JOINING MECON Establishment Manual

ESTABLISHMENT MANUAL
&
SERVICE RULES
MECON LIMITED
(A Govt. of India Enterprises)
RANCHI – 834002, JHARKHAND (INDIA)
UPDATED UPTO 05th August, 2015
1
PREFACE
MECON, an engineering, consultancy and contracting organization having multi

units across the country, maintains codified rules and policies governing service
conditions of employees in a documented manner known as “MECON Establishment
Manual and Service Rules”. From its inception, however, various editions incorporating
changes and amendments have taken place, which have been published from time to
time. The last revised edition of ‘Establishment Manual’ was published in June 2006
after obtaining approval of the Board of Directors. Since then, a number of
changes/amendments in the policies and rules have been made. Updation, review and
simplification of the existing rules and policies has therefore become imperative. The
last updated edition of the Manual was published in September, 2009. However,
necessary amendments/additions/deletions as approved by Board and various
Administrative Orders have been incorporated till 01.05.2015.
This updated edition of Establishment Manual and Service Rules is being brought
out comprising 31 chapters containing various rules/policies/information which make it
more user-friendly and easy to refer. The rules/policies/information placed in the
Manual are basically updated consolidation of existing office orders/
circulars/instructions issued by the Management/Government from time to time which
are duly approved by the Board of Directors of the Company.
MECON Limited
RANCHI
25th May, 2015 [[
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MECON LIMITED
ESTABLISHMENT MANUAL/SERVICE RULES
CONTENTS
CHAPTER PAGE
SUBJECTS
NO. NO.
I General. 4-6
II Recruitment, Probation and Training. 7-12
III Working Hours, Holidays and Allied Matters. 13-15
IV Conduct Rules. 16-26
V Discipline and Appeal Rules. 27-40
VI Leave Rules. 41-50
VII Medical Facilities. 51-63
VIII Termination of Service. 64-66
IX Pay, Dearness Allowance and Annual Increment. 67-75
X Allowances. 76-101
XI Grant of Advance to Employees. 102-133
XII Leave Travel Concession Rules. 134-144
XIII Voluntary Retirement Scheme. 145-146
XIV Transfer and Benefits. 147-153
XV Leave Encashment Scheme. 154-155
XVI Educational Facilities. 156-157
XVII Forwarding of Applications of Employees for outside Employment. 158-159
XVIII Incentive Scheme for Promoting Small Family norms. 160-161
XIX Scholarship Scheme to the children of employees. 162-163
XX Incentive Scheme for National and All India award winners. 164-165
XXI Holiday Homes. 166-167
XXII Long Service Award Scheme. 168-169
XXIII Scholarship Scheme for Scheduled Caste/Scheduled Tribe (SC/ST) 170-174
under Graduate Engineering Students.
XXIV Group Insurance Scheme. 175-178
XXV Memento to Retiring Employees. 179-179
XXVI Ex-Gratia Assistance towards Funeral Expenses. 180-182
XXVII Gratuitous Relief Fund. 183-184
XXVIII Scheme for taking Houses on Company/Individual Lease for 185-189
Residential purpose.
XXIX Deputation Terms for Training in India & Abroad. 190-193
XXX Incentive Scheme for Promotion of Progressive use of Hindi in day 194-226
to day Office Work.
XXXI Incentive Scheme for Acquiring Additional Educational/Professional 227-232
Qualifications.
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CHAPTER- I
GENERAL
1.1 SCOPE AND APPLICATION:
1.1.1 These rules shall be known as the MECON LIMITED Employees Service
Rules and shall hereinafter be referred to as “Service Rules”.
1.1.2 These Service Rules are to define the service conditions of the employees
of MECON LIMITED for easy reference, understanding and
implementation.
1.1.3 These Service Rules are to ensure that the employees of MECON LIMITED
are given reasonable benefits consistent with Government Policy and
statutes as applicable.
1.1.4 These Service Rules are to regulate the conduct, discipline and allied
matters of the employees of MECON LIMITED.
1.1.5 These Service Rules shall apply to all employees, whether permanent or
temporary, who are in the whole time employment of MECON LIMITED,
unless otherwise provided by the terms of any contract or agreement or
letter of employment. Employees on deputation/ foreign service from the
Government or Public Sector Undertaking shall also be covered by these
rules unless the terms of deputation/ foreign service otherwise provide.
1.1.6 These Service Rules do not apply to part-time or casual/daily rated
employees, who will be governed by special terms of appointment in each
case.
1.1.7 These Service Rules contains company's policies/schemes on Employees'
welfare, compensation, motivation and human resource policy etc. and
aim at proper understanding and its implementation.
1.2 DEFINITIONS:
In these Service Rules, unless there is anything repugnant in the subject
or context, the following definitions will hold good:
1.2.1 “COMPANY” means MECON LIMITED.
1.2.2 “BOARD” means the Board of Directors of the company.
1.2.3 “CMD” means the Chairman-cum-Managing Director of the company.
1.2.4 “DIRECTOR” means a Director of the company.
1.2.5 “EXECUTIVE EMPLOYEE” means an employee holding a post in the
grade of ` 12600-3%-32500/- (E-0) and above (scale is effective from
01.01.2007).*
1.2.6 “NON–EXECUTIVE EMPLOYEE” means an employee holding a post in
the Grade S1 to S-10 and Sl-1 to Sl-4.( Amended vide Tripartite Wage
Agreement in respect of wage revision of non-executive regular
employees signed on 15.04.2015.)
* Amended vide Office Order No. 11.73.3/8007/2009 dated 24.11.2009 in respect of wage
revision of executives w.e.f. 01.01.2007.
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1.2.7 “SUPERVISORY EMPLOYEE” means an employee whose function
includes supervision of the work of other employees.
1.2.8 “COMPETENT AUTHORITY” means in relation to exercise of any power
of the Board, CMD, Director, or any other person to whom the power has
been delegated in that behalf.
1.2.9 “APPOINTING AUTHORITY” means the authority empowered to make
appointment to the relative category of grade or post and in respect of an
existing employee, the authority empowered to make appointment in the
category or grade of post, which he for the time being holds.
1.2.10 “DISCIPLINARY AUTHORITY” means the authority competent to
inquire into and/or appoint any such inquiring authority for the said
purpose and to impose penalty.
1.2.11 “EMPLOYEE” means any person appointed by the company to any
service or post in connection with the affairs of the company but excludes
a casual, part-time and daily rated employee.
1.2.12 “PERMANENT EMPLOYEE” means a person who has been confirmed in a
permanent vacancy on satisfactory completion of probation after
appointment up to the age of superannuation as per rules.
1.2.13 “TEMPORARY EMPLOYEE” means an employee engaged by the

