New Delhi, February 5
Taking some major decisions the Union Cabinet today approved the Voluntary Retirement Scheme (VRS) for its surplus employees besides decontrolling of sugar and removal of licence for dealers and restriction on storage and movement of wheat, paddy, rice, coarse grains, sugar, edible oilseeds and edible oils.While clearing the VRS scheme for the surplus employees, the government also handed out a threat of retrenchment for those not opting for it at the end of redeployment and re-training period. The employees who are not redeployed within one year of they being declared surplus may be retrenched.
Under the proposal, approved by the Cabinet, permanent government employees rendered surplus will be eligible for the VRS and will be offered an ex gratia amount equivalent to emoluments, i.e basic pay and dearness allowance of 35 days for each completed year of service and 25 days for each year of the balance of service left until superannuation, an official spokesperson said after the meeting of the Union Cabinet.
This is, however, subject to the condition that the total number of years counted for the payment of the ex gratia will not exceed 33 years excluding any weightage that may be allowed for the purpose of pension or computation of pension and gratuity.
The ex gratia may be subject to a minimum of Rs 25,000 or 250 days emoluments, whichever is higher. However, this ex gratia should not exceed the sum of emoluments that the employee
would draw at the prevailing level for a period of service left before superannuation.
According to the decision, the surplus employees who are retrenched from service at the end of the redeployment and re-training period will be given retrenchment benefits as per the norms laid down in the rules.
The government also cleared the full decontrol of sugar during the coming financial year beginning April 1, 2002, and removal of 12 items from the purview of the Essential Commodities Act (ECA).
The official spokesperson said the sugar decontrol would be effected after futures trading in the commodity becomes operational.
Of the 29 items at present governed by the ECA, 12 will be removed from its purview and a notification to this effect will be issued shortly.
The 12 items include cement, textile machinery, textiles made from silk, yarn made from wool, cable and wares and general lighting appliances.
According to a decision, the removal of requirement of licensing of dealers as also restrictions on storage and movement of wheat, paddy and rice, coarse grains, sugar, edible oilseeds and edible oil would be issued under Section 3 of the ECA, 1955.
In view of the relatively more comfortable food situation, it was felt that restrictions like licensing of dealers, limits on stock and control on movement are no longer needed, the spokesperson said.
The government felt restrictions only hampered the growth of the agricultural sector and promotion of food processing industries in rapidly changing economic scenario and liberalisation.
Facilitating free trade and movement of foodgrains would enable farmers to get best prices for their produce, achieve price stability and ensure availability of foodgrains in deficit areas, the spokesperson said.
Removal of hurdles would also be in the interest of the consumers all over the country, specially for those in the lower income group, she said.
The ECA 1955 provides for the control of the production, supply and distribution of essential commodities.
Powers to issue control orders under the Act have been delegated by the Centre to the state governments. The state governments have issued several control orders to regulate various aspects of trading such as licensing of dealers, storage, movement, levy, guest control, display of stocks and prices.
