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Flash News : Non-Productivity Linked Bonus (Ad-hoc Bonus) to the CG Employees - Finmin Orders

FAQ on Specified Bank Notes – Emergency needs of cash then what I should do?

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FAQ on Specified Bank Notes – Emergency needs of cash then what I should do?

I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?

Till the December 15, 2016, specified banknotes of only 500 denomination can be used as under:—

(a) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor’s prescription;

(b) at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses and airline ticketing counters at airports for purchase of tickets;

(c) for purchases at consumer cooperative stores operated under authorisation of Central or State Governments and the customers shall provide their identity proof; However, the purchase from Consumer Cooperative Stores will be limited to ₹ 5000 at a time;

(d) for purchase at milk booths operating under authorisation of the Central or State Governments;

(e) for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil and Gas Marketing Companies;

(f) for payments at crematoria and burial grounds;

(g) for making payments in all pharmacies on production of doctor’s prescription and proof of identity;

(h) for payments on purchases LPG gas cylinders;

(i) for making payments to catering services on board, during travel by rail;

(j) for making payments for purchasing tickets for travel by suburban and metro rail services;

(k) for making payments for purchase of entry tickets for any monument maintained by the Archaeological Survey of India.

(l) for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;

(m) for making payments towards utility charges for water and electricity only. -which shall be restricted to individuals or households for payment of only arrears or current charges. No advance payments shall be allowed

(n) for payments towards court fees

(o) for making payments towards purchase of seeds from the centres, units or outlets belonging to the Central or State Governments, Public Sector Undertakings, National or State Seeds Corporations, Central or State Agricultural Universities and the Indian Council of Agricultural Research, on production of proof of identity: Provided that for the purposes of this clause, specified bank notes shall mean bank notes of the denominational value of five hundred rupees

(p) Payment of School fees up to ₹ 2000 per student in Central Government, State Government, Municipality and local body schools;

(q) Payment of fees in Central or State Government colleges;

(r) Payments towards pre- paid mobile top-up to a limit of ₹ 500 per top-up

(s) Toll payment at these toll plazas of the Ministry of Road Transport and Highways may be made through old ₹ 500 notes from 3.12.2016 to 15.12.2016 (as they have continued the toll free arrangement up to 2.12.2016)

Authority: www.rbi.org.in

Submission of Pre-budget Views of Central Government employees - Confederation

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Submission of Pre-budget Views of Central Government employees for consideration and inclusion in the Central Budget for the year 2017-18 – Request – Regarding
REF: CONFDN/BUDGET/2016-17 
DATED - ....-12-2016
To,
Shri. Arun Jaitley,
Hon’ble Finance Minister,
Government of India,
North Block, New Delhi -110001

Sub: - Submission of Pre-budget Views of Central Government employees for consideration and inclusion in the Central Budget for the year 2017-18 – Request – Regarding.

Respected Sir,

Confederation of Central Government Employees and Workers is the umbrella organization comprising of various Unions/Associations/Federations of the Central Government employees. Central Government employees are the important segment of the society and contributing for the growth of this country through effective implementation of the policies of the Government of India. Hence, the views of this segment of important stakeholders, I submit, may also be heard and considered. With this request, this organization is bringing the following views for consideration by your good self, as a part of the pre-budget exercise to finalize the budget for the year 2017-18.

Issues of the Central Government employees:

1. New Pension Scheme: Lakhs of employees who joined the Central Government Departments on or after 01-04-2004 are vulnerable to the market fluctuations due to the NPS. It has been pleaded several times to scrap this NPS or grant guarantee of minimum pension at the rate of 50% of last pay drawn. It is requested to concede this request in this budget by making required amendments.

2. Income Tax: It is submitted that Government employees are the most tax compliant segment of the society. At the same time they are the hard hit with heavy tax burden. For many years it is requested to raise the tax exemption limit. It is requested to consider increasing the tax exemption limit for employees to Rs. 5,00,000/-. It is also requested not to include the compensatory allowances in the taxable income.

3. Interest concession on loans and advances: Nationalized Banks are extending housing loans, personal loans for their employees at a lesser rate than the market rate. This facility may also be extended to the Central Government employees.

4. Education loans to the Children of the Central Government employees: In the present set up no bank is giving education loans for pursuing higher studies without keeping immovable property as collateral security. One has to cross many hassles for obtaining education loan for his ward. It is requested that education loan for the ward of a Central Government employee should be hassle free and without any guarantee or collateral security except the employee himself/herself. The total loan should cover the entire fee and living expenses without any restrictions.

5. Minimum Wage & Fitment formula: The minimum wage of Rs.18000/- recommended by 7th CPC is needed to be revised to Rs.26000/- to confirm to the realistic and accepted norms of the wage determination. Accordingly the fitment factor should also be proportionately changed.

6. Curtailment of litigation: Presently due to the policy of DOP&T the Central Government employees are forced to engage in avoidable litigation in the Courts of Law, even on those similar Service matters, which were decided by the Highest Court of the Land. This is resulting in lot of expenditure of Government employees. The judgments of the Courts should be applied to all the similarly placed employees without forcing them to file cases on the very matter.

7. Compassionate appointments: The eligible wards of the employees who died in harness should be given employment by removing the present artificial ceiling of 5% on such employment.

8. Housing needs of the employees working in N.E and Assam Circles: The employees working in these States are facing hardship due to lack of housing facilities. Hence, it is requested to construct more General Pool Resident staff quarters for all the Central Government employees working in N.E. and Assam regions.

9. It is also requested that cash less and Hassle free Medical facilities to serving and retired employees for in-patient and out-patient may also be favourably considered.

General Issues:

Central Trade Unions in their Memorandum dated 19-11-2016 has brought several issues like price raise, strengthening the Public Distribution System, safeguarding the Public Sector, Foreign Direct Investment, employment generation, Same Pay for Same Work, Social Security for unorganized workers, Labour Law Reforms, regularization of Contract and Casual Labour, which has a bearing on the lives of the common masses, employees and workers. This Federation completely endorses their viewpoint on these important issues and requests you to kindly initiate necessary corrective steps in this Budget.

It is earnestly requested to seriously consider the above suggestions for inclusion in the Budget for the year 2017-18, which will go a long way in fulfilling the long pending aspirations of the Central Government employees.

Thanking you,

Yours Sincerely,
(M. Krishnan)
Secretary General
Mob:09447068125
E-mail: mkrishnan6854@gmail.com

Source: 

Processing of Pension cases mandatorily through Bhavishya (Online Pension Sanction & Payment Tracking System)

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Processing of Pension cases mandatorily through Bhavishya (Online Pension Sanction & Payment Tracking System) w.e.f 01/01/2017 - reg.

