No.28016/5/85-Estt.

(C)
GOV€TPI1ent of India
Ministry of Personnel,
public G!'j.evances & Pensions
[Department (;·f Personnel & Training]

NewDelhi, the 31st January, 1986

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OFFICE
.......
M9JiORANDUM
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Sub:-Appointment of Central Government servants in the Central
. Public Enterprises on immediate absorption basis - terms and
conditions of.
The undersigned is directed to say that instructions were
issued v· ~. '. r of Finance (.~'!reau 0 u lic Enterprises)
OA'=>( 25) 183-B.P. E. (PESB " dated 6 ::$~
i985 to the -effect_._tD~t
save ~n the except~onal cases mentioned therein, deputation of
Central Government servants to th~ public Enterprises
• would not be allowed and the officers could join' the enterprises
only on immediate absorption basis. The modalities of appointment
of Government servants in the enterprises after the issue of these
i nstructio ns as alsp the quos tic n of granti ng termi nal benef! ts
to the Government s or vant s goi ng over to the enterpri ses 0 n
immediate absorption basis has been under consideration of the
Central Government and it has be en decided that the appointment
of Government serv.ants in the Central Public Enterprises will be
on the following terms and condi tio ns:-
J-rRelease of the Goverflmgnt servants for a.Qpointment in 1h~
ent;;rgrl. ses:
A Government servant who has been selec~~d for a post in
a Central P\lblic Enterprise may be releas~;d only after
obtaining and .acc~pt:l.ng hi s resignation frpm the Government
service.

No ii~n/quasi-permanent status of the Government servant

~o.ncerned will b€. tetained in his parent cadre. All his
cormec td.cns with tt\e Government will be s svezed on his
. tele;:ase .£01: app()irl~rn,ent in an enterprise and he will not
be al):owed to reve:i:,t' to his parent cadre.
"
~Pay fixation:
A'Government servant selected for a post in a Central
Public Enterprise ~ill be free to negotiate his emoluments
with the enterprise. On appointment to a post in a
public sector enterprise cn immediate absorption basis,
a Government servant will be at par with other employees
of the enterprise and will be governed by the rules of the
enterprise in all respects.

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--/4) .fensiol1ar~l?!..~Ilt~.$.

i) R"~;LgJ)ati",, 'fe'om ';:nw"rnme"t 5~rvice wi th a view to

~ secure emp~'V:ne~t it, a Contri11 public enterprise with
proper peX'm:tssion ""'111 not antail forefeiture of the
service l0'f ·:the p'rr;ose of ret,irement/terminal benefi ts.
In ,s.U,C.h C,i1~"iS". th" f!'!overnment servant concerned shall be
deel!red to; IitiVe' reti;'ed from serVice from the date of
such re$t;n;.ttion er,¢ shall be ~)li gible to racei ve all
retirement/"terminc.J.: benefi ts 41$ admissible under the
ralevani'
tion. l'u.:l.es
' t··...• aprlicable
'.;. • t o hiJn
.. in his . parent . organisa.
.. . .~ ,, .
..-+i) The <>tfj,ce-':f ,';Ugi»,le' for, pensi,." Should exercise an
option '¥it.,I; .. 6 mort"s o;f the date, of his reSignation
for qi thf'I'. 9:f th~ ;f~~llo1ihg two '\nlternati ves s ,
a) P:.6 :");'lI~ 'llIOr¢hl'y ';pens'i orr a M ~e"'th -c Uffi-ret1reme nt
gr.1t14i .~l· . us. adM.t ~Jb.t .. t.a.r'r.:lo.r _19 relevant rules •
b) 'ho,."t.,*,,;; g'rat;v~ t'l and a tiAmps"'lI.lmount in lieu of
pe nsi"" work(;Q;0""UJt." w.t th r'4.f2r.~ce to the commutation
tab!u; ·apPlicabl~ en ;the date ~lf reSignation.
-.w..:tll.l Ylhen""" · 01> t,;,0 n ~s ~x"
rci sed fI>Ii t,..~ n the pre Scr1 bed
" tim" {l;imit, 'the "if!c q' .1:1].1 bci, governed by alter_
' ·~re!!·t.?d
nat:;·,:,;;,.( .as
a) tc1bc,v.?~·
i na.:~. ()ptio'p once '~){\~rcised shall be

