File No.

ENE51-HR0SR/9/2023-PO9

TRANSMISSION CORPORATION OF ANDHRA PRADESH LIMITED

VIDYUT SOUDHA :: VIJAYAWADA
(a wholly owned State Govt., Company)
CIN: U31909AP1998SGC107226 :: Website: www.aptransco.co.in

ORDERS
CMD/JMD/Addl.Secy/DS(Estt, IR&R)/PO(IR)/PRC/2022, DT.11/09/2023

Sub.: APTRANSCO – Orders Passed - Consequent to the Order

dated 6-9-23 of Hon’ble High Court in WP.No.23427/2023 – after
having given full opportunity to the concerned & full
consideration to the grievances expressed by the concerned in the
Meetings held on 08.09.2023 and 11.09.2023 – Speeking
a Orders
passed - Intimation.

Ref.:
1. Meetings held on 08.09.2023 & 11.09.2023 in the chambers of the
Chairman and Managing Director, APTRANSCO.
2. Lr. No. Addl. Secy/DS (Estt., IR&R)/PO(IR)/PRC/2022, Dt:07.09.2023.
3. Orders of the Hon’ble High Court in W.P., No. 23427/2023 dated
06.09.2023.
4. Representation Dt:22.08.2023 of APSEB Engineers’ Association.
5. APTRANSCO Order Bearing No. T. O. O. (Addl. Secy-Per) Ms. No. 2924 dated
21.08.2023
6. Memorandum of Settlement dated 16.08.2023
7. Representation Dt:10.08.2023 of APSEB Engineers’ Association.
8. Letter No. 35/OP. A3/2018, dated 19.07.2023 issued by the Government Of
Andhra Pradesh.
9. Several Meetings (almost about 29 meetings (“all inclusive”)) that were
conducted to negotiate the terms on several dates including but not limited
to 26.04.2023, 09.05.2023, 30.05.2023, 21.06.2023 and 09.08.2023.
10.One-Man Commission Report on PRC 2022 dated 16.08.2022
11.APTRANSCO Order Bearing No. T. O. O. (Addl. Secy-Per) Ms. No. 2357
dated 04.02.2022
12.Government Order Bearing No. GO RT/24/2022/ENE01-Energy dated
02.02.2022

*** *** ***

The scales of Pay and Allowances of Workmen and other than workmen in
O&M, Construction Staff, Office Staff, Security Staff, Medical Staff, Education Staff,
Fire Fighting Staff etc were revised w.e.f. 01.04.2018 on the basis of
Memorandum of settlement signed on 31.05.2018. The said settlement was
Operative up to 31.03.2022. Hence, the said scales of Pay and Allowances of
Workmen and other than workmen have to be revised w.e.f. 01.04.2022.
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2. The Government of Andhra Pradesh have appointed a Pay Revision

Commission vide G.0. Ms. No. 4, Energy (0P) Department, Govt of AP.,
Dt.02.02.2022 chaired by Dr. Manmohan Singh, lAS (Retd), and these orders have
been adopted by APTRANSCO vide T.O.O. (Addl. Secy-per) Ms.No.2357,
Dt.04.02.2022. The Commission has submitted its recommendations to the
Government through its report as referred to at Sl. No. 10 hereinabove.
Thereafter, the Govt of AP vide letter dt.20.07.2023 while enclosing the Report of
the Pay Revision Commission have requested the Managements of A.P Power
Utilities to place the report before the Wage Negotiation Committee. It was
thereafter noted therein to undertake bilateral negotiations.

3. Accordingly, the Management has conducted series of negotiations with

recognized Unions/Associations. There upon, the Managements considering the
Recommendations of the Commission and other relevant factors has offered the
Proposals to the Employees Unions and Associations on the Revision of Pay
Scales and Allowances, 2022. The interested parties have held discussions in all
29 rounds of meetings, every time with participation of several unions of
workmen category employees and Associations of the employees from other than
workmen category. Even prior to orders dt 20-7-2023 by the Government of
Andhra Pradesh, few meetings were held with Government of Andhra Pradesh
represented by Secretaries of energy department and finance department besides
few meetings held in the presence of the Chief Secretary also. After 20-7-2023,
when the govt has issued orders directing the Managements of the Power Utilities
to have further negotiations with the employees, the power utilities have held few
more meetings.

4. During above said meetings prior to 20-7-2023, the recommendations of

One Man Pay Revision Commission were shared with Associations and Unions of
employees. Having considered the recommendations of the said One Man
Commission, the employees have expressed their resentment and went on
holding lunch time dharnas, relay hunger strike etc., besides giving strike call to
be commenced from 10-8-2023.

