Cabinet to take up PSU execs new pay package in August

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New Delhi, Jul 22 : Despite objections raised against the recommendations, the Cabinet is expected to take up the second pay revision committee’s report some time in August and the department of public enterprises (DPE) is hopeful that the report would be cleared by December, the deadline set by the heavy industries ministry. The report, released in May, has recommended a significant hike in the pay package for executives in public sector undertakings (PSUs).

“A lot of objections have been raised by the stakeholders. Many PSU executives have objected to the fact that different pay packages have been recommended for the same grade of executives working in PSUs involved in the production of the same type of products,” secretary department of public enterprises (DPE) R Bandopadhyay told FE.

“This has happened particularly because the committee has classified the PSUIs in to five categories —A+, A, B, C and D, based on the total income, the size of manpower and the geographical spread of their operations for the purpose of deciding the ‘fixed’ component of the package,” Bandopadhyay explained. Furthermore, the report has also suggested either a merger or discontinuation of certain benefits, which were available to the executives earlier, which the executives and directors are opposed to.

Bandopadhyay, however, expressed confidence that the department would be able to iron out all the differences and meet most of the demands. He said that the report along with the Cabinet note has already been sent to all the ministries and departments and hopes the proposal would be placed before the Cabinet some time by the end of August, or the first week of September.

The secretary said that even if the report is sent to a group of ministers (GoM) for further consideration, it should have enough time till December to take a view and clear it, much within the deadline announced by the heavy industries ministry while releasing the report in May.

The second pay revision committee set up under Justice M Jagannadha Rao (retired Judge, Supreme Court), had recommended a considerable hike in the pay package giving more weight-age to performance related payment ranging from 40-200% and introducing ESOPS. The move is expected to benefit around 2.5 lakh executives working with the 247 PSUs. The new pay scale would be effective from January 1, 2007.