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Friday, April 29, 2011
LGO Examination scheduled to be held on 29.05.2011 is postponed to 04.09.2011.
CALENDAR OF DEPARTMENTAL EXAMINATIONS: 2011
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LIMITED DEPARTMENTAL COMPETITIVE EXAMINATION (LGOs)-2011
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Review of Alternative/Franchisee Schemes – Rename of ‘Franchisee Outlets’ as ‘Postal Shopees’ – Regarding comments thereon.
No. 40-28/2010-Plg.
Government of India
Ministry of Communications & IT
Department of Posts(Planning Division)
Dak Bhawan, New Delhi – 01
Government of India
Ministry of Communications & IT
Department of Posts(Planning Division)
Dak Bhawan, New Delhi – 01
Dated – 04.04.2011
To
All HoCs
[except Maharashtra]
Subject: Review of Alternative/Franchisee Schemes – Rename of ‘Franchisee Outlets’ as ‘Postal Shopees’ – Regarding comments thereon.
Sir/Madam,
I am directed to say that Directorate is in the process of review of the alternative/franchisee schemes to formulate a consolidated/comprehensive scheme [for urban areas] to make it more attractive/remunerative to the franchisees. In this connection, all the Circles were requested to furnish their comments/suggestions on the proposed review of the schemes. The Maharashtra Circle has given one of the suggestions that ‘Franchisee Outlets’ be renamed as ‘Postal Shopee’ as public are not aware of the word franchisee. You are requested to kindly furnish you comments on the proposed change of name whether it is suitable/acceptable. If not, a suitable name may be suggested and communicate the same to this Directorate by 15th April, 2011. If no reply is received from your circle within the aforesaid time, it will be presumed that the proposed change is acceptable.
Yours faithfully,
(Sunil Kumar Biswas)
ADG (Planning)
Forgetting the roots after climbing the top
Indian Postal Service – Need to Return to its Roots
It is a pleasure to go to one of the post offices anywhere in Europe – small or big. These are places where people come to post parcels and letters in large numbers. The Post Offices are clean and efficiently run and everyone waits patiently in the queue. When you send a letter, it is sure to be delivered in any part of Europe within three days and if you should put a small amount of currency, you can be certain it will not be abstracted en-route. All this is impossible to expect in India.
There are still a lot of things that need to be moved physically and an efficient postal system will help the poorest with a cost effective service without resorting to expensive couriers; the courier industry is incidentally amongst the most profitable in our country.
We in India are increasingly disillusioned with our postal service and for that top management not the one in the field but in New Delhi needs to be faulted. It has lost its script and is now attempting to smarten its urban office Potemkin fashion while neglecting its rural sector where it has enormous strengths and where it massively under-invests.
The Postal Service in India must return to its roots – of serving the people with a variety of services that they need and at costs which they can afford. It is a sad commentary on the management that it has yet to find a way to reach five thousand rupees as inexpensively across India as someone with a bank account can transfer a couple of lakhs of rupees almost instantaneously to another account across the country for less than Rs.50. It is high time the Post Office is run on a PPP model with a lot more empathy for our less well off citizens and with a lot more public oversight than the ineffective formal ones we have in place.
Dr.Uday Balakrishnan
Dr.Uday Balakrishnan recently retired on VRS as Member, Postal Services Board and is now a visiting fellow at the Central European University, Budapest. His interests include financial empowerment of the poor, child labour and contemporary Indian history Courtesy : GKC Blog
Thursday, April 28, 2011
New Pension Scheme for railway employees challenged
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The new pension scheme introduced by the Union Government for railway employees has been challenged in the Madras Bench of the Central Administrative Tribunal.
An employee of the southern railway and Dakshin Railway Employees Union (DREU) have challenged the scheme terming it unconstitutional and invalid.
According to the new scheme, employees appointed on or after 01.01.2004 in the Railways would be governed by the new pension scheme which would be governed by 'Pension Fund Regulatory Development Authority' which would function under the overall control of Ministry of Finance. According to the new scheme, 10% of Pay and DA of an employee would be deducted and an equal amount would be contributed by the central government.
The entire pension scheme is being authorized through various executive orders, which cannot be done to govern the retirement benefits of government employees which has to be in tune with Articles 41 to 43 of the Constitution, alleges the application. The notifications issued by the government constituting PFRDA dated 10.10.2003 and 14.11.2008 are unconstitutional, as they have not been issued by the President of India and authenticated as required under Article 77 of the Constitution and the ordnance sanctioning this also lapsed in 2005, which renders the entire process without authority of law alleges DREU in its application.
The new pension scheme, which is mandatory to government employees curtails them from exercising any option said V. Daniel, a Helper in Southern Railway. According to the New Pension Scheme, any citizen of India can join the Scheme and they can choose their Fund Managers or opt for different schemes whereas no such option is available to government servants.
The application also raised serious apprehension over the way in which their funds are being exposed to market risk and they cite the risk clause in the offer document of the NPS which says that "there are no guarantee on investments and investments involve risks such as trading volumes, settlement risk, liquidity risk, default risk, including possible loss of principal'. The application also cited the statement of PFRDA Chairman that pension fund managers regulated by PFRDA are not giving minimum guarantee on returns in their products.
Besides seeking quashing of the notification and grant retiral benefits to all employees on par with those who joined prior to January 1994, the application sought an interim injunction against the notification and also to release family pension and gratuity to certain employees who died after the introduction of the new scheme
The matter came up before the Madras Bench of the CAT comprising Members K. Elango and R. Satapathy. Counsel R. Vaigai advanced arguments on behalf of the DREU and highlighted how the funds of the employees are being entrusted with private players and are subjected to undue risks. She also apprised the Bench that the government as an employer cannot transfer its funds to a private player and expect him to discharge government's obligation.
After hearing the arguments on behalf of the applicant and of the central government, the Bench ordered interim relief directing the railway authorities to offer gratuity and family pension to all employees who joined after January 2004 within four weeks from the date of application and posted the matter for June 1.
The new pension scheme introduced by the Union Government for railway employees has been challenged in the Madras Bench of the Central Administrative Tribunal.
An employee of the southern railway and Dakshin Railway Employees Union (DREU) have challenged the scheme terming it unconstitutional and invalid.
According to the new scheme, employees appointed on or after 01.01.2004 in the Railways would be governed by the new pension scheme which would be governed by 'Pension Fund Regulatory Development Authority' which would function under the overall control of Ministry of Finance. According to the new scheme, 10% of Pay and DA of an employee would be deducted and an equal amount would be contributed by the central government.
The entire pension scheme is being authorized through various executive orders, which cannot be done to govern the retirement benefits of government employees which has to be in tune with Articles 41 to 43 of the Constitution, alleges the application. The notifications issued by the government constituting PFRDA dated 10.10.2003 and 14.11.2008 are unconstitutional, as they have not been issued by the President of India and authenticated as required under Article 77 of the Constitution and the ordnance sanctioning this also lapsed in 2005, which renders the entire process without authority of law alleges DREU in its application.
The new pension scheme, which is mandatory to government employees curtails them from exercising any option said V. Daniel, a Helper in Southern Railway. According to the New Pension Scheme, any citizen of India can join the Scheme and they can choose their Fund Managers or opt for different schemes whereas no such option is available to government servants.