company for a limited period or for work of temporary nature.
1.2.14 “PAY” means the amount drawn monthly by an employee as basic pay in
the grade, applicable to the post held by him substantially or in an
officiating capacity, deputation pay, personal pay, special pay, non-
practicing pay, and any other emoluments which may be classified as pay
by the company or statutes.
1.2.15 “FAMILY” means the employee's spouse [wife/husband (one only)],
legitimate children and step - children or children adopted under the
personal law of the employee concerned, wholly dependent on the
employee. For the purpose of the Conduct Rules, the term "family" shall
also be deemed to include wholly dependent person related by blood or
marriage, to the employee or employee's wife or husband. This definition
shall be applicable to all rules, facilities and service conditions unless
otherwise specifically defined in the respective rules, facilities and service
conditions of the company.
1.2.16 “AUTHORIZED MEDICAL OFFICER” means Medical Officer
appointed/nominated/retained by the company for the purpose of
rendering medical attendance to the employees and their eligible
dependent family members.
1.2.17 “REGISTERED MEDICAL PRACTITIONER” means one qualified in the
Western System of medicine not below the MBBS standard and registered
in the appropriate schedule of the State/Union Territory.
The term "Qualified" in respect of the Medical Practitioner in Ayurvedic &
Unani systems of medicines would mean persons possessing recognized
medical qualifications as included in the Schedule II, III & IV of the Indian
Medicine Central Council Act, 1970 as amended from time to time, and in
case of Homeopathy, it would mean persons possessing the recognized
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medical qualifications as notified in Schedule II of the Homeopathy
Central Council Act, 1971 as amended from time to time.
1.2.18 “MONTH” means a month reckoned according to English Calendar.
1.2.19 Words importing masculine gender shall also include feminine gender and
vice-versa.
1.2.20 Words importing singular number shall also include plural number and
vice-versa.
1.3 INTERPRETATION:
1.3.1 The company reserves the right to interpret these Service Rules and any
supplementary rules or orders issued thereunder and such interpretation
shall be final and binding upon all employees and every person concerned
thereto.
1.3.2 In all matters of dispute, interpretation of the rules shall be based on the
English version of the Service Rules.
1.4 MODIFICATION:
The company reserves the right to modify, cancel or amend any or all of
these Service Rules or any supplementary rules or orders issued in
connection with these Service Rules.
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CHAPTER - II
RECRUITMENT, PROBATION AND TRAINING
2.1 RECRUITMENT:
2.1.1 OBJECTIVE:
(i) To plan the manpower requirement & budget and the requirement of the
requisite human resources with necessary qualifications, skills, aptitude,
merit and suitability in accordance with the organizational requirements.
(ii) To ensure that the company attracts and retains the best of personnel
available in each of its areas of functioning, as it is the cumulative results
in this area concerning satisfaction of company needs for personnel both
in qualitative and quantitative measures which influences the future of
the organization and pre-determines the future health of the enterprise.
(iii) To focus on the placement of employees in jobs in which they are best
fitted physically, mentally and temperamentally and have strong
expectations of being well adjusted to their work and to the working
environment.
(iv) To systematically build up a model system for the guidance of and

emulation by other enterprises both in public and private sectors.
2.1.2 GENERAL:
(i) For the purpose of these rules, “sanctioned post”, means a post, which
is duly sanctioned by the Competent Authority.
(ii) “Vacancy” means a sanctioned post against which no person has been
appointed or no person is in position at the given time.
(iii) No recruitment shall be done except against a sanctioned post and except
against a vacancy in the sanctioned post. Before initiating action for
recruitment, the Competent Authority shall clear filling of the vacancy.
2.1.3 SOURCES OF RECRUITMENT:
Post/vacancies under the company shall be filled in by resorting to one of
the following:
(a) Direct Recruitment:

(i) Outside candidates through Employment Exchange as per the provisions
of the Employment Exchange (CNV) Act 1955 and/or by advertisement in
the News paper/Employment News.
(ii) By engagement of Management Trainees selected on all India basis
directly or through SAIL/outside approved agency and their subsequent
absorption in the prescribed scales of pay shall be made in accordance
with the approved scheme.
(iii) Through Campus Recruitment from approved Engineering/ Professional
Institutes.
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(b) Internal Recruitment:
The internal candidates belonging to different disciplines who meet the
prescribed requirement for the post as indicated in the rules/ concerned
circulars.
For internal recruitment the candidates will be subjected to test/or

interview and their general performance would also be taken into
consideration based on their Personal Records and CCRs.
(c) Deputation:
By taking persons on deputation from Central/State Government Public
Sector Enterprises or other Enterprises.
(d) Promotion:
By promoting existing employees of the company to the higher post
subject to meeting the prescribed requirement and suitability.
2.1.4 Recruitment to Executive Post:
(a) Injection Points:
Recruitment to Executive posts, technical and non-technical, shall be
normally done at the E-0/E-1 grade. However, recruitment to ex-cadre
and stray posts may be done at higher grades.
(b) Recruitment for all executive posts shall be done on all India basis.
Advertisements for vacant posts shall appear in Employment News/
important news-papers of the country. For this purpose, list of papers
shall be approved from time to time by the Competent Authority.
(c) Selection of suitable candidates for engagement as Management Trainees
may also be done from reputed Engineering/Management Institutes
through campus interviews.
(d) As a general rule recruitment by direct appointment for filling up newly
created posts will be made provided suitable candidates are not available
in the company.
2.1.5 Recruitment to Non- Executive Posts:
Injection Points:
Recruitment to non-executive posts, both technical and non-technical,
shall be generally done at the lowest grade for the particular cadre/grade.
Areas of Recruitment:
For all non-executive posts, recruitment shall be done from the local
Employment Exchange/Central Employment Exchange, as the case may
be, depending on the instructions issued by the Government from time to
time. However, in case the Employment Exchanges are not in a position
to forward suitable candidates, then recruitment shall be done by open
advertisements. Advertisements for vacant posts shall appear in
Employment News/important newspapers of the region. For this purpose
an approved list of newspapers shall be notified from time to time by the
Competent Authority.
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2.1.6 Preference in Recruitment:
(a) Expropriated Land Owners:
Individuals whose lands are acquired for setting up of office
premises/residential housing colony etc. of the company and who are
consequently deprived of their livelihood are given due consideration in
employment in terms of the guidelines issued by the Govt. of India or the
terms of agreement with the concerned government, for acquisition of
land, as the case may be.
(b) Dependents of Deceased Employees:
A dependent of deceased employee is eligible for special consideration for
appointment in the company against a suitable vacancy. This
consideration is admissible even if the name is not sponsored by the
Employment Exchange or if one has not applied against any
advertisement, provided the applicant is otherwise eligible. Non–existence
of an earning member in the family of the deceased employee is an
important consideration. Intimation is however given to the Local
Employment Exchange, in such cases.
(c) Outstanding Sportsmen:
Consistent with the company's objective of all round development of
human personality and to provide a fillip to the activities and programmes
of the company in the area of sports, “Sportsmen” who have
represented the country and/or a state in recognized
championship/tournament at national and/or international levels during
the two years immediately preceding the date of appointment are given
consideration. The number of such sportsmen and their area of
specialization for recruitment shall be decided by the Competent Authority
from time to time.
2.2 RESERVATION OF POSTS:
Direct recruitment to posts in the company shall be subject to policy on
reservation for Scheduled Castes and Scheduled Tribes, OBC, staff of the
Defence Service and Handicapped persons etc. as may be determined by
Government of India from time to time in respect of Public Sector
Enterprises/Undertakings.
2.3 MEDICAL FITNESS:
2.3.1 The appointment of every person in the company shall be subject to him
being certified medically fit to discharge his duties by the medical board
or by any other registered medical practitioner authorized by the
company.
2.3.2 In the case of persons appointed from Government or from Steel
Authority of India Limited or from any of its subsidiary companies either
on deputation or transfer basis, such certificate is not required, if he had
been earlier medically examined by the previous employer.
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2.4 AGE:
2.4.1 The age of a person at the time of appointment to the service of the
company shall not be less than 18 years. Relaxation of age shall be
allowed as per directives of the Government.
2.4.2 Every employee must declare on his first appointment or on being

