Cabinet approves equivalence of posts in Central Public
Sector Undertakings (PSUs), Banks, Insurance Institutions with Posts in
Government so that the children of those serving in lower categories in
PSUs and other institutions can get the benefit of OBC reservations
The
Union Cabinet chaired by Prime Minister Shri Narendra Modi has given
its approval to the norms for establishing equivalence of posts in
Government and posts in PSUs, PSBs etc. for claiming benefit of OBC
reservations. This addresses an issue pending for nearly 24 years. This
will ensure that the children of those serving in lower categories in
PSUs and other institutions can get the benefit of OBC reservations, on
par with children of people serving in lower categories in Government.
This will also prevent children of those in senior positions in such
institutions, who, owing to absence of equivalence of posts, may have
been treated as non Creamy Layer by virtue of wrong interpretation of
income standards from cornering government posts reserved for OBCs and
denying the genuine non creamy layer candidates a level playing field.
The
Union Cabinet also approved the increase in the present income
criterion of Rs. 6 lakh per annum for applying the Creamy Layer
restriction throughout the country, for excluding Socially Advanced
Persons/Sections (Creamy Layer) from the purview of reservation of Other
Backward Classes (OBCs). The new income criterion will be Rs. 8 lakh
per annum. The increase in the income limit to exclude the Creamy Layer
is in keeping with the increase in the Consumer Price Index and will
enable more persons to take advantage of reservation benefits extended
to OBCs in government services and admission to central educational
institutions.
These measures are a part of the Government's
efforts to ensure greater social justice and inclusion for members of
the Other Backward Classes. The Government has already introduced in
Parliament, a bill to provide Constitutional status to the National
Commission for Backward Classes. It has also decided to set up a
Commission, under section 340 of the Constitution, to sub categorize the
OBCs, so that the more backward among the OBC communities can also
access the benefits of reservation for educational institutions and
government jobs. All these decisions, taken together, are expected to
ensure greater representation of OBCs in educational institutions and
jobs, while also ensuring that the more under-privileged within the
category are not denied their chance of social mobility.
Background:
In
its judgment dated 16.11.1992 in WP(C) 930/1990 (IndraSawhney case) the
Supreme Court had directed the Government to specify the basis, for
exclusion of socially and economically advanced persons from Other
Backward Classes by applying the relevant and requisite socio-economic
criteria.
An Expert Committee was constituted in February 1993
which submitted its report on 10.03.1993 specifying the criteria for
identification of socially advanced persons among OBCs i.e. the Creamy
Layer. The report was accepted by the then Ministry of Welfare and
forwarded to DoPT which issued an OM dated 08.09.1993 on exclusion from
the Creamy Layer.
The OM of 08.09.1993 specifies six categories
for identifying Creamy Layer (a) Constitutional/Statutory post (b) Group
'A' and Group 'B' Officers of Central and State Governments, employees
of PSUs and Statutory bodies, universities, (c) Colonel and above in
armed forces and equivalent in paramilitary forces (d) professionals
like Doctors, Lawyers, Management Consultants, Engineers etc. (e)
Property owners with agricultural holdings or vacant land and/or
buildings and (f) income/wealth tax asessee.
The OM further
stipulates that the said parameters would apply mutatis mutandis to
officers holding equivalent or comparable posts in PSUs, Banks,
Insurance Organizations, Universities, etc. and Government was required
to determine equivalence of positions in these organizations with those
in Government.
Pending the equivalence to the established in these
institutions Income criteria would apply for the officers in these
Institutions.
However, this exercise of determining the
equivalence of posts in Government and posts in PSUs, PSBs etc. had not
been initiated. The determination of equivalence of posts has been thus
pending for almost 24 years.
The matter of formulating equivalence
has since been examined in detail. In PSUs, all Executive level posts
i.e. Board level executives and managerial level posts would be treated
as equivalent to group 'A' posts in Government and will be considered
Creamy Layer. Junior Management Grade Scale-1 and above of Public Sector
Banks, Financial Institutions and Public Sector Insurance Corporations
will be treated as equivalent to Group 'A' in the Government of India
and considered as Creamy Layer. For Clerks and Peons in PSBs, FIs and
PSICs, the Income Test as revised from time to time will be applicable.
These are the broad guidelines and each individual Bank, PSU, Insurance
Company would place the matter before their respective board to identify
individual posts.
PIB
