Dear Friends, I understand that various cases are filed and pursued in different courts in the above two matters. It may be noted that the above things are pending for more than 10 years and the care should be taken to invoke the benefits available for senior citizens while pursuing the court cases. The courts should be impressed that the beneficiaries are above 60 years,and many would have already expired and hence the decisions should be made at the earliest so that at least the living pensioners could enjoy the benefits.This would lead for the speedy disposal of the cases. Yours faithfully
......................................................................................
As we are aware different ministries at Central govt. are extending
certain concessions and facilities to Senior citizens of the
country.Income tax rebate by Finance ministry,Concession on travel by
Railway Ministry and Ministry of Civil Aviation etc are few of
them.State Govts also extending certain facilities beneficial to
senior citizens.
Ministry of Social Justice & Empowerment is the nodal Ministry
responsible for welfare of the Senior Citizens.
It is stated that Courts in the country accord priority to cases
involving older persons and ensures their expeditious disposal!!
What is the reality is a matter for debate.
In general as well as in specific cases filed before Hon.Courts in
India, it can be found that there is inordinate delay in delivering
judgement which often takes more than ten years.In respect of cases
filed by Senior Citizens are also not having any exemption.Thus the
very purpose of filing cases are defeated.
Of course,our judiciary system has its on inherent constraints and
limitations to proceed fast as all are aware.More than that
unfortunately our political leadership is also not much interested to
streamline the process for early disposal of cases, for their own
vested interests.
Unless the Govt and people at helm of affairs initiate earnest steps
to give top priority to cases filed by Senior Citizens in the country
justice will be denied.
Only collective organizational pressure and efforts will succeed for
any speedy measures in this direction.Let us hope for the best.
.......................................................................................
Thank you for your detailed clarification. Still I am of the opinion that
there is a special provision or guideline that the litigation involving
senior citizens should be given priority and this was also impressed by the
Chief Justice of Madras High Court sometime back. Kindly check up with some
senior advocates. My only request is that if there is such provision, it
should be put into use for our benefit.
Reg the other point on organizational point of action, I fully agree with
you.
......................................................................................
.
As you have mentioned, during last July
2010, Madras High Court has initiated steps to Fast Track all cases
filed by senior Citizens.A press release was also made in this
direction, by Hon.Justice,M.Y Eqbal as follows:
"All senior citizens whose cases are pending in the High Court in
respect of all categories may directly approach the Registrar
(Judicial) and furnish the details regarding pendency of the cases.
This would enable the court to take up the cases on a priority basis "
Similar action was initiated by Mumbai High Court also earlier.
As mentioned earlier,Ministry of Social Justice & Empowerment, the
nodal Ministry
responsible for welfare of the Senior Citizens is also states that
Courts in the country accord priority to cases involving older persons
and ensures their expeditious disposal.
However the outcome in such cases are not known.
......................................................................................
it is true that the Presiding Officers in any court are very much kind with a
human heart and in one personal case @ High Court of AP., Hyderabad, the Judge
is kind enough to fix-up a date in July, 2011 for final hearing. Actually, the
case is pending since past 15 years. All the appellants can approach the The
Registrar and thence the Presiding Judge.
When the litigants/appellants approach the High Courts, they can as well move
levers of power to approach the Judicial Officer concerned and represent for
early and final hearing.
The Higher-ups/decision makers in the Banks should realize that they occupied
the seat[s] of power on our blood & sweat. They should not forget it. They never
come from heavens.
.....................................................................................
________________________________
In karnataka High Court also, I was told, that there was a move to accord
priority in cases filed by Senior Citizens and Subsequently I could not
gather information as to how they are doing it. Probably, the concerned
petitioners have to approach the Courts through their lawyers and try
to find early justice. Let the senior litigants take steps to get advantage
of this.
....................................................................................
.
As all are aware, Government of India has earmarked special benefits
and concessions for Senior Citizens of India.Different ministries,have
notified the details from time to time.
In the matter of cases involving senior citizen, The Chief Justice
of India had advised Chief Justices of all High Courts to accord
priority to cases involving older persons and ensure their
expeditious disposal. [vide letter of Government of India, Ministry of
Social Justice & Empowerment (SD Section), New Delhi, F. No. 20-76/99-
SD dated 03.11.1999]
Accordingly in 1999 itself Mumbai High Court had issued a circular to
this effect in the matter of cases involving Senior Citizen for speedy
disposal.At that time the age limit was 65 yrs.Last year the same has
been modified by reducing the age to 60 yrs and above.
However, as we know, the huge backlog of cases in various courts in
the country, as well as shortage of manpower in Judiciary and cases
coming up on priority basis etc. caused delay in the process of
hearing of cases and delivery of judgement.
Once, during his stint with the Bombay HC, Justice R M Lodha
commented that 70% to 80% cases involved senior citizens as parties.
In the midst of all these realities if Senior Citizens cases are
considered for speedy disposal it is a welcome move and great thing
indeed.
Is it really happening in all courts in the country?
.......................................................................................
..
.
As years roll on and pending cases mount in our Courts, it is but natural
that many of the cases are "upgraded" / "updated" as those of Senior
Citizens! And, to which of those cases can they give priority? The ones
becoming Senior Citizen's by natural delay or the ones file by those
"as" Senior Citizens at the entrant level? The Courts will find it
difficult!
How about Fast Track Courts? There are such Courts also.
.
........................................................................................
.
As per information, a total of 1,743 fast track courts were set up for
a period of five years, in 2000-01 following a recommendation by the
Eleventh Finance Commission, which had mooted the idea for expeditious
disposal of long-pending criminal cases.In the year 2006 about
1,80,00,000 cases were pending in Indian courts ,out of which
1,60,00,000cases were criminal ones.At present the figures might have
gone up.
When we look into latest figures pertaining to of pending cases in
the apex court, alone ,we will have clear picture on the gravity of
the situation
As per published data for the month of April 2011,released by SC,
total number of cases pending .before Hon. Supreme Court of
India,comes to the tune of 54547in numbers. Out of which once
connected matters are excluded 31917 Nos. of cases will be
pending .In other terms,65% of cases are pending more than one year.
While 7123 cases were newly registered during the above month,only
7098 cases were disposed of in same period.
Despite all these realities, Bank Pensioners -Senior Citizen- in the
country have no other alternative than to approach court to seek
justice on genuine demands,when all avenues are closed.
.........................................................................................
Mounting cases in supreme court and High Courts are due to...
1 Careless attitudes of Managements in giving solutions to similar cases
decided by high courts and taking it further knowing fully well the results.
2 Careless attitudes of its Legal departments who give improper feed back to
managements just to survive and justify their existence.
3 Careless attitude of IBA in not able to controll Managements who will not
like to apply judgements given in one High court to the problems of their
bank and instead approaching the courts again and again.
The Supreme Court , the IBA and the Central Government should fix
responsibility on concerned officials and start recovering court/ litigation
expenses from such individuals so that the Legal Department and the
managements will think twice before going to court.
This not only saves court time saves money also to bank as they have to
shell down money after the Judgement some times with interest. Unfortunately
the concerned individuals serving forgets that someday he will also come
out and face such trauma.
Eleventh Finance Commission, which had mooted the idea for expeditious
disposal of long-pending criminal cases.In the year 2006 about
1,80,00,000 cases were pending in Indian courts ,out of which
1,60,00,000cases were criminal ones.At present the figures might have
gone up.
When we look into latest figures pertaining to of pending cases in
the apex court, alone ,we will have clear picture on the gravity of
the situation
As per published data for the month of April 2011,released by SC,
total number of cases pending .before Hon. Supreme Court of
India,comes to the tune of 54547in numbers. Out of which once
connected matters are excluded 31917 Nos. of cases will be
pending .In other terms,65% of cases are pending more than one year.
While 7123 cases were newly registered during the above month,only
7098 cases were disposed of in same period.
Despite all these realities, Bank Pensioners -Senior Citizen- in the
country have no other alternative than to approach court to seek
justice on genuine demands,when all avenues are closed.
...
IBA is the main culprit in respect of every problem bank pensioners are facing. There was no business for IBA to advise banks making those who retired voluntarily (I observe the letters VRS being used. Here 'S' stands for 'Scheme'. Those who retire giving three months notice have retired/resigned voluntarily) ineligible for another option for pension. It is IBA which initiated amendments to Pension Regulations unilaterally, trying to take away the benefits which were already available. For Ex : Amendments to Regulation 28 and to Regulation 18 (Broken period regulations). Unfortunately, Unions/Associations/UFBU have remind silent or turning a blind eye. Does it mean that they are also party to such amendments ? All these questions have remind unanswered.
On account of wrong and illegal advise by IBA, Banks and retirees are fighting cases making advocates on both the sides richer. Therefore, UFBU should be vigilant, otherwise, even they may have to pay price at a later day.
.....................................................................................
General Public crying for action against officialdom where there is no justification and no one is answerable. The Honourable Supreme Court must wake up to fix responsibilities of the officials who always act in whimsical manner.
We have noted with appreciation the attitude of Hon'ble Justice Ranjit Singh of Punjab & Haryana Hingh Court who single handedly taking on the officials of Government of Punjab & Haryana who just file petitions to delay decision till a time beyond their own retirement to excape accountability and linger on the matter for years, even in those matter similar to those wherein High Court has already decided.
Hon'ble Supreme Court must dismiss such official/s from service without any recourse for these officials. ( Not Suspend as suspension from service is no meanful action against the erring staff)
Crying for action against the Dead Woods in Govt. Department. They have to take right decision in right earnst for which they draw heavy salary month after months from Govt. Exchequer.
I complaint to PMO/ DPG (goI) against the fraud played on me by Branch Manager of Oriental Bank of Commerce and one would amused to see the official response from Secretary (Financial Services) Govt. of India, headed by IAS of 1976 batch which uploaded in Govt of India Site as explanation from ICICII Bank and Secretary took no action for wilful wrong reporting and updation with reference to complaint No-DEABD/E/2010/00406.
We may pray fthat good sense may prevail upon these arrogant officials of Govt of India. I was shameful to the see the manner PMO works. Their subordinate deptt feed wrong information and it has no way to check the coorectness of the action.
.
......................................................................................
. beaurocracy is of permanence in nature. Corruption,nepotism,delaying tactics,procrastination,not-to-see the poor and downtrodden, selfih-development are some of the hall-marks of Indian beuracracy. See the case of pre-2002 bank retirees who are denied 100% DA neutralization forthe last 11 years eventhough all those who retired after get 100% DA. To add insult to injury, IBA has become an extended arm of the FINMEN. IBA wantonly delays decision making process in minor matters such as extending the yearly medical payment to the retirees including those retired prematurely.
Only courts can save democracy and principles of natural justice. Courts alone can punish the beuracrats who derelict their duty/shirk their responsibility/pass the bug thus rendering untold sufferings to the common people,especially the senior citizens.
.
.....................................................................................
General Public crying for action against officialdom where there is no justification and no one is answerable. The Honorable Supreme Court must wake up to fix responsibilities of the officials who always act in whimsical manner.
We have noted with appreciation the attitude of Hon'ble Justice Ranjit Singh of Punjab & Haryana Hingh Court who single handedly taking on the officials of Government of Punjab & Haryana who just file petitions to delay decision till a time beyond their own retirement to excape accountability and linger on the matter for years, even in those matter similar to those wherein High Court has already decided.
Hon'ble Supreme Court must dismiss such official/s from service without any recourse for these officials. ( Not Suspend as suspension from service is no meanful action against the erring staff)
Crying for action against the Dead Woods in Govt. Department. They have to take right decision in right earnst for which they draw heavy salary month after months from Govt. Exchequer.
I complaint to PMO/ DPG (goI) against the fraud played on me by Branch Manager of Oriental Bank of Commerce and one would amused to see the official response from Secretary (Financial Services) Govt. of India, headed by IAS of 1976 batch which uploaded in Govt of India Site as explanation from ICICII Bank and Secretary took no action for wilful wrong reporting and updation with reference to complaint No-DEABD/E/2010/00406.
We may pray fthat good sense may prevail upon these arrogant officials of Govt of India. I was shameful to the see the manner PMO works. Their subordinate deptt feed wrong information and it has no way to check the coorectness of the action.
......................................................................................
..............................................................
Just see & evaluate the attitude of the Administrator of Inidan Democracy, the way they works. Inspite of having utilised the amount of TDS for the whimsical planning, they have left with no money to refund & they need to borrow to finance refunds of Income Tax and holding the General Public waiting endlessly for their hard earned money refunded . It is like Rob Peter to pay Paul. Govt. collect 15 Years Tax on Vehicles Registration in advance to balance current budget, but they never bother to think a little as to what will happen in next 14 years.
He approved the Pension sent by IBA which is full of discrupencies.
1) Arbitarary date of implementation i.e. 27-11-2009.
2) some of Pensioners get @ 100% DA neutralisation and other retired before 2002 at different slabs.
3) They themselves get Pension Updation with every revision and they can not think a bit for others working in Banks.
Its is like Charity begins at home.
.........................................................................................
-
DEA has asked the Central Board of Direct Taxes (CBDT) to go slow on tax refunds in the coming months so that the government does not face any resource crunch.
CBDT has rejected Revenue Secretary Sunil Mitra’s contention by saying that taxpayer money can’t be withheld.
This has alarmed DEA, which is expected to be hard-pressed for funds given the possibility of slower economic growth and an increase in the subsidy bill.
The finance minister is believed to have asked the two to resolve the issue between themselves.
A senior CBDT official said once a refund was determined, especially in e-filing, no one could withhold it. “Can the government say that refunds will be delayed because it is under financial stress? Will the government allow an assessee to withhold tax because he is facing a financial problem?” asked the official.
DEA’s argument that a higher refund outgo will put pressure on the government to borrow more is rejected by experts and expenditure department officials. They say it’s a short-term trend and will not impact government finances over the year.
The government has said it will borrow Rs 2,50,000 crore between April and September, 60 per cent of the budgeted market borrowing of Rs 4,17,000 crore for 2011-12. So far, it has borrowed Rs 72,000 crore. While the finance ministry pays 6 per cent a year on late refunds, it has been borrowing from the market at 7.03-8.30 per cent.
The tax department refunded over Rs 23,000 crore in April. The figure is expected to cross Rs 1 lakh crore for the year. The department had refunded Rs 57,000 crore in 2009-10 and Rs 74,000 crore in 2010-11.
CBDT official say with a significant amount paid in the first month of the financial year, the burden for the coming months will be substantially lower. They say timely payments help save on interest.
The government’s net direct tax collection in April fell 70 per cent to Rs 4,000 crore, compared with Rs 14,000 crore in the same month last year. This was mainly on account of refunds totaling Rs 25,000 crore.
Gross direct tax collections were Rs 29,000 crore, 15 per cent more than in April last year.
....................................................................................
IAS officers are the real govrnment. Politicians may come and go; but the beaurocracy is of permanence in nature. Corruption,nepotism,delaying tactics,procrastination,not-to-see the poor and downtrodden, selfih-development are some of the hall-marks of Indian beuracracy. See the case of pre-2002 bank retirees who are denied 100% DA neutralization forthe last 11 years eventhough all those who retired after get 100% DA. To add insult to injury, IBA has become an extended arm of the FINMEN. IBA wantonly delays decision making process in minor matters such as extending the yearly medical payment to the retirees including those retired prematurely.
Only courts can save democracy and principles of natural justice. Courts alone can punish the beuracrats who derelict their duty/shirk their responsibility/pass the bug thus rendering untold sufferings to the common people,especially the senior
.....................................................................................
Saturday, December 10, 2011
Saturday, November 5, 2011
Encouraging Spiritual Poems
Where do I go from here?
Where does life start or end
When there are so many bends?
Can it be there is no beginning?
No ending or between?
Perhaps it is just becoming, existing and
The endlessness of being.
Look for where the brightest light shines
To show your path to you
One with all the signs
That point to a better view
Travel round the roadblocks
Whenever they appear and remember!
When life is clear
Spirit is near so trust and progress
And let go of fear.
Julie Stuart October'95
Even on the darkest night,
the stars shine bright.
Somewhere,
there is a ray of light.
We don't have to See,
to believe
But we do need to Ask
to receive
Julie Stuart, A New Dawn, Encouraging Spiritual Words,
This moment can be
A New Dawn,
A New Day....
Forgive,
Forget,
and move on
Ask your self;
Do I wish to keep repeating the pattern?
Perhaps it's time for something NEW
Julie Stuart,A New Dawn, Encouraging Spiritual Words,
For just a few seconds
Allow your self to experience
the Feeling of complete and utter freedom
Just the divine stillness of a peacful mind at rest
Ahhh...Now that IS Bliss
Julie Stuart
A New Dawn/Encouraging Spiritual Words
encouraging poems Now for a selection of Marlene's inspiring words......As long as she can remember Marlene has had a communication with her angels as did her mother and grandmother. This communication often comes in the form of automatic writing....as verse, messages from spirit.When Marlene first saw Julie's collection of 30 artworks of the Soul Dimensions she found herself asking if she could put the words to this body of work and soon the beautiful encouraging words for Soul Dimensions Guidance were here for all to enjoy.
