AICPIN for the month of March 2016

AICPIN for the month of March 2016

Consumer Price Index for Industrial Workers (CPI-IW) – March, 2016

The All-India CPI-IW for March, 2016 increased by 1 point and pegged at 268 (two hundred and sixty eight). On 1-month percentage change, it increased by (+) 0.37 per cent between February, 2016 and March, 2016 when compared with the decrease of (+) 0.40 per cent between the same two months a year ago.

More details awaited…

Parrikar releases list of 70 successful products of DRDO

Parrikar releases list of 70 successful products of DRDO

Parrikar says that in the last three years, many of these systems developed by DRDO have been inducted into the defence forces.

Defence Minister Manohar Parrikar released a list of 70 products and systems that have been developed by the Defence Research and Development Organisation (DRDO) for various wings of armed forces.
Parrikar says that in the last three years, many of these systems developed by DRDO have been inducted into the defence forces.

Interestingly many sub-systems are also being cited by the minister in the Upper House, with some being at various stages of trials, production and induction.

Parrikar says many of the products, originally developed for the defence forces, can also be used by Central Armed Police Forces (CAPFs), state police units and National Disaster Response Force.
DRDO has organised visits of CAPF’s to various laboratories to showcase DRDO’s products and capabilities.

The minister also said that the Ministry of Home Affairs has shortlisted about 146 items for trials, out of which trials of 78 products have already been completed.

He said a large number of products which can provide protection, day-night situational awareness and support-mobility have also been identified for induction into services by MHA after the trials.

Among the list of successful products of DRDO include:
1)  81 mm Anti Thermal Anti Laser Smoke Grenade
2)  Active Antenna Array Unit
3)  Air Defence Fire Control Radar
4)  Airborne Early Warning & Control System
5) Akash Weapon Systems
6)  Anti G Suit Mk-III
7)  Aslesha Radar
8)  Auto injector Atropine Sulphate
9)  Bi Modular Charge System
10)  Bomb 120 mm ILLG
11)  Bomb 120 mm Mortar HE
12)  Bomb 81 mm Mortar HE
13)  Bomb 81 mm Mortar PWP
14)  Bomb Mortar 51 mm HE Mk-II
15)  Bomb Mortar 51 mm ILLG
16)  Bomb Mortar 51 mm Smoke
17)  Bomb Mortar 81 mm ILLG
18)  Bridge Layer Tank T-72 (BLT-72)
19)  Cartridge ERU for aircraft with Package
20)  Cartridge Primary for 120 mm Mortar
21)  Cartridge SA 5.56 mm Ball
22)  Cartridge Signal 16 mm 1A
23)  Cartridges 105 mm IFG NC
24)  Cartridges 22” RF Ball
25)  CBRNe Remotely Operated Vehicle
26)  Chemical Agent Monitor
27)  Coastal Surveillance Radar
28)  Commander’s Thermal Imager for  T-90
29)  Commander’s Thermal Imager for BMP Tanks
30)  Commander’s Thermal Imager Mk-II for T-72
31)  Communication Link Controller
32)  Digital Radar Warning Receiver
33)  Display Processor
34)  E1 Link Encryptor
35)  Electronic Support Measure (ESM), Varuna
36)  EW Programme  – Samudrika
37)  Explosive Detection Kit
38)  Explosive Reactive Armour Mk-II
39)  Fuze 213 Mk-V M2
40)  Heavy Drop System
41)  Helmet Mounted Thermal Imaging Camera
42)  Holographic Sights for Small Weapons
43)  Identification of Friend and Foe System
44)  Integrated Multi-function Sight
45)  Laser based Directed Energy System
46)  Mine AP M16 and AP NM-14
47)  Mission Computer
48)  Mobile Autonomous Robotic System
49)  Mountain Foot Bridge
50)  NBC Canister
51)  NBC Filter
52)  Optical Target Locator
53)  Personal Decontamination Kit
54)  Phase Control Module
55)  Pinaka Launcher Mk -II
56)  Radar Computer I & II
57)  Radar Warning Receiver
58)  Resin based Combustible Cartridge Case for 120 mm FSAPDS Mk-II Ammunition
59)  Revathi Radar
60)  Rotating Telemetry System
61)  Secure Adapter for Frame Relay Encryptor
62)  Secure Multi Interface Link Encryptor
63)  Shell 105 mm IFG BE Smoke
64)  Shell 105 mm ILG Mk-I
65)  Short Range Laser Dazzler
66)  Three Colour Detector
67)  Through Wall Imaging Radar
68)  Weapon Locating Radar (WLR)
69)  Wheeled Armoured Platform
70)  X-Band Microwave Power Module