The application also raised serious apprehension over the way in which their funds are being exposed to market risk and they cite the risk clause in the offer document of the NPS which says that "there are no guarantee on investments and investments involve risks such as trading volumes, settlement risk, liquidity risk, default risk, including possible loss of principal'. The application also cited the statement of PFRDA Chairman that pension fund managers regulated by PFRDA are not giving minimum guarantee on returns in their products.
Besides seeking quashing of the notification and grant retiral benefits to all employees on par with those who joined prior to January 1994, the application sought an interim injunction against the notification and also to release family pension and gratuity to certain employees who died after the introduction of the new scheme
The matter came up before the Madras Bench of the CAT comprising Members K. Elango and R. Satapathy. Counsel R. Vaigai advanced arguments on behalf of the DREU and highlighted how the funds of the employees are being entrusted with private players and are subjected to undue risks. She also apprised the Bench that the government as an employer cannot transfer its funds to a private player and expect him to discharge government's obligation.
After hearing the arguments on behalf of the applicant and of the central government, the Bench ordered interim relief directing the railway authorities to offer gratuity and family pension to all employees who joined after January 2004 within four weeks from the date of application and posted the matter for June 1.
Monday, April 25, 2011
Chq Demonstration
Effect of dharna Andolan launched by the
NUPE Postmen & Group ‘D’/MTS Union on 6-4-2011 regarding the
items of Memorandum submitted to the Secretary, Post,
vide communication No. NU/P-IV/Demonstration/2/2011 dated 18-3-2011
NUPE Postmen & Group ‘D’/MTS Union on 6-4-2011 regarding the
items of Memorandum submitted to the Secretary, Post,
vide communication No. NU/P-IV/Demonstration/2/2011 dated 18-3-2011
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CLOSURE OF POST OFFICES
9,797 Post Offices Facing Closure?
Daijiworld Media Network Kasargod, Apr 23: It is gathered, that the central government has given initiation to a scheme of pruning down the number of post offices in the country. As per the new policy of the government, it believes that a post office every five kms will be sufficient to serve the people. If this policy is implemented, 9,797 post offices will face imminent closure, it is learnt.
Some post office employees’ organizations have alleged that the government is planning to privatize post offices in rural places, by entrusting their operation to private parties on commission basis. Political parties claim that the ‘Postal and Courier Service Bill-2010’ proposed to be moved in the next session of the parliament, is an effort to privatize postal services in the country.
Daijiworld Media Network Kasargod, Apr 23: It is gathered, that the central government has given initiation to a scheme of pruning down the number of post offices in the country. As per the new policy of the government, it believes that a post office every five kms will be sufficient to serve the people. If this policy is implemented, 9,797 post offices will face imminent closure, it is learnt.
Some post office employees’ organizations have alleged that the government is planning to privatize post offices in rural places, by entrusting their operation to private parties on commission basis. Political parties claim that the ‘Postal and Courier Service Bill-2010’ proposed to be moved in the next session of the parliament, is an effort to privatize postal services in the country.
Left parties have charged the central government of aiming at providing help to capitalists and mega courier companies through the said measures. They fear that once the above procedures are through, postal services will hit a new low, and thousands of employees of postal department will lose their jobs.
Sunday, April 24, 2011
Amendment to Rules of CCS ( Extraordinary Pension) Rules. 1939 - Issue of Notification dated 15th February, 2011, published in the Gazette of India on
Clarification regarding Fresh empanelment of private hospitals and revision of package rates applicable under CGHS.
Safety Related Retirement Scheme covering Drivers, Gangmen and other safety categories with Grade Pay of Rs.1800/-.
Thursday, April 21, 2011
Summary record
Summary record of discussions held during the third meeting of the Joint Committee on MACPS held on 15th March, 2011 under the Chairpersonship of the Joint Secretary (Estt.) DOPT.
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Treating the posts under UPSC, CVC, EC and CIC as Central Staffing Scheme Posts - Ammendment to CDG dated 28-11-2007.
Entities are regulated, not products: PFRDA Chief .
The issue of regulating pension products of insurance firms and mutual funds will not snowball into a major turf war between watchdogs. This is because entities, not products, are regulated in India under the current regulatory framework, said Yogesh Agarwal, chairman, Pension Fund Regulatory and Development Authority (PFRDA).
“We have not reached a stage where products would be regulated. Only entities are regulated,” said Agarwal told Business Standard. He said pension products offered by insurance companies would continue to be regulated by the Insurance Regulatory and Development Authority (Irda), while those offered by mutual funds would be regulated by the Securities and Exchange Board of India (Sebi)
Agarwal said he had not referred any issue about the turf war with other regulators to the Financial Stability and Development Council (FSDC).
When contacted, Irda Chairman J Harinarayan also said he was not aware of any such matter referred to FSDC. “First, one needs to go through the PFRDA Bill properly. It does not make any sense,” he said.
The PFRDA Bill, tabled in Parliament last month, seeks to empower PFRDA to regulate the New Pension System (NPS) and to carry out promotional, developmental and regulatory functions related to pension funds.
“There is no such provision in the (PFRDA) Bill which could bring pension plans offered by the insurance companies under the purview of PFRDA,” said a senior Irda official.
Pension plans accounted for more than 30 per cent of sales for life insurance companies till the new regulations, based on guaranteed returns, were introduced by Irda in September 2010.
Sebi regulates mutual funds, which manage over Rs 1,000 crore of assets under pension funds.
Agarwal was quick to say NPS (regulated by PFRDA) would attract subscribers from pension systems offered by others.
“You have already seen a decline in the contribution of pension schemes offered by insurance companies because now, you have a very scientifically-designed product in the NPS. Already, there is a move among the people to shift (to NPS). NPS is seen as a much superior product. Financial analysts are saying that. It is also the best financial product available in the market. I see a very significant movement from those products to NPS,” he said, adding other products were flourishing in a period when the NPS was not introduced.
He said once the benefits of NPS would be available, particularly taxation benefits introduced in Budget, 2011, it would be clear to everyone that NPS was the best pension product available in the market. Budget 2011 provided for deducting an amount equal to the contribution to employees' NPS from an employer's business income, if it did not exceed 10 per cent of employees' salary in the previous year.
NPS was introduced for central government employees from January 1, 2004. Employees who had joined central government services since that date had to choose NPS. Unlike the old pension system, even though there are no assured benefits, there is a defined contribution from employees under the NPS. Till now, 27 states and union territories have notified the NPS. The government had also extended NPS to every citizen on a voluntary basis.
If case a turf war on pension products breaks out between the PFRDA and Irda or Sebi, it would be the second major row over jurisdiction. A spat between the insurance regulator and the market watchdog had broken out last year over the regulation of unit-linked insurance products (Ulips), following which, the government had to issue an ordinance empowering Irda to regulate Ulips.
-Courtesy – Business Standard, dated – 19.04.2011
Wednesday, April 20, 2011
REVISION OF STITCHING CHARGES
F.No. 141 1/2010-JCA2
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel 86 Training)
North Block, New Delhi
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel 86 Training)
North Block, New Delhi
Dated the 18" April, 2011
OFFICE MEMORANDUM
Subject: Revision of Stitching Charges.