5. Since, the supply of power being essential to cater the needs of every
individual in the state, and the said strike is illegal as the services in power sector
are declared as essential under the A.P essential services maintenance Act, the
Managements of all power utilities have requested the employees not to go for
strike, in particular when the monthly pay of such employees are very much high
when compared to other states/ departments/ companies. However, the
employees were hell-bent to go for strike saying not to disturb the earlier PRC
system and to continue the elongation of master scale from time to time by
granting additional fitment during pay revision schedule.

6. As the above such strike is illegal, and to have harmony and conducive
atmosphere in day-to-day operations in power sector besides management of
organisations, a final meeting was held on 09.08.2023 i.e., a day prior to
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commencement of said strike call in the presence of Group of Hon’ble ministers

representing the Government of Andhra Pradesh to resolve the issue. In the said
meeting of negotiations with employees, the Chief Secretary besides Special Chief
Secretaries of departments of finance, energy, and the CMDs of all power utilities
were present. On behalf of employee’s, leaders of JAC, Associations of employees
representing other than workmen, and unions of workmen have participated. The
said meeting was held for five long hours. The said fact is reflected in the print
and electronic media as well. Consequent to the above meeting, a Mintues of the
Meeting was executed between the Management of the Corporation with the
Unions agreeing to the altered recommendations of the Revised Pay Commission.
In spite of the above-mentioned Mintues, immediately after the conclusion of the
meeting on 09.08.2023, the employees who are other than workmen category,
have made a representation dated 10-8-2023.

7. Thereafter, having considered the submissions made in the above-

mentioned representation and also various other necessary considerations and
also the immediate requirement of the implementation of the Altered PRC
Recommendations, the Corporation had issued the Order referred to at Sl. No. 5
herein above.

8. Aggrieved by the Order dated 21.08.2023, the employees who are other
than workmen category have submitted another representation dated
22.08.2023 wherein the arrangement made vide memorandum of settlement
dt.16.8.2023 was stated as signed only by the leaders of workmen but it contain
arrangement in respect of all employees including the executives i.e., category of
other than workmen, and that the same is allegedly contrary to the tripartite
agreement entered in 1998 when electricity reforms were under taken by the
then govt reorganising the then APSEB in to several power companies, and that
the recent arrangement made is not binding on the category of employees other
than workmen on the ground that, the cap on single master scale at Rs
2,59,895/- as specified in the said agreement is adverse to their interest, and that
it will have consequential effect even beyond four years of pay revision period.

9. Subsequently, aggrieved by the above Order dated 21.08.2023 and also

being aggrieved by the fact of non-consideration of the Representations that were
submitted by the employees who are other than workmen category, few of the
Employees who are not workmen have approached the Hon’ble High Court and
challenged the Order through WP. No. 23427 of 2023. After having considered the
submissions made by the parties therein, the Hon’ble High Court was pleased to
pass the following directions while disposing the above-mentioned Writ Petition:

“Therefore, without going into the merits of the case, this

court feels it appropriate to direct the 2nd respondent to dispose of
the representation dated 10.08.2023 and 22.08.2023 made by the
petitioner’s Association and pass appropriate orders, in accordance
with law, within a period of one (1) week from the date of receipt of
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a copy of this order. Till passing of such order, the impugned order
dated 21.08.2023 shall not be given effect to”.

10. Consequent to the Orders of the Hon’ble High Court, the Corporation had
issued notices as referred to at Sl. No. 2 herein above calling upon the Employees
who are not workmen to participate in the discussions in the meeting on
08.09.2023 in the chambers of Chairman and Managing Director, APTRANSCO. In
compliance of the orders dated 06.09.2023 passed by the Hon’ble High Court in
the reference 3rd cited, the managements of APTRANSCO and other power
utilities undertook the process of deliberation with their employees of the
category ‘other than workmen’, and in particular grievances stated in the
representations dated 10.08.2023 and 22.08.2023 submitted by the APSEB
Engineers’ Association and APSEB AEEs’ Association were considered.

