Sunday, April 28, 2013

GM OFPM arested

Bureau of Investigation team on Wednesday arrested V.K. Panda, the general manager of the Defence Ministry’s Ordnance Factory at Medak near Hyderabad, after he was summoned to the city as part of an investigation into irregularities in a deal for supply of battle tank parts. Four officials of two forgings companies, who too were summoned here, were arrested in connection with the scam. They are S. Shanavas, managing director of Steel and Industrial Forgings Ltd, (SIFL), Thrissur; A. Valsan, senior manager of SIFL; Muralidhar Bhagvat, former managing director of AMW-MGM Forgings in Mysore; and K.R. Mugilan, a manager in the same company.
The CBI had earlier sought the Defence Ministry’s permission to arraign Panda as an accused in the case. He had allegedly been in touch with defence consultant Subi Mally, who is believed to have facilitated an agreement between Panda and SIFL to award a contract to the forgings company. He allegedly accepted Rs.3 lakh as bribe for the deal.
Shanavas and Valsan had earlier been named second and third accused respectively in the case. The duo allegedly conspired with Subi Mally, the fourth accused, to manipulate deals between SIFL and the ordnance factories at Medak and another at Avadi.
They also allegedly received a part of the commission that Ms. Mally collected for her role in the deal. A portion of this sum had been recovered from Mr. Shanavas’ residence by the CBI in a search earlier.
Ms. Mally has already been arrested and interrogated by the CBI. CBI officials said the arrests on Wednesday were made on the basis of information given by Ms. Mally and other evidence.
Ms. Mally allegedly acted as a mediator between ordnance factories and forgings companies like SIFL and AMW-MGM.
The five arrested will be produced before the CBI special court in the city on Thursday

Monday, April 8, 2013

OFB moderisation plan

The Ordnance Factory Board (OFB) has drawn up a Rs 6,800-crore modernisation plan for its 39 factories across the country. A detailed project report in this regard will be submitted to the Defence Ministry for its approval. The detailed plan will outline the future product demand and include necessary requirements to suit this demand.
The board will also commence trial production at its new plant at Korwa near Lucknow this year. In case of the Nalanda project in Bihar, work on the fourth plant of the project has been stalled due to some “internal problems”.
OFB would also look forward for technical collaborations with Russian companies for manufacturing Smerch rockets that have a range of 90 km.
The board is expecting a 29 per cent growth in its turnover this fiscal from Rs. 7,815 crore to Rs 11,000 crore. It currently exports items worth Rs 50 crore to countries that include Indonesia, Malaysia, Kenya, Vietnam and Latin American nations

Massive Rs upgradation for Ordnance factories

MoD's massive Rs 15,000-cr upgrade for ordnance factories

This amount will be spent during the 12th Plan on upgrading, modernising and supplementing the OFB's production facilities
the defence ministry (MoD) will spend an unprecedented Rs 15,000 crore on the Ordnance Factory Board (OFB), its fully owned conglomerate of 41 factories that manufactures arms, ammunition, vehicles and equipment mainly for the military.

This amount will be spent during the 12th Plan (2012-13 to 2016-17) on upgrading, modernising and supplementing the OFB's production facilities.

During the last decade, the OFB has spent an average of about Rs 400 crore per year on modernisation. Now, during the 12th Plan, OFB modernisation will consume more than Rs 3,000 crore annually.

For private sector companies that are foraying into defence manufacture, this is worrying news. Bharat Forge, for example, has invested about Rs 100 crore on importing an entire factory to build artillery guns; it has set up a production unit in Pune. Now the private sector fears that that heavy expenditure on upgrading the OFB will result in military orders being placed on the OFB rather than on the private sector.

Dismissing such apprehension, a top MoD official tells Business Standard that the OFB's modernisation plan will not create additional production capacity. Instead, the new infrastructure is intended to improve production quality and to reduce the OFB's manpower levels by increasing automation.

For example, some OFB facilities still fill explosive into ammunition by pouring it manually, a laborious and inaccurate process that causes variations in the ammunition. The new machines being installed will fill explosive using a screw-driven mechanism that is faster and more precise.

A key benefit of modernisation will be a reduction in the OFB's bloated workforce. While the OFB is authorised more than 1,50,000 workers, it functions with just 90,000 on Sunday. Modernisation could bring this down to below 50,000.

This modernisation plan comes as a major relief for the OFB, which has been tarred by scandal since the Central Bureau of Investigation arrested the OFB's just-retired chairman Sudipta Ghosh on May 19, 2009, for allegedly accepting bribes from foreign companies.

Now dust from that scandal appears to be settling. While Ghosh has not yet been convicted, the MoD banned six arms vendors on March 5, 2012, from doing business with the Ordnance Factory Board for 10 years. Last month the army placed a Rs 1,260-crore order for 114 artillery guns, which the Ordnance Factory Board has developed from plans obtained from Bofors in the 1980s.

While Bofors provided 155 millimetre/39 calibre guns in the 1980s, the OFB has upgraded these with in-house R&D to 45 calibre.

Of the sanctioned Rs 15,000 crore, the Ordnance Factory Board says that Rs 7,600 crore will be spent from the Replacement Fund on replacing old machinery with new, automated and efficient machines that require fewer operators. The Replacement Fund is built up from the depreciation amount that OFB writes off each year, creating a corpus for replacing production machines after about 20 years of operation. Another Rs 7,400 crore will be spent from the New Capital head on civil works and modern production gear that is badly needed in the OFB's more decrepit factories.

One of the OFB's facilities, the Gun and Shell Factory, Cossipore, has produced equipment at the same location since 1802.

The New Capital expenditure also caters for new projects, such as the Rs 1,500-crore plan that was approved last month for manufacturing the DRDO-designed Pinaka multi-barrel rocket launcher, and advanced variants of its ammunition in several OFB facilities.

In addition, the Ordnance Factory Board will now build 51 mm and 81 mm mortar casings and will enhance its capacities for producing and overhauling infantry combat vehicles (ICVs).

