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COCHIN SHIPYARDLIMITED
(A Government of India Category-1 Miniratna Company, Ministry of Shipping)
Shri Subramaniam M K
Meleth House
Santhi Nagar, Opp Cherupushpam Studio
Udayamperoor PO
Emakularn 682 307
Please refer to your RTI application dated 06 March 2018 on the above subject and
received by us on 07 March 2018. The information sought by the applicant is given ad seriatum:
(i) Copy of the order of the administrative ministry for implementation of pay
revision of Board level and below Board level executive and non- unionized
supervisor as per OM No: W -02-0028/2017-DPR (W) -GL-XV /17 dated 04
Aug 2017, of OPE in CSL. Kindly provide the following information with
regard CSL.
(ii) Copy of minutes Board Meeting held on 05 Feb 2018, relating to pay revision
of Board level and below Board level executives and non unionised
supervisors as per O.M No: W-02-0028/207-DPE (WC)-GL-XN /17 dated 04
Aug 2017.
Ans.: Extracts of the minutes of the Board Meetings regarding Pay revision
and perks and allowance of Board level and below Board level executives
and non unionised supervisors are enclosed. (Encl- II)
(iii) What is the maximum percentage of perks and allowances which will be
disbursed to officers and supervisors from 01.01.2007.
Ans: P&A Dept Circular No: PRL/2(10)/ 07 Vol III dated 02 April 2018 is
enclosed. (Encl - III)
Ans: Please refer Clause 4.3 and 4.7 of P&A Dept Circular No: PRL/2(10)/
07 Vol III dated 02 April 2018 .
Thanking you,
No: SY-11017/1/2009-CSL
Government of India
Ministry of Shipping
CSL Section
Transport Shawano Parliament Street
New Delhi dated the 31 January 2018
To
The Chairman & Managing Director
Cochin Shipyard Ltd
Perumanoor PO
Kochi
Revision of Pay Scales of Board and below Board level Executives and non-
Subject:
unionized supervisors w.e.f 1.1.2017.
Sir,
The last revision of the scale of pay of Board level and below Board level Executives
and Non-Unionised Supervisors was made effective from 01/01/2007. Government has
now decided that pay revision and other benefits of these executives w.e.f 01-01-2017 may
be implemented through Presidential Directives.
2. In exercise of the powers conferred by Article 31 of the Articles of Association of the
Cochin Shipyard Ltd, the President is pleased to direct the Cochin Shipyard Ltd to
implement the revised pay scales, Fitment Benefit, Increment. Dearness Allowance and
allowances under 'Cafeteria approach' in respect of Soard and below Board level
Executives and non-unionised Supervisors with effect from 01/01/2017 strictly In
accordance with the parameters and conditions laid down by the Department of Public
Enterprises in their O.M. No. W-02/0028/2017-DPE (WC)-GL-XIIII17 dated 3rd August 2017
(copy enclosed).
3. The payment of House Rent Allowance and allowances other than those under
'Cafeteria approach' based on the revised pay scales. in accordance with Department of
Public Enterprises O.M. No. W-02/0028/2017-DPE (WC)-GL-XIV/17 dated 4th August 2017
(copy enclosed), will be effective from the date of issue of this Directive.
4. Before payment of Variable Pay/Performance Related Pay the matter should be
referred to the Ministry of Shipping, which will make a critical examination.
5. This issues with the concurrence of Financial Adviser of this Ministry.
YO({S faithfully.
\\ .: ~(,.~
(Rajasekh ran. )
Under Secretaryto the GoVernme~f In 'a
Tel: 23722253
Copy to:
, \ .u The Department of Public Enterprises (joint Secretary Shri Rajesh Kumar
f':.: i V';~.. .;;;1'<:..1 Chaudhry), Government of India, Public Enterprises Bhawan. Block No. 14. C. G. O.
',I Complex. Lodhi Road, New Delhi
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We are enclosing herewith the extracts of the minutes of 239'" Board Meeting held on 05th
February 2018 for your information and necessary action,
IIQuotel/
Agenda Item No. 27: Grant of Perks and Allowances to Executives and Non Unionised
Supervisors
60, CGM (HR) briefed the Board fully regarding OPE guidelines on Perks and Allowances
to Executives and Non Unionised Supervisors. Regarding Reimbursement of Incidental
Expenses (RIE), it was explained that as per the eXisting scheme, CSL had earmarked 10%
of Perks and Allowances towards RIE which can be availed only if designated number of
extra hours was worked by respective officers and supervisors. The above RIE was a
compulsory element which could not be availed without wor1dng the designated extra hours
and was availed based on a hourly rate. In this respect, no other PSUs have implemented a
similar scheme of setting aside Perks and allowances for compulsory extra hours of work.
Also, the hourly rate fixed for the officers and supervisors (being restricted to 10% of salary)
was lower than that fixed for workmen for overtime, which created an anomaly. Considering
all these factors, the RIE was considered not appropriate in the present scheme of things
and it was not included as a part of perks and allowances in the new proposal. The RIE
would be subsequently decided and brought out as an administrative order which would then
be reported to the Board.
61. Further, it was informed that in the 2007 orders, all facilities like hospitals, colleges.
schools, clubs was to be monetized and included within the basket of 50% of basic pay.
