Wednesday 31 December 2014

Dhamakedaar Ideas on the Eve of the New Year



Dhamakedaar Ideas

Please read post in the context (from Deccan Herald of 01 Jan 15)

1. Fiscal deficit is at 99% of the target as on 30 Nov 14 & with 4 months to go.
2. Excise duty has been hiked on petrol, diesel etc
3. Tax revenues are at 45% of the target for 2014-15. 


In his guest column in the Outlook magazine issue dated 29 Dec 14 at page 20, Hasan Suroor quotes Arun Shourie’s revelation that the Prime Minister likes to tell his advisors: “Arey yeh theek nahin hai; kuch dhamakedaar idea do.”



And in his Good Governance Day directive to the MoD, Shri Manohar Parikkar has requested all & sundry to provide ideas for improving the working of the MoD by emailing suggestions to nic-asst.mod@nic.in.



Therefore, the intention of writing this is to fulfil the Prime Minister’s requirement as well as assist the Defence Minister understand the enigma called ESM. 

Some readers will comment that every ESM with access to a computer, and an internet connection has written to every dignitary from the President of India & Supreme Commander of the Defence Forces to Chiefs of the Defence Forces, and so what is new or original in the contents of this epistle.



There is nothing new in this epistle but new “dhamakedaar ideas” to improve the working of the MoD, a problem that exists, and defies remedies since Independence.



The Dhamakedaar Idea of the BJP’s seasons in the sun – One Rank, One Pension.



Let me start with the cart - RM giving ESM (aka Ex-Serviceman) a shock at the Aaj Tak Conclave (as quoted by the esteemed Karan Thapar) by stating only “80% of OROP will be paid…because there is never 100% in everything” or words to that effect. Maybe, it escaped someone who wrote that script for RM, that 80% makes it modified parity, and not OROP! And the RM is a busy Minister!



Maybe Maj Gen Satbir Singh, Chairman of IESM (though Lt Gen Raj Kadyan was introduced as the Chairman of IESM on the Karan Thapar show!) will reconsider his demand by amending it to demand payment to ESM (ORs and Officers) & widows above the age of 80 years first, between 70 and 79 years next, and finally those between 60 and 69 years. 



Now to the horse:



 The Koshiyari Committee was provided the initial financial outgo of Rs 3000 crore and a recurring outgo of Rs 1300 crores (Rs 1065 crore for Veteran ORs & Rs 235 crores for Veteran Officers).



A second opinion was provided by the experts, the “abacus” and self-righteous guardians of the Public Exchequer, i.e. Deptt of Expenditure, Min of Finance. DoE/MoF provided the following data in two separate estimates dated 15 Jul 2011 and 01 Aug 2011 as follows, indicating a 10% increase annually: -



                    FY 2012-2013                 Rs 1430 crore



                   FY 2013-2014                 Rs 1573 crore



                   FY 2014-2015                 Rs 1730 crore



                   FY 2015-2015                 Rs 1930 crore, and



FY 2016-17               Rs 2379 crore, (attributed to the increase of 25% consequent to the implementation of the recommendations of the 7th Central Pay Commission).



Then, probably to scare the wits out of the Congress-led UPA Govt that was already facing a barrage of adversity due to scams, inflation, increasing CAD etc, the DoE/MoF also (helpfully?) suggested that an outgo of Rs 7480 crore would be required in 2011 to meet demands of civilian employees, which would (more ominously) increase at Rs 3000 crore per annum to a figure of Rs 62218 crore in FY 2016-17.



But, the Wisest Men of the Bureaucracy, the Cabinet Secretary and the Committee of Secretaries stated in 2012 that the annual outgo for OROP would be Rs 1400 crores with an initial total outgo of Rs 8000 crores to Rs 9000 crores.



In 2013, consequent to the wise conclusions of the Cab Secy and the select secretaries, the Govt implemented the Modified enhanced parity, where pensions of ORs other than JCOs of some groups and Officers were increased. But we are none the wiser if this amount was deducted from the estimates that we were soon to be confronted with.



In 2014, the CGDA led Joint Working Group (JWG) constituted by the MoD agreed to disagree on the estimates of Rs 9300 crores by the CGDA and between Rs 4600 crores to Rs 5100 crores by the Services HQ.



It probably did not occur to the mandarins of the MoD that CGDA, being the auditing arm of the MoD, would have better expertise to audit implementation of policy than lay down policy. But, either awed by the CGDA raising the bogey of the clarity of the Hon’ble Supreme Court’s order in the Rank Pay case and preparing a Draft Government Letter (DGL), or simply passing the buck, MoD again entrusted CGDA with a policy matter – preparing a DGL for OROP.    



Now, we come to yet another aspect – the politics of OROP that cloud the “achhe din” of BJP’s promise of “will pay” and “have paid OROP” echoing from the heights of Siachen!