The undersigned is directed to say that based on a demand raised by the Staff Side, in National Council (JCM), the question of revising the Stitching Charges of Uniforms, supplied to Common Categories of employees (Multi-Tasking Staff - erstwhile Group 'D' posts of Peon, Daftry, Jamadar, Junior Gestetner Operator, Frash, Chowkidar, Safaiwala, Mali etc. and Staff Car Drivers, Dispatch Riders etc.) in the Central Secretariat and its Attached and Subordinate Offices, has been examined in consultation with the Ministry of Finance. Consequently, it has been decided to enhance the rates of stitching charges, with effect from 1st April, 2011 thereby modifying the earlier instructions issued vide this Ministry's O.M. No. 14/3/2006-JCA dated 28" September, 2006.
2. The revised rates of stitching charges, with effect from lst April, 2011, will be as under:-
Winter
(1) Buttoned-up-coat and pant -Rs. 750
(2) Over Coat for Staff Car Drivers - Rs. 600
(3) Ladies half-coat -Rs. 600
Summer
(4) Pant (Terricot) - Rs.135
(5) Bush Shirt (Polyvastra) -Rs. 60
(6) Blouse -Rs. 45
(7) Petticoat -Rs. 30
(8) Salwar Kameez - Rs. 90
Protective clothing [for Malis/ Bhistiesl
(9) Pyjama -Rs. 24
(10) Short (Half-Pant) -Rs .60
(11) Shirt (Cotton) -Rs. 45
3. It may please be noted that the reimbursement of Stitching Charges at the-prescribed rates should be done only after the stitched uniforms are produced and are duly stamped, with indelible ink, at an appropriate place on the wrong side of the stitched dress, for identification. A proper record and procedure should be evolved to ensure that the employees produce the stitched uniforms within a reasonable period (say one month) after the cloth is supplied to them.
4. This issues with the concurrence of Department of Expenditure vide ID No. 5(1)/E.I1 (A)/2009 dated 08.04.201 1.
Hindi version will follow.
Sd/-
(Dinesh Kapila)
Director (JCA)
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IMPLEMENTATION OF AML/CFT NORMS IN SMALL SAVINGS SCHEMES AND REMITTANCES IN POST OFFICES-CARRYING OUT INSPECTION AND ITS FURTHER REVIEW REGARDING.
Sunday, April 17, 2011
ToAll General Secretaries/Circle Secretaries/ Divisional Secretariesof affiliated Unions/ Associations FNPO
Dear colleagues
1Hope that all of you might have reced the copy of the Central JCA Circular dated 31.03.2011 regarding the Indefinite All India Strike from 5th July 2011. Preperations for the strike should start right from now onwards. Don't wait up to the last minute. Conduct the following campaign and agitational programmes in a most effective manner.
(i) Submission of memorandum containing Charter of demands on 20.04.2011. Copy of the memorandum will be exhibited in the website before 18.04.2011. Download the memorandum and charter of Demands (already exhibited in the website) and submit it to the CPMGs/Regional PMGs/Divisional heads. Mass demonstrations should be organized in front of all Chief PMGs, Regional PMGs and Divisional offices on 20.04.2011.
2. Circle level and Divisional level JCA should meet immediately and chalk out joint programmes. FNPO/NUPE P4 should take initiative for convening the JCA meeting.
3. Maximum participation of employees should be ensured in the Mass Dharna on 25.05.2011. Organize dharna programme in front of all Chief PMG/PMG/Divisional offices in an effective manner.
4. In the month of June, Circle level joint convention of all Circle Secretaries, Divisional Secretaries and Circle Union office bearers of NFPE, FNPO and GDS Unions shall be organized at the Circle Head quarters. Central JCA leaders of NFPE, FNPO & GDs Unions shall address the joint conventions. The dates of the joint conventions at Circle level will be finalized by the Central JCA meeting on 20.04.2011.
5. Next meeting of the Central JCA will be held at New Delhi on 20.04.2011 after submission of joint memorandum and charter of demands to Secretary, Department of Posts.
6. Divisional/Branch level General body meetings, conventions, group meetings, office to office campaign, publishing notices and posters etc may be conducted to educate the employees on the charter of demands.
7. The managing bodies of all Unions/Associations at Circle/Divisional level may be held and planned action programme may be charted in a most democratic manner.
T N RAHATE
GENERAL SECRETRY
& PRESIDENT FNPO
Problems faced by the Postal and RMS Employees – Submission of Charter of Demands – regarding
IMPORTANT/URGENT
Copy of the Memorandum to be submitted to Secretary, Department of Posts, CPMGs/PMGs/Divisional Heads on 20.04.2011
JOINT COUNCIL OF ACTION NATIONAL FEDERATION OF POSTAL EMPLOYEES FEDERATION OF NATIONAL POSTAL ORGANIZATIONS ALL INDIA POSTAL EXTRA DEPARTMENTAL EMPLOYEES UNION NATIONAL UNION OF GRAMIN DAK SEVAKS NEW DELHI No. JCA/AGTN/2011 Date – 20.04.2011
To,
Ms. Radhika Doraiswamy Secretary
Department of Posts Dak Bhawan,
New Delhi – 110001 Madam,
Sub: - Problems faced by the Postal and RMS Employees – Submission of Charter of Demands – regarding .
Ref: - Our Letter No. JCA/AGTN/2011 dated 01.04.2011
The joint meeting of the National Federation of Postal Employees (NFPE), Federation of National Postal Organisations (FNPO) and GDS Unions has reviewed the situation prevailing in the Department of Posts and has decided to organize agitational programmes culminating in indefinite strike from 5th July 2011 for realization of the genuine demands of the Postal and RMS Employees and also to stop the disastrous policy offensives unleashed by the authorities such as closure/merger of Post offices/RMS offices, outsourcing, contractorisation etc. we have already submitted a letter dated 01.04.2011 detailing the issues which are agitating the minds of the entirety of Postal/RMS employees including Gramin Dak Sevaks. Accordingly, we hereby submit a Charter of Demands containing the items which are to be discussed and settled amicably, failing which we will be compelled to resort to agitational programmes as mentioned in our letter dated 01.04.2011.
With regards,
Yours faithfully, .
| M. Krishnan Secretary General, NFPE | D. Theagarajan Secretary General, FNPO |
|---|---|
| K. V. Sridharan General Secretary,AIPEU Group‘C’ | D. Kishan Rao General Secretary,NAPE Group ‘C’ |
| Ishwar Singh Dabas General Secretary AIPEU -Postmen & MSE/Group ‘D’ | T. N. Rahate General Secretary NUPE Postmen, MTS & Group ‘D’ |
| Giriraj Singh General Secretary AIRMS & MMS EU Group ‘C’ | D.Theagarajan General Secretary R-3, FNPO |
| P. Suresh General Secretary AIRMS & MMS EU MG & Group ‘D’ | A. H. Siddique General Secretary R-4,FNPO |
| Pranab Bhattacharjee General Secretary AIPAOEU–NFPE | O.P.Khanna General Secretary AIPAOA(FNPO |
| S. S. Mahadevaiah General Secretary AIPEDEU | P.U.Muralidharan General Secretary GDS – NUPE |
| T. Satyanarayanan General SecretaryAIPAEA | H.L. RAMTEKE General Secretary AIPAOA |
| S. Appanraj General Secretary AIPSBCOEA | S. Sambandam General Secretary NASBCO |
| S. A. Raheem General Secretary AIPCWEA | Pratha Pritam Ghorai General Secretary NUCWEA |
Saturday, April 16, 2011
REPLY FROM DEPARTMENT OF POST TO JCA Late NO. JCA/AGTN/2011 Dated 01.04.2011 MENTIONED BELOW.
