Sunday, October 30, 2011

Detailed Project Report For Postal Bank to be Finalized in Next Six Months

Shri Kapil Sibal Addresses Economic Editors’ Conference 2011
ICTE Enabled Inclusive Growth to Script India’s Future
Mobile Phone to be Repositioned as A Tool of Empowerment
Research and Innovation to be Encouraged for A Range of Products and Services
India to Transform into Global Hub for Electronics Manufacturing
Detailed Project Report For Postal Bank to be Finalized in Next Six Months
Shri Kapil Sibal, the Minister of Communications and Information Technology informed the Economic Editor’s Conference here today that mobile phones would be repositioned as an instrument of empowerment. This would combine communication with proof of identity, fully secure financial and other transaction capability and multi-lingual services. The Minister also said that demands for ICTE products and services would be leveraged to foster innovation and encourage R&D through academic institutions and industry. He also emphasized that it is envisioned to transform India into a global hub for electronics system design and manufacturing (ESDM).
Following is the text of opening remarks of the Minister:
“Information Technology (IT) and Telecom best epitomises what 21st century India is capable of achieving. In these sectors our history is spectacular and the future holds path breaking possibilities. Information and Communications Technology and Electronics (ICTE) has the potential to script India’s future across the economy, society and government.
“ICTE has been contributing to the economic growth of the country by increasing efficiency, competitiveness and technological edge across sectors. ICTE is also the enabling force for inclusive growth and development by increasing economic opportunities across nations, regions and groups.
“The developments in the ICTE sector and allied sectors pose both challenges and opportunities.
“Mobile phone has become more than a communication device. Today more than 850 million mobile subscribers are capable of using their phone for online banking, utility bill payments, pension payments, ticket booking etc. The possibilities here are enormous. It can be developed as a powerful tool of empowerment in near future.
“Services are becoming increasingly linked through mobile, internet and other digital modes of delivery. With Aadhar and NeGP applications, mobile will be used for e-authentication and availing a large number of government services without visiting government offices. This will not only improve the efficiency and effectiveness of public service delivery but will also help to reduce corruption in public life.
“In the IT industry, the advent of cloud technology has thrown up another wider range of possibilities for India. The Indian IT industry can come up with new products and services with cloud technologies, incorporating their own IPs and patents. The stage is set for a quantum jump now.
“Key social ministries like education, health and rural development have ambitious digitization, content creation and e-service delivery programs.
“India is ready for a leapfrog. It is the time to connect the dots and to give a proper direction to the ICTE sector. It is also time to look at some missing pieces. One missing link is Electronics Manufacturing. By 2020, the demand, supply gap in this sector will be $300 billion. Underdeveloped Electronics Manufacturing sector may upset our plans of technology led India in the 21st century.
“Only a holistic view can help is overcome enormous challenges and help emulate the successes of IT and Telecom in electronics. It is in this context that a combination of three interdependent and synergistic policies for Telecom, IT and Electronics Manufacturing have been formulated and released.
The three policies together drives the National agenda for ICTE. The principal policy objectives are
· Optimally leverage our existing and developing ICT infrastructure and capabilities to meet our growing need for high quality social sector services like health, education, rural development, skill development, welfare programs, e-gov services, economic services like banking and insurance.
· To use the ICTE capabilities to enhance competitiveness and efficiency in manufacturing across the board and in key infrastructure sectors like power
· Leveraging the mushrooming demand for ICTE products and services to foster innovation, encourage R&D through academic institutions and industry and to create a range of products and services that not only meet domestic demand but also addresses global demand.
· To reposition the mobile phone from a mere communication devise to an instrument of empowerment that combines communication with proof of identity, fully secure financial and other transaction capability, multi-lingual services etc.
“The primary objective of NTP 2011 is maximizing public good by making available affordable, reliable and secure telecommunication and broadband services across the entire country. The main thrust of the policy is on the multiplier effect and transformational impact of such services in furthering the national development agenda while enhancing the equity and inclusiveness.
“The key objectives of NTP 2011 is to achieve Full Mobile Number Portability, One Nation-Free Roaming, 100% rural tele-density by 2020, 600 million broadband connections by 2020, on demand broadband of at-least 100 MBPS, One license across services and service areas, Right to Broadband and to reposition mobile phone as an instrument of Empowerment
“ The National Policy on IT 2011 aims to strengthen and enhance India’s position as the global IT hub and to use IT as an engine for rapid, inclusive and sustainable growth in the national economy. This policy aims to make India a knowledge and service society with a secured cyber space.
“The key objectives of National Policy on Information Technology is to achieve by the year 2020, revenue from IT industry of $300 million, to create a pool of 10 million additional skilled manpower, mandatory and affordable e-government services to common man, regulatory framework for secured cyber space.
“The National Policy on Electronics Manufacturing aims to transform India into a global hub for electronics system design and manufacturing(ESDM) so as to meet the country’s needs and serve the international market by promote indigenous manufacturing in the entire value chain of ESDM and promoting a vibrant and sustainable eco-system for R&D, design and engineering and innovation in Electronics
“The key objectives of National Policy on Electronics Manufacturing is to achieve by 2020, turnover of $400 billion, employment of 28 million, turnover of $ 55 billion in chip design and embedded software industry, setting up of 200 electronics manufacturing hub and 2500 PhDs per annum.
