Resolution of Anomalies in the 6th CPC Report

Resolution of Anomalies in the 6th CPC Report

Recommendations of the Sixth Central Pay Commission (CPC) and several improvements made thereon by the Government have been largely well received by the armed forces personnel including ex-servicemen. Some issues regarding service conditions, pay, pension and allowances, including demand for non-functional upgradation, were subsequently received, which were examined by the Government on case to case basis.
Some of the pay concerns of armed forces personnel were also examined by a committee constituted under the chairmanship of Shri Pranab Mukherjee, the then Minister of External Affairs. The committee's recommendation on placement of Lt Cols / equiv in Pay Band IV was accepted and implemented by the Government.

Thereafter, a committee was constituted under the chairmanship of the Cabinet Secretary in 2012, to examine certain pay and pension issues of armed forces personnel. All the recommendations of Cabinet Secretary Committee related to ex- servicemen were implemented. The Committee's recommendations on pay related issues were referred to the 7th CPC.

The improvement of service conditions, pay, allowances and retirement benefits of armed forces personnel is a continuous process, which is examined in consultation with various stakeholders, and on case to case basis.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Rajeev Chandra Sekhar in Rajya Sabha today.

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Pension to retired personnel

Pension to retired personnel

There are demands from the in service and retired Central Armed Police Forces (CAPFs) and Assam Rifles (AR) personnel for extending One Rank One Pension (OROP). CAPF & AR personnel retire only on attaining the age of 57/60 years and they are entitled for pension and other pensionary benefits as per Central Civil Services (Pension) Rules, 1972. These rules are different from the pension rules applicable to Ex-Servicemen. Further CAPF & AR personnel, who are appointed on or after 01/01/2004 are covered under New Pension System (NPS).

The Government has taken several steps for the Central Armed Police Forces (CAPFs) personnel including Next of Kin (NoK) of CAPFs personnel who lay down their lives for the country. Following benefits, inter alia, are given to Central Armed Police Forces (CAPFs) personnel including the Next of Kin (NoK) of those who lay down their lives for the country:-

(i) Ex-gratia lump-sum compensation @ Rs.35 lacs for death on active duty and @Rs. 25 lakhs for death on duty, as the case may be, is entitled to the Next of Kin of the deceased personnel.

(ii) The NoK of the deceased is entitled to get Liberalized Family Pension (i.e. last pay drawn) under Central Civil Service (Extra Ordinary Pension) Rules, 1939 and other pensionary benefits as admissible.

(iii) 5% vacancies are reserved in Group "C" & "D" for compassionate appointments for NoK of the deceased personnel.

(iv) Under the Prime Minister Scholarship Scheme, amount @ Rs.2250/- pm for girls and Rs.2000/- pm for boys is being released to the wards of serving/retired CAPFs personnel. Prime Minister Scholarship is admissible to 1000 girls and 1000 boys.

(v) There is a reservation of 15 MBBS and 02 BDS seats for the wards of CAPFs personnel in the seats of Central Government for these courses.

(vi) Central Police Canteens at various locations in the country have been functioning.

(vii) A Welfare and Rehabilitation Board has been established for the welfare and rehabilitation of CAPFs personnel and their families including differently abled personnel.

This was stated by the Minister of State for Home Affairs, Shri Kiren Rijiju in a written reply to question by Shri Kamal Nath and Shri Jyotiraditya M. Scindia in the Lok Sabha today.

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Performance of Central Public Sector Enterprises (CPSEs) during 2015-16

Performance of Central Public Sector Enterprises (CPSEs) during 2015-16

The Public Enterprises Survey (2015-16), brought out by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India on the performance of Central Public Sector Enterprises was placed in both the Houses of Parliament on 21st. March, 2017. There were 320 CPSEs in 2015-16, out of which 244 were in operation. Rest (76) of the CPSEs were under construction. The major Highlights of the performance of Central Public Sector Enterprises (CPSE), during 2015-16 are mentioned below:

Performance of Central Public Sector Enterprises (CPSEs) during 2015-16.

2015-16	2014-15
Overall net profit of 244 CPSEs is Rs.1,15,767 crore in 2015-16	Overall net profit of 236 CPSEs is Rs.1,02,866 crore in 2014-15
165 CPSEs posted net profit of Rs.1;44,523 crore in 2015-16	159 CPSEs posted net profit of Rs.1,30,364 crore in 2014-15
78 CPSEs incurred net loss of Rs.28,756 crore in 2015 -16	76 CPSEs incurred net loss of Rs.27,498 crore in 2014-15
Total investment in 320 CPSEs stood at Rs. 11,77,844 crore in 2015-16	Total investment in 298 CPSEs stood at Rs. 10,95,554 crore in 2014-15
Dividend paid by CPSEs during 2015-16 is Rs. 70,954 crore	Dividend paid by CPSEs during 2014 -15 is Rs. 56,527 crore