11. The following are the grievances stated by the said Associations.

i. Several provisions in MOM dated:09.08.2023 are haphazard and

detrimental to the Engineering community.
ii. The orders vide T.O.O dated 21.08.2023 were issued unilaterally.
iii. The report of Manmohan Singh Committee was not communicated to the
said two Associations nor kept in public domain.
iv. Imposing a cap on the maximum of the Master Scale Rs.2,59,895/- leading
to a peculiar situation of reduction of salaries in the PRC – 2022 and such
reduction effects the employees for the next decade.
v. Due to the imposition of cap on the maximum Master Scale of
Rs.2,59,895/-, every engineer is going to lose future increments viz annual
grade increments, promotional increments, SGP/SPP increments
which is against the spirit of Tripartite Agreement of 1998.
vi. To allow and continue the increments beyond Master Scale with unlimited
elongation as per the method that was followed in earlier PRC.
vii.The impact of PRC – 2022 is affecting beyond 4 years of PRC schedule
period.
viii.By the effect of new PRC – 2022 newly recruited Assistant Executive
Engineer entered at 35th stage will get only 42 increments in the entire
service as against expected minimum of 50 increments and consequently
the rate of increment will be reduced to 2.25%.

12. It is noted that most of the above said grievances were canvassed only in
the Representation dated: 22.08.2023. In fact, in the Representation dated:
10.08.2023 vide reference 1st cited, they have only stated that their demands
stated in the Representation of APSPE JAC agitation Notice Dated: 20.07.2023
requesting to set aside One-Man Commission Report and not to accept concept of
Personal Pay and that unlimited elongation of Master Scale should be continued.

13. As could be seen from the minutes of the meeting, the settlement of
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Agreement, those reflects the reason for not accepting demands in full which are
stated in the agitation notice dated:20.07.2023.

14. In respect of the grievances canvassed in the representation dated

22.08.2023 i.e., after the issuance of orders vide T.O.O.2924, dated.21.08.2023, at
the outset it is to state that the claim of the said two associations that the
recommendations of the PRC – 2022 is not shared to the Associations of the
employees is a brazen statement with utter false hood and same is self-
contradictory. Indisputably, the Associations have participated in 29 rounds of
meetings during last 4 months period and deliberated only as to the effect of
recommendations of PRC 2022. The representation dated 10.08.2023 clearly
shows that their agitation notice dated 20.07.2023 is only towards challenging
the recommendations of the PRC-2022. Therefore, such claim that PRC – 2022
recommendations was not shared is incorrect and self-contradictory in nature. As
a matter of fact, the recommendations of PRC 2022 are very much available in the
public domain as reflected in the WhatsApp Group of Joint Action Committee
formed for negotiations.

15. Before considering the other grievances as are raised by the Associations, it
actually becomes imperative to refer to few of the observations as were made by
the PRC Commission in its Report.

16. The material analysis contained in PRC 2022 recommendations as to the

high range of salaries to the employees in AP Power Utilities with reference to the
salaries of similar cadre of employees working in Government of AP, Other state
Public Sector Companies, other states’ Public Sector Companies/Power Utilities
and CPSEs like NTPC etc., are reproduced hereunder:

Table

X in Power Utilities Y in Engineering Department in

Government
Date Pay ₹. Date Pay
₹.
01.10.1997 3550 01.10.1997 3110
01.04.1998 Fixation of pay in Revised 01.07.1998 Fixation of pay in Revised
Scales Scales
Pay 3550 Pay 3110
DA 46.75% 1660 DA 66% 2053
Fitment 20% 710 Fitment 25% 778
Total 5920 Total 5941
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Next Stage (Minimum of Pay fixed in the Revised Pay 5980

7250 RPS) Scales
Service 300
Weightage (1)
Pay fixed in the Revised 7550
Scales
01.10.1998 7850 01.10.1998 6150
01.10.1999 8200 01.10.1999 6350
01.10.2000 8550 01.10.2000 6550
01.10.2001 8900 01.10.2001 6750
01.04.2002 Fixation of pay in Revised 01.10.2002 6950
Scales
Pay 8900 01.07.2003 Fixation of pay in Revised
Scales
DA 27.89% 2482 Pay 6950
Fitment 15% 1335 DA 30.266% 2103
Total 12717 Fitment 16% 1112
Next Stage Total 10165
12765
Service Pay fixed in the Revised Pay 10285
Weightage (1) 500 Scales
Pay fixed in the Revised 13265
Scales
01.10.2002 13765