“The three policies together aims to ensure that ICTE permeates to all aspects of society, business, governance finance and other aspects of modern life. These policies are oriented towards use of ICTs in ways that consciously promote decentralization and empower the common man.
“One organization and sector which is rarely talked in public but which is equally important for empowering the common man is Postal Department. With its network of 1.55 lakh post offices and wide range of financial, mailing and insurance, post offices in India have the enormous potential to join and ride on the ICTE agenda. To enable post offices to serve the 21st century Indians, reform agenda is underway
“One, Indian Post Office Bill 2011. To reform and open the Indian Postal Market, which will ultimately result in a vibrant industry and satisfied customers. The bills aims to open the Indian postal market with 50 gm privilege to India Post for a maximum of 15 years, registration of couriers by an independent registration authority and USO of postal sector to be borne wholly by the government. Discussions with stakeholders ( couriers, industry bodies and government agencies) is underway and bill will shortly introduced in the Parliament for approval.
“Two, IT Modernization Project. It has been approved by the Cabinet and essentially involves
· Computerization and networking of 1.55 lakh post offices.
· Core banking solution for Anytime Anywhere Banking through Post Offices with ATM facility
· Delivery of banking, insurance and mailing services in rural areas through hand held device.
· Postal Network to deliver a host of retail ( banking, financial and e-com services) with technology enabled solutions
· Post Offices to become hub of social security payment through digital network
“Three, setting up of Postal Bank of India – Detailed Project Report will be finalized in next six months. This will enable India Post to extend micro credit and other loans through vast network of 1.55 lakh post offices. Coupled with other financial services like micro remittance, micro insurance and micro pensions, postal bank of India will help to achieve the goal of financial inclusion in India
“Four, Commercialization of Postal Network in India, to ensure that a large number of financial, insurance and physical goods and services are delivered to the common man though India Post.
“National Telecom Policy 2011
“Vision – To provide to the people of India, secure, reliable, affordable and high quality converged telecommunication services, anytime, anywhere.
· To develop a robust, secure state of the art telecommunication network providing seamless coverage with special focus on rural and remote areas and bridging digital divide.
· To create knowledge based society through proliferation of broadband services in every part of the country
· Make India a global hub for Telecom equipment manufacturing and provisioning of converged communication services.
· To promote R&D and Product Innovation in cutting edge ICTE technologies
· To promote development of new standards and generation of IPRs.
· Increase rural tele-density from the current level of around 35 to 60 by the year 2017 and 100 by 2010
· Provide affordable and reliable broadband on demand by the year 2015 and to achieve 175 million broadband connections by 2017 and 600 million by the year 2020 at minimum download speed of 2 MBPS and making available higher speed of at-least 100 MBPS on demand.
· Provide high speed and high quality broadband access to all village panchayats through optical fiber by 2014
· To meet 80% Indian telecom sector demand through domestic manufacturing with a value addition of 65% by 2020
· Strive to create one nation –one license across services and service areas.
· Achieve One nation – Full Mobile Number Portability and to work towards One Nation – Free Roaming
· To reposition the Mobile Phone from a mere communication device to an instrument of empowerment.
· To recognize telecom and broadband connectivity as a basic necessity like education and health and work towards ‘Right to Broadband’
· Delink the licensing of networks from the delivery of services to the end users to facilitate faster roll out of services.
· To delink spectrum in respect of all future licenses.
· To frame appropriate Exit Policy for the licensees.
“National Policy on Information Technology 2011
To strengthen and enhance India’s position as the global IT hub and to use IT as an engine for rapid, inclusive and sustainable growth in the national economy
1. To consolidate India’s position as the global IT and ITeS hub and leverage IT to contribute significantly to GDP and employment.
2. To create and promote a sustainable ecosystem for R&D and Innovation
3. To leverage ICT to increase the competitiveness and Productivity of key strategic sectors.
4. To enhance the use of ICT in public services to enhance efficiency, transparency, accountability and reliability.
5. To ensure secure Cyber Space for sustainable growth of ICT.
6. To transform India into a Knowledge and Service society
1. To increase revenues of IT and ITeS industry from USD 88 billion at present to $ 300 billion by 2020
2. To increase exports from the IT industry from $ 55 billion at present to $ 200 billion by 2020
3. To create a pool of 10 million additional skilled manpower in ICT
4. To ensure mandatory and affordable access to delivery of public services to the common man
5. To leverage the usage of ICT in key social sectors like education, health, rural development and financial services to ensure inclusive growth
6. To establish a regulatory and security framework for Secure Cyberspace.
“National Policy on Electronics Manufacturing 2011
To transform India into a global hub for electronics system design and manufacturing (ESDM) so as to meet the country’s needs and serve theinternational market.
a. To promote indigenous manufacturing in the entire value chain of ESDM for economic development
b. To promote a vibrant and sustainable eco-system for R&D, design and engineering and innovation in Electronics
c. To develop capacities for manufacture of strategic electronics within the country
d. To develop high quality electronics products
e. To promote environment friendly global best practises.
a. To achieve a turnover of USD 400 billion by 2020 involving investment of about USD 100 billion and employment to around 28 million by 2020.
b. To achieve a turnover of USD 55 billion of chip design and embedded software industry, USD 80 billion of exports in the sector.
c. Setting up of over 200 Electronics manufacturing clusters.
d. To significantly upscale high end human resource creation to 2500 PhDs annually by 2020 in the sector.
e. Other Objectives –
(i) Institutional, mechanism developing and mandating standards and certification,
(ii) Develop security profile of ESDM for strategic use,
(iii) To become a global leader in creating IPRs in ESDM.”