"The modernisation plan, which was drawn up in 2010, has been approved by the government. Now the MoD will allocate funds to the OFB based on an annual expenditure plan," says L Mohanty, the OFB's Deputy Director (Engineering).

OFB officials admit that it will be a challenge to transparently absorb such a large modernisation budget. Mohanty explains that the OFB has overhauled and simplified its procurement procedures, especially eprocurement, which is now mandatory for most transactions.

Three key procurement manuals have been completely revamped. These include the Plant and Machinery Procurement Manual, with new procedures for overhauling machinery; the Civil Works Procedure Manual which has a simplified procedure for civil works construction; and the OFB Procurement Manual, which lays down the procedure for procuring raw materials.

The Ordnance Factory Board was the world's 46th largest arms manufacturer in 2010, according to the Stockholm International Peace Research Institute.

Its total sales that year were Rs 11,214 crore ($2.04 billion), with arms sales bringing in about 80 per cent of its revenue. However, worker productivity has been abysmally low, at just Rs 12.5 lakh per annum

Monday, March 25, 2013

Defence Ministry on OFB


A.K. Antony on Monday reviewed the functioning of the Ordnance Factory Board (OFB), including plans to get its much-delayed Nalanda factory on stream.
The factory was envisaged over a decade ago for manufacturing ammunition for the 155 mm field guns, but the plan ran into problems: first when South African firm Denel was blacklisted and this year when the Israeli Military Industry (IMI) received similar treatment after its name figured in a Central Bureau of Investigation case.
The Minister was informed by the OFB that a pilot batch of the Bi-modular Charge System modules that the factory is to produce have been assembled at Nalanda in collaboration with the Defence Research and Development Organisation and it will soon be offered to the Army for trials.
The OFB, Ministry officials said, told Mr. Antony that plant for bulk production would be set up through indigenous resources at a lesser cost. According to reports, the IMI was to set up the plant at a cost of Rs. 1,200 crore.
Incidentally, with the government barring the IMI from doing business with the OFB and the Defence Ministry earlier this year for a period of six years, the Board encashed the Rs. 224 crore bank guarantee provided by the Israeli firm on the grounds that there was a breach of the “integrity pact'' it signed for securing the contract after winning a competitive bid.
The OFB said it achieved a turnover of Rs. 12,391 crore in the last financial year, a 10.48 per cent increase over the Rs. 11,215 crore turnover in 2010-11.
The OFB is planning to invest Rs 15,764 crore to modernise its 39 factories and augment their capacities in the 12 Plan period. This is a sharp hike, compared to Rs. 2,953 crore for the same task in the previous Plan period.
During the recent past, the government sanctioned some major projects, including a Rs. 971 crore investment to augment the capacity of T-90 tanks from 100 to 140 tanks; a Rs. 378 crore plan to increase the capacity of manufacturing large calibre weapons; and Rs. 368 crore to augment the capacity of spares for the T-72 and T-90 tanks

Wednesday, March 20, 2013

cruise missile launching


India today successfully carried out the maiden test firing of the over 290 km-range submarine-launched version of BrahMos supersonic cruise missile in the Bay of Bengal becoming the first country in the world to have this capability.
The submarine-launched version of BrahMos was successfully test fired from an underwater pontoon near here, BrahMos CEO A Sivathanu Pillai said.
This is the first test firing of an underwater supersonic cruise missile anywhere in the world and the missile travelled its complete range of over 290 kms, he said.
He said the performance of the missile during the test launch was "perfect".
Ship and ground-launched versions of the missile have been successfully tested and put into service with the Indian Army and the Navy.
The maiden test of the submarine-launched version of BrahMos comes over a week after the indigenously built long-range subsonic cruise missile Nirbhay failed to hit its target in its first test.
"BrahMos missile is fully ready for fitment in submarines in vertical launch configuration which will make the platform one of the most powerful weapon platforms in the world," Pillai said.
Defence Minister A K Antony congratulated DRDO scientists and Russian specialists along with officers of the Indian Navy associated with the project for successful test launch of missile from an underwater platform.

Monday, March 18, 2013

7th CPC

7th CPC News : Central Minister in favour of seventh pay commission

Ajay Maken backs cry for seventh pay panel

New Delhi : With a little over a year to go before the next general election, the demand for a Seventh Pay Commission has started to gather momentum. Union housing and urban poverty alleviation minister Ajay Maken has taken the lead in endorsing the Central government employees' request for setting up of the new pay panel, citing the erosion of real wages due to high inflation since implementation of the Sixth Pay Commission's recommendations.

In a letter addressed to Prime Minister Manmohon Singh, Maken underlined how every pay panel since the Second Pay Commission, barring the Sixth Pay Commission, were set up in the third year of the decade. "We are again in the third year of the ongoing decade and Central government employees are justifiably looking forward to the Seventh Pay Commission," he said.

Recalling that it was under Singh that the last pay panel was set up in 2005, after the NDA government failed to do so in 2003, Maken, in the communication dated March 14, requested that a decision be "taken on priority" for constitution of the  Seventh Pay Commission. A notification for constitution of the 7th Central Pay Commission is the need of the hour, which is bound to have bearing upon about 20 million employees," he said.

Maken concluded by emphasizing that setting up of the new pay panel was in "larger interest of government employees as well as the (Congress) party".