01.10.2003 14340 01.10.2003 10565

01.10.2004 14915 01.10.2004 10845
01.10.2005 15490 01.10.2005 11125
01.04.2006 Fixation of pay in Revised 01.10.2006 11440
Scales
Pay 15490 01.10.2007 11755
DA 17.110% 2650 01.07.2008 Fixation of pay in Revised
Scales
Fitment 16 % 2478 Pay 11755
Total 20618 DA 42.390% 4983
Next Stage 20715 Fitment 39% 4584
Service 1540 Total 21322
Weightage (2)
Pay fixed in the Revised 22255* Pay fixed in the Revised Pay 21820
Scales Scales
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01.10.2006 23115
01.10.2007 23975
01.10.2008 24835 01.10.2008 22430
01.10.2009 25695 01.10.2009 23040
01.04.2010 Fixation of pay in Revised 01.10.2010 23650
Scales
Pay 25695 01.10.2011 24300
DA 35.731% 9181 01.10.2012 24950
Fitment 30% 7709 01.07.2013 Fixation of pay in Revised
Scales
Total 42585 Pay
24950
Next Stage 42720 DA 63.344% 15804
Service 3015 Fitment 43% 10789
Weightage (2)
Pay fixed in the Revised 45735 Total 51543
Scales
01.10.2010 **47320 Pay fixed in the Revised Pay 52590
Scales
01.10.2011 48905
01.10.2012 50490
01.10.2013 52075 01.10.2013 53950
01.04.2014 Fixation of pay in Revised
Scales
Pay 52075
DA 47.797 24890
Fitment 30% 15623
Total 92588
Next Stage 92705
Service 9345
Weightage (3)
Pay fixed in the Revised ***10205
Scales 0
01.10.2014 105165 01.10.2014 55410
01.10.2015 108280 01.10.2015 56870
01.10.2016 116660 01.10.2016 58330
01.10.2017 115040 01.10.2017 59890
01.04.2018 Fixation of pay in Revised 01.07.2018 Fixation of pay in Revised
Scales Scales
Pay 115040 Pay 59890
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DA 21.094% 24267 DA(30.392%) 18202

Fitment 25% 28760 Fitment 23% 13775
Total 168067 Total 91867
Next Stage 168155 Pay fixed in the Revised Scales 92110
Service 14820
Weightage (3)
Pay fixed in the Revised ****18297
Scales 5
01.10.2018 187915 01.10.2018 94500
01.10.2019 192855 01.10.2019 96890
01.10.2020 197795 01.10.2020 99430
01.10.2021 202735 01.10.2021 101970

*Maximum of the time scale is₹. 21485 in 2006 Pay Scales. Scale elongated.
**Maximum of the time scale is ₹.35270 in 2010 Pay Scales. Scale elongated.
***Maximum of the time scale is ₹. 63600 in 2014 Pay Scales. Scale elongated.
***Maximum of the time scale is ₹. 92965 in 2018 Pay Scales. Scale elongated.

• The graphical representation of the above disparity is as under:

PAY OF ASSISTANT EXECUTIVE ENGINEERS WHO JOINED ON 1ST OCTOBER 1997 IN ONE OF

THE POWER UTILITIES AND IN ONE OF THE GOVT ENG. DEPARTMENT

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17. It is relevant to place on record that, the one-man Commission drew a

comparison of salaries drawn by the Senior Officers of the Andhra Power Utilities
and Senior Officers belonging to the similar categories in the Engineering
Departments of the Government. It is very surprising to note that the gross
salaries of the Senior most employees of the Power Utilities are at least one and
half times more than their counter parts in Government Departments.

18. The table showing the comparison can be in succeeding pages.

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19. The above table shows that there is much disparity in the maximum pay that can be
drawn by various categories of senior employees of the Power Utilities of Andhra Pradesh
compared to similar categories in other Power Utilities and Government. It is limit less in the
Power Utilities of Andhra Pradesh whereas it is not the case in other Utilities except workmen in
National Thermal Power Corporation where it is an open-ended scale. For purpose of
comparison, the present pay drawn by various categories in AP Power Utilities and the
maximum pay that can be taken by their counter parts in other Power Utilities and the
Government of Andhra Pradesh presuming appointments to all Automatic Advancement Grades
including benefit after 30 years of service allowed vide G.O. Ms. No.1 Finance (PC – TA)
Department dated 17.01.2022, is as shown in the table on the succeeding page:
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20. In Odisha, there are separate service Conditions and Rules for Executives
and Non-Executives. The classification, structure and pay scales of Non-Executive
and Executive Grades are as under:
Table

Non Executives Executives

Grade Pay Grade Title Pay
Matrix Matrix
₹. ₹.
Unskilled NE 1 17,200- E1 Management
54,600 Trainee/GET/