Thursday, October 20, 2011

Government of India
Ministry of Communications & IT
(Establishment Division)
Dak Bhawan, New Delhi-110001
Dated 18th October, 2011

            All Chief Postmaster General
            All GMs (PAF) Director of Accounts (Postal)

Subject: Payment of Dearness Allowance to Gramin Dak Sevaks (GDS) at revised                   rates w.e.f. 01.07.2011 onwards-reg.

            Consequent upon grant of another installment of Dearness allowance , with effect from 1st July, 2011 to the Central Government Employees vide Government of India , Ministry of Finance , Department of Expenditure, OM No. 1(14)/2011-E-II(B) dated 3rd October,2011, the Gramin Dak Sevaks(GSD) have also become entitled to the payment of dearness allowance on basic TRCA at the revised rate with effect from 01.07.2011. It has, therefore, been decided that the dearness allowance payable to the Gramin Dak Sevaks shall be enhances from the existing rate 51% to 58% on the basic Time Related Continuity Allowance with effect from the 1st July, 2011.

2.         The additional installment of dearness allowance payable under this order, shall be paid in cash to all Gramin Dak Sevaks. The payment of arrears of dearness allowance for the months of July to September, 2011, shall not be made before the date of disbursement of TRCA for the month of September, 2011.

3.         The expenditure on this account shall be debited to the Head" Salaries" the relevant head of account and should be met from the sanctioned grant.

