
c ncithcr fcasiblc nor desirable in \'ie\t
of thc 1arimo~ii n priccs across regions and dlffl-rcnccs i i i capacit? to pn! across
ernplo!ers The 2Xth Indian Labour Conderencc ( 19x5 1 also discussed the need for
a national minimiiiii \\age It mas felt that t:ll such timc as a iiational \tagc bccaniz
feasibl?. it \ \ o d d be desirable to hale a rcgional iniiiiiiiuiii for \\ hich thc Central
Go\ crt~iiicntina! la! the guidelines
41 I 0

~-~~~
~~~

APPROACH O r THE PREVIOUS PAY COMhlISSlONS

41 I 1

The foregoing paragraphs \ \ o d d indicate that the subject of"

appcnr to bc sonic of'
Minimum \Yagcs is steeped in coiitrot crs! The !olio\\ 111s
the approaches for the determinatmn of niininiuni \\ agcs
(1)

(11)

(ill)
(I\)
(1

(1 1)

The need-bascd approach

Capacih to pa! approach
Relative parities approach
Job evaluation approach
Productivit! approach
Living Wage approach

41.12
The decision of the previous Pa!, Commissions on minimum
wages \\as often determined by sonic land of a hamionization behveen the first t\vo
i.c. the need-based approach and the capacit!. to pa!: approach. This \\.as essential
because a niinimuni \\age which \sas found to be sociall?, desirable \\'as not
nmssmly economically feasible. Job e\.aluation and iiicasurement of producti\.it!
was not found to be feasible by the earlier Pa!. Coiniiiissioiis and fair coiiiparisons
\i.ith the public and private sector \verc also not coiiccdcd b!, them. Regarding
Iivmg wages thq. obscn.cd that a Iiiing \\age i t as n dcsirablc Ic\cl tot\wds n.hich
the Statc must endeavour to reach. The concept ho\\e\ cr IS inhcrcntl!. clusiye. f'or
it ad\mccs \\it11 the prospent) of the ecoiioni!. or Statc It ma!. bc of sonic intcrcst
to note ho\\. !he different Pa!. Commissions ha1.c addrcsscd the problem so far
The First CPC obscncd "The t h e o n dial Statc should DC ;I iiiod~.\
eiiiplo\ cr rcqiiircs that a Go\ crnrncnt \ \ l i d 1 propo\c> to sponsor minimum \\ 'ig~.
lugislation for pri\ ate industn niust bc read\ to 211c the bcncfit of that principlc
to its w i i ciiiplo!ccs
The application of i i i i i i i i 1 i u i i i \\,igc rulc has a h a \ s b w i
izcoyiiscd to bc sub lcct Lo the limitations iniposcd b\ thc general cconoim
41 13

Among the Mcmbers of the Commission. opinion is not unanimous on the point.
After sonie discussion, majorit? of the members agreed that Rs 55 per mensem
(made up of Rs 30 as basic s a l q . and Rs 25 as dcamess allosvance) would be a fair
minimum \\ age "
The Second CPC \\as required to make its rccomniendations on
minimum wages in the backdrop of the Fifteenth Indian Labour Confcrence .A
consensus had b! then e\.ol\ed on the need-based norms for determining the
niininiuni \\ages Rcgarding the figm of Rs 125 arrncd at on the basis of thc
noms prescnbcd at the ILC. the Second Pa\ Conutussion obsen cd " This uould
be about 70 to 80 per ccnt higher than the rates Sciierall\ pretailing in the
orgarused sector atid ti \ \ o d d be \\ell abo\e the highest \\ages i e Rs 1 12 then in
We ha\c considcrcd i f a niininiiiiii
thc cotton tcwlcs iiidiJstn in Boiiiba\
reniuncration of tliis \l/c IS '11 311 fcasiblc at the prcsciit Ic\ cl of o u r ccoiioniic
dcielopnicnf The ni1ninium I\ agcs cannot be ofthe ordcr of Rs I li nhcn on the
basis of National Income the a\era_re for a farnil\ \\3rhs out onh to
Rs 97 nunmium rciiiuncration pa\ able to a Central Go\cmnicnt ciiiplm cc \\hich
at present IS Rs 7 5 pcr month shculd bc incrcascd to Rs XO
41 14

"

41 15 The Third CPC' also based its approach on the 15th Indian Labour
Conference nomiis and calculatcd niininiuni \\ages at Rs 3 I4 pcr month This.
when compared to thc thcn ewsting cniolurnents of Rs 170. \.\auld ha\ c meant an
mcrease of 80-90 % The inininiuni s d i q in pri\ atc scctor rangcd from Rs 170 to
Rs 385 Ho\\e\er. the Third CPC did not accept coniparisons \\it11 thc prnate
sector As thcrc custcd a iicws k t v c c n the pnvate and public sector salarics. the!
did not accept cooiparisoiis \\ i t h the public sector either The\, relcctcd the Indian
Labour Confcrencc iioniis on tlie gound that Central Co\crnmcnt cniplo\ ecs could
not be treated as a speciall! pri\ ileged section ofthe coinmunit> and guaranteed a
need-based m n : u n i uage as per the Indian Labour Conference norms. when the
barest essentials could not be provided to nullions of their less fortunate
compatriots The Third CPC calculated minimum wages at k;I96 based on
modifications of Indian Labour Conference norms as suggested b! lnstltute of
Applied Manpower Research in 1968. but recommended Rs I85 as minimum
wages
The! felt that Rs 196 was an overestimate
Houcvcr. at the
Implementation stagc. a m u m u r n wage of Rs 196 actuall!. c a m into effect.

4 1 16 The Fourth CPC obscn ed that the State as a model ciiiplo\ cr \\ as elpccred
to move MI the drection indicated b? Article 43 tonards a In ing \ \ agc and a decent
standard of It\ ing The! \\we content \\ ith the State being a "good" cniplo\ cr as
against a "niodcl" ciiiplo!cr and f i x d the minimum s a l a n at Rs 7 5 0 / - The
methodolog for arm ins at this figure was not outlined ho\\c\cr

HISTORICAL TREND IN MINIMUM SALARIES

1111""I'

1111

riww

'"m~
'IJ

111

'I"

~ ~ l l f ~ 1 / l l l l r l * 1111
l l \ llIC

1, 11,

,,\I

I,*\ ,#I

4 1 17
Thc niiiiiniuni salaries fixed by the earlier Pa! Coiiiiiiissions and
the trend in cniolunicnts rccciicd at the loiter level at diffcrcnt periods in time arc
summariscd

in

tlic Tablc gi\.cn below

Peon's Emoluments (Pay + DA)

Year-

1948

1949

I St

CPC

Index

88

I00

1973

1960
2nd
CPC

3rd

CPC

99

130

1986
4th
CPC

15.:

1988

1990

1991

152

I S

150

1991

152

1996

15:

ot'real

carniiigs

(All indices are with 1949 as base)

41 1x
It will be obsened from thc Tabk that the emolutxnts of a peon
in I949 ha\z not onl!. been fully protected against inflation. but have gone up in

real.ternis to the estent of 53 per cent This h been done as il nicasurc of'
delibcrarc polic!. in order to raise the s!andard of living of the lo\vcst paid
cml;lo>res and to bridge the gulf betlvecn lo\\est and highest salaries
1-

I PRESENT SITUATION

Today, the pay scale of Rs 750-910 IS the minim.cm scalz 111

Go\.emient The categones of emplo!rees found in this scafe are those of peon
farash. sweeper, chowkidar. cleaner. packer. beidar. mall, watchman teamaker.
miller. workshop helper. bearer, wash-bo!.. durban. bhishtee. etc There were
around 5 66 lakh employees in this pay scale as on 3 1 3 94
1 1 19

41 20
Besides a miniinum of Rs 750/- in terms of basic salar) ~ I - I
employee at the e n t c ievel IS entitled to Dearness Allowance of Rs 1 1 10. (as on
1 1 1996) House Rent Allowance of Rs 150. Cih Compensatory Allou ance of
Rs 30. a monthly bonus of Rs.155 p m and ttio interim reliefs of Rs 100 each
Some employees also get an overtime allot\ ilnce over and abob e this

COMPARISON WITH PUBLIC SECTOR EMPLOYEES

41 21
Some data has been collected b\ us on the comparable lei CIS 01
pa!* + DA in !arious public sector undertakings Annese-4 1 1 summarues thc
findings 11s on 1 1 1095 The figures rcpnncd 1 an from Rs 1744. in Dclhi
Transport Corporahon to Rs 2002 m the Indian Telephone Industries The a\ cragc
of 27 PSUs \.:elded a figure of Rs 2600. as against Rs I6XX for the Ccntral
Go\ emmcnl. showing a difference or Rs 0 2 I on that date The gap has \\ idcncd
s iiicc thcn

In$itmation
collected by 4s

.\K

hl/~r~lolloll

.mhrittitfrdhi. fhr

.N .\ I

Amexe-4 1.2 states a similar position 111 respect of 27 PSUs, as

compiled by the National Producth it? Council for I 1 1995 Here. the National
Textiles Corporation has been shown as pa\ing Rs 1605 while the Indian
Telephone Industnes have a figure of Rs 2902 The average is Rs 25 14 and the
d~ffcrenceas compared to the Central Government has been indicated as Rs 826

41.21

41.23
Anncsc-4 1.3 is a tablc subnutted by the staff side of the National
JCM. From tlus it is obsend that the range of emoluments varies from Rs.2254
as paid by ONGC at the lowest l e d to Rs.2977 as paid by Daniodar Valley
Corpmatm at the highest level. The average has been calculated as Rs.2400 and
the difference vis a vis the Central Government has bcen.calculated as Rs.870.