DET
Semi Skilled - B NE 2 19,900- E 2 EE 1 Junior Manager 44,900-
63,200 1,42,400
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Semi Skilled - A NE 3 22,700- E 3 EE 2 Assistant Manager 56,100-

72,000 1,77,500
Skilled - C NE 4 25,500- E4 Deputy Manager
81,100
Skilled - B NE 5 26,400\- E 5 EE 3 Manager 67,700-
83,600 2,08,700
Skilled - A NE 6 29,200- E6 Assistant General
92,300 Manager
Highly Skilled –B NE 7 31,400- E 7 EE 4 Deputy General Manager 78,800-
99,700 2,09,200
Highly Skilled - NE 8 35,400- E 8 EE 5 General Manager 1,23,100-
A/ 1,12,400 2,15,900
Supervisory E 9 EE 6 Senior General Manager 1,27,100-
2,16,300
C, B &A
E 10 E7 Chief General Manager 1,35,100-
2,16,800

21. The National Thermal Power Corporation (NTPC) engaged in generation

and allied activities. The pay for Non Executives is open ended. The rate of annual
increment is 3% and resultant amount will be rounded off to the next multiple of
₹.10/-. The pay of the Non Executives and pay scales of the Executives with effect
from 01.0.2017 are as shown in Table 05.04 in the next page.

Table 05.04.
Non-Executives Executives
Grade ₹. Grade ₹.
W0 20,000 E0 30,000-1,20,000
W1 20,500 E1 40,000-1,40,000
W2 21,000 E2 50,000-1,60,000
W3 21,500 E3 60,000-1,80,000
W4 22,000 E4 70,000-2,00,000
W5 22,500 E5 80,000-2,20,000
W6 23,000 E6 90,000-2,40,000
W7 24,000 E7 1,00,000-2,60,000
W8 25,000 E8 1,20,000-2,80,000
E9 1,50,000-3,00,000

22. The Power Grid Corporation of India is the largest electrical power
transmission utility in India. The pay scales of Workers and, Supervisors and
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Executives of Power Grid Corporation of India are as under:

Table

Workmen/Supervisors Executives
Grade ₹. Grade ₹.
Workmen Supervisors
W0 20,000-57,500 E0 30,000-1,20,000
W1 20,500-68,000 E1 40,000-1,40,000
W2 21,000-72,000 E2 50,000-1,60,000
W3 21,500-74,000 E3 60,000-1,80,000
W4 22,000-85,000 E4 70,000-2,00,000
W5 22,500-1,00,000 E5 80,000-2,20,000
W6 23,000-1,05,000 E6 90,000-2,40,000
W7 24,000-1,08,000 E7 1,00,000-2,60,000
W8 S1 25,000-1,17,500 E8 1,20,000-2,80,000
W9 S2 26,000-1,18,000 E9 1,50,000-3,00,000
W10 S3 27,000-1,18,500
W11 S4 28,000-1,19,000
SG SSG 29,000-1,19,500

23. The Bharat Heavy Electricals Ltd., is engaged in the design, engineering,
manufacturing, construction, testing, commissioning and servicing of a wide
range of products, systems and services for the core sectors of the economy, viz.
power, transmission, industry, transportation, renewable energy, oil & gas, and
defence. The pay scales of Workers and, Supervisors and Executives of Bharat
Heavy Electricals Ltd., are as under:
Table

Workmen/Supervisors
Workmen ₹.

Grade Designation
A1/B1 Unskilled Worker/Attendant Grade II 23,000-50,000
A2/B2 Semi-Skilled Worker/Attendant Grade I 24,000-55,000
A3/B3 Artisan Grade IV/Clerk/Typist 29,500-65,000
A4/B4 Artisan Grade III/Assistant Grade II 30,000-75,000
A5/B5 Artisan Grade II/Nurses Grade II 30,500-85,000
A6/B6 Artisan Grade I/Nurse Grade I/Assistant Grade I 31,000-95,000
A7/B7 Technician/Senior Assistant Grade III 33,500-1,20,000
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A8/B8 Senior Technician/Senior Assistant Grade II 37,000-1,30,000

A9/B9 Master Technician/Senior Assistant Grade I 42,500-1,40,000
A10/B10 General Technician/General Assistant 53,000-1,65,000
A11/B11 Chief Technician/Chief Assistant 55,000-1,70,000
A12/B12 Senior Chief Technician/Senior Chief Assistant 59,000-1,79,000
Supervisory
S0 Supervisory Trainees/Assistant Engineer Grade III/ 32,000-1,00,000