No. 55/14/2014/P&PW(C)Part-1
Government of India
Ministry of Personnel, Public Grievances and Pension
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi
Dated: 29th November, 2016
OFFICE MEMEORANDUM

Sub: Processing of Pension cases mandatorily through Bhavishya (Online Pension Sanction & Payment Tracking System) w.e.f 01/01/2017 - reg.
Department of Pension and Pensioners’ Welfare is responsible for formulation of policy and coordination of matters relating to pension policy and welfare of Central Government pensioners. It has been seen that despite detailed guidelines and instructions to the contrary a large proportion of retiring employees do not get their retirement benefits and the Pension Payment Order(PPO) in time. It is likey that such retired employees find it difficult to get the process completed after retirement. The sanction process starts more than a year before the date of retirement and requires cooperation amongst various agencies. This department has, therefore, launched Bhavishya – an online pension sanction and payment tracking system. The system by keeping track of the progress of each case introduces transparency and accountability. Both the retiring employees as well as administrative authorities can monitor progress at each stage.

2.The system has been running successfully in the main Secretariat of all ministries/departments for the last one year. It has since been extended to cover over 3000 Drawing and Disbursing Officers and Pay and Account Offices from various ministries/departments and their attached offices.

3.It has now been decided that all Heads of Offices will henceforth mandatorily process all pension cases only through Bhavishya. In this, where necessary, they will assist the retiring employee to submit the online application form. The Pay and Accounts Offices will process cases generated through Bhavishya through the pension module in COMPACT till the Public Financial Management System (PFMS) is made operational and integrated with Bhavishya.

4.It is to be noted that all authorities will strictly follow the timelines prescribed under the CCS(Pension) Rules and in no case will the pension case be delayed on account of electronic processing through Bhavishya.

5.These instructions take effect from 1st January, 2017.

6.This issues with the approval of competent authority.

sd/-
(Seema Gupta)
Director

Authority: http://persmin.gov.in/pension.asp

Brief of the meeting held on 28.11.2016 with the Committee on Allowances

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Brief of the meeting held on 28.11.2016 with the Committee on Allowances

ALL INDIA RAILWAYMEN'S FEDERATION
(Estd, 1924)
4,State Entry Road,
New Delhi - 110055
INDIA

No.AIRF/VII CPC(Allowances)
Dated: November 28, 2016
The General Secretaries,
All Affiliated Unions,

Dear Comrades!
Sub: Brief of the meeting held on 28.11.2016 with the Committee on Allowances

A meeting in the matter of Allowances related to the Railways was held today under the Chairmanship of Secretary (Finance), Government of India and others. Staff Side was headed by the undersigned and Com. M. Raghavaiah, General Secretary NFIR.

The discussion was initiated by me.

At the outset, I reminded the Committee, specifically the Finance Secretary, that strike situation was averted by the government by deputing three Cabinet Ministers, viz. Hon’ble Home Minister, Hon’ble Finance Minister and Hon’ble Railway Minister. On 29th June, 2016, the government issued notification and this was firmed-up by another notification on 06.07.2016 issued by the Ministry of Finance(Deptt. of Exp.). The government took four months time to decide the issues of Minimum Wage, Pay Fixation Formula, Allowances and National Pension System(NPS) etc. I pointed out that, “four months time is running out, so the reports of these committees should be published and all the allowances should be revised and sanctioned w.e.f. 01.01.2016. The matter of Breakdown Allowance, Coal Pilot Allowance, Commercial Allowance (Flag Station Allowance), i.e. Gate Allowance, Rajdhani Express Allowance, Risk Allowance, Sumptuary Allowance to Trainers, which has been abolished by the VII CPC, should be allowed to be continued”.

The matter of positive recommendations of the VII CPC in respect of granting of Train Controllers Allowance, Track Maintenance Allowances were elaborately discussed by the undersigned, pointing out that, the significance of these categories was elaborately highlighted. In addition, Additional Allowance to Running Staff was explained in detail, demanding its extension to Loco Pilot and Guards(Goods). It was also pointed out that, in the event of any train accident, Loco Pilot and Asstt. Loco Pilot are equally responsible. Difficult condition of the Goods Guard was also explained in greater detail. It was also demanded that those allowances should be extended to all the categories of Loco & Traffic Running Staff and the same should be counted for pensionery benefits. In respect of non-appearance of certain allowances in the report of the VII CPC, the vagaries of the life of the personnel working in the National
Projects were also highlighted, including Officiating Allowance, Risk Allowance etc.

The undersigned also impressed upon the Committee, especially the Secretary (Finance), that, positive recommendations of the committee should be published and all decisions in respect of allowances should take retrospective effect w.e.f. 01.01.2016.

Comradely yours,
sd/-
(Rakhal Das Gupta)
President

Source: AIRF

6th Meeting of committee on Allowances constituted to examine the recommendations of 7th CPC regarding Allowances - NFIR

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6th Meeting of committee on Allowances constituted to examine the recommendations of 7th CPC regarding Allowances-reg.

NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi – 110 055

No.IV/NIrIll/7 CPC (IMPl)/Allowances/2016
Dated: 29/11/2016
The General Secretaries of
Affiliated Unions of NFIR

Brother,

Sub: 6th Meeting of committee on Allowances constituted to examine the recommendations of 7th CPC regarding Allowances-reg.

Ref:RailwayBoard’sletter No.PC-VII/2016/CDS/3 dated 28/ll/12016

General Secretary, NFIR has participated in the 6th Meeting of the Committee on Allowances constituted to examine the recommendations of 7th CPC regarding Allowance at 17:30 Hrs on 28/11/2016 at Room No.169-D(Fresco), 1st Floor, North Block, New Delhi chaired by Finance Secretary, Government of India, participated by Member Staff/Railway Board, Secretary/Ministry of Defence, Secretary Postal, Additional Secretary (Expenditure), Joint Secretaries etc.

The points raised by the General Secrelary, NFIR in the meeting and sent to the Joint Secretary (implementation Cell, 7th CPC) though a communication vide dated 29th November, 2016 (as confirmation of points) may be perused in the enclosure to this letter for conveving the contents to the staff down the line.

Yours fraternally,
sd/-
(Dr.M.Raghavaiah)
General Secretary

Source: NFIR

Payment of Dearness Allowance to running staff – RBA 90/2016

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Payment of Dearness Allowance to running staff – RBA 90/2016

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD
RBA No.90/2016
25th November, 2016
No.2016/AC-II(CC)/IPAS/37/7(Zonal Railways)

a) General Managers, All Zonal Railways (including Metro Railway, Kolkata);
b) Director/Finance, CRIS

Railway Board (Pay Commission Dte.) vide their letter No.PC-VII/2016/1/7/2/1 dated 11th November, 2016 (RBE 131/2016) had communicated payment of DA @ 2% per month to all categories of Railway Employees w.e.f 1st July, 2016. The issue regarding admissibility of DA on running allowance paid to Running Staff has been examined in this Ministry and it has been decided that DA @ 2% shall be admissible to Running staff on the Basic pay plus Running allowances drawn w.e.f 1st July, 2016.