The Staff Side !lave also brought to our notice the increase in
\vages of public sector umkcrs effective froni 1.1.199l/I992.\vhic!i is in the
neighburhood of 1%) approsimatel>s.Coupled with the addition of industrial
D.A. u Rs.2 per point for the increase of 270 points in the AICPl between
I. 1.1994and I . 1.1996. the have \ v d d out the o\#all sap between the minimum
emoluments in the public sector and the Govenunent at Rs.1240 p.m. as on
i.1.1996.
41 24

COMPARISON W I T H THE PRIVATE SEmOR

Some of the conclusions of the NPC stu+ are :

c

The average age at entry is 25 years, both in Central

Government and the private sector

93% of Central Government employees with current 8ge

below 25 years a* harried. while only 50% are married in
priyatc sector
Those in the private sector tend to have relatively smaller
families

The average salary oi the lowest functionaries in

Government is Rs.23.638 per year, while the figure for the
private sector is Rj.l0,721

The life-time salaries \\.hich include Basic. b e s s Allowmce

and lntcrim Relief in the Government and p m a t c scctor are
Rs 0.47 lakhs and Rs I) 28 labs rqspcctivcl\.

The4ifptime emdunients uhich include saiary and allowances in

the Government and private sector are Rs.11.36 lakhs and

Rs 9.08 l a b s respectively
The life-time earnings which include emoluments and bonus
in the Government and private sector a r e Rs. 12.00 lakhs and
5.9.09 lakhs respectively
46% of Central Government employees stayed in allotted
accommodation, whereas only 19% of the private sector
employees had such accommodation

COM PGRISONS WITH STATE COVE RNMENTS

41 26
X coiiiparisoii uith Statc Go\ crnment cmplo!.ees based on thc
questionnaire circulated by us reveals that most States have placed their peons in
thc pa! scale of Rs 750-940. except for Goa (Rs 775-1023). Himachal Pradesh
(Rs 750-1350 uith a s t a t o f Rs 770) blizoraiii (Rs 800-1 150). Tripura (Rs 7751 130) and Wcst Bengal (Rs 800-1265) There arc \ei other States like Andhra
Prrtdcsh \\here a higher pay scale of Rs 1375-2375 nas bcen given to a peon but
this is pnmanly on account of a later date oi'rcl isioc ( 1 7 02) (See ;\nne\e-4 I 4)

I EXFEXTATIONS OF THE EMPLOYEES 1

4 1.27
The Commission has recci\.cd se\.eral memoranda wherein the
igsuc of niiniiiuni wages has been discussed. The denialids range from a minimum
ofRs.2500 to a nirtslmum of Rs.3340.Thc -;ie\vs of some importan!. associations

are detailcd beiolv.

Accordlng to the staff side of thc National JCM." The Central
41 28
Government employdes in the fifties a i d up to Second CPC mzrc tn terms of
emolpnients better p l a d than others This position however starfed to changc
fiom12.58-59 on\\ards when the wages of Central G o \ e m e n t started sliding b x k
as the time passed and loday they are behind most public sector workers This
happcnod p m a n l y because wage revisions m a11 other organised sectors took place
inore frequently after every three to five years through bilateral negotiations
M hcreas in the Central Government revisions took place onl! after 10 to 15 !ears
Ths has rcsulted in senous dernoralisation and a sense of grievance is buildins up
in the employees of the Central Government As Job c\ aluation is not possible and
as the Gotemment is not committed to implerncnting the 15th 11.C norni. the
pnnciplc wbch should be evolved by the Fifth ('cntral Pay Commission for fiviiig
a minimum wage should be based on fair comparisons A comparison with the
public scctor as on 1 1 94 shows that 1s hile on an a\ eragc in PSUs a pay + DA of
Rs 2400/- is a\ ailable. in Government this IS Rs I530 only I e a differcntial of
Rs 870 esisls " In their subsequent letter on 27 2 90. the JCM hrther statcd
"Sincc thc subrmssion of our memorandum. \\ages have been revised in almost all
public scctor undcruhngs and inost consen nti\ cl! calculated. the a\ c r a g increase
in tlic salarics of PSU crnplo!ccs has bcen to the liinc of I5%, With the addition
of 1 5'!il. our dciiiand of Rs 24001- as the niiniiiiuiii has bccn raised to Rs 27601(Rs 74OOi- + Rs -360/-)as on I 1 04 " Fiirthcr. oii accoiiiil of an incrcasc on 2 I 'k

tn the CPI during 1994-1995. an addition of Rs.580has taken their demand to

Rs.3340 (24018+360+580).
Denmiid\ vmde
hv B/rur/rw
Rorhvov \iuzdmtr
.~lllfgll

l//IlrdrOh l / L e J l '
f:t~l/>l~lv~~l~\
( ~ ~ I I / c ! d i 'Jl/ l f l l I

4 1 29

Bharatiya Rail\\ ay Mazdoor Sangh have proposed that a family

for the purposc of computation of the minmuni \vase should be assumed to consist
or5 consuniption wts Th~sfigure is based on the findings of a sunfeyconducted
by Dr S Subramaniam. an eminent statistician. The Sangh has computed the
minimum bait pay of Rs.2600 at the AICPI of I302 (Base 1960=100) for the
IOU cst functionaq

4 1 j()
All India Rail\\ a!. Emplo!.ees Confederation ha\ e also demanded
that a fanul! should bc taken 10consist ot fivc nxnibcrs Tlic Coiimission should
detmilnc il nccd-bascd nimiiiiuni \\age and inco'pa ate changcs i n thc food habits
noticed 0;er tlic tears It should include iion-t cgetanan IICillS i n tlic drct ~ h i c h
H%T~
left out by th,: Third CPC The! ha\ e denlanded a minimum basic pay of
Rs.2SW as on September, 1993 for the lonest fuiictioiian

4I I

According to the stud!. conductcd b!' thc National Productivity

rcspondents sune?cd by them expected thc basic pa!. lo be at least
Rs.2000. nit11 the maximum espectation being as high as Rs.5000 Ho\veser. the
mean
found to bc Rs.3450and the maximum nunibcr of rcspondents expected
the basic pa!' to bc fixed at-Rs.3500.

i ~ . ~ / > l ~ c t ~11,s
l l l f ~ l l . ~, j

P ' ~ . ~ ~ ( * ~ Council
~ ' ~ ' ~the
~

41.32
A l a r g number of memorandists have desired that the concept of
"living wage" should be made the basis for fixing the niiiiinium salarics

THE NATIONAL P R O D U n I V I T Y COUNCIL STUDY ON

MINIMUM SALARIES

rile,vrc stU+ 4 1 3 3

In order to obtain an espert view on the entire Saniut of issues

c o n n g the determinaiion of minimum salmes In Government. it was decided
to commission a study on the subject *ough the National Productivity Coiincil
41 34
The National Productivih Council has listed the approache: Tor
the detemiination of minimum wages as those based on the Income Criteria &id
those based on Consumption Standards The various methods used by NPC are
detailed belon

MINIMUM PAY BASED ON NATIONAL INCOME CRITERIA

Iiw Per ('upitu
SYP \ler/,od

(a)

Here the underl? ing assumption is that as thc a\ erage per capita
N N P represents the In ing standard of a t>pical Indian. the
niinimum salaq pa? able to a Central Go\*cmmentemployee at
rhc louest l a e l should not be louer Prolections of per capital
NNP haye been made on the basis of post trends for famil! sizcs
01'3. 3 5 and 4 units

The Per Capita

Dixposable

(b)

This method is based on the same considerations as in (I) above.