Assistant Officer Grade IIII

S1 Assistant Engineer Grade II/Assistant Officer Grade II 33,000-1,25,000

S2 Assistant Engineer Grade I/Assistant Officer Grade I 37,000-1,30,000

S3 Deputy Engineer/Deputy Officer 42,500-1,40,000
S3 A Deputy Engineer/Deputy Officer 48,000-1,50,000
S4 Additional Engineer Grade II/ 60,000-1,80,000

Additional Officer Grade II

S5 Additional Engineer Grade I/ 70,000-2,00,000

Additional Officer Grade I

S6 Senior Additional Engineer Grade II/ 80,000-2,20,000

Senior Additional Officer Grade II

S7 Senior Additional Engineer Grade I/ 90,000-2,40,000

Senior Additional Officer Grade I

S8 Executive Additional Engineer Grade I/

Executive Additional Officer Grade I

Executive
JE Junior Executive 35,000-1,25,000
ET Engineer Trainee/Executive Trainee 50,000-1,60,000
E1 Engineer/Accounts Officer/Executive 60,000-1,80,000
E2 Senior Engineer/Senior Accounts Officer/Senior 70,000-2,00,000
Executive
E3 Deputy Manager 80,000-2,20,000
E4 Manager 90,000-2,40,000
E5 Senior Manager 1,00,000-
2,60,000
E6 Senior Deputy General Manager 1,20,000-
2,80,000
E7 Additional General Manager 1,20,000-
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2,80,000
E8 General Manager 1,20,000-
2,80,000
E9 Executive Director 1,50,000-
3,00,000
Director 1,80,000-
3,40,000
Chairman and Managing Director 2,00,000-
3,70,000

24. The Commission found that many States like Kerala and Karnataka which
do not follow Central Pattern and Gujarat, Rajasthan, Punjab, Haryana, West
Bengal, Uttar Pradesh, Madhya Pradesh, etc., align pay revision of Power Utilities
in their States with the Pay Revision of State Government employees. In earlier
days, there used to be an alignment between the pay revisions of the State
Government employees and erstwhile employees of the Andhra Pradesh State
Electricity Board. It went on till 1986. There was a pay revision 1990 followed in
1994 and 1998. Eventually, the 1998 Pay Revision Commission preceded
unbundling of the Board. In the guise of protection of service benefits covered
under Tripartite Agreement, the Commission feels that pay revision in Power
Utilities is taking place in every four years regularly. The Commission does not
find logic that the pay scales of the Power Utilities should be higher as they
perform more onerous duties. The Commission finds that only the duties of some
categories may be of specialized nature but all such as last grade service,
ministerial and administrative wings. In the guise of specialized nature of work,
the Commission does not favor of special dispensation towards all categories of
employees of Power Utilities. To conclude, the Commission suggests that the Pay
Revision of the Power Utilities be aligned with State Pay Revisions and if possible,
to adopt the State Scales, duly allowing appropriate allowances depending upon
specific difficulties/higher skill required for the specific jobs.

25. The above said details clearly goes to show that, all the employees
including the petitioners and workmen category employees of respondent have
been getting salaries, much more than of salaries of equal cadre of employees in
government services, other P.S.U.S and P.S. U’S of other states. Therefore, while
undertaking the exercise of pay revision in this year which was due in 2022, it is
proposed to correct the mistake of said elongation of master scale and to
maintain ceiling of master scale, and then all other amounts payable to employees
including increase of fitment etc., be kept in personal pay component, so that
there should not be any violation in the master scale specified for each cadre. But
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the petitioners and other category of employees went on insisting not to maintain
ceiling of Master Scale of each cadre, and thus insisted to perpetuate the said
mistake crept in such elongation of Master scale of each cadre. However, But the
managements of State Power Utilities and the Government of Andhra Pradesh
tried to impress the employees saying that such elongation of Master Scale has
created havoc in Pay fixation, besides creating unrest in the employee community
who are working in Government and government organisations, but in vain.

26. The above details clearly shows that, the Chief Engineer of APTRANSCO is
getting pay of rupees more than 4 lakhs while the similar cadre of power utilities
of other states are drawing much lesser amount. Further when compared with
similar cadre of AP Government Employees or Employees working in PSU’s they
are also drawing much lesser amount than the pay of the employees of AP Power
utilities.

