GOVT. OF ASSAM
DEPARTMENT OF PUBLIC ENTERPRISES
HOUSEFED COMPLEX : BLOCK I : 1st FLOOR
BASISTHA ROAD : DISPUR
GUWAHATI 781 006

NOTIFICATION

No. PE (D) 69/92/Pt II/ 168 Dated Dispur the 20th September 2004

Sub : REVISED POLICY ON VOLUNTARY RETIREMENT SCHEME FOR THE EMPLOYEES OF STATE LEVEL PUBLIC ENTERPRISES OF ASSAM

In supersession of Notification No. PE(D)69/92/Pt II/155 dated 06-09-2003 on implementation of voluntary retirement scheme (VRS) in the State Level Public Enterprises of Assam (SLPEs), the following revised guidelines are hereby issued.

1. The SLPEs which are performing reasonably well and can afford to discharge the dues to the employees opting VRS from their own resources generated, could follow the existing guidelines as per aforesaid OM dated 5.10.88, subject to modifying the maximum compensation to 60 days salary (in lieu of 1 months), comprising of basic pay & DA only, for each completed year of service or the salary for the number of months of service left, whichever is less. The respective Board of Directors / Members may decide the quantum of compensation within the maximum limit, depending on the financial capability of the SLPE. It is imperative that the employees would get their dues for the period of services rendered i.e. i) CPF dues - both employee's & employer's contribution (ii) gratuity as per Gratuity Act (iii) Unutilized leave salary for maximum 240 days (iv) savings of GIS (v) any unpaid sanctioned dues of the employees & (vi) any unpaid salaries and salaries prevailing at the time of implementation of VRS would be applicable. Other benefits as per OM dated 5-10-88 i.e. one/three month's notice pay as per the conditions of service applicable to him / her and travel of the employee and his / her family by entitled class to the place where he/ she intends to settle down would also be admissible.
2. For the SLPEs which cannot afford to pay the dues to the employees opting VRS from their own resources, but could become viable by shedding-off surplus staff could implement VRS by making terminal payments as per OM dated 5.10.88, subject to modifying the maximum compensation to 30 days salary (in lieu of 1 months), comprising of basic pay & DA only, for each completed year of service or the salary for the number of months of service left, whichever is less. The respective Board of Directors / Members may decide the quantum of compensation within the maximum limit. It is imperative that the employees would get their dues for the period of services rendered i.e. i) CPF dues - both employee's & employer's contribution (ii) gratuity as per Gratuity Act (iii) Unutilized leave salary for maximum 240 days (iv) savings of GIS (v) any unpaid sanctioned dues of the employees & (vi) any unpaid salaries and salaries prevailing at the time of implementation of VRS would be applicable. No other benefits as per OM dated 5-10-88 would however be admissible
3. For the SLPEs which cannot be revived and would have to be closed, could implement VRS by making terminal payments as per OM dated 5.10.88, subject to modifying the maximum compensation to 15 days salary (in lieu of 1 months), comprising of basic pay & DA only, for each completed year of service or the salary for the number of months of service left, whichever is less. The respective Board of Directors / Members may decide the quantum of compensation within the maximum limit. It is imperative that the employees would get their dues for the period of services rendered i.e. i) CPF dues - both employee's & employer's contribution (ii) gratuity as per Gratuity Act (iii) Unutilized leave salary for maximum 240 days (iv) savings of GIS (v) any unpaid sanctioned dues of the employees & (vi) any unpaid salaries and salaries prevailing at the time of implementation of VRS would be applicable. No other benefits as per OM dated 5-10-88 would however be admissible

To fund the costs on implementation of VRS by the SLPEs which fall under category (2) & (3) above, the concerned administrative departments will have to provide Plan fund out of their own sectoral allocation in the Annual Plan. They may also submit proposals to the P & D Department for taking-up the matter of funds for implementation of VRS with the Planning Commission. The other sources of fund could be from Asian Development Bank for State Public Sector reform and the Union Ministry of Finance under fiscal reform programme.

The following conditions will be applicable in all the cases at 1, 2 & 3 above:

1. There will be no recruitment against vacancies arising due to VRS.
2. In implementing VRS, the managements should see that it is extended to employees who could be afforded to be released without detriment to the SLPEs.
3. Approval of the Board of Directors and Administrative Departments would be obtained by the SLPEs for introducing VRS. Further, the administrative departments will obtain clearance of the Public Investment Board for investment proposals involving Govt. fund as well as any institutional loans, exceeding Rs.15 Lakh, as per provisions under OM No. PE 43/88/155 dated 23.06.89. For this, the administrative departments will have to submit proposals to the Public Enterprises Department indicating budget provision, mode of funding viz. equity/loan/grant, loan repayment schedule, economic justification of the investment, expected benefits on implementation of the scheme etc.
4. Once an employee avails VRS from an SLPE, he/she will not be allowed to take up employment in another SLPE or any State Govt. funded/ aided undertaking, autonomous bodies / institutions etc. or any State Govt. departments. If he/she desires to do so, he/she will have to return any VRS compensation received, to the SLPE concerned. Where such compensation was paid out of Govt. grant, the SLPE should remit the refunded amount to the Govt. In case the SLPE is closed/merged, any such VRS compensation should be returned directly to the Govt.
5. No age bar or minimum qualifying service is prescribed for eligibility of availing VRS.