Thursday, March 7, 2013


Army’s got it all wrong






 



SoldiersR Sundaram.
The furore over the leakage of the letter by the retired General V.K. Singh to the Prime Minister has faded from our memory faster than the fizz in a soda bottle. In that letter, the General had raised his concerns about the state of the preparedness in terms of weapons, ammunition and other fighting equipment.
According to newspapers the General was “miffed” with Ordnance Factories which produce weapons and other fighting materials. But no one thought it fit to ask the Factories what their side of the story is. If the Factories have been so remiss in discharging their remit in depth, range and quality as portrayed, there is every reason to seriously consider winding up this vast organisation. It may be of interest to know here that these factories produced $2.4-billion worth of equipment last fiscal for the armed forces and paramilitary forces, duly checked and accepted by an independent quality assurance organisation.
The Army’s fault
The Army’s own contribution to the current state of affairs cannot be denied. Although originally Russian technology was used for making this equipment, the Army found the claims of a superior product by the now-blacklisted Israeli Military Industries (IMI) attractive. It imported 46,000 rounds seven years ago and found them good. Later, in 2006, the Ordnance Factory Board started the first phase of a two step co-production with IMI. Strangely, however, it took unconscionably four long years for the Army to give bulk production clearance for the Board’s product, although all the critical components were from Israel. The Comptroller and Auditor General has observed this, too.
Another important aspect highlighted by the retired General was the incident of bursting of gun barrels of T-72 tanks. Although these have been produced in the erstwhile USSR and East European countries since early eighties in huge quantities, the problem dogged this product for long. In India, too, this occurred in barrels of both foreign and indigenous origins. Getting inputs from Russia to make improvements as implemented over there took more than half a dozen delegation-level meetings between the two countries. Although after valiant efforts some details of heat-treatment processes were obtained and implemented, there is no knowing that the problem has, indeed, been licked, since Russia does not share ‘know why’.
Meanwhile, the Army appears to believe that one of the causes may be the strength of explosives in the indigenously produced high explosive ammunition. This is funny since there is no other ammunition available to be used in training or trials, as there is no stock of anti-tank ammunition which is what compelled the General to write in the first place.
Difficult Russians
Although Russia has been our mainstay in defence equipment, it has proved to be a difficult partner at the operating level. Meetings to sort out technical problems or supply deficiencies routinely entail inordinate delay. One wonders whether Russia has ever attempted modernising its documentation or logistics to 21{+s}{+t} century standards. Price negotiations with Russian suppliers, too, are a nightmare. During delegation-level meetings lasting a week they would always come up with a quotidian formulation such as “reply would be given in the established manner”. There is rarely any elemental cost data or indices made available to back their arguments. Unless, in the long haul, the Army sincerely believes in indigenous development, whether from public or private sector, there may not be any guarantee against recurrence of such situations.
(The author is a former member, Ordnance Factories.)

Monday, March 4, 2013

IAF, defence accounts officers to help CBI probe chopper deal

New Delhi, Mar 3, 2013 (PTI)
Officials from Indian Air Force (IAF) and Defence Accounts Department will join a special CBI team formed to probe the allegation of payment of kickbacks in the Rs 3,600 crore VVIP helicopter deal as the investigating agency prepares to examine suspects named in its Preliminary Enquiry (PE).

Sources in the agency said an IAF officer would be joining the CBI team along with some officials from the Controller General of Defence Accounts to examine the documents collected from Milan as well as from Italian-based Finmeccanica, parent company of AgustaWestland helicopter.

The special CBI team, to be assisted by the Income Tax department sleuths as well, will study the necessity of changing the specification of the helicopter besides the money trail, they said.

Former IAF chief S P Tyagi and his three cousins are among 11 individuals named in the PE registered by the CBI on February 24 besides four companies.

Suspected European middlemen Carlo Garosa, Christian Michel and Guido Haschkhe, advocate Gautam Khaitan formerly associated with Aeromatrix and its CEO Praveen Bakshi, former Finmeccanica Chairman Giuseppe Orsi, former AgustaWestland CEO Bruno Spagnolini, have also been named.

The CBI will examine some of the officials from the Aeromatrix and IDS Infotech, the sources said, adding that Tyagis including Julie, Dosca and Sanjeev Tyagi, cousins of former IAF chief, will be questioned at a later stage.

The Defence Ministry has handed over the documents to the CBI which includes replies from the AgustaWestland to its show cause notice issued besides some internal communication of the ministry pertaining to the deal.


   

Sunday, March 3, 2013

DRDO scientist held in terror plot set to be freed, MoD sacks him




FP 
On the eve of his release, the Defence ministry has terminated the services of Aijaz Ahmed Mirza, 25, a junior research scientist at the Defence Research & Development Organisation (DRDO) who was arrested by the Bangalore police in an alleged terrorism plot last August. Mirza is set to be released on bail next week following the special court's order, as the National Investigation Agency (NIA) has not filed a chargesheet against him.
Mirza's father, Abdul Rauf Mirza, 57, a Railways employee, said they received the termination letter, dated February 12, a couple of weeks ago.
"We got a letter saying his services as a junior research fellow at the DRDO's Centre for Airborne Systems was being terminated as of February 12, they have not given any particular reason. I don't know what to do about it. My son will be released in a couple of days. I will discuss what he wants to do — whether he wants to appeal the termination or not,'' he said.
Mirza was awarded a junior research fellowship by the DRDO on December 15, 2011, after an extensive screening process that included background checks. He took up the fellowship on January 9, 2012.
Mirza, who hails from Hubli in North Karnataka, shared a small house in Bangalore with his younger brother Shoaib Ahmed Mirza, 23, a student of a post-graduate computer applications degree course, and four other youths from Hubli. All six youths were arrested on August 29 by the Bangalore Police for alleged terror links

Wednesday, February 27, 2013

OrdnanceFactory DUM DUM

KOLKATA: The DumDum Ordnance Factory is planning to have global presence in the near future by exporting its arms components to NATO and African countries.

"Our products are of the highest quality and our cost of production is also low. What we are producing are only addressing the needs of the country. So in the near future if we can increase production we can export our products," the factory's General Manager, Vinod Kumar Singh said.

"We have plans in the near future to export our products to NATO and African countries. It is a long term plan, it is still in a planning stage. We have sent the plan to the Ordnance Board," Singh said.

The factory produces ammunition boxes, tail units for air force bombs such as TU-250 And TU450, 20 round and 30 round polymer magazines for 5.56 assault rifles, LMG 5.56, tail unit 100-120 kg air bomb and other components for arms and armaments used by the Indian armed forces.