4.         This issues with the concurrence of Integrated Wing vide their Dairy No. 123/FA/II/CS dated 18th October, 2011.

(Kalpana Rajsinghot)
Director  (Estt.)
Tele o11-23096036

 Minutes of the Meeting of Steering Committee held on 15th October 2011

 The meeting, as scheduled, commenced at 11.30 am.

 The following were present.

 Com  Shiv Gopal Mishra, General Secretary, AIRF
   "     Sukomal Sen, Sr Vice President, AISGEF
   "     R Muthusundaram, Secretary General, AISGEF
   "     C Sreekumar, General Secretary, AIDEF
   "     SN Pathak, President, AIDEF
   "     SK Vyas, President, Confederation
   "     MS Raja, Secretary, Confederation
   "     VAN Namboodiri, President, BSNLEU

After detailed discussion the following decisions were taken.

1.         The signature campaign would continue upto 20th November 2011 but at the same time the units shall be directed by each participating organisation to intimate the number of signatures obtained upto 15th November to CHQs of the respective Federations.

            The signatures obtained shall be submitted on 25th November 2011.

            Memorandum addressed to the Prime Minister shall be signed by the leaders of all participating organisations in the Steering Committee and Members of Parliament and dignitaries and the same shall be submitted to Speaker, Lok Sabha with a forwarding letter with a request to transmit it to the PM for consideration of the Parliament.

2.         Each station has to communicate the number of participants in the March to Parliament by 15th November 2011.

            The organisations present in the meeting stated their mobilisation for the March as below:

                        1. AIDEF                        - ---   5000
                        2. CONFEDERATION  ---- 10000
                        3. BSNLEU                   ----    3000     
                        4. AIRF                          ----- 10000
                        5. AISGEF                    ----- 50000

            Also, 3000 pensioners are expected to join the March to Parliament.

5.         The Rally shall be from 11 am to 2 pm.

6.         Central Trade Union leaders & MPs shall be invited to address the rally.

8.         On the day the PFRDA bill is taken up for discussion, 2 hour demonstration shall be held in the work places/offices through out the country by the members of all the participating organisations.

9.         Delhi based leaders of the participating organisations will meet on 19th November 2011 at 12 noon at AIRF office. Local leaders of all participating organisations shall be invited to the meeting.

10.       The Steering Committee shall meet at 5 pm on 24th November 2011 at AIRF office.

Paving way for over 1.5 lakh post offices to offer banking and insurance services, especially in the hinterland, the government will soon make amendments to 'The Indian Post Office Act, 1898'

"The draft amendment bill to make necessary changes in 'The Indian Post Office Act, 1898' has been circulated by the Department of Post for enabling post offices to enter banking and insurance sector," a source privy to the development said.

He further said, "The Planning Commission is vetting the proposal to convert post offices across the nation into full fledged banks and provide insurance service." Besides mail service, post offices in the country have broadly confined their business to offer financial services like savings bank, postal life insurance, pension payments and money transfer services.

The Department of Posts (DoP), which has the largest reach in the country, has diversified in recent times with providing facilities like rail reservation and telephone recharge coupons, but this move will substantially improve its basket of services.

The government, according to the source, wants to completely give a new dimension to the way post offices do business in the country and this Bill is a step towards that goal.With this initiative, the Department of Post (DoP) wants to tap the vast rural market with modern banking facilities through post offices.

"We want to commercialise the department. We will seek a licence from the RBI to convert all our post offices into banks," Telecom Minister Kapil Sibal had recently said.The lack of modern banking facilities in rural areas and dependence of villagers on informal sector for their credit requirements have prompted the government to work on financial inclusion by way of setting up 'postal banks'.

"The State Bank of India can't build branches all over India, but there are post offices across India. The branches are already there, so infrastructure expenditure is not required. So you can actually give banking facilities at relatively lower costs, which would be extremely beneficial to people," he had said.

This will also pave the way for the DoP to offer ATM services and debit cards to its customers.

Union Minister of Labour & Employment Shri Mallikarjun Kharge has emphasized the need to speedily implement programmes for harnessing its 'demographic dividend' of estimated youth population of 51 crore persons by 2016 in the age group of 15-35. Addressing the 44th Session of Labour Standing Committee here in New Delhi today the minister said if not done so the same may turn into a liability.

