No.F.18/15/2020-PPD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division

512, Lok Nayak Bhawan, New Delhi
Dated the 25th June, 2020

OFFICE MEMORANDUM

Subject: Clarification on the applicability of OMs dated 13.05.2020.

Attention is invited to the two OMs No.F.18/4/2020-PPD dated 13.05.2020 regarding Performance Security in terms of Rule 171 of GFRs 2017 and Force Majeure Clause issued by this Department in the time of COVID-19 pandemic (copies attached). A Doubt has arisen as to whether the Central Public Sector Undertakings (CPSUs) are covered under the term “Government Agencies” referred in these OMs. In this regard it is hereby clarified that- these two OMs are applicable not only to all Central Ministries/ Departments, their attached and subordinate offices, Autonomous Bodies covered by GFR, 2017 but also to Central Public Sector Undertakings (CPSUs) subject to issue of any separate orders by Department of Public Enterprises in this regard.

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(Kotluru Narayana Reddy)
Deputy Secretary to the Govt. of India

Source: DoE

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22 NOV 2018

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the extension of the term of the Commission to examine the issue of Sub-categorization of Other Backward Classes in the Central List for six months beyond 30th November, 2018 and till 31st May 2019.

The Commission has held extensive meetings with the stake holders including the State Governments, the State Backward Classes Commissions, various community associations and general public belonging to various Backward Classes and Commissions and also obtained records, caste-wise, of OBCs admitted in higher educational institution as well as similar caste-wise data of recruits in Central Departments, Central Public Sector Undertakings, Public Sector Banks & Financial Institutions.

Based on the emanating information from the data as processed and analyzed, the Commission has expressed that a round of discussion with the States and their Backward Classes Commission was required before finalizing the sub-categorized lists and the Report.

PIB

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The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to the norms for establishing equivalence of posts in Government and posts in PSUs, PSBs etc. for claiming benefit of OBC reservations. This addresses an issue pending for nearly 24 years. This will ensure that the children of those serving in lower categories in PSUs and other institutions can get the benefit of OBC reservations, on par with children of people serving in lower categories in Government. This will also prevent children of those in senior positions in such institutions, who, owing to absence of equivalence of posts, may have been treated as non Creamy Layer by virtue of wrong interpretation of income standards from cornering government posts reserved for OBCs and denying the genuine non creamy layer candidates a level playing field.

The Union Cabinet also approved the increase in the present income criterion of Rs. 6 lakh per annum for applying the Creamy Layer restriction throughout the country, for excluding Socially Advanced Persons/Sections (Creamy Layer) from the purview of reservation of Other Backward Classes (OBCs). The new income criterion will be Rs. 8 lakh per annum. The increase in the income limit to exclude the Creamy Layer is in keeping with the increase in the Consumer Price Index and will enable more persons to take advantage of reservation benefits extended to OBCs in government services and admission to central educational institutions.

These measures are a part of the Government’s efforts to ensure greater social justice and inclusion for members of the Other Backward Classes. The Government has already introduced in Parliament, a bill to provide Constitutional status to the National Commission for Backward Classes. It has also decided to set up a Commission, under section 340 of the Constitution, to sub categorize the OBCs, so that the more backward among the OBC communities can also access the benefits of reservation for educational institutions and government jobs. All these decisions, taken together, are expected to ensure greater representation of OBCs in educational institutions and jobs, while also ensuring that the more under-privileged within the category are not denied their chance of social mobility.

Background:

In its judgment dated 16.11.1992 in WP(C) 930/1990 (IndraSawhney case) the Supreme Court had directed the Government to specify the basis, for exclusion of socially and economically advanced persons from Other Backward Classes by applying the relevant and requisite socio-economic criteria.

An Expert Committee was constituted in February 1993 which submitted its report on 10.03.1993 specifying the criteria for identification of socially advanced persons among OBCs i.e. the Creamy Layer. The report was accepted by the then Ministry of Welfare and forwarded to DoPT which issued an OM dated 08.09.1993 on exclusion from the Creamy Layer.

The OM of 08.09.1993 specifies six categories for identifying Creamy Layer (a) Constitutional/Statutory post (b) Group ‘A’ and Group ‘B’ Officers of Central and State Governments, employees of PSUs and Statutory bodies, universities, (c) Colonel and above in armed forces and equivalent in paramilitary forces (d) professionals like Doctors, Lawyers, Management Consultants, Engineers etc. (e) Property owners with agricultural holdings or vacant land and/or buildings and (f) income/wealth tax asessee.

The OM further stipulates that the said parameters would apply mutatis mutandis to officers holding equivalent or comparable posts in PSUs, Banks, Insurance Organizations, Universities, etc. and Government was required to determine equivalence of positions in these organizations with those in Government.

Pending the equivalence to the established in these institutions Income criteria would apply for the officers in these Institutions.

However, this exercise of determining the equivalence of posts in Government and posts in PSUs, PSBs etc. had not been initiated. The determination of equivalence of posts has been thus pending for almost 24 years.

The matter of formulating equivalence has since been examined in detail. In PSUs, all Executive level posts i.e. Board level executives and managerial level posts would be treated as equivalent to group ‘A’ posts in Government and will be considered Creamy Layer. Junior Management Grade Scale-1 and above of Public Sector Banks, Financial Institutions and Public Sector Insurance Corporations will be treated as equivalent to Group ‘A’ in the Government of India and considered as Creamy Layer. For Clerks and Peons in PSBs, FIs and PSICs, the Income Test as revised from time to time will be applicable. These are the broad guidelines and each individual Bank, PSU, Insurance Company would place the matter before their respective board to identify individual posts.

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