Submission of charter of demands accompanied by agitational programme by Joint Council of Action comprising NFPE, FNPO, AI Postal Extra Departmental Employees Union and National Union of Gramin Dak Sevaks- Regulation thereof. .
Limited Departmental Competitive Examination for promotion to the cadre of Postmaster Grade-1 2011 to be held on 12th June 2011
Ltd Departmental Competitive Exm (LGO) 2011 for the vacancies of the year 2010 for promotion to the cadre of Postal/Sorting Assistants to be held on
29th May 2011 
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Promotion of Personal Assistant (PA) of CSSS to the Private Secretary (PS) Grade of CSSS on ad-hoc basis-reg.
Grant of Dearness Relief to Central Government pensioners who are in receipt of provisional pension or pension In the prevised scale of 5 CPC w.e.f. 1.1.2011.
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Wednesday, April 13, 2011
Press Information Bureau
Government of India
Ministry of Communications & Information Technology
11-April-2011 14:18 IST
Progress Report on the 100-Days Plan of Action of Ministry of Communications & It Announced on January 01 This Year
The Union Minister of Communications & IT, Shri Kapil Sibal today held a press conference to present the Progress Report of the Ministry in terms of achievements made against 100-days Plan of Action announced by him on January 01, 2011. The point-wise Report Card presented by the Minister is as under:
Department of Telecommunications
Action Point - 1
We will hold consultations with key stakeholders to evolve a clear and transparent regime covering licensing, spectrum allocation, tariffs/pricing, linkage with roll out performance, flexibility within licenses, spectrum sharing, spectrum trading, MVNOs, unlicensed bands, M&A, etc. in a technology agnostic environment after due consideration of TRAI recommendations in this regard. Interest of the ‘Aam Aadmi’ would be the prime consideration.
The Department of Telecommunications (DoT) received Telecom Regulatory Authority of India (TRAI) recommendations dated 8.2.2011 on spectrum pricing in continuation of the earlier TRAI recommendations dated 11.05.2010 on spectrum management and licensing framework. A Round Table Conference was held on 8.3.2011 by the Minister of Communications & IT with the key stakeholders on issues of licensing and spectrum. After the Round Table Conference, the verbatim of the discussions held was posted on website of DoT. The views expressed by the stakeholders during the Round Table Conference are being examined in DoT by the Internal Committee under the Chairmanship of Member (Technical) of the Telecom Commission.
Action Point – 2
To ensure availability of spectrum for telecom industry, we will initiate a dialogue with Department of Space/Information & Broadcasting/Defence, PSUs on vacation of spectrum and for identification of Defence Band and Defence Interest Zone. National Frequency Allocation Plan 2011 (NFAP) shall be released. Spectrum allocations, availability and status of pending applications for spectrum shall be published on the department’s web site. Draft National Frequency Allocation Plan (NFAP) 2011 has been finalised. The list of pending applications for spectrum in respect of 2G and 3G have been uploaded on the website on 10.02.2011.
To ensure the availability of spectrum for telecom industry, the consultations with Department of Space and MIB are in progress. The Expert Committee will be submitting its report shortly.
Discussions are on with Power Grid Corporation of India Ltd. (PGCIL) for vacation of 10 to 12 MHz in different circles to make one chunk of 20 MHz.
Action Point - 3
Immediate steps will be taken to resolve outstanding security issues. Steps will be taken to enable operators to launch 3G services in their entire plenitude without delay. Security issues regarding telecom equipment procurement, messenger services and subscriber verification will be resolved. Steps will be taken to establish the Central Monitoring System which will facilitate and prevent misuse of lawful interception facility.
The DoT has already issued letters to the service providers for giving their undertaking with regard to launching of 3G Services. Reliance, Tata and Airtel have already given its undertaking.
Proposal for establishing Central Monitoring System (CMS) has been put up for approval of competent Authority.
With respect to the issues pertaining to the messenger services, Research in Motion (RIM) has offered a solution in February, 2011 which are under examination.
Regarding security template the feedback has been obtained from telecom service providers and vendors which is being examined in DoT.
Draft amendment of licence to take care of security issues has been sent to the Ministry of Home Affairs (MHA) on March 24, 2011 for their comments and will be finalised soon after.
Action Point - 4
11 years have passed since NTP ’99 and many changes have taken place thereafter. Action will be initiated to formulate a comprehensive Telecom Policy 2011 including the recognition of Telecom as infrastructure and as an essential service, encouraging Green Telecom, steps to accelerate migration from IPv4 to IPv6 at the earliest, release of IPv6 standards by Telecom Engineering Centre for implementation in the country, etc.
(i) DoT has already initiated the process to formulate a comprehensive National Telecom Policy (NTP) 2011. This will take into account the changes that have taken place in the industry since NTP 1999. A Committee has been constituted with Additional Secretary (T) and Advisor (T) as the co-chairman and DDGs as Members. Two rounds of the meetings have already taken place since then and eight teams have been constituted to work on specific areas.
IPv6 standards have been released to accelerate the migration from IPv4 to IPv6. Action Point - 5
All possible efforts will be made to fill up Board Level vacancies in PSUs and for greater participation of BSNL/ MTNL and C-DOT in national and socially important programmes, while addressing structural issues, improving internal efficiency and financial performance of BSNL/ MTNL.
Close monitoring and follow up is being done to ensure filling up of board level vacancies in PSUs. Filling up the post of CMDs of BNSL and MTNL has been taken up on priority basis and will be finalised shortly. The post of Director (HR), BSNL and Director (F), ITI have been filled up. The proposal for non-official Directors in BSNL/MTNL/ITI/TCIL have also been drawn up. Both BSNL/MTNL have been given roadmap for improving their internal efficiency. The proposal of Director (F), TCIL and Director (HR), ITI are also in advanced stage.
Action Point - 6
Country-wide launch of Mobile Number Portability (MNP).
The Prime Minister of India launched MNP on Pan India basis on January 20, 2011 in Delhi.
Action Point - 7
Vigorous measures will be taken to address public concerns about health hazards due to the EMF radiation from Mobile towers including laying down relevant standards, supplementing equipment with Telecom Enforcement, Resource and Monitoring (TERM) Cells and ensuring adequate field-testing.
The report of the Inter-Ministerial Group on EMF radiations has been put up on the website of the Ministry for seeking comments. Feedback has been received which is being examined and will be finalised shortly.
Action Point - 8
Formulation of a package of measures to promote manufacturing of telecom equipment in the country.
TRAI has circulated a consultation paper on promotion of manufacturing of Telecom equipment in the country. After receiving the recommendations of TRAI in this respect, DoT will organise Round Table Conference with key stakeholders to formulate the package of measures for promoting manufacturing of Telecom Equipment. Sectoral Innovation Council has been set up under the Chairmanship of ED, C-DOT with participation from the Industry representatives to give impetus to innovations and R&D in telecom sector within the country.