Reminiscent of many plans, policy decisions coming a cropper against reality, the UPA, perhaps goaded by the then PM-candidate spewing fire at an ESM rally in Rewari, and showering promises on ESM, the otherwise tight-fisted FM of the UPA grandly announced OROP on the floor of the Parliament to thunderous cheers, from both the Treasury benches inside Parliament, as well as 29 lakh ESM & widows outside Parliament.



The alacrity with which then Defence Minister of UPA constituted the JWG, enunciated the definition of OROP and signed a written order was astounding. 

So ESM organisations joyously thumped chests (by the leaders of some ESM organisations) and counting the clinking of arrears in arrears in the pension accounts. But alas, as dreams being interrupted with every dawn of every morning, the OROP too has suffered.



 The present PM promised expeditious implementation of OROP from the INS Vikramaditya, through election rallies finally that momentous statement “mere bhagya mein likha hain” from the high altitude of Siachen. The Defence Minister, as well as his MoS announcing finalisation of modalities of OROP on many occasions appear to be bereft of ideas, plans and know-how of keeping their promises. 

Now, both the Prime Minister, and the Defence Minister have to produce something dhamakedaar.



ESM are getting the feeling that there is a wilfulness in not implementing OROP because they (like I) are unable to reconcile the regular announcements by Govt media that inflation is down, GDP is increasing, FIIs’ are investing more, Interest rates should be reduced, Black money is being traced and taxed filling the Public Exchequer, Prices of crude oil is down saving the Public Exchequer US $ 2 billion in imports costs, Decision not to appeal against judgements in the Vodafone and Shell and other cases, means the Govt can afford loss of several thousands of crores etc.



But the sobriety to this “Make in India” dream is provided by the Chief Economic Adviser stressing the need to cut down Rs 60000 crore to Rs 80000 crore to keep the fiscal deficit down and Govt announcing a cut of 20% in the Health Ministry’s budget, and the dollar ruling at Rs 64 or so on 30 Dec 14.

 

So, what are my dhamakedaar ideas to the PM and RM for OROP?



(1) Stand up and tell us the truth. ESM are patriots, Soldiers and Veterans, in that order. We speak the truth, and we don’t flinch from being told the truth. 



(2) Give us a “ complete payment of OROP by so-and-so” date. Do not use “we are only 200 days young Govt and UPA did nothing in 36500 days.” That is why you are in Govt and the UPA got less than 50 seats in Parliament! 

And remember, many of the young jawans and young officers face the enemy/terrorist/insurgent or whatever else is the euphemism used, from their first day of being inducted in battle.



(3)     Admit that your homework was not up to scratch. If the above are not dhamakedaar ideas, just think of the dhamaka if the OROP was implemented.



Litigation and Limiting the Implementation by Excuse



One Major Dhanapalan, with limited and personal financial resources, took on the behemoth of the MoD and its plethora advice and services of Govt Law officers. Just when the other similarly situated officers though they too would get the benefit of the judgment, the MoD, using advice and services of Govt Law officers, compelled them to file cases in various High Courts, which the MoD prayed for and transferred to the Apex Court (TP (C) No. 56 of 2007. The Apex Court ruled against MoD on 08 Mar 2010.



MoD, on the advice of the then Learned Solicitor General (Shri Gopal Subramanium) filed an Interlocutory Appeal No. 9 of 2010 instead of a Review Appeal – a statement that would subsequently be upheld by the next Ld Solicitor General (now Justice Rohinton F Nariman of the Apex Court). MoD, which lost this case also on 04 Sep 2102, and sought the opinion of the SG on further legal avenues.



The Ld SG (now Justice Rohinton F. Nariman ) opined that MoD must implement the judgement in letter and spirit and also advised the MoD to take whatever administrative decisions necessary to implement the Apex Court order.



Implementation has left much to be desired and a Contempt Petition No. 328 of 2013 has been filed. Defence Secretary and CGDA have been impleaded at the behest of the Apex Court and the case is listed for a hearing on 09 Jan 2015.



MoD has lost more cases than it has won, as can be proved by statistics obtained from the files, but denied to this author by MoD (DESW) transferring a request for information under the RTI Act, 2005 to Army, Navy and Air Force HQ who are neither the custodians nor repository of the information.



Yet, using advice and services of Govt Law Officers, MoD continues to file appeals. Where such appeals have been dismissed, the Deptt of Expenditure decides to assume more powers than the Apex Court as in the SAG-29 Pensioners Vs UoI case (OA 655 of 2010) culminating in dismissal of UoI’s Curative Petition No. 124 of 2014), where a Review Petition as well as a Curative Petition were dismissed. Now, Deptt of Expenditure, the original culprit, has decided to implement the order of the Apex Court only for litigants, though such an order has not been passed by the Apex Court.



Similar is the case by MoD/DESW where an Order dated 02 Jan 2014 to Services HQ to file appeals “in stereotyped cases” without taking the consent of MoD/DESW had to be withdrawn on 02 Feb 2014. 

More recently, the Apex Court dismissed MoD’s appeals in about 800 “stereotyped” cases in CA No. 418 of 2010 and tagged cases.      