27. Further, on the claims made by the said associations on the legal aspect, it
is got studied by lawmen as to the legal rights of employees about their wages
and obligation of managements of companies incorporated under companies Act.
It was opined by the experts that law evolved through precedents by Hon'ble
Supreme Court in respect establishments covered by Article 12 of Constitution of
India, the financial stringency can be aground to revise the wages of employees of
such establishments and the managements are at liberty to seek a decision of
Industrial Tribunal about the revision of wages of workers.

28. Further to state that the AP state power companies are concerned, those
are under huge financial losses and borrowing capacity is also exhausted and no
financial institution is coming forward to advance loans except on high rate of
interest considering their bad financial position.

29. The APTRANSCO has further examined the specific grievances as canvassed
by the said two Associations which are stated above and the appropriate finding
together reasons are stated hereunder, duly considering the analysis got studied
as to legal rights of employees and obligations of management of AP Power
Utilities, since the revisions to be applied for all power utilities.

i. Several provisions in MOM dated:09.08.2023 are haphazard and

detrimental to the Engineering community.

Analysis and finding of APTRANSCO:

Ans.: The said MOM dated 09.08.2023 are made as a result of 29 rounds of
meeting with the APSEB JAC by the Managements of AP Power Companies
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together with senior Government officials. The final meeting

dated:09.08.2023 was held in the presence of Group of Ministers Sri Peddy
Reddy Rama Chandra Reddy, Hon’ble Minister for Energy, Environment
Forests Science and Technology, Mines & Geology, Government of A.P and
Sri Botsa Satyanarayana, Hon’ble Minister for Education, Govt., of A.P. In
the said final meeting, the leaders of said two Associations have
participated till the closure of the meeting, but left at the time of recording
the minutes. However, all other members of JAC have signed the said
minutes of the meeting. After thorough examination of the demands of the
JAC, considering in the very long negotiation process in several such
meetings with reference to the recommendations of the PRC Commission
and audit objections who found fault with the unlimited elongation of
Master Scale of relevant cadre of employees that effected in the earlier pay
revision occasions. The said minutes are recorded. The Pay Revision
commission and the said audit report clearly found that while effecting the
earlier Pay Revisions an error crept in unlimited elongation of Master Scale
each of the relevant cadre of employees and that same is contrary to law.
Although, the said recommendations of the PRC – 2022 are binding, still
the Govt, and Managements of Power Utilities considering the imminent
necessity to avoid the proposed strike, took a concerted decision, in part
deviation of the said recommendations and to maintain harmony in the
industrial relations of management and employees; and decided to have
cap on Master Scale at one stage instead of Master Scale of each of several
cadres (time scales). As such the said claim that the decisions recorded in
MOM dated 09.08.2023 are haphazard is baseless, and therefore not
accepted.

ii. The orders vide T.O.O dated 21.08.2023 were issued unilaterally.

Analysis and finding of APTRANSCO:

Ans: The said orders were issued in pursuance of the decisions taken in
the presence of the said two Associations during the final meeting
dated:09.08.2023 together with the settlement agreement dated
16.08.2023 entered with recognised unions of workmen category. Even in
the earlier PRC occasions, although such settlement agreement contains
the details about the wage revision of employees other than workmen
category together with the workmen category of employees, but only
unions of workmen category used to sign such settlement agreements.
Therefore, the claim of the said Associations that the said order was issued
unilaterally by APTRANSCO, is not correct.
 File No.ENE51-HR0SR/9/2023-PO9

iii. The report of Manmohan Singh Commission recommendations were

not communicated to the said two Associations, nor kept in public
domain.
Analysis and finding of APTRANSCO:

Ans: The said claim is incorrect as the recommendations of One Man Pay
Revision Commission was shared with Associations and Unions of
employees during the meeting prior to 20-7-2023.

iv. Imposing a cap on the maximum of the Master Scale Rs.2,59,895/-

leading to a peculiar situation of reduction of salaries in the PRC –
2022 and such reduction effects the employees for the next decade.

Analysis and finding of APTRANSCO:

Ans: As stated in the comments made in respect of question No.1 the cap
on the elongation of the Master Scale in respect of Highest cadre of
employees is decided in part deviation to the recommendations of the PRC
– 2022 which recommends to provide cap on unlimited elongation of
master scale of each cadre, only with a view to maintain harmony and
conducive atmosphere and the relations between management and
employees of AP Power Utilities.

v. Due to the imposition of cap on the maximum Master Scale of

Rs.2,59,895/-, every engineer is going to lose future increments viz
annual grade increments, promotional increments, SGP/SPP
increments which is against the spirit of Tripartite Agreement of
1998.