Certain initiatives taken by Department of Information Technology (DIT) in this regard are as follows:
Policy initiatives for setting up of Semi-Conductor Fabs
Special incentive/package to promote electronic manufacturing
Inter-ministerial consultation is being done to provide preferential access to “Indian Electronic Products/Manufactured-in-India Electronics Products” for all government procurement and procurement by Government licensee/PSUs.
Action Point - 9
Launch of a Wireless Broadband Scheme scheme by USOF to provide wireless broadband coverage to about 5 lakh villages, leveraging the existing passive infrastructure created for mobile telephony in rural and remote areas.
The wireless broadband scheme for providing wireless broadband coverage to about five lakh villages leveraging the existing PSUs infrastructure has already been approved and will be launched shortly.
Action Point – 10
Concrete steps towards finalization of National Broadband Plan including strategy for implementation and initiation of steps for roll out of Optical Fibre After receiving the recommendation of TRAI on National Broadband Plan on 08.12.2011 as well as the report of the CII on broadband, the Round Table Conference was held by Hon’ble MOC&IT on 19.01.2011. Thereafter a scheme for creation of National Optical Fibre Network (NOFN) for providing broadband connectivity to the panchayats by extending the existing optical fibre network to panchayats utilising the USO fund has been formulated. This proposed scheme has also been deliberated by Hon’ble MOC&IT along with Shri Sam Pitroda, Adviser to PM on Public Information, Innovation and Infrastructure, on 30.03.2011 with key stakeholders including telecom service providers. Under this scheme it is proposed to set up a High Level Committee to steer and coordinate all the activities related to the creation and implementation of NOFN.
Department of Information Technology
Electronics Hardware Manufacturing
In order to promote Electronics Systems Design and Manufacturing (ESDM) in the country, Department of Information Technology has taken up 5 Key Initiatives. The progress on these initiatives is as below:
1. Setting up a National Electronics Mission (NEM) with the objective to facilitate development of ESDM capability to meet the target of USD 400 Billion in the next 10 years. Draft paper on setting up of NEM has been finalized.
2. Modification of Special Incentive Package Scheme to enhance investments in the Electronics Ecosystem with the objective to promote entire ESDM sector i.e, products and inputs required for manufacturing of these products in Electronics Manufacturing Clusters. Draft scheme has been prepared after consultations with stakeholders.
3. Working out modalities to attract investment to set up Semiconductor Wafer Fabrication (FAB) Units: An Empowered Committee (EC) with a mandate to identify potential investors and technologies is proposed to be set up. The EC after interacting with the potential investors will crystallize the nature and quantum of Government support in physical/financial terms and recommend to the Government the course of action to attract investments in the sector. Cabinet Note for setting up of an Empowered Committee has been finalized. In order to facilitate EC, India Semiconductor Association (ISA) has entrusted Keystone Strategies LLC, USA with the study on attracting investment for setting up of semiconductor wafer fabrication facilities in the country in February 2011. The study shall be completed by the end of April, 2011.
4. Setting up an Electronics Development Fund to promote innovation, R&D, Indian IP and development of Indian Microprocessor with the objective to create an eco-system to promote domestic innovation and manufacturing in the highly dynamic electronics industry. The draft Detailed Project Report (DPR) is under preparation.
5. Prepare a proposal to provide preferential access to domestically produced electronics products for government procurements and procurement by Government Licensees, PSUs etc.: The proposal to provide 30% preference in value terms to “Indian Electronic Products”/ “Manufactured–in–India Electronic Products” in Government Procurement (except Defence Procurement), with an objective to promote indigenous manufacturing of electronics hardware has been finalized. The clearance of Committee of Secretaries (COS) has been obtained. The draft Cabinet Note has been prepared and sent for Inter-Ministerial consultations.
Human Resource Development (HRD)
DIT has framed schemes for enhancing the capacity of its institutions viz., CDAC and DOEACC Society with focus on North-Eastern Region as well as setting up of ICT Academies across various States/UTs. The views of other Departments/Ministries are being obtained to finalise the schemes. These schemes are being framed in the context of a target of 10 million people to be trained in IECT by 2022 by the Department as part of the National Skill Development Initiative.
Cyber Security
The Information Technology (Amendment) Act, 2008 was notified on October 27, 2009 alongwith the rules in respect of certain important sections in respect of information, blocking of information from public access, rules & regulations for the Chairman and Members of the Cyber Appellate Tribunal and constitution of Indian Computer Emergency Response Team. The rules in respect of section 43A pertaining to protection of sensitive personal data and implementation of best security practices by body corproates, Section 79 – Safeguards and due diligence to be observed by service providers and other intermediaries and e-Governance public private partnership – service charges have been framed and were put on the website on February 05, 2011 and public comments were invited upto March 15, 2011. The draft rules were widely covered by media and lots of comments were received. These comments have been incorporated and the rules have been finalized. These rules aim to provide rules for protection of sensitive personal information and help in promotion of services being provided by the service providers. A set of three manuals for creating basic awareness and standard procedures for seizure, acquisition and analysis of digital evidence during investigation of Cyber Crimes have been prepared. The manuals adequately address the various legal provisions, Dos and Don’ts and best practices. The manuals have been evolved in a generic tool specific manner and the content is presented in a simple format so that it can be used primarily by Law Enforcement Officers and Computer Forensic Scientists who would be doing the investigation in the field. The manuals can also be used by Lawyers, Prosecutors and Judges who are making efforts to become more familiar with technical, legal and evidential aspects of investigating and prosecuting cyber crimes. The copies of the manuals would be made available to all Police Stations, Central and State Forensic Labs and Courts. STQC- SPV Lab
Standardisation, Testing, Quality & Certification (STQC) Directorate, Department of Information Technology, Govt. of India has been working in close collaboration with and support of Ministry of New and Renewable Energy (MNRE) to provide testing and qualification services to the Solar Photo Voltaic industries in the country. To meet these objectives, facilities have been created for testing of Solar Photo Voltaic modules and other solar products namely solar inverters, lantern, home light, street light and battery as per national and international standards. STQC test laboratories at Bengaluru, Kolkata and Hyderabad now serve the testing requirements to varying degrees.
The test facilities cover the electrical and optical performance of the products under a variety of environmental conditions, mechanical loading etc, as per applicable standards. The test schedules establish the quality and reliability of the products for a wide range of application environments.
STQC- Biometric Lab
The Unique Identification Authority of India (UIDAI) has been mandated to issue Unique IDs to every resident of the country. UIDAI has selected biometrics as a primary method to check for duplicate identity record. For the purpose of enrolment, large number of biometric devices (cameras, finger print scanners and iris cameras) will be used across the country. The quality of Biometric information will depend on the quality of device and processes employed in obtaining biometric images. Testing of Biometric Devices will provide assurance of device quality, as these devices are required to operate consistently in various harsh environment conditions .The tests carried out to ensure the quality are Physical, Image Quality, Environmental (Durability /Climatic), Safety, Electro Magnetic Compatibility, Security, Functional, Performance, Interoperability, and Ease of use .
The objective of Testing and Certification of Biometric Devices for UID project is to facilitate availability of quality assessed Biometric Devices to enrolment agencies. This testing & certification provides confidence that certified devices are reliable, seamlessly integratable with the system and are interoperable.