required to do so by the company, his date of birth according to the
Christian Era and produce confirmatory documentary evidence thereof,
e.g. Matriculation or School Leaving Certificate or Birth Certificate from
Municipality and in the absence thereof such evidence as may be
acceptable to the company. If an employee is unable to produce for
reasons beyond his control the documentary evidence of his age, he shall
state his age and make a written declaration that the age as stated by
him is correct. Such an employee shall be sent to the Medical Board
authorized by the company for examination and its opinion as to the
employee's age shall be binding on the employee as well as the company.
The date of birth recorded with the company at the time of his first
appointment shall not be altered except in case of a clerical error. The
employee throughout the period of his service shall, however, be obliged
to produce documentary evidence of his age whenever asked for by the
CLARIFICATION:
In such cases where the exact date of birth cannot be ascertained from
the Matriculation Certificate, which is accepted as confirmatory document
in proof of age, the principle of the General Financial Rules should be
applied and the age of superannuation of such employees should be
determined, as falling in the afternoon of the last date of such month as
may be assessed on the basis of Matriculation Certificate (e.g. if the age
is indicated as 19 years and 10 months as on 1st March, 1970 the date of
birth of the employee is assumed as 31st May, 1950 and the employee is
considered due for superannuation on 31st May, 2010 afternoon.)
Further an employee whose date of birth falls on the 1st day of a
particular month will superannuate on the last day of previous month,
(i.e. if the date of birth of the employee is 01.08.1960, the date of
superannuation will be on 31.07.2020.)
2.5 RELAXATION IN JOB SPECIFICATION:
In case of exceptionally qualified candidates the appointing authority may
keeping in view the job requirements, grant relaxation in respect of age
and/or length of experience provided suitable candidate with prescribed
qualification and experience are otherwise not available.
2.6 VERIFICATION OF CHARACTER AND ANTECEDENTS:
2.6.1 The company shall conduct such verification regarding antecedents of the
employee, as they may consider necessary. If the antecedents are not
found satisfactory the company reserves the right to remove him from
the service of the company though he might have been confirmed in the
post after completion of probation.
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2.6.2 In the case of person appointed from the Government or Steel Authority
of India Limited or any of its subsidiary companies, the company may
accept the verification of character and antecedents done by his previous
employer.
2.6.3 Fresh verification of Character and Antecedents is required in respect of
those contract employees who are regularized as permanent employees
of MECON from the status of a contract employee.*
2.7 PROBATION:
2.7.1 On Initial Appointment:
(a) In all initial appointments, except transfer/deputation from the
Government or Steel Authority of India Limited or any of its Subsidiary
Companies, the incumbent shall be on probation for a minimum period of
six months.
(b) The period of probation may be extended or curtailed in individual cases,
on the merits of each case, by the Competent Authority.
(c) During the period of probation, an employee shall be liable to be
discharged from the service of the company without notice or without
assigning any reason, at the sole discretion of the company.
(d) An employee shall continue to be on probation till such time he is
confirmed, in writing.
2.7.2 On Promotion:
(a) An employee who is promoted shall be on probation for a minimum
period of six months.
(b) If the performance of the employee during the probation period is not
found satisfactory, the period of probation is liable to be extended for a
further period of six months, and if his performance continues to be
unsatisfactory, he is liable to be reverted to the post he held before
promotion.
2.8 LIABILITY OF DEFENCE SERVICES:
Graduate Engineers, MTT and Medical Graduates, if any, recruited as full
time employees of the company, shall be liable to serve for a minimum
period of four years (including period spent on training) in the Defence
Service or on work relating to defence efforts anywhere in India or
abroad, if so required.
The liability to serve in the Defence Services shall be limited to the first
ten years of service and shall not ordinarily apply to Graduate Engineers
or Medical Graduates above 40 years of age, unless the Government of
India decides otherwise.
2.9 TRAINING:
All employees are liable to undergo such training for such period, and
undertake such examinations, as may be prescribed by the company from
time to time.
* Introduced/Addition made vide note dated 01.09.2008 approved by Director (Engineering)

with immediate effect.
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2.10 APPOINTMENT FROM STEEL AUTHORITY OF INDIA LIMITED AND
ITS SUBSIDIARIES:
Persons appointed from Steel Authority of India Limited or any of its
Subsidiary Companies shall be entitled to:
(a) Count the period of their previous service for the purpose of gratuity in
the company.
(b) Carry forward leave at their credit at the time of appointment.
(c) Become member of the company's Provident Fund from the date of their
appointment and to company's contribution to their Provident Fund
Account from that date.
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CHAPTER - III
WORKING HOURS, HOLIDAYS
AND ALLIED MATTERS
3.1 WORKING HOURS:
3.1.1 The hours of work in any office and in respect of various categories of
employees shall be such as are notified by the company from time to
time. The present working hours in respect of employees and offices
which is operative from 19.08.2002 are as follows:
OFFICE OFFICE TIMING LUNCH BREAK/ WORKING
RECESS DAYS
Ranchi (Head Office) 9.30 a.m. to 5.30 p.m. 1.00 p.m. to 2.00 p.m. Monday to
including Ministerial Saturday
Staff of TACD, (except 2nd &
executives posted in 4th Saturdays)
H. O. Bldg.
Ispat Hospital Doctors 8.00 a.m. to 1.00 p.m. 1.00 p.m. to 4.00 p.m. Monday to
(except Casualty & Saturday
Doctors), Paramedical 4.00 p.m. to 7.00 p.m. (except 2nd &
Executives and Non- 4th Saturdays)
Executives**
TA & CD (Executives 8.30 a.m. to 5.00 p.m. 1.00 p.m. to 2.30 p.m. Monday to
and Non-Executives) Saturday
and its ministerial staff (except 2nd &
including employees 4th Saturdays)
posted in Stores Deptt.
In TA & CD.
City based offices, like 9.30 a.m. to 5.00 p.m. 1.00 p.m. to 1.30 p.m. Monday to
Bangalore, Kolkata, Saturday
Delhi, Mumbai, Vizag, (except 2nd &
Chennai, Bhubaneswar 4th Saturdays)
etc.
Steel Plant located 9.30 a.m. to 5.30 p.m. 1.00 p.m. to 2.00 p.m. Monday to
offices, viz. Bokaro, Saturday
Bhilai, Rourkela and (except 2nd &
Durgapur. * 4th Saturdays)
* If required these offices can adjust their office timing/lunch break

according to clients office timing keeping the working hours same.
** There shall be no change in office timing with respect to employees with