Now factor in the waste of Public money in seeking legal advice, filing appeals, affidavits, rejoinders, fees for the Govt Law Officers vis-à-vis the amount that might have been saved if the case was won – Rs 310 against a cost of Rs 80000 or so!



What is my dhamakedaar idea?



Do Not File cases/appeals without applying one’s mind and not with just one motto – Deny benefits to ESM.



Review circumstances and background of every case/appeal filed and won or lost in the past 5 years. If the review points out to certain familiar, but venal, characteristics, take action against the MoD's officer(s) who initiated the case/appeal and against the Govt Law Officer’s whose inexpert advice resulted in infructous litigation.



Do Not Suffer The Blight of Unthinking (as Hasan Suroor’s article is titled)



Notings on file obtained through RTI Act, 2005 reveal the opinion of the MoD that Non-Functional Upgradation (NFU) has been denied to the Defence Forces because they are not organised Class A Services.



Is it because they are denied the Fundamental Right of forming Associations (unlike the IAS or IPS or IFS etc Officers Associations which make demands on the Govt for things like financial and legal assistance for erstwhile AP Govt officers in the Jagan Mohan Reddy case)?



Is it because the President of India, Supreme Commander of Defence Forces, and Constitutional head of the Republic of India signs the Commissioning Order, which is promulgated in the Gazette Extraordinary of India?    



Is it because while IAS and IPS and IFS officers are at decision-making levels in respective Ministries, the MoD is unique in steadfastly (stubbornly?) denying a similar place (organised Class A Officers) for Defence Forces Officers?



If Defence Forces officers are denied NFU because of not being organised Class A officers, what is the logic of placing officers of MES, BRO etc, earning higher emoluments & who obviously belong to organised Class A services, to work under the Defence Forces Officers?



If extra emoluments obtained through NFU do not determine status, how do the MES, BRO etc officers quote the higher emoluments for their places in a command and control organisation quoting higher emoluments?



Has the MoD etc issued an Office Memorandum or ID Note or whatever to the effect that emoluments do not dictate status, as stated by MoD in a brief to the Cab Secy Committee on Pay & Allowances anomalies relevant to the Defence Forces?



Finally, unthinking of the Wise Old Men of the Cabinet Secretary Committee, convened under the orders of then PM in 2012 who decided to pass on the “decision making” buck to the 7th CPC – ostensibly because it is an expert body that can take a holistic view on NFU and other pay anomalies relevant to Defence Forces.Not only have the anomalies remain unresolved for the past 8 years but will remain so for the next year (till 01 Jan 16), with resultant loss of income, that has been unfairly, and denial of natural justice, to bureaucrats! 



Which raises a serious doubt? Isn’t the 7th CPC comprise officers of the IAS, IPS, IAAS etc, whose heads, the wise Secretaries headed by the Cabinet Secretary, put up their hands because of the complexity of the problem? How does being part of 7th CPC make the same bureaucrats better at thinking out solutions? Was it just denial, and delaying on the part of those Cabinet Secretary Committee wisemen?



So, what are the Dhamakedaar Ideas?



Let Defence Forces officers occupy posts at decision making levels in the Ministry of Defence. Remember, they are the ones that lay down their lives and seek nothing more than what the Govt has promised them. They have served in areas risking their lives. If IPS officers can be posted up to the level of Special Secretaries in MHA, why not Defence Forces officers in MoD?



Don’t differentiate between different Officers of the Government by practicing blatant discrimination. Learn from the Parliament, the citadel of enacting Laws for the land because it does not differentiate between BJP, Congress, Samajwadi Party, BSP, CPI (M), CPI etc when deciding on Pay, Allowances and Pensions because they are differently organised.

Is it because politicians take the decisions and bureaucrats create mischief and hide it in voluminous notes on file?



So, why do the politicians make promises and let the bureaucracy discredit them? 

Then why does the PM, the Pradhan Sevak, trust bureaucrats to make a mockery of his promises before elections and assurances after assuming the office of the highest Executive, especially when it involves the Defence Forces - serving or ESM? 


Jai Hind; Jai Jawan

Monday 22 December 2014

Merry Christmas & A Happy New Year

To all readers and their families,

Wish you a Merry Christmas. Hope Santa Claus (aka Manohar Parikkar) fills up the stockings with gifts that you are eagerly looking forward to.

Wish you a Happy New Year filled with good health, peace of mind, and prosperity.

Thank you for your optimism and prayers for not just winning the Broad-banding of Disability benefits but also for the Rank Pay case, the effective date of pension and all the fight for justice. 

Thank you for the encouragement for keeping this blog alive with breaths of fresh air (your comments). 

Cheers!!!

Monday 15 December 2014

Trying to help the Hon'ble Defence Minister understand the Ministry of Defence.