Ever since the NDA government came to power in 2014, DRDO has been put on the radar with Prime Minister Narendra Modi wanting youngsters to be given more responsibilities.

This followed the sacking of DRDO head Dr Avinash Chander in 2015 which came as a warning from the top. The post of DRDO DG and Scientific Advisor to Defence Minister was then split into two. Dr S Christopher was given the mandate of running the labs and Dr G Satheesh Reddy was made Parrikar’s advisor.

In the last one year, DRDO seldom made any claims on their achievements and kept many of its missions under wraps.

“DRDO often forgot that they have a user in the waiting with hope. It was a family party often with little focus on R&D. I am not sure if the youngsters got their due. If they (DRDO) have gone silent means, they have been told to prove their worth first. If Make in India needs to succeed DRDO must change their attitude towards private players. The list of 70 items released now would be doubled then,” says a former Indian Air Force official, who worked closely with some of the home-grown projects, while on deputation.

Source: mathrubhumi.com

Reservation in promotion

Reservation in promotion

Extant instructions of DoPT provide that reservation in promotion by non-selection method is available to SCs and STs in all Groups i.e. Group A, B, C & D. In case of promotion by selection method, reservation is available to SCs and STs upto lowest rung of Group A. There is no reservation in promotion by selection within Group A. Reservation in posts by promotion under the existing scheme is applicable in which the element of direct recruitment, if any, does not exceed 75%.

In accordance with Supreme Court judgment dated 15.07.2014, results of Limited Departmental Competitive Examination 1996 for Section Officer grade were revised by UPSC. Appellants, who were declared successful in the modified results of SO LDCE 1996, were included in SOSL 1996 by this Department. Later the benefit was extended to similarly placed SC/ST officers who were declared qualified in the modified results of SO LDCE 1996. On their inclusion in SOSL 1996, these officers have become eligible for consideration for promotion to the next grade (Under Secretary) on completion of eight years of approved service in SO grade i.e. they become eligible for consideration in USSL 2004 onwards subject to the size of the zone. A proposal for review of USSLs 2004 and 2005 has been forwarded to UPSC in which these officers have been included in the zone.

This was stated by the Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr. Jitendra Singh in a written reply to a question by Shri Ronald Sapa Tlau in the Rajya Sabha today.

PIB

Review of performance of public servants

Review of performance of public servants

The Ministry of Personnel, Public Grievances and Pensions is aware that review of performance of public servants occurs only after attaining age of 50 years or completion of 30 years of service. As per Fundamental Rule (FR) 56 (j):

“The Appropriate Authority shall, if it is in the opinion that it is in the public interest so to do, have the absolute right to retire any Government servant by giving him notice of not less than three months in writing or three months’ pay and allowances in lieu of such notice:

If he is in Group ‘A’ or Group ‘B’ service or post in a substantive, quasi-permanent or temporary capacity and had entered Government service before attaining the age of 35 years, after he has attained the age of 50 years.

(i) in any other case after he has attained the age of fifty-five years”.