except that as against NNP, "disposable in con^" has been used
as the norm

.Y.YJ'-.\ f i b tint unr

SRItl~.
Rorir,

(c)

This approach assures a fixed ratio of minimiini s a l q to pcr

q i t a inconie. in order to cnsurc that the relatiye position of the
Government employee vis 6 vis an average citizen remains
unchansed. For this purpose. the ratio of 29.60 based on I9%(,
figures has bmii extrapolated to I996 ZGd applied to an annual
per capita income of Rs.%559.90.

~ - ~ u l . ~ l 'R
l lil~t b r r l l u

(d)

F revious CPCs have arrived at the miniiiiuin reniuneration

payable to Ihc lowst fiinctionary by addiny Dzanicss Xlloivancc
and liiterini Reliefs to the bask pay and adjusting the total by.a
compensation factor. This factor has beeti based on thc increment
in the rca1 per capita income during the ifitenat bet\vcen two Pay
Conmissions. Whereas the first three CPCs applicd 5% of the
basicpa!. as the cornpensation factor. the Fourth CPC adoyed a
norm of 20%

litcome Method

lfc'cl!

fIJ<':;Jlk''

( 'rlfCrllJJ:

'

NPC has cstmiated that the real per capita incomc gel\ by about
211% iiuniig the p o d 1986-87 to 1995-96 This has been taken
as h e compcnsauon factor for the fixation of the minimum salnn.
under the Re!ative Real Income Cnterion

( *f~ll.*l4~llplI,
MI

stmihrdc 'hosed
011

\:v.s

(e)

The objective here is to arrive at the minimuii salar\. levels that

will ensure a pre-determined consumption standard for the
employ& and his fiunily. The fust approach is to use the data of
the NSS (48thRound). Since the survey was conducted in 1992.
the :onsumption nohave been adjusted for increments in
co.mrnption between 1992-93 and 1995-96.

(f)

Under this criterion. the underhjng consideration is that

Govemnient bcing a model employer needs tc ensure that thc
minimum sdiq.paid to the lowst functionan. does not take him
bclow thc po\cn?line.

(8)

Herc the necd-based miniinurn wages based on the diet

m m z n d c d by Dr Patwardhan during the Sccond CPC arid by
ICMR l 9 O K during the Third CPC have been rutrapo!atcd

i-lSIlt

Horctrdt

c *f>ll.~llI~lpl;~>ll
Vonm~

~<.JllSlll?l~~lOlt

.YIWI
OII

J:trA h u s d

Ptm*r& L~IIL,

.\~JrtIl\

( *ll~l\lllll/,lloll

\ttiiidtrrd\
OII

hard

('don*
Iiiittke

Yorm\

I MINIMUM PAY BASED ON COMPARABLE WAGES I

(h)

Hew NPC has attempted to use thc monthl\ inconic o f

a@cultural labourers as 3 yardstick for identif- ins thi. ncst bcst

alternatir c sourcc of income a\ ailable for an unskillcd person

The monthl) monc!. \\ages hale been computed using the
standard 23. 23 and 28 working da!s

(1)

\ l c l l f f ~ l l c f ~ \c # i / J A

hcc reel t i c 1

,lcf/crcii/

41

Anothcr indicator of the n e u best alternatn e incoiiie is

thc niontlil\ salan based on norms acceptcd undcr thc
hlininiuiii \\'ages Act. 1048 in the fields of construction.
a~ricultiirc.loadiii~'
unloading and mining

.;s

Thc ligurcs ot'iiiiiiiniiim salan based on the diffcrcnt nicthods as

calculatcd b! the NPC arc siiniiiiari/cd i n thc table belo\\

fll'~ll~/~~l~

SI
\O

C ri teri a

r.amil\

Sl/C

Adlilt Consuniption Units

>
-'
- >4
3

Ln~pcci1ic.d

s1

Fnrnily S i x
Adult
C'onsurn~tionUrns
-3
35
4

Criteria

No

3.

Unspccr fied

Con1mrable Wages

"Excludes HR4 cnicuiated at 7 5 p-1 ceni of'totnl coiistiiiip[im

(bj

B a d on the ach!al skx of tlic farnd!. of4.X according to the NSS

t48th Round) for 1992 and the fi-idings of the field suney. the
NPC study fmds it naxssw.to treat the famil!. size as 4. I'akins
the iwious approaches mentioned before into account and
ignoring cstrernc values. the cstirnatcs for minimum salan. \.ar!.
bcnvccn Rs.2 I90 and Rs 23(J5 Since the data available from
S S S (-18th Round) for I092 is thc niost rclinble indicator of thc
a\ci-agc Ic\d of consumption. the NPC study concludes that a
minimum salary of Rs.2 190 should be treated as sufficient to
guarantee average consumption levels in urban areas of the
coil nt ry

Go\ cmmcnt is job evaluation Over the years the techniques of

job c\ aluation have been considerably improted
We came
across the detailed e\ aluation technique c\ oh cd b! the
Go\~cmnicnt01' Canada ui order to amvc at t point rating for each
rob in the Go\cmnient This. houever. presupposes an elaborate
c\crcisc for nhich tlic Fifth CPC has ncithcr the time nor the
requisite \\here\\ ithal Wc are scparatcl! suggcsting the setting
up of a Pcnnanent Pa! Bod!. \\ hich could be charged \\ ith the
rcsponsibilit) of e\ aluation d c a c h lob in the Go\ cninicrit on a
continuing basis Ho\\c\cF, as such data on point ratings 01'
indi\ idual lobs is not a i ailable lo us we have to reluctantly
discard the criterion of job evaluation at the present moment.
1 # i w Lr w p , i r i w ~ ~ i

(11)

Fair comparison 15 anothcr favouritc f'oniiiila that is oftcn

ad\ ocalzd nith considerable emphasis. espcciall? b\ ~ l i cstaff
associations While. on the facc of it. this sccnis to be a lair and
equitablc method of arming at a reasonable figiirc i t suffers
from sc\ cral inlirmities

Data about thc pniate sector IS not a\ailablc: If

a\nilablc. it is not reliablc Thcrc is no transparenc!
about the bcncfits recencd b! an cmplo\ec from his
VeF ofien. thcre are hiddcn or
pri\ate eniplo!er
ciaridestmc methods of compensation hich do not bear
scniun! On the negatne side. the einplo! c'c has no lob
sccurit?. no assured career prosrcssioii and no postrcI iiement benefits

The position of the public sectcr is also drff'crenr

Einplo!ees in the public sector are engilged In
commercial or produciion actn ~ties.11 itli the prinian
purpose of earning a profit on the rn\'estment Withiii
the Go\emment. profit-making often takes second place
and priniac! is accorded instead to the pro\ ision of a
sen ice to t ! x people The hours of \\orl, the anibmice
of the uork-place. the \vork-culture ctc are quite at
\ anance Wages in the public sector arc settled through
collectn e bargaining mcchanisms
\\ hlc
thc
eo\emmental salarics are dwdcd through w3riis of Pa\
Coiiimissions
d

People trhojoui the Goicmient !me a ciiffcrcnt cuiturnl

cthos Thq \ aluc secunh more than opponunit! . status
iiiore than nionc? . scn icc niorc than coniniercc and
t l i g i i t ? niorc than a fast trach
Thcrc arc iin~sible
pcrquisitcs and compensations i n Go\ crniiiciit sen ice
;\hich do not c a m a pricc tag
E\,en so. it i s considered expedient to keep the
salaries prevalent in the private and public sectors in
\,iem. while fixing the salaries o l G'overnntent

employees.. We would like to concede a relativity,

but not a parity as between these sectors.