By Speed Post – Article EK528283447IN of 15 Dec 2014
Veteran Air Marshal S Y Savur PVSM AVSM           
                                                                                   141 Jal Vayu Towers,
Cellphones:  +919449676278                            N G E F Layout,
                   + 919688782227                               Indira Nagar (PO),
Email: sysavur@gmail.com                               Bengaluru – 560 038
Blog: URL: sharad10525.blogspot.in              15th December 2014

To,

Shri Manohar Parrikar, MP
Hon’ble Raksha Mantri,
Ministry of Defence,
104, South Block, New Delhi – 110 011

SOME ASSISTANCE IN UNDERSTANDING
OF THE WORKING OF MINISTRY OF DEFENCE
Dear Hon’ble Raksha Mantriji,

          I have read in the newspapers and heard in TV news broadcasts that you want to understand how your Ministry of Defence works.

2.       Utilising the RTI Act, 2005 from November 2012 onwards, I too have been endeavouring to understand how the Ministry of Defence works, especially in treating Veterans, more commonly known as Ex-Servicemen, in different aspects of pensions, disability benefits, release of funds to the Ex-Servicemen’s Contributory Health Scheme (ECHS), and above all the logic/rationale in filing of hundreds of appeals, Special Leave Petitions, Writ Petitions, the odd Review Petitions, as well as the final stage in the Hon’ble Supreme Court, the Curative Petition.

3.       MoD has wasted much more funds in paying the Govt’s law officers to file or defend its own briefs than what it would have cost MoD to pay the Veterans/NoK. Needless to add, MoD has lost at least 90% of the cases (including the most recent one where the CJI headed Bench ruled against the MoD. My RTI Online request to the Deptt of Ex-Servicemen’s Welfare (DEXSW/R/2013/60027) in September 2013 was transferred to the Armed Forces, who cannot/do not maintain records and a Second Appeal before the CiC is pending.   

4.       I am enclosing an anthology, titled “Twists in the Tales,” compiled from the disclosures by MoD and CGDA. I hope it gives you a more complete perspective of how the MoD and its affiliates work in the Rank Pay Case of UoI/MoD Vs Lt Col N. K. Nair & Others.      
                                                                                                                                                                                                                             With Best Wishes
                                                                                                                                                                                    Sd/--------------------

What is the Twists in the Tales


On 8th March 2010, the Hon’ble Supreme Court ordered that amount of Rank Pay deducted in 1987 prior to revision of Pay in the Integrated Scale was wrong in Transfer Petition (Civil) No. 56 of 2007.

This judgment was followed by an uncharacteristically fast and furious exchange of notes, meetings, legal consultations and it ended with filing Interlocutory Application No. 9 of 2010 in TP (C) No. 56 of 2007.     


The Twists in the Tales is a compendium of the notes from the files of the Office of the Controller General of Defence Accounts (O/o CGDA), Ministry of Defence (MoD), and its Division of Finance/Defence to have the Hon’ble Court recall, modify, re-hear de novo the case of UoI Vs Lt Col N K Nair & Others.

It is also the revelation of how CGDA, primarily an audit and accounting service, which sets the implementation methodology for the MoD letter dated 27th December 2012.

MoD appears to accept that 'conflict of interest,' especially as it has a Defence (Finance) division, headed by a Secretary, who in any case is an IDAS officer, promoted from the office of the Controller General of Defence Accounts!   

Who will audit the CGDA in the Rank Pay case and the methodology? Would CGDA audit itself and then do what if there are faults - as indeed pointed out by the (now late) Attorney General for India? Practice nepotism by not holding itself accountable?  

One shudders to think what would have happened if the C & AG  went about deciding implementation methodology for the 2G spectrum case and also the Coal mines allotment case. Could C & AG then have audited itself and found the loss to the Public exchequer of the lakhs of crores of rupees? And, most importantly, laid the blame at its own doorstep?


 


 

Sunday 14 December 2014

MoD & MoF tying themselves in knots - Disclosure of Cab Sec Committee Report



Replies to First Appeals by MoD dated 04 Dec 14 received on 12 Dec 14
and MoF dated 09 Dec 14 received on 13 Dec 14

Government of India
Ministry of Defence
No. 35(1)/2013/D (Pay/Services)                            New Delhi, the 04 December, 2014

ORDER

          Subject:        Appeal under RTI Act, 2005 filed by Shri S Y Savur

                    Reference is invited to the appeal dated 7.11.2014 by Sh S Y Savur received vide MoD ID No. MODEF/A/2014-D (RTI) (61820) dated 11.11.2014 against the reply given by CPIO, D (Pay/Services), MoD vide letter No. 35 (1)/2013/D (Pay/Services) dated 21.10.2014.

2.       I have considered the aforesaid appeal on the basis of the facts submitted by the appellant and the information provided available with the CPIO. The grievance of the appellant is that the CPIO has transferred his request for a copy of the Committee of Secretary Report to Ministry of Finance (Deptt of Expenditure) when MoD itself has a copy of the Report.

3.       The CPIO transferred the request to Ministry of Finance (Deptt of Expenditure) as they were the serving Ministry, for the said Committee. Further, the report of the Committee has been classified as ‘Secret.’ Therefore, the decision to give a copy of the Committee Report is to be taken by that department only. Accordingly transfer of the request of the appellant to Ministry of Finance (Deptt of Expenditure) for providing a copy of the Report is in order. 

