Cabinet approves new pay and pension benefits to MTNL employees

The union cabinet today approved pay and pension benefits to all employees of Mahanagar Telephone Nigam Limited (MTNL) who have opted for the combined service benefits, involving an additional expenditure of over Rs500 crore per annum.

This will bring benefits to some 43,000 employees of Mahanagar Telecom Nigam Ltd (MTNL) in the erstwhile Group A, B, C and D categories who have opted for combined service on a par with the benefits available to such employees of Bharat Sanchar Nigam Ltd (BSNL).

Accordingly, the cabinet decided to make necessary amendments to the Central Civil Services (Pension) Rules in respect of government pension liability previously discharged by MTNL as also a change in the methodology in pension contribution up to 31 December 2005 on the maximum of the IDA pay-scales and with effect from 1 January 2006 on the actual pay drawn in the IDA pay-scales.

Adjustments in respect of government's pension liability with regard to MTNL employees will be done within three months, an official release said today.

This would help resolve the long pending MTNL pension issue. The proposal entails an estimated recurring expenditure of approximately Rs500 crore per annum besides adjustments in respect of government pension liability previously discharged by MTNL.

The decision would benefit approximately 43,000 MTNL employees in Delhi and Mumbai.

The CCEA also approved the proposal for providing non-plan budgetary support of Rs116.86 crore for liquidation of statutory dues (provident fund, gratuity, pension, Employees State Insurance and bonus) and salary and wages from 1 April 2013 to 31 August 2013 in respect of 11 central public sector enterprises (CPSEs), namely, Hindustan Cables Ltd, HMT Machine Tools Ltd, HMT (Watches) Ltd, HMT (Chinar Watches) Ltd, Nagaland Pulp and Paper Co Ltd, Triveni Structurals Ltd, Tungbhadra Steel Products Ltd, Nepa Ltd, HMT Bearings Ltd, Hindustan Photo Films Limited and Tyre Corporation of India Ltd.

The cabinet is yet to approve revival or closure plans of Hindustan Cables Limited, Triveni Structurals Ltd, HMT (Watches) Ltd, HMT (Chinar Watches) Ltd, Hindustan Photo Films Ltd and HMT Machine Tools Ltd.

Revival plans of Nepa Ltd and Nagaland Pulp & Paper Co Ltd have recently been approved while revival plans of HMT Bearings Ltd and Tungbhadra Steel Products Ltd are yet to materialise while disinvestment of Tyre Corporation of India Ltd is under process.

The working of the PSUs has been hamstrung by the issues like non-settlement of liabilities like non-payment of salaries, causing serious hardship not only to the employees of the companies but also adversely affecting the day-to-day operation of the companies resulting in further deterioration of their performance.

Payment of outstanding dues of salary and wages is expected to mitigate the hardships of the employees thereby motivating them for better output and prepare them to achieve the goal of revival/re-structuring of the companies.

In addition, clearance of outstanding statutory dues (Provident Fund, Gratuity, Pension, Employees State Insurance) would result in fulfilment of statutory obligations, according to a CCEA release.