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Bharat Heavy Electricals Limited

From : Dy. General Manager (HR), BHEL, Corporate Office, New Delhi

To : All Heads of HR
BHEL, Bhopal / Jhansi / HEEP, Hardwar / CFFP, Hardwar / Tiruchy / BAP,
Ranipet/ Hyderabad / R&D, Hyderabad / EDN, Bengaluru / CBU & EPD,
Bengaluru / ISG, Bengaluru / Varanasi / Jagdishpur / Rudrapur / Goindwal /
Industry Sector & 10, TBG, ROD (HQ), New Delhi / Power Sector (HQ), New
Delhi / Corporate Office / HRDI, Noida / EMRP, Mumbai / ASSCP, Gurgaon

Ref. No.: AA/HR/IR/510 Date: July 15, 2010

Corporate Human Resource Circular No. 027 / IRX/2010

Sub: Entitlement of Residential Telephones and Mobile Phones to Executives.

1. The policy of providing Residential telephones and Mobile phones and guidelines
for reimbursement of cost of Mobile handsets including ceiling limits on monthly
expenditure in respect of executives has been prescribed vide Corporate HR Circular No.
013/IRX/2007 dated 03/04/2007 and IOMs dated 215t/22nd and 23rd August, 2003
respectively. This policy has since been reviewed.

2. In partial modification of the above policy, the following has been decided:-

2.1 To extend residential telephone facility to Executives in El to E5 grades on

entitlement basis.

2.2 To extend mobile phone facility to the Executives in El grade on entitlement

basis.

2.3 To revise the monthly ceiling limits of the usage of residential telephone and
mobile phone facility,

2.4 To revise the ceilings for reimbursement of cost of Mobile Handsets as also the
periodicity of reimbursement from 3 years to 2 years.

3. CEILING LIMITS FOR RESIDENTIAL TELEPHONE , MOBILE PHONE USAGE AND

REIMBURSEMENT OF COST OF MOBILE HANDSET

3.1 The monthly ceiling limit for reimbursement of expenditure for usage of
Residential telephone , Mobile phone and cost of mobile handset in respect of
Executives in El & above grades will be as under:

: 1r^ M 1 T, t1 9 1-110049, W^-ff, tff : 26001010-12, i : 011-26493021

Regd . Office . BHEL House Siri Fort , New Delhi-110049 , INDIA, Phone : 26001010 - 12, Fax : 011-26493021
 Monthly Ceilings of Revised Ceilings for
Monthly Ceilings
GRADE Residential reimbursement of
of Mobile Phone
Telephone Usage Mobile Handset once in
Usage (incl. rent )
(incl. rent ) two years ( incl. Taxes)
El 350 + Taxes 350 + Taxes 4000
E2 500 + Taxes 500 + Taxes 5000
E3 600 + Taxes 600 + Taxes 5000
E4 700 + Taxes 700 + Taxes 7500
E5 1100 + Taxes 800 + Taxes 7500
E6 1400 + Taxes 1100 + Taxes 10000
E6A 1600 + Taxes 1400 + Taxes 10000
E7 1800 + Taxes 1700 + Taxes 12000
As Per Official
E8 4900 + Taxes 20000
Requirement.

4. Such of those executives who have already been allowed higher ceilings earlier
than what has now been prescribed as above will have to fall in line with the revised
ceilings.

5. If an executive has used the instrument for a period of more than One year and
superannuates, he would not be required to return the instrument to the company. In
the case of those becoming instantly eligible for reimbursement of the cost of handset
by virtue of the aforesaid reduction in the periodicity of reimbursement, such
reimbursement shall be allowed only in cases where the date of purchase of mobile
handset is not earlier than the date of issue of this circular, subject to remaining service
of more than One year from the date of eligibility. However, in case of those due for
superannuation within One year from the date of becoming eligible in future for
reimbursement of the cost of mobile handset, such reimbursement will not be allowed.

6. In case of an executive, who resigns within one year from the date of claiming
reimbursement of the cost of the mobile handset, full amount reimbursed shall be
recovered. If an executive resigns after one year, but before completion of two years,
then 50% of the amount reimbursed shall be recovered.

7. The responsibility for the maintenance of the instrument during this period will
be rest solely with the concerned executive . In case the Mobile instrument is
lost/stolen /damaged , the Company will not provide/replace a fresh mobile instrument
before completion of the stipulated period of two years.

8. Mere change in entitlement due to promotion etc., before completion of the

stipulated two years period would not entitle an executive to be eligible for claiming
reimbursement of the cost of handset.

2
9. In respect of executives, who have already been provided with a Mobile handset
by the company as per the extant policy, a communication about the date of purchase
would be sent to the concerned executive. Such executives would be eligible for
purchase of new mobile handset only after two years from the date of their earlier
purchase.

10. The ceiling limits on monthly expenditure for residential phone and mobile
phone (wherever applicable) shall be clubbed. The total expenditure incurred on call
charges including STD/ISD/Broadband service or any other value added services on
either of the telephones shall be reimbursed/allowed, restricted to the applicable
combined ceiling limits (residential + mobile) of the concerned executive. However,
installation charges of broadband and cost of modem for internet connection shall not
be reimbursable. The clubbing of monthly expenditure will be allowed within the
relevant financial year.

11. The residential telephone need not be a fixed landline only . Mobile/WLL-
M/FWP/any other type will fall within the definition of "Residential Telephones".
However, for the purpose of reimbursement both the residential telephone and mobile
phone connection should be mandatorily registered in the name of the executive.

12. Reimbursement shall be made ONLY for post paid connections provided by
service provider and registered as detailed in 11 above supported by proof of payment
of bill. Further, the reimbursement of the cost of mobile handset, duly purchased in the
name of the executive ONLY, shall be made on production of bill. Reimbursement shall
be strictly restricted to two connections only (One each for residential telephone and
mobile phone).

13. The concerned Department dealing with Telephones shall maintain the records
of date of purchase of mobile instruments.

14. All the Units/Divisions are required to uniformly adopt these ceilings as a
Company Policy.

15. The provisions of this circular will be applicable w.e.f. the month of
August, 2010.

16. This issues with the approval of the competent authority.

Note: Hindi version of the circular will follow.