4.               However, CPIO D (Pay/Services), MoD has been directed to ascertain the status from CPIO, Ministry of Finance (Deptt of Expenditure) with regard to the endorsement dated 21.10.2014 under intimation to the appellant. And if a copy of the said report has not been provided to the applicant so far, is there any objection under Section 8 (1) (i) of the RTI Act, 2005, from their side in respect of disclosure/providing the same by Ministry of Defence. 
Sd/--------------
(Pradeep Kumar)
Director (AG-I) & Appellate Authority

Copy of this order be supplied to: - Shri S Y Savur, 141, Jal Vayu Towers, NGEF Layout, Indira Nagar (PO), Bangalore - 560038 


RTI MATTER
No. 35 (1)/2013/D (Pay/Services)
Government of India
Ministry of Defence
New Delhi, the 04 December, 2014

Office Memorandum

          Subject: Seeking information under RTI Act – 2005: Shri S. Y. Savur

          The undersigned is directed to refer to this Ministry’s letter of even number dated 21.10.2014, addressed to Shri S. Y. Savur of Bangalore and copy endorsed to US & CPIO (EV), Ministry of Finance (Deptt of Expenditure) vide which RTI application dated 4.10.2014 of Shri S. Y. Savur was transferred for providing a copy of the Report of the Cabinet Secretary Committee (copy enclosed). Earlier, CPIO D/Expenditure had not provided a copy of this report to one Shri Aditya Singh stating that it qualifies for exemption under provision to rule 8 (1) (i) of the RTI Act, 2005 vide letter 128/EV/RTI/2013 dated 4.9.2013 (copy enclosed). Shri Savur has filed an appeal in this Ministry (copy enclosed). In view of the above, it is requested to intimate whether a copy of the said Report has been provided to Shri S. Y. Savur w.r.t. this Ministry’s endorsement dated 21.10.2014. And if a copy of the said report has not been provided to the applicant so far, is there any objection under section 8 (1) (i) of the RTI Act, 2005 from their side in respect of disclosure/providing the same by Ministry of Defence.    
Sd/-------------
(Prashant Rastogi)
Under Secretary & CPIO
CPIO & US (EV),
Ministry of Finance,
Department of Expenditure,
New Delhi.

Encl: as above

Copy to: - Shri S Y Savur, 141, Jal Vayu Towers, NGEF Layout, Indira Nagar (PO), Bangalore - 560038 

APPELLATE AUTHORITY US/19 (1) OF THE RTI ACT 2005 & DIRECTOR
(ADMIN.)
DEPARTMENT OF EXPENDITURE, MINISTRY OF FINANCE

          Case No.                                              AA/21/2014
          Name of the Appellant:                        Shri Sharad Yeshwant Savur
Vs
CPIO (EV), Department of Expenditure, Ministry of Finance

Subject:        Appeal under Section 19 (1) of the RTI Act 2005

          The appellant has filed an appeal dated 19.11.2014, received by the First Appellate Authority on 24.11.2014 under Section 19 (1) of the RTI Act, 2005 in respect of his RTI applications dated 04.10.2014 and 07.11.2014. 

2.       I have carefully gone through the facts as available in the file and found that although orders relating to recommendations of the Cabinet Secretary Committee regarding pension have been issued and pay related matter has been referred to 7th CPC by MoD, but the process of downgrading the Security grading of the relevant file is not yet complete. This Department has not received any communication from MoD confirming that the security grading of the concerned file has been downgraded. Hence, the reply given by CPIO (EV) to the applicant vide letter No. 202/EV/RTI/2014 dated 05.11.2014 and 203/EV/RTI/2014 dated 05.11.2014, is correct. 

ORDER

3.       The appeal is disposed off.
Sd/-----------
09.12.14
(Vijay Kumar Singh)
Director (Administration) and Appellate Authority
Dated: 9.12.2014

Copy to:
1.       Shri Sharad Yeshwant Savur, 141, Jal Vayu Towers, NGEF Layout, Indira Nagar (PO), Bengaluru - 560038

2.       US & CPIO (EV)

3.       Record copy/

Friday 12 December 2014

Background Notes to Cabinet Secretary Committee - Reply to RTI application



MODEF/R/2014/62150 dated 20 Nov 14
Background Notes for Cabinet Secretary Committee

Online RTI Request Form Details

Public Authority Details:-

* Public Authority Department of Defence

Personal Details of RTI Applicant:-

Deleted by author

Request Details:-
* Description of Information Sought

Please provide me copy of MoD ID dated 17.7.2012 which is at Encl 10-A of File No. 22(4)/2012-D(Pay/Services).

Please also refer to Para 2 of notes 74 and 75 of the ibid MoD file for clarity, if any, required.
*
Reply dated 08 Dec 14 received by Speed Post on 12 Dec 12

By Speed Post
RTI Matter
No. 35 (1)/2013/D (Pay/Services)
Government of India
Ministry of Defence
New Delhi, the 08 December 2014
To
-----------

          Subject: Seeking information under RTI Act – 2005.

