Part IV - Comments of MoD on Additional Issues by 7th CPC

F No. 22/6/2015 – D (PCC)

Ministry of Defence

D – Pay Commission Cell

Room No. 215, B Wing, Sena Bhawan

New Delhi, Dated 24^th June 2015

Subject: Comments/clarifications on the issues raised by Associations/Federations representing Defence Civilian Employees of Indian Army and Indian Navy

Reference Secretary’s DO letter No. 7CPC/182/MoD (Army)/2015 dated 13^th May 2015 on the above subject.

2.      Comments on the six issues raised in the main letter are enclosed. As regards information in respect of the Annexures attached with the letter, the same is being compiled and will be sent shortly.  

     Sd/-------------

(R Pandyan)

Deputy Secretary (PCC+MIS)

Tele: 2301 3416

Sh D K Rai, Director

7^th Central Pay Commission

Chhatrapati Shivaji Bhawan

B-14/A, Qutub Institutional Area

New Delhi – 110 016

COMMENTS ON ISSUES RAISED IN

                              D. O. LETTER DATED 13^TH MAY, 2015      

Para No.	ISSUES	MoD COMMENT
3	Through one of the proposals in the JSM, the Services have sought the upgradation of posts of eight, five and three Principal Staff Officers (PSOs) in the Army, Air Force and Navy respectively to the Apex level. The Services have contended that PSOs head independent verticals of operations, human resource management, logistics, training, policy systems and are responsible for conceiving, planning, and executing policies that are crucial for shaping the future of the three Services on these issues. Ministry of Defence may like to furnish its considered views with regard to the upgradation request.	The logic given in JSM in para 4.2.70 is number of years taken for IAS and IPS to get apex level and Defence Services officers to get to the same level. They have also raised the point of percentage of officers reaching these levels. The Services within armed forces have totally different service conditions, promotion and retirement rules vis-à-vis that in the civil organisations and civil services like IAS and IPS. Hence the logic given in JSM does not hold for upgrading the posts of PSOs to the Apex level on the basis of other civil services. Another reason cited in Para 4.2.71 and 4.2.72 is that PSOs head independent verticals of Operations as well as advisors to the Service Chiefs which is similar to the work of Secretary. The role of Secretary to the Government of India is very different than the role of PSOs to Service Chiefs and they cannot be compared. Moreover, at present there are 7 Army Commander posts in the Apex level and the Vice Chief (total eight) posts (equivalent to Secretary to Government of India) in the Army, 7 (seven) in Air Force and 5 (five) in Navy. Besides three more posts each for Army, Air Force and Navy are available in the joint Command. This has created administrative difficulties in smooth functioning of Ministry of defence as there are too many officers at the same rank and proper command, control and administrative structures have got diluted. Further, the upgradation of the post should be based on functional requirement and can be considered separately by the Ministry on its own merit. In the light of above, MoD does not  support the proposal given by JSM regarding upgradation of posts of PSOs in Army, Air Force and Navy to the Apex level.
4	The Services have pointed out that pay upgradation of Artisans has been effected by the Ministry of Defence in June 2014 whereby revised scales as per Annex ‘C’ have been introduced. The Services are of the view that Sergeant and equivalent of both Group ‘X’ and ‘Y’ have traditionally drawn higher pay than Master Craftsman. Hence the unilateral upgradation of Master Craftsman over Sergeant and above has created an anomaly. Ministry of Defence may like to apprise the Commission of its views in the matter.	The revised pay structure as shown in Annex ‘C’ was granted to the Artisan staff in June 2010 and not June 2014. The existing Grade Pay structure shown in Annex ‘C’ is also not correct. Background Prior to 6th CPC, the post of Master Craftsman (MCM) in all the Government organisations, except Ministry of Railways, was in the scale of Rs 4500-7000 (revised PB-1, GP Rs 2800/-). In the Ministry of Railways the post of MCM was in the pay scale of Rs 5000-8000 (revised PB-2, GP 4200/-) even though its promotional post of Chargeman was also in the identical scale. As such there was demand from the artisan staff of the Defence Establishments for parity with the Railways. 