Today is all there is
Live to the best of your ability
Love
Forgive
Be Patient
Smile
It’s easy!
Why make it difficult.
Marlene Rose
Soul Dimensions
Encouraging Spiritual Wisdom
Clarity comes from
Inner Vision
It is your inner knowing
Looking at Truth
Listen to the voice
of your heart
What is it saying
Focus on the
Incredible Creation
You are
A temple
Holding a spark of divinity
Marlene Rose Soul Dimensions
Encouraging Spiritual Wisdom
I AM SAFE
Life force flows through me....
and resides in me.
I hold the spark of Eternity within me.....
When I open my mind to this possibility..
All is well in my world.
I align with Universal Truth and Harmony
As I choose to love,
I am loved tenfold.
As I choose to see Light,
my eyes are opened even further.
I AM SAFE
Marlene Rose
The 23rd Psalm/Encouraging Spiritual Words
Yes you are deeply and truly loved
Yes you are extremely valuable
Yes you are Forgiven
Yes Beloved
IT IS TRUTH
IT IS SIMPLICITY
Marlene Rose
Soul Dimensions/Encouraging Spiritual Words
Be alive in every moment
Delight in small things…
A raindrop, a shell
BLISS
Be in awe of grand things……
The sky, the sea, a symphony, a smile, love.
Be conscious in your enjoyment.
Marlene Rose
Soul Dimensions
Words of Spiritual Wisdom
So why not start TODAY to-
Choose Happiness
Choose Life
Choose to be Embraced
Choose to Know who you really are
Choose to Let go
Choose to
SMILE
Stop carrying the past
See how light you feel
Choose to Walk on
Without your Burden
Get used to
FEELING FREE
Don't regret the changes
Marlene Rose Soul Dimensions
Encouraging Spiritual Wisdom
Serenity Prayer
God, grant me the serenity to accept the things I cannot change,
courage to change the things I can,
and the wisdom to know the difference.
Living one day at a time; accepting hardship as the pathway to peace.
That I may be reasonably happy in this life,
and supremely happy with Him forever in the next.
Amen
Reinhold Niebuhr
spiritual healing poems
May today there be peace within.
May you trust God that you are exactly where you are meant to be.
May you not forget the infinite possibilities that are born of faith.
May you use those gifts that you have received and pass on the love that has been given to you....
May you be content knowing you are a child of God.
Let this presence settle into your bones and allow your soul the freedom to sing, dance, praise and love.
Amen. Prayer of St Theresa 'the little flower'
Saint Theresa the Saint of the Little Ways. Meaning she believed in doing the little things in life well and with great love.
encouraging verse
This above all: to thine own self be true,
And it must follow, as the night the day,
Thou canst not then be false to any man.
William Shakespeare
Prayer of ST.Francis
Lord, make me an instrument of your peace;
where there is hatred, let me sow love;
where there is injury, pardon;
where there is doubt, faith;
where there is despair, hope;
where there is darkness, light;
and where there is sadness, joy.
O Divine Master,
grant that I may not so much seek to be consoled as to console
to be understood, as to understand;
to be loved, as to love;
for it is in giving that we receive,
it is in pardoning that we are pardoned,
and it is in dying that we are born to Eternal Life.
Amen. Anon. Prayer of ST. Francis [traced back to 1912]
inspired verse
Don’t Quit
When things go wrong
As they sometimes will,
When the road you’re
Trudging seems all uphill,
When the funds are low,
And the debts are high,
and you want to smile,
But you have to sigh,
When care is pressing
you down a bit-
Rest if you must,
but don’t you quit,
Success is failure
Turned inside out,
The silver tint of
the clouds of doubt;
And you never can tell
how close you are,
It may be near
when it seems afar.
So stick to the fight
When you’re hardest hit-
It’s when things go wrong
That you mustn’t quit.
Author Unknown
There is beauty in the forest
When the trees are green and fair,
There is beauty in the meadow
When wild flowers scent the air,
There is beauty in the sunlight
And the soft blue beams above.
Oh, the world is full of beauty
When the heart is full of love.
Unknown Author
inspired and encouraging words
May you always have enough happiness to keep you sweet,
Enough trials to keep you strong,
Enough success to keep you eager,
Enough faith to give you courage,
And enough determination to make each day a good day.
Anonymous
One Who Loves
I believe in a big God–
One who loves
the liar,
the murderer,
the cheat.
You say this is
the road to anarchy.
But it’s only in the arms of
such a God
we find
our sanity,
our unity,
our peace.
It’s OK to believe in a God who is loving enough to love you whatever you have done.
“For as high as the heavens are above the earth,
so great is his love for those who fear him;
as far as the east is from the west,
so far has he removed our transgressions from us.” (Psalm 103, NIV, The Bible)
© Katherine T Owen, 2011. Published here with her permission.
Other spiritual poems from Katherine T Owen
For an explanation of the release – It’s OK to...
butterfly spiritual poem
If you have enjoyed these encouraging spiritual poems and words of wisdom you may enjoy the following pages of spiritual inspiration.
Where do I go from here?
Where does life start or end
When there are so many bends?
Can it be there is no beginning?
No ending or between?
Perhaps it is just becoming, existing and
The endlessness of being.
Look for where the brightest light shines
To show your path to you
One with all the signs
That point to a better view
Travel round the roadblocks
Whenever they appear and remember!
When life is clear
Spirit is near so trust and progress
And let go of fear.
Julie Stuart October'95
Even on the darkest night,
the stars shine bright.
Somewhere,
there is a ray of light.
We don't have to See,
to believe
But we do need to Ask
to receive
Julie Stuart, A New Dawn, Encouraging Spiritual Words,
This moment can be
A New Dawn,
A New Day....
Forgive,
Forget,
and move on
Ask your self;
Do I wish to keep repeating the pattern?
Perhaps it's time for something NEW
Julie Stuart,A New Dawn, Encouraging Spiritual Words,
For just a few seconds
Allow your self to experience
the Feeling of complete and utter freedom
Just the divine stillness of a peacful mind at rest
Ahhh...Now that IS Bliss
Julie Stuart
A New Dawn/Encouraging Spiritual Words
encouraging poems Now for a selection of Marlene's inspiring words......As long as she can remember Marlene has had a communication with her angels as did her mother and grandmother. This communication often comes in the form of automatic writing....as verse, messages from spirit.When Marlene first saw Julie's collection of 30 artworks of the Soul Dimensions she found herself asking if she could put the words to this body of work and soon the beautiful encouraging words for Soul Dimensions Guidance were here for all to enjoy.
Today is all there is
Live to the best of your ability
Love
Forgive
Be Patient
Smile
It’s easy!
Why make it difficult.
Marlene Rose
Soul Dimensions
Encouraging Spiritual Wisdom
Clarity comes from
Inner Vision
It is your inner knowing
Looking at Truth
Listen to the voice
of your heart
What is it saying
Focus on the
Incredible Creation
You are
A temple
Holding a spark of divinity
Marlene Rose Soul Dimensions
Encouraging Spiritual Wisdom
I AM SAFE
Life force flows through me....
and resides in me.
I hold the spark of Eternity within me.....
When I open my mind to this possibility..
All is well in my world.
I align with Universal Truth and Harmony
As I choose to love,
I am loved tenfold.
As I choose to see Light,
my eyes are opened even further.
I AM SAFE
Marlene Rose
The 23rd Psalm/Encouraging Spiritual Words
Yes you are deeply and truly loved
Yes you are extremely valuable
Yes you are Forgiven
Yes Beloved
IT IS TRUTH
IT IS SIMPLICITY
Marlene Rose
Soul Dimensions/Encouraging Spiritual Words
Be alive in every moment
Delight in small things…
A raindrop, a shell
BLISS
Be in awe of grand things……
The sky, the sea, a symphony, a smile, love.
Be conscious in your enjoyment.
Marlene Rose
Soul Dimensions
Words of Spiritual Wisdom
So why not start TODAY to-
Choose Happiness
Choose Life
Choose to be Embraced
Choose to Know who you really are
Choose to Let go
Choose to
SMILE
Stop carrying the past
See how light you feel
Choose to Walk on
Without your Burden
Get used to
FEELING FREE
Don't regret the changes
Marlene Rose Soul Dimensions
Encouraging Spiritual Wisdom
Serenity Prayer
God, grant me the serenity to accept the things I cannot change,
courage to change the things I can,
and the wisdom to know the difference.
Living one day at a time; accepting hardship as the pathway to peace.
That I may be reasonably happy in this life,
and supremely happy with Him forever in the next.
Amen
Reinhold Niebuhr
spiritual healing poems
May today there be peace within.
May you trust God that you are exactly where you are meant to be.
May you not forget the infinite possibilities that are born of faith.
May you use those gifts that you have received and pass on the love that has been given to you....
May you be content knowing you are a child of God.
Let this presence settle into your bones and allow your soul the freedom to sing, dance, praise and love.
Amen. Prayer of St Theresa 'the little flower'
Saint Theresa the Saint of the Little Ways. Meaning she believed in doing the little things in life well and with great love.
encouraging verse
This above all: to thine own self be true,
And it must follow, as the night the day,
Thou canst not then be false to any man.
William Shakespeare
Prayer of ST.Francis
Lord, make me an instrument of your peace;
where there is hatred, let me sow love;
where there is injury, pardon;
where there is doubt, faith;
where there is despair, hope;
where there is darkness, light;
and where there is sadness, joy.
O Divine Master,
grant that I may not so much seek to be consoled as to console
to be understood, as to understand;
to be loved, as to love;
for it is in giving that we receive,
it is in pardoning that we are pardoned,
and it is in dying that we are born to Eternal Life.
Amen. Anon. Prayer of ST. Francis [traced back to 1912]
inspired verse
Don’t Quit
When things go wrong
As they sometimes will,
When the road you’re
Trudging seems all uphill,
When the funds are low,
And the debts are high,
and you want to smile,
But you have to sigh,
When care is pressing
you down a bit-
Rest if you must,
but don’t you quit,
Success is failure
Turned inside out,
The silver tint of
the clouds of doubt;
And you never can tell
how close you are,
It may be near
when it seems afar.
So stick to the fight
When you’re hardest hit-
It’s when things go wrong
That you mustn’t quit.
Author Unknown
There is beauty in the forest
When the trees are green and fair,
There is beauty in the meadow
When wild flowers scent the air,
There is beauty in the sunlight
And the soft blue beams above.
Oh, the world is full of beauty
When the heart is full of love.
Unknown Author
inspired and encouraging words
May you always have enough happiness to keep you sweet,
Enough trials to keep you strong,
Enough success to keep you eager,
Enough faith to give you courage,
And enough determination to make each day a good day.
Anonymous
One Who Loves
I believe in a big God–
One who loves
the liar,
the murderer,
the cheat.
You say this is
the road to anarchy.
But it’s only in the arms of
such a God
we find
our sanity,
our unity,
our peace.
It’s OK to believe in a God who is loving enough to love you whatever you have done.
“For as high as the heavens are above the earth,
so great is his love for those who fear him;
as far as the east is from the west,
so far has he removed our transgressions from us.” (Psalm 103, NIV, The Bible)
© Katherine T Owen, 2011. Published here with her permission.
Other spiritual poems from Katherine T Owen
For an explanation of the release – It’s OK to...
butterfly spiritual poem
If you have enjoyed these encouraging spiritual poems and words of wisdom you may enjoy the following pages of spiritual inspiration.
Thursday, November 3, 2011
Are Negative Emotions More Important than Positive Emotions?
In the Name of Love
A Philosopher Looks at Our Deepest Emotions
by Aaron Ben-Zeév
Are Negative Emotions More Important than Positive Emotions?
The average person considers herself happier than the average person.
Published on July 18, 2010 by Aaron Ben-Zeév, Ph.D. in In the Name of Love
"There can be no rainbow without a cloud and a storm." John H. Vincent
In order to explain and understand emotions, we can divide them into two groups: The emotions we term 'positive' and those that we term 'negative'. On this issue, there are two major claims that appear to be contradictory: (a) that negative emotions are more noticeable, and (b) that, because people typically consider themselves to be happy, the average person considers herself to be happier than the average person. How can this apparent paradox explained?
Before examining these claims, let me clarify that in speaking about positive and negative emotions, I refer to their psychological, rather than moral nature.
From a psychological viewpoint, a positive emotion is one that involves a positive evaluation of the object, a positive type of motivation, and an agreeable feeling. From a moral viewpoint, a positive, or rather good, emotion is one that is positively evaluated in the light of moral values. The two perspectives may conflict: for example, pleasure-in-others'-misfortune is a positive emotion from a psychological viewpoint, but negative from a moral one; compassion is a negative emotion from a psychological viewpoint, but positive from a moral one. Love is positive from both perspectives.
Related Articles
(a) Negative emotions are more noticeable. Although for every negative emotion we may find a corresponding positive emotion, negative emotions are more differentiated than positive emotions. Thus, there are considerably more ways to describe negative emotional experiences than there are for positive ones. Interestingly, even though English contains more words with positive than negative connotations, the reverse is true of words describing the emotions. Indeed, we do not have satisfactory terms for all our positive emotions. In fact, people ruminate about events that induce strong negative emotions five times as long as they do about events that induce strong positive ones. Hence, it is no wonder that people tend to recall negative experiences more readily than positive ones. The love-hate pair seems to be an exception: love is more common and noticeable than hate, and there are indeed more types of love than of hate. There is little doubt then that love is both more noticeable and powerful in our everyday life.
A major reason for the more noticeable role of negative emotions is that they possess greater functional value. The risks of responding inappropriately to negative events are greater than the risks of responding inappropriately to positive events, since negative events can kill us while positive events will merely enhance our well-being.
Moreover, a greater variety of response options is needed to cope with potential harm than is needed to "cope" with potential good. In a sense, one does not need to "cope" with good fortune. Moreover, there are more ways in which a situation can be unpleasant than pleasant, and there are more ways to ruin something than to build it. Further, an individual who is governed by the seeking of pleasure more than by the avoidance of pain would not survive. Another relevant consideration in this regard is that negative emotions are often experienced when a goal is blocked; this requires the construction of new plans to attain the blocked goal or the formation of a new goal to compensate for the blocked one. In contrast, positive emotions are usually experienced when a goal is achieved. Accordingly, negative emotions require more cognitive resources to be allocated for dealing with the given situation.
These considerations are compatible with the findings that people who are depressed are more realistic than those who are optimistic, and those who are perceptive are more likely to be pessimistic and depressed because they have a more accurate picture of life and its troubles. Nevertheless, most people appreciate optimism more than pessimism. In Shakespeare's Love's Labour's Lost, the Princess of France says: "A heavy heart bears not a humble tongue." In light of the above claims, we could add to that: "A heavy heart bears not a deceptive eye."
(b) People typically consider themselves to be happy. The majority of people see themselves as above-average as far as most of their qualities are concerned and they rate their happiness as more than one-third above the middle of the scale. This means that our baseline is above average in the positive realm. A major advantage of such a rating is that it has motivational value, which is important in coping with our surroundings and which produces a strong immune response to infections. While sad and pessimistic people can better perceive and understand their environment, happy and optimistic people can better cope with their environment.
The above two claims are not necessarily incompatible] -being happy could allow threatening negative events to be noticed quicker.
In accordance with the above considerations, Nico Frijda has suggested what he calls "The Law of Hedonic Asymmetry," which states that pleasure is always contingent on change and disappears with continuous satisfaction, whereas pain may persist under persisting adverse conditions. Frijda further explains that emotions exist in order to signal situations in the world that require a response. Since in his view positive circumstances do not need a specific response, the emotional signaling system can be switched off.
The more noticeable nature of negative emotions does not imply that their impact on our life is greater. This issue is connected to our general view of human beings, and there are conflicting views on this matter. Thus, Spinoza argues: "A desire that arises from joy is stronger, other things being equal, than one that arises from sadness." Spinoza connects this contention to his assumption that the very essence of a person is a striving to persevere in his being. Similarly, while Adam Ferguson claims that "pain, by its intenseness, its duration, or frequency, is greatly predominant", he thinks that "love and compassion are the most powerful principles in the human breast." Ferguson believes that positive emotions are more compatible with our basic positive disposition toward others. Descartes' view is different: "Sadness is in some way primary and more necessary than joy, and hatred more necessary than love."
While an empirical investigation might determine whether negative emotions are more noticeable, it is more difficult to verify empirically which type of emotion has a greater impact on our life. However, in this issue I tend to agree with Spinoza and Ferguson.
To sum up, negative emotions are more noticeable than positive ones since attending to negative events is more important for our survival than attending to positive events. This does not necessarily imply that negative emotions have a more important role in our lives. The emotions that are more frequent and obvious are not always the more significant. In any case, love, in all its forms, seems to be one of the most significant and powerful emotion in our lives.
The above considerations can be encapsulated in the following statement that a lover might express: "Darling, although you are so good at detecting all my negative traits, from time to time please try to put on the rose -colored glasses through which some of my positive traits will be more easily discerned."