8 hours duty who work in Shifts, General or otherwise. They shall be
eligible to avail 2nd and 4th Saturdays as off days.
1. Special leave facilities wherever applicable shall stand withdrawn

w.e.f. 19.08.2002.
2. There shall be no change in office timing and working days of those
employees who are presently working 8 hours a day, 6 days a week at
Project Offices/Sites.
3. Management reserves the right to review, modify/amend the working
hours/time etc. of employees and offices from time to time depending on
requirement.
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3.1.2 An employee may be required by the Competent Authority to work extra
hours in which case payment or reward for such extra hours of work to
those categories of employees who are entitled to it shall be on the basis
as laid down by the company from time to time.
3.1.3 An employee may be required to work on shift or shifts as may be
decided by the Competent Authority. The employee working on shifts
shall be liable to be transferred from one shift to another. The actual
working hours in a shift shall be as determined by the Competent
Authority from time to time.
3.1.4 Daily lunch break of duration of minimum half an hour shall be observed
in all the offices of the company on all full working days. Timings shall be
such as to meet the operating conditions of each office and the same
shall be notified by the Competent Authority. No employee shall be
required or allowed to work for more than five hours continuously in any
day unless he has had an interval of at least half an hour.
3.1.5 An employee who has been asked to work during his normal lunch break
shall be allowed alternative lunch break of same duration immediately
before or after the normal break but no overtime shall be allowed for
working during the normal lunch break.
3.2 ATTENDANCE:
3.2.1 Attendance shall be marked daily according to the methods prescribed by
the company from time to time.
3.2.2 Every employee shall be punctually present at his seat at the office
opening time, and shall not, unless otherwise arranged, leave the place of
work before the closing time.
3.2.3 If an employee is late by more than 15 minutes, he may be liable to be
shut out for that day and may be treated as absent. If, however, any
employee is allowed such late attendance for more than 3 days in a
month, the late attendance in that case shall be regularized by adjusting
one day's leave due, against every three days of such late coming.
3.3 HOLIDAYS:
3.3.1 Every employee of the company shall be allowed a weekly holiday.
3.3.2 In addition to the weekly holiday, an employee shall be allowed in a
calendar year, 16 (sixteen) Closed Holidays including National Holidays
and 4 (Four) Restricted Holidays. A particular RH chosen by an employee
may be disallowed by the Competent Authority depending on the
exigencies of work. In such an event, the concerned employee may be
allowed to avail of any other RH. An employee who is asked to work on
Closed Holidays and weekly off days shall be paid overtime or reward for
such hours of work in case he is entitled to it on the basis of rules laid
down by the company from time to time. The company at the
commencement of each calendar year shall publish a list of holidays.
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3.4 IDENTITY CARDS:
3.4.1 Every employee of the company may be provided with an identity card,
as deemed necessary.
3.4.2 Every employee shall show his identity card to the representative (s) of
the company authorized to check the cards and regulate entry of person
to the premises of the company or to any office of the company if and
when asked for.
3.4.3 The first issue of the card will be free of charge. Loss of the card shall
immediately be reported, and a new card shall be issued on payment of
such fee as may be prescribed.
3.4.4 An employee leaving the services of the company for any reason
whatsoever, shall surrender his identity card, failing which he shall be
liable to pay such sum as may be prescribed.
3.5 ENTRY AND EXIT:
3.5.1 All employees shall enter and leave the company's premises by such
gates as may be prescribed. Employees while entering or leaving the
premises are liable to be detained and searched by such staff as may
authorized for this purpose.
3.5.2 When any employee goes or is sent out to any place in connection with
the work of the company, he shall be governed for the purposes of entry
to and exit from such other place of work, by the rules applicable in this
regard at that place.
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CHAPTER – IV
CONDUCT RULES
4.1 GENERAL:
4.1.1 Every employee of the company shall at all times: -
(a) maintain absolute integrity;
(b) maintain devotion to duty;
(c) must be properly dressed; and
(d) do nothing which is unbecoming of a public servant.
4.1.2 Every employee of the company holding an executive or a supervisory
post shall take all possible steps to ensure the integrity and devotion to
duty of all employees for the time being under his control and authority.
4.2 EMPLOYMENT OF NEAR RELATIONS:
4.2.1 No employee shall use his position or influence directly or indirectly to
secure employment for any person related, whether by blood or marriage
to the employee or to the employee's wife or husband, whether such a
person is dependent on the employee or not.
4.2.2 No employee shall, except with the previous sanction of the company,
permit any member of his family or near relations to accept employment
with any private firm with which he has/had dealings in connection with
the business of the company or with any other firm having business
relation with the company provided that where the acceptance of
employment cannot await prior permission of the company or is otherwise
considered urgent, the matter shall be reported to the company and the
employment may be accepted provisionally subject to the permission of
the company.
4.2.3 An employee shall, as soon as he becomes aware of the acceptance by a
member of his family or near relative of an employment in any private
firm having business dealings with the company, intimate such
acceptance to the Competent Authority and shall also intimate if he
has/had any official dealings with that firm. No such intimation shall be
necessary if the employee has already obtained sanction or sent report to
the Competent Authority.
4.2.4 No employee shall, in the discharge of his official duties, deal with any
matter or give or sanction any contract to any firm or any other person if
any member of his family is employed in that firm or under that person,
or if he or any member of his family is interested in such matter or
contract in any other manner, and the employee shall refer every such
matter or contract to his official superior, and the matter or contract shall
thereafter be disposed off according to the instructions of the authority to
whom the reference is made.
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4.3 TAKING PART IN POLITICS AND ELECTION:
4.3.1 No employee shall be a member of or be otherwise associated with, any
political party or any organization which takes part in politics, nor shall
he/she take part in, subscribe in aid of or assist in any other manner, any
political movement or activity.
4.3.2 If any question arises whether a party is political or whether any
organization takes part in politics or whether any movement or activity
falls within the scope of such rule, the decision of the Competent
Authority thereon shall be final.
4.3.3 No employee shall canvass or otherwise interfere with or use his influence
in connection with, or take part in an election to any Legislature or local
authority.
4.3.4 An employee qualified to vote at such election may exercise his right to
vote, but where he does so, he shall give no indication of the manner in
which he proposes to vote or has voted.
4.3.5 An employee shall not be deemed to have contravened the provisions of
this rule by reason only that he assists in the conduct of an election in the
due performance of a duty imposed on him by or under any law for the
time being in force.
4.3.6 Display of any electoral symbol by an employee on his personal vehicle or
residence shall amount to using his influence in connection with an
election within the meaning of this rule.
4.3.7 Proposing or seconding the nomination of a candidate at an election to a
legislative body or acting as his agent, by an employee, shall amount to
taking part in such election.
4.3.8 No employee shall stand for election as member for a Municipal Council,
Corporation, District Board, Panchayat or in legislative body.
4.4 TAKING PART IN DEMONSTRATIONS, GHERAO, ILLEGAL STRIKES
ETC.:
4.4.1 No employee of the company shall engage himself or participate in any
demonstration, gheraos, illegal strikes or any other activity which involves
incitement to stoppage of or hindrance to work or any other offence, go-
slow etc. in contravention of the provision of any law or rules for the time
being in force.
4.5 CONNECTION WITH PRESS OR RADIO OR CRITICISM OF
GOVERNMENT/COMPANY:
4.5.1 No employee shall, except with the previous sanction of the Competent
Authority own wholly or in part or conduct or participate in the editing or
Management of any newspaper or other periodical publication.
4.5.2 No employee shall, except with the previous sanction of the Competent
Authority or in the bonafide discharge of his duties, participate in a radio
broadcast or contribute any article or write any letter whether in his own
name or anonymously, pseudonymously or in the name of any other
person to any newspaper or periodical on a subject which may have a
bearing on the affairs of the company.
17
Provided that no such sanction shall be required, if such broadcast or such
contribution to journals, news-papers, etc. is purely of a literary or
artistic/scientific character or connected with the professional work of the
employee or related to a subject of an allied nature to his profession of
work.
4.5.3 No employee shall participate in any radio/TV broadcast or in any
document published under his name or in the name of any other person
or in any communication to the press, or in any public utterances, make
any statement:
(a) which has the effect of adverse criticism of any policy or action of the
Central or State Governments, or of the company; or
(b) which is capable of embarrassing the relations between the company and
the public.
Provided that nothing in these rules shall apply to any statement made or
views expressed by an employee of a purely factual nature which are not
considered to be of a confidential nature, in his official capacity or in due
performance of the duties assigned to him.
Provided further that nothing contained in this clause shall apply to
bonafide expression of views by him as an office bearer of a recognized
trade union for the purpose of safe-guarding the conditions of service of
such employees or for securing an improvement thereof.
4.6 MAKING PUBLIC OR PUBLISHING DOCUMENTS, TAKING OUT
PATENTS, ETC.:
4.6.1 No employee while in service or after cessation of service shall make
public or publish any document, papers or information which might have
come into his possession in his official capacity, without the prior sanction
of the company.
4.6.2 No employee while in service shall:
i) Apply for or attempt to obtain or obtaining any patent for invention,
innovation or improvement made to any drawings, design of industrial
equipment in which the company is concerned or interested in the course
of its business.
ii) Pass out to any person or agency any information, document data,
drawing design, etc. belonging to the company or relating to the
Company’s business or using the same in any business in which the
employee is directly or indirectly connected or interested.
4.7 EVIDENCE BEFORE COMMITTEE OR ANY OTHER AUTHORITY:
4.7.1 Save as provided in Rule 4.7.3 no employee shall, except with the
previous sanction of the company, give evidence in connection with any
inquiry conducted by any person, committee or Authority.
4.7.2 Where any sanction has been accorded under Rule 4.7.1 above, no
employee giving such evidence shall criticize the policy or any action of
the company, the Central Government or of a State Government.
4.7.3 Nothing in this Rule shall apply to:
18
(a) Evidence given at an inquiry before an authority appointed by the
company, the Government, Parliament or by a State Legislature; or
(b) Evidence given in any Judicial Inquiry: or
(c) Evidence given at any departmental inquiry ordered by the company or
authorities subordinate to the company.
4.7.4 It shall also be the duty of every employee to give, when so required, all
reasonable assistance to the Police, Customs and such other authorities
and the company's Security Staff in the performance of their duties.
4.8 UNAUTHORISED COMMUNICATION OR INFORMATION:
4.8.1 No employee shall, by writing to any person (including a co-employee) or
by communicating to public papers, journals, pamphlets or leaflets or by
speech or discussion at any place, disclose or cause to be disclosed at any
time during service or after leaving the service of the company any
information or document or otherwise relating to the company except with
the approval of the Competent Authority.
4.8.2 No employee shall, otherwise than in the normal course of his work
engage in giving information or advice on matters relating to the activities
of the company.
4.8.3 Except in the ordinary course of his duties, no employee shall disclose
either during service or after leaving service of the company, any secret,
cost of production of any or all of the company's products, cost of
equipment, plants, etc, information of settlement of claims by the
company in or out of court or any other information on matters of trade
or business.
4.8.4 No employee is permitted to carry with him outside the establishment,
office premises any papers, books, drawings, photographs, apparatus,
documents or any other property belonging to the company or relating to
the company affairs, provided that this shall not apply to Chairman-cum-
Managing Director, Director, Secretary, Heads of Sections or Departments
of the company, and such other employees who are specially authorized
by the Competent authority to take out of the establishment premises any
documents or paper for the purpose of study or for other purposes
approved by the Competent Authority.
4.8.5 No employee is permitted to take for his own use, notes, drawings or
sketches of any plant, process or work or keep copies of official papers
with him.
4.8.6 All books, drawings, sketches, photographs and similar papers containing
notes or information relating to the company's business affairs or
operations shall always be treated as company's property whether
prepared by an employee or otherwise.
4.8.7 All papers, documents, drawings, sketches, books, photographs,
information, data, etc. received by an employee in his capacity as an
employee of the company shall also be deemed to be the property of the
company and shall be deposited with the company as soon as possible
after receipt.
19
4.9 SUBSCRIPTIONS:
4.9.1 No employee shall, except with the previous permission of the company,
ask for or accept contribution to, or otherwise associate himself with
raising of any fund in pursuance of any object whatsoever except as
sanctioned by law of the land, or rule or order of the company for the
time being in force.
4.10 GIFTS:
4.10.1 No employee shall without the previous sanction of the company, solicit or
accept directly or indirectly or permit any member of his family to accept
gift, gratuity or reward, or any such offer from any person or firm having
dealing with the company or any subordinate employee.
4.10.2 The expression “gift” shall include:
(a) Free transport, boarding, lodging or other service or any other pecuniary
advantage when provided by any person other than a near relative or
personal friend, having official dealings with the employee.
(b) A casual meal, lift or other social hospitality shall not be deemed to be a
gift.
(c) An employee shall avoid accepting lavish and/or frequent hospitality from
any individual having official dealings with him or from industrial or
commercial organization, firms etc.
4.10.3 On ceremonious occasions, such as weddings, anniversaries funerals or
religious functions, an employee may accept gift if it is in conformity with
religious or social practice, from his near relatives or personal friends
having no official dealings with him, but he shall report to the prescribed
authority if the value of any such gift (s) exceeds the limit specified
below:
i) ` 5000/- in case of an employee holding an executive post:

ii) ` 2500/- in other cases.
4.10.4 Except as provided in rule 4.10.3 no employee shall accept any gift
without the sanction of the Competent Authority if the value thereof
exceeds:
(a) ` 1000/- in the case of employee holding an executive post.
(b) ` 500/- in the case of other employees.
Note: Such gifts, if any, shall not be accepted more than once in a year.
4.11 PUBLIC DEMONSTRATIONS IN HONOUR OF A COMPANY

EMPLOYEE:
receive any complimentary or valedictory address or accept any
testimonial or attend any meeting or entertainment held in his honour or
in the honour of any other employee, provided that nothing in this rule
shall apply to:
20
(a) A farewell entertainment of a substantially private and informal character,
held in honour of an employee or any other employee on the occasion of
his retirement or transfer, or any person who has recently quit the service
of the company: or
(b) The acceptance of simple and inexpensive entertainment arranged by
public bodies or institutions.
4.12 PRIVATE TRADE OR EMPLOYMENT:
4.12.1 An employee shall be deemed to be a whole-time servant of the company
and shall not, except with the previous sanction of the company on such
terms and conditions as may be prescribed by the company, engage
directly or indirectly in any trade or business or undertake any
employment nor shall he, without such express authority, accept any fee,
emoluments, commission or honorarium from any other person.
4.12.2 An employee may, however, without such sanction, undertake honorary
work of a social or charitable nature or occasional work of a literary or
scientific character, subject to the condition that his official duties do not
thereby suffer, but he shall not undertake or shall discontinue such work
if so directed by the company.
4.12.3 Canvassing by an employee in support of the business of insurance