"Now we are changing from component manufacture to technology manufacture. It requires total change in mindset," Singh said.

Singh said that from the next financial year, the factory would also produce parts for the T-90 tank which were being imported from Russia.

Tuesday, February 26, 2013

OF AMBAJHARI

Recruitment scam at Nagpur Ordnance Factory



CBI has registered offences against against Bhabatosh Basant Mazumdar, an examiner and a union leader at Ordnance Factory (OF) and his son Soman Mazumdar and other OF officials for accepting bribe to the tune of Rs3-4 lakh per candidate for recruitment of labourers.
SP Sandip Tamgadge said, "Nearly 25,000 applicants had applied for 250 posts and appeared for the preliminary examination on February 1. Of these, approximately 5,000 appeared for the main exam Sunday, February 24. "
"CBI had information about demand of Rs 3.5 lakh being made for facilitating recruitment. A trap was laid and Soman was caught. He confessed to his and his father's involvement and senior OF officers," he added.





Monday, February 25, 2013

CBI cases against HVF,OFPM officials

KOCHIl: Mumbai-based businesswoman, who allegedly mediated in a deal between Thrissur-based Steel and Industrial Forgings Ltd (SIFL) and various ordnance factories for supplying components of battle tanks, has been arrested, CBI sources said on Friday.
The arrest last night, the first in the case, followed after Subi Malli, who was being interrogated, allegedly refused to cooperate, CBI sources said.
She was being questioned by CBI during the past few days.
Malli has been charged with conspiracy, corruption and causing loss to the exchequer. She had allegedly received Rs 18 lakh as commission from SIFL for mediating in the deal, the sources said.
CBI had registered FIR against three persons-- M Shahnavaz, Managing director of SIFL, the company senior manager, Valsan and Malli for allegedly colluding with some officials of Heavy Vehicles factory at Avadi and bagging contracts at highly inflated rates, causing loss to the state exchequer.
Some unknown persons of the Avadi unit have also been mentioned in the case, CBI sources said.
The allegation against the accused is that SIFL officials conspired with Malli to influence the public servants of defence establishment at Avadi and bagged some contracts at highly inflated rates and cheated the exchequer. The case was registered after searches were conducted on January 15 and 16 at the residences and premises of the suspects in Kerala, Mumbai, Avadi and Hyderabad.
SIFL is a regular supplier of road wheel arm and flange used in the manufacture of artillery tanks.
It is alleged that Malli got in touch with officials of SIFL regarding supply made to the Ordnance factory at Madek in Hyderabad in January last year. SIFL's tender was at first rejected and the same product was retendered quoting a higher price and the company managed to secure the contract.
The deal came to light after the director board of SIFL raised objection to granting of commission

Tuesday, February 19, 2013

National Defence Group B Gazetted Officers Association Meeting with MOD Officials

                        MEETING WITH JOINT SECY/MOD ON 12/02/2013


DEAR FRIENDS,
                           The office bearers of NDGBGOA discussed following points along with Joint secretary/MOD (DP) on 12/02/2013.

1- Recognition of NDGBGOA-Recognition paper has been cleared by JOINT SECRETARY and forwarded to Additional Secretary which will be submitted to D JCM within this week.

2-CADRE REVIEW- Regarding cadre review there was a brief discussion and our association pointed out that there is negligible aspects for a Group B Gazetted officer to get a promotion to  group A organised cadre even after completion of more than 12-14 years of service as JWM. IT is brought to the notice of Joint Secretary that there is only 187 promotional posts are existing for a 7700 JWMs which is negligible.Moreover the cadre review committee report is not being forwarded by OFB till date.Finally Joint Secretary/MOD(DP) assured  that with consultation of assn cadre review will be finalised. The promotional avenue of JWM cadre will be taken care in cadre review.
3- NATURE OF WORK OF JWMs- Regarding nature work of JWMs it was brought to the notice of JS that all the JWMs are demoralised day by day in the OFB due to the lack of promotional avenue, less financial benefits and there is no clear instruction on nature of work to JWMs. One way JWMs are designed as a Managers but forced to perform supervisory staff in round the clock without any financial benefit of Night Duty Allowance.Joint Secretary/MOD(DP) assured  to study the case and will visit all the Factories for feasible solution. Regarding nature of work and SRO of JWMs, the matter was discussed with Deputy Secretary and Under Secretary.It was brought to their notice that the letter issued by MOD, Dept of production and supply t in 1st october 2002  regarding supervisory staff  and SRO indicates  JWM as Group B gazetted (Ministerial) which means clerical job. Finally under secretary assured that this issue may be taken up by association and forwarded to MOD for removal of the letter issued in 2002 and ministerial from the SRO. In this regard assn has made the letter to MOD which will be sent in this week.
4- Cancellation of transfer of JWMs- Regarding the last Cancellation of Transfer Order of JWMs JS/DP assured that it will be reinstalled shortly and the matter will be taken care at the earliest.

This is for the information to our members.

All the Branch Chairman/ Secretary are requested to make maximum membership in their branches for the 
year 2013-14.

Yours Brotherly,
General Secretary,
NDGBGOA/CE

Monday, February 18, 2013

Revision of Pension of Pre-2006 pensioners

F.No.38/37/08-P&PW(A)
Government of India
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor Lok Nayak Bhawan,
Khan Market, New Delhi-110 003,
Dated the 13th February, 2013.

OFFICE MEMORANDUM

Sub:- Revision of pension of pre-2006 pensioners — reg.

The undersigned is directed to say that in pursuance of Government’s decision on the recommendations of Sixth Central Pay Commission, orders were issued for revision of pension/family pension vide this Department’s OM No.38/37/08-P&PW(A) dated 1.9.2008, as amended from time to time.