Highlights

• Total paid up capital in 320 CPSEs as on 31.3.2016 stood at Rs. 2,28,334 crore as compared to Rs. 2,13,020 crore as on 31.3. 2015 (298 CPSEs), showing a growth of 7.19%.
• Total investment (equity plus long term loans) in all CPSEs stood at Rs.11,71,844 crore as on 31.3.2016 compared to Rs.10,95,554 crore as on 31.3.2015, recording a growth of 6.96%.
• Capital Employed (Paid up capital plus reserve & surplus and long term loans) in all CPSEs stood at Rs. 19,68,311 crore on 31.3.2016 compared to Rs. 18, 66,944 crore as on 31.3.2015 showing a growth of 5.43 %.
• Total turnover/gross revenue from operation of all CPSEs during 2015-16 stood at Rs 18,54,667 crore compared to Rs. 19, 95,176 crore in the previous year showing a reduction in turnover of 7.04 %.
• Total income of all CPSEs during 2015-16 stood at Rs. 17,64,754 crore compared to Rs. 19, 65,657 crore in 2014-15, showing a reduction in income of 10.22%.
• Profit of profit making CPSEs stood at Rs. 1,44,523 crore during 2015-16 compared to Rs 1,30,364 crore in 2014-15 showing a growth in profit by 10.86%.
• Loss of loss incurring CPSEs stood at Rs.28, 756 crore in 2015-16 compared to Rs 27, 498 crore in 2014-15showing an increase in loss by 4.57 %.
• Overall net profit of all 244 CPSEs during 2015-16 stood at Rs 1,15,767 crore compared to Rs 1,02,866 crore during 2014-15 showing a growth in overall profit of 12.54%.
• Reserves & Surplus of all CPSEs went up from Rs. 7,71,389 crore in 2014-15 to Rs 7,96,467 cores in 2015-16, showing an increase by 3.25 %.
• Net worth of all CPSEs went up from Rs 9,84,409 crore in 2014-15 to Rs. 10,20,737 crore in 2015-16 registering a growth of 3.69 %.
• Contribution of CPSEs to Central Exchequer by way of excise duty, customs duty, corporate tax, interest on Central Government loans, dividend and other duties and taxes increased from Rs 2,00,593 crore in 2014-15 to Rs 2,78,075 crore in 2015-16, showing a growth of 38.63%.
• Foreign exchange earnings through exports of goods and services decreased from Rs 1,03,071 crore in 2014-15 to Rs 77,216 crore in 2015-16, showing a reduction of 25.08%.
• Foreign exchange outgo on imports and royalty, know-how, consultancy, interest and other expenditure decreased from Rs.5,44,561 crore in 2014-15 to Rs.3,88,045 crore in 2015-16 showing a reduction of 28.74%.
• CPSEs employed 12.34 lakh people (excluding contractual workers) in 2015-16 compared to 12.91 lakh in 2014-15, showing a reduction in employees by 4.42%.
• Salary and wages went up in all CPSEs from Rs.1,26,777 crore in 2014-15 to Rs 1,28,263 crore in 2015-16 showing a growth of 1.17 %.
• Total Market Capitalization Market Capitalization (M-Cap) of 46 CPSEs traded on stock exchanges of India is Rs. 11,06,766 crore as on 31.03.2016 as compared to Rs. 13,27,393 crore as on 31.03.2015 showing a reduction of 16.62% .
• M-Cap of CPSEs as per cent of BSE M-Cap decreased from 13.08% as on 31.3.2015 to 11.68% as on 31.3.2016.

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The Union Government has decided to make timely payment of accumulations under the Savings Fund of the Central Government Employee Group Insurance Scheme (CGEGIS)

The Union Government has decided to make timely payment of accumulations under the Savings Fund of the Central Government Employee Group Insurance Scheme (CGEGIS)

The Union Government has decided that in all cases where the service of the retiring Central Government employees has been verified, payment of the accumulation under Savings Fund of Central Government Employee Group Insurance Scheme (CGEGIS) will be made without awaiting confirmation of deduction of each monthly subscription of CGEGIS. This would help in timely payment of accumulations under the Savings Fund of the CGEGIS. The necessary Orders in this regard have been issued by Department of Expenditure, Ministry of Finance on 17.03.2017.

Often delay occurs in payment of dues to the retiring Central Government employees as the existing procedure requires confirmation of deduction of each monthly subscription to the scheme. The present decision of the Union Government is a step towards simplification of procedure as well as to ensure timely payment of savings along with interest under CGEGIS, to the Central Government employees at the time of retirement.

Under the Central Government Employees Group Insurance Scheme, 1980, the accumulations under the component of Savings Fund together with interest thereon are payable to the employees on retirement or on cessation of employment with the Central Government or to their family on death while in service.