agency, commission agency, etc, owned or managed by his wife or any
other member of his family shall be deemed to be a breach of these rules.
take part in the registration, promotion or Management of any bank or
other company registered under the Companies Act, 1956 or any other
law for the time being in force.
4.12.5 An employee may, however, take part in the registration, promotion of
Management of Co-operative Society registered under the Co-operative
Society Act, 1912 or any other law for the time being in force, or of
literary, scientific or charitable society registered under the Societies
Registration Act, 1860, or any corresponding law in force.
4.12.6 Every employee shall report to the company if any member of his family
is engaged in a trade or business or owns or manages an insurance
agency or commission agency.
4.12.7 No employee of the company may accept any fee or any pecuniary
advantage for any work done by him for any public body or any private
person without the sanction of the Competent Authority.
4.13 INVESTMENT, LENDING AND BORROWING:
4.13.1 No employee shall speculate in any investment.
4.13.2 Frequent purchase or sale or both of shares, securities or other
investment shall be deemed to be speculation within the meaning of this
rule.
4.13.3 No employee shall make or permit his wife or any member of his family or
anybody in his behalf to make any investment, which is likely to
embarrass or influence him in the discharge of his official duties.
21
4.13.4 If any question arises whether a security or investment is of the nature
referred to in Rule 4.13.2 the decision of the company thereon shall be
final.
lend money to any person possessing land or valuable property or on
interest to any person.
4.13.6 An employee may, however make an advance of pay to private servant or
give a loan of small amount free of interest to a personal friend or
relative.
4.13.7 No employee shall, save in the ordinary course of business with a bank or
a firm of standing, duly authorized to conduct business, borrow money
from or otherwise place himself under pecuniary obligation to any person
within the local limits of his authority or any other person with whom he is
likely to have official dealings nor shall permit any member of his family,
except with the previous sanction of the company, to enter into any such
transaction.
4.13.8 An employee may, however, accept a purely temporary loan of small
amount free of interest from a personal friend or relative or operate a
credit account with a bonafide tradesman.
4.13.9 When an employee is appointed or transferred to a post of such a nature
as to involve him in the breach of any of the provisions of Rule 4.13.4 he
shall forthwith report the circumstances to the company and shall there-
after act in accordance with such orders as may be passed by the
company.
4.14 INSOLVENCY AND HABITUAL INDEBTEDNESS:
4.14.1 An employee shall avoid habitual indebtedness and shall be liable to be
discharged on being adjudged or declared insolvent unless he proves that
such indebtedness or insolvency is the result of circumstances beyond his
control and does not proceed from extravagance or dissipation.
4.14.2 An employee who applies to be or is adjudged or declared insolvent shall
forthwith report the fact to the company.
4.15 MOVABLE, IMMOVABLE AND VALUABLE PROPERTY:
acquire or dispose of any immovable property by lease, mortgage,
purchase, sale, gift or otherwise either in his own name or in the name of
any member of his family.
4.15.2 An employee who enters into transaction concerning any movable
property exceeding ` 20,000/- in value in case of Board level, below
Board level executives and non-unionised supervisory staff and `
15,000/- in case of Group “D” post, whether by way of purchase, sale
or otherwise, shall forthwith report such transaction to the company,
provided that any such transaction conducted otherwise than through a
regular or reputed dealer or with a person having official dealing with the
employee shall require previous sanction of the company.*
22
4.15.3 The expression movable property includes inter-alia the following:
(a) Jewellery, Insurance policies, Shares, Securities and Debentures.
(b) Loans advanced by such employee, whether secured or not.
(c) Motor Cars, Motor Cycle/Scooters.
(d) Refrigerators, Radios/Radiograms.
(e) Tape Recorder, TV and such other items as may be prescribed by the
company from time to time.
4.15.4 Every employee shall, on his first appointment in the company and
thereafter at intervals of every twelve months or whenever the company
may ask for, submit a declaration of
(a) The assets of which he, his spouse and his dependent children are,
jointly or severally, owners or beneficiaries: and
(b) His liabilities and that of his spouse and his dependent children, in
such form as the company may prescribe in this behalf.
4.15.5 The company, or any authority empowered by it in this behalf may, at
any time by general or special order, require an employee to submit
within a stipulated period, a full and complete statement of such movable
or immovable property held or acquired by him or by any member of his
family as specified in the order. Such statement shall if so required by the
company or by the authority so empowered include details of the means
by which or the source from which such property was acquired.
4.15.6 Every employee shall intimate the company or any authority empowered
by it in this behalf transaction in sale and purchase of shares, securities,
debentures, mutual funds, etc. in the prescribed proforma in the following
cases:-
i) For employee holding an executive or supervisory post if the total
transaction in shares, securities, debentures, mutual funds scheme, etc.
exceeds ` 50,000/- during the calendar year.
ii) For other employee if the total transaction in shares, securities,

debentures, mutual funds scheme, etc. exceeds ` 25,000/- during the
calendar year.
This intimation will be in addition to the provisions under
clause 4.15.2.
* Amended vide DPE’s OM no. 15 (6)/98–DPE (GM) dated 13.08.2008 circulated by Manager
(Personnel) vide note no. 11.73.4/2008 dated 06.09.2008.
23
4.16 VINDICATION OF ACTS AND CHARACTER OF EMPLOYEES:
4.16.1 No employee shall except with the previous sanction of the company,
have recourse to any court or to the press for the vindication of any
official act which has been the subject matter of adverse criticism or an
attack of defamatory character. Nothing in this rule shall be deemed to
prohibit an employee from vindicating his private character or any act
done by him in his private capacity.
4.17 CANVASSING THROUGH NON-OFFICIAL OR OTHER OUTSIDE
INFLUENCE:
4.17.1 No employee shall bring or attempt to bring any politics or other outside
influence to bear upon any superior authority to further his interests in
respect of matters pertaining to his service under the company.
4.18 BIGAMOUS MARRIAGE:

4.18.1 No employee shall enter into, or contract, a marriage with a person
having a spouse living; and
4.18.2 No employee, having a spouse living shall enter into or contract a
marriage with any person.
Provided that the Board may permit an employee to enter into, or
contract, any such marriage as is referred to in Rule 4.18.1 or Rule
4.18.2, if it is satisfied that such marriage is permissible under the
personal law applicable to such employee and the other party to the
marriage and further that there are reasonable grounds for so doing.
4.19 DRUNKNESS/INTOXICATION:
4.19.1 Any employee shall:

(a) Strictly abide by law relating to intoxicating drinks in force in any area in
which he may happen to be for the time being.
(b) Take due care that performance of his duties are not prejudiced in any
way by the influence of such drinks or drugs.
(c) Not appear in the place of work in a state of intoxication: and