_Ui) Any f\ll' ~.~,"r, ~ib<;ralis"ti9n: ot pension .rules decided

. ,lIj:>on)l'{: ,t~'c'!et!''''.nt ujCi;et' th ~ Illata ot r!lSiqnation of
a Cent;:-:,.:. Go'!extlment ·serVant 'f;o jbi." the: public
se. wtll
ent~rr~~·:;t. .
; .t
not be.. (lxtenot!ld to (lim.
•
.'.
.
y) A GoVfltlt'line'nlosexv$nt Who dpt~ for Pl1p-"lit~ monthly
P~nsi,ftf\t, on Ili$ 'tElsigncttion frOl!ll GOV'Irnment service will
hot,~
1;n t1:u .ft; Pt.:blic·
entitled ent(?Jprjs.~.
to re'l.ef on p,ensic!'l
'. durlng hi,S service
'

.-4r 1& ~·~.e

t,

i A SOV;jO\"nmentsorvant takirig up an aJ)p$intnlent in a

C'lntl'al ,,,,-,bUe "ntQ1."prise will be enti tIed t<> encashment
,of "ilrm toi;l leave to his oredi t at the time of aCCeptance
of hi s ..,e 51 9n!lti C·" from GoVel" nrllenit" er vie e• s lIbj ec t to
•. of 180 days. Half pay leave wiJ.l staoo forefei ted •
a limi 1;",
~.un!f .ll.x._ e,enS:1on:
.ref t' here h 'pO fam;Uy Pe"sl0,n ,ch"",e ill a public
' entex>:oIrise; 0;1: if the, at'tic".., dQ~s, not become eligIble
to Joe in fam£ly pension ,SCheme'ir/, the enterprise, the
iam
..~.l. y pension as a.dmisSible.
win, b'9 allowed to 'him.,' und.er the Contral Gov.
, ernment

L ,

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For the punpos o of these instructions

means acceptance of resignation
--
irrmediate absorption
of an officer from Government
servi~e to enable him to take up an appointment in a Central,
public enterprise, for which he had applied with proper '
permi s si 0 n•

..--3. Since the terminal benefi ts mentioned above are admissible

,- 0 n.ly to those officers who leave Government service to secur-e
employment in the enterprise, with proper perrni.ss i on , a case of
grant of t hes e' benefits may be processed only af t er ascertaining
from the ente;rprise concerned thc t the officer has actually
j oi ned them.;,
!

~. The stipulation of 'immediate absorption' will apply to

' all appointments of Central Government servants in the Central
public ent'erprises, irrespective of the level of appointment,
the mode of recrui tmerrt, and whether an appointment is in
public interest or o t herwl s s , but subject to the exceptions.
made in the OMdated 6.3.1985 referred to above. '
---5. For the prupos e of th ese orders, a Central public enterpri se
is an undertaking wholly or substantially owned by the Govern_
ment of India, and which is accepted as s~ch by the Bureau of
Public Enterprises.

_.-? The t,e~mina:l ben~fi ts etc. enumerated in para 1 above will

be admiSSible to all" Central Government servants, who secure'
appointments in Central public enterprises'with proper permission.
A Government servant selected'for appointment in an enterprise
on the basis of an applicati,on submitted by him before joining
the Government service will be deemed to have applied with proper
permission for ,the purpose of these orders.

~ , All existing instructions on the subject will stand amended/

superseded to the extent indicated in the preceding paragraphs.
Formal' amendments in the statutory rules, where considered
necessary, will be carried out in due course.
-8. All cases of grant of pensionary benefits etc. to
Government servants, Who are appointed in the Central public
sector enterprises on immediate absorption basis, shall be
decided by the administrative Ministries/Cadre Controlling
AuthoritieS/Authorities competent to accept reSignation of a
Governmellt servant in accordance with provisions or this OM
All other cases not covered under the provi sions of this OM
or whfch require r~laxation of any provision should conti nue
to be r~ferre_ to the Bureau of Public Enterprises ~ith
necessary service particulars. Cases of doubtful nature also
• should continue to be referred to the Bureau of Public Enterprises •
r • The Ministry of HomeAffairs, etc. may please bring these
o:rders to the noti ce of all concerned including the public '__'_,_
enterprises under their administrative control.

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10. So far as the officers serving in the Indian Audit and

Accounts Department are cone er nad , these orders are being
issued after consul ting the e~mptroller & Auditor General of
India.

11. These orders take effect from 6.3.1985.

12. This issues with the concurrence of the Ministry of
Finance (Department of Expe ndf, ture) and the Department of
Public Enterprises.
13. Hindi version will follow.

5d/-
( A. Jayaraman)
D.irector.
To

1. All Ministries/Oepartments/Offices of the Government of

India as per the standard list.
2. Office of the C&AG,New Delhi.
3. All attached and subordi mlte offices of the (i) Ministry
of Personnel, Public Grievances & Pension, and (ii)
Ministry of Home Affairs.
4.
All Offices and Sections of the (i) Ministry of Personnel
Public Grievances & Pensions, and(ii) Ministry of Home
Affairs •

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