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Committee on Rank and Pay Parity

Committee on Rank and Pay Parity

The Government has set up a three member Committee of Officers to look into Equivalence between Service Officers and Armed Forces Headquarters Civil Service (AFHQ CS) officers.

The Committee is likely to submit its findings by 31st March 2017.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Rajeev Chandra Sekhar in Rajya Sabha today.

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Disability Pension for Soldiers

Disability Pension for Soldiers

The 7th Central Pay Commission (CPC) recommended the following on disability pension:

The Commission is of the considered view that the regime implemented post 6th CPC needs to be discontinued, and recommended return to the slab based system. The slab rates for disability element for 100 percent disability would be as follows:

Ranks	Levels	Rate per month (INR)
Service Officers	10  and  above	27000
Honorary Commissioned Officers
Subedar Majors / Equivalents	6 to 9	17000
Subedar / Equivalents
Naib Subedar / Equivalents
Havildar / Equivalents	5 and below	12000
Naik / Equivalents
Sepoy / Equivalents

The above recommendation has been accepted and Resolution dated 30.09.2016 issued accordingly.
The 6th CPC dispensation of the calculation of disability element on percentage basis, however, continues for civil side which has resulted in an anomalous situation. The issue has accordingly been referred to the Anomaly Committee. The disability element which was being paid as on 31.12.2015 will, however continue to be paid till decision on the recommendations of Anomaly Committee is taken by the Government.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Husain Dalwai in Rajya Sabha today.

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7th Pay Commission: CPSEs to spend Rs 20,000 crore on salary hikes

7th Pay Commission: CPSEs to spend Rs 20,000 crore on salary hikes

After getting pay hikes last year on implementation of the 7th Pay Commission, the central public sector enterprises (CPSEs) are likely to spend additional Rs 20,000 crore in the next fiscal year (FY17-18) as recompense to 12 lakh employees.

As per 7th Pay Commission, in the first installment, four lakh CPSE executives will likely to receive salary revision in July with effect from January 1, 2017. The expected cost for the same will be Rs 8,000 crore per year, as reported by The Financial Express.

Additionally, the pay hikes are likely to be followed by a wage revision for over 8 lakh workers which will cost CPSEs nearly Rs 12,000 crore, the report said quoting a source.

As per the report, this salary revision is based on the recommendations of the 3rd Pay Revision Commission (PRC), which constitutes the department of public enterprises, and the exercise will be carried out by each CPSE separately after negotiating with the employee unions.

Last year in June, as per The Economic Times report, the government had appointed a committee to review and revise the structure of salary at CPSEs.

That time, the government had released a notification, which said, The step was taken on recognising that in the prevailing business environment the CPSEs have to be commercially viable and competitive, and that the employees of the CPSEs have to be provided with suitable working conditions, emoluments and incentives to motivate them to strive for further growth, productivity and profitability of their enterprises.

Source: Zee News

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Cabinet clears GST supplementary legislations

Cabinet clears GST supplementary legislations

The Cabinet today cleared four supporting GST legislations, paving the way for their introduction in Parliament as early as today.

The four supporting legislations the Compensation Law, the Central-GST (C-GST), Integrated-GST (I-GST) and Union Territory-GST (UT-GST) would be introduced as Money Bill, sources said.

The GST legislations have been cleared by the Cabinet.

These would be introduced in Parliament this week, could be even today, a source said.
The GST legislations were the only agenda in today's meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.

Sources said the four legislations would be taken up for discussion together in Parliament. Once approved by Parliament, the states would start taking their SGST bill for discussion and passage in the respective state assemblies.

The GST Council, in its previous two meetings, had given approval to the four legislations as also the State-GST (S-GST) bill. While the S-GST has to be passed by each of the state legislative assemblies, the four other laws have to be approved by Parliament.

Passage of all the legislations would pave the way for introduction of Goods and Services Tax (GST) from July 1.

The government is hoping the C-GST, I-GST, UT-GST and the GST Compensation laws will be approved in the current session of Parliament and the S-GST by each of the state legislatures soon.

While a composite GST will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, the revenue would be split between the Centre and the states in almost equal proportion.

This is because central taxes like excise and service tax and state levies like VAT will be subsumed in the GST.

While the C-GST will give powers to the Centre to levy GST on goods and services after Union levies like excise and service tax are subsumed, the I-GST is to be levied on inter-state supplies.

The S-GST will allow states to levy the tax after VAT and other state levies are subsumed in the GST. The UT-GST will also go to Parliament for approval.

The Council has already finalised a four-tier tax structure of 5, 12, 18 and 28 per cent, but the model GST law has kept the peak rate at 40 per cent (20 per cent to be levied by the Centre and an equal amount by the states) to obviate the need for approaching Parliament for any change in rates in future.

Similarly, the cess to be levied on top of peak rate on selected demerit goods like luxury cars for creation of a corpus that will be used for compensating states for any loss of revenue from GST implementation in the first five years, has been capped at 15 per cent.

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