2. The pension/family pension of pre-2006 pensioners was stepped up to 50% of the sum of minimum of pay in the pay band and the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired as arrived at with reference to the filment tables annexed to the Ministry of Finance, Department of Expenditure OM No.1/1/2008-IC dated 30th August, 2008 with effect from 24.9.12 vide this Department OM of even number dated 28th January, 2013.

3. In regard to disbursement of revised pension/family pension, while Head of Departments are responsible for sanctioning of pension/family pension, in cases where revision has already been done by PAOs consequent to 6th CPC, the revision may be effected at the level of PAOs. A copy of the revised authority may be sent to HOD/DDO for record. In cases where no revision has been effected, Head of Offices may follow normal procedure for revision of pension/family pension. Even in cases where there is no change in pension/family pension as a result of the issue of this OM,a revised authority for no change may be issued by the PAOs. The finalized authority will be sent to CPAO for further necessary action.

4. A suitable entry regarding the revised pension/family pension shall be recorded by the pension Disbursing Authority in both halves of the Pension Payment Order.

5. In case the pension/family pension in respect of pre-2006 pensioners/family pensioners has not already been revised w.e.f. 1.1.2006, the same may also be revised for the period upto 23.9.2012 in terms of order dated 1.9.2008 and subsequent orders thereto and for the period from 24.9.12 in terms of order of even number dated 28.1.2013.

6. CGA/CPAO/Ministry of Defence/Ministry of Railways/Department of Posts/Department of Telecom will devise their own monitoring mechanism to ensure that enhanced pension and arrears are disbursed to all civil pensioners/family pensioners expeditiously.

sd/-
(Tripti P Ghosh)
Director

Wednesday, February 13, 2013

CBI Search in Medak Ordnance factory


Helicopter scam: CBI searches in Medak

.
The CBI sleuths today searched the premises of ordinance Factory in Medak’s Yeddumylaram village.
A CBI team from Kochi started searching the factory unit from 6 am on the directive of Home Minister A K Antony. 
Meanwhile, Italian investigators on Tuesday alleged that business conglomerate Finmeccanica bribed S P Tyagi when he was chief of the Indian Air Force to swing the controversial Agusta Westland VVIP chopper deal worth Rs 3540 crore in favour of the company. In the preliminary investigation had revealed that about 10 per cent in the total deal has been given as bribe by the Italian company.

The CBI officials seized some important documents from the office and the residence of ODF General Manager Pandey .  Home Minister A K Antony ordered for a thorough probe soon after the Italian investigators announced the military chopper deal

IT exemption limit to be raised

Salaried employees want IT exemption limit raised: Assocham survey


KOLKATA: A vast majority of salaried class people employed in a host of trade and industry sectors want the Finance Minister Mr. P Chidambaram to raise the exemption limit of income tax to at least Rs 3 lakhs and increase deductions such as medical and educational allowances in the Union Budget so that they are left with more purchasing power, a comprehensive Assocham survey across major cities, has indicated.

The survey was conducted in major places like Delhi-NCR, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad, Hyderabad, Pune, Chandigarh, Dehradun etc on "Budget 2013: Common man's expectations from the FM". About 2,500 employees from the different sectors were covered by the survey from each city on an average.

Over 89% of the respondent said that the slab of tax free income has not moved up in line with real inflation. The current basic exemption limit of Rs. 2,00,000 should be increased to at least Rs, 3,00,000 with the limit for women going upto Rs 3,50,000 lakhs. This will increase the purchasing power of individuals and stimulate demand.

"Pushing the basic exemption limit the tax payers in saving taxes and will also align it with the proposals made by the Parliamentary standing committee on the Direct Taxes Code (DTC)", the survey noted.

With increasing healthcare costs, the existing tax free limit of Rs. 15,000 should be increased to Rs. 50,000/-, the same also needs to be considered in the Budget, said 89% of the respondent.

The transportation allowance granted by the employer to his employee for commuting between the place of work and residence is tax-free to the extent of Rs. 800 per month. This limit was fixed more than a decade ago, and definitely needs to be revised upwards to at least Rs. 3,000 per month, given the rising commuting costs across the country, adds the survey.

"Additional benefits related to housing, the deduction limit for payment of interest (on self occupied property) has remained constant at Rs 1,50,000 since 2001. There is an increase in property prices and accordingly the amount of loan. An increase in the exemption limit to Rs 2,50,000 will be a welcome change", reveals the Assocham survey.

"Section 80C of the IT Act provides a deduction of Rs 1,00,000 for certain investments. This provision helps people in making forced savings that helps them in the future. A common man expects this limit to be increased to Rs 2,00,000 with sub-limit of Rs. 50,000 exclusively for insurance and pension, adds Mr. D S Rawat Secretary General Assocham.

The survey was able to target employees from 18 broad sectors, with maximum share contributed by employees from IT/ITes sector (17%). After IT/ITeS sector, contribution of the survey respondents from financial services is 11%. Employees working in engineering and telecom sector contributed 9 per cent and 8 per cent respectively in the questionnaire

Sunday, February 3, 2013

-6t PCA-Pensioners-pre 2006

No.1(11)/2012-D(Pen/Policy)
Government of India
Ministry of Defence,
Department of Ex-Servicemen Welfare

New Delhi, Dated 17th January 2013

To
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

SUBJECT: Implementation of the Government decision on the recommendations of Committee on the issues related to Defence Service Personnel and Ex-Servicemen. 2012 - Minimum guaranteed pension to pre-2006 Commissioned Officers pensioners/family pensioners.