A Philosopher Looks at Our Deepest Emotions
by Aaron Ben-Zeév
Are Negative Emotions More Important than Positive Emotions?
The average person considers herself happier than the average person.
Published on July 18, 2010 by Aaron Ben-Zeév, Ph.D. in In the Name of Love
"There can be no rainbow without a cloud and a storm." John H. Vincent
In order to explain and understand emotions, we can divide them into two groups: The emotions we term 'positive' and those that we term 'negative'. On this issue, there are two major claims that appear to be contradictory: (a) that negative emotions are more noticeable, and (b) that, because people typically consider themselves to be happy, the average person considers herself to be happier than the average person. How can this apparent paradox explained?
Before examining these claims, let me clarify that in speaking about positive and negative emotions, I refer to their psychological, rather than moral nature.
From a psychological viewpoint, a positive emotion is one that involves a positive evaluation of the object, a positive type of motivation, and an agreeable feeling. From a moral viewpoint, a positive, or rather good, emotion is one that is positively evaluated in the light of moral values. The two perspectives may conflict: for example, pleasure-in-others'-misfortune is a positive emotion from a psychological viewpoint, but negative from a moral one; compassion is a negative emotion from a psychological viewpoint, but positive from a moral one. Love is positive from both perspectives.
Related Articles
(a) Negative emotions are more noticeable. Although for every negative emotion we may find a corresponding positive emotion, negative emotions are more differentiated than positive emotions. Thus, there are considerably more ways to describe negative emotional experiences than there are for positive ones. Interestingly, even though English contains more words with positive than negative connotations, the reverse is true of words describing the emotions. Indeed, we do not have satisfactory terms for all our positive emotions. In fact, people ruminate about events that induce strong negative emotions five times as long as they do about events that induce strong positive ones. Hence, it is no wonder that people tend to recall negative experiences more readily than positive ones. The love-hate pair seems to be an exception: love is more common and noticeable than hate, and there are indeed more types of love than of hate. There is little doubt then that love is both more noticeable and powerful in our everyday life.
A major reason for the more noticeable role of negative emotions is that they possess greater functional value. The risks of responding inappropriately to negative events are greater than the risks of responding inappropriately to positive events, since negative events can kill us while positive events will merely enhance our well-being.
Moreover, a greater variety of response options is needed to cope with potential harm than is needed to "cope" with potential good. In a sense, one does not need to "cope" with good fortune. Moreover, there are more ways in which a situation can be unpleasant than pleasant, and there are more ways to ruin something than to build it. Further, an individual who is governed by the seeking of pleasure more than by the avoidance of pain would not survive. Another relevant consideration in this regard is that negative emotions are often experienced when a goal is blocked; this requires the construction of new plans to attain the blocked goal or the formation of a new goal to compensate for the blocked one. In contrast, positive emotions are usually experienced when a goal is achieved. Accordingly, negative emotions require more cognitive resources to be allocated for dealing with the given situation.
These considerations are compatible with the findings that people who are depressed are more realistic than those who are optimistic, and those who are perceptive are more likely to be pessimistic and depressed because they have a more accurate picture of life and its troubles. Nevertheless, most people appreciate optimism more than pessimism. In Shakespeare's Love's Labour's Lost, the Princess of France says: "A heavy heart bears not a humble tongue." In light of the above claims, we could add to that: "A heavy heart bears not a deceptive eye."
(b) People typically consider themselves to be happy. The majority of people see themselves as above-average as far as most of their qualities are concerned and they rate their happiness as more than one-third above the middle of the scale. This means that our baseline is above average in the positive realm. A major advantage of such a rating is that it has motivational value, which is important in coping with our surroundings and which produces a strong immune response to infections. While sad and pessimistic people can better perceive and understand their environment, happy and optimistic people can better cope with their environment.
The above two claims are not necessarily incompatible] -being happy could allow threatening negative events to be noticed quicker.
In accordance with the above considerations, Nico Frijda has suggested what he calls "The Law of Hedonic Asymmetry," which states that pleasure is always contingent on change and disappears with continuous satisfaction, whereas pain may persist under persisting adverse conditions. Frijda further explains that emotions exist in order to signal situations in the world that require a response. Since in his view positive circumstances do not need a specific response, the emotional signaling system can be switched off.
The more noticeable nature of negative emotions does not imply that their impact on our life is greater. This issue is connected to our general view of human beings, and there are conflicting views on this matter. Thus, Spinoza argues: "A desire that arises from joy is stronger, other things being equal, than one that arises from sadness." Spinoza connects this contention to his assumption that the very essence of a person is a striving to persevere in his being. Similarly, while Adam Ferguson claims that "pain, by its intenseness, its duration, or frequency, is greatly predominant", he thinks that "love and compassion are the most powerful principles in the human breast." Ferguson believes that positive emotions are more compatible with our basic positive disposition toward others. Descartes' view is different: "Sadness is in some way primary and more necessary than joy, and hatred more necessary than love."
While an empirical investigation might determine whether negative emotions are more noticeable, it is more difficult to verify empirically which type of emotion has a greater impact on our life. However, in this issue I tend to agree with Spinoza and Ferguson.
To sum up, negative emotions are more noticeable than positive ones since attending to negative events is more important for our survival than attending to positive events. This does not necessarily imply that negative emotions have a more important role in our lives. The emotions that are more frequent and obvious are not always the more significant. In any case, love, in all its forms, seems to be one of the most significant and powerful emotion in our lives.
The above considerations can be encapsulated in the following statement that a lover might express: "Darling, although you are so good at detecting all my negative traits, from time to time please try to put on the rose -colored glasses through which some of my positive traits will be more easily discerned."
Wednesday, November 2, 2011
Why Men Want Sex and Women Want Love
Why Men Want Sex and Women Want Love
Sex and LoveMen are frustrated with women because they never want sex.
Women are frustrated with men because they always want sex.
Women blame men they don’t know how to love.
Men blame women that they only talk about love but don’t want to make it.
Whether you are a man or a woman, reading this article can change your life - finally, you will be able to get rid of your frustrations about the opposite gender.
The reason humans want sex is due to the hormone testosterone, which is predominantly male hormone. A normal male’s body produces 20 times more of this hormone than a female’s.
In other words, a male feels the same way after one day without sex as a female after 20 days without sex. A male that has not had sex in 20 days feels the same way as a female after more than a year without sex.
Knowing this simple difference, you can already understand the pain of the opposite gender. It’s NOT their fault: they are made this way! It’s in our genes! This is the reason why men are men and women are women.
Men and women are DIFFERENT.
Not better or worse, just different.
A man can father a child every time he has sex, and a woman can only mother a child every two years or so. This means, a woman HAS TO be picky about who she allows to have sex with her.
For generations women were paying too high a price for making a wrong choice. Women that have chosen men with bad genes had a weaker offspring and their children struggled to survive. Women that have chosen men with good genes had a stronger offspring and their children survived disproportionally. Those children were carrying their picky mother’s genes and this is why those female genes were passed to us.
On the other hand, men never had adverse consequences of making a wrong choice. The more children they produced, the higher was their chance to pass their genes to future generations, as some of them would certainly survive. While men were determined to seek better genes too, they had to grab all chances to procreate coming their way to ensure their genes would be passed forward. The men that ONLY stuck with one woman (even a high quality woman) were losing genetically to the men that used all of their opportunities and had many more children that survived. Those children were carrying their father’s promiscuous genes, and this is why those male genes were passed to us.
By Nature men are made to seek as much sex as they can get, so they can spread their seed wider.
By Nature women are made to seek as many admirers as they can get, so they can make a better choice and get the best seed.
Men seek quantity - women seek quality.
This is why men seek sex and women seek love.
Love is the proof that a woman needs to have some assurance that the man will stick around and help her with the upbringing of the offspring. For a woman, sex is the culmination of her emotional commitment to a man.
For a man, sex is a physical act that eases the testosterone pressure he experiences constantly. Only after this tension has gone, can a man feel love towards a woman. This is why it often happens that men disappear after they got what they wanted: it wasn’t love; it was the testosterone pressure. Sex for men is the reality check of their passion.
This is why having sex early in the relationship is hazardous for women: the man has not had the time to develop any romantic feelings for her. He needs time to develop those feelings, and the only way to do it is through keeping the sexual tension going for as long as practicable. Sex must be attainable, nearly possible - but not quite. When the sexual tension is at its peak, its release is mind-blowing - and once is never enough, which lays a proper foundation for a future relationship – and love.
Men fall in love through sex; women fall in sex through love.
All of this happens on the unconscious level - we do NOT realize what’s going on.
But the reason why you are here today and alive is because each and every of your ancestors, men and women, acted true to their instincts and managed to attract at least one sexual partner and produce an offspring.
So, there is no need to be bitter about men wanting sex and women wanting love. Those two are the necessary pieces of the puzzle called Survival Of The Species.
And you’ll be better off understanding what the other gender is going through and giving them exactly what they want: a mind-blowing sex or exhilarating love.
Go get ‘em! :-)
By Elena Solomon, www.soulmades.com.au
Sex and LoveMen are frustrated with women because they never want sex.
Women are frustrated with men because they always want sex.
Women blame men they don’t know how to love.
Men blame women that they only talk about love but don’t want to make it.
Whether you are a man or a woman, reading this article can change your life - finally, you will be able to get rid of your frustrations about the opposite gender.
The reason humans want sex is due to the hormone testosterone, which is predominantly male hormone. A normal male’s body produces 20 times more of this hormone than a female’s.
In other words, a male feels the same way after one day without sex as a female after 20 days without sex. A male that has not had sex in 20 days feels the same way as a female after more than a year without sex.
Knowing this simple difference, you can already understand the pain of the opposite gender. It’s NOT their fault: they are made this way! It’s in our genes! This is the reason why men are men and women are women.
Men and women are DIFFERENT.
Not better or worse, just different.
A man can father a child every time he has sex, and a woman can only mother a child every two years or so. This means, a woman HAS TO be picky about who she allows to have sex with her.
For generations women were paying too high a price for making a wrong choice. Women that have chosen men with bad genes had a weaker offspring and their children struggled to survive. Women that have chosen men with good genes had a stronger offspring and their children survived disproportionally. Those children were carrying their picky mother’s genes and this is why those female genes were passed to us.
On the other hand, men never had adverse consequences of making a wrong choice. The more children they produced, the higher was their chance to pass their genes to future generations, as some of them would certainly survive. While men were determined to seek better genes too, they had to grab all chances to procreate coming their way to ensure their genes would be passed forward. The men that ONLY stuck with one woman (even a high quality woman) were losing genetically to the men that used all of their opportunities and had many more children that survived. Those children were carrying their father’s promiscuous genes, and this is why those male genes were passed to us.
By Nature men are made to seek as much sex as they can get, so they can spread their seed wider.
By Nature women are made to seek as many admirers as they can get, so they can make a better choice and get the best seed.
Men seek quantity - women seek quality.
This is why men seek sex and women seek love.
Love is the proof that a woman needs to have some assurance that the man will stick around and help her with the upbringing of the offspring. For a woman, sex is the culmination of her emotional commitment to a man.
For a man, sex is a physical act that eases the testosterone pressure he experiences constantly. Only after this tension has gone, can a man feel love towards a woman. This is why it often happens that men disappear after they got what they wanted: it wasn’t love; it was the testosterone pressure. Sex for men is the reality check of their passion.
This is why having sex early in the relationship is hazardous for women: the man has not had the time to develop any romantic feelings for her. He needs time to develop those feelings, and the only way to do it is through keeping the sexual tension going for as long as practicable. Sex must be attainable, nearly possible - but not quite. When the sexual tension is at its peak, its release is mind-blowing - and once is never enough, which lays a proper foundation for a future relationship – and love.
Men fall in love through sex; women fall in sex through love.
All of this happens on the unconscious level - we do NOT realize what’s going on.
But the reason why you are here today and alive is because each and every of your ancestors, men and women, acted true to their instincts and managed to attract at least one sexual partner and produce an offspring.
So, there is no need to be bitter about men wanting sex and women wanting love. Those two are the necessary pieces of the puzzle called Survival Of The Species.
And you’ll be better off understanding what the other gender is going through and giving them exactly what they want: a mind-blowing sex or exhilarating love.
Go get ‘em! :-)
By Elena Solomon, www.soulmades.com.au
Saturday, October 29, 2011
Govt mulls PSU fund for retired workers’ medical scheme Praveen Kumar Singh
Govt mulls PSU fund for retired workers’ medical scheme
Praveen Kumar Singh
Posted: Wednesday, Jul 15, 2009 at 2308 hrs IST
Tags: Retired Employees | Medical Scheme
Comments Email print Financial Express Facebook Twitter
more
New Delhi: Retired employees of all profitable central public sector enterprises (CPSEs) may soon start receiving medical benefits from their ex-employers, if the government’s suggestion to this effect is implemented. The department of public enterprises (DPE) has asked the CPSEs to create a fund out of their profit before tax to meet the medical and other emergency needs of their retired workmen.
The CPSEs are required to contribute upto 1.5% of their profit before tax (PBT) to the corpus every year. However, they can identify the medical and other emergency needs for which the facility can be utilised. The CPSEs will not get any budgetary support from the government for providing the benefits. “The scheme may be set up where there is a need felt for such a scheme for retired employees of a CPSE. A Committee of Directors may be constituted by each CPSE for disbursement of fund to the retired employees. The committee may also identify the areas of medical and any other emergency needs,” the department said in the memorandum dated July 8, 2009, copies of which were also marked to the administrative ministries.
The memorandum stated, “In the introductory year of operation of the scheme, not more than 1.5% of previous year’s PBT will be permissible for funding of the scheme. In subsequent years, contribution to the corpus will be made depending upon the need. However, in no case the contribution to the corpus will exceed 1.5% of the PBT of the previous year”.
Reacting on the suggestion, the Standing Conference of Public Enterprises (SCOPE) said the move is positive in principle and will benefit the retired employees. “This is a positive move, as retired employees, who age at least 60 years, do need money to take care of their medical needs. However, given that it is still voluntary in nature, the extent of its implementation is a matter of concern,” SCOPE chairman Arup Roy Choudhury told FE.
Last year, the DPE had requested all the government ministries to communicate whether such a scheme is feasible and suggest the suitable methodology for its implementation. The call was given at the behest of the Second Pay Revision Committee, which had also recommended upto 300% hike in the pay package of CPSEs’ officers.
However, the ministries remained indifferent. Peeved over this, the department on its own issued the memorandum to all the CPSEs. “It is found that it would not be feasible to have a common/unified scheme for all the CPSEs. However, at the same time, a need is felt to have a scheme for the retired employees of a CPSE so that they can avail medical ad other emergency benefits. In such a situation, it would be better if the decision to create or otherwise a corpus to implement the recommendation is left to individual CPSEs,” the DPE said.
Multi Page Format
Praveen Kumar Singh
Posted: Wednesday, Jul 15, 2009 at 2308 hrs IST
Tags: Retired Employees | Medical Scheme
Comments Email print Financial Express Facebook Twitter
more
New Delhi: Retired employees of all profitable central public sector enterprises (CPSEs) may soon start receiving medical benefits from their ex-employers, if the government’s suggestion to this effect is implemented. The department of public enterprises (DPE) has asked the CPSEs to create a fund out of their profit before tax to meet the medical and other emergency needs of their retired workmen.
The CPSEs are required to contribute upto 1.5% of their profit before tax (PBT) to the corpus every year. However, they can identify the medical and other emergency needs for which the facility can be utilised. The CPSEs will not get any budgetary support from the government for providing the benefits. “The scheme may be set up where there is a need felt for such a scheme for retired employees of a CPSE. A Committee of Directors may be constituted by each CPSE for disbursement of fund to the retired employees. The committee may also identify the areas of medical and any other emergency needs,” the department said in the memorandum dated July 8, 2009, copies of which were also marked to the administrative ministries.
The memorandum stated, “In the introductory year of operation of the scheme, not more than 1.5% of previous year’s PBT will be permissible for funding of the scheme. In subsequent years, contribution to the corpus will be made depending upon the need. However, in no case the contribution to the corpus will exceed 1.5% of the PBT of the previous year”.
Reacting on the suggestion, the Standing Conference of Public Enterprises (SCOPE) said the move is positive in principle and will benefit the retired employees. “This is a positive move, as retired employees, who age at least 60 years, do need money to take care of their medical needs. However, given that it is still voluntary in nature, the extent of its implementation is a matter of concern,” SCOPE chairman Arup Roy Choudhury told FE.
Last year, the DPE had requested all the government ministries to communicate whether such a scheme is feasible and suggest the suitable methodology for its implementation. The call was given at the behest of the Second Pay Revision Committee, which had also recommended upto 300% hike in the pay package of CPSEs’ officers.
However, the ministries remained indifferent. Peeved over this, the department on its own issued the memorandum to all the CPSEs. “It is found that it would not be feasible to have a common/unified scheme for all the CPSEs. However, at the same time, a need is felt to have a scheme for the retired employees of a CPSE so that they can avail medical ad other emergency benefits. In such a situation, it would be better if the decision to create or otherwise a corpus to implement the recommendation is left to individual CPSEs,” the DPE said.