Shri Kharge said a well-structured mechanism has evolved with the establishment of the Indian Labour Conference, the Standing Labour Committee and various other tripartite bodies to deal with issues such as minimum wages, social security benefits, education, training, safety and health. Initiatives like MGNREGA, Rashtriya Swasthya Bima Yojna, Right to Education, Food Security measures and Right to Information have provided a proper foundation for development for our disadvantaged countrymen. Improving the living and working conditions of our workmen has always been the cornerstone of our Government policy. These measures under taken by Government of India have been appreciated at various fora world over, including the G-20 Labour Ministerial, which I attended recently.

He said Skills and knowledge are the driving forces of economic growth and social development. Quality employment and appropriate skilling of the work force are the major challenges before us. We need to create a huge infrastructure for skill training and certification. Imparting training to the informal sector and keeping pace with the demands of the industry is equally important. He said we have arranged resources for upgradation of all our Government ITIs. Most of these ventures have been undertaken through Public Private Partnership and we have also received enthusiastic response from the State Governments. Our next major initiative is going to be the establishment of new ITIs and Skill Development Centers. Another significant step undertaken is Skill Development Initiative under which informal workers will be trained in short term courses certified under Modular Employable Skills framework. This will be especially helpful for the school dropouts and unskilled workers. Till now, curriculum for 1200 courses has been developed. Government is also focusing on sectors like construction, real estate, tourism, Small and Medium Enterprises, transport, etc., which are labour intensive. The minister said Special attention is being given to the 'Gender dimension' and 'Employability by increasing IT literacy'. Our Mission Mode Project for upgradation of Employment Exchanges is going to be one of the most important E-Governance initiatives.

Referring to the earlier discussions on the rationalization of Labour Laws in the past in the meetings of National Commission on Labour, State Labour Minister Conference, Indian Labour Conference, etc the Minister said the National Commission on Enterprises in the Unorganized Sector (NCEUS) has also reiterated that there is need to formulate a National Labour Code in the form of basic law which should lay down a floor of substantive labour rights or standards such as Minimum Wages, Maximum Hours of Work, Minimum standards of safety and health at workplace and so on. Also, 'Recognition' of trade unions is and Verification of the membership of trade unions are the issues gaining a lot of importance in the Industrial Establishments. He said the present system of verification like secret ballot, check off, etc., needs to be closely examined further for evolving an improved system which is more transparent and brings out the proper representation.

On the demand of Trade Unions to amend the Contract Labour Act, 1970 to provide for automatic absorption of contract labour in the event of prohibition of employment of contract labour and opposition by the employers' organizations Shri Kharge said his ministry has been making efforts to protect the interests of all stakeholders and try to extend the same benefits to contract workers which are otherwise available to permanent workers. He expressed the hope that present Session of Standing Labour Committee will be quite productive and will lead to selection of Agenda items for the next Indian Labour Conference which are relevant and touch upon the core issues related to the 'World of Work'. The views of the various stakeholders present in the meeting will act as precious inputs for facilitating Government's decision making for formulation of Schemes and bringing in important legislation.

The detailed the agenda for to days meeting included five items, namely-(i) Verification of membership of Trade Unions (ii) Improvements in the working conditions of Contract Labour (iii) Ratification of ILO Core Conventions (iv) Enhancing employability and employment and (v) Rationalization of Labour Laws.

During the meeting 3 vice chairman were selected. They are Shri C.K. Sajinarayanan (Workers representative), Shri Shyam Bang (Employers representative) and Shri Shibu Baby John, Minister of Labour, Government of Kerala (State Governments representatives).The State Minister of Labours Participating in the session were: Shri Janardan Singh 'Sigriwal' from Bihar, Shri Chandra Shakher Sahu from Chattisgarh, Shri Rama Kant Goswami from Delhi, Pndit Shiv Charan Lal Shrma From Hariyana, Shri P. Parijat Singh from Manipur, Shri B.N Bachegowda from Karnataka, Shri Shibhu Baby John from Kerala and Shri Manik Dey from Tripura.

