No Privatisation PPP or FDI in Railways and Defence Establishments

Minutes of Standing Committee Meeting Held on 3.5.2017 between NC JCM Staff Side and the Official Side under the Chairmanship of Secretary

S. No. 4 – No Privatisation PPP or FDI in Railways and Defence Establishments

Ministry of Railways had vide their O.M. dated 14.02.2017 intimated that following a meeting between Railway Minister and the highest’ office-bearers of AIRF and NFIR on 18.12.2014 on FDI and other issues, a Standing Committee has been set up to discuss and suggest ways of generating resources towards improving the financial health of Indian Railways. Following two more meetings on 20.07.2015 and 29.071015, the terms of reference have been expanded by adding the words “and productivity of Indian Railways”.

Members of Staff-Side rebutted that the reply of Ministry of Railways was not correct as the committee is not looking into the point raised in this agenda item. At this point, Chairman asked the representative of Ministry of Railways to share the terms of reference of the said Committee with the members of Staff Side.

On the point related to Ministry of Defence (MoD), the representative of the Ministry shared a Note on the ‘Status of FDI in Defence Sector’. As per the Note, defence manufacturing sector was opened for the first time in 2001 for 100% private sector participation including FDI. Ire 2001, the FDI upto 26% was allowed under the Government route (FIPB approval). Since then, the policy has been revised several times. The FDI Policy for defence sector was last revised in June 2016. As per the revised policy, FDI upto 49% is allowed under automatic route and beyond 49%, under Government route, wherever it is likely to result in access to modern technology or for other reasons to be recorded. FDI policy for defence is applicable to defence industry subject to Industrial License under the Industries(Development & Regulation) Act, 1951. The Policy is also applicable for manufacturing of small arms and ammunition under the Arms Act, 1959.

He clarified further that this sector badly needs capital investment and infusion of technology for which foreign investment can play a significant role. Investment promotion and technology transfer being of prime concern, Government believes that the amendments made in the policy could be the most trusted route to technology transfer which would help in increasing the defence production base and providing the much-needed impetus to self-reliance and indigenisation in defence sector.

Members of the Staff-Side stated that the present Policy is likely to impact the existing Defence Establishments like DRDO and Ordnance Factories. The recent decision of DDP to outsource 143 products produced by ordnance factories would affect the existence of the organization and its employees. This is against the assurance given by the Ministry of Defence that the products already being produced by ordnance factories would not be outsourced and, for any new products, ordnance factories would be given first preference. However all these major policy decisions were taken without any discussion with the Staff Side and without hearing their view points.

It was decided that the Ministry of Defence would be requested to hold discussion with the Staff side on the subject matter and accordingly the issue would be referred to Ministry of Defence.

It was decided that the item may be treated as closed.

{Action: M/o Railways, M/o Defence}

Click to view agenda discussion points

S.No. 2  – Include Grameen Dak Sewaks within the ambit of 7th CPC

S.No. 3 – Settle all anomalies of the Sixth Central Pay Commission

S.No. 4 – No Privatisation PPP or FDI in Railways and Defence Establishments

S.No. 5 – No corporatization on Postal Services

S. No. 6 – No ban on recruitment/creation of posts

S.No. 7 – Scrap PFRDA Act and reintroduce the defined benefit statutory pension scheme

S.No. 8 – No outsourcing, contractorisation, privatisation_of governmental function

S.No. 9 – Regularise the Existing Daily Rated/Casual and Contract Workers

S.No. 10 – Revive JCM functioning at all levels as an effective negotiating forum for settlement of demands of the central Government employees

S.No. 11 – Remove the arbitrary ceiling on compassionate appointments

S.No. 12 – Ensuring five promotions in the service career

S.No. 13 – Non-implementation of the decision taken in the 46th National Council (JCM) Meeting

S.No. 14 – Reduction of one day Productive Linked Bonus PLB to the employees of OFB & DGQA

S.No. 15 – Grant of one time relaxation to the Central Government employees ho have availed LTC-80

S.No. 16 – Grant of House Rent Allowance to the employees who have vacated government quarters

S.No. 17 – Restoration of interest-free advances withdrawn by the Government based on 7th CPC recommendations

S.No. 19 – Grant of 3rd MACP in GP 4600 to the Master Craftsmen (MCM) of Defence Ministry

S. No. 20 – Carrying forward of Earned Leave by Defence Industrial Employees on transfer

S.No. 21 – Reimbursement of actual medical expenditure incurred by the employees in recognized hospitals

S.No. 22 – Dental Treatment in private hospitals recognized under CGHS CS(MA) Rules, 1944 for CS(MA) beneficiaries

S.No. 23 – Review of the income criteria for the dependent parents of government employees

S.No. 26 – Removal of ambiguity in fixation of pay of re-employed ex-servicemen

S.No. 28 – Extension of the benefit of bonus calculation ceiling enhancement of Rs. 7000/- to Gramin Dak Sevaks (GDS)

S.No. 29 – Regularize the services of casual labourers by absorbing them against vacant posts of MTS as one time measure

S.No. 30 – Fill up all vacant posts including promotional posts in a time bound manner