Multi Page Format
CPSEs Corpus out of 1.5% PBT - letter dated 24.811 of National Confederatonation of Officers' Associaton (NCOA)
LETTER TO DPE
Posted on 17-Sep-2011
Queen City To
Sh. Ashok Kumar Pavadia
Jt. Secretary, DPE
24/08.2011
Respected Sir,
We met our Secretary DPE on 17/11/2009 and had a discussion on certain pending issues regarding pay revision. Further to this we would like to bring to your kind notice the following points with respect to the Pay revision of executives in Central Public Sector Enterprises effective from January 2007. These issues need your kind attention, as they are pending for a long time and are demoralizing the executives.
1. Periodicity:
The Office Memorandums issued by DPE regarding the Pay revision of executives in CPSEs have not mentioned about the periodicity. With the result the CPSEs at the time of pay revision effective from January 2007 have not mentioned about periodicity. Historically the Pay in CPSEs is revised once in 5 years except in 1997. In the case of workmen, for the pay revision due from 2007, the guidelines issued by DPE have given the option for the periodicity of 5 to 10 years. In the present context of free market economy, the salaries of executives in CPSEs have to be aligned to the market conditions as regularly as feasible to ensure that proper competent manpower is attracted and retained in the CPSEs, so that they can effectively compete with the Private Sector and Multi-National Enterprises. It may kindly be noted that the Pay revision for executives in Private Sector is carried out on a yearly basis. Also the pay revision for executives and workmen in an Enterprise has to be simultaneous to ensure that there are no serious anomalies (In the case of HMT, all the workmen draw Pay which is higher than the pay of even the General Manager). Keeping this in mind the pay revision for executives shall be carried out after 5 years in January 2012. In the long run the periodicity of Pay revision for employees in CPSEs shall be three years to align them with the market realities.
2. Revision of Pay scales for sick and marginally profit making companies: The 2nd Pay revision committee had recommended that Sick Enterprises that are making cash profits may be allowed to implement the pay revision without Risk Pay or Variable Pay. This recommendation of the committee has not been implemented so far. We request that the government should implement this recommendation and the revised pay scales should be implemented with effect from 1st January 2007 for the marginally profit making and sick CPSEs with 30% fitment benefit. The variable pay and revision of Perks & Allowances can be differed.
The 2nd Pay revision committee had also recommended that CPSEs that are not making cash profits should be examined by BRPSE in a period of 6 months for revival or enclosure. Enterprises that are recommended for revival should include the proposal for revised pay scales. If Enterprises are recommended for closure, the executives should be compulsorily retired by paying compensation based on the revised basic pay. We request that this recommendation of the committee should be implemented immediately. If the government delays a decision further, it may result in key executives leaving the Enterprise and it will become difficult for the government to revive these Enterprises subsequently.
3. Additional increments granted prior to 1st January 2007:
A few CPSEs especially under the Ministry of Defence Production have granted extraordinary additional increments to their executives prior to January 2007 as they are not able attract the best talent. These Enterprises are working in high tech-areas and were finding it very difficult to run the Enterprises as they are not able to attract the technically competent engineers in view of meager salaries when compared to the Private Sector and other CPSE Units like NTPC, NHPC, PGCIL, REC, ONGC, IOC, HPCL, BPCL, GAIL, NMDC, NALCO, BHEL, SAIL, CIL, etc.
The Boards of these CPSEs have granted additional increments prior to 1st January 2007 in these Enterprises to ensure that the Executives / Supervisors will be on par with other leading CPSEs in terms of pay. The Board of the CPSE has the power to grant additional increments and a number of cases they have even take the approval of the administrative Ministry. The DPE vide Clause 2 (ii) of the Office Memorandum dated 26th November 2008 has nullified this.
It is unethical and against natural justice to withdraw these additional increments granted by a competent authority after more than two years. The executives have drawn these increments and received the pay based on these increments during the last two years. You may kindly note, that in a number of cases after the Pay revision (which has taken place after 10 long years), the executive will be fixed at a pay which is less than the pay they are already drawing and there will be recoveries in the salary. We request you sir, to please examine the issue objectively and withdraw this Clause 2 (ii) of DPE OM dated 26th November 2008.
4. Personal pay / Special pay for purposes of Pay fixation on pay revision: It is a well defined policy that Personal Pay, Special Pay etc. of the individual is always considered for purposes of pay fixation at the time of pay revision. Keeping in line with the established policy, the Personal Pay, Special Pay etc. should be considered as basic pay for purposes of Pay fixation at the time of pay revision. In line with the past practice, the family planning increment should be given in the new scale.
5. Enhancing income tax exemption up to Rs. 10.00 Lakhs for gratuity with effect from Jan. 2007: The ceiling limit for payment of gratuity has been enhanced to Rs. 10.00 Lakhs for CPSEs from Jan. 2007. However the limit for income tax exemption has not been raised. The present limit of Rs. 3.50 lakhs was fixed in 1996. DPE should take up with the Ministry of Finance for enhancement of limit for income tax exemption for gratuity to Rs. 10.00 Lakhs for CPSEs employees with effect from 1st January 2007. It may be noted that all government employees are exempted from payment of income tax up to Rs. 10.00 lakhs on Gratuity with effect from 1st January 2006.
The recommendation of the 2nd pay revision committee for the removal of ceiling for payment of gratuity should be implemented. There will be no additional burden on the CPSEs as the Superannuation benefits including Gratuity are limited to 30% of the Pay. The Enterprises will contribute 30% of Pay only for all the Superannuation befits which include PF, Gratuity, medical benefit for retired employees and Pension.
6. Taxation of Perks for Company owned / leased accommodation: The executives residing in Company quarters and leased accommodation are being charged Perks taxation, if they are not paying 10% of the basic pay as rent recovery. It has nothing to do with the type of accommodation and the market rent of the quarter. In a number of cases executives are provided lower grade of accommodation due to non availability of quarters. Even in such cases the executives have to pay Perks tax. In most of the cases the rent recovery at 10% will be higher than the market rent of the houses. With the result the employee prefer to stay outside the Township and draw HRA. This will make the quarters vacant. The employees of CPSEs shall be treated on par with the government employees for purposes of Perks taxation for the housing accommodation. The rent recovery shall be based on licensee fee and the perks tax should not be applicable if the licensee fee is paid as rent recovery.
7. Retire Employees Medical Benefit: The 2nd Pay revision committee had recommended that CPSEs may create a corpus by contributing 1 to 1.5% of PBT to create a fund in order to take care of medical and any other emergency needs of retired employees who are not adequately covered by the Pension Scheme. Even though the government has accepted the recommendations, none of the Central Public Sector Enterprises have implemented this DPE order in letter and spirit. The DPE and the administrative ministries should review implementation of this circular and ensure that this order is implemented by all the CPSEs within the next three months.
8. Disparity in pay with respect to non-officers: There are disparities existing in the pay, even in the pre-revised scale in companies like Hindustan Machine Tools Ltd. The non-executives draw higher salaries because of the agreement made during 1992 pay revision, allowing percentage increment and open ended pay scales for workmen. This needs to be corrected urgently as it has demoralized the executives as they are drawing much less Pay than their sub-ordinates.
9. The issue of executive promoted from non-executives to executive and also the fitment of Executives recruited after 01.01.2007. The Executive recruited after 01.01.2007 had not benefited with 30 % Fitment, This issue shall be considered for a favorable decision.
10. Issue of non practicing allowance (NPA): Earlier to this revision NPA has always be considered as pay purpose of calculation of DA, CPF and gratuity. In the recent orders clarity is missing in the subject matter. Number of PSE’s are considering NPA as a part of pay and others are not willing to do so as the DPE circular is not clear in this issue. Necessary the guidelines may be issued in this subject.
11. Maternity Leave: Women employees of CPSEs should be treated on par with the government employees in terms of Maternity leave and Child care leave.
12. Upgrading large CPSEs as A+ Enterprise: Over a period of time some of the CPSEs have grown in size. The volume of business they carry out is large and comparable to Multi-national Enterprises, their activities are spread over the globe and they operate in highly technical intensive areas. They are competing with the global players and have proved their capabilities. To name a few under this category NTPC, BHEL, ONGC, Indian oil, SAIL, Coal India, NALCO, NMDC, HAL, BEL. These Enterprises have to be identified based on defined parameters and categorized as A+ Enterprises and the posts of CMD and functional Directors have to be upgraded.
We will be grateful to you if you could give us a meeting at your convenience for us to present these issues and discuss further.
Thanking you, yours faithfully,
Baby Thomas
Secretary General, NCOA
Note: Attn: Mr. Rajesh Singh: Sir, you may kindly inform us the date/ time by FAX to 0484 2720893. Or through phone: 09446081060 (self, Cochin)/ Mr. K. Ashok Rao, Delhi-9868101640. Thanks & regards.
Baby Thomas.
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Posted on 17-Sep-2011
Queen City To
Sh. Ashok Kumar Pavadia
Jt. Secretary, DPE
24/08.2011
Respected Sir,
We met our Secretary DPE on 17/11/2009 and had a discussion on certain pending issues regarding pay revision. Further to this we would like to bring to your kind notice the following points with respect to the Pay revision of executives in Central Public Sector Enterprises effective from January 2007. These issues need your kind attention, as they are pending for a long time and are demoralizing the executives.
1. Periodicity:
The Office Memorandums issued by DPE regarding the Pay revision of executives in CPSEs have not mentioned about the periodicity. With the result the CPSEs at the time of pay revision effective from January 2007 have not mentioned about periodicity. Historically the Pay in CPSEs is revised once in 5 years except in 1997. In the case of workmen, for the pay revision due from 2007, the guidelines issued by DPE have given the option for the periodicity of 5 to 10 years. In the present context of free market economy, the salaries of executives in CPSEs have to be aligned to the market conditions as regularly as feasible to ensure that proper competent manpower is attracted and retained in the CPSEs, so that they can effectively compete with the Private Sector and Multi-National Enterprises. It may kindly be noted that the Pay revision for executives in Private Sector is carried out on a yearly basis. Also the pay revision for executives and workmen in an Enterprise has to be simultaneous to ensure that there are no serious anomalies (In the case of HMT, all the workmen draw Pay which is higher than the pay of even the General Manager). Keeping this in mind the pay revision for executives shall be carried out after 5 years in January 2012. In the long run the periodicity of Pay revision for employees in CPSEs shall be three years to align them with the market realities.
2. Revision of Pay scales for sick and marginally profit making companies: The 2nd Pay revision committee had recommended that Sick Enterprises that are making cash profits may be allowed to implement the pay revision without Risk Pay or Variable Pay. This recommendation of the committee has not been implemented so far. We request that the government should implement this recommendation and the revised pay scales should be implemented with effect from 1st January 2007 for the marginally profit making and sick CPSEs with 30% fitment benefit. The variable pay and revision of Perks & Allowances can be differed.
The 2nd Pay revision committee had also recommended that CPSEs that are not making cash profits should be examined by BRPSE in a period of 6 months for revival or enclosure. Enterprises that are recommended for revival should include the proposal for revised pay scales. If Enterprises are recommended for closure, the executives should be compulsorily retired by paying compensation based on the revised basic pay. We request that this recommendation of the committee should be implemented immediately. If the government delays a decision further, it may result in key executives leaving the Enterprise and it will become difficult for the government to revive these Enterprises subsequently.
3. Additional increments granted prior to 1st January 2007:
A few CPSEs especially under the Ministry of Defence Production have granted extraordinary additional increments to their executives prior to January 2007 as they are not able attract the best talent. These Enterprises are working in high tech-areas and were finding it very difficult to run the Enterprises as they are not able to attract the technically competent engineers in view of meager salaries when compared to the Private Sector and other CPSE Units like NTPC, NHPC, PGCIL, REC, ONGC, IOC, HPCL, BPCL, GAIL, NMDC, NALCO, BHEL, SAIL, CIL, etc.
The Boards of these CPSEs have granted additional increments prior to 1st January 2007 in these Enterprises to ensure that the Executives / Supervisors will be on par with other leading CPSEs in terms of pay. The Board of the CPSE has the power to grant additional increments and a number of cases they have even take the approval of the administrative Ministry. The DPE vide Clause 2 (ii) of the Office Memorandum dated 26th November 2008 has nullified this.
It is unethical and against natural justice to withdraw these additional increments granted by a competent authority after more than two years. The executives have drawn these increments and received the pay based on these increments during the last two years. You may kindly note, that in a number of cases after the Pay revision (which has taken place after 10 long years), the executive will be fixed at a pay which is less than the pay they are already drawing and there will be recoveries in the salary. We request you sir, to please examine the issue objectively and withdraw this Clause 2 (ii) of DPE OM dated 26th November 2008.
4. Personal pay / Special pay for purposes of Pay fixation on pay revision: It is a well defined policy that Personal Pay, Special Pay etc. of the individual is always considered for purposes of pay fixation at the time of pay revision. Keeping in line with the established policy, the Personal Pay, Special Pay etc. should be considered as basic pay for purposes of Pay fixation at the time of pay revision. In line with the past practice, the family planning increment should be given in the new scale.
5. Enhancing income tax exemption up to Rs. 10.00 Lakhs for gratuity with effect from Jan. 2007: The ceiling limit for payment of gratuity has been enhanced to Rs. 10.00 Lakhs for CPSEs from Jan. 2007. However the limit for income tax exemption has not been raised. The present limit of Rs. 3.50 lakhs was fixed in 1996. DPE should take up with the Ministry of Finance for enhancement of limit for income tax exemption for gratuity to Rs. 10.00 Lakhs for CPSEs employees with effect from 1st January 2007. It may be noted that all government employees are exempted from payment of income tax up to Rs. 10.00 lakhs on Gratuity with effect from 1st January 2006.
The recommendation of the 2nd pay revision committee for the removal of ceiling for payment of gratuity should be implemented. There will be no additional burden on the CPSEs as the Superannuation benefits including Gratuity are limited to 30% of the Pay. The Enterprises will contribute 30% of Pay only for all the Superannuation befits which include PF, Gratuity, medical benefit for retired employees and Pension.
6. Taxation of Perks for Company owned / leased accommodation: The executives residing in Company quarters and leased accommodation are being charged Perks taxation, if they are not paying 10% of the basic pay as rent recovery. It has nothing to do with the type of accommodation and the market rent of the quarter. In a number of cases executives are provided lower grade of accommodation due to non availability of quarters. Even in such cases the executives have to pay Perks tax. In most of the cases the rent recovery at 10% will be higher than the market rent of the houses. With the result the employee prefer to stay outside the Township and draw HRA. This will make the quarters vacant. The employees of CPSEs shall be treated on par with the government employees for purposes of Perks taxation for the housing accommodation. The rent recovery shall be based on licensee fee and the perks tax should not be applicable if the licensee fee is paid as rent recovery.
7. Retire Employees Medical Benefit: The 2nd Pay revision committee had recommended that CPSEs may create a corpus by contributing 1 to 1.5% of PBT to create a fund in order to take care of medical and any other emergency needs of retired employees who are not adequately covered by the Pension Scheme. Even though the government has accepted the recommendations, none of the Central Public Sector Enterprises have implemented this DPE order in letter and spirit. The DPE and the administrative ministries should review implementation of this circular and ensure that this order is implemented by all the CPSEs within the next three months.
8. Disparity in pay with respect to non-officers: There are disparities existing in the pay, even in the pre-revised scale in companies like Hindustan Machine Tools Ltd. The non-executives draw higher salaries because of the agreement made during 1992 pay revision, allowing percentage increment and open ended pay scales for workmen. This needs to be corrected urgently as it has demoralized the executives as they are drawing much less Pay than their sub-ordinates.
9. The issue of executive promoted from non-executives to executive and also the fitment of Executives recruited after 01.01.2007. The Executive recruited after 01.01.2007 had not benefited with 30 % Fitment, This issue shall be considered for a favorable decision.
10. Issue of non practicing allowance (NPA): Earlier to this revision NPA has always be considered as pay purpose of calculation of DA, CPF and gratuity. In the recent orders clarity is missing in the subject matter. Number of PSE’s are considering NPA as a part of pay and others are not willing to do so as the DPE circular is not clear in this issue. Necessary the guidelines may be issued in this subject.
11. Maternity Leave: Women employees of CPSEs should be treated on par with the government employees in terms of Maternity leave and Child care leave.
12. Upgrading large CPSEs as A+ Enterprise: Over a period of time some of the CPSEs have grown in size. The volume of business they carry out is large and comparable to Multi-national Enterprises, their activities are spread over the globe and they operate in highly technical intensive areas. They are competing with the global players and have proved their capabilities. To name a few under this category NTPC, BHEL, ONGC, Indian oil, SAIL, Coal India, NALCO, NMDC, HAL, BEL. These Enterprises have to be identified based on defined parameters and categorized as A+ Enterprises and the posts of CMD and functional Directors have to be upgraded.