Analysis and finding of APTRANSCO:

Ans: In the context of the Pay Revision Commission (PRC) 2022 and the
concerns raised by employees and associations, it is crucial to clarify the
following points:

1. **Pay Assurance:** It is guaranteed to all employees, including the two

Associations, that their take home pay after the implementation of PRC
2022 will not be less than what they received in July 2023.

2. **Future Increment Claims:** Regarding the concern raised about losing

future increments for employees whose Master Scale exceeds
Rs.2,59,895/-, it is important to note that every eligible amount will be
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provided and incorporated as part of Personal Pay. This decision was made
due to the undue burden placed on AP Power Utilities caused by the
unlimited elongation of the Master Scale. This decision was also influenced
by the high salaries of employees in AP Power Utilities, as analysed by PRC
2022. It should be emphasized that such unlimited elongation of the Master
Scale and high salaries have also been a source of concern for employees of
the state government.

3. **Validity of Tripartite Agreement (1998):** The tripartite agreement

entered in 1998 between the then ABSEB, the government, and the
employees of the board had a specific objective - to protect the service
regulations of the then employees and ensure that their wages would not
be less favourable after the reorganization of the board into successor
entities. However, this agreement's validity ceases once those employees
are transferred to successor entities, with their service regulations and pay
protected. Moreover, it is worth noting that the agreement primarily
applied to personnel working in the A.P.S.E.B. at that time and not to those
recruited by successor entities subsequently.

4. **Bilateral Wage Negotiations:** The agreement explicitly states that

negotiations related to wages, including wage revisions, will be held
bilaterally. It does not impose any terms or conditions obligating successor
entities to settle pay/wage revisions with employees. Therefore, the
contention that not signing the agreement dated August 16, 2023, entered
into with worker/employee unions renders it non-binding and is not valid.

In conclusion, this statement reaffirms the commitments made in PRC

2022 and clarifies the applicability and limitations of the 1998 tripartite
agreement, emphasizing the importance of upholding agreements and
commitments within their intended scope.

vi. To allow and continue the increments beyond Master Scale as per the
method that is being followed.

Analysis and finding of APTRANSCO:

Ans: The said claim is nothing but seeking perpetuation of the error/
mistake crept in the past while effecting the earlier PRCs. Such unlimited
elongation of Master Scale is found as contrary to the law by the PRC –
2022, also by the Controller and Auditor General.

vii.The impact of PRC – 2022 is affecting beyond 4 years of PRC schedule

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period. Analysis and finding of APTRANSCO:

Ans: The said decisions recorded in the MOM dated 09.08.2023, the
settlement agreement 16.08.2023 and the orders vide T.O.O.2924 dated
21.08.2023 are in effect for 4 years as specifically mentioned therein.
Therefore, such claim is incorrect.

viii.By the effect of new PRC – 2022 newly recruited Assistant Executive
Engineer entered at 35th stage will get only 42 increments in the
entire service as against minimum of 50 increments and consequently
the rate of increment will be reduced to 2.25%.

Analysis and finding of APTRANSCO:

Ans: The said claim of entitlement of 50 increments is imaginary in nature.
The management of APTRANSCO or earlier organisations have never given
any assurance of 50 increments to employees of Assistant Engineers cadre
at the time of their recruitment. Further, the claim about reduction of rate
of increment 2.25% is also without any basis.

30. In view of the above facts and the analysis together findings stated above, it
is decided that, none of the said grievances are acceptable and therefore, not
accepted. Accordingly, the Order dated 21.08.2023 stands reinstated and is made
applicable to all the Employees of APTRANSCO.

K.VIJAYANAND IAS, CMD(KV)-FAC, CHAIRMAN AND MANAGING DIRECTOR-ENE51

To
The APSEB Engineers’ Association (Regd.No.874/1975), Vijayawada
The APSEB AEEs’ Associations (Regd.No.1185/1977), Vijayawada.

Copy submitted to
The Special Chief Secretary to Government, Energy Department, AP Secretariat,
Velagapudi.

Copy to
The MD, Genco & JMD(HR & Admin), APTRANSCO/VS/Vijayawada
All CMDs of Power Utilities.
The Director (Finance), APTRANSCO, VS, Vijayawada.
All Directors (Finance) of Power Utilities.
The FA&CCA, APTRANSCO, VS, Vijayawada
The CGM (Finance), APPCC, VS, Vijayawada
File No.ENE51-HR0SR/9/2023-PO9