~ f ~ @ l e m P k (iii)
~ r

The Government's role as a model or enlightened employer is selfevident and does not need to be proved The fact that therc has been a
53% increase in the real earning of a peon in the last 77 ?ears with 1949
as base is a clear indication of Government poliq The reduction of the
post-ta. minimum-maximum ratio from the pre- 1947 level of I . 4 I to I
. 6 111 1996 is positive proof of Goi.emment's intentions ,The fact that the
lowv~err.himentsin Go\emnient are noticeably tugher than the poverty
line. the minimum \\aye. the agricultural \\age. the lo\\est szlaries in the
private sector. or the salanes based on consumption norms as uorked out
by the NPC is a i s a~ pointer in the same'direction
(iv)

We nould Iikc lo approach the question of niininiuni salaries in

Go\.emmeiit b!. a multi-pronged strateg .as under
we do not q e e with the NPC findiy that a norm of 4
consumption units should be adopted for the person
joining Government s m i c e The sample size taken by
thcm IS too small to \pield relialk data for the entire
population Our general impression is that the average
a~ at en@ is around 22 years With the break-up of the
pint family system. increase in the age of marriage and
practising of the small famil! norm. the average
number of consumption units at age of entry cannot
be taken as more than three

Taking 3'consumption units. we find that the figures

wo-rkcd out by the NPC on the basis of consumption
standards range from Rs.1016 to Rs.1642. These are
lower than the esisting emoluments drawn by these
categones.
The Per Capita NNP and Per Capita DuyosaMe Income
Methods yield iigures ranging between Rs.1783 and
Rs 2 156. while the constant Relative lncome Criterion
k 2248
given an amount of F

We would like to adopt'a modified version of the

Constant Retative Income Criterion as possibl! the
rmt equitable norm. both from the point of vie\\ of the
cmplo\ee as \\ell as the Government Taking Rs 750 as
tlic basic pa! fixed in 1986. and dearness allouance of
Rs 1 I10 as on 1 1 96 we may adopt a compensation
factor of 30.9% (See Annexe-41 5 ) as being the
increase in the per capita net national product during
the period 1986-1995 This comes to Rs 574 74
When it is added to the existing basic pay (Rs.750)
and dearness allowance as on 1.1.96 (Rs.1110). the
total works out as Rs.2434.75. This figure could be

rounded off to Rs.2440,which would also incidentally

m a n more than a threefold jump in the basic pay from
Rs 750 to Rs 2440 The tntenm reliefs of Rs 200 paid
so far to the lowest functionac would naturall? be
subsumed uithin the above mentioned figurc

F1 NANCI A L I MPL I C.4TI 0 NS

It IS csiimatcd that the above proposal would mean an
additional financial oiltgo to the tune of Rs. 294.1 crores (Scc Aimcse-4 I 6)
el e n ' !.ear. takm_ecii ilian and dcfcncc cniplo!ces together

41 38

CONCLUSION

4 1.39
Taking into acwuiit thc espectations of thc ciiipIo!ccs. tlic amount
suggested by us may appear 19 be sonnvhat madequate. However. we have to take
the Government's capacit!, to pa!* into account while making our rcconimendakions.
Group D employees constitute 41% of the total work forcc in the Centrid
Government. It is well know !hat any increase in the basic pa!. of thz lowest
functionaries has il ripplc etTcct on the entire s a l q structure. A rough estimate
shows that an mcrcasc or Rs 100 in the minimum basic pay involves a massive
overall financial implication of around Rs.1000 crores. It would. therefore. be
correct to say that even if thz employees had a good case for a further increase in
their emolumpus. the govcnuiient could ill afford the same. Association leaders
should also weigh and consider the complete package o f benefits that have
been recommended by this Commission. Consideration of just the minimum
salay out of context would not be a fair approach to the problem.

Annexe 4 1 . 1
Minimum Wage f o r Lowest Unskilled Worker at Recruitment
Level in Different Public Sector gndertakings as on
1.1.1995

6.

7-.
8.
9.
10.

11.
i2.
13.
14.
15.

16.
17.
18.

19.
20.

21.
22.
23.

24.
25.
26.

27.

Sharat Yantra Nigam Ltd.

Bongaigaon Refinery and Petro Chemica-1s Ltd.
Cement Corporation oftIndia Ltd.
Cochia Shipyard 1,td.
Dredging Corporation of India Ltd.
Delhi Transport Corporation Ltd.
Engineers India Ltd.
Fertiliser Corporation of India Ltd.
Fcrro Scrap Nigam Ltd.
Food Corporation of India Ltd.
Garden Reach Ship Builders & Engineers Ltd.
Hindustan Aeronautics Ltd.
Hindustan Fertilisers Corporation Ltd.
Hindustan Shipyard Ltd.
Indian Telephone Industries
Life Insurance Corporatior! of India
Mang'anese Ore (India) Ltd.
Mica Trading Corporation of India Ltd.
Mineral Exploration Corporation Ltd.
National Industrial Development Corporation
National Seeds Corpwation Ltd.
Projects & Equipment Corporation of India Ltd.

424

2,743

2,702
2,581
2,?35

2,694

1 744
2,810

2,723
2 764
2,714
2,640

2,460
2,729
2,823
2,902
1 ,907

2,370
2,761
2,761
2,509

2,581

2,511

Annexe 41.2
P a y S c a l e s of lowest F u n c t i o n a r i e s a n d S a l a r y a t t h e Minimum
of t h e S c a l e f o r s e l e c t e d P u b l i c S e c t o r U n d e r t a k i n g s

Feriro S c a r p N i g a m L t d .
Garden Reach S h i p B u i l d e r s & E n g i n e e r s L t d .
Dredging C o r p o r a t i o n o f India L t d .
Engfineers I n d i a L t d .
Manganese Ore I n d i a L t a .

1350-1680
1100-1490
1320-1750
2100-3020
1060-1507

2,763.50
2,639.70
2,649.00
2,.810.00
2,400.00

6.
7.
8.
9.
10.

B h a r a t - Aluminium C o . L t d .
India A d d i t i e s L t d .
B h a r a t Heavy-Electricals Ltd.
I n d i a n Railway C o n s t r u c t i o n Corpn. L t d .
M i c a T r a d i n g C o r p o r a t i o n of I n d i a L t d .

1350-1650
1075-1305
1096-1487
650- 905
1350-1615

2,714.00
2,468.70
2,758.60
2,0S3.70
2,761.00

11.

i2.
13.
14.
15.

L i f e I n s u r a n c e C o r p o r a t i o n of I n d i a L t d .
Bongaigaon R e f i n e r y And P e t r o c h e m i c a l s L t d .
NatjLonal S e e d s C o r p o r a x i o n L t d .
P r o I j e c t & E q u i p m e n t Corporation L t d .
National Textiles Corporation L t d .

815-1520
1040-1665
1035-1345
1100-1170

1 ,9G7.00
2,702.50
2 , 580.30
2,511.30
1 ,605.00

16.
17.
18.
19.
20.

Bhairat Y a n t r a N i g a m L t d .
Cement C o r p o r a t i o n o f I n d i a L t d .
Hindustan Aeronagti cs L t d .
Hindustan S a l t L t d .
Hindustan Shipyard Ltd.

1112-1412
1035-1345
1880
750- 950
1400-1760

2,743.0.0
,580.60
,540.00
1,888 .OO
2,822.70

21.
22.
23.
24.
25.

Food C o r p o r a t i o n o f I n d i a L t d .
Instrumentation Ltd.
H i n d u s t a n F e r t i l i z e r Corporation L t d .
I n d i a n T e l e p h o n e I n d u s t r i e s Ltd.
Bhaxat E l e c t r o n i c s Ltd.

800- 1150
1107-1507
1100-1400
2100
1880

1 ,800.00
2,833.10.
2,729.30
2,902.00
2,592.00

26.
27.

Nati.ona1 I n d u s t r i a l Development C o r p o r a t i o n
1065-1415
Andaman & Nicobar I s l a n d s F o r e s t s & P l a n t a t i o n 1035-1345
Corporation L t d .

1.
2.
3.
4.
5.

Note:

S a l a r y i n c l u d e s P a y , Average F i x e d DA a n d V a r i a b l e DA
:4 2 5 :

2 ,509.00
2,580.30

Annexe 41.3
Minimum Wages for lowest unskilled worker at
Recruitment Level in Public Sector Undertakings
and Central Government Establishments

.......................................................
All India Consumer Price Index 1 2 4 0
(Base 1 9 6 0 = 1 0 0 )

Hindustan Aeronautics Ltd.

Bharac Electronics Ltd.
8.
Hindustan Machine Tools
9. Hindustan Capper Ltd.
10. -National Thermal Power Corpn.

2,398
2,398
2 ,3 9 8
2,391
2,399

Central Electronics Ltd.

iqeyveli Lignite Corporation
3harat Heavy Electricals Ltd.
Bindustan Cables Ltd.