We will be grateful to you if you could give us a meeting at your convenience for us to present these issues and discuss further.
Thanking you, yours faithfully,
Baby Thomas
Secretary General, NCOA
Note: Attn: Mr. Rajesh Singh: Sir, you may kindly inform us the date/ time by FAX to 0484 2720893. Or through phone: 09446081060 (self, Cochin)/ Mr. K. Ashok Rao, Delhi-9868101640. Thanks & regards.
Baby Thomas.
Administrator :
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NCOA WORKSHOP ON PMS (by Baby Thomas)
PL. SEE THE UPLOADED PHOTO FOR DETAILS....
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Non-pensioners corpus in a limbo
Non-pensioners corpus in a limbo
Central Goverment Guidelines To PSUs Ambiguous,Claim Retirees
B Pradeep Nair | TNN
Bangalore: A central government plan for creation of a corpus to take care of the medical emergencies of its non-pensioners is wobbling at the implementation level,thanks to the conditions-heavy fine print which retirees say is ambiguous.
The second Pay Revision Committee (PRC) recommended earlier this year that a corpus be created to take care of medical and any other emergency needs of retired executives and also those employees who are not adequately covered by the pension scheme.The PRC says that the CPSEs (central public sector enterprises) may create the corpus by contributing 1% to 1.5% of their profit before tax.
THE GRIEVANCES
Following PRC recommendations,the ministry of heavy industries and public enterprises asked CPSE managements to frame a scheme based on a set of guidelines,opposed by retirees.One of the guidelines says: A committee of directors may be constituted by the board of directors of each CPSE to identify the areas of medical and any other emergency needs of the senior citizens.
Ernest Abraham,general secretary of the All-India Non-pensioned-cum-Senior Citizens Retirees Association,told TOI: Why cant the ministry straightaway act on PRCs recommendations to set up a corpus,instead of relying on CPSEs The Bangalorebased association is one of the many pressure groups in this cause.
Another sticky guideline: Each CPSE will contribute 1.5% of previous years profit before tax to the corpus in the first year of the scheme;in the subsequent years,depending upon the need,contribution to the corpus,if required,would be made.
Abraham feels this clause is vague ( because the nature of the need is not known ) and any form of such conditional contribution to a social cause is insensitive.Why this condition from second year Let all profit-making CPSEs contribute 1.5% into the corpus every year.
Abraham wonders whether only employees of profit-making PSUs will be beneficiaries of the corpus.Since companies not making profit will not contribute to the corpus,does it mean employees of sick or closed units are left to fend for themselves This way,employees of ITI,for example,will be left out.If this happens,it amounts to victimizing them for no fault of theirs because the PRC clearly says that inefficient administration of CPSEs is what led to them becoming sick, he says.
THE SOLUTION
The association has made a strong pitch for removing ambiguities and setting up the corpus immediately.It has also suggested setting up of a single nodal agency for managing the corpus.Abraham says,Let the fixed contributions of CPSEs come into the corpus every year.
Stressing that non-pensioners of all central PSUs must be covered under the scheme,the association,in a letter to the ministry,says,The government does not make any discrimination in the pension to government retirees based on the departments performance;the same logic should hold good for non-pensioned retirees irrespective of the fact that they are from profit-making or sick PSUs.
WHY PSUs BECAME SICK
Monopolistic operations and a costplus-pricing system led to large operational inefficiencies and recruitment of manpower far in excess of requirement.Management started getting politicized and many times decisions were taken on considerations other than sound commercial logic.Several CPSEs failed to foresee and adopt new technologies and,management practices and became sick.
2nd Pay Revision Committee
WHAT RETIREES WANT
Set up corpus based on Pay Revision Committee recommendation and a single nodal agency to manage the corpus
Revise ministry of heavy industries and public enterprises guidelines
Central PSUs should contribute 1.5% of their profit before tax every year and not just in the first year of the scheme
All central PSU retirees should be eligible for the benefits of the corpus and not just retirees of profit-making companies
(In a tragic turn,Ernest Abraham,who has been fighting relentlessly for the welfare of non-pensioners,passed away in Bangalore early Sunday,just a few days after this correspondent
interacted with him)
Central Goverment Guidelines To PSUs Ambiguous,Claim Retirees
B Pradeep Nair | TNN
Bangalore: A central government plan for creation of a corpus to take care of the medical emergencies of its non-pensioners is wobbling at the implementation level,thanks to the conditions-heavy fine print which retirees say is ambiguous.
The second Pay Revision Committee (PRC) recommended earlier this year that a corpus be created to take care of medical and any other emergency needs of retired executives and also those employees who are not adequately covered by the pension scheme.The PRC says that the CPSEs (central public sector enterprises) may create the corpus by contributing 1% to 1.5% of their profit before tax.
THE GRIEVANCES
Following PRC recommendations,the ministry of heavy industries and public enterprises asked CPSE managements to frame a scheme based on a set of guidelines,opposed by retirees.One of the guidelines says: A committee of directors may be constituted by the board of directors of each CPSE to identify the areas of medical and any other emergency needs of the senior citizens.
Ernest Abraham,general secretary of the All-India Non-pensioned-cum-Senior Citizens Retirees Association,told TOI: Why cant the ministry straightaway act on PRCs recommendations to set up a corpus,instead of relying on CPSEs The Bangalorebased association is one of the many pressure groups in this cause.
Another sticky guideline: Each CPSE will contribute 1.5% of previous years profit before tax to the corpus in the first year of the scheme;in the subsequent years,depending upon the need,contribution to the corpus,if required,would be made.
Abraham feels this clause is vague ( because the nature of the need is not known ) and any form of such conditional contribution to a social cause is insensitive.Why this condition from second year Let all profit-making CPSEs contribute 1.5% into the corpus every year.
Abraham wonders whether only employees of profit-making PSUs will be beneficiaries of the corpus.Since companies not making profit will not contribute to the corpus,does it mean employees of sick or closed units are left to fend for themselves This way,employees of ITI,for example,will be left out.If this happens,it amounts to victimizing them for no fault of theirs because the PRC clearly says that inefficient administration of CPSEs is what led to them becoming sick, he says.
THE SOLUTION
The association has made a strong pitch for removing ambiguities and setting up the corpus immediately.It has also suggested setting up of a single nodal agency for managing the corpus.Abraham says,Let the fixed contributions of CPSEs come into the corpus every year.
Stressing that non-pensioners of all central PSUs must be covered under the scheme,the association,in a letter to the ministry,says,The government does not make any discrimination in the pension to government retirees based on the departments performance;the same logic should hold good for non-pensioned retirees irrespective of the fact that they are from profit-making or sick PSUs.
WHY PSUs BECAME SICK
Monopolistic operations and a costplus-pricing system led to large operational inefficiencies and recruitment of manpower far in excess of requirement.Management started getting politicized and many times decisions were taken on considerations other than sound commercial logic.Several CPSEs failed to foresee and adopt new technologies and,management practices and became sick.
2nd Pay Revision Committee
WHAT RETIREES WANT
Set up corpus based on Pay Revision Committee recommendation and a single nodal agency to manage the corpus
Revise ministry of heavy industries and public enterprises guidelines
Central PSUs should contribute 1.5% of their profit before tax every year and not just in the first year of the scheme
All central PSU retirees should be eligible for the benefits of the corpus and not just retirees of profit-making companies
(In a tragic turn,Ernest Abraham,who has been fighting relentlessly for the welfare of non-pensioners,passed away in Bangalore early Sunday,just a few days after this correspondent
interacted with him)
DPEs letter on creation of a corpus by contributing 1% to 1.5%
F. No. 2(81)/08-DPE-(WC)
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises
Public Enterprises Bhawan
Block No.14, CGO Complex, Lodi Road
New Delhi, the 13 January, 2009.
OFFICE MEMORANDUM
Subject: - Recommendation of 2nd PRC (Pay Revision Committee) on
creation of a corpus by contributing 1% to 1.5% of PBT (Profit
Before Tax) by CPSEs to take care of medical and any other
emergency needs of retired executives and those who are not
adequately covered by the pension scheme; examination
thereof.
Government, while considering the recommendations of the
2nd PRC, which was constituted for recommending revision of pay and
allowances for executives and non-unionised supervisors of CPSEs w.e.f.
01.01.2007 decided, inter alia to examine the recommendation of the 2nd
PRC on the subject mentioned above separately. The relevant extracts as
given in para 6.2.5 (c) of the report of 2nd PRC are as under:-
“The committee recommends that CPSEs may create a corpus
by contributing 1% to 1.5% of PBT to create a fund in order
to take care of medical and any other emergency needs of
retired executives and also those who are not adequately
covered by the pension scheme.”
2. The Ministries/Departments concerned with the CPSEs are
requested to furnish their considered views about the feasibility and the
methodology of operationalising the recommendation by 12.02.2009.
(Rajendra Kumar)
Deputy Secretary to the Government of India
Tel. 24360624
Administrative Ministries/Departments of the Government of India
(Secretary by name as per List)
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises
Public Enterprises Bhawan
Block No.14, CGO Complex, Lodi Road
New Delhi, the 13 January, 2009.
OFFICE MEMORANDUM
Subject: - Recommendation of 2nd PRC (Pay Revision Committee) on
creation of a corpus by contributing 1% to 1.5% of PBT (Profit
Before Tax) by CPSEs to take care of medical and any other
emergency needs of retired executives and those who are not
adequately covered by the pension scheme; examination
thereof.
Government, while considering the recommendations of the
2nd PRC, which was constituted for recommending revision of pay and
allowances for executives and non-unionised supervisors of CPSEs w.e.f.
01.01.2007 decided, inter alia to examine the recommendation of the 2nd
PRC on the subject mentioned above separately. The relevant extracts as
given in para 6.2.5 (c) of the report of 2nd PRC are as under:-
“The committee recommends that CPSEs may create a corpus
by contributing 1% to 1.5% of PBT to create a fund in order
to take care of medical and any other emergency needs of
retired executives and also those who are not adequately
covered by the pension scheme.”
2. The Ministries/Departments concerned with the CPSEs are
requested to furnish their considered views about the feasibility and the
methodology of operationalising the recommendation by 12.02.2009.
(Rajendra Kumar)
Deputy Secretary to the Government of India
Tel. 24360624
Administrative Ministries/Departments of the Government of India
(Secretary by name as per List)
Letter to Dr. Manmohan Singh for formaton of Corpus out of 1.5% of PBT for CPSEs retirees.
To,
Dr. Manmohan Singhji,
Honourable Prime Minister,
Govt. of India,
South Block,
New Delhi – 110 011.
Respected Sir,
Sub: Formation of a Central CORPUS FUND for CPSE’s Non – Pensioned Retirees / Senior
Citizens - Request for.
Ref: 1. Recommendations of 2nd Pay Revision Committee for CPSE’s Executives {Page – 130,
Para. No. 6.2.5 (C)}
2. Office – Memorandum No. 2(81) /08 – DPE (WC) – GL – XVI / 2009 dated 08.07.2009
3. National Workshop held at New Delhi on 16.11.2010, on “Medical & Emergency Needs of Retired Employees of CPSEs – Creation of CORPUS FUND”.
******
We are the National level Association of Non – Pensioned Retires of Central / State Government Public / Private Sector Enterprises / Undertakings, founded in 2001.
2. Unfortunately, unlike the employees of Central / State Government Departments, we the employees retired from Public Sector Enterprises do not have any facilities of either Medical or Pension benefits, after retirement (even after working for 30 – 35 years in an Organisation and having served the nation for such long periods).
3. It is needles to mention that the employees of Govt. of India / Govts. of All States, Members of Legislative Assembly / Councils (MLAs and MLCs), Members of Parliment (MPs), Officials of Financial Banks etc., including the workers of Anganawadi Schools are getting the Pensions and Medical Benefits, after their retirements.
4. We believe, It is needless to emphasize the present day need of providing the SOCIAL SECURITY to the aged and retired employees of Public Sector Enterprises.
5. Vide the Office – Memorandum No. 2(81)/08-DPE(WC) – GL – XVI / 2009 dated 08.07.2009 (a copy enclosed), issued by the Director, Dept. of Public Enterprises, Govt. of India, New Delhi, the Para – 4 reads as follows:
“After careful consideration of the recommendation of 2nd PRC, it has now been decided that individual CPSEs may create a corpus by contributing not more than 1.5% of PBT, in order to take care of medical and any other emergency needs of those retired employees, who are not covered by the pension scheme and / or post superannuation medical benefit scheme”.
6. The Administratative Ministries / Departments had been advised to issue suitable instructions to the Managements of their CPSEs, to consider framing of SCHEME, with a view to take care of Medical and other emergency needs of those, retired from the respective PSEs. But, to our dismay. No PSE has so far come forward to form any Schemes of the CORPUS FUND.
7. But, we have been requesting the Govt. of India to kindly formulate a SINGLE CORPUS and NODAL AGENCY, on the lines of PFRDA, CAG, etc., but all our efforts have been in vain.
8. Of – late, we may bring to your kind attention that M/s National Institute of Personal Management (NIPM) and Management Leadership Development Centre had organized a National Workshop on “Medical and Emergency needs of Retired Employees of CPSEs Creation of CORPUS”, on 16.11.2010 at SCOPE Complex, New Delhi. All the Top officials of the Industry, had participated. A copy of the Proceedings is enclosed for your immediate reference. The Conclusions and Recommendations made by the workshop and forwarded to the Department of Public Enterprises / Other Ministries are reproduced below:
Conclusions and Recommendations
In the light of discussion, interaction and deliberations the following conclusion arid recommendations were drawn.
It was understood that these recommendations could, for the time being, be only within the confines of the DPE guidelines promulgated so far and the review of the guidelines within a larger frame of greater fairness and equity would have to be taken up separately.
1. The CPSUs could be divided into 3 categories for the above purpose :-
a) Maharatna, Navaratna and Miniratna companies which have annual
PBT from which 1-1.5% could be earmarked towards the corpus.
b) Other profit making PSUs
c) Loss making PSUs
THE RATNA GROUP
Provide medical assistance on par with serving employees of equivalent designations
Make an ex-gratia payment as near the 30% of the minimum of the current pay attached to the designation at which the employee had retired or its present equivalent to meet the other emergency needs of the employee. This payment calculated monthly may be paid every quarter. The surviving spouse to be eligible for half of this amount. Additionally DA to be paid at prevailing rates.
3) This payment will be made from the corpus created out of the 1-1.5% of the PBT. This may be decided based on the fund available in the corpus. The Scheme so formulated by the Company will be reviewed periodically to ensure its viability.
4) The Corpus to be managed by a Trust consisting of Director (Finance) as Chairman, Director (HR), another serving Director, two senior retired employees not lower than the level of General Manager. The Trust will ensure that sufficient contingent reserves are held at any given time.
THE NON RATNA GROUP
The Board to determine the percentage of PBT to be transferred to the Corpus
Provide, on priority, medical assistance on par with serving employees
Make ex-gratia payment to meet the minimum needs of the employee to live a life of dignity which will also bring a fair name to the PSU for its care and concern for the pioneers and foundation makers
The Corpus to be administered in the same manner as above.
THE LOSS MAKING GROUP
Same action as for the Non Ratna Group as above.
Sources for fund may be as follows:
DPE CORPUS
It is suggested that from out of the total dividends received by the Govt. from the PSUs, 1% should be set aside as a Special Reserve to fund the needs of the retired employees of the Loss Making Group and also the needs of the other groups in the unlikely event of extraordinary circumstances.
Similarly 1% of the amount realized by the Govt. by way of disinvestment of PSUs may be transferred to this Trust.
This Special Reserve should be administered jointly by the DPE and SCOPE.
9. In view of the above, we would once again urge and request your good offices to kindly direct the concerned officials of the Ministry of Heavy Industries and Public Enterprises, so as to implement the recommendations of 2nd PRC for CPSEs and the above mentioned Recommendations made by the Workshop held on 16.11.2010, for formulating / establishing a Central CORPUS / NODAL AGENCY and to provide the SOCIAL SECURITY to the Retirees of CPSEs, who are Senior Citizens of this Country.
Thanking you,
Your’s faithfully
(N. Ramprasad) (B.T.Srinivasa Gowda)
President General Secretary
Dr. Manmohan Singhji,
Honourable Prime Minister,
Govt. of India,
South Block,
New Delhi – 110 011.
Respected Sir,
Sub: Formation of a Central CORPUS FUND for CPSE’s Non – Pensioned Retirees / Senior
Citizens - Request for.
Ref: 1. Recommendations of 2nd Pay Revision Committee for CPSE’s Executives {Page – 130,
Para. No. 6.2.5 (C)}
2. Office – Memorandum No. 2(81) /08 – DPE (WC) – GL – XVI / 2009 dated 08.07.2009
3. National Workshop held at New Delhi on 16.11.2010, on “Medical & Emergency Needs of Retired Employees of CPSEs – Creation of CORPUS FUND”.
******
We are the National level Association of Non – Pensioned Retires of Central / State Government Public / Private Sector Enterprises / Undertakings, founded in 2001.