2. CRIS may incorporate the above rule in IPAS application, so that payroll of running staff for November, 2016 could be drawn accordingly.

3. It may please be ensured that Salary Advance of Rs.10000/- paid to Non-Gazetted employees in terms of Railway Borad’s letter No.2016/E(LL)/APW/1 dated 17.11.2016 is recovered from the concerned staff in salary bill of November 2016.

3. The issues with the approval of competent authority.

sd/-
(V.Prakash)
Joint Director(Accounts)

Source: AIRF

Withdrawal of cash from bank deposit accounts - Relaxation

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Withdrawal of cash from bank deposit accounts - Relaxation

RBI/2016-17/163
DCM.No.1437/10.27.00/2016-17

November 28, 2016

The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks / 
Regional Rural Banks / Urban Cooperative Banks/
State Cooperative Banks/ District Central Cooperative Banks

Dear Sir,
Withdrawal of cash from bank deposit accounts - Relaxation

It has been reported that certain depositors are hesitating to deposit their monies into bank accounts in view of the current limits on cash withdrawals from accounts.

2. As it is impeding active circulation of currency notes, it has been decided, on careful consideration, to allow withdrawals of deposits made in current legal tender notes on or after November 29, 2016 beyond the current limits; preferably, available higher denominations bank notes of ₹ 2000 and ₹ 500 are to be issued for such withdrawals.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Authority: www.rbi.org.in

Also read...

BPMS demands to increase Income Tax exemption limit to 8 lakh

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Agitational Programme to be held from 05.12.2016 to 09.12.2016

Income tax exemption limit (tax free income) should be extended to Rs 8,00,000/-

HRA should be paid @ 35, 25 and 15% of pay

REF: BPMS/Cir/17th TC/ 11 
Dated: 02.11.2016
To,
The President/General Secretary
Unions Affiliated to the Federation
& Office Bearers & Executive Committee Members
BPMS

Subject: Agitational Programme to be held from 05.12.2016 to 09.12.2016.

Dear Brothers and Sisters,
It is hoped that all of you are well and busy in accelerating trade union activities. Under the banner of Government Employees National Confederation, we continuously demanded for removal of anomalies related to pay fixation, bonus, income tax, recommendations of Pay Commissions but the Governments did not pay any heed to our genuine demands and it is leading discontentment amongst the employees. Therefore, Government Employees National Confederation has decided that all the constituent Federation of GENC will observe an agitation programme throughout the country from 05.12.2016 to 09.12.2016.

Being a constituent of GENC, this federation BPMS has decided that all the affiliated unions will organize agitation programme from 05.12.2016 to 09.12.2016 like Gate Meeting, Slogan Shouting, Dharna etc. On 09.12.2016 a memorandum should be submitted to their respective Heads of the establishment addressed to Hon’ble Prime Minister of India mentioning the following demands:

1. Minimum Pay should be fixed Rs 24,000/- and fitment formula should be 3.42 in place of 2.57.

2. Under MACP Scheme, 05 financial upgradation should be granted in promotional hierarchy in the service of 30 years.

3. Annual Increment should be @ 5% in place of 3%.

4. The Benchmark ‘very good’ should be abolished for granting of promotion, financial upgradation and annual increment.

5. The Grade pay of Group ‘C’ Rs 1900/- and Rs 2000/- should be merged and upgraded to Rs 2400/-.

6. HRA should be paid @ 35, 25 and 15% of pay.

7. New Pension Scheme should be scraped. 

8. FDI should be scraped in Defence and Railway.

9. Bonus should be calculated on Rs 18,000/- in place of 7,000/- because minimum pay has been enhanced from 7,000/- to 18,000/-.

10. Income tax exemption limit (tax free income) should be extended to Rs 8,00,000/-.

11. The wards of employees died in harness should be guaranteed with 100% compassionate ground appointments.

Thanking you 

Sincerely yours

(M P SINGH)
General Secretary

Copy to:
1- The General Secretary BMS, New Delhi
2- Shri K.N.Sharma, I/C BPMS, Lucknow For information
3- The Secretary General, GENC, Kanpur

Source: BPMS

Grant of Advance for Cancer treatment in Private Nursing Home under CGHS / CS (MA) Rules

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Grant of Advance for Cancer treatment in Non-Empanelled Private Hospitals / Private Nursing Home under CGHS / CS (MA) Rules
REF: BPMS / MH&FW / Advance / 156 (8/1/L) 
Dated: 25.11.2016
To,
The Secretary,
Govt. of India, Min. of Health & Family Welfare,
156 - A, Nirman Bhawan,
New Delhi 110001.

Subject: Grant of Advance for Cancer treatment in Non-Empanelled Private Hospitals / Private Nursing Home under CGHS / CS (MA) Rules.

Respected Sir,
Considering the hardships being faced by cancer patient, vide O.M. No.1967/2013/DEL/CGHS/SZ/D52/CGHS(P) , Dated 30.12.2014 Department of Health & Family Welfare, CGHS (Policy) Division delegated the powers to HOD’s for permission / ex-post facto approval for cancer treatment taken in non-empanelled hospitals subject to reimbursement being restricted to CGHS rates or actual expenditure, whichever is less.

Further, as per O.M. No. s.12020/4/97-CGHS (P), Dated 07.03.2000 of Ministry of Health & Family Welfare (Department of Health) the Heads of Departments (HODs) may decide the cases of reimbursement of medical claims in respect of treatment obtained in emergency at private hospitals/private nursing home/private clinic, subject to item-wise ceiling as per rates prescribed for CGHS beneficiaries without financial limit on the total amount to be reimbursed.

Now, it has been experienced that a government employee covered under CGHS / CS(MA) Rules and resides in Kanpur, obtains the permission of Head of Department for treatment in Non-Empanelled Private Nursing Home/Hospital (for example Rajiv Gandhi Cancer Institute & Research Centre, New Delhi). After surgical treatment of Cancer, he needs post operative treatment (Chemotherapy) and he wants to continue his treatment from the same non-empanelled private nursing home/hospital. But the HOD refuses to grant advance for post operative treatment on the plea that advance may be granted in emergency for treatment in non-empanelled private nursing home and post operative treatment of cancer (Chemotherapy) does not fall under the category of emergency. In absence of advance, such employee finds himself unable to get treated and cured and that add insult to injury.

In such circumstances, you are requested to issue necessary orders so that the beneficiaries covered under CGHS / CS (MA) Rules may be granted medical advance being restricted to CGHS rates for post operative treatment of Cancer obtained from nonempanelled private nursing home/hospital.

Thanking you,

Sincerely yours

(MUKESH SINGH)

Enclosed: As mentioned

Copy to: 
1. The DHS, OFB, Kolkata Secretary/BPMS &
2. The US D(Civ-I), MoD, New Delhi Member, JCM-II Level Council (MOD)
-With request to take appropriate action.