(ii) In addition, as per Rule 48 of CCS(Pension) Rules, 1972, at any time after a Government servant has completed thirty years’ qualifying service, he may be required by the appointing authority to retire in the public interest, and in the case of such retirement the Government servant shall be entitled to a retiring pension provided that the appointing authority may also give a notice in writing to a Government servant at least three months before the date on which he is required to retire in the public interest or three months’ pay and allowances in lieu of such notice.

Further, as per Rule 16(3) (amended) of the All India Services (Death-cum-Retirement Benefits) Rules, 1958, the Central Government may, in consultation with the State Government concerned, require a Member of the Service to retire from Service in public interest, after giving such Member at least three month’s previous notice in writing or three month’s pay and allowances in lieu of such notice, after the review when such Member completes 15 years of qualifying Service; or

(i) after the review when such Member completes 25 years of qualifying Service or attains the age of 50 years, as the case may be; or

(ii) if the review referred to in (i) or (ii) above has not been conducted, after the review at any other time as the Central Government deems fit in respect of such Member.

(iii) The above provisions have been reiterated from time to time and recently vide DoPT’s O.M. No. 25013/02/2005-AIS-II dated 28.06.2012 and 03.08.2015, and O.M. No. 25013/1/2013-Estt.A-IV dated 11.09.2015.

Disciplinary cases are conducted as per prescribed procedures. Normally, the details and monitoring of disciplinary cases is to be done by the respective cadre authorities. The Central Government has also from time to time been stressing on the need to complete disciplinary cases expeditiously and monitoring the same.
This was stated by the Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr. Jitendra Singh in a written reply to a question by Shri Vivek Gupta in the Rajya Sabha today.

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Disclosure of information under RTI

Disclosure of information under RTI

As per guidelines dated 15.04.2015 issued by the Government of India, the Ministries/Departments of the Government of India and other Public Authorities are proactively working towards suo-motu disclosure of information on their websites so as to reduce the need for filing RTI applications.

As per the Annual Report of the Central Information Commission (CIC), 75.27% of the Public Authorities have filed their Annual Returns to the CIC for 2014-15, which is higher than the figure of 72.54 % for 2013-14, indicating an improved compliance over the previous year.

With a view to maximize suo-motu disclosure by public authorities, Government has issued guidelines to all the Ministries/Departments of Govt. of India on 15.4.2013. Government has further issued O.M. dated 29.06.2015 ensuring compliance to the recommended measures for strengthening implementation of Section 4 of RTI Act, by all public authorities. Another O.M. dated 9.7.2015 has been issued for appointment of a nodal officer of the rank of Joint Secretary for implementation of Section 4 of RTI Act.

The CIC has provided web based software known as RTI Annual Return Information System for uploading annual return online at URL http://rtiaar.nic/rtiar09/login.asp.

The CIC has, from time to time, issued letters to various defaulting Public Authorities for submission of quarterly returns.

This was stated by the Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr. Jitendra Singh in a written reply to a question by Shri A. W. Rabi Bernard in the Rajya Sabha today.

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7th Pay Commission – Centre all set to Implement Recommendations – Notification most likely in June

7th Pay Commission – Centre all set to Implement Recommendations – Notification most likely in June

The Central Government is all set to implement recommendations of 7th Pay Commission. Reportedly, the notification for the ‘increment process’ will be issued in the month of June.

7th Pay Commission – Centre all set to Implement Recommendations – Source added, Centre will issue notification most likely in the third week of June after Cabinet’s nod to the recommendations of 7th pay Commission.

The Central Government is all set to implement recommendations of 7th Pay Commission. Reportedly, the notification for the ‘increment process’ will be issued in the month of June.

Source added, Centre will issue notification most likely in the third week of June after Cabinet’s nod to the recommendations of 7th pay Commission.

A Finance Ministry source was quoted by a news website as saying, “But in case it’s not issued in third week of June, it will be issued at the beginning of fourth week of June. Usually it takes around one week to issue a notification, after cabinet nod”.

Ministry is also hopeful that Empowered Committee of Secretaries which is looking after the recommendations at the moment, will submit its report by June 15.