:?ort and Docks

2,399
2,399
2,391
2,378

6.
7.

11.
12.
13.
14.
15.

16.
17.
18.
19.
20.

21.

l?ertilisers and Chemicals

Fertiliser Industry
Coal Industry
Oil & Natural Gas Commission
Indian Oil Corporation
Steel Industry

2,398

2,354

2,311
2,277
2,254
2,278
2,410

Average
2 ,4 0 6
.......................................................
23. Central Government
1,530
.......................................................
22.

24.

Difference

870

===============s======================================

Note: Interim Relief of Rs.100/- has not been included

in the above figures for Central Govt. Employees
as the same is also not included in the Public
Sector. The Interim Relief in Public Sector has
been granted in many cases and in some of the
cases same is under discussion. In any case the
amount there in is also Rs.100/- and above.
Source: Memorandum of the J.C.M.

Annexe 41.4

1. Andhra Pradesh

1375-2375

2. Arunachal Pradesh

750

3 . Assam

900 -1435

4. Goa

775 -1025

5. Gujarat

950

750-940
7.50

6 . Haryana

940

+Rs 30 spl.
Pay
7. Himachal Pradesh

'8. Jammu

&

kashmir

750 -1350
start at
770
750 -940

9.
10.
11.
12.

Karnataka
Madhya Pradesh
Maharashtra
Manipur

840 -1340
750 -945
750 -940
750 -940

13.
14.
15.
16.

Meghalaya
Mizoram
Orissa
Rajasthan

820 -1175
800 -1150
750 -940
750 -940

17.
18.
19.
20.
21.

Sikkim
Tamilnadu
Tripura
Uttar Pradesh
West Bengal

800 -1060
750 -945
775-1130
750 -940
800 -1265

Annexe 4 1 . 5
Percentage i n c r e a s e i n P e r Capita
N e t National Product at
f a c t o r cost.

1
2
3

4
5
6
7

8
9

1986-87
1987 -88
1988-83
igag-go
1990-91
,1941-92
1952-33

1993-94
i994-95

1,871
1,901
2,059
2,157
2,222
2,175
2,239
2,292
2,449

Percent increase
i n 1994-95 over
iga6-87

30.9
----

Annexe 41.6

1. Total Employees (Lakhs)

in the Scale of
Rs. 750-940

( i ) Civil

5.66

(ii) Defence Forces

0.79

2. Emoluments (Rs./Mcnth)
A. Present

----------

( i ) Basic (Minimum)
(ii) Dearness Allowance
as on 1.1.96 @ 148%
(iii) Interim Relief
two instalments
@ Rs l o o / - each
A.

750

1110

200

Total

2060

B. Proposed

2440
----

----

C. Additional (B-A)
3. Total Additional Financial
Implication Rs crores/Year

:4 i g :

380
--294.1

BACKGROUND

Sipr/icancc of
Maximrrm Sdmy

42.1

The potentral

42.2

con-!icfiinf;xin~
the moximum

salary

Other issues

Having fixedthe minimum salary III Government, we move to the

other end of the spechm~.By the term "maximum salary", we imply the salary of
the Wor most civil servants. The pay alid allowances of these top functionaries
constitutes a bny, almost invisible, Cractior, of the total expenditure on government
salaries. Yet, in sped of its budgetary insignificance, the way the officials at the
summit of Governmmt are rewarded is of critical importance as it determines the
kind of people who join Government, the way they pform their task and the
efficiency with which public administration is run.
The prpcess of arriving at maximum salary is attecded by a host
of special dificu~tics.mere is the potential codict arising out of the top
bureaucrat's simultaneous role as that of an employer, where he is aiming at
minimizing salary costs and his role as an employee where his natural inclination
wvodi be for a hike in salaries. There is the short term concern with cutting costs
and showing c x e m p l q restraint and the long-term concern for avoiding the
tendaacy towards questionable methods of income supplementation. There is the
larger issue of whether the pay structure at the top should be performance-related
a$ dictated by the "principal agent" rodzl of public senice management. There are
also Selhtivitics to be maintained with respect to the salaries of elected politicians,
constitutional authorities and thc like
42.3
Within the institutional constraints mentioned above there are
some other questions which need to be resolved. These are the issues of erosion
of real income at the hghest levcl. prc tax and post-tax disparity ratios,
comparisons with the private and public sectors, quality of recruits, proliferation
of number of posts etc. These questions have bccn dealt with at great length by the

430

previous Pay Commissions and pay fixation at the highest levels has been based

on one or all of these considerations.

RECOMMENDATIONS OF THE PREVIOUS PAY COMMISSIONS

Views 6,

42 4
Tbc predominant issues confronting the first three Pay
Commissions on the subject of maximum salary were entirely different from those
before the fourth. While the overriding concern of the former was whether the
maximum salary in Government should be reduced in view of the inordinately high
dspariyi-atio, the Fourth CPC had to address itself to the widening gap between
the salaries of top executives in the private and Government sectors.

previou

Cornmi.

I'iens c?/the Firs1

CPC

Views ofthe
Second

cp%

42.5
The prevailing public opinion at the time the First CPC wes set
up was that salaries of senior functionaries in Government were too high and
needed to be cut down drastically. It was believed that high scales of pay in Indian
public service had been respoiisible for diverting the attention of brilliant young
men h m other fields andcotrwntrating it on Government service. The First CPC
therefore felt that Rs.2000per month-should be the maximum salary for public
servants, but for the highest posts such as Secretaries to Government of Inha,
Members of Railway Board, Members of the Union Public Service Commission,
General Managers &Railways and Ambassadors, salaries of Rs.2250, Rs.2500,
Rs.2750and Rs.3000would be suitable. No deamess allowance was admissible
to ' h s category of employees. While the ICS and pre-193I officers were entitled
to Rs.4000when appointed to posts of Secretary and Rs.3500when appointed to
posts of Additional Secretaxy,with the implementation of the First CPC's report,
a ceiling of Rs.3000per month was made applicable to the highest appointments
of Cabinet Secretary, Secretaries to the Government of India and the Chefs of
Sm.But this duction in the highest salary did not have any visible impact as
most top posts were a that time held by officers of the Indian Civil Service or pre1931 entrants to superior services. In the 4nriy, the reductions did not affect the
Kmg's Commissioned Officers who were holding most of the higher ranks at that
time.
42.6
The Second CPC examined the subject of highest salary in
considerabledetail and &a going into issues pertaining to erosion of real incomes
at the highest level, disparity ratio, quality of recruits and comparable salaries in
the private sector recommended no changes. Thus a non-ICS Secretary came to
draw a salary of RS.3000per mensem.
42.7
The highest salary remained unchanged till the year 1965 when
the salary of a Secretary was raised from Rs.3000 to Rs.3500 even before the
setting up of the Third CPC. The salaries of the Additional Secretary and Joint
Secretary were raised from Rs.2750 and Rs.2250 to Rs.3000and iXs.2500-1252750 respectively. These sudden increases in salaries at the highest levels were
necessitated by the steady fall in the number of candidates appearing before the
UPSC, rising consumer price indices and salaries in the private sector and a
disparity ratio of 19.2 in 1965 which had comc down from the level of 257 in
1939-40.

43 1

Views of the
Thir&CPC

The Third CPC keeping in view the social desirability of reducing

disparities in the levels of income and that this reduction had to be broudt about
consistently with due requirements of efficiency in public service, recommended
that no change be made in the maximum salary of Rs.3500.

Views ofthe

42 9

cpc

42.8

The Fourth CPC d d r\ot examme the issue of rnmmum salary as

such It however, recommended a replacement scale of Rs 8000 for Secretanes to
the Government of India The Cabinet Secretary who was earlier in the scale of
Rs 3500 was upgraded and given a replacement scale of Rs 9000, in vie\\ of his
v e n important role of coordinator at the inter-ministerial le\ el

The erosion in the 42 10

real Income of
emoluments,
Secretaries since

I949

We now briefly touch upon the trends in the levels of pre-tax

post-tax emoluments, All India Consumer Price Index and Real
Earmngs of Secretaries for the period 1949 to 1996 Thesc are summarized in the
table given below

Trends in the Emoluments of Secretaries to Govenunent of India, 1949-1996

1949

1959
-60

(Emoluments in Rs.)