Source: BPMS

Meager financial Benefit of 14% in 7th CPC - Parliament Q & A

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Meager financial Benefit of 14% in 7th CPC - Parliament Q & A

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO: 1755
ANSWERED ON: 25.11.2016

Meager Benefits of 7th CPC

PINAKI MISRA
Will the Minister of

FINANCE be pleased to state:-

(a) whether the Government employees got only a meager financial benefit of 14 per cent or less after implementation of 7th CPC;

(b) if so, the details of percentage of salary they got before and after implementation of Seventh CPC and the reasons for such meager hike in their salaries; and

(c) whether the benefit given in the 7th CPC is one of the lowest in all time ever since the Government had been implementing the recommendations of CPC and if so, the details thereof?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)

(a) to (c): All Government employees have got a financial benefit of at least 14.29 per cent by way of revision of salary after implementation of Seventh Central Pay Commission (7th CPC). The increase in pay as recommended by the 7th CPC is based on the detailed deliberations by the Commission keeping in view all relevant factors having a bearing upon the prevailing circumstances, which has been accepted by the Government.

Authority: www.loksabha.nic.in

Withdrawal of cash per week - RBI Instructions on 25.11.2016

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Withdrawal of cash – Weekly limit

RBI/2016-17/158
DCM (Plg) No.1424/10.27.00/2016-16

November 25, 2016

The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural
Banks / Urban Cooperative Banks/ State Cooperative Banks/ District Central Cooperative Banks

Dear Sir,

Withdrawal of cash – Weekly limit

Please refer to our circulars DCM (Plg) Nos. 1272/10.27.00/2016-17 and 1273/10.27.00/2016-17 dated November 13 and November 14, 2016, respectively. 

The banks are, hereby, advised that they may continue to allow their existing customers to withdraw cash from their accounts upto ₹ 24,000/- per week, till further instructions. 

The said limit include withdrawals from ATMs as stipulated in our circular DCM (Plg) No.1304/10.27.00/2016-17 dated November 20, 2016.

2. Please acknowledge receipt.

Yours faithfully,
(Suman Ray)
General Manager

Authority: www.rbi.org.in

Recruitment in Defence Forces

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Recruitment in Defence Forces 

Government has taken a number of measures to encourage the youth to join the defence forces, including sustained image projection, publicity campaign to create awareness among the youth on the advantages of taking up a challenging and satisfying career, participation in career fairs and exhibitions, motivational lectures in schools and colleges etc. The support of State Government authorities is also solicited in disseminating requisite information to the target population.

Further, recruitment rallies are conducted in different parts of the country to provide opportunity to youth from these areas to join the Armed Forces. Efforts are made to cover entire country including remote, border, tribal and hilly areas.

For recruitment in Army, certain relaxations in physical and educational standards are available for candidates of tribal / hilly and other backward areas. In the case of Navy and Air Force, there is no provision for relaxation in educational standards. However, relaxation in height is given to candidates from certain areas.

At present, there is no proposal under consideration of the Government to further relax the criteria for recruitment in defence forces. The Government has set up Sainik Schools in various parts of India including difficult and border areas with the primary aim of preparing boys academically, physically and mentally for entry into the National Defence Academy. As on date, 25 Sainik Schools are functioning in the various parts of the Country and out of them 05 Sainik Schools are set up in difficult and border areas. In addition, students in border and difficult areas are also encouraged to join National Cadet Corps (NCC) which strives to provide the youth of the country opportunities for all round development with a sense of commitment, dedication, self-discipline and moral values, so that they become responsible citizens of tomorrow.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Dr. Ramesh Pokhriyal “Nishank” and Shri Bharat Singh in Lok Sabha today.

Source: PIB News

Pay Parity between Military and Civilian Personnel

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Pay Parity between Military and Civilian Personnel 

The 7th Central Pay Commission (CPC), an expert body constituted by the Government, gave its recommendations on emolument structure of government employees, including personnel belonging to Defence Forces, after due consultation with various stakeholders and thorough examination of various aspects involved. The Commission recommended separate Pay Matrix for Defence Forces after considering:
(i) principles and philosophy adopted in devising the Pay Matrix for civilian employees; and 

(ii)some of the aspects in the rank structure unique to Defence Forces.

The Government accepted the Commission’s recommendations on Minimum Pay, Fitment Factor, Index of Rationalization, Pay Matrices and general recommendations on pay with certain exceptions in Defence Pay Matrix, namely,
(i)revision of Index of Rationalization of Level 13A (Brigadier) from 2.57 to 2.67; and 

(ii)addition of three stages in Level 12A (Lt Colonel), three stages in Level 13 (Colonel), and 

two stages in Level 13A (Brigadier).

As and when issues regarding anomalies in the pay of defence personnel are brought to notice, the same are examined by the Government, on case to case basis.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Sultan Ahmed and others in Lok Sabha today.

Source: PIB News

Reservation Policy in Banks

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Reservation Policy in Banks 

As per existing reservation policy of Department of Personnel & Training (DoPT) for SCs/STs and OBCs, there is reservation in direct recruitment in lowest rung in officer cadres of Group A post i.e. Middle Management Grade Scale-I post. However, based on the guidelines of the DoPT, Public Sector Banks (PSBs) were clarified on 18.02.2014 that concessions mentioned in DoPT’s O.M. dated 07.6.2013 will be available to the SC/ST officers in PSBs in promotion by selection to posts within the officer cadre up to Middle Management Grade Scale-III of Grade-C(lowest three rungs in officers’ cadres), whichever is applicable. There is no reservation of OBCs in promotions.

Overall percentage representation of SC/ST vis-à-vis number of employee in Group A in Public Sector Banks/Financial Institutions/Public Sector Insurance Companies (PSBs/FIs/PSICs) is 17.79% and 7.53% respectively, which is fulfilling the condition of percentage of 15% and 7.5% required as per the existing reservation policy of Government of India.

As per existing reservation policy of DoPT, the post of DGM and GM are treated under Senior Management Grade. These posts are filled up on selection basis. Based on the instructions of the DoPT for reservation is available for SCs/STs in PSBs/FIs up to lowest rung of officer cadre Group A.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Source: PIB News

Poor Functioning of CGHS

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Poor Functioning of CGHS 

Some grievances have been received from CGHS beneficiaries through grievance portals and other channels regarding functioning of CGHS. These are mainly regarding non-issue of medicines, plastic cards, shortage of doctors/ specialists and long queue of patients in Wellness Centres.

Following action has been taken by the government in this regard:                                                     
(i) Appointment of retired doctors on contract basis as a stop gap arrangement to fill the vacant posts.
(ii) Medicines, which are not available at CGHS Wellness Centres are procured through Authorized Local Chemists.
(iii) A special drive was undertaken to clear the pendency of issue of CGHS Plastic cards
(iv)  Option for self-printing of CGHS cards for existing CGHS beneficiaries.
(v) Introduction of on-line registration for consultation at selected Wellness Centres in Bengaluru and in one zone in Delhi.
(vi) Initiation of tele-consultation on trial basis in Delhi from two CGHS Wellness Centres with specialists of Dr. R.M.L Hospital.