Sir,
The under signed is directed to refer to this Ministry's letter No. 17(4)/2008(1)/D(Pen/Policy) dated 11.11.2008 as amended, issued for implementation of Government decision on the recommendations of the Sixth CPC for revision of pension/family pension in respect of pre-2006 Armed Forces pensioners/family pensioners. As per provisions contained in Para 5 therein, with effect from 1.1.2006 revised pension and revised ordinary family pension of all pre-2006 Armed Forces pensioners/family pensioners determined in terms of fitment formula laid down in Para 4.1 of above said letter dated 11.11.2008, shall in no case be lower than fifty percent and thirty percentage respectively, of the minimum of the pay in the pay band plus the Grade pay corresponding to the pre-revised scale from which the pensioner had retired/discharged/invalided out/died including Military Service Pay and ‘X' Group pay, where applicable. Accordingly, rates of minimum guaranteed pension/ordinary family pension for Commissioned Officers were notified under Annexure-II (for pensioners of regular Commission), Annexure-IIA (for pensioners of Military Nursing Services), Annexure-IIB (for pensioners of Territorial Army) and Annexure-IIC (Post-1996 Emergency/Short Service Commission pensioners) of this Ministry’s letter No.17(3)/2010/D(Pen/Policy) dated 15.11.2010 and No 17(4)/2008(1)/D(Pen/Policy)-Vol. VI dated 18.1.2011. The minimum guaranteed pension / family pension in respect of pre-1996 Emergency/Short Service Commission pensioners has, however, been notified vide this Ministry’s letter No 1(1)/2007-D(Pen/Policy) dated 3.9.2009.

2. In order to consider various issues on pension of Armed Forces personnel and Ex-Servicemen, the Government had constituted a Committee of Secretaries headed by Cabinet Secretary. The Committee in its Report have recommended that the minimum guaranteed pension/ordinary family pension of pre-2006 retiree Commissioned Officers pensioners/family pensioners should be determined with reference to minimum of the fitment table for the rank in the revised pay structure issued for implementation of recommendations of Sixth CPC instead of the minimum of the pay band.

3. The above recommendation of the Committee has been accepted by the Government and the President is pleased to decide that with effect from 24th September 2012 the minimum guaranteed pension and ordinary family pension in respect of pre-2006 Commissioned officers pensioners / family pensioners shall be determined as fifty and thirty percent respectively, of the minimum of the fitment table for the rank in the revised pay band as indicated under fitment tables annexed with SAI 2/S/2008 as amended and equivalent instructions for Navy / Air Force and SAI 4/S/2008, plus the Grade pay corresponding to the pre-revised scale from which the pensioner hod retired/discharged/invalided out/died including Military Service Pay, wherever applicable. It has also been decided that with effect from 24th September 2012 the minimum guaranteed pension and ordinary family pension in respect of pre-1996 EC/SSC pensioners / family pensioners shall be determined as fifty and thirty percent respectively, of the pay in the pay band corresponding to the pre-revised pay of Rs 10,500/- (in terms of Para 9(a)(i) of SAI 1/S/2008 as amended
and equivalent instructions for Navy / Air Force) plus the Grade pay of Rs. 5400 and Military Service Pay of Rs. 6000/-.

4. Accordingly, revised tables indicating minimum guaranteed pension/ordinary family pension has been annexed as Annexure-A (for pensioners of Regular Commission other than AMC/ADC/RVC), Annexure-C (for pensioners of TA), Annexure-B (for pensioners of AMC/ADC/RVC), Annexurc-C (for pensioners of TA), Annexure-D (for pensioners of MNS), Annexure-E (for pre-1996 EC/SSC pensioners), Annexure-F (for post-1996 EC/SSC pensioners) and Annexure-G (for post-1996 EC/SSC pensioners of AMC/ADC/RVC) to this letter. Pension Disbursing Authorities are hereby authorized to step up the pension / family pension of the affected pre-2006 pensioners where the existing pension being paid to the pensioners in terms of this Ministry’s above quoted letter dated 11.11.2008 as amended, is less than the rate of pension indicated in above said annexures. Necessary implementation instructions to all concerned shall be issued by Principal CDA (Pensions) Allahobad on receipt of these orders.

5. All other terms and conditions shall remain unchanged.

6. The provisions of this letter shall take effect from 24th September 2012 and no arrears shall be allowed for the past period.

7. This issues with the concurrence of Finance Division of this Ministry vide theirI D No. PC 1/10(12)/2012/FIN/PEN dated 10.01.2013

Hindi version will follow.

Your faithfully
sd/-
Under Secretary to the Government of India

Thursday, January 31, 2013

Revision of pension of pre-2006 penctioners

..

F.No.38/37/08-P&PW(A)
Government of India
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor lok Nayak Bhawan
Khan Market, New Delhi-110 003
Dated the 28th January. 2013

OFFICE MEMORANDUM

Sub:- Revision of pension of pre-2006 pensioners — reg.

The undersigned is directed to say that in pursuance of Government’s decision on the recommendations of Sixth Central Pay Commission, orders were issued for revision of pension/family pensioners vide this Department’s OM No.38/37/08-P&PW(A) dated 1 .9.2008. as amended from time to time.

2. It has been decided that the pension of pre-2006 pensioners as revised w.e.f. 1.1.2006 in terms of para 4.1 or para 4.2 of the aforesaid OM dated 1.9.2008. as amended from time to time, would be further stepped up to 50% of the sum of minimum of pay in the pay band and the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired, as arrived at with reference to the fitment tables annexed to the Ministry of Finance. Department of Expenditure OM No.1/1/2008-IC dated 30th August, 2008. In the case of HAG and above scales, this will be 50% of the minimum of the pay in the revised pay scale arrived at with reference to the fitment tables annexed to the above-referred OM dated 30.8.2008 of Ministry of Finance, Department of Expenditure.

3. The normal family pension in respect of pre-2006 pensioners/family pensioners as revised w.e.f. 1.1.2006 in terms of para 4.1 or para 4.2 of the aforesaid OM dated 1.9.2008 would also be further stepped up to 30% of thc sum of minimum of pay in the pay band and the grade pay corresponding to the pre-revised pay scale in which the Government servant had retired, as arrived at with reference to the fitment tables annexed to the Ministry of Finance. Department of Expenditure OM No.1/1/2008-IC dated 30th August. 2008. In the case of HAG and above scales. this will be 30% of the minimum of the pay in the revised pay scale arrived at with reference to the fitment tables annexed to the above OM dated 30.8.2008 of Ministry of Finance (Department of Expenditure).