1.9.65 1.1.70 1.i.73 1.1.86 6.1.96

3500

3500

3500

8000

16580

--do-2263 2251 2422

(Post tax)

23 99

233 1

5896

12,615

267

553

Emol3000 3000
uments*
(Pre-t ax)

Index
100
of
Emoluments
(pre-tax)

100

117

117

117

--do--

100

101

107

106

103

26 1

557

AICPI**

100

124

163

21 1

252

754

1874

Real
earnings
Index
fvre-tax

100

81

72

55

46

35

29

(Post tax)

432

(Emoluments in Rs.)
1949 1959 1.9.65 1.1.70 1.1.73 1.1.86 1.1.96
-60

-do100
(Post tax)

81

66

50

35

41

30

* Includes Dearness Allowance, Dearness Pay and lnterim Relief

** Base 1949 = 100
42.11

The above table reveals the followingDuring the period 1949-1996, the pre-tax emoiumenls of a
Secretary to the Government of India increased 5.53 times from

1)

Rs.3,OOO to Rs.16.580.
During the same period, the AICPI increased by as much as

ii)

18.74.

iii)

I
Cechning
bfaxinrum
Mhirnum
Disparity Ratio

Thus there was an erosion of 71% in the real earnings of

Secretaries Tlus m y be compared to the increase of 53% in the
real income of a peon over the same period (See paras 4 1.17 and
4 1.18).

DISPARITY RATIO: THE TREND

42 12
We turn next to the behaylour of the maximum-minimum
disparity ratios. The trend ofpre-tax and post-tax disparity ratios over the
years has been summarized in the table gwen below:Trend of Disparity ratios, 1948-1996
1948
1949 1359- 1/9/65 1/1/70
1960
3500
Maxi- 3000
3000 3000
3500
mum
Salan (Rs.)*
(PreTax)
Maxi- 2263
mum
Salary (Rs.)
(post-tax)
MI^-

55

(Emoluments in Rs.)
1/1/73 1/1/86 1/1/96
3500

8000

16580

2263

2281

2422

2399

2331

5896

12635

65

80

I03

141

I96

750

2060

mum
Salan*
(Rs.)
433

Trend of Disparity ratios, 1948- 1996

1948
1949 1959- 1/9/65 1/1/70

(Emoluments in Rs.)
1/1/73 1/1/86 1/1/96

1960

545

46.2

375

Post41 0
tax
Disparit?.

348

285

Pre-

34.0

24 8

17.9

23 5

170

I19

10 7

80

79

61

tas

Dispari t?
Ratios

Ratios
* lncludcs Dcamess Allowance. Dcarncss Pa! and Interim Rclief
The a b o x table revcals the following:-

42.13
1)

11)

During the pcriod 1938-1996. the minimum s a l q of the lowest

Go\.ernment emplo\.ee rosc frcni Rs.55 to Rs.2,060
During the samc period. the pre-tas masimum saIaF rosc from
Rs 3.000 to Rs 16.580. while the post-tax sat? rosc from
Rs.2.263 to RS 12.6 15

111)

The disparity ratio between the maximum pre-tax

remuneration and the minirLium went down progressivcly
from 545 (1948) tG 46 2 (i949i. 37.5(1959), 34 0 (1965). 24 8
(1970). 10 7 (1986) and 8.0 (1996)

iv)

The post-tax disparity ratio came down even more

drastically from 41.0 (1948) to 6.1 (1996). The post-tas ratios
were naturdly lower than the pre-tax over because of progressivc
rates oftaxation

42.14
The falling disparity ratio was the resicit of a deliberate polic!.
followed b?.successive Commissions. This was probably in tune with the general
upsurge of socialist ideas in the economic field. The ratios did not remain constant
c\.en in the intervening pericd bet\veen t\vo consecutive Pay Commissions. Thus
thc pre-tax ratio slipped from 10 7 (1986) to 8.0 (1996). This phenorncnon is
csplained b!. the prevailing practicc of offering oniy partial .neutralization for
increased cost or living at thc higher Ic\cls. while there is complete neutralization
at the lo\ver levels.

42 15
At prcsent. a Sccrctan leiel officer drans total cmolumcnrs of
Rs 16.580 consisting of a fiwd basic pa! of Rs 8000. ii Dcarncss .-\llo\\ancc of
rcc rcmn .I i i d
Ks 7.680 ( u 96% of basic pa! ) and tuo intcnrn rclxfs of Rs 100 and Rs 800 The
~ r h c i iS
~ ,~rir ~ i c i r ~
Cabinct Sccrctq. drans total cmolunicnts of Rs 18.640 consisting o f 3 f i x d basic

IJw r C J l l l /

L l ~ l f ~ / l l l l l rJf
~ll~~

pa! of Rs 9OOU. a Dearness Allowance of Rs 8,640and tho interim reliefs of

Rs 100 and Rs 900 respectively
42 I6
As per the information collcctcd by the Commssron, there were
on 1 1 95, 1 1 filled civilian posts in the scale of Rs.9000fixed, 170 posts in the
scale of Rs 8000 fixed, 7 posts m the scale of Rs 7600-8000,21 posts in the scale
of Rs.7600fLved, 5 1 posts in thescale of k.7300-8000 and 466 posts in the scale
of 7300-7600

EXPECTATIONS OF THE CENTRAL GOVERNMENT

EMPLOYEES

7%edemands
made

b-v

memorondub

42 1 7

The demands for maximum salary as voiced by the various

Associauons range between Rs.37,OOO and Rs. 1,OO,OOO. The IAS Association has
requested for a replacement scale of R~.37,0OO-39,000for the Secretary, the Indian
Foreign Service has suggested Rs.60,OOO for the Foreign Secretaxy and the lndian
Revenue Service has demanded Rs.40,OOO for the Chairman CBDT. The CPWD
engineers have asked for a maximum salary of Rs 65,000 and NIC employees
R s 1 .00.000 for their Director General.
42 18 .
These demand for increased salaries have beem made in the
contest of the removal of ceilings on the salaries in the private sector and ?he
consequent sky rocketing of salaries in all the segments of tke economy. The
clamour for external comparisons prompted us to commission a study for
companng salanes in the Government with those in the pnvate and public sectdrs,
and accordingly a study was awarded to MDI

1
Higher
miohmerris and
p r r h it1 the
private seclor at
;he senior most
levels compared
10 the Ciovt

COMPARISON WITH THE PRIVATE SECTOR

2 19

The study carried out by MDI on comparisons with the Private

Sector niakes thc following obsenations .
1)

11)

The average pay, including DA & CCA. of a Chief Executive in

a private sector organisation is Rs 23.303 in comparison to
Rs 16,580paid to a Secretary in the Government of India Thus
a CEO in the private sector gets a pay packet which is nearly
50% higher than his counter parts in PSUs and Government
When compared with large private sector enterprises this
difference is as high as 80 pcrccnt
In addition to the salary, a CEO in a private sector
enterprise draws an average Derfnrmance-related incentive
pay ofRs.14,752which w o r k out to 65% of the basic salary.
His counterparts in Government do not get anything on this
account. While a CEO in the privatc scctor enjoys a littlc n~ore
than his salary in the form of housing and car benefits, his
435

couriterparts m Government and PSUs also enjoy housing and car

bcncfits but not of commensuratc value.

iii)

In addition, a CEO in the private sector draws sundry

allowances for club memberships, credit cards. scmices and
..*
7 r n p y l l p ~ .&.--;
.,Ll .U.rla. bLb . ; > i d ~
arc not availablc in
Go\ cmmcnt In privatc scctor, CEOs arc incrcasingl\ beins
given supcrannuation bcncfits which are signi ficantl? bcttcr thnii
pcnslon cntitlcnicnts available to Sccrctarics in thc Go! crnincnt
of India As a rcsult of the ab0i.e. while the average cost of a
CEO to a Private Sector Company works out to Rs.l,02,255
per month, the average cost of a Secretary to the
Government o f India works out to only Rs.44,817
.,..--ucau

IV)

I--

--a-

-.-

Whilc the annual increase in compcnsation i n thc casc of a

Secrctac to thc Govcmment of India is in thc rangc of 8-9(%. the
annual increase in compensation of a CEO in a private sector
enterprise i s 30 to 35% It can rcasonabl! bc coiicludcd that i f
this trcnd continues, the gap betnccn thc compcnsation paid to
pnvatc scctor CEOs and Secretaries to thc Go\cmmcnt of India
is Iihcl! to increase dramaticall!