Regular internal audits and also external audits/studies on the functioning of CGHS have been carried out.  

Outcome of some of the important studies are as under:

(i) Staff Inspection Unit (SIU) was carried out by Ministry of finance for Staff Pattern Norms based on patient attendance.  Recommendations of the SIU have been implemented.

(ii) Based on the study carried out by Kaul Committee, computerization of all the CGHS Wellness Centres has been done

(iii) On the basis of recommendations of the CAG Audit on procurement of medicines, Medical Stores Organization (MSO) has initiated e-tender for procurement of Anti Cancer and other Lifesaving medicines. It has also been decided to procure only L1 Rate medicines under formulary for Branded Medicines.

(iv) Committee of Secretaries (COS) has also been monitoring the functioning of CGHS since 2008 and various steps have been implemented to make CGHS beneficiary friendly. As per the recommendations of COS, UTI-ITSL has been appointed as Bill Clearing Agency for settlement of credit bills of empanelled hospitals and diagnostic centres pertaining to the treatment of CGHS pensioner beneficiaries.

(v) The functioning of CGHS is also monitored by the Hon’ble Prime Minister and as per the directions under ‘PRAGATI’, the process of linking of Aadhar Number with CGHS beneficiary Numbers has been started. A special drive was undertaken to clear the pendency of issue of CGHS Plastic cards. Provision has been made for self-printing of CGHS cards by existing CGHS beneficiaries.

(vi) DAR&PG conducted a study through Quality Council of India (QCI)   to identify   areas of Grievances in Different Ministries and organizations including CGHS and suggested possible solutions.

Based on the inputs so received:
Financial Powers of Additional Directors of CGHS have been enhanced for early settlement of medical claims of Pensioners.
Introduction of on-line registration for consultation at selected Wellness Centres in Bengaluru and in one zone in Delhi.
Aadhar-based Bio-metric attendance for the staff at CGHS Wellness Centres has been implemented in Delhi and NCR.

The following steps have been taken for improvement in the functioning of CGHS in the country:-
1. Regular Inspection of Wellness Centres is carried out.
2. Monthly advisory committee meetings are held for each Wellness Centres with CMO   (Incharge)
3. Regular monitoring of empanelled hospitals by a team constituted by Additional Directors, CGHS of cities for this purpose.
4. Regular meeting of Additional Directors, CGHS with pensioner associations.SMS alert facility to CGHS beneficiaries.

The Minister of State (Health and Family Welfare), Sh Faggan Singh Kulaste stated this in a written reply in the Lok Sabha here today.

Source: PIB News

6th CPC DA Orders – Armed Forces Officers and Personnel Below Officer Rank including NCs(E)

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6th CPC DA Orders – Armed Forces Officers and Personnel Below Officer Rank including NCs(E)

Rate of Dearness Allowance applicable w.e.f. 01.07.2016 to Armed Forces Officers and Personnel Below Officer Rank including NCs(E) continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th pay Central Pay Commission

F.No.1(2)/2004/D (Pay/Services)
Government of India
Ministry of Defence
New Delhi, 23rd November, 2016
To
The Chief of the Army Staff
The Chier Of the Air staff
The Chief of the Naval Staff

Subject: Rate of Dearness Allowance applicable w.e.f. 01.07.2016 to Armed Forces Officers and Personnel Below Officer Rank including NCs(E) continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th pay Central Pay Commission.

Sir,
I am directed to refer to this Ministry’s letter No. 1(2)/2004/D (Pay/Services) dated 18rh April, 2016 on the subject cited above and to say that the President is pleased to decide that the Dearness Allowance payable to Armed Forces Officers and Personnel Below Officer Rank, including Non-Combatants (Enrolled), shall be enhanced from the existing rate of 125% to 132% with effect from 1st July, 2016.

2. The provisions contained in paras 2, 4 and 5 of this Ministry’s letter No. 1(2)/2004/D(Pay/Services) dated 25th September 2008 shall continue to be applicable wvhile regulating Dearness Allmvance under these orders.

3. This letter issues with the concurrence of Finance Division of this Ministry vide their Dy. No.1/3/2008-E-II(B), dated 21.11.2016 based on the Ministry of Finance (Department of Expenditure) No.1/3/2008-E-II(B), dated 9th November, 2016.

Yours faithfully,
sd/-
(Prashant 
Rastogi)
Under Secretary to the Government of India


Authority: www.mod.nic.in

Old Rs.500 Rs.1000 banknotes - School, College fees and Mobile Recharge

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Old Rs.500 banknotes - Exemptions for certain additional transactions  of  School College fees and Mobile Recharge

After due consideration of all relevant aspects, the Central Government takes various decisions relating to certain operational aspects of the Scheme relating to cancellation of legal tender character of old Rs. 500 and Rs. 1000 notes; No over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016;.Certain other exemptions continued till 15th December, 2016 with certain additions and modifications. 

The Central Government has been reviewing the issues related to the cancellation of legal tender character of old Rs. 500 and Rs. 1000 notes.  The Government has also been receiving various suggestions in this regard.  After due consideration of all relevant aspects, the following decisions relating to certain operational aspects of the Scheme have now been taken:

(i) It has been observed that over the counter exchange of the old currency notes of Rs. 500 and Rs. 1000 denomination has shown a declining trend.  It has further been felt that people may be encouraged and facilitated to deposit their old Rs. 500 and Rs. 1000 notes in their bank accounts. This will encourage people who are still unbanked, to open new bank accounts.  Consequently, there will be no over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016.

(ii) Government had also permitted various exemptions for certain transactions and activities wherein payment could be made through old Rs. 500 and Rs. 1000 notes.  It has been decided that all these exemptions, with the additions and modifications as detailed below, may be continued for a further period from the midnight of 24.11.2016 up to and inclusive of 15.12.2016 :-

(a) Payments for the transactions under all the exempted categories will now be accepted only through old Rs. 500 notes;

(b) Payment of School fees up to Rs. 2000 per student in Central Government, State Government, Municipality and local body schools;

(c) Payment of fees in Central or State Government colleges;

(d) Payments towards pre paid mobile top-up to a limit of Rs. 500 per top-up;

(e) Purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time;

(f) Payment of current and arrear dues to utilities will be limited to only water and electricity.  This facility will continue to be available only for individuals and households;

(g) Considering that the Ministry of Road Transport and Highways have continued the toll free arrangement at the toll plazas up to 2.12.2016, it has been decided that toll payment at these toll plazas may be made through old Rs. 500 notes from 3.12.2016 to 15.12.2016.