4. A revised concordance table (Annexure) of the pre-1996, pre-2006 and post 2006 pay scales/pay bands indicating the pension/family pension (at ordinary rates) payable under the above provisions is enclosed to facilitate payment of revised pension/family pension.

5. The pension so arrived ai in accordance with para 2 above and indicated in Col. 9 of Annexure will be reduced pro-rata, where the pensioner had less than the maximum required service for full pension as per rule 49 of the CCS (Pension) Rules,1972 as applicable before 1.1.2006 and in no case it will be less than Rs.3.500/- p.m.

6. The family pension at enhanced rates (under sub rule (3)(a) of Rule 54 of the CCS (Pension) Rules, 1972) of pre-2006 pensioners/family pensioners revised w.e.f. 1.1.2006 in terms of para 4.1 or this Department’s OM No.1/3/2011-P&PW(E) dated 25.5.2012 would be further stepped up in the following manner:

(I) In the case of Government servants who died while in service before 1.1.2006 and in respect of whom enhanced family pension is applicable from the date of approval by the Government, i.e. 24.9.2012, the enhanced family pension will be stepped up to 50% of the sum of minimum of pay in the pay band and the grade pay corresponding to the pre-revised pay scale in which the Government servant had died, as arrived at with reference to the fument tables annexed to the Ministry of Finance, Department of Expenditure OM No.1/1/2008-IC dated 30th August. 2008. In the case of HAG and above scales, this will be 50% of the minimum of the pay in the revised pay scale arrived at with reference to the fitment tables annexed to the above-referred OM dated 30.8.2008 of Ministry of Finance, Department of Expenditure.

(ii) In the case of a pensioner who retired before 1.I.2006 and in respect of whom enhanced family pension is applicable from the date of approval by the Government. i.e. 24.9.2012, the enhanced family pension will be stepped up to the amount of pension as revised in terms of para 2 read with para 5 above. In case the pensioner has died before from the date of approval by the Government, i.e. 24.9.2012, the pension will be revised notionally in terms of para 2 read with para 5 above. The amount of revised enhanced family pension will, however, not be less than the amount of family pension at ordinary rates as revised in terms of para 3 above.

7. In case the pension consolidated pension/family pension/enhanced family pension calculated as per para 4.1 of OM No.38/37/08-P&PW(A) dated 1.9.2008 is higher than the pension/family pension calculated in the manner indicated above, the same (higher consolidated pension/family pension) will continue to be treated as basic pension/family pension.

8. All other conditions as given in OM No.38/37/08-P&PW(A) dated 1.9.2008, as amended from time to time shall remain unchanged.

9. These orders will take effect from the date of approval by the Government, i.e. 24.9.2012. There will be no change in the amount of revised pension/family pension paid during the period 1.1.2006 and 23.9.2012, and, therefore, no arrears will be payable on account of these orders for that period.

10. In their application to the persons belonging to the Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.

11. All the Ministries/Departments are requested to bring the contents fo these orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them on a top priority basis. All pension disbursing offices are also to prominently display these orders on their notice boards for the benefit of pensioners.

12. Hindi version will follow.

sd/-
(Tripti P.Ghosh)
Director

Union Budget- 2013-2014

Union Budget 2013-14: Defence and welfare spending to be slashed

 
 
P Chidambaram
Finance Minister P Chidambaram has staked his reputation on lowering the deficit to 5.3 percent of GDP to improve the investment climate.

NEW DELHI: Finance minister P Chidambaram is putting welfare, defence and road projects on the chopping block in a last-ditch attempt to hit a tough fiscal deficit target by March, risking short-term economic growth and angering cabinet colleagues.

  1. The cuts will reduce spending by about 1.1 trillion Indian rupees ($20.6 billion) in the current financial year, some 8 percent of budgeted outlay, or roughly 1 percent of estimated gross domestic product, two senior finance ministry officials and a senior government adviser told Reuters.It is the first time the scale of the cuts and details of where the axe will fall have been made public, with officials revealing startling details about delays to arms purchases and belt-tightening for politically sensitive rural welfare schem in an election year.


Thursday, January 24, 2013

Pre 2006 Pensioners-Before 6th CPC

Pre 2006 Pensioners : Benefits of 6th CPC to Pre 2006 Pensioners - reg.

Whether the Central Government employees, who retired before 2006 have been deprived off the benefits of Sixth Pay Commission as recommended by the Central Pay Commission..?

The Minister of Personnel, Public Grievances and Pensions Shri.V.Narayanasamy answered in the Parliament to the question above quoted on 19th December 2012 as follows...

The orders for implementation of the recommendations of VIth Central Pay Commission for revision of pension of pre-2006 retirees were issued vide Department of Pension & Pensioners’ Welfare OM No.38/37/08-P&PW(A) dated 1.9.2008. As per para 4.1 of this OM, the pension/family pension of existing pre-2006 pensioners/family pensioners will be consolidated w.e.f. 1.1.2006 by adding together 

(i) The existing pension/family pension 

(ii) Dearness pension, where applicable 

(iii) Dearness Relief @ 24% of basic pension/family pension plus dearness pension and 

(iv) Fitment weightage @40% of the existing pension/family pension. In Para 4.2 of this OM, it is stated that fixation will be subject to the provision that the revised pension, in no case, shall be lower than fifty per cent of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. These orders also provided for immediate payment of arrears on revision of pension by the pension disbursing banks. Subsequently, on some doubts being raised in this regard, Department of Pension & Pensioners’ Welfare issued an OM No.38/37/08-P&PW(A) dated 3.10.2008 and 14.10.2008 inter alia clarifying that the pension calculated at fifty per cent of the minimum of pay in the pay band plus grade pay under Para 4.2 of OM No.38/37/08-P&PW(A) would be calculated at the minimum of the pay in the pay band (irrespective of the pre-revised scale of pay) plus the grade pay corresponding to the pre-revised pay scale. The pension will be reduced pro rata, where the pensioner had less than the maximum required service for full pension as per rule 49 of the CCS (Pension) Rules, 1972 as applicable on 1.1.2006 and in no case it will be less than Rs.3,500/-p.m.