(d) Not habitually use such drinks or drugs to excess.
NOTE:
An employee suspected of appearing in the office/place of work in a state
of intoxication shall be directed to appear before such medical authority
as the company may deem fit for medical examination. Should he avoid
or refuse to appear before such medical authority, he shall be deemed to
have committed the violation as may be alleged.
4.20 PROHIBITION OF SEXUAL HARASSMENT OF WORKING WOMEN:
4.20.1 No employee shall indulge in any act of sexual harassment of any women
at her workplace.
4.20.2 Heads of Office/Section/In-charge of a work place shall take appropriate
steps to prevent sexual harassment to any women at such place.
24
4.20.3 For the purpose of this rule, “Sexual harassment” includes such
unwelcome sexually determined behaviour, whether directly or otherwise,
as:-
(a) Physical contact and advances;
(b) Demand or request for sexual favours;
(c) Sexually coloured remark;
(d) Showing any pornography; or
(e) Any other unwelcome physical, verbal or non-verbal conduct of a sexual
nature.
4.21 DELEGATION OF POWERS:
4.21.1 The company may, by general or special order, direct that any power
exercisable by it under these rules shall, subject to such conditions, if
any, as may be specified in the order, be exercisable also by such officer
or authority as may be specified in the order.
4.22 VIOLATION OF CONDUCT RULES:
4.22.1 Violation of any of the above mentioned rules shall render the employee
liable for disciplinary action entailing a major punishment of removal from
service.
25
PROFORMA
(Ref. Clause 4.15.6 of Chapter – IV)
FORM FOR GIVING INTIMATION UNDER RULES 4.15.6 OF CONDUCT RULES FOR
TRANSACTIONS IN SHARES, SECURITIES, DEBENTURES AND INVESTMENT IN
MUTUAL FUND SCHEMES ETC.
1. Name and Designation
2. Scale of pay and Present pay
3. Details of each transaction made in Shares,

securities, Debentures, Mutual fund Scheme etc.
during the Calendar year.
4. Particulars of the Party/firm with whom transaction

is made: -
a) Is party related to the applicant?
b) Did the applicant have any dealings with the party

in his official capacity at any time or is the
applicant likely to have any dealings with him in
the near future.
5. Source or sources from which financed: -
a) Personal savings.
b) Other source giving details.
6. Any other relevant fact which applicant may like to

mention.
DECLARATION
I hereby declare that the particulars given above are

true.
SIGNATURE
DESIGNATION
PL. NO.
Station:
Date:
26
CHAPTER - V
DISCIPLINE AND APPEAL RULES
5.1 DISCIPLINE:
5.1.1 Nature of Penalties:
The following Penalties may, for good and significant reasons and as
hereinafter provided, be imposed by the Disciplinary Authority on the
employees for their acts of misconduct:
i) Minor Penalties:
(a) Censure;
(b) With-holding of increments of pay with or without cumulative effect;
(c) With-holding of Promotion;
(d) Recovery from pay of the whole or part of any pecuniary loss caused to
the company by negligence or breach of order;
(e) Reduction to a lower stage in the time scale of pay for a period not
exceeding 03 years, without cumulative effect and not adversely affecting
his terminal benefits.
ii) Major Penalties:
(a) Save as provided in clause 5.1.1 (i) (e) above, reduction to a lower stage
in the time scale of pay for a specified period, with further directions as to
whether or not the employee will earn increments of pay during the
period of such reduction and whether on expiry of such period, the
reductions will or will not have the effect of postponing the future
increment of pay;
(b) Reduction to a lower time scale of pay, grade, post or service which shall
ordinarily be a bar to the promotion of the employee to the time-scale of
pay, grade, post from which he was reduced, with or without further
directions regarding conditions of restoration to the grade or post from
which the employee was reduced and his seniority and pay on such
restoration to that grade or post;
(c) Compulsory retirement;
(d) Removal from service which shall not be a disqualification for future
employment under the Govt. or the Corporation/company owned or
controlled by the Govt.;
(e) Dismissal from service which shall ordinarily be a disqualification for
future employment under Govt. or the Corporation/company owned or
controlled by the Govt.;
Provided that, in every case in which the charge of possession of assets
disproportionate to know sources of income or the charge of acceptance
from any person of any gratification, other than legal remuneration, as a
motive or reward for doing or forbearing to do any official act is
established, the penalty mentioned in clause (d) or (e) shall be imposed.
Provided further that in any exceptional case and for special reasons
recorded in writing any other penalty may be imposed.
27
NOTE:
The following shall not amount to a penalty within the meaning of this
rule.
(a) With holding of increment of an employee on account of his work being
found inefficient or for failure to pass a prescribed test or examination.
(b) Recovery from the pay, whole or part for any loss caused to the company
by the employee's negligence, default or breach of any regulations or
orders.
(c) Stoppage of an employee at the efficiency bar in a time scale on the
ground of his unfitness or failure to cross the bar.
(d) Reversion to a lower grade or post of an employee officiating in a higher
class/grade or post on the ground that he is considered after trial to be
unsuitable for such higher class/grade or post or on administrative
grounds unconnected with his conduct.
(e) Notwithstanding his eligibility to be considered for appointment to any
higher position, denial of promotion to an employee to any higher position
whether on permanent, temporary or on officiating basis on the ground of
his not being found suitable for such appointment.
(f) Termination of service of an employee appointed on probation, during or
at the end of the period of probation, in accordance with the terms of his
appointment.
(g) Termination of service of an employee appointed in a temporary capacity
otherwise than under a contract or agreement on the expiry of the period
for which he was appointed or earlier in accordance with the terms of his
appointment.
(h) Termination of service of an employee appointed under a contract or
agreement, in accordance with the terms of such contract or agreement,
and
(i) Termination of service of an employee on reduction of establishment.
5.2 ACTS OF MISCONDUCT:
5.2.1 Without repugnance to the general meaning of the term “Mis-conduct”
the following acts inter-alia shall be deemed to be misconduct and
punishable:
i) Habitual late attendance, willful or habitual absence from duty without
leave or overstaying the sanctioned leave without sufficient ground or
proper explanation.
ii) Negligence or neglect of duty, malingering, loitering, idling wasting time

during working hours and slowing down in the performance of work or
inciting others to do so.
iii) Absence from appointed place of work without permission or sufficient
cause.
iv) Gambling, drunkenness, intoxication or riotous or disorderly or indecent
behaviour in the premises of the company or outside such premises.
28
v) Collection of or canvassing for money without prior written permission of
vi) Acceptance of gifts from and lending or borrowing money to or from
subordinate employees.
vii) Deliberately spreading false information or rumours with a view to
bringing about disruption of the company's normal work.
viii) Unauthorized use of any building/land or other property either owned or
taken over on lease or on hire, or under any other arrangement by the
company with some other organization/person.
ix) Habitual indiscipline or willful insubordination or disobedience of any
lawful or reasonable order of any superior authority and also refusing the
order to work over-time.
x) Theft of company's property or fraud or dishonesty in connection with the
company's business or property either within or outside the company's
premises or its precincts or theft or fraud or dishonesty with the business
or property of another person within the company’s premises or its
precincts.
xi) Dishonesty in connection with the privileges extended under the rules of
the company.
xii) Giving false information regarding one's particulars for the purposes of
employment or concealing any facts about any previous employment, age
and other particulars in this respect or giving false evidence at the time of
any departmental enquiry.
xiii) Taking or giving, offering or asking for, bribes or any illegal gratification
whatsoever or indulging in corrupt practices.
xiv) Assaulting or intimidating or threatening or co-ercing an employee of the
company or unauthorized interference with the work of another employee
or surrounding or forcibly detaining any employee of the company.
xv) Sabotage or willful damage to or loss of company's goods or property.
xvi) Unauthorized communication or leakage of official documents or
information in possession of the company.
xvii) Striking work or inciting others to strike work in contravention of the
provisions of any law or rule having the force of law.
xviii) Conviction by a Court of Law for any criminal offence involving moral
turpitude.
xix) Breach of any law applicable to the works or of the Conduct Rules and any
other rules or orders issued by the Competent Authority from time to
time.
xx) Contracting another marriage while spouse is still alive without first
obtaining the permission of the company.
xxi) Adjudged insolvency not warranting continuance of the company's trust
and confidence which the duties of the employee call for.
29
xxii) Writing of anonymous letters etc. addressing appeals or representations
to an authority other than the Appellate or the Competent Authority and
forwarding advance copies of appeals or representations to any Authority.
xxiii) Abetment of or attempt at an act of misconduct.
xxiv) Purchasing properties, machinery, stores, etc. from or selling property,