A Biometric Devices Test Laboratory has been established at electronic centre and Development centre Mohali to test devices as per UIDAI requirements and International standards. The laboratory is equipped with the state of art test facilities to test these devices. Test Engineers are trained for conducting multidisciplinary test like Image quality, Environmental test, Performance and Electro Magnetic Compatibility Tests etc Department of Posts
[ IT MODERNIZATION PROJECT India Post has an approved Plan Project with an outlay of R.1877.2 Crore for IT Modernization Project.
The project has following components:
Development of integrated modular scalable applications for mail, banking, Postal Life Insurance advanced financial services and ERP solutions for accounts and HR Operations of the Department.
Provision of ICT devices in rural post offices with required applications for performing postal, banking, insurance, retail operations.
Establishment of IT infrastructure of Data Centre and Disaster Recovery Centre and networking of all Post Offices including Branch Post Offices in the rural areas.
Provision for training, change management, capacity building of the employees of the department along with setting up of the Project Management units of Department, Circle, region and Division levels for smooth and timely implementation of the project
(a) 100 Days Agenda finalized on January 01, 2011 included selection of vendors for the following solutions:- Customer Interaction Management Solution Mail Operation Solution Human Resource Management Solution and Finance and Accounts Solution Banking and Postal Life Insurance Solution Change Management Establishment of Data Centre Rural ICT Service Integrator Network Integrator (b) Status of compliance Customer Interaction Management Solution Objectives:
To enable 24x7 transactions for customers through web portal, call centres and ATMs.
Status:
Vendors have been shortlisted. RFP will be issued on April 15, 2011. Mail Operations Solution
Objectives:
This will provide full article visibility across the supply of chain – from booking to delivery
It will help improve revenue generation through new services/products e.g., Logistics Post.
The solution will increase number of delivery channels for services/products, e.g. web portal and call centre.
Status:
Vendors have been shortlisted. RFP will be issued on April 15, 2011. Enterprise-wide Human Resource Management Solution and Finance & Accounts Solution
Objective:
The solution would enable one single source of data across Department of Posts by online data capture and real time reconciliation The solution would enable centralized payroll processing. The solution would help the Department of Posts move from cash based to accrual based accounting system.
The Department Recruitment process would be streamlined. Status:
Vendors have been shortlisted. RFP will be issued by April 15, 2011 Banking and Postal Life Insurance Solution: Banking Solutions objectives It will lead to Centralized processing of transactions/data, ATMs, Mobile Banking and Real time Banking. This will also enable e-commerce and web channels for customers.
Postal Life Insurance Solution objectives It enables the complete insurance solution by eliminating delays and errors. This will enable the interaction through multiple channels, The solution would also enable safer and faster transactions including premium collection and disbursement.
Status:
RFP has been issued. Technical evaluation of Banking Solution will be completed by April 30, 2011. Change Management Objective
Change Management for the India Post 2012 program will focus on effective management of change in technology and business process as a result of introduction of the IT solutions. Establishment of Data Centre
Objective
Networking of all 1.55 lakh post offices
Status
RFP has been issued. Process of evaluation of bids is going on. Rural ICT Service Integrator
Objective
To provide ICT services of Postal, Banking and Insurance in rural post offices
Status
RFP has been issued. Technical evaluation of bids will be completed by April 30, 2011.
Network Integrator
Status
RFP has been issued on April 06, 2011
COMPUTERIZATION OF 9,600 POST OFFICES Orders have been placed for supply of computers to 9,600 post offices. Supply has commenced.
WHITE LABEL PRE-PAID CARDS The Department is going to introduce White Label Pre paid cards in collaboration with banks.
Objective
The objective of launching this card is to leverage cash handling expertise and the network of India Post in order to facilitate non-cash based transactions for purchase of products and services at retail outlets across the country and to earn revenue through value added service.
This card will be magnetic strip based loaded with pre-determined amount in rupees and could be operated at merchant locations, ATMs and designated post offices.
Status
Department of Posts has got approval from the RBI. Partner banks are awaiting the approval from RBI.
FLAT RATE BOXES
100 days agenda to introduce Pre-paid parcel boxes for domestic parcels for 1 Kg, 2.5 Kg and 5 Kg. The boxes will be sold through more than 800 post offices across the country.
PASSENGER RESERVATION SYSTEM (PRS) - 100 days Agenda Railway Passenger Reservation System (PRS) to be provided through 71 more post offices (in addition to the existing 120 post offices) by March 31, 2011 to benefit people who are living away from Railway Booking Counters.
Status
Railway Passenger Reservation System has been provided to 12 more post offices.
UP-GRADATION OF SPEED POST CENTERS - 100 days Agenda 17 more Speed Post centers to be equipped with handheld scanners and bar code readers to provide better track and trace facility to the customers.
Status
All 17 Speed Post centers have been up-graded.
MICRO-INSURANCE POLICY – 100 days Agenda To underwrite 45 lakh Micro-Insurance policies in Rural Areas.
Status
46.62 Lakh Micro-insurance policies have been underwritten in rural areas as on March 31, 2011. SP/AS
IMPLEMENTATION OF AML/CFT NORMS IN SMALL SAVINGS SCHEMES AND REMITTANCES IN POST OFFICES-CARRYING OUT INSPECTION AND ITS FURTHER REVIEW REGARDING.
FOUR WEEK ADVANCED MANAGEMENT PROGRAM (AM) ON "PUBLIC SECTOR MANAGEMENT IN A CHANGING GLOBAL ENVIRONMENT FROM 13TH JUNE TO 9TH JULY 2011.
Tuesday, April 12, 2011
DEBARMENT OF OFFICERS BELONGING TO CSS/CSSS /CSCS ON THEIR REFUSAL TO PROMOTION TO NEXT HIGHER GRADE.
COMPASSIONATE APPOINTMENT IN NOT A MATTER OF RIGHT SC.
New Delhi, Apr 5 (PTI) Compassionate appointments cannot be made as a matter of right as it has to be done only when the family is in need of financial security after the death of the bread winner otherwise it would be unconstitutional, the Supreme Court said today. A bench of justices Aftab Alam and R M Lodha quashed a direction of the Madras High Court which directed appointment of M Selvanayagam in Karaikal Municipality, five years after the death of his father Meenakshisundaram, a watchman.
GOVERNMENT ISSUES NOTIFICATION TO CONSTITUTE A JOINT DRAFTING COMMITTEE TO PREPARE DRAFT LOK PAL BILL.
Ministry of Law & Justice 09-April, 2011 11:56 IST
Government Issues Notification to Constitute a Joint Drafting Committee to Prepare Draft Lok Pal Bill
The Government of India has issued a Notification constituting a Joint Drafting Committee to prepare a draft of the Lok Pal Bill.
The Joint Drafting Committee shall consist of Five nominee Ministers of the Government of India and Five nominees of Shri Anna Hazare (including himself).
The five nominee Ministers of the Government of India are as under:- (i) Shri Pranab Mukherjee,
Union Minister of Finance.
(ii) Shri P. Chidambaram,
Union Minister of Home Affairs.
(iii) Dr Veerappa Moily,
Union Minister of Law and Justice.