42.20
Whilc a dificrcntial betwen the pri\atc and public sectors al\va!.s
did exist, the magnitudc of thc \,ariation now obsen,ed is largcl!- attributsblc to thc
removal of the ceilings on privatc sector salaries. Thc ceiling on the rcmuiicration
of managerial perscnnel in the prime sector was raised substantiall! on 14th J u l ~ ~ ~
1993 and relased complctcly for profit-making companics on I st February 1994.
Ths was done in the contcst of the philosophy of libcralisation and globalisation.
42.21
All rcstrictions on the nature and quantum of rcmuneration
payable by a profitablc company were withdrawn from 1.2.94: as long as
remuneration paid to the inanagerial personnel during an! financial !.car did not
exceed 5% or 10% of its profits. Companies without an?. nct profits or with
inadequate profits werc allo\vcd to pay remuncration ranging from Rs.40,000 to
Rs.87,500 p.m., dcpending on the cffective capital of the Cornpan!,. In the case of
loss-making companics also, the above limits were trcatcd as the minimum
rcmuneration payablc to individual managerial persons without Ccntral
Govcmment appro\.al. Thcsc limits can be Ivaivcd in ccrtnin C ~ S C S\\itti Ccntral
Govcmmcnt appro\.al.

I COMPARISONS WITtl PUBLIC SECTOR I

fiiglirr
~ ~ l J l f ~ / l ~ l l ltli ~l l lt li ~ . \

perk.< I J I I i i c
prrhlic ,wcfor

,,,

c,,,,l,~,,,.e,~~
,jte
(;f/l./

42.22
As pcr thc hlDl study, a CEO in a Schedule A Public Sector
organisation on an aicrngc draws about Rs.16.200 (including Basic + DA +
C C A ) in comparison to thc Rs 16,580 drawn by a Sccrctan. to Got-criimcnt of
inda. The CEOs m PSUs Iikc thc Secretary to thc Go\cmnicnt of India do not gct
any incentive pa!.
Thc!.. ho\vcverl draw sundry allowances for club
membership, credit cards, guest entertainment, etc.. which arc not availablc to
a Sccrctaq, to Go\~cmiiiciitof India It has bccn rcportcd that at thc scnior
managcmcrlt Ic\.cls i n ISlis. sc\,crnl facilitics arc pro\,idcd \\ hich ma!. bc trcatcd
as pcrquisitcs., f.-or csamplc. ;I scntn is proi.1dc-d at tlic rcsidcticc of a Scnior

Esccutivc for 24 hours aiid hc performs tasks other than mcrcly guarding a house.
In PSUs this does not constitute a part of thc compensation package but gets
accounted as organizational expenditure. The entertainment budget in PSUs is
rather liberal and it is suficient for the Chief Executive to ccrtify that these were
business dc\dopmcnt cspmses in order to claim reimbursement. If all such factors
are taken into account the disparities between the compensation packages of
executives in Public Sector Undertakings and Secretaries to Government of India
turn out to be wide. The study reports that while the cost to company of a CEO
in a Public Sector Schedule of Company may be as high as Rs.57.262 per
month, a Secretary to Government of India costs Rs.44,817 per month.

I INTERNATIONAL COMPAlUSONS OF MAXIMUM SALARY I

In order to take into account the experience of other countries in
respect of fisation of maximum salary, the Commission sent out questionnaires to
27 countries Information was elicited on questions such as maximum salary,
maximum minimum ratios, number of pay scales, size of bureaucracy, etc. The
information received on maximum-minimum ratio is listed below:42.23

countq
Malaysia
Sweden
France
Indonesia
Australia
China
Thai1and
Hongkong

Ratio
3.0
4.0
6.6

6.9
7.7
8.0
9.0
40.0

It is obsemd that the disparity ratio ranges between 3 in Malaysia and 40 in

Hongkong.
An OECD study on the salaries of senior functionaries has
reported that Japan. UK and Canada reward their senior civil servants better than
Germany, USA, the Netherlands, Ireland, Australia, France, Finland and Sweden.
While the real incomes of senior civil servants rose in thc range of 20 to 40%
between 1980 and 1990 in the case of Japan. UK, Canada, Ireland, Finland,
Sweden and US i t fell in the case of Germany, the Netherlands, Australia and
France. hfferentials bctween the senior and lower grades are clearly compressed
in the case of Canada, Australia. France, Germany, the Netherlands, UK and US.
Also substanttal remuneration discounts for public service vis a vis private service
exist in countries like France, Germany and the United Kingdom
42.24

A word of caution may be added here, however. In practice it is

diff;.--!t to present cross-national comparisons reliabiy. because of the probiems
of matching grades and levels across countries and differing pay definitions.
Further, cross-nationalcomparisons need to be interpreted with care as they could
reflect a range of factors such as the size of the civil service, the extent to which
42.25

437

senior civil senants are able to take up well-paid positions in the private sector
whether they work in capital cities etc.

42.26
We also dccidcd to csamine thc compensation sttuclure of other
senior functionaries in Government such as the President, Prim Minister,
Mkiistcrs, Chaitman Rajya Sabha, Speaker Lok Sabha, Leader of Opposition.
c f w ~ r u t l ~ ,Mcmbws
l ~ ~ ~ of Parliament, Chicf Justice and Judgcs of the Supreme Ccurt af I:idlil
FJUU
arid thc High Courts, thc Comptroller and Auditor -General, thc Chief Elcction
Coniniissioner etc.

Salwie, t 7 d
&drown
by
rhc elc.credotid
tion .rli*c.rcd
~~WJW:(J

The dctails of salary. allo\vances, pension and facilitics admissible

42.27
to the above dignitaries arc given in Annex 42.1 and 42.2.
We observe thc following:1)

Amongst the constitutional functionaries the Presidcnt d r a w thc

highest sala?. of Rs.20,OOO per month. He is followcd b! thc
L%ef Justice of the Supreme Court of India, who draws a salar)
of Rs.lQ,OQO oer month. The CEC, CAG, the Chief Justices of
High Court and the Judges of the Supreme Court of India draw a
salary of R d O O O fixed. The revision of pay for the Sccretary to
Government of India will call for necessary adjustments in the
scales of thesc functionaries.

ii)

The d a r t e s of the elected constitutional functionaries are found

to be more modest than those of the non-elected constitutional
functionaries.

iii)

These functionaries are entitled to several allowances such as

daily allowance, sumptuary allowance, constituency allowance.
The highest rates of daily allowance vary from Rs.400pcr day in
expensive cities to Rs.250 per day in ordinary cities and is
payable to the Chief Justice and Judges Supreme Court and High
Courts. The elected representatives get a more modcst daily
allowance of Rs.200per day. The sumptuary alloivancc rangcs
from Rs.4000 for the Chief Justice of the Suprcmc Court to
Rs.2000per month for the Judge of a High Court Sumptuary
allowance available to elected representatives rangcs from
Rs.1500 p a month for the Prime Minister to Rs.300for a Dcputy
Minister. A constituency allowance of Rs.3000 per month is
payable to thc electcd representatives.

iv)

The senior most appointments in the Judiciary arc cntttlcd to rent

freeammmodatton or HRA @ Rs.3000per month. Furnishing
limits range from Rs.2,50,000for the Chief Justici: of Suprcrnc
Court to Rs.1..CO.OOO for the Judgc of a High Court Watcr and
electricity J fFcc for thc Chicf Justice and Judgcs of Suprcmc
: 438

Court while somc limits havc been imposcd for the High Court
hdgcs. MPs have a libcral dispensation in rcspect of water and
clcctricity charges, free telephone calk and travel.

42 28
In our country the salaries of elccted representatives and
constitutional authorities are not formally linked to senior civil service grades, as
is thc case in Singapore or as was the case in United States traditionally. Where
the clcctcd representatives' salaries are linked to senior civil service, the pay
fisation cscrcisc for civil servants inevitably becomes a part of the debate about
clcctcd rcprcscntatives' own salaries.

RATIONAL CRITERIA FOR FIXATION OF MAXIMUM

SALARIES

42.29
The approach of fixing maximum salaries on the basis of a predetermincu mmunum-maximum disparity ratio has been widely criticized as being
at best ad hoc and arbitrary. Neither does such an approach reflect the true
requircmcnts and expectations of the senior functionaries not does it bear any
relation to their functional r&ponsibilities. While a need-based norm exists for
bench-marking the minimum salary no comparable norms appear to have been
evolved for bench-markingthe salaries of senior functionaries in Govemment. in
view of the diversity of opinions and expectations on the subject of maximum
salay, the range of differentials and the institutionai constraints involved, the
Commission decided to engage an independent professional body viz. the
Indian Institute of Public Administration to suggest a scientific and rational
formula for pay fixation for senior functionaries in Government.