Based on some petitions filed in the Central Administrative Tribunal by pre-2006 retirees, Hon’ble Tribunal held that the clarification issued vide OM No.38/37/08-P&PW(A) dated 3.10.2008 and 14.10.2008 were not in conformity with the recommendations of the Sixth Central Pay Commission and the O.M. dated 1.9.2008. Central Administrative Tribunal directed to re-fix the pension of all pre-2006 retirees w.e.f. 1.1.2006, based on the resolution dated 29.08.2008 and in the light of the observations made in the judgement dated 1.11.2011 of the Hon’ble CAT. 

The Government has filed a Writ Petition in Delhi High Court challenging the judgement dated 1.11.2011 of the Hon’ble CAT. The matter is subjudice. 

Thursday, January 17, 2013

HOWITZERS - DRDO -OFB

New Delhi: The DRDO is in talks with major private and public sector firms like Tata, Mahindra, L&T and BEL for developing an indigenous advanced artillery howitzer for the Army.
The premier defence research agency recently held an interaction with the stakeholders to explore the feasibility of involving Indian industries in the development of Advance Towed Artillery Guns System (ATAGS), DRDO officials said.

“Objective of the interaction was to explore and encourage participation of Indian industries in the ATAGS project and generate a base for its design, development, manufacturing and integration,” one of the officials said.
DRDO is currently developing the 155 mm, 52 calibre ATAGS at the Pune-based Armament Research and Development Establishment (ARDE).
Some of the major private and public sector firms which participated in the interaction were Tata Power, L&T, Bharat Forge, Mahindra Defence System, BHEL and BEL, the officials said.
Improved firepower at longer ranges, higher accuracy and enhanced survivability are some of the primary requirements for this gun system, they said.
“Efforts are being made to develop new technologies for weapon platforms, automation and control systems, recoil management, materials to achieve improved weapon performance,” another official said.
After the Bofors gun controversy in 1986, no new gun has been procured by the army for its artillery units.
The army is also hoping to induct the Bofors guns manufactured indigenously by the Ordnance Factory Board at its facilities in Jabalpur.

CBI NET

KOCHI: Two senior officials of state-owned Steel & Industrial Forgings Limited (SIFL) are in the CBI net for allegedly colluding with Indian Ordnance Factory officials and accepting kickbacks in a deal to supply parts of Arjun battle tanks.

Along with M Shanavaz, SIFL MD, and Valsan, senior manager, the CBI has registered a case against 42-year-old Subi Malli, owner of Subhishi Impex, who allegedly mediated the deal.

The Kerala government has already suspended Shanavaz and Valsan. A separate probe has also been ordered.

The CBI, meanwhile, has placed another vendor, Mysore-based AMW-MGM Forgings Pvt Ltd, under the scanner.

CBI officials said Subi's links with IOFS officials came to light after the contract deals for Arjun tank's road wheel arm (which connects the tanks' wheels with mainframe) and flanches. Subi, sources said, managed to get new tenders in favour of SIFL and AMW-MGM from IOF, Medak, and Heavy Vehicles Factory, Avadi, for supply to these parts.

"Contracts for road wheel arms were awarded to SIFL at Rs 8,500 per piece and to AMW-MGM at Rs 7,000/piece. She got this tender cancelled and a fresh tender revising prices to Rs 13,500 (to SIFL) and Rs 14,000 (to AMW-MGM) were awarded,'' a CBI source told TOI. "She was given 12% as kickback. IOFS and SIFL officials also received kickbacks," he

Tuesday, January 8, 2013

FIXATION OF PAY

Fixation of pay on promotion to a post carrying higher duties and responsibilities but carrying the same grade pay
No.10/02/2011.E.III/A
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 7th January, 2013
OFFICE MEMORANDUM
Subject:- Fixation of pay on promotion to a post carrying higher duties and responsibilities but carrying the same grade pay.
The undersigned is directed to invite an attention to the provisions contained in Rule 13 of the CCS(RP) Rules, 2008, which provides for the method of fixation of pay on promotion on or after 1.1.2006 in case. inter-alia, of promotion from one grade pay to another. The Rule provides for fixation of pay by way of addition of one increment equal to 3% of the sum of the pay in the pay band and the existing grade pay (rounded off to the next multiple of 10) to the existing pay in the pay band and then fixing the pay in the promotional post as per the procedure prescribed therein.
2. In terms of this Ministry’s OM No. 169/2/2000-IC dated 24.11.2000, dealing with the situation whereby both the feeder and the promotional grades were placed in the identical revised pay scales based on the recommendations of the 5th Central Pay Commission, it was provided, inter-alia, that only in cases where it was not found feasible to appropriately restructure cadres in question on functional, operational and administrative considerations, extension of the benefit of fixation of pay under FR 22(I)(a)(1) could be considered on the merits of each case, provided all the conditions precedent for the grant of this benefit were fully satisfied and promotion to the post in question actually involved assumption of higher responsibilities.
3. In view of the provisions which existed prior to 1.12006., the matter has been considered and the President is pleased to decide that in cases of promotion from one post to another where the promotional post carries the same Grade Pay as the feeder post, the fixation of pay in such cases will be done in the manner as prescribed in Rule 13(i) of the CCS(RP) Rules, 2008, provided fixation of pay in such cases was done prior to 1.1.2006 in terms of this Ministry’s aforesaid OM No.169/2/2000-IC dated 24 11.2000.
4. In so far as the persons serving the Indian Audit and Account Department are concerned, these orders are issued in consultation with the Comptroller & Auditor General of India.
5. The Hindi version of this OM will follow.
sd/-
(Amar Nath Singh)