6th CPC has recommended future placement of the post of MCM in PB-1 with GP of Rs 2800 in all Government Workshops and merger of MCM of Railways in the pay scale of Rs 5000-8000 with Chargeman. However, recommendation of the 6th CPC on Master Craftsman was referred by the Government to a Fast Track Committee. On the basis of the recommendation of the Fast Track Committee, the post of MCM in Defence Establishments was placed in PB-2 with GP of Rs 4200/- and the artisan staff in the MoD establishments was re-organised as under: - Cadre and pay structure prior to 6th CPC Cadre and pay structure post 6th CPC Post Pay Structure Post Pay Structure Skilled Grade Rs 3050-4950 Skilled Grade PB-1, GP Rs 1900 Highly Skilled Grade* Rs 4000-6000 Highly skilled grade –II PB-1, GP Rs 2400 Highly skilled grade I PB-1, GP Rs 2800 Master Craftsman Rs 4500-7000 Master Craftsman PB-2, GP Rs 4200 * Post 6th CPC, the posts of Highly Skilled Grade were bifurcated into Highly Skilled Grade II and Highly Skilled Grade I in the ratio 50:50      Examination of the present demand of the Services Upgradation of Master Craftsman (MCM) over Sergeant and above: - This point was earlier raised by the Services. They had recommended enhanced grade pay in respect of JCOs/ORs (Havildar/equiv – 4200, Nb Sub/equiv – 4600, Subedar/equiv – 4800 and Subedar Major/equiv – 5400) on the ground that certain percentage of UDCs have been placed in Grade Pay of Rs 4200/- and the Grade Pay of MCM has been revised to Rs 4200/- The matter was examined in consultation with Defence (Finance) and proposal of the Services was not agreed to on the ground that increase of Pay/Grade Pay in respect of one set of employees cannot be cited as basis for the similar increase in Pay/Grade Pay for other employees especially where the conditions of services rendered are entirely different and the services, functions and duties are not comparable. Moreover there cannot be a comparison between services rendered by civilian employees and the service rendered by the Armed Forces. In many cases Armed Forces may be getting more pay scale/grade pay or a higher Pay Band which cannot be a criteria for upgradation of Pay Band/Grade Pay of civilian officers. This point, alongwith other pay related issues was also considered by a Committee headed by Cabinet Secretary. The Committee recommended that pay related issues may be specifically referred to the next pay commission for its consideration as the Pay Commission is the expert body set up for this purpose which can examine these issues in a holistic manner. Government has accepted these recommendations. The matter has been referred to 7th CPC on 25.08.2014.
5	The number of defence forces personnel retiring every year is quite large – around 80, 000. Of these a significant percentage are under the age of 40. The policy/approach of Ministry regarding possibility of re-employment of Ex-Servicemen in Non-core activities of Defence Forces, Defence civilian cadres, Civilian organisations, and DPSU of MoD may be shared with the Pay Commission	Policy of Employment of ESM in Non-Core Sectors: As per existing government policy there is a horizontal reservation for ESM in various Central Government Departments as per details below. However, reservations for ESM in these sector are also as per existing policy. Defence forces are the only users of the out-put of the Non-Core activities. Existing reservation: S No. Organisation Reservation (a) Central Government/Ministries/department including Railways (a) Group ‘C’ – 10% (b) Group D – 20%* (b) Central Para Military Forces Upto Asst Commandant – 10% (c) CPSUs and Banks (a) Group C – 14.5% (b) Group D – 24.5* *Group D has been abolished after 6th CPC.
6	As regards resettlement of Ex-Servicemen, the Commission may be apprised on initiatives taken by DGR for resettlement of PBORs, particularly NCOs and officers, in particular Short Service Commissioned (SSC) officers. Data regarding re-employment of PBORs and Officers by Central, State Government and Private Sectors in the last few years may also be shared with the Commission. Initiatives regarding skill upgradation of PBORs especially NCOs and Officers in particular SSC Officers to make them more employable in private sector may be shared with the Commission.	Data Regarding Employment (a) Central Government: DGR has been designated as the nodal agency for reservation monitoring in August 2014. While DGR has sought data from all Government agencies, however, only 33% have responded. The details of ESM employed based on existing reservation policy is given at Appendix ‘A.’     (b) State Government: The existing reservation policy of various states is given at Appendix ‘B.’ While there is no data available on what is the actual status of employment of ESM, however, data obtained from various Rajya Sainik Boards is given at Appendix ‘C.’ Out of a total of 4, 45, 822 ESM registered in these States, only 4,466 are employed by the State Government departments/State PSUs. (c) DGR: The details of employment and training through DGR for the last three years as per the data available with DGR are as follows: - Details 2012 2013 2014 Officers Placed 566 511 474 JCO/OR placed 1170 1732 2649 Security agencies registered 160 315 380 Security agency guards (contractual) 37162 39018 23495 ESM employed in coal companies 68 30 96 Widows/Disabled ESM attached in ESM Coal companies 78 51 36 Management of CNG in NCR 26 15 62 COCO Scheme (For BPCL/ IOCL) 380 609 499 (149) Issue of eligibility Certificates for allotment of Oil Product agencies 148 149 65 Mother Dairy Milk booth/Safal Booth 140 270 211 Gopaljee Dairy/Farm Fresh - 58 05 Total 39898 42758 27972 (ii) Training: DGR conducts resettlement training from 15 days to six months for all ranks. The subjects chosen are based on the demand of the industry and environment. The number of personnel provided training for past few years is as follows:   Category 2012-13 2013-14 2014-15 till 31st Dec 14 Officers 748 562 517 JCOs/ORs 20730 21991 22887 ESM 155 155 41 Total 21633 22708 23445 (d) Defence Security Corps (DSC): In addition to the above, a large number of ESM are employed in the DSC. Details of fresh recruitment in each of the last three years is as follows:      (i) 2012 – 4220 ESM      (ii) 2013 – 4901 ESM      (iii) 2014 – 4498 ESM 2. Recent Initiatives (a) Reservation in MoD Controlled Organisations like DRDO, DGQA and Def PSUs. Department of Defence Production (DDP) has issued instructions to all the Defence PSUs and Ordnance Factories to impart proper training to the Ex-Servicemen which may help them in building the necessary skill sets so that such trained ESM may be employed in such organisations against the stipulated percentage of reservation. Accordingly, DGR has been advised to coordinate and compile appropriate lists of probable/suitable candidates retired from Defence indicating their basic data base like their nativity/residential address/contact number etc and have them sent to DDP. DGR is actively pursuing the matter with such organisations. (b) New Avenues of Employment in Government Sector. DGR had forwarded a concept paper on “Employment of ESM in Nation Building” to the PMO. One of the proposals for employment was to involve ESM in Mission Clean Ganga by raising four Territorial Army (TA) Battalions of ESM on the model of Ecological TA. The proposal is under active consideration. DGR has also forwarded a fresh proposal to raise ESM manned Disaster Management Battalions at the State level. If approved, these too will provide ESM jobs close to home. The model being worked out is the same for Mission Clean Ganga and TA Battalions. (c) Preparation for Government Job Exam. A proposal is under consideration for conducting a pilot training programme to prepare retiring soldiers and ESM for entrance exams to various Govt/PSUs/Banks/Police Organisations with an aim to ensure that maximum seats reserved for ESM are filled up. (d) MoU with CII. To enhance opportunities for ESM in the ever growing Corporate sector, an MoU was signed with CII on 19 Sep 14 with the Hon’ble RM gracing the occasion. While some progress has been made, however, the lack of incentive for the industry has resulted in a lack of enthusiasm. To overcome the same, DGR has taken up a case with Hon’ble Finance Minister wherein a proposal has been mooted for tax credits and preference in Government procurements for companies that hire a larger percentage of ESM. If accepted, this will go a long way in motivating the corporates to employ ESM as is the case in some western countries.  (e) Job Fairs: As part of the MoU with CII, DGR has formalised the structure and methodology for conducting ‘Job Fairs’ to provide a platform where the industry and servicemen can meet and suitable employment provided. There is a proposal to organise four Job Fairs on a regional basis every quarter in consultation with Service Headquarters. The first such fair was conducted on 6-7 May 15 at the NCC Camp at Army Parade Ground, Delhi Cantt. Approximately 3000 ESM and over 100 companies attended the fair. The next fair is being planned in Oct 15 in Mumbai under the Indian Navy.
7	One of the points made in the Addendum to the Joint Services memorandum is that the Grade Pay for Defence Forces Officers be determined by delinking them from ranks and linking them to the length of service. Ministry of Defence may like to furnish its considered views in this regard.	Grade Pay concept is related to rank or position occupied in the hierarchy of the organisation and in Armed Forces it is linked to Command and Control. Therefore, delinking Grade Pay from the Rank  shall result in various problems. Hence, the proposal is not recommended.
8	The data on field posting of officers (Lt Col/equivalent, Colonel/equivalent, Brigadier/equivalent) in the Services (Annexure D) and posting profile of service personnel in field/peace locations (Annexure E) received vide MoD letter No. 22/5/2014-D (PCC) dated 12.05.2015 appear to be based on varying assumptions. It is requested that the data provided be reviewed with a view to conforming that it is consistent with the classification based on geographical location approved by MoD. To bring out the facts more clearly the data on deployment may be provided as per Annex D and E as enclosed.	Data on field posting of officers and posting profiles of service personnel in filed locations: - The requisite information is being obtained from TRIPAS and the same will be furnished as soon as it is received.