Most likely, increased payout will be handed over to central government employees earliest at the end of June or latest by July. However, sources suggest that Empowered Committee of Secretaries which has been entrusted the responsibility to overview recommendations will not make much change into it.

Earlier, the government conceded that implementation of new pay scales proposed by the 7th pay commission is estimated to put an additional burden of Rs 1.02 lakh crore which is around 0.7 per cent of GDP.

Giving details of financial implications of the recommendations, Minister of State for Finance Jayant Sinha informed Parliament that the burden on pay head would increase by Rs 39,100 crore to about Rs 2.83 lakh crore in the current fiscal.

Sinha also said that the announcement of Dearness Allowance has no impact on the recommendations of the 7th Pay Commission.

The Empowered Committee of Secretaries headed Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission was set up in January. The recommendations of the Pay Commission will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

Source: One India

7th Pay Commission Latest News – Minister’s reply on financial outgo and implementation Date

In the event of 7th Pay Commission implementation in 2016-17, additional burden to exchequer would be Rs 1.02 lakh crore, which is 0.7 per cent of GDP

7th Pay Commission Latest News – Minister’s written reply in Parliament on financial outgo and implementation Date – Minister also confirms recent release of additional DA has no impact on the recommendation of 7th Pay Commission

7th Pay Commission likely Implementation date and Financial Implication:

Likely 7th CPC Implementation Date : 7th Pay Commission recommendations to be implemented after approval of the Cabinet on completion of screening of suggestions by Empowered Committee of secretaries which is on the job presently.

Date of Effect of 7th Pay Commission Recommendations:

Subject to acceptance by the government, 7th Pay Commission Recommendations will take effect from January 1, 2016

7th Pay Commission Financial Implication:

Type of Salary Head	Total Financial outgo without 7th CPC implementation (In Crore)	Total Financial outgo if 7CPC implemented (In Crore)	Financial Burden out of 7CPC implementation (In Crore)
Salary	2.44 lakh	2.83 lakh	39,100
HRA	12,400	29,600	17,200
Pension	1.42 lakh	1.76 lakh	33,700
Other Allowances	24,300	36,400	12,100
	Total		1,02,100

Financial Express report on Minister’s reply in Rajya Sabha on 7th Pay Commission Report:

Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore, or 0.7 per cent of GDP, on the exchequer in 2016-17, government said. The implementation of recommendations of the 7th Pay Commission report, however, would be after approval of the Cabinet on completion of screening of suggestions by a high-level panel of secretaries, the Rajya Sabha was informed.

The implementation of the new 7th Pay Commission pay scales is estimated to put an additional burden of Rs 1.02 lakh crore (or 0.7 per cent of GDP at current market prices) on the exchequer in 2016-17. Subject to acceptance by the government, they will take effect from January 1, 2016. In a written reply, Minister of State for Finance Jayant Sinha also said that the announcement of Dearness Allowance has no impact on the recommendations of the Pay Commission.

Giving details of financial implications of the recommendations, Sinha said the burden on pay head would increase by Rs 39,100 crore to about Rs 2.83 lakh crore in the current fiscal. Without the Pay Commission recommendations, the outgo would have been Rs 2.44 lakh crore.

The outgo towards HRA will increase by Rs 17,200 crore to Rs 29,600 crore. The outgo on pension front will be Rs 1.76 lakh crore (increase of Rs 33,700 crore) and on other allowance will be Rs 36,400 crore (up Rs 12,100 crore).

The Empowered Committee of Secretaries headed Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission was set up in January. The recommendations of the 7th Pay Commission report will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

Changes in National Pension System (NPS)

Changes in National Pension System (NPS)

The Government has proposed the following in the Finance Bill, 2016 with regard to the National Pension System (NPS):

i. Allowing 40 per cent of the NPS corpus tax exempt on lump sum withdrawal.
ii. Waiving service tax on the NPS corpus utilized for purchase of annuity.
iii. The amount receivable by the nominee in case of death of the subscriber covered under NPS has been made tax exempt.
iv. One-time portability without any tax implication has been allowed to the subscriber for shifting from recognized provident fund to NPS.
v. One-time portability without any tax implication has been allowed to the subscriber for shifting from superannuation fund to NPS.