Enclo : OM No. 2(36)/86-BPE (WC) Dated 05-10-1988 of Ministry of Industries, Govt. of India

Sd/- J. S. L. Vasava
Commissioner & Secretary
Department of Public Enterprises

Memo No. PE (D) 69/92/Pt-II/168 -A Dated Dispur the 20th September 2004

Copy to:

1. P.P.S. to the Chief Minister, Assam, Dispur
2. P.S to the Minister/ Minister of State Industries/InformationTechnology/Transport/Cooperation/P&D/WPT&BC/Power/Mines & Minerals/ Agriculture/ Urban Development/ Education/ Cultural Affairs/ Tourism/HillAreas/AH&Veterinary/Finance/Home/SoilConservation/ HT & S/ Fisheries/ Minority Welfare Development/Public Works/Irrigation/ AR & Training Departments, Dispur
3. Chairman, Committee on State Public Sector Enterprises, Dispur
4. S.O to Chief Secretary, Assam, Dispur
5. Addl. Chief Secretary (T)
6. Addl. Chief Secretary, Industries/ Information Technology/ Transport/ Cooperation Departments, Dispur
7. Principal Secretary, P&D/ WPT&BC/ Power/ Mines & Minerals/ Agriculture/ Urban Development Departments, Dispur
8. Commissioner & Secretary, Education/ Cultural Affairs/ Tourism/ HillAreas/ AH&Veterinary/Finance/Home/SoilConservation/HT& S/Fisheries/Minority Welfare Development/ AR & Training Departments, Dispur and Commissioner & Spl.Secretary, PWD, Dispur
9. Financial Commissioner, Assam, Dispur
10. Secretary, Irrigation Department ,Chandmari : Guwahati 781003
11. Accountant General (Assam), Maidamgaon, Beltola, Guwahati 781 029
12. Chairman/ Chairman-cum-Managing Director/ Managing Director/ Chief Executive/ Commissioner ________________ (all 48 SLPEs)
13. Secretary to the Committee on Public Undertaking, Assam Legislative Assembly
14. Superintendent, Assam Govt. Press, Bamunimaidam, Guwahati 781021 for publication in the Gazettee.
15. Secretary/Jt. Secretary (I)/Jt. Secretary (II)/Deputy Secretary/ Under Secretary/ FA / Director/ Depty Adviser (F)/ Jr. Economist/ SO/ MO (M) & Superintendent, Public Enterprises Department
16. Website www.dpeassam.nic.in

By order etc.
Sd/-
Commissioner & Secretary
Department of Public Enterprises

GOVERNMENT OF INDIA

MINISTRY OF INDUSTRY

BUREAU OF PUBLIC ENTERPRISES

Public Enterprises Bhavan

CGO Complex, Block -14

Lodi Road, New Delhi-110003

Dated the 5^th October, 1988

OFFICE MEMORANDUM

Subject: Voluntary Retirement for the Employees of Public Enterprises

Government had been considering for quite some time the introduction of a voluntary retirement scheme for the employees of Public Sector Enterprises with a view to reducing surplus manpower. After careful consideration it has been decided that public sector enterprises can introduce a voluntary retirement scheme on the following terms and condition:-

1. An employee who has completed 10 years of service or completed 40 years of age may seek voluntary retirement by a written request.

2. The management of the enterprises will have the right not to grant voluntary retirement for reasons to be recorded in writing

3. The terminal payments available to an employee who seek voluntary retirement would be:

1. The balance in his Provident Fund Account payable as per the C.P.F. Regulation.

2. Cash equivalent of accumulated earned leave as per the rules of the enterprise

3. Gratuity as per Gratuity Act or the gratuity scheme applicable to the employees.

4. One month's / three month's notice pay (as per the conditions of service applicable to him

1. In addition, an employee whose request for Voluntary Retirement is accepted would also be entitled to an ex-gratia payment equivalent to 1½ month's emoluments (pay + DA) for each completed year of service or the monthly emolument at the time of retirement, multiplied by the balance months service left before normal date of retirement, whichever is less. For example, an employee who has put in 24 years of service and has got only one year of service for normal retirement will get ex-gratia payment of only 12 months emoluments and not 36 months emoluments

2. In addition, the employee and his family would also be entitled to travel by the entitled class to the place where he intends settling down.

2. The voluntary Retirement Scheme would be applicable to all employees, workers and executives. Where there is a surplus manpower, the vacancy caused by Voluntary Retirement Scheme would not be filled up. Voluntary Retirement Schemes on the above parameters can be introduced by the Public Enterprises with the approval of the Administrative Ministries.

3. If in exceptional cases where a higher ex-gratia payment is proposed to be made, the approval of the Bureau of Public enterprises must be obtained by the administrative Ministries. It is also clarified that if an Enterprise has already adopted a Voluntary Retirement scheme, on conditions different from what is stated in para one above, the same can be continued by them. Availability or Funds for implementing the Voluntary Retirement as proposed above has to be sorted out by the Administrative Ministries through normal inter-ministerial consultations

4. Ministry of Petroleum and Natural Gas, Ministry of Agriculture and Corporation etc, are requested to bring the details of the Voluntary Retirement Scheme to the notice of the P.S.Es under their administrative control

Sd/-Krishna Chandra,

Joint Director, Bureau of Public Enterprises

Tel. No-360841

To: All Administrative Ministries/Departments of the Government of India.