2. Unfortunately, unlike the employees of Central / State Government Departments, we the employees retired from Public Sector Enterprises do not have any facilities of either Medical or Pension benefits, after retirement (even after working for 30 – 35 years in an Organisation and having served the nation for such long periods).
3. It is needles to mention that the employees of Govt. of India / Govts. of All States, Members of Legislative Assembly / Councils (MLAs and MLCs), Members of Parliment (MPs), Officials of Financial Banks etc., including the workers of Anganawadi Schools are getting the Pensions and Medical Benefits, after their retirements.
4. We believe, It is needless to emphasize the present day need of providing the SOCIAL SECURITY to the aged and retired employees of Public Sector Enterprises.
5. Vide the Office – Memorandum No. 2(81)/08-DPE(WC) – GL – XVI / 2009 dated 08.07.2009 (a copy enclosed), issued by the Director, Dept. of Public Enterprises, Govt. of India, New Delhi, the Para – 4 reads as follows:
“After careful consideration of the recommendation of 2nd PRC, it has now been decided that individual CPSEs may create a corpus by contributing not more than 1.5% of PBT, in order to take care of medical and any other emergency needs of those retired employees, who are not covered by the pension scheme and / or post superannuation medical benefit scheme”.
6. The Administratative Ministries / Departments had been advised to issue suitable instructions to the Managements of their CPSEs, to consider framing of SCHEME, with a view to take care of Medical and other emergency needs of those, retired from the respective PSEs. But, to our dismay. No PSE has so far come forward to form any Schemes of the CORPUS FUND.
7. But, we have been requesting the Govt. of India to kindly formulate a SINGLE CORPUS and NODAL AGENCY, on the lines of PFRDA, CAG, etc., but all our efforts have been in vain.
8. Of – late, we may bring to your kind attention that M/s National Institute of Personal Management (NIPM) and Management Leadership Development Centre had organized a National Workshop on “Medical and Emergency needs of Retired Employees of CPSEs Creation of CORPUS”, on 16.11.2010 at SCOPE Complex, New Delhi. All the Top officials of the Industry, had participated. A copy of the Proceedings is enclosed for your immediate reference. The Conclusions and Recommendations made by the workshop and forwarded to the Department of Public Enterprises / Other Ministries are reproduced below:
Conclusions and Recommendations
In the light of discussion, interaction and deliberations the following conclusion arid recommendations were drawn.
It was understood that these recommendations could, for the time being, be only within the confines of the DPE guidelines promulgated so far and the review of the guidelines within a larger frame of greater fairness and equity would have to be taken up separately.
1. The CPSUs could be divided into 3 categories for the above purpose :-
a) Maharatna, Navaratna and Miniratna companies which have annual
PBT from which 1-1.5% could be earmarked towards the corpus.
b) Other profit making PSUs
c) Loss making PSUs
THE RATNA GROUP
Provide medical assistance on par with serving employees of equivalent designations
Make an ex-gratia payment as near the 30% of the minimum of the current pay attached to the designation at which the employee had retired or its present equivalent to meet the other emergency needs of the employee. This payment calculated monthly may be paid every quarter. The surviving spouse to be eligible for half of this amount. Additionally DA to be paid at prevailing rates.
3) This payment will be made from the corpus created out of the 1-1.5% of the PBT. This may be decided based on the fund available in the corpus. The Scheme so formulated by the Company will be reviewed periodically to ensure its viability.
4) The Corpus to be managed by a Trust consisting of Director (Finance) as Chairman, Director (HR), another serving Director, two senior retired employees not lower than the level of General Manager. The Trust will ensure that sufficient contingent reserves are held at any given time.
THE NON RATNA GROUP
The Board to determine the percentage of PBT to be transferred to the Corpus
Provide, on priority, medical assistance on par with serving employees
Make ex-gratia payment to meet the minimum needs of the employee to live a life of dignity which will also bring a fair name to the PSU for its care and concern for the pioneers and foundation makers
The Corpus to be administered in the same manner as above.
THE LOSS MAKING GROUP
Same action as for the Non Ratna Group as above.
Sources for fund may be as follows:
DPE CORPUS
It is suggested that from out of the total dividends received by the Govt. from the PSUs, 1% should be set aside as a Special Reserve to fund the needs of the retired employees of the Loss Making Group and also the needs of the other groups in the unlikely event of extraordinary circumstances.
Similarly 1% of the amount realized by the Govt. by way of disinvestment of PSUs may be transferred to this Trust.
This Special Reserve should be administered jointly by the DPE and SCOPE.
9. In view of the above, we would once again urge and request your good offices to kindly direct the concerned officials of the Ministry of Heavy Industries and Public Enterprises, so as to implement the recommendations of 2nd PRC for CPSEs and the above mentioned Recommendations made by the Workshop held on 16.11.2010, for formulating / establishing a Central CORPUS / NODAL AGENCY and to provide the SOCIAL SECURITY to the Retirees of CPSEs, who are Senior Citizens of this Country.
Thanking you,
Your’s faithfully
(N. Ramprasad) (B.T.Srinivasa Gowda)
President General Secretary
Creation of Corpus out of 1.5% of PBT for retiree of CPSEs
Workshop
on
“Medical and Emergency Needs of Retired Employees of CPSEs – Creation of Corpus”
on 16th November, 2010 at SCOPE Complex, New Delhi
Proceedings of the Workshop
National Institute of Personnel Management and Management & Leadership Development Centre organized a one day workshop on “Medical and Emergency Needs of Retired Employees of CPSEs – Creation of Corpus”. The following distinguished speakers addressed the workshop:-
• Dr. Nitish Sen Gupta, Chairman, BRPSE, Government of India.
• Dr. U.D. Choubey, Director General, SCOPE & Former CMD, GAIL.
• Shri Rajendra Kumar, Director, DPE, Government of India.
• Shri K.Ramachandran Pillai, CMD, National Textile Corporation Ltd.
• Dr. A.K. Balyan, MD, Petronet LNG and Former Director (HR), ONGC.
• Shri R.S.Butola, MD, ONGC Videsh Ltd.
• Shri G.L.Tandon, Former CMD, Coal India Ltd & Neyveli Lignite Corporation Ltd.
• Shri B.K.Bakshi, Former CMD, Indian Oil Corporation Ltd.
• Shri R.Srinivasana, Former Member (Per), ONGC.
• Shri R.P. Singh, Director (Per), IFFCO.
• Shri Neeraj Jain, IFFCO Tokyo Gen. Insurance Company.
• Dr. Jauhari Lal, President, MLDC & Former Director (HR), ONGC & OIL.
• Ms. Jatinder Peters, Vice Chairperson, NIPM (Delhi Chapter) & GM, ONGC.
The following presentations were made:-
• Shri M.B.Aparajit, Chief Manager, CIL.
• Shri S.K.Singh, EA to Director (HR), OIL.
• Ms. S. Swaminathan, Sr. Manager (HR), BHEL.
• Shri A.K.Shah, GM (HR), ONGC.
• Shri S.C.Mahato, Sr. Manager, GAIL.
60 executives from 18 organizations attended the workshop which included 10 retired executives from CPSEs. S/Sh. A.S.Soni, Former Director (Offshore), ONGC and Shri Ashok Anand, Former Director (Per), Oil India Ltd also attended it. The workshop was divided into 4 sessions i.e. 2 sessions before lunch and 2 sessions in the afternoon.
2. Dr. Jauhari lal, President MLDC and Former Director(HR), ONGC & Oil India Ltd. brought out briefly the objectives of the workshop as follows:-
• Understand the provisions and implications of the DPE guidelines issued vide their Office Memorandum No.2 (81)/08-DPE (WC)-GL-XVI/ 2009 dated 8 July 2009.
• Sharing of information by PSUs on the status of implementing the above guidelines.
• Options available to PSUs for medical facilities to retired employees.
• Understanding “emergency needs” of retired employees as stipulated in the guidelines.
• Formation of a model Scheme for creation of corpus.
• Strategy for honoring the DPE guidelines.
3. Shri Rajendra Kumar, Director, DPE made a presentation on “Welfare Steps for Retired Employees of CPSEs”. In his presentation he brought out the following points:-
• 2nd pay revision committee met retired CPSEs executives including the All India Non-Pensioned Cum Senior Citizens Retirees’ Association, Bangalore.
The committee observed that while a few CPSEs provided post retirement medical benefit, most of the retired executives had no access to medical benefits.
Committee recommended up to 30% of basic pay towards superannuation benefit after providing for PF and gratuity a buffer available for pension and/or post retirement medical benefits. This was available only for those who superannuated after 15 years of service in a CPSE.
Corpus from 1 to 1.5% of PBT be created by CPSEs for medical and any other emergency needs for retired executives and also those who were not adequately covered by a pension scheme.
4. He further pointed out that the recommendations of the committee were circulated and suggestions were sought regarding feasibility and methodology of operationalising them. However DPE could receive only two responses without any specific comments. Subsequently these guidelines were issued. Creation of corpus was provided for benefit of those who had no support system like pension or medical benefit scheme. However for those retiring after 01.01.07, superannuation benefits up to 30% of basic pay + DA was provided which included CPF, Gratuity, Pension and Post Superannuation medical benefits. He further stated that CPSEs should make their own schemes to manage the fund or to operate through insurance companies.
5. With regard to OM dated 8th July, 2009, Shri Rajendra Kumar clarified that the schemes were to be formulated only where need was felt to take care of medical and any other emergency needs for those not covered by the pension scheme and / or post superannuation medical benefit scheme. Guidelines provided that not more than 1.5% of the PBT of previous year and even may be less depending on requirement to be earmarked for creating the corpus. Guidelines further provided for constituting a committee of Directors for deciding on distribution of funds and identifying areas of medical and emergency needs. However, there would be no budgetary support from the Government. The CPSEs would submit their proposals of the scheme to their respective Ministry/Department for approval. Sh.Rajendra Kumar mentioned that as per his knowledge, no CPSE had framed any scheme. However, some CPSEs had started framing the scheme to replace / supplement the existing scheme and they were considering paying a monthly amount to meet medical and emergency needs. He further clarified that the intention should not be to exhaust the funds but to provide for a reasonable support for medical or emergency requirements and the contribution might be flexible depending upon the CPSEs PBT.
6. Dr.Nitish Sen Gupta Chairman, BRPSE, Secretary to Govt. of India (retired) and Former M.P. and Director, IMI who was the Member of the 2nd PRC mentioned about his experiences of meeting the representatives including the retired employees of the CPSE’s. He admitted that the plight of a large number of retired employees was really pitiable. The committee was moved after listening to their woes and made these recommendations. He further mentioned that the recommendations of this PRC were quite different from the past PRC’s. It brought the culture of compensation linked with profitability of an organization and de-linked from the Govt. pay scale structure. The recommendations of medical benefits to the retired employees were also unique. He felt sorry that no CPSE had formulated the scheme as per DPE guidelines. He said these were very important guidelines and emphasized that the money was not a constraint is a will, there is a way” and these guidelines were to be read between the lines and with the right spirit. He suggested that companies should get together and evolve suitable systems. He emphasized that there was urgent need that DPE should ensure that these guidelines were implemented. He suggested that this issue needed to be taken to the level of Secretary, DPE and even with the Honorable Minister.
7. Dr.U.D. Choubey DG, SCOPE and former CMD, GAIL in his special address traced the history of formation of Public Sector undertakings and its concept. These were created basically to modernize the process of industrialization of Indian economy in its various facets and also to reach the remotest and the most backward areas of the country for development. These were called as “Commanding heights and Modern temples of India”. The PSUs had made major contribution in the socio-economic development of the Country. PSUs at one time had 24 lakh employees which reduced to 15 lakh at present. It is because of their contribution, PSUs were now christened as Mini-Ratna, Nav-Ratna and Maha-Ratna companies. At present companies were contributing about Rs.100,000 crores as net profit every year and also contribute to Government every year as dividend. Because of profitability, about Rs.90,000 crores had been realized by the Government by way of disinvestment of PSUs.
8. Dr Choubey added that in view of the commitment and contribution made by the employees of CPSEs in the formative years, these companies were now the pride of the Nation. Therefore, social security of retired employees was not only an obligation but responsibility of the concerned PSU and also the Government. He suggested that the corpus at the national level could be created by contributing 0.1% every year of the net profit of PSUs. This could take care of the medical needs of the retired employees of CPSUs which were unable to meet their medical expenses because of their financial constraints. He recalled that a number of PSUs including GAIL had formulated medical schemes which were at par with the serving employees. DPE should come out with such a mandatory provision. He assured that the SCOPE would carry forward this issue with the higher Government level for equality and justice.
9. During the course of subsequent discussions / interactions with the panel speakers and the participants, the following points were highlighted:
• Retired employees are not to be viewed as wasted asset but as reserve and reservoir of valuable talent and experience on call at any time by the Govt or the CPSUs
• It was unfair to employ differential concepts between the status of retired Govt employees and the CPSU retired employees.
• The Supreme Court of India has held in number of decisions that CPSUs fall within the inclusive definition of ‘State’.
• The Supreme Court has also held that the power of the Govt. in the grant of any benefit should be structured by rational, relevant and non-discriminatory norms
• Retirement benefits in whatever form are deferred wage in consideration of past service rendered sacrificing the prime of youth for the sake of the Govt. (CPSU) and the benefit should be such that the retired employee is able to lead a dignified life maintaining, as far as possible, the standard of living he was used to during his service life.
• The Apex Court has held that classification of retired employees for the purpose of retirement benefits should comply with article 14 of the Constitution.
• Insistence on a minimum of 15 years of service in a CPSU is further discriminatory in as much as employees move from Govt. to CPSU or from one CPSU to another only to serve the larger interests of the Govt. and by the selection process of the Govt.
• The DPE guidelines provide for the retired employees of only profit making companies. There are no guidelines for those employees of PSUs which do not have PBT.
• The employees, per se, cannot be held responsible for the losses. There were many external reasons beyond their control.
• Nevertheless Financial position of many of such companies is fast improving by way of “Turn around” strategies and measures.
• The DPE guidelines are vague on the term “any emergency needs”.
• Emergency needs may differ from person to person and place to place. Companies like SAIL, Coal India Ltd., BHEL having a large number of retired employees settled all over India will find it impossible to access the emergency needs of an individual. No company can create an establishment for this purpose. Moreover, this will lead to subjectivity.
• The guidelines are not mandatory in nature and implementation is left to the discretion of the PSU management. The provision that the scheme may be set up where a need is felt is subjective in nature and is vulnerable to grossly discriminatory interpretations.
• That no PSU has set up any scheme, demonstrates that either there is too much “vagueness” in the guidelines or there is sheer apathy in the PSU management or both.
• This issue has to be seen in a larger perspective. This is an important issue of “social security” for which both the government and the concerned CPSUs have congruent responsibility.
• Social security scheme particularly the medical scheme and the financial assistance after retirement are motivational for retention of talents in the core disciplines and core sectors in this era of competitive environment. There are enough examples of European, Canadian and American companies for ensuring “social security” of its retired employees.
• Banking industry is very considerate to its retired employees and has given the second option to its retired employees to join the pension scheme.
• A large majority of employees who retired 5,10 or 15 years back received meager superannuation benefits by way of CPF, gratuity etc. and their financial position is miserable in the absence of any financial help from their own organization or Government.
• Guidelines talk about meeting ‘emergency needs’ which presumably are to meet the basic physical need of at least two square meals a day, clothing and toiletries for two persons and reasonable living accommodation and social needs for a decent living.
Conclusions and Recommendations
In the light of discussion, interaction and deliberations the following conclusions and recommendations were drawn.
It was understood that these recommendations could, for the time being, be only within the confines of the DPE guidelines promulgated so far and the review of the guidelines within a larger frame of greater fairness and equity would have to be taken up separately.
1. The CPSUs could be divided into 3 categories for the above purpose :-
a) Maharatna, Navaratna and Miniratna companies which have annual PBT from which 1-1.5% could be earmarked towards the corpus.
b) Other profit making PSUs
c) Loss making PSUs
THE RATNA GROUP
1) Provide medical assistance on par with serving employees of equivalent designations
2) Make an ex-gratia payment as near the 30% of the minimum of the current pay attached to the designation at which the employee had retired or its present equivalent to meet the other emergency needs of the employee. This payment calculated monthly may be paid every quarter. The surviving spouse to be eligible for half of this amount. Additionally DA to be paid at prevailing rates.
3) This payment will be made from the corpus created out of the 1-1.5% of the PBT. This may be decided based on the fund available in the corpus. The Scheme so formulated by the Company will be reviewed periodically to ensure its viability.
4) The Corpus to be managed by a Trust consisting of Director (Finance) as Chairman, Director (HR), another serving Director, two senior retired employees not lower than the level of General Manager. The Trust will ensure that sufficient contingent reserves are held at any given time.
THE NON RATNA GROUP
1) The Board to determine the percentage of PBT to be transferred to the Corpus
2) Provide, on priority, medical assistance on par with serving employees
3) Make ex-gratia payment to meet the minimum needs of the employee to live a life of dignity which will also bring a fair name to the PSU for its care and concern for the pioneers and foundation makers
4) The Corpus to be administered in the same manner as above.