As per the provisions of the Finance Bill, 2016, 40 per cent of the pension corpus under NPS is proposed to be tax exempt on lump sum withdrawal. Also, the proposal in the Union Budget, 2016-17 for taxation of 60 per cent of provident fund corpus under the Income Tax Act, 1961 has been withdrawn by the Government. Employees’ Provident Fund (EPF) remains an Exempt Scheme.

However, EPF and NPS are different schemes available to separate categories of subscribers and they are not comparable on one-to-one basis.

This information given by Shri Bandaru Dattatreya, Minister of State (IC) for Labour and Employment, in reply to a question in Rajya Sabha today.

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FM: Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector

FM: Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector

The Union Finance Minister, Shri Arun Jaitley said that the Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector especially in case of Public Sector Banks (PSBs). The Finance Minister said that there are two categories of defaulters, viz. those who are unable to pay back due to economic slowdown both in domestic and global market and other reasons outside their control as well as wilful defaulters including loans sanctioned without due diligence by the banks. The Finance Minister said that the Government has taken various measures to deal with both these categories of defaulters. The Finance Minister Shri Jaitley was making his Opening Remarks at the Second Meeting of the Consultative Committee attached to the Ministry of Finance on the subject: “NPAs in Banking Sector” here today.

The Finance Minister Shri Jaitley further said that in order to deal with default due to economic slowdown, the Government has taken various measures to revive the stressed sectors which mainly include steel, textiles, power and roads among others. Shri Jaitley said that the Government has also done recapitalization of banks by providing Rs. 25,000 crore in the last year Union Budget 2015-16 as well as in this year’s budget 2016-17. He said that transparency and professionalism has been brought in appointment process for top management positions in the PSBs including Chairmen and Managing Directors. He said the Government has taken various measures to make the management professional, has given full autonomy to the banks in taking commercial decisions without any interference from the Government.

The Finance Minister Shri Jaitley said that Bankruptcy Law has been cleared by the Joint Parliament Standing Committee and is likely to be discussed in the current Budget Session of the Parliament. The Finance Minister also said that SARFAESI Act and DRT Act have been amended to make the recovery process more efficient and expedient. The Finance minister said that wherever it was observed that number of cases in which action taken by the banks against guarantors for recovery of defaulted loans is insufficient, the Government has advised the banks to take action against guarantors in the event of default by borrowers under relevant Sections of SARFAESI Act, Indian Contract Act and RDDB & FI Act. The Finance Minister said that a direction to this effect has been issued to the banks last month. The Finance Minister also highlighted the various measures taken by the Government for revival of stressed sectors such as steel, road, power and textile sectors among others.

Later the Members of the Consultative Committee gave their suggestions with regard to recovery of loans and bringing NPAs under control. Members suggested that there is need for bringing more transparency in the system and list of all the defaulters whose loans have been written off by the PSBs be made public. They asked for exemplary action against the wilful defaulters so that others do not indulge in similar activities. Some members appreciated the Government’s effort to make the appointment process for the top management positions of banks professional. Some members also suggested that there is need for restructuring of agricultural loans in order to help the farmers. Members also suggested that there should be no employment cut due to any amalgamation or merger of banks. Members asked the Government to ensure level playing field to all Indian entrepreneurs across the board. They suggested that due to wilful default by some prominent business men, others may not be considered and treated in a similar fashion. Some members suggested that a committee be constituted to finalise recovery process in case of loans given to big corporate houses by various PSBs.

