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This is an archive article published on September 30, 2005

Centre wields carrot to put DoT men in telecom PSUs

As part of the many significant decisions taken on Thursday, the Union Cabinet approved a new package for Group ’A’ officers of th...

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As part of the many significant decisions taken on Thursday, the Union Cabinet approved a new package for Group ’A’ officers of the Department of Telecom (DoT) for absorption into BSNL and MTNL. This includes a 25 per cent rise in emoluments retrospectively, to the 3,000 Group ’A’ officers and an extension of the date of absorption by two weeks to October 15.

The Cabinet has addressed one key concern of the officers regarding their absorption into the telecom PSUs. Officers will now have the choice to receive pension from the company they are absorbed into or on a pro-rata basis from the government. Finance Minister P. Chidambaram said, “The officers’ apprehensions have been removed. We now expect all officers to be absorbed in MTNL and BSNL.”

However, in the event a sufficient number of Group A officers do not choose to be part of BSNL and MTNL, the government has a contingency plan. The plan includes availing other Group B officers’ expertise to look after operations, seeking the services (on contract) of retired officers, taking help from vendors to manage the exchanges, availing the services of officers from postal service, Railways etc and if need be, even take the assistance of the Armed Forces for maintaining telecom services.

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The Cabinet also approved a new law for regulation of warehouses and introducing negotiable warehouse receipts. The rationalized Short Service Commission Scheme has been extended from 10 years to 14 years, in order to help the Indian Air Force meet the shortfall of manpower.

The cabinet also approved the revised cost estimate of the TALA Hydro-electric project in Bhutan. The cost has now increased to Rs 4,124 crore. The 1020 MW project is expected to be complete by June 2006 and it would enhance the Indo-Bhutan relationship, Chidambaram said. Accession to protocol on privileges and immunities of the international seabed authority, 1998 and accession to the agreement on the privileges and immunities of the international tribunal for the law of the sea, 1997, were also approved. This approval is part of the obligation India has to fulfill as it’s a signatory to the law of the sea convention.

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