Appendix ‘A’

0515/DGR/RMC dated   Apr 15

Name of organisation		Central Govt Depts	CPSUs	Banks	CPMFs	Total
Total number of organisations/departments		121	252	27	10	-
Returns received from organisation		22	81	29	5	-
Overall strength	Gp B	-	-	-	13379
	Gp C	313	284957	161951	638029
	Gp D	3	29879	72143	-
ESM authorised	Gp B	-	-	-	1338
	Gp C	31	41319	23483	19081
	Gp D	3	7320	17675	-
ESM held	Gp B	-	-	-	309
	Gp C	11	3363	8450	1658
	Gp D	0	559	11256	-
ESM Deficiency	Gp B	-	-	-	1029
	Gp C	20	37956	15033	17423
	Gp D	1	6761	6419		-
Total No. of vacancies in 2014	Gp B	-	-	-	1456
	Gp C	146	3190	25250	9188
	Gp D	-	804	8653	-
ESM Authorised vacancy	Gp B	-	-	-	146
	Gp C	15	461	3661	919
	Gp D	0	197	2120	-
ESM vacancy reserved	Gp B	-	-	-	135
	Gp C	3	423	3219	859
	Gp D	0	4	1904	-
ESM actually filled	Gp B	-	-	-	1
	Gp C	0	48	1330	0
	Gp D	0	5	938	-
Shortfall	Gp B	-	-	-	146	146
	Gp C	15	415	2331	918	3678
	Gp D	-	192	1182	-	1374

Appendix B

Existing Reservation in State Governments

S No.	State/UT	Reservation in State Govt Jobs (%)
		Gp A	Gp B	Gp C	Gp D
1	Andhra Pradesh	0	0	2	2
2	Arunachal Pradesh	0	0	10	20
3	Assam	0	0	2	2
4	Bihar	0	0	0	0
5	Chhatisgarh	0	0	10	20
6	Delhi	0	0	10	20
7	Goa	0	0	2	2
8	Gujarat	1	1	10	20
9	Haryana	5	5	14	14
10	Himachal Pradesh	15	15	15	15
11	Jammu and Kashimir	0	0	6	6
12	Jharkhand	0	0	0	0
13	Karnataka	10	10	10	10
14	Kerala	0	0	0	0
15	Madhya Pradesh	0	0	10	20
16	Maharashtra	0	0	15	15
17	Manipur	0	2	3	5
18	Meghalaya	0	0	0	0
19	Mizoram	0	0	10	20
20	Nagaland	0	0	5	5
21	Orissa	0	3	3	3
22	Punjab	13	13	13	13
23	Rajasthan	0	0	12.5	13
24	Sikkim	0	0	2	2
25	Tamil Nadu	0	0	5	10
26	Tripura	0	0	2	2
27	Uttarakhand	8	8	5	5
28	Uttar Pradesh	0	0	5	5
29	West Bengal	0	0	5	10
30	Andaman & Nicobar	0	0	0	0
31	Chandigarh	13	13	13	13
32	Puducherry	0	0	10	20

Appendix C

Zila Sainik Welfare Office-wise Registration of ESM for Employment

& Placement of Ex-Servicemen as on 31 Dec 2014

S No	State/UT	No ESM Registration			Placement of ESM
		Previous	New	Total	State Govt	State Govt PSU	Total
1	Andhra Pradesh	13250	375	13625	0	37	56
2	Arunachal Pradesh	94	2	96	19	0	19
3	Assam	32954	875	33829	344	133	522
4	Bihar	33608	1072	34680	0	0	0
5	Chhatisgarh	879	79	958	14	2	16
6	Delhi	13390	2310	15700	530	135	1101
7	Goa	844	14	858	3	1	4
8	Gujarat	3871	446	4317	22	0	22
9	Haryana	24000	901	24901	443	40	541
10	Himachal Pradesh	14151	673	14824	149	0	149
11	Jammu and Kashimir	12943	498	13441	9	2	11
12	Jharkhand	8114	93	8207	0	0	0
13	Karnataka	18655	690	19345	50	0	52
14	Kerala	16436	822	17258	17	36	53
15	Madhya Pradesh	4788	574	5362	31	0	32
16	Maharashtra	20220	1659	21879	932	25	963
17	Manipur	488	124	612	191	9	217
18	Meghalaya	207	23	230	8	0	8
19	Mizoram	1086	39	1125	14	0	14
20	Nagaland	118	40	158	80	0	110
21	Orissa	18231	553	18784	35	50	103
22	Punjab	41825	1623	43448	32	15	111
23	Rajasthan	38308	1453	39761	46	246	292
24	Sikkim	2	9	11	0	0	0
25	Tamil Nadu	11749	1045	12794	75	0	75
26	Tripura	600	22	622	0	0	1
27	Uttarakhand	13383	1433	14816	4	1	8
28	Uttar Pradesh	26728	641	27369	22	76	111
29	West Bengal	50249	1119	51548	287	236	548
30	Andaman & Nicobar	3	5	8	0	0	0
31	Chandigarh	68	24	92	0	25	25
32	Puducherry	330	7	337	0	0	0
33	Telangana	4682	145	4827	40	0	105
RSB Total		426434	19388	445822	3397	1069	4466