(h) Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week.  Necessary entry to this effect will be made in their passports.  (Necessary instructions in this regard will be issued by the RBI.)

Source: PIB News

1429 complaints received from Ex-Servicemen with regard to OROP benefits

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1429 complaints received from Ex-Servicemen with regard to OROP benefits

Complaints over OROP

Minister of State for Defence Dr. Subhash Bhamre has informed about the Complaints over OROP in Rajya Sabha.

A Judicial Committee headed by Justice L. Narasimha Reddy, retired Chief Justice of Patna High Court was appointed to look into the anomalies of implementation of OROP. The Committee has submitted its report on 26.10.2016 which is under examination.

Out of 20,63,529 pensioner beneficiaries, 1429 complaints have been received from Ex-Servicemen and the Family Pensioners with regard to OROP benefits. Public Grievance Cell in the Department is receiving grievances of the pensioners / family pensioners and taking up the matters with the concerned Departments for redressal of their grievances. Disposal of grievances is monitored at the highest level in the Government.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri PL Punia and Shri Pramod Tiwari in Rajya Sabha today.

Source: PIB News

Reply in Lok Sabha regarding Creamy Layer Issue

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Reply in Lok Sabha regarding Creamy Layer Issue

Now there is no error in Paragraph 9 of the English version of the O.M. dated 14.10.2004 vis-a vis the Hindi version

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(DEPARTMENT OF PERSONNEL & TRAINING)
LOK SABHA

UNSTARRED QUESTION NO. 139
(TO BE ANSWERED ON 16.11.2016)

CREAMY LAYER

139. SHRI GANESH SINGH:
Will the PRIME MINISTER be pleased to state:

(a) whether the previous Government had set aside the report of first creamy layer expert committee and the Department of Personnel, Public Grievances and Pensions issued an official memorandum No. 36033/5/2004- Est. (SCT) dated 14 October, 2004 clarifying the creamy layer and which carries out two different meanings in its Hindi and English versions and if so, the details thereof;

(b) whether the Government has accepted the mistakes of the said memorandum and if so, the action taken to cancel the said memorandum and the action taken against the officials found responsible therefor;

(c) if not, the reaction of the Government in this regard;

(d) whether the Government has disqualified many candidates of the OBC for IAS and other services despite qualifying the Civil Services Examination, 2015 as a result of the said memorandum and if so, the details in this regard; and

(e) the number of OBC candidates declared disqualified for IAS and other services on the basis of this memorandum from 2004 till date?

ANSWER
Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office. (DR. JITENDRA SINGH)

(a) to (c): The DOPT Office Memorandum (O.M.) No. 36033/5/2004-Estt(SCT) dated 14 October, 2004 is only a clarification explaining the provisions of DOPT O.M. No. 36012/22/93-Estt.(SCT) dated 8.9.1993. The O.M. of 8.9.1993 was issued by the DOPT based on the recommendations of an Expert Committee constituted by the then Ministry of Welfare.

The earlier unsigned typed copy of the English version of the O.M. dated 14.10.2004, uploaded on the website of this Department, had certain discrepancies in respect of Paragraph 9 vis-a vis its Hindi version uploaded on the Department’s website. It was, therefore, felt necessary to rectify that discrepancy. Subsequently, the signed version of the O.M. was traced and uploaded on the Department’s website and now it is seen that there is no error in Paragraph 9 of the English version of the O.M. dated 14.10.2004 vis-a vis the Hindi version.

(d) & (e): In case of recommendation of name of a candidate by UPSC for service allocation, the candidate is considered for allocation to one of those services by the Government for which he has indicated his preference as per Civil Services Examination Rules and extant instruction on the subject.

Withdrawal of Specified Banknotes : Cash requirements of pensioners and Armed Forces Personnel

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Withdrawal of Specified Banknotes : Cash requirements of pensioners and Armed Forces Personnel

RBI/2016-17/154
DCM (Plg) No.1384/10.27.00/2016-17
November 24, 2016
The Chairman / Managing Director/Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks / Regional Rural Banks /
Urban Co-operative Banks / State Co-operative Banks/ District Central Co-operative Banks

Dear Sir,
Withdrawal of Specified Banknotes : Cash requirements of pensioners and Armed Forces Personnel

In view of the withdrawal of legal tender character of the Specified Banknotes (SBN) demand for cash is expected from Government officials and pensioners after the electronic payment of their salary/pension.

2. Banks are therefore advised to take appropriate steps in order to meet this likely demand for cash by:

(i) Ensuring adequate cash availability for taking care of the requirements of pensioners

(ii) Ensuring adequate supply at the military outposts for the cash requirements of the Armed Forces personnel.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Authority: www.rbi.org.in

Meeting on Allowances held on 18.11.2016 - Viewpoints of BPMS

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BPMS views on Allowancee
REF: BPMS / MOD / 07th CPC / Allowances / 251A (8/2/M) 
Dated: 23.11.2016
To,
The Dy Secretary (CP),
Govt of India, Min of Defence,
Sena Bhawan, DHQ PO,
New Delhi 110011

Subject: Meeting on Allowances: View points of BPMS
Reference: This federation’s letter of even no. dated 15.11.2016

Respected Sir,
With due regards, your attention is invited to power point presentation in the meeting held on 18.11.2016 under the chairmanship of Defence Secretary on the allowances payable on the recommendations of 7th CPC.

Some of the following issues raised during the meeting, need to be considered by the committee in addition to the points mentioned by BPMS vide letter cited under reference:

1. Extra Work Allowance (Chapter No. 8.3) (Para 8.3.23):
(a) Caretaking Allowance (Para 8.3.20) at the rate of 10% of Basic Pay is being paid to Group ‘C’ Staff. Now 7th CPC has recommended for 2% of Basic Pay per month. It is demanded that this Caretaking Allowance should also be admissible to Defence Civilians performing the similar duties.

2. Allowances related to Knowledge Updates (Chapter 8.4)
(a) Professional Update Allowance (Para 8.4.7): This allowance should be extended to Group ‘A’, ‘B’ & ‘C’ incumbents engaged in Ordnance Development Centre (OFB), Group ‘B’ & ‘C’ of DRDO and Laboratory Technicians in Pathology of Govt Hospitals.

3. Allowances related to Working on Holidays (Chapter 8.6)
(a) Holiday Monetary Compensation (Para 8.6.6): Group ‘B’ Gazetted Supervisory Staff (Junior Works Manager) in Ord Fys have to work on Sunday and other holidays. This allowance should be extended to this Cadre also.

4. Qualification Allowance (Chapter 8.9)
(a) Air Worthiness Certificate Allowance (Para 8.9.5): At present this allowance is being paid to Technical Tradesman in Aircraft trade @ Rs. 225/- to 450/- per month. But their Civilian counterparts are not granted this allowance. This should be looked into.