(iv) Shri Kapil Sibal,
Union Minister of Human Resource and Development and Minister of Communication and Information Technology
(v) Shri Salman Khursheed,
Union Minister of Water Resources and Minister of Minority Affairs
The five nominees of Shri Anna Hazare (including himself) are as under:-
(i) Shri Anna Hazare
(ii) Shri Justice N. Santosh Hedge
(iii) Shri Shanti Bhushan, Senior Advocate
(iv) Shri Prashant Bhushan, Advocate
(v) Shri Arvind Kejriwal. The Chairperson of the Joint Drafting Committee shall be Shri Pranab Mukherjee.
The Co-Chairperson of the Joint Drafting Committee shall be Shri Shanti Bhushan.
The Convenor of the Join Drafting Committee shall be Dr M. Veerappa Moily.
The Joint Drafting Committee shall commence its work forthwith and evolve its own procedure to prepare the proposed legislation.
The Joint Drafting Committee shall complete its work latest by 30th June, 2011. Ministry of Law and Justice ( Legislative Department), Government of India New Delhi, Friday, April 8, 2011/Chaitra 18, 1933
(Release ID :71560
Saturday, April 9, 2011
EMPANELMENT OF INDIAN POSTAL SERVICE GROUP ‘A” OFFICERS FOR POSTING TO POSTAL DIRECTORATE-REGARDING.
Transfer Police for Indian Postal Service Officers (IPoS). Gr 'A' (Junior Time Scale, Senior Time Scale Junior Administrative Gd & Senior Administativ
Friday, April 8, 2011
Notification pertaining to Request for Proposal (RFP) for Network Integrator for IT Modernisation Project..
Thursday, April 7, 2011
Payment of Dearness Allowance to Gramin Dak Sevaks (GDS) at revised rates with effect from 01-01-2011.
NO. 14-01/2011-PAP
GOVERNMENT OF INDIA MINISTRY OF
COMMUNICATIONS &
IT DEPARTMENT OF POSTS (ESTABLISHMENT DIVISION)
DAK BHAVAN, SANSAD MARGNEW DELHI,
DATE 5th April,2011 To All Chief Postmasters General, All Postmaster General, All Directors/Dy. Director of Accounts (Postal). Subject: Payment of Dearness Allowance to Gramin Dak Sevaks (GDS) at revised rates with effect from 01-01-2011. Sir/Madam, Consequent upon grant of another installment of dearness allowance with effect from 01-01-2010 to Central Government Employees, vide Government of India, Ministry of Finance, Department of Expenditure O.M. No.1(2)/2011-EII(B), dated the 24th March,2011, the Gramin Dak Sevaks (GDS), have also become entitled to the payment of dearness allowance on basic TRCA at the revised rate with effect from 01-01-2011. It has, therefore, been decided that the dearness allowance payable to the Gramin Dak Sevaks shall be enhanced from the existing rate of 45% to 51%, on the basic Time Related Continuity Allowance, with effect from 1ST January, 2011. 2. The additional installment of dearness allowance payable under this order, shall be paid in cash to all Gramin Dak Sevaks. The payment of arrears of dearness allowance for the month of January and February, 2011, shall not be made before the date of disbursement of TRCA of March, 2011. 3. The expenditure on this account will be debitable to the Sub Head 'Salaries' under the relevant head and should be met from the sanctioned grant. 4. This issues with the concurrence of Integrated Finance Wing vide their Diary No. 01/FA/11/CS, dated 05.04.2011 Yours faithfully
Sd/-
(RAJ KUMAR) DIRECTOR(ESTT)
TELE:23096036/23036793
FAX:011-23096007/23096036
Given below is the Record note on the meeting of Joint Committee on MACP held on 15.03.2011.
The third meeting of joint committee on MACP was held today i.e 15.03.2011. This meeting was held at the specific request by the Secretary Staff Side, National Council JCM to review the decision taken in the earlier meetings in which all items had been discussed.
Item Nos. 1,3,8,9 and 29: Grant of financial up-gradation in the promotional hierarchy instead of grade pay hierarchy under MACP Scheme
The Staff Side pressed this demand on the ground that the ACP 1999 had become a service condition in respect of all those who were in service as on 31st August 2008. The MACP Scheme being less advantageous could not be imposed upon them. They stated that to resolve this anomaly, the first 2 ACPs may be continued in the promotional hierarchy to be granted after 12 and 24 years of service from the date of induction, the third ACP on completion of 30 years service may be in the grade pay hierarchy. The official Side did not agree with this proposal. The Staff Side then pointed out that the introduction of MACP Scheme in grade pay hierarchy 10, 20, 30 years of service from the date of induction will result that certain cadres would be placed in the grade pay which are not sanctioned in the structure of the departments and therefore it can not be treated as career progression at all. The official Side wanted the particulars of those cadres which are going to face this problem, so that they could consider how to overcome such anomalies. The Staff Side agreed to provide the necessary information and departments concerned may also be asked to provide such information.
Item Nos. 2, 10 and 48:
The Staff Side also pressed for introducing MACP Scheme with effect from 1.1.2006 so that those who did not get any benefit under old ACP could atleast get the MACP scheme benefit before their retirement during the period from 1.1.2006 to 31.8.2008. The Official Side stated that this item has been closed and concluded and can not be allowed to be opened / reviewed. The Staff Side then stated that they would like to raise this issue in the meeting of National Anomaly Committee as the joint Committee on MACP Scheme is sub committee of the National Anomaly Committee. The Official Side stated that this may be raised as afresh item in the National Anomaly Committee.
The Staff Side also wanted that the option to choose ACP or MACP should be given to the individual employees and not the Department. The Official Side also did not agree to reopen this issue which has been concluded in the last meeting.
Item No. 57: Ignoring the placement of Artisans of Ministry of Defence from HS grade II to HS grade I for the purpose of MACP Scheme.
The Staff Side pointed out that this restructuring by keeping 50% of Artisans in the HS grade I and placing 50% in the HS grade II was by way of placement and therefore it could not be treated as promotion. The Staff Side cited Supreme Court ruling to this effect. However the Official Side did not agree with this. The case of restructuring in IA & AD in 1984 and in organized accounts were also cited in which it was clearly stated that those who are in the higher grade would be treated as placement only those who are promoted later on against vacancies would be treated as promotion. The official Side view was that only in those cases where the entire cadre is placed in the higher pay scale it would not be treated as promotion. This matter will also have to be raised in the meeting of National Anomaly Committee.
Items Nos. 11, 15, 22, 39, 47 and 51: Promotion in identical Grade Pay.
The decision that the normal promotions are in the same grade pay, they cannot be ignored for purpose off MACP Scheme and the specific cases would be examined separately.
Item Nos. 12, 30 and 49: Employees appointed limited competitive examination from lower to higher post may treated as direct recruits in the higher post ignoring the service in the lower posts.
The matter is still being considered with reference to old ACP scheme clarification.
Item Nos. 13, 32, 38, 44, 50 and 58: Counting of old service in the new establishments for the purpose off MACP. And Item Nos. 21, 27, and 28: Benchmark for financial up gradation under MACP. Orders have been issued on 1.11.2010. It was agreed that action taken statement would be finalized and circulated so that further discussion thereon can take place in the meeting of National Anomaly Committee.