Sir,

          Reference is invited to MoD ID No. MODEF/R/2014(62150) dated 20.11.2014 (received in this section on 24.11.2014) forwarding your application dated 19.11.2014 on the above subject.

2.       As desired, a copy of MoD ID No. 22(4)/2012 – D (Pay/Services) dated 17.7.2012 alongwith its enclosures is sent herewith (9 pages).
3.       The Appellate Authority is Shri Pradeep Kumar, Director (AG-I), Ministry of Defence, Room No. 102, Sena Bhawan, New Delhi.
Yours faithfully,
Sd/-------------
8/12/14
(V. N. Raveendran)
Under Secretary & CPIO
Encl: as above (9 pages)

(10/A)
Ministry of Defence
D (Pay/Services)

Sub: Constitution of a Committee under the chairmanship of Cabinet Secretary to look into pay and pension related issues of relevance to Defence services personnel and ex-servicemen.

          Ref: Cabinet Secretariat’s Order No. 213//2/3/2012-CA.IV dated 13th July, 2012
         
          Background notes on the individual points for the meeting on 18th July, 2012 at 3.30 p.m. are forwarded herewith.
          Sd/--------------
(Naveen Kumar)
Director (AG)
Tel No. 23014036
Encl: As above

Cabinet Secretariat (Attn: Sh. L. C. Goyal, Additional Secretary)
Ministry of Defence I. D. No. 22/4/2012 dated 17th July, 2012

Copy (with enclosure) to:

(i)      Principal Secretary to the Prime Minister
(ii)      Defence Secretary
(iii)     Secretary, D/o Expenditure
(iv)     Secretary, D/o Ex-Servicemen’s Welfare
(v)     Secretary, D/o Personnel & Training
(vi)     Mrs Ajanta Dayalan, Addl Secy, Cab Sectt with 7 copies of the Background Notes
(vii)    Secretary, D/o AR & PG

Background Note

Common Pay Scales for in-service JCOs/ORs

          Background: Prior to VI CPC, JCOs/ORs (collectively referred to as PBORs) in Defence Forces were placed in three different groups depending upon the trade groups that represented different educational, technical and skill requirements. Different pay scales were admissible to similar trade groups in different Services. The Services in their Joint Memorandum submitted to VI CPC proposed a common set of pay scales for PBORs of three wings of Defence Forces. The Pay Commission accepted the demand and granted common pay scales to PBORs within three Services recruited post 1.1.2006. The Commission also reduced the three Trade Groups (X, Y, and Z) to two (X and Y) by merging Z Group in Y Group. In order to maintain the edge enjoyed by Group ‘X’, the Pay Commission recommended grant of an additional element of Group ‘X’ Pay of Rs 1400/- p.m. This changeover has resulted to (sic) two categories of PBORs i.e. one prior to 1.1.2006 at separate pay scales and other post 1.1.2006 at common pay scale as granted by VI CPC. It is noticed that in some cases pay of pre-2006 senior ranks in Y Group has been lowered to junior rank in X Group who are in receipt of an additional element of Rs 1400 (Group ‘X’ Pay) which goes contrary to the stand taken by VI CPC (Para 2.3.25). An example is given below: -    

Rank & Group
Stage in the pre-revised scale
Initial fixation
Grade Pay
MSP
‘X’ group Pay
Total revised pay
Difference in initial fixation
Hav ‘Y’ Group
3700
7050
2800
2000
0
11850

- 600
Sep ‘X’ Group
3670
7050
2000
2000
1400
12450

Demand:    The Services demand that common pay scales be also made applicable to all in-service JCOs/Ors of three Services. The Services have suggested that all in-service PBORs of ‘Y’ Group and erstwhile ‘Z’ group be first upgraded to the bext of ‘X’ Group scales for each rank and then the upgraded common pay scale be implemented by VI CPC factor of 1.86 to arrive at new replacement scales in PB-1 and PB-2.  They have also recommended a Table of new scales in this regard which is as under: -

Rank
Existing ‘Y’ scale Army/Navy/Air Force
Upgraded scale (best of ‘X’ Group)
Corresponding new pay band as per fixation table SAI/SAFI/SNI 1/S/08
(1.86 multiple
Sep/AC/Seaman II
3250/3250/3325
3675
6840
LAC/Seaman I
3650/3650
4025-60-4925
7490-9170
Nk/Cpl/Ldg Seaman
3425/3900/3900
4150-70-5200
7720-9680
Hav/Sgt/PO
3600/4320/4320
5000-100-6500
9300-12090
Nb Sub/JWO/CPO
5620/5620/5620
6000-125-8250
11160-15350
Sub/WO/MCPO II
6600/6600/6600
6750-190-9790
12560-18210
Sub Maj/MWO/MCPO.I
6750/6750/6750
7400-200-10200
13770-18980