5. Allowances related to Risk and Hardship (Chapter 8.10)
(a) Boiler Watch Keeping Allowance (Para 8.10.7): Presently it is admissible to Boiler Watch Keepers on Naval Ships @ Rs. 3000/- per month. Similar nature of work is performed by the Boiler Attendants of Ord Fys. Hence, this allowance should be admissible to Boiler Attendants of OFB.

(b) Field Area Allowance (Para 8.10.18): 
This allowance is granted to Defence, CAPF and Indian Coast Guard. Civilian counterparts of Ministry of Defence should also be granted the Field Area Allowance.

(c) Operation Theatre Allowance (Para 8.10.35): 
This allowance @ Rs. 240/ per month is granted to Staff Nurse in Central Government Hospitals, who work in ICU/Operation Theatre. This federation is not agree with the 7th CPC’s recommendation (Para 8.10.80) to abolish this allowance as the amount is meagre rate. Hence, this allowance should be continued and enhanced.

(d) Submarine Technical Allowance (Para 8.10.54): 
It is granted to Naval Artificers and Mechanicians for the period they are deployed for submarine maintenance duties. The present rate is ₹300 pm. Civilian counterparts of Navy should also be granted this allowance.

6. Allowance related to Travel (Chapter 8.15)
(a) Daily Allowance (Para 8.15.15): The 7th CPC has recommended for reimbursement of Travelling Charges for Level 5 and below at the rate of Rs. 113 per day. This is very meagre amount. Hence, it should be enhanced to Rs. 200 per day.

(b) TA on Transfer (Para 8.15.41): 
The 7th CPC has recommended for ‘reimbursement of charges on transportation of personal effects’ at the rate of Rs. 25 per km for Level 5 and Rs. 15 per km for Level 4 and below category. It is not understandable how a transporter will discriminate among the employees of different categories for rate for transportation by road. Hence, it is demanded that the rate for transportation by road should be equal for all categories of employees.

This is submitted for your kind consideration and necessary action.

Thanking you.

Sincerely yours

(MUKESH SINGH)
Secretary/BPMS &
 Member, JCM-II Level Council (MOD)

Source: BPMS

Government Committee for consideration of issues of 7th CPC recommendations

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Government Committee for consideration of issues of 7th CPC recommendations

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-713
ANSWERED ON-22.11.2016

Government Committee for consideration of issues of 7th CPC recommendations

713 . Shri Neeraj Shekhar

(a) whether Group of Ministers including Union Minister for Finance had assured the representatives of various trade unions/JCM to set up a Committee to consider the demand of revision of Minimum Wage and Fitment Formula under 7th CPC with a mandate to finalize its report within four months;
(b) if so, the present status of the Committee;
(c) the reasons for the delay in report by the said Committee even after elapsing of more than four months;
(d) whether the Committee on Allowances has finalized its report;
(e) if so, the details thereof along with the salient recommendations thereof; and
(f) if not, the reasons therefor?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

(a) to (c): In pursuance of the assurance given by the Union Ministers to the representatives of the National Council (Staff Side), Joint Consultative Machinery, meetings have been held by a group of senior officers with them to discuss their demands in this regard.

(d) to (f): The Committee on Allowances has been interacting with various stake-holders to discuss their demands and has so far held discussions with National Council (Staff Side), Joint Consultative Machinery, representatives from staff associations and officials from Ministry of Health & Family Welfare, Ministry of Home Affairs and Department of Posts. The Committee may also interact with the representatives of some other major Ministries/Departments and stakeholders with whom consultations are yet to be held before finalizing its Report.

Authority: Rajya Sabha

Guidelines fo the Ministry of Defence for Penalties in Business Dealings with Entities

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GUIDELINES OF THE MINISTRY OF DEFENCE FOR PENALTIES IN BUSINESS DEALINGS WITH ENTITIES

(A) Introduction
A.1   It is imperative that the highest standards of propriety be maintained throughout the process of procurement of defence equipment.

A.2 The procurement process needs to proceed without loss of credibility and therefore, there is a need to put in place appropriate measures to deal with acts of impropriety.

A.3 The following paragraphs lay down the policy and guidelines for Levy of Financial Penalties and/ or Suspension/Banning of business dealings with entities seeking to enter into contract with/having entered  into a contract for the procurement of goods and services by the Ministry of Defence.

A.4 In applying the measures provided for under the guidelines, the concerned authorities shall be guided by the need to ensure probity, transparency, propriety and compliance in the defence procurement process. Equally, the concerned authorities shall also ensure fairness, impartiality, rigour and correctness in dealing with entities, keeping in view the overall security interests of the country.

(B) General

B.1 Ministry of Defence will include Department of Defence, Department of Defence Production, Departement of Defence Research & Development, HQ, IDS, Armed Forces Headquarters and their attached/subordinate offices.

B.2 “Entities” will include companies, trusts, societies, as well as individuals and their associations with whom the Ministry of Defence has entered into, or intends to enter into, or could enter into contracts or agreements.

B.3 All firms/companies which come within the sphere of effective influence of the entities shall be treated as its allies firms. In determining this, the following factors may be taken into consideration:-

(i) Whether the management is common or the majority interest in the management is held by the partners or directors of the entities.

(ii) Majority shares are owned by the entity, their directors/shareholders and by virtue of this it has controlling voice.

B.4 Effect of actions, viz., levy of financial penalties and/or suspension/banning of business dealings with an entity in accordance with these guidelines may, with the approval of the competent authority also apply when an entity participates in the procurement process as member of consortium.

B.5 The competent authority for the purpose of these guidelines will be Raksha Mantri.

B.6 The Competent Authority may constitute Committees as necessary, to examine and make recommendations on any matter provided for under the guidelines.

(C) Causes for Suspension and Banning of Business Dealings with Entities

C.1 The competent authority may levy financial penalties and/or suspend/ban business dealings with an entity for one or more of the grounds listed below:-

a) Violation of Pre-Contract Integrity Pact (PCIP) (where such PCIPs are entered into between the Ministry of Defence and an entity).

b) Resort to corrupt practices, unfair means and illegal activities during any stage of bid/contract to secure a contract, even in cases where PCIP is not mandated.

c) Violation of Standard Clause in the contract of agents/agency commissions.

d) If national security considerations so warrant.

e) Non-performance or under performance under the terms and conditions of contract(s) or agreement(s) not covered in grounds listed in (a) to (c) above in accordance with provisions in contract or agreement.

f) Any other ground for which the competent authority may determine that suspension or banning of business dealings with an entity shall be in the public interest.

(D) Suspension

D.1 Suspension of business dealing with an entity may be ordered by the competent authority pending a full proceeding into allegations or facts related to any grounds enumerated in paragraph C.1 (a) to (f) above.

D.2 The competent authority may suspend business dealings with an entity when it refers any complaint against the entity to CBI or any investigating agency or when intimation is received regarding initiation of criminal investigation or enquiry against any entity.