The Central Ministries participating in the meeting were Agriculture & Cooperation, Animal Husbandry, Dairying & Fisheries, Chemicals & Petrochemicals, Coal, Commerce, Economic Affairs, Environment & Forests, Financial Services, Heavy Industries, Health & Family Welfare, Home Affairs (Inter State Council), Industrial Policy & Promotion, Khadi and Small and Medium Enterprises, Mines, Overseas Indian Affairs, Petroleum & Natural Gas, Planning Commission, Posts, Power, Public Enterprises, Railways, Revenue, Road Transport & Highways, Rural Development, Social Justice & Empowerment, Steel Telecommunications, Textiles, Urban Development and Women & Child Development. From Employers Group Council of Indian Employers, All India Manufacturers' Organization, Laghu Udhyog Bharati, Federation of Indian Chambers of Commerce & Industry, Confederation of Indian Industry, The Associated Chambers of Commerce & Industry of India. From Workers Group Bharatiya Mazdoor Sangh, Indian National Trade Union Congress, All India Trade Union Congress, Hind Mazdoor Sabha, Centre of Indian Trade Unions, All India United Trade Union Centre, Trade Union Co-ordination Centre (TUCC), Self Employed Women's Association (SEWA), All India Central Council of Trade Unions (AICCTU), Labour Progressive Federation (LPF), United Trades Union Congress (UTUC) and National Front of Indian Trade Unions –Dhanbad (NFITU-DHN).


New Delhi-110001 Dated: 13.10.2011

Sub:     Outstation allowance for RMS Staff-revision of rates thereof.

            This has reference to Directorate memo of even no. dated 19.07.2011 on the subject noted above and reference received from the staff side.

            The mater has been examined and it has been clarified in this regard that the higher rate of OSA is admissible only to the LSG Supervisors of the Transit/Mail Sorting Sections holding norms-based LSG Posts and not to the LSG/Sorting Assistants who have been placed in higher grade of pay under MACP Scheme.

(R.Kumar Raj)
Asstt Director (Task Force)

No. F.No.113-07/2008-SB
Government of India
Ministry of Communications & IT
Department of Posts
Dak Bhawan, Sansad Marg,
New Delhi-110001, Dated: 12.10.2011

            All Heads of Circles/Regions
            Addl. Director General, APS, New Delhi.

Sub;   Attestation of Annexure-II (Affidavit) and Annexure-III (Disclaimer on     Affidavit)       in case of deceased claim case preferred where there is no    nomination- a          clarification regarding.

Sir / Madam,

            The undersigned is directed to say that after issue of new procedure for payment of amount of Savings Bank/Certificates in the name of deceased depositor/holders circulated vide SB Order No.25/2010 dated 24.12.2010, this office was receiving many references from the field units regarding attestation of Annexure-II and III by the Notary Public. The matter was referred to Min..of Finance, Department of Economic Affairs for clarification.

2.         Min. of Finance (DEA) has now clarified that the matter was referred to Min. of Law and Justice who opined that Annexure-II and III may be attested either by Oath Commissioner or by Notary Public. Therefore, it is requested that necessary amendment may be made in these forms accordingly. Amendment to the forms notified by Min. of Finance in respect of PPF and Sr. Citizen Savings Scheme will be made by the ministry shortly.

3.         It is requested that this clarification may be circulated to all all field units and all deceased claim cases kept pending for this reason should be settled urgently.
4. This issues with the approval of DDG(FS).

Yours faithfully,

(Kawal Jit Singh)
Assistant Director (SB

Saturday, October 15, 2011

Closing of Central Govt. Offices in connection with elections to Lok Sabha/State Assembly/Panchayat/Municipalities/Corporation or other Local Bodies-DOPT Clarificatory orders issued


Thursday, October 13, 2011

LGO selected candidates need not wait for induction training!

They will be imparted a brief in house – training of two weeks and posted as Postal Assistant
The Department has issued orders vide its letter No. 1-19/2010-Trg dt. 28.09.2011 that the PA/SA LGO candidates will be imparted two weeks in house training and posted as Postal Assistant. They need not wait for induction training and remaining as Postman/MTS after their selection in LGO examination.