Wednesday, April 6, 2011
All you wanted to know about EPF and PPF
1. What is the difference between EPF and PPF?
Where Employees Provident Fund (EPF) serves all salaried employees, the Public Provident Fund (PPF) serves everyone - the employed, the unemployed, even children and housewives. The access to the fund is also quite easy as any post office and some State Bank of India branches can help you open the fund. The purpose of a provident fund is to provide individuals some form of savings for their retirement years. Naturally, the EPF and PPF are for long-term savings. 2. What kind of income can one expect from PPF? The returns from the fund are in the form of interest paid. The interest rate currently is 8 per cent compounded annually.The interest, however, is not paid out but is compounded (like a bank recurring deposit) till the maturity or withdrawal.With the current levels of inflation, real and stated, the returns from the PPF fund could be low. This is a typical asset-class mismatch. 3. Is there any capital appreciation? Being a typical debt investment, there is no capital appreciation for the investment. 4. What is the risk involved with this investment? There is hardly any risk for the capital or the returns from the PPF deposit.The risk, however, is with inflation, which could possibly reduce the value of the returns in the long-term, and the other disadvantage is the long lock-in period of 15 years. 5. How about liquidity of the investment? PPF gives very little liquidity, too. The fund, as mentioned earlier, is for a minimum of 15 years. This can be extended for a further period of 5 years each, indefinitely.
The liquidity is in the form of withdrawals, which can be made from the fund from 7-year onwards. The withdrawal value is, however, limited to a maximum of 50 per cent of the average of the last 3 years' fund values. After 7 years, one withdrawal can be made every year, based on the same condition. 6. What happens in the case of the death of the account holder? In case of death of the account holder before the maturity of the account, the fund will be paid to the nominee/ legal heir. 7. How is PPF treated for tax? This is where the PPF scores very high. Currently, The PPF comes under the Exempt- Exempt- Exempt category. This means that the amount invested gets tax benefits, the interest is not taxed and this applies for the final maturity amount as well. The investment gets benefits under Section 80C of the IT Act. The investment, however, is limited to a maximum of Rs 70,000 per year per person. This limit of Rs 70,000 includes the deposits made in the name of any dependent children. 8. Are there any other specific benefits that I need to know? Some other unique benefits from the fund are:
1. There is no wealth tax on the value of the fund. 2. In case of insolvency, the money in the fund will not be attached to the assets. So, only this investment is truly ours, come what may. (Except for education in a philosophical sense). This feature can be very useful particularly for business people in high-risk industries / businesses. The fund cannot help anyone if there is tax evasion though. 9. How does it score on convenience? The fund scores high on convenience. As a savings tool, it is incomparable in terms of the flexibility of payment and quantum. You can make up to 12 contributions per year.
Each contribution can be as low as Rs 100 subject to a minimum of only Rs 500 per year.
There has to be at least one contribution per year. In case no payment is done for a whole year, there is a charge of Rs 50 when the next investment is made.
The objective is to make savings as comfortable and convenient for the minimum possible investment.
A minor disadvantage is that the fund is yet to go online. So, we have to carry our passbook and also face a queue to make the payment every time. In conclusion:
PPF is a typical savings tool but one has to invest for the long term. This means there is an asset-class mismatch. But, on the convenience side, the fund scores pretty high for the flexibility that it offers.
There are additional unique advantages in the form of wealth tax and insolvency benefits from the Public Provident Fund. On the flip side, the long-term (minimum 15 years) of the plan is a limitation.
HIKE IN SOME ALLOWANCES AFTER DA CROSSED 50%
D.A. reached 51%, Following allowances and advances to increase by 25%, automatically. As per the announcement the Dearness Allowance is increased by 6% from 45% to 51% to Central Government Employees and Pensioners.The decision would also change the allowance structure. There is no recommondations in 6th CPC that Dearness Allowance crosses 50% would merge with baisc pay. But some allowances and advances will be increased by 25% on crossing of Dearness Allowance by 50%.
All the following allowances are to be increased with effect from 01.01.2011.
1. Children Education Assistance & Reimbursement of Tuition Fee Rs.12,000 (Per Year - Per Child) - Rs.15,000 (Per Year - Per Child) DOPT 12011/03/2008-Estt.(Allowance) 2.9.2008
2. Advances for purchase of Bicycle Advacne, Warm clothing Advance, Festival Advance, Natural Calamity Advance Rs.3,000 - Rs.3,750 Fin.Min. No.12(1)E.II(A)/2008 7.10.2008
3. Special Compensatory Hill Area Allowance Rs.600 / Rs.480 - Rs.750 / Rs.600 Fin.Min.
4(2)/2008-E.II (B) 29.8.2008 4. Special CompensatoryScheduled / Tribal Area Allowance Rs.400 / Rs.240- Rs.500 / Rs.300 Fin.Min. 17(1)/2008-E.II (B) 29.8.2008
5. Project Allowance Rs.1,500 / Rs.1,000 - Rs.1,875 / Rs.1,250 Fin.Min. 29.8.2008
6. Speical Compensatory (Remote Locality) Allowance Rs.2,600 / Rs.2,100/ Rs.1,500 / Rs.400 -- Rs.3,250 / Rs.2,625/ Rs.1,875 / Rs.500 Fin.Min. 3(1)/2008-E.II(B) 29.8.2008
7. Cycle Maintenance Allowance Rs.60 (Per month) - Rs.75 (Per month) Fin.Min. 19039/3/2008-E.IV 29.8.2008
8. Mileage for road journey all components of daily allowance on tour, rate of transportation of personal effects. Rs.500 / Rs.300 / Rs.200 / Rs.150 / Rs.100 - Rs.625 / Rs.375 / Rs.250 / Rs.190 / Rs.125 Fin.Min.19030/3/2008-E.V 23.9.2008 9. Rates of Conveyance Allowance under SR-25 Rs.370 / Rs.480 / Rs.640 / Rs.750 / Rs.850 - Rs.470 / Rs.600 / Rs.800 / Rs.940 / Rs.1,070 Fin.Min.19039/2/2008-E.IV 23.9.2008 10. Washing Allowance Rs.60 - Rs.75 Fin.Min.14/3/2008-JCA 11.9.2008 11. Split Duty Allowance Rs.200 - Rs.250 Fin.Min.
9(11)/2008-E.II (B) 29.8.2008
12. Spl. Allowance for Child Care for Women with Disabilities and Education Allowance for disabled children Rs.1,000 per month- Rs.1,250 per month DOPT12011/04/2008-Estt.(Allowance) 11.9.2008
13. Cash Handling Allowance Rs.600 / Rs.500 / Rs.400 / Rs.300 / Rs.150 - Rs.750 / Rs.625 / Rs.500 / Rs.375 / Rs.190 DOPT4/6/2008-Estt.(Pay.II) 1.10.2008
14. Risk Allowance DOPT21012/1/2008-Estt.(Allowance) 12.3.2009
15. Postgraduate Allowance Rs.1,000 / Rs.600- Rs.1,250 / Rs.750 Min.of HohfwA.45012/4/2008-CHS.V 16.4.2009
16. Desk Allowance Rs.600 - Rs.750 DOPT 1/10/2009-PIC 17.4.2009
17. Bad Climate Allowance Rs.400 / Rs.240 - Rs.500 / Rs.300 Fin.Min.1/10/2008-E.II(B) 29.8.2008
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