Justification/Rationale given by Services:          VI CPC granted common pay scales within three Services for JCOs/Ors recruited after 1.1.2006 but did not grant the same to JCOs/Ors who were already in Service on 31.12.2005. This has resulted in two categories/classes of JCOs/Ors i.e. one prior to 1.1.2006 with separate pay scales and one post 1.1.2006 with common pay scales. This anomaly can be addressed by upgrading all in-service JCOs/Ors of ‘Y’ and erstwhile ‘Z’ group to the best of ‘X’ group scales in each rank, as the edge enjoyed by ‘X’ Group JCOs/Ors over ‘Y’ and ‘Z’ groups has been compensated by VI CPC by granting them additional Group ‘X’ pay of Rs 1400/- over and above their normal fixation. Thereafter, the upgraded common scales can be multiplied by VI CPC factor of 1.86 to arrive at new replacement scales in PB-1 and PB-2.

Views of MoD:    This issue was recommended by the Ministry to the CoS in May 2008. While proposing decisions on CPC recommendations for Central Govt employees, on certain department specific issues the Note for CoS stated such issues may be considered by the concerned Ministries/Deptts after due consultation with Ministry of Finance/DOP &T as the case may be. The matter is under examination in the Ministry in consultation with Def (Finance). 

The Pranab Mukherjee Committee Report: This issue was not considered by the Committee.

Financial Implications:  Rs 1192 crores

Background Note

Initial pay fixation of Lt Col/Col and Brigadier/equivalent 

Background:        Before VI CPC, Armed Forces Officers in the ranks from Captain to Brigadier/equivalents were receiving Rank Pay in addition to their basic pay. Rank Pay was part of basic pay. VI CPC recommended running pay bands with grade pays on par with those recommended for civilian officers along with Military Service Pay for all officers to the rank of Brigadier/equivalent in Armed Forces.

Demand:    The Services have demanded that initial pay fixation of Lt Col, Col and Brig should be done with reference to S-25 scale.

Justification/Rationale given by Services:          Analysis of the replacement scales granted reveals the following: -

(a)      Lt Col to Brig have been fixed lower than S-25 scales, whereas VI CPC had recommended replacement scales at par with S-25 scales.  

(b)     Placing Col/equivalent at Rs 40890 is one step lower than Rs 42120 granted to civilian officer drawing Rs 17100 in the S-25 scale.

(c)      In case of Brig replacement scale is lower even within S-24 scale. A civilian officer drawing Rs 1900 in S-24 scale has been granted replacement scale of Rs 44700 whereas Brig has been granted only Rs 43390. This is two increments lower than a civilian officer in the S-25 scale at Rs 19100 who has been granted a replacement scale of Rs 46050.

Accordingly it is demanded that initial pay fixation of Lt Col/Col/Brig should be done with reference to S-25 scale – with pre-revised starting scales of Lt Col/Col/Brig should given replacement scale of Rs 39690, 42120 and 46050 respectively. Similar re-fixation of pay should be done for equivalent officers in AMC/ADC/RVC after including DA on NPA.

Views of MoD:    The Services have based their case on merger of Rank Pay with basic pay before fixation of pay. Pay Commission in their report has recommended running pay bands on par with those recommended for civilian officers needs to be introduced in respect of Defence Forces as well. The pay of officers in Defence Forces has been fixed in line with that of civilian officers. 

The Pranab Mukherjee Committee Report:       The basis of this demand, i.e. merger of Rank Pay in basic pay was examined in a detailed manner by the Committee but the same was not accepted.  

Financial implications:           Rs 34.48 crores

Background Note

Review and enhancement of Grade Pay

Background:        As against individual pay scales for different categories of personnel, the VI Central Pay Commission recommended running pay bands with distinct grade pays (sic).

Demand:    The Services have stated that the VI CPC has not taken into account Rank Pay (which was part of Basic Pay). They have demanded that Rank Pay may be defined in the services Instructions stating that “Rank Pay forms part of Basic Pay” and other relevant paras may accordingly be amended. Thus, Grade Pays (sic) may be re-fixed on the basis of pay which includes Rank Pay. For other personnel, the grade pay should also be similar to that granted to a civilian employee getting the same pre-revised pay. The grade pays (sic) sought are as under: - 

S No.
JCOs/ORs
Amount of Grade Pay
Officers
Amount of Grade Pay
1
Havildar
Rs 4200
Lieutenant
Rs 6100
2
Naib Subedar
Rs 4600
Captain
Rs 6600
3
Subedar
Rs 4800
Major
Rs 7600
4
Subedar Major
Rs 5400
Lt Colonel
Rs 8700
5
-
-
Colonel
Rs 9000
6
-
-
Brigadier
Rs 9500

Justification/Rationale given by Services:          It is stated that while grade pay in the case of civilian officers is higher than that granted to an officer in Defence Forces who was earlier drawing more pay. As the grade pay determines seniority of posts within one’s cadre and not between different cadres, it cannot be ruled out that the different grade pays (sic) may be subjected to varied and incorrect interpretation by different organizations in future.