THE LOSS MAKING GROUP
Same action as for the Non Ratna Group as above.
Sources for fund may be as follows:
DPE CORPUS
It is suggested that from out of the total dividends received by the Govt from the PSUs, 1% should be set aside as a Special Reserve to fund the needs of the retired employees of the Loss Making Group and also the needs of the other groups in the unlikely event of extraordinary circumstances.
Similarly 1% of the amount realized by the Govt by way of disinvestment of PSUs may be transferred to this Trust.
This Special Reserve should be administered jointly by the DPE and SCOPE.
(R.P. Singh)
on
“Medical and Emergency Needs of Retired Employees of CPSEs – Creation of Corpus”
on 16th November, 2010 at SCOPE Complex, New Delhi
Proceedings of the Workshop
National Institute of Personnel Management and Management & Leadership Development Centre organized a one day workshop on “Medical and Emergency Needs of Retired Employees of CPSEs – Creation of Corpus”. The following distinguished speakers addressed the workshop:-
• Dr. Nitish Sen Gupta, Chairman, BRPSE, Government of India.
• Dr. U.D. Choubey, Director General, SCOPE & Former CMD, GAIL.
• Shri Rajendra Kumar, Director, DPE, Government of India.
• Shri K.Ramachandran Pillai, CMD, National Textile Corporation Ltd.
• Dr. A.K. Balyan, MD, Petronet LNG and Former Director (HR), ONGC.
• Shri R.S.Butola, MD, ONGC Videsh Ltd.
• Shri G.L.Tandon, Former CMD, Coal India Ltd & Neyveli Lignite Corporation Ltd.
• Shri B.K.Bakshi, Former CMD, Indian Oil Corporation Ltd.
• Shri R.Srinivasana, Former Member (Per), ONGC.
• Shri R.P. Singh, Director (Per), IFFCO.
• Shri Neeraj Jain, IFFCO Tokyo Gen. Insurance Company.
• Dr. Jauhari Lal, President, MLDC & Former Director (HR), ONGC & OIL.
• Ms. Jatinder Peters, Vice Chairperson, NIPM (Delhi Chapter) & GM, ONGC.
The following presentations were made:-
• Shri M.B.Aparajit, Chief Manager, CIL.
• Shri S.K.Singh, EA to Director (HR), OIL.
• Ms. S. Swaminathan, Sr. Manager (HR), BHEL.
• Shri A.K.Shah, GM (HR), ONGC.
• Shri S.C.Mahato, Sr. Manager, GAIL.
60 executives from 18 organizations attended the workshop which included 10 retired executives from CPSEs. S/Sh. A.S.Soni, Former Director (Offshore), ONGC and Shri Ashok Anand, Former Director (Per), Oil India Ltd also attended it. The workshop was divided into 4 sessions i.e. 2 sessions before lunch and 2 sessions in the afternoon.
2. Dr. Jauhari lal, President MLDC and Former Director(HR), ONGC & Oil India Ltd. brought out briefly the objectives of the workshop as follows:-
• Understand the provisions and implications of the DPE guidelines issued vide their Office Memorandum No.2 (81)/08-DPE (WC)-GL-XVI/ 2009 dated 8 July 2009.
• Sharing of information by PSUs on the status of implementing the above guidelines.
• Options available to PSUs for medical facilities to retired employees.
• Understanding “emergency needs” of retired employees as stipulated in the guidelines.
• Formation of a model Scheme for creation of corpus.
• Strategy for honoring the DPE guidelines.
3. Shri Rajendra Kumar, Director, DPE made a presentation on “Welfare Steps for Retired Employees of CPSEs”. In his presentation he brought out the following points:-
• 2nd pay revision committee met retired CPSEs executives including the All India Non-Pensioned Cum Senior Citizens Retirees’ Association, Bangalore.
The committee observed that while a few CPSEs provided post retirement medical benefit, most of the retired executives had no access to medical benefits.
Committee recommended up to 30% of basic pay towards superannuation benefit after providing for PF and gratuity a buffer available for pension and/or post retirement medical benefits. This was available only for those who superannuated after 15 years of service in a CPSE.
Corpus from 1 to 1.5% of PBT be created by CPSEs for medical and any other emergency needs for retired executives and also those who were not adequately covered by a pension scheme.
4. He further pointed out that the recommendations of the committee were circulated and suggestions were sought regarding feasibility and methodology of operationalising them. However DPE could receive only two responses without any specific comments. Subsequently these guidelines were issued. Creation of corpus was provided for benefit of those who had no support system like pension or medical benefit scheme. However for those retiring after 01.01.07, superannuation benefits up to 30% of basic pay + DA was provided which included CPF, Gratuity, Pension and Post Superannuation medical benefits. He further stated that CPSEs should make their own schemes to manage the fund or to operate through insurance companies.
5. With regard to OM dated 8th July, 2009, Shri Rajendra Kumar clarified that the schemes were to be formulated only where need was felt to take care of medical and any other emergency needs for those not covered by the pension scheme and / or post superannuation medical benefit scheme. Guidelines provided that not more than 1.5% of the PBT of previous year and even may be less depending on requirement to be earmarked for creating the corpus. Guidelines further provided for constituting a committee of Directors for deciding on distribution of funds and identifying areas of medical and emergency needs. However, there would be no budgetary support from the Government. The CPSEs would submit their proposals of the scheme to their respective Ministry/Department for approval. Sh.Rajendra Kumar mentioned that as per his knowledge, no CPSE had framed any scheme. However, some CPSEs had started framing the scheme to replace / supplement the existing scheme and they were considering paying a monthly amount to meet medical and emergency needs. He further clarified that the intention should not be to exhaust the funds but to provide for a reasonable support for medical or emergency requirements and the contribution might be flexible depending upon the CPSEs PBT.
6. Dr.Nitish Sen Gupta Chairman, BRPSE, Secretary to Govt. of India (retired) and Former M.P. and Director, IMI who was the Member of the 2nd PRC mentioned about his experiences of meeting the representatives including the retired employees of the CPSE’s. He admitted that the plight of a large number of retired employees was really pitiable. The committee was moved after listening to their woes and made these recommendations. He further mentioned that the recommendations of this PRC were quite different from the past PRC’s. It brought the culture of compensation linked with profitability of an organization and de-linked from the Govt. pay scale structure. The recommendations of medical benefits to the retired employees were also unique. He felt sorry that no CPSE had formulated the scheme as per DPE guidelines. He said these were very important guidelines and emphasized that the money was not a constraint is a will, there is a way” and these guidelines were to be read between the lines and with the right spirit. He suggested that companies should get together and evolve suitable systems. He emphasized that there was urgent need that DPE should ensure that these guidelines were implemented. He suggested that this issue needed to be taken to the level of Secretary, DPE and even with the Honorable Minister.
7. Dr.U.D. Choubey DG, SCOPE and former CMD, GAIL in his special address traced the history of formation of Public Sector undertakings and its concept. These were created basically to modernize the process of industrialization of Indian economy in its various facets and also to reach the remotest and the most backward areas of the country for development. These were called as “Commanding heights and Modern temples of India”. The PSUs had made major contribution in the socio-economic development of the Country. PSUs at one time had 24 lakh employees which reduced to 15 lakh at present. It is because of their contribution, PSUs were now christened as Mini-Ratna, Nav-Ratna and Maha-Ratna companies. At present companies were contributing about Rs.100,000 crores as net profit every year and also contribute to Government every year as dividend. Because of profitability, about Rs.90,000 crores had been realized by the Government by way of disinvestment of PSUs.
8. Dr Choubey added that in view of the commitment and contribution made by the employees of CPSEs in the formative years, these companies were now the pride of the Nation. Therefore, social security of retired employees was not only an obligation but responsibility of the concerned PSU and also the Government. He suggested that the corpus at the national level could be created by contributing 0.1% every year of the net profit of PSUs. This could take care of the medical needs of the retired employees of CPSUs which were unable to meet their medical expenses because of their financial constraints. He recalled that a number of PSUs including GAIL had formulated medical schemes which were at par with the serving employees. DPE should come out with such a mandatory provision. He assured that the SCOPE would carry forward this issue with the higher Government level for equality and justice.
9. During the course of subsequent discussions / interactions with the panel speakers and the participants, the following points were highlighted:
• Retired employees are not to be viewed as wasted asset but as reserve and reservoir of valuable talent and experience on call at any time by the Govt or the CPSUs
• It was unfair to employ differential concepts between the status of retired Govt employees and the CPSU retired employees.
• The Supreme Court of India has held in number of decisions that CPSUs fall within the inclusive definition of ‘State’.
• The Supreme Court has also held that the power of the Govt. in the grant of any benefit should be structured by rational, relevant and non-discriminatory norms
• Retirement benefits in whatever form are deferred wage in consideration of past service rendered sacrificing the prime of youth for the sake of the Govt. (CPSU) and the benefit should be such that the retired employee is able to lead a dignified life maintaining, as far as possible, the standard of living he was used to during his service life.
• The Apex Court has held that classification of retired employees for the purpose of retirement benefits should comply with article 14 of the Constitution.
• Insistence on a minimum of 15 years of service in a CPSU is further discriminatory in as much as employees move from Govt. to CPSU or from one CPSU to another only to serve the larger interests of the Govt. and by the selection process of the Govt.
• The DPE guidelines provide for the retired employees of only profit making companies. There are no guidelines for those employees of PSUs which do not have PBT.
• The employees, per se, cannot be held responsible for the losses. There were many external reasons beyond their control.
• Nevertheless Financial position of many of such companies is fast improving by way of “Turn around” strategies and measures.
• The DPE guidelines are vague on the term “any emergency needs”.
• Emergency needs may differ from person to person and place to place. Companies like SAIL, Coal India Ltd., BHEL having a large number of retired employees settled all over India will find it impossible to access the emergency needs of an individual. No company can create an establishment for this purpose. Moreover, this will lead to subjectivity.
• The guidelines are not mandatory in nature and implementation is left to the discretion of the PSU management. The provision that the scheme may be set up where a need is felt is subjective in nature and is vulnerable to grossly discriminatory interpretations.
• That no PSU has set up any scheme, demonstrates that either there is too much “vagueness” in the guidelines or there is sheer apathy in the PSU management or both.
• This issue has to be seen in a larger perspective. This is an important issue of “social security” for which both the government and the concerned CPSUs have congruent responsibility.
• Social security scheme particularly the medical scheme and the financial assistance after retirement are motivational for retention of talents in the core disciplines and core sectors in this era of competitive environment. There are enough examples of European, Canadian and American companies for ensuring “social security” of its retired employees.
• Banking industry is very considerate to its retired employees and has given the second option to its retired employees to join the pension scheme.
• A large majority of employees who retired 5,10 or 15 years back received meager superannuation benefits by way of CPF, gratuity etc. and their financial position is miserable in the absence of any financial help from their own organization or Government.
• Guidelines talk about meeting ‘emergency needs’ which presumably are to meet the basic physical need of at least two square meals a day, clothing and toiletries for two persons and reasonable living accommodation and social needs for a decent living.
Conclusions and Recommendations
In the light of discussion, interaction and deliberations the following conclusions and recommendations were drawn.
It was understood that these recommendations could, for the time being, be only within the confines of the DPE guidelines promulgated so far and the review of the guidelines within a larger frame of greater fairness and equity would have to be taken up separately.
1. The CPSUs could be divided into 3 categories for the above purpose :-
a) Maharatna, Navaratna and Miniratna companies which have annual PBT from which 1-1.5% could be earmarked towards the corpus.
b) Other profit making PSUs
c) Loss making PSUs
THE RATNA GROUP
1) Provide medical assistance on par with serving employees of equivalent designations
2) Make an ex-gratia payment as near the 30% of the minimum of the current pay attached to the designation at which the employee had retired or its present equivalent to meet the other emergency needs of the employee. This payment calculated monthly may be paid every quarter. The surviving spouse to be eligible for half of this amount. Additionally DA to be paid at prevailing rates.
3) This payment will be made from the corpus created out of the 1-1.5% of the PBT. This may be decided based on the fund available in the corpus. The Scheme so formulated by the Company will be reviewed periodically to ensure its viability.
4) The Corpus to be managed by a Trust consisting of Director (Finance) as Chairman, Director (HR), another serving Director, two senior retired employees not lower than the level of General Manager. The Trust will ensure that sufficient contingent reserves are held at any given time.
THE NON RATNA GROUP
1) The Board to determine the percentage of PBT to be transferred to the Corpus
2) Provide, on priority, medical assistance on par with serving employees
3) Make ex-gratia payment to meet the minimum needs of the employee to live a life of dignity which will also bring a fair name to the PSU for its care and concern for the pioneers and foundation makers
4) The Corpus to be administered in the same manner as above.
THE LOSS MAKING GROUP
Same action as for the Non Ratna Group as above.
Sources for fund may be as follows:
DPE CORPUS
It is suggested that from out of the total dividends received by the Govt from the PSUs, 1% should be set aside as a Special Reserve to fund the needs of the retired employees of the Loss Making Group and also the needs of the other groups in the unlikely event of extraordinary circumstances.
Similarly 1% of the amount realized by the Govt by way of disinvestment of PSUs may be transferred to this Trust.
This Special Reserve should be administered jointly by the DPE and SCOPE.
(R.P. Singh)
Wednesday, October 26, 2011
ONGC, OIL suppress figures, Assam loses Rs 865.99 crore: CAG
ONGC, OIL suppress figures, Assam loses Rs 865.99 crore: CAG
Assam has lost at least Rs 865.99 crore as royalty from ONGC and Oil India Ltd (OIL) in a span of five years, as a result of suppression of production figures by the oil companies, according to a Comptroller and Auditor General (CAG) report.
The report on the Assam government’s revenue receipts for the year ending March 2010, which was placed in the state assembly on Wednesday, has also blamed the failure of the government to enforce payments. Out of the total loss, CAG said that OIL alone accounted for revenue losses to the tune of Rs 634.94 crore, while ONGC accounted for Rs 215.12 crore. The state government was also deprived of Rs 10.48 crore as it failed to claim the sum as “differential royalty” from the Oil Industry Development Board (OIDB).
In the five-year period from April 2004 to March 2009, OIL suppressed its production figures of crude oil and condensate to the tune of 2.27 kilolitres , and the revenue lost amounted to Rs 72.40 crore. OIL also suppressed gas production figures leading to a loss of Rs 49.40 crore.
Assam has lost at least Rs 865.99 crore as royalty from ONGC and Oil India Ltd (OIL) in a span of five years, as a result of suppression of production figures by the oil companies, according to a Comptroller and Auditor General (CAG) report.
The report on the Assam government’s revenue receipts for the year ending March 2010, which was placed in the state assembly on Wednesday, has also blamed the failure of the government to enforce payments. Out of the total loss, CAG said that OIL alone accounted for revenue losses to the tune of Rs 634.94 crore, while ONGC accounted for Rs 215.12 crore. The state government was also deprived of Rs 10.48 crore as it failed to claim the sum as “differential royalty” from the Oil Industry Development Board (OIDB).
In the five-year period from April 2004 to March 2009, OIL suppressed its production figures of crude oil and condensate to the tune of 2.27 kilolitres , and the revenue lost amounted to Rs 72.40 crore. OIL also suppressed gas production figures leading to a loss of Rs 49.40 crore.
After CAG, oil sector under CBI scanner
India | Updated Jun 14, 2011 at 08:39pm IST
After CAG, oil sector under CBI scanner
Meetu Jain, CNN-IBN
New Delhi: The CBI on Tuesday stepped in to investigate the alleged flouting of policy by Mukesh Ambani led Reliance Industries Limited(RIL). Irregularities in the policy were highlighted in the draft in the Comptroller Auditor General (CAG) Report leaked to the media on Monday.
CNN-IBN gained access to the CBI documents which asked the Oil Ministry to send across files related to the KG D6 oil fields.
The CBI has, now, asked for files relating to approvals to RIL for increasing its capital expenditure from $ 2.4 billion to $ 8.8 billion.
The CBI is also looking at files relating to the vigilance inquiry against former DG Hydrocarbons, V K Sibal.
The investigative agency is probing why the exploration period was extended beyond original schedule for both RIL and ONGC.
The CAG in its report said that the government had favoured Mukesh Ambani's RIL and two other oil exploring companies.
The CAG report also mentioned that the oil ministry and its regulatory arm - the Directorate General of Hydrocarbons (DGH) - allegedly favoured at least three explorers.
The report alleged that the government allowed Ambani's RIL to violate terms of its contract with the government for exploration in the Krishna-Godavari basin.
This was the first ever audit of private sector participation in the oil sector.
The CAG report also stated that the Directorate General of Hydrocarbons had allowed RIL to violate norms.
The violation of terms, in turn, helped RIL increase its capital expenditure plan to start production from the Krisha-Godavari basin. Sources say that 70 per cent of the draft CAG report is devoted to RIL alone.