The Members of the Consultative Committee who participated in the aforesaid Meeting include Shri Anirudhan Sampath, Shri Baijayanta Jai Panda, Shri Dilip Kumar Mansukhlal Gandhi, Shri Kailkesh Narayan Singh Deo, Smt. Poonam Mahajan, Shri PrabhatsinhPratapsinh Chauhan, Shri Ram Charitra Nishad, Shri Sriram Malyadri, Shri Subhash Chandra Baheria, Smt. Supriya Sadanand Sule, Shri Suresh Chanabassappa Angadi (all members of Lok Sabha); Shri Anil Desai, Shri Digvijaya Singh, Dr. K.P. Ramalingam, Shri Rajkumar Dhoot, Shri Ranvijay Singh Judev, Shri Satish Chandra Misra, Kumari Selja and Shri Sukhendu Sekhar Roy (all members of Rajya Sabha).

Along with the Finance Minister, the Minister of State for Finance Shri Jayant Sinha, Shri Ratan P. Watal, Finance Secretary, Shri Shaktikanta Das, Secretary, DEA, Dr. Hasmukh Adhia, Revenue Secretary, Ms. Anjuly Chib Dugal, Secretary, Financial Services, Shri Neeraj Kumar Gupta, Secretary, DIPAM, Dr. Arvind Subramanian, Chief Economic Adviser (CEA), and other senior officers of the Ministry of Finance attended the aforesaid Consultative Committee Meeting.

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7th Pay Commission – Indian Army Chief and his Counterparts in the IAF and the Navy will draw more salary than the top General and Equivalent in the US based on Purchasing Power Parity (PPP)

7th Pay Commission – Indian Army Chief and his Counterparts in the IAF and the Navy will draw more salary than the top General and Equivalent in the US based on Purchasing Power Parity (PPP)

If the recommendations of the 7th pay commission are implemented, the Indian Army chief’s annual salary will jump to $189,482 (in PPP terms), almost $8,000 more than what a general and equivalent ranks draw in the US. The huge salary hikes will apply equally to civilian officers too.

7th Pay Commission – These conclusions are, however, equally applicable to civilian employees of the government who are similarly placed.

7th Pay Commission recommendation – For the first time, the Indian Army chief and his counterparts in the IAF and the Navy will draw more salary than the top general and equivalent in the US based on purchasing power parity (PPP) terms when the recommendations of the 7th Central Pay Commission are implemented.
A comparison drawn by the Institute for Defence Studies and Analyses (IDSA), a defence ministry think tank, on the pay packets of Army chiefs and equivalent in the US, the UK and India said a general and equivalent in the US was paid $181,500 per annum (in PPP terms). The salary in the UK for similar ranks was $269,868. In India, the three services chiefs, who enjoy pay equivalent to the Cabinet secretary, received $140,520.

If the recommendations of the 7th pay commission are implemented, the Indian Army chief’s annual salary will jump to $189,482 (in PPP terms), almost $8,000 more than what a general and equivalent ranks draw in the US. The huge salary hikes will apply equally to civilian officers too.

India’s annual per capita income is $5,833 (in PPP terms) while it is $54,630 in the US and $39,137 in the UK.

The purchasing power parity conversion factor, used worldwide to compare income levels in different countries, is “the number of units of a country’s currency required to buy the same amounts of goods and services in the domestic market as a dollar would buy in the US”.

The pay panel observed, in light of protests by the three Service chiefs asking for more money and perks, that “defence service officers and JCO/ORs in India, based on 6th CPC pay scales, are placed quite well in terms of pay, even in relation to defence personnel in countries like US and UK, where the GDP per capita in PPP terms for the country as a whole is significantly higher than that of India”.

These conclusions are, however, equally applicable to civilian employees of the government who are similarly placed. The pay panel’s analysis did not take into account the augmentation of pay being recommended by the 7th CPC.

The IDSA, an autonomous institution funded by the government, was in 2015 commissioned by the Pay Commission to study how well the military and the generals were paid.

Source: TOI