Com. M. Krishnan Secretary General NFPE and Com. D. Theagarajan Secretary General FNPO explained the gist of discussion held in the MNOP committee held on 27.09.2011. After detailed discussions the following decisions are taken.
1. Regarding the already implemented Speed Post Hubs the following modifications may be sought for positive decision.
(a) More intra circle hubs should be opened to reduce back routing and delay. Circle Secretaries of R-3 and R-4 Unions (NFPE&FNPO) should give concrete proposals regarding additional hubs required and also for change of jurisdiction from Postal Side to RMS .Report from Circles Secretaries should reach the General Secretaries /Secretary Generals before 5.10.2011.
2. Regarding first class mails hub (L1,L2) the meeting came to the unanimous conclusion that if the L-1,L-2 is implemented the following will be position:
(a) Most of the L-2 office will face closure in the near future due to fall in mail volume.
(b) In major metros/cities all the existing sorting offices and Divisions will be merged and closed.
(c) There will be large scale transfer and displacement of staff affecting their career prospective at large. Large number of Mailman staff and GDS may become surplus in metro/cities.
(d) L-1,L-2 will result in unnecesary back routing and avoidable delay in transmission/delivery of mails.
In view of the above the meeting decided to oppose implementation of L-1 and L-2 .
It is also decided to prepare for another industrial action if the department go ahead with implementation of L-1, L-2 inspite of our opposition. It is decided to approach the Hon`ble Minister for Communications & IT through MPs and appraise him, of the gravity of the situation and request intervention.
In the meantime the Secretary Generals shall prepare a detailed note explaining the above impact of L-1, L-2 for educating the rank and file membership.

Resolution adopted in Central Working Committee Meeting held at from 01.10.2011 to 02.10.2011

This Central Working Committee Meeting of AIPEU Group ‘C’, held at Jabalpur from 01.10.2011 to 02.10.2011, after having detailed deliberations on the settlement reached on the 2011 July 5th deferred All India Indefinite Strike, records its appreciations on the efforts of the Leadership of CHQ and NFPE in forging and maintaining unity under JCA and campaigning vigoursly and conducting the negotiation such a very hard manner for achieving the demands raised in the charter of demands. This CWC of AIPEU Group ‘C’ also unanimously comes to the conclusion that at the given juncture, it was the best possible settlement that had been arrived at with the Department after hectic negotiations.
However this CWC notes with grave concern that though the closure of 9797 Post offices could be stalled and orders have been issued on various issues, one of the main demand of the strike viz. speed Post hubs and introduction of hub system (L1 + L2) for first class mails under MNOP, is still under negotiation in a committee specifically constituted for this purpose and is yet to be resolved.
This CWC also notes that other demands concerning the Group ‘C’ employees like cadre restructuring including that of System Administrators is still under negotiation in the committee and the employees are eagerly awaiting positive outcome from the committee.
Under these circumstances, this CWC directs the Central Leadership of CHQ and NFPE to be vigilant and to maintain the unity forged under JCA and if the negotiations taking place in various committees fail to yield desired result at a reasonable level, to call for agitation programmes including direct action if situation warrants.
This CWC, while taking note of the implementation of the phased programme of action as per the call of the Confederation of Central Govt. Employees & Workers for realization of the 14 Point Charter of demands on common demands of CG employees, calls upon the Circle/Divisional/Branch unions to mobilize the employees in fullswing in all programmes particularly for the immediate programme of November 25th Parliament March against the PFRDA Bill along with State Govt. Employees, Teachers, Railway and Defence employees. This CWC further endorse the decision of the National Convention on PFRDA Bill to go on one day strike against PFRDA Bill.
The CWC of AIPEU Group C also calls upon the CHQ, NFPE and Confederation leadership to strengthen the unity with Central Trade Unions and also mobilise the employees behind the five point common demands of working class raised by the Central TUs including price rise; This CWC clearly understands that the onslaughts of the globalization policies pursued by the Central Govt. can be prevented only by the united action of the entire working class and common people of this country and the need of the hours is total unity and uncompromising struggle.