Since CSL did not have any hospital nor school, only 1% of BP was monetized. Regarding
medical, officers and supervisors are covered under a scheme (in lieu of hospital) for which
an insurance policy was taken by the company, and for which the recurring cost (premium)
was collected from the executives and non-unionized supervisors. In the 2017 orders, the
recurring cost incurred on running and maintaining of hospitals, colleges, schools etc would
be outside the basket of 35% of basic pay and as a logical consequence the recurring cost
to maintain the medical scheme for officers and supervisors will now be borne by the
company. In line with this, the entire basket of 35% is now available to be disbursed under
the Cafeteria approach. Leading PSEs like ONGC, GAIL, BPCL, MDL, BEL, GSL etc have
also implemented perks and allowances in this manner and have issued orders,
62. The Board was further informed that the following are the list of per1<:sand allowances
to officers and supervisors who can chose from this basket of allowances upto a maximum
of 35% of their basic pay.
Resolution No.239/27
RESOLVED THAT the proposal for payment of Perks and Allowances to all
Executivesand Non UnionisedSupervisorsas per Annexure-I to the agenda placed
beforethe meeting with effect from 0111 January2017 be and is hereby approved.
IIUnquotell
~Ia
Company Secretary
CGM(HR),OGM i/c (Finance), AGM (Finance)
"RESOLVED THAT approval of the Board be and is hereby accorded to revision of pay for
Board, Below Board Level Executives and Non-Unionised Supervisors as per para 8 (a) to (I)
of the agenda."
VKALA
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COMPANY SECRETARY
- . ---------------------------
1. The following resolution which was earlier adopted by Circulation were taken on record:-
"RESOL VED THAT approval of the Board be and is hereby accorded to revision of pay
for Board, Below Board Level Executives and Non-Unionised Supervisors as per para 8
(a) to (I) of the agenda."
COMPANY SECRETARY
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The Department of Public Enterprises vide its OMs No.
W-02/002P.J/20 17-DPE(WC)-(~L-XIII /17 dated 03.08.2017, 04.08.20 I 7
and 07.09.2017, has issued guidelines on Pav Revision of Board and
Below Board level Executives and NOll-Unionized Supervisors effective
from 01 .Jan 2017. Inter-alia the guidelines cover payment of Perks and
Allowances under the concept of 'Cafeteria approach', within a ceiling of
35°/" of revised Basic Pav.
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The Perks and Allowances presently applicable to Executives
and Non- unionized Supervisors on the rolls of the company'
will be replaced by the following scheme of Perks and
Allowances effective from 0 I Jan 2017 under a Cafeteria
Approach.
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Guidelines on each of the allowances are indicated at Annexure-I to this
order.
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' CAT~GORY - (~o OF
BASIC PAY PER
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MONTH
iSfi.R:
I No.
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Description
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II Board I' Below Hoard I Supervisors
b ! ransport Allowance
t--------- _._.__,. .---+----... ..',._
Upto 5(Yt, !
--~ --_.
Upto 5""
-~51·
,Personal Home Loan Interest Subsidy , Upw 10%, Upto lO"'n UpLO 1W"
8 jcum Maintenance Allowanc(' ;
g ll;i~rnet All~~a~c~.~ - -- __ i Upt()_~'Yo Ue!~5'1"
10._.
.. I~L.'rs()nal S~~t F.urnishing All(),~~ncc Upto 51~:o
__. Upto 5%, . 1 Upw 5"0
1 l1r('lephone Reimburst~ment . Upto S% Upto ::;";,
! Upto .')""
1'2-luniform
13Family
Maintenance Allo:v(~~~e
pl~~~i'ng Allow~~ce .__ ..... -'-r~~()3:'1""['- Uplo ;)~;,
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The percentage of Basic Pay earmarked for each of the
allowances will be the maximum payable for the respective
item. Executives and Supervisors can choose from the set of
Perks and Allowances, limited to 35% of the Basic Pay.
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Modification "-if any to the revised Perks and Allowances Scheme
as above, quantum of payment etc 'will only be made applicable
with the approval of the Nomination and Remuneration
Comm ittee / Board.
5. ~ ~ "QCf ~ ~tCfi q; 3f6jS"i~C;Ci1 ~ JIrtT ~ ~ t ,
This issues with the approval of CMD. "fL_/-c:-,,_ (. /
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(~ a- ~ I K J Ramesh)
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CGM (HR)
~R ITo
; Category / Amount:'--"-- .
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Board Level - Executives '-i" ~_.()r.._Jl~~!c~~y (!'tf~J. I
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I Upto 20 % of Annual
--------
other Executives &
-_ - tI _ Ba sic' Pay
._p~!:yi~or~_ __ ._
I Upto 10 <Yi, of Annual
-_L _, .. ' ..
Basic
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Pay --.....
....
2.2. The LTA AlJowance will be paid on monthly basis to all those
who are on the rolls of the Shipyard along with the salary.
2.3. There would be no income Tax exemption as per rules for LTA
drawn. However in the case of those who submit. necessary
vouchers of travel performed etc, on request the same shall be
considered as Leave Travel Concession, for Income Tax
Exemption as applicable subject to rules.
6. Transport Allowal!£~
10. I. An amount upto 5 oil) of basic pay per month will be paid to all
Executives and Supervisors for purchase, repair or
replacement of Household furniture and other durables and
appliances.
12.1. An amount up to 5(X)of Basic Pay per month will be paid to all
Executives and Supervisors as washing/stitching ane!
maintenance of uniforms/working dress provided for.
**********'****