The premier auditor, whose report will be tabled in Parliament after incorporating comments from the Oil Ministry, said Reliance never had intention of developing the KG-D6 gas fields as per the initial cost estimates as it did not initiate tendering for equipment as per the original plan.
"Most procurement activities were undertaken late, in line with the schedules of the IDP of May, 2004, clearly evidencing that the operator had no intention of complying with these timelines," the draft report said.
"By contrast, activities in respect of items in the AIDP were initiated even before the submission/approval of the AIDP," it said.
The CAG said the submission of an addendum to the initial development plan (IDP) instead of a revised comprehensive development plan, as well as lack of adequate details with regard to the Phase-II development cost of $ 3.3 billion, made it virtually certain that the operator will submit more addendums.
"The DGH also approved the AIDP, without questioning why the operator did not take action in-line with the already approved IDP," it said.
The report also said that the ministry and DGH allowed Reliance to enter successive exploration phases without the stipulated relinquishment of area and then allowed it to declare the entire contract area as "discovery area".
This was both "irregular and incorrect", since drilling of wells and consequential discoveries had not taken place in the major portion of the contract area, the CAG said.
"We recommend that government should re-examine delineation of the entire contract area as 'discovery area' and take immediate steps for relinquishment of excess area in line with the provisions of the PSC, as also fix accountability for those responsible for this decision," it
said.
The CAG said the benefit granted to Reliance is huge, but cannot be quantified. It also found a "similar irregular determination of the entire contract area" as 'discovery area' in the case of another block operated by Reliance, dubbed KG-OSN-2001/2.
The CAG's scope of audit covers the Production Sharing Contract (PSC) in respect of the KG-DWN-98/3 (KG-D6) block awarded to Reliance for two financial years - 2006-07 and 2007-08 - with access to the records of previous years linked to the transactions of these years.
With additional information from PTI
(
After CAG, oil sector under CBI scanner
Meetu Jain, CNN-IBN
New Delhi: The CBI on Tuesday stepped in to investigate the alleged flouting of policy by Mukesh Ambani led Reliance Industries Limited(RIL). Irregularities in the policy were highlighted in the draft in the Comptroller Auditor General (CAG) Report leaked to the media on Monday.
CNN-IBN gained access to the CBI documents which asked the Oil Ministry to send across files related to the KG D6 oil fields.
The CBI has, now, asked for files relating to approvals to RIL for increasing its capital expenditure from $ 2.4 billion to $ 8.8 billion.
The CBI is also looking at files relating to the vigilance inquiry against former DG Hydrocarbons, V K Sibal.
The investigative agency is probing why the exploration period was extended beyond original schedule for both RIL and ONGC.
The CAG in its report said that the government had favoured Mukesh Ambani's RIL and two other oil exploring companies.
The CAG report also mentioned that the oil ministry and its regulatory arm - the Directorate General of Hydrocarbons (DGH) - allegedly favoured at least three explorers.
The report alleged that the government allowed Ambani's RIL to violate terms of its contract with the government for exploration in the Krishna-Godavari basin.
This was the first ever audit of private sector participation in the oil sector.
The CAG report also stated that the Directorate General of Hydrocarbons had allowed RIL to violate norms.
The violation of terms, in turn, helped RIL increase its capital expenditure plan to start production from the Krisha-Godavari basin. Sources say that 70 per cent of the draft CAG report is devoted to RIL alone.
The premier auditor, whose report will be tabled in Parliament after incorporating comments from the Oil Ministry, said Reliance never had intention of developing the KG-D6 gas fields as per the initial cost estimates as it did not initiate tendering for equipment as per the original plan.
"Most procurement activities were undertaken late, in line with the schedules of the IDP of May, 2004, clearly evidencing that the operator had no intention of complying with these timelines," the draft report said.
"By contrast, activities in respect of items in the AIDP were initiated even before the submission/approval of the AIDP," it said.
The CAG said the submission of an addendum to the initial development plan (IDP) instead of a revised comprehensive development plan, as well as lack of adequate details with regard to the Phase-II development cost of $ 3.3 billion, made it virtually certain that the operator will submit more addendums.
"The DGH also approved the AIDP, without questioning why the operator did not take action in-line with the already approved IDP," it said.
The report also said that the ministry and DGH allowed Reliance to enter successive exploration phases without the stipulated relinquishment of area and then allowed it to declare the entire contract area as "discovery area".
This was both "irregular and incorrect", since drilling of wells and consequential discoveries had not taken place in the major portion of the contract area, the CAG said.
"We recommend that government should re-examine delineation of the entire contract area as 'discovery area' and take immediate steps for relinquishment of excess area in line with the provisions of the PSC, as also fix accountability for those responsible for this decision," it
said.
The CAG said the benefit granted to Reliance is huge, but cannot be quantified. It also found a "similar irregular determination of the entire contract area" as 'discovery area' in the case of another block operated by Reliance, dubbed KG-OSN-2001/2.
The CAG's scope of audit covers the Production Sharing Contract (PSC) in respect of the KG-DWN-98/3 (KG-D6) block awarded to Reliance for two financial years - 2006-07 and 2007-08 - with access to the records of previous years linked to the transactions of these years.
With additional information from PTI
(
KG-D6 Cost Lower Than GSPC, ONGC Projects: RIL
15 Jul 2011
KG-D6 Cost Lower Than GSPC, ONGC Projects: RIL
Reliance said the allegations that government revenue interests have been affected by the 'gold-plating' are completely false
Reliance Industries has said its eastern offshore KG-D6 gas field development cost is much less than what Gujarat government company GSPC and state-owned ONGC are spending on projects in the vicinity of its KG basin find.
Reliance had in 2004 proposed a $2.4 billion investment for producing 40 million cubic metres per day of gas from 5.32 trillion cubic feet of reserves in the D1/D3 fields of the KG-D6 block. Later, in 2006, it revised the capital expenditure requirement to $5.2 billion in Phase-I for producing a higher 80 mmscmd of gas from 11.3 tcf of reserves.
Replying to a draft audit report of the CAG, which said that the increase in field cost would mean a lower profit take for the government, Reliance said, "It has set a benchmark for the lowest project costs across the world."
Its cost estimates for producing gas from the deepsea KG-D6 block are the lowest even in comparison to shallow water projects.
"Oil and Natural Gas Corp's block KG-D5 in vicinity, with a discovery made in 2001, has 1.9 tcf of gas reserves with an estimated development cost of $7.7 billion, for which a development plan is under preparation.
"Gujarat State Petroleum Corp's (GSPC) shallow water block in the same basin, which had a discovery in 2003, is estimated to cost $2 billion to develop 1.4 tcf," it said.
ONGC's KG-D5 block sits next to Reliance's KG-D6 area, where the first discovery was made in 2002. While Reliance took six years to bring KG-D6 gas on to production, even after 10 years of the first discovery, ONGC has not yet been able to put together a development plan.
Reliance said the allegations that government revenue interests have been affected by the 'gold-plating' are completely false. The New Exploration Licencing Policy, under which Reliance had won the KG-D6 block in 2000, brought an end to the 'cost plus regime', where firms got a fixed return on all the capital they invested.
Under NELP, a contractor like Reliance "never benefits by an increase in costs," it said, adding it was imperative to view the revenue interest of the government from the point of view of the contribution of the project to the nation.
"Needless to say, inspite of all the noise, the draft CAG report has found nothing to suggest that Reliance indulged in 'gold-plating' viz that Reliance placed orders on its own affiliates at inflated costs or that payments made to vendors came back to Reliance," the voluminous 250-page response said.
After an extensive and detailed audit process, in which eight CAG officials spent six months on Reliance premises, "CAG does not state that any evidence exists to support any case that the contract cost has been dishonestly inflated."
KG-D6 Cost Lower Than GSPC, ONGC Projects: RIL
Reliance said the allegations that government revenue interests have been affected by the 'gold-plating' are completely false
Reliance Industries has said its eastern offshore KG-D6 gas field development cost is much less than what Gujarat government company GSPC and state-owned ONGC are spending on projects in the vicinity of its KG basin find.
Reliance had in 2004 proposed a $2.4 billion investment for producing 40 million cubic metres per day of gas from 5.32 trillion cubic feet of reserves in the D1/D3 fields of the KG-D6 block. Later, in 2006, it revised the capital expenditure requirement to $5.2 billion in Phase-I for producing a higher 80 mmscmd of gas from 11.3 tcf of reserves.
Replying to a draft audit report of the CAG, which said that the increase in field cost would mean a lower profit take for the government, Reliance said, "It has set a benchmark for the lowest project costs across the world."
Its cost estimates for producing gas from the deepsea KG-D6 block are the lowest even in comparison to shallow water projects.
"Oil and Natural Gas Corp's block KG-D5 in vicinity, with a discovery made in 2001, has 1.9 tcf of gas reserves with an estimated development cost of $7.7 billion, for which a development plan is under preparation.
"Gujarat State Petroleum Corp's (GSPC) shallow water block in the same basin, which had a discovery in 2003, is estimated to cost $2 billion to develop 1.4 tcf," it said.
ONGC's KG-D5 block sits next to Reliance's KG-D6 area, where the first discovery was made in 2002. While Reliance took six years to bring KG-D6 gas on to production, even after 10 years of the first discovery, ONGC has not yet been able to put together a development plan.
Reliance said the allegations that government revenue interests have been affected by the 'gold-plating' are completely false. The New Exploration Licencing Policy, under which Reliance had won the KG-D6 block in 2000, brought an end to the 'cost plus regime', where firms got a fixed return on all the capital they invested.
Under NELP, a contractor like Reliance "never benefits by an increase in costs," it said, adding it was imperative to view the revenue interest of the government from the point of view of the contribution of the project to the nation.
"Needless to say, inspite of all the noise, the draft CAG report has found nothing to suggest that Reliance indulged in 'gold-plating' viz that Reliance placed orders on its own affiliates at inflated costs or that payments made to vendors came back to Reliance," the voluminous 250-page response said.
After an extensive and detailed audit process, in which eight CAG officials spent six months on Reliance premises, "CAG does not state that any evidence exists to support any case that the contract cost has been dishonestly inflated."
Government policies man hurdle in implementation of corporate governance by PSUs
Government policies man hurdle in implementation of corporate governance by PSUs
Even as the Union Cabinet on Thursday made it mandatory for public sector undertakings (PSUs) to follow corporate governance norms, senior executives of blue chip PSUs point out that it is the government itself that has been posing hurdles in the implementation of these rules.
Senior executives of public sector energy major GAIL disclosed that the company management had run into trouble with market watchdog Securities and Exchange Board of India (Sebi) for not appointing the required number of independent directors on its board because the proposal had been held up by the ministry.
GAIL had to furnish its communication with the ministry of petroleum and natural gas to prove that it was the government and not the company management that was responsible for the delay in appointment of independent directors.
Sebi eventually concluded that it was a case of a “sad travesty of the law by the government of India… and as it’s not the company but the major shareholder (government), which is the culprit”. Similarly Oil and Natural Gas Corp (ONGC) officials point out that although the oil giant is a listed company, the government has an ad hoc mechanism for forcing it to compensate the downstream oil companies – Indian Oil Corp Ltd (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) – for revenue loss on the sale of petroleum products sold below market price due to the government’s political compulsions.
Senior ONGC officials are of the view that this is not fair to the shareholders and if the government wants to pay such compensation in the national interest, it should to be done on the basis of a concrete formula.
Besides, the price that ONGC gets for its natural gas is less than half of what the private companies rake in and the government has been dragging its feet on the proposal for raising the price to a more reasonable level. ONGC has been losing Rs 3,000 crore every year as a result of this low price.
While the petroleum ministry has been in favour of increasing the price, the power and fertiliser ministries have been opposed to the proposal as it would lead to an increase in the cost of production for power plants that sell electricity at regulated prices and the fertiliser subsidy would also go up.
Natural gas is used as a fuel by power plants and as a feedstock for manufacturing fertilisers.
Executives of the downstream oil companies, such as IOC, BPCL and HPCL also hold the grouse that the government has not been allowing them to raise the prices of petroleum products to bring them at par with market prices due to political reasons and this has eroded their profits.
Even the partial compensation that they receive from the government does not come in time, which makes it difficult to manage their books since they have to prepare their financial results every quarter like the other listed companies.
Senior public sector executives are also of the view that independent directors must be appointed by the government on managerial merit rather than on the basis of political connections, which turns out to be counter- productive.
As far as the emphasis on audit in the new corporate governance norms is concerned, senior executives say the public sector companies are already subject to stringent audit by the Comptroller and Auditor General of India (CAG), whose report is tabled in Parliament.
Besides, public sector companies fall under the watchful eye of the Central Vigilance Commissioner (CVC) and the Central Bureau of Investigation ( CBI). “The fear of these three Cs (CAG, CVC and CBI), in fact, often cramps the decision making of public sector enterprises,” a senior executive remarked.
Governance a distant dream for PSU:
GAIL management had run into trouble with Sebi for not appointing the required number of independent directors on its board because the proposal had been held up by the ministry.
Although ONGC is a listed co, the govt has an ad hoc policy for forcing it to compensate the downstream oil cos for revenue loss on the sale of petro products sold below the market price due to the govt’s political compulsions.
Executives of IOC, BPCL and HPCL also hold the grouse that the govt has not been allowing them to raise the prices of petroleum products to bring them at par with market prices due to political reasons.
Senior PSU staff also feel the independent directors must be appointed by the govt on managerial merit rather than on the basis of political connections, which turns out to be counter- productive.
As far as the emphasis on audit in the new corporate governance norms is concerned, senior executives say public sector companies are already under the stringent scanners of the three ‘ C’s – CAG, CVC & CBI. CORP
Even as the Union Cabinet on Thursday made it mandatory for public sector undertakings (PSUs) to follow corporate governance norms, senior executives of blue chip PSUs point out that it is the government itself that has been posing hurdles in the implementation of these rules.
Senior executives of public sector energy major GAIL disclosed that the company management had run into trouble with market watchdog Securities and Exchange Board of India (Sebi) for not appointing the required number of independent directors on its board because the proposal had been held up by the ministry.
GAIL had to furnish its communication with the ministry of petroleum and natural gas to prove that it was the government and not the company management that was responsible for the delay in appointment of independent directors.
Sebi eventually concluded that it was a case of a “sad travesty of the law by the government of India… and as it’s not the company but the major shareholder (government), which is the culprit”. Similarly Oil and Natural Gas Corp (ONGC) officials point out that although the oil giant is a listed company, the government has an ad hoc mechanism for forcing it to compensate the downstream oil companies – Indian Oil Corp Ltd (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) – for revenue loss on the sale of petroleum products sold below market price due to the government’s political compulsions.
Senior ONGC officials are of the view that this is not fair to the shareholders and if the government wants to pay such compensation in the national interest, it should to be done on the basis of a concrete formula.
Besides, the price that ONGC gets for its natural gas is less than half of what the private companies rake in and the government has been dragging its feet on the proposal for raising the price to a more reasonable level. ONGC has been losing Rs 3,000 crore every year as a result of this low price.
While the petroleum ministry has been in favour of increasing the price, the power and fertiliser ministries have been opposed to the proposal as it would lead to an increase in the cost of production for power plants that sell electricity at regulated prices and the fertiliser subsidy would also go up.
Natural gas is used as a fuel by power plants and as a feedstock for manufacturing fertilisers.
Executives of the downstream oil companies, such as IOC, BPCL and HPCL also hold the grouse that the government has not been allowing them to raise the prices of petroleum products to bring them at par with market prices due to political reasons and this has eroded their profits.
Even the partial compensation that they receive from the government does not come in time, which makes it difficult to manage their books since they have to prepare their financial results every quarter like the other listed companies.
Senior public sector executives are also of the view that independent directors must be appointed by the government on managerial merit rather than on the basis of political connections, which turns out to be counter- productive.
As far as the emphasis on audit in the new corporate governance norms is concerned, senior executives say the public sector companies are already subject to stringent audit by the Comptroller and Auditor General of India (CAG), whose report is tabled in Parliament.
Besides, public sector companies fall under the watchful eye of the Central Vigilance Commissioner (CVC) and the Central Bureau of Investigation ( CBI). “The fear of these three Cs (CAG, CVC and CBI), in fact, often cramps the decision making of public sector enterprises,” a senior executive remarked.
Governance a distant dream for PSU:
GAIL management had run into trouble with Sebi for not appointing the required number of independent directors on its board because the proposal had been held up by the ministry.
Although ONGC is a listed co, the govt has an ad hoc policy for forcing it to compensate the downstream oil cos for revenue loss on the sale of petro products sold below the market price due to the govt’s political compulsions.
Executives of IOC, BPCL and HPCL also hold the grouse that the govt has not been allowing them to raise the prices of petroleum products to bring them at par with market prices due to political reasons.
Senior PSU staff also feel the independent directors must be appointed by the govt on managerial merit rather than on the basis of political connections, which turns out to be counter- productive.
As far as the emphasis on audit in the new corporate governance norms is concerned, senior executives say public sector companies are already under the stringent scanners of the three ‘ C’s – CAG, CVC & CBI. CORP
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