Cabinet says secretary panel to review Pay Commission report

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New Delhi, Apr 11: The Union Cabinet on Friday decided to set up a committee of secretaries to review the report of the Sixth Pay Commission. The Cabinet discussed the pay panel report, which recommended an average 40% hike in pay packets, and decided to set up a committee of secretaries.

Considered as 'inadequate' by employees associations, the Panel had suggested a pay packet of Rs 90,000 for the top bureaucrat and Rs 80,000 for secretaries in the recommendations that cost the exchequer over Rs 12,000 crore. The Empowered Committee of Secretaries will be headed by cabinet secretary K M Chandrasekhar, science and technology minister Kapil Sibal told reporters after the Cabinet meeting.

In another decision, the Cabinet on Friday decided, that in an effort to resolve a six decade-old legal wrangle over the Hyderabad Nizam's funds lying in a London account, to go in for an out-of-court settlement with Pakistan and the heirs of the Nizam. The decision on one of the long-standing items on the India-Pakistan agenda was taken at a meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh.

He said the Cabinet also approved the strategy for negotiations, which would be conducted over a period of 18 months. The monies amounted to around £1 million in 1948 and are now worth around £30 million, Sibal said.

In another approval, the government okayed two air services agreements with Mexico and Chile that will allow airlines from India to fly to various destinations in these countries and vice versa. These carriers would also be allowed to enter into cooperative marketing arrangements like code-sharing and any other commercial arrangement to operate and market the airlines in the two nations besides any third one.

In an effort to provide quality education to children of defence personnel, the Cabinet approved transfer of some defence land to Kendriya Vidyalaya Sangathan (KVS) for construction of Central Schools for military personnel.

In another decision, the Cabinet approved an MoU signed between India and Madagascar on agricultural co-operation, animal husbandry and fertiliser production besides exchanging scientific delegations and experts.

In another decision the Cabinet gave its nod to signing of an agreement with the Brazilian government in agriculture and allied sectors, science and technology minister, Kapil Sibal said.