D.3 An order of suspension of business dealings with an entity will be issued for such period as the competent authority may deem fit. The period of suspension shall not ordinarily exceed one year. A review of the Order of suspension of business dealings with an entity shalll be undertaken within six months of the issue of such an Order and before expiry of the period specified therein. The suspension of an entity may be extended beyond the period of one year, on the order of the Competent Authority for subsequent periods of six months each. The total period of suspension of business dealings with an entity shall not exceed the maximum period of banning of business dealings with an entity for the same cause of action.

(E) Effect of Suspension of Business Dealings with an Entity

E.1 An order of suspension of business dealings with an entity shall result in immediate ineligibility of the entity from participating in future bids. No RFP will be issued to such an entity.

E.2 Any on-going procurement process, where L1 determination has not yet been done, will be progressed after excluding the bid involving an entity with which business dealings are suspended. In case there are only two bidders, one being the entity with which business dealings are suspended, the procurement will be progressed as per extant provisions of DPP after excluding such an entity.

E.3 Any on-going procurement process where the lowest bid involves the entity with which business dealings are suspended by order of competent authority, will be held in abeyance till decision of revocation of such order or banning of business dealings with the entity or till expiry of the validity of the existing bid, whichever is earlier. Extension of the validity of the bid involving such entity will not be permitted. On expiry of the bid validity, the procurement process will be terminated and fresh procurement process, if required, may be initiated. In cases of operational urgency, the procurement process may be foreclosed prior to the expiry of the bid validity and a fresh process initiated, excluding the entity with which business dealings are suspended.

E.4 Order of suspension of business dealings with an entity may be extended to its allied firms by specific order of the competent authority.

(F) Banning of Business Dealings with an Entity/Debarment of an Entity

F.1 Banning of business dealings with an entity may be ordered by the competent authority on acceptance of misconduct related to any of the grounds enumerated in paragraph C.1 (a) to (f) above by the entity or establishment of such misconduct by a competent court/ tribunal/ authority

F.2 Banning of business dealings with an entity may be ordered by the competent authority on receipt of information regarding filing of charge-sheet in the court of law by CBI or any other investigating agency.

F.3 The order of banning of business dealings with an entity will be issued for such specified period as the competent authority may deem fit. For the grounds listed in paragraph C.1 (a) to (d) above, the period of banning of business dealings with an entity shall not be less than five years. For the grounds listed in paragraph C.1 (e) and (f) above, banning of business dealings may be resorted to if, in the view of the competent authority, the grounds for action are such that continuation of business dealings with the entity would be detrimental to public interest. In such cases, the period of banning of business dealings with an entity shall not ordinarily exceed three years. The period of Banning of business dealings with an entity in both the categories will be inclusive of period of suspension of business dealings with an entity, if any, for the same cause of action. In exceptional cases and those involving national security considerations the competent authority may order a longer period of banning of business dealings with an Entity, as deemed appropirate. 

(G) Effect of Banning of Business Dealings with an Entity/Debarment of an Entity

G.1 An order of banning of business dealings with an entity shall result in immediate ineligibility of the entity, from participating in future bids of a specified period with effect from the date of such order. No RFP will be issued to such an entity.

G.2 Any on-going procurement process where L1 determination has not yet been done will be progressed after excluding the bid involving entity with which the business dealings are banned. In case there are only two bidders, one being the entity with which business dealings are banned, the procurement will be progressed as per extant provisions of DPP after excluding such an entity.

G.3 Any on-going procurement process where the lowest bidder involves an entity with which business dealings are banned, will be terminated and fresh procurement process, if required, may be initiated.

G.4 Orders of banning of business dealings with an entity may be extended to its allied firms by specific order of the competent authority.

(H) Employees / Agents of an Entity

H.1 Any employee or agent of an entity, who is convicted for any act of impropriety, will not be allowed to engage in any bid process in any capacity with the Ministry of Defence, any time in the future.

H.2 Any employee or agent of an entity with which business dealings are suspended or banned and who is involved in a case of alleged impropriety for which investigation or judicial proceedings is in progress, will not be allowed to engage in any bid process in any capacity with the Ministry of Defence even after the expiry of the period of suspension / banning of business dealings with the entity.

(I) Miscellaneous

I.1 The entity with which business dealings are suspended or banned, may with the approval of competent authority, participate in the future RFPs for spares, upgrades, maintenance etc for the equipment/weapon systems supplied earlier by it, if the equipment which is the object of the Contract is a proprietary item and there are no available alternate sources of supply.

I.2 In cases wherein Transfer of Technology (ToT)/Licensed production has been taken in the past for manufacturing of equipment/weapon systems in India from the entity with which business dealings are suspended or banned, may with the approval of the competent authority, participate in the future RFPs related to components/ rotables/ additional items of such equipment/ weapon systems for which the TOT/Licensed production has been taken.

I.3 Any contract(s) related to the procurement process(es) in connection with which business dealings with an entity have been suspended will be held in abeyance. Any contract(s) related to the procurement process(es) in connection with which business dealings with an entity have been banned, shall be cancelled. However, other contracts involving such entity shall continue unless a decision to the contrary is taken by the competent authority, on a case by case basis.

I.4 If it becomes necessary on grounds of national security and operational preparedness / export obligations, to deal with an entity with which business dealings have been suspended or banned, in a procurement process and which is the only source that can supply/manufacture an equipment/weapon systems, the Competent Authority will be approached for approval of issuance of RFP or conclusion of contract with such an entity. Certificates (as provided in Annexure-I) signed by the Vice Chief of the service concerned / CISC / Additional Secretary (Defence Production) will be placed before the Competent Authority. SHQ / Department of Defence Production may propose special conditions to conclude a contract with such an entity.

I.5 The entity with which business dealings have been suspended or banned will not be permitted to transact contracts or agreements under a different name or division either through a transfer of assests of such an entity to another legal entity or otherwise.

I.6 An updated list of entities with which business dealings have been suspended or banned by the competent authotity and/or against which financial penalties have been imposed shall be maintained on the official website of the Ministry of Defence.

(J) Application

J.1 These guidelines shall come into force with immediate effect.

Annexure-I

(Refers to Para-1.4 of draft Guidelines)
CERTIFICATE***

1) The
…………………………………………………………………………………. [equipment/weapon system] is inescapably required for national security and operational preparedness / export obligations and no other alternative/combination of equipment/weapon system can fulfil the requirement.

2) The …………………………………………………………………………………………….. [equipment/weapon system] is not availbale from any other source.

3) It is absolutely necessary to deal with …………………………………………………………………………… [name of the entity] with which business dealings have been suspended or banned for meeting the instant requirement.

**Certificates as above, signed separately by the Vice Chief of the Service concerned / CISC, are to be placed before the Competent Authority.
**Certificate for inescapable requirement on account of export obligations, signed by AS (DP) is to be placed before the Competent Authority.



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