Finance ministry pushes for increase in PPF, post office rates:

NEW DELHI: Faced with a cash crunch, the finance ministry is moving a proposal to increase interest rates on small savings schemes such as Public Provident Fund and post office deposits but politics may play spoilsport.
Official sources told TOI that finance minister Pranab Mukherjee will decide on the proposal over the next few days as small savings instruments have lost out to bank deposits that earn higher interest. As a result, the government has been forced to borrow Rs 53,000 crore more from the market by issuing bonds, a move that can increase interest rates further and also upset budgetary calculations.
If Mukherjee approves an increase in interest rates on small savings, your PPF will fetch you at least 8.2%, instead of 8% now, while senior citizens can hope to earn around 9%. In addition, individuals will be permitted to park Rs 1 lakh in PPF accounts instead of Rs 70,000 at present. Similarly, post office deposits will fetch 50-70 basis points higher (100 basis points = one percentage point).
But politics over two schemes are holding back a green light from the finance minister. Sources said the finance ministry has received several representations from individuals urging not to abolish the Kisan Vikas Patra (KVP), while nearly 5 lakh agents have opposed the move to cut the commission on Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) to 1% from 4%.
Officials in the tax department have complained that KVP has become one of the biggest instruments of money laundering, a concern which was even shared by a high-level committee headed by former RBI deputy governor Shyamala Gopinath. In fact, maximum instances of misuse of KVP have been found around Amritsar, pointing to the possibility of Pakistani funds entering India. So, it hasn't come as a surprise that a significant number of petitions for the scheme's continuation have come from Punjab and Haryana.
"The ministry has received representations from various sections. They have demanded that KVP should not be discontinued as it is linked to farmers while the reduction in the commission for MPKBY scheme has been opposed on the ground that it will hurt the income of women agents in rural areas," a source, who did not wish to be identified, said.
Mukherjee faces another dilemma as MPKBY was started during former prime minister Indira Gandhi's tenure which raises fears of criticism from within the party, especially because women agents will be affected. It's a different matter, however, that the agency is in the name of a woman but the person hawking the scheme is either the agent's husband or another family member.
It is likely that the finance minister, the government's key troubleshooter, will settle for reducing commission to around 2%, which will also ensure that investors do not lose out on returns as commission eats up a certain portion of the returns every time funds are deposited.
An expert panel headed by Gopinath had recommended moving from an administered price regime to a market-linked interest rate system for small savings schemes that would translate into higher returns for now.
It has recommended closure of only one existing scheme - KVP -- while recommending continuation of all other schemes with some modifications. The committee also recommended that the investment ceiling in the popular Public Provident Fund scheme be raised to Rs 1 lakh from the current Rs 70,000.
Finance ministry officials said increase in the PPF investment limit would help garner about Rs 5,000 crore in the coming quarter if the small savings reform plans were implemented. This would also help the government tide over the tight fiscal situation and reduce prospects for any further increase in its market borrowings. The government has recently raised its borrowing against the backdrop of slowing revenues and less than expected receipts from disinvestment in state-run enterprises.
The government panel had said the continued popularity of both KVP and NSC among the urban population who are not all small savers could be prompted by an incentive to avoid tax. "As compared to NSC, KVP is more popular as it is a bearer-like certificate due to its ease of transfer. It also has an in-built liquidity due to the regulated premature closure facility offered in the scheme. In view of the recent developments on Anti Money Laundering/CFT front, the committee recommends that KVP should be discontinued," the report said.
The committee had also said that 4% commission under MPKBY was very high and was affecting the viability of the National Small Savings Fund. "The committee recognises that the RD scheme requires considerable effort on part of agents in mobilizing monthly deposits. However, 4% commission is distortionary and expensive. The committee recommends that this should be brought down to 1% in a phased manner in a period of three years with a 1% reduction every year," the report said.
Latest data shows investors are opting for bank deposits due to the increase in deposit rates. Between April and August 2011, retail investors withdrew nearly Rs 5,500 crore from small savings deposit schemes in post offices and certificates such as National Savings Certificate. Small savings schemes, most of which are exempt from tax, had attracted investment of over Rs 25,000 crore in the same period last year.
Source : The Times of India, October 10, 2011