Tlle/indtngso/

the studv
conduered by

IIP.1

42 30

The study conducted by IIPA. which is based on an opinion

sun.c\.. sccks to quantify the "reasonable requirements and the realistic
espectations" of the senior most functionaries in Government and thereby offers
a bcnch-mark for fixing their salaries The study concludes as follows:1)

A rational salary structure for senior functionaries should

allow a salary level which is adequate to meet the current
levels of consumption and reasonable additional
requirements.

ii)

While the average current expenditure has been quantified as

Rs.6,490, the reasonable additional requirements have been
quantified as Rs.8,349 thereby suggesting an average
consumption level of Rs.14,839.

iii)

Based on an averagc propensity to consume of 49%, the average

income required to support the above level of consumption
has been worked out as a pre-tax salary of Rs.40,OOO for the
Cabinet Secretary, Rs. 36,Wu for Secretaries, Rs.33,500 for
Additional Secretaries and Rs.29,5500 for Joint Secretaries to
the G o v v e n t of Indian and officers equivalent in rank to them.
439

iv)

The post-tax salaries have been suggested as Rs.27,667for the

Cabinet Secretary, Rs.25,267 for Secretaries, Rs.23,767 for
and &.2 1,367 for Joint Secretaries.
Additional S&cs

1 OUR APPROACH TO MAXIMUM SALARY I

From the foregoing discussion it is abundantly' clear that

Erosion iti

42.3 1

salaries at tlrc

wnsequmt to them v a l of ceilings in the private sector, wide differentials have

highest Iewl and

widettinl
dtflerentials
between the
Govt... the private

crept in between the salmcs of senior functionaries in Government and their

counterparts in lhc private and public sectors. A hbstantial erosion in the real
i&mc at the senior Icvds has dsobecnobserved,and this seems to have assumed
disturbing proportions

and pvhiir sector

We arc of thc viov that inadequate salaries in the public service

are an expense and not an cconomy. Although it can be argued that corruption
is a state of mind, it cannot be denied that beyond a certain point the penury
of 4powerful civil servant can have disastrous consequences for his integrity.
A bureaucracy that is under-paid is almost invariably unproductive and overstaffed.
The World Bank in its policy pcrpcr titled "The East Asian Miracle Economic
Growth and Public Policy". has singled out "competent bureaucracy" as one of the
mostimportant factots for thc sustainability of teforms in the high-performing
Asian eoomrmies like Hongkong, Japan, Korea, Singapore, Taiwan and China. To
sustain growth, insulation of technocracy is necessary. What is more necessary,
however, is that the bureaucracy must have the competenceto formuiatc effcctive
policies and the integrity to implem&t them fairly. Various ways havc been
employed by these high perfirming economies to achieve a competent bureaucracy
The basic principles follo\\.ed make tecruitment and promotion mat-based and
highly c o q t i t i v e . Simul!aneously, W compensations have been made
comparable with the private sector and those making it to the top are amply
42.32

rwarded.
Tl,r Cabinet
Seeretar?,and

Secretary to the

COW..of lndia

Whilethe study carried out by IIPA has rtcommcnded a pre-tax

salary ofRs.40,OOO for the Cabinet Secntary and Rs.36,000 for Secretaries we are
inclinedto be more modest and recommend a pn-tax salary of Rs.30,OOO for
Cabinet Secretary and Rs.26,OOO for Secretaries. In suggesting these salaries
we have tried to bridge somewhat the gap existing between the salaries of the
private, public and the Government sector. We have also tried to retain the pre-

42.33

tax disparity ratio between the minimum and maximum salary at the Fourth
CPC level of 10.7. Such an increase at the highest level was more than warranted
on account of the serious and continuous erosion in the real income of senior
functionaries since 1949 and the pressing need for a competent bureaucracy in this
hour of economic refomi and liberalisation.
Ceiling mi privhte

sector snlories

42.34
We havc also m i v e d some suggestions regarding the
reimposition ofceilings on s a l ~ c ins the private and public sectors. Thc abolition
of ceilings, it has been stated, \\auld lead to the creation of high-wagc islands,
flight of talent, consumerism and heart-burning as Government may not be in a
position to pay comparable salaries 10its'employees. Some others argue that the
rccent spurt in the compcnsation structure of the private sector is a temporary
phenomenon and a statc of equilibrium is likely to be restorcd oncc thc economy

440

integrates itsclf with thc global market. We howevcr fccl that there is an urgent
need for a National Wage Policy in thehterim period to ensure that there is
no competitive jacking up of salary levels to disproportionate heights.

44 1

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Rent free flrtr o i l r fincludiao hostti Frec uater

rccorodrtion), If r IleDbU is alloted D J ~ ~ MoRf

10,000 free l o u l crlls bar Yeir

both klhl ICorditutrtcv
resldeicc telephoaas mled together,
!he trunk tall 8111s u i l l be tdlurtd
dthii the lant4rV W i v t l t d t of thc
w i l i n o of 50.000 l o c r l c r l l r oar
r w . Exwu c r U s rtdc over ard
above the e x i s t h o euotc of 30;WO
free lacrl trllr i s allwed t o bc
rdivsttd in the next vcrrs auotr.

I!. t a r s of P r r l i w t r t

06

;j.

i o l i c i t o r Carerr1

b t t ~ p l ort~ h i s r @ W . he shall

Hi:-

(11 Full m r l reat i f ha Is e n t i t l e d

to such rccolodrtion; and

lb) frll noml r$nt UB r non-eatitlewt chrrpl of r r r w f b bundrtd

wr wiltl, If k lo not 10
ent 1t Id.

iuiiatie r e j i i i e i t i d l dCCoWddiiofi mid

be ororided bv the Gofernutt o f India
{It officc mil residence trorided t r the on urvmt of vaur~rcat fixed tv t h i
Coveravnt of India
: b i e r n w n t of India free of cost
I

ikd e l t c t r l c i t v UD t o

of the Centrr;
R ~ the
E ~

tirvertrce advrnci of Rs. 50.0001the ratc o f intercst ag acolicrbl

tlr thc Ceatrrl bvt. tioiovees but
rscovtrbblr ulthia r Mxinur pCriJ
of S vtm not exteading bcrond thr
tenure of the N.P.
01

(Itembers mho hdye no Dower v t e r r

i#strlidat their rtsikcrcc arc iiloved
upto a ruiw of 1.200 units of
r l e c t r i r i i r pcr m u m wasvred on light
ceter free of charge).

511
1111

Nil

:447

4s i v a i l a t i e to
Grade-i Offlccrs

and 3,600 units of! 00ler w t c r ) rrd

Covt. U
1.000 K.l.of ater lter IRnufi t c 4 i s r i s J C.G.H.S.
f i r s t Jrirhrv of t v e r i w r .

:i,Addl. S o l i c i t o r 6tnerrl

1.?00 units of electriiitr

13.600 urit nersurcd on lipht retcrs

Hi1

15. Chief fictiioe Coufssimr Office: J

- uith I far ftciliti i 1 Ru

icrordatfol

11.1.

C.C.ii.S faciiiti

liil

Free r c c a o d r t l r

11.1.

c,C.H.S l a c i l i t r

ni 1

Fit(

*-----

Resideice: 5 q i t b i fu facilitr. 1 R i x
id i ccllvlar ohone

i6.

iiection Corisriuntr

..-----..
Sffice: 2 - uith 1 fu f i c i l i t v & 1 R i x
--.---

%si&nca: ? -with a fir fatiliti. i RIA

f?.

justice Subrtrt b r 1

'3. 3 i e f

lio s w i f i c IBit

Justm Hi@ Court I varies frm Strtc to Stite (in Llhi

I ji.000 rails wr anwa at rtsidarct!

Rtnt free furrtshrd a d i t t o n or

HRA iUs. 2588/- o(r @nth
Funirhlnq Rs. ?,W,OOO/-

Rant frea furnished aciortdhtior or

Rr. 25081- ocr Math
Furnishino Rs. I,SO,ilEt~-

HRA @