View of MoD:      The matter relating (to) revision of grade pay to officers was examined in 2008 also. The Government after a long deliberation on the VI CPC recommendations decided to increase Grade Pay of middle level Armed Forces officers (except Lt/equ) thereby meeting the demand of the Services, but did not accept its point on the issue of merger of Rank Pay in Basic Pay. Subsequently, while examining draft Service Instructions for pay revision, Ministry of Finance also did not approve the merger of Rank Pay with Basic Pay and observed that pre-revised scale and Rank Pay should be shown distinctly in two separate columns in pay fixation tables. Accordingly, the Service instructions were issued.    

The demand in case of PBORs was not part of the issues/anomalies raised by the Services in 2009. However, the matter was raised in 2011 and was not agreed to. The matter is being re-considered.

The Pranab Mukherjee Committee Report:       Not merging Rank Pay with Basic Pay was upheld in the Pranab Mukherjee Committee Report. It was also emphasized therein that the Central Pay Commission are recommendatory authorities and final decision of the pays called as well as parity between various levels/ranks of civilian and Armed Forces officers is taken by Cabinet, and as such the Cabinet decision is the final word on the subject.

Financial Implications: Rs 41 crores.
Background Note

Placing of all Lt Generals in HAG+ scale

Background:        The upgradation of pay of Lt Gen/equivalent has been engaging the attention of the Government since 1990s. This issue was rejected by the Cabinet in November 1997. The matter was further examined by the Committees post V CPC but no decision could be taken in the matter. The Services took up this matter with VI Central Pay Commission seeking pay scale Rs 24050-650-26000 for Lt Gen/equivalent. However, the VI CPC did not make any recommendation on this issue. The Government reconsidered the matter in April, 2009 and decided to grant HAG+ scale (Rs 75500-80000) to 1/3rd of Lt Gens/equivalents with effect from 1.1.2006.

Demand:    The Services have demanded that all Lt Gens/equivalents should be placed in HAG+ scale.

Justification/Rationale given by Services:          The Services have cited the responsibilities of Lt Gen/equivalent in various capacities viz Chiefs of Staff, Principal Staff Officers, Director Generals (Heads of Arms and Services), Director General, Corps Commanders and Heads of training Institutions.   

Views of MoD:    The upgradation of pay scales of Lt Gens/equivalents was not agreed to by the Government before VI CPC. After VI CPC, the matter was reconsidered in April, 2009 (and) it was decided to give higher pay scale (HAG+ scale) to 1/3rd of Lt Generals/equivalents. This was agreed to by the then COAS. In the light of the above, the present demand of the Services for grant of HAG+ scale to all Lt Generals/equivalents goes against the stand taken by the Services in 2009.  

The Pranab Mukherjee Committee report:                 This issue was considered by the Committee and it was stated that the COAS has already agreed to grant Army Commanders scale (Apex scale – Rs 80, 000) on a non-functional basis to a certain number of Lt General level officers. This should satisfy the Armed forces. Lt Gens in Defence Forces are equated with Additional Secretaries on the civilian side and prior to the VI CPC, both were in the scale of Rs 22400-24500. There is no comparison of Lt Gens with officers on the civilians side as those in HAG+ scale had a higher pay scale of Rs 24050-26000 prior to VI CPC. This relativity was not disturbed by the VI CPC and the CoS did not recommend any change in the matter.     

Financial implications: Rs 0.83 crore.

Background Note

Grant of Non-Functional Upgradation (NFU) to Armed Forces personnel

Background:        Non functional upgradation is based on the recommendation of VI CPC. It provides an opportunity to all organised Group ‘A’ Services to reach higher scales of pay, two years after the same is granted to IAS officers at the Centre. Though the Pay Commission recommendations have been extended to IPS, IFS, the same has not been done for Defence Services. This benefit has also been extended to some Group ‘A’ Services like MES, BRO, Survey of India etc who operate alongwith Armed Forces in a supporting role. 

Demand:    The Services have demanded that non functional upgradation be extended to Armed Forces Officers.

Justification/Rationale given by Services:          The service conditions in Armed Forces are more stringent and harsh as compared to those in other Organised Group ‘A’ Services. Armed Forces are stated to fulfil all attributes of Organised Group ‘A’ Services. Grant of Non Functional Upgradation to those operating alongwith Armed Forces in a supporting role has created serious command and control and functional problems.

View of MoD:      The issue was examined in the Ministry and it was felt that the service conditions of Armed Forces are quite different when compared to civilian employees. Ample benefits in the form of Military Service Pay and various allowances are available to the Armed Forces officers which are not admissible to civilian employees. Therefore, it is not logical to compare the earning of two services. Moreover, the Government orders are for organised Group ‘A’ Service and Armed Forces do not have such set up.

The Pranab Mukherjee Committee report:        Though this particular issue was not considered by the Committee, it was stated in the report that for functional purposes, salary cannot be the basis to determine status.

Financial implications:  Rs 69 crores.   

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