machinery, stores, etc. to the company without previous sanction from
xxv) Engaging in other employment whilst in the service of the company
without prior permission of the Competent Authority.
xxvi) Commission of any act subversive of good behavior or of the discipline of
the company.
xxvii) Canvassing for Union or party membership or the collection of Union or
party dues, funds or contribution, etc. during working hours or within
office premises.
xxviii) Distributing or exhibiting in the company's premises or its precincts
handbills, pamphlets, posters or causing to be displayed by means of
signs or writing or other visible representations, or through electro-media,
any matter without previous sanction of the Competent Authority.
xxix) Organizing, holding, attending or taking part in any meeting within the
company's premises or its precincts without prior sanction of the
xxx) Conduct within the company's premises or its precincts, which is likely to
endanger the life or safety of any person or damage or destroy any
property of the company.
xxxi) Refusal to accept charge sheet, orders or other communications served
either in accordance with these rules or in the interest of discipline.
xxxii) Willful falsification, defacement or destruction of personal records or any
documents or papers of the company or unauthorized removal or
defacement of notices on the company's Notice Board.
xxxiii) Refusal to work overtime on working days or on holidays or on Sundays
when notified/asked by the authority to do so in the exigencies of
company's work.
xxxiv) Allowing an unauthorized person to operate company's vehicle or
equipment.
xxxv) Sleeping while on duty.
xxxvi) Possession of any lethal weapon and/or explosive material in the
company's premises or its precincts without the prior permission of the
xxxvii)Interference or tampering with any safety devices installed in or about
the premises of the company.
xxxviii) Smoking within the premises of the establishment where smoking is
prohibited.
30
xxxix) Any act/acts prejudicial to the goodwill and/or best interest of the
company.
xl) Engaging in activities prejudicial to the interest or the security of the
country or the company.
xli) Utilisation of House building Advance, Conveyance Advance and any other
Advances granted under the rules of the company for the purposes other
than that for which it is sanctioned.
xlii) Apply for or attempt to obtain or obtaining any patent for invention,
innovation or improvement made to any drawings, design of industrial
equipment in which the company is concerned or interested in the course
of its business.
xliii) Pass out to any person or agency any information, document, data,
drawing and design etc. belonging to the company's business in which the
employee is directly or indirectly connected or interested.
xliv) Indulging in any act of sexual harassment to any women at work place.
NOTE:
The above list is only illustrative and not exhaustive. Any obvious
improper conduct on the part of an employee shall be treated as
misconduct.
5.3 DISCIPLINARY AUTHORITY:
5.3.1 The appointing Authority may impose any of the penalties specified in
rule 5.1.1 on any employee.
5.3.2 Without prejudice to the provisions of rule 5.3.1 the Disciplinary Authority
may impose any of the penalties specified in the Schedule annexed to this
chapter, upon the classes of employees shown in the Schedule
(Annexure to this chapter).
5.3.3 For the purpose of this rule, the Disciplinary Authority shall be determined
with reference to the post grade actually held by the employee at the time
of imposing the penalty on him or if he is under suspension, the post held
by him immediately, before suspension. Disciplinary Authority shall also
include an Authority higher than the Authority mentioned above.
5.4 PROCEDURE FOR IMPOSSING MINOR PENALTIES:
5.4.1 When an employee is charged with misconduct which may lead to
imposition of a minor penalty only, he shall be informed in writing of the
allegations or charges against him and asked to submit his explanation
within specified period not exceeding 10 days. The explanation and
evidence, if any, furnished by the employee shall be taken into
consideration by the Disciplinary Authority before passing orders.
5.4.2 The record of proceedings in such cases shall include:
i) A copy of the statement of allegations and/or charges communicated to
the employee;
ii) The explanation and evidence, if any, furnished by the employee and the
findings of and the order passed by the Disciplinary Authority.
NOTE:
31
Where the penalty of with-holding of increment or promotion or reversion
to a lower scale grade or post is imposed on an employee, the Disciplinary
Authority shall state the period for which it will be effective and where
increment is with-held, it shall be granted on the expiry of that period
without affecting the normal date of increment in future unless otherwise
specified in the orders of the Disciplinary Authority.
5.5 PROCEDURE FOR IMPOSING MAJOR PENALTIES:
5.5.1 When an employee is charged with misconduct which may lead to the
imposition of a major penalty, the Disciplinary Authority shall frame
definite charges on the basis of the allegations against him. The charges
together with a statement of allegations on which they are based, shall be
communicated in writing to the employee, who shall be required to submit
within such time as may be specified by the Disciplinary Authority (not
exceeding 15 days) a written statement of his defence.
5.5.2 On receipt of the written statement of employee or if no such statement is

received within the time specified, an enquiry may be held by the
Disciplinary Authority itself or by an officer or committee or any other
pubic servant appointed by the Disciplinary Authority for the purpose
(hereinafter called the Inquiry Authority). Provided that it may not be
necessary to hold an enquiry in respect of the charge (s) admitted by the
employee in his written statement and in such a case the Disciplinary
Authority shall record its findings on each such charge.
5.5.3 Where the Disciplinary Authority itself inquires into any article of charge
or appoints an Inquiry Authority for holding an inquiry into such charge, it
may by an order, appoint an employee of the company or any other
person to be known as “Presenting Officer” to present on its behalf the
case in support of the articles of charge.
5.5.4 At the inquiry, a reasonable opportunity shall be afforded to the employee
for explaining and defending his case, but he will not be allowed to
engage a legal practitioner for this purpose. He shall be allowed to
produce documentary evidence in his defence, to cross-examine the
witnesses appearing against him and examine any witness in his defence.
He may take the assistance of any co-employee of the company locally
stationed.
5.5.5 The Inquiry Authority shall be the sole judge to decide what is a
reasonable opportunity.
5.5.6 Before the close of the prosecution case, the Inquiring Authority may, in
its discretion, allow the Presenting Officer to produce evidence not
included in the charge sheet or may itself call for new evidence or recall
or re-examine any witness. In such case the employee shall be given
opportunity to inspect the documentary evidence before it is taken on
record, or to cross-examine a witness, who has been so summoned.
NOTE:
If in the opinion of the Inquiring Authority the proceedings of the inquiry
establish any article of charge different from the original article of the
charge, it may record its findings on such article of charge:
32
Provided that the findings on such article of charge shall not be recorded
unless the employee has either admitted the facts on which such article of
charge is based or has had a reasonable opportunity of defending himself
against such article of charge.
5.5.7 At the conclusion of the inquiry, the Inquiry Authority shall prepare a
report of the inquiry, its findings on each of the charges, together with the
reasons therefor.
5.5.8 The record of inquiry in such cases shall include:
i) The charges against the employee and the statement of allegations
furnished to him under rule 5.4 and 5.5.
ii) His written statement of defence, if any.

iii) The oral and/or documentary evidence, if any, considered in the course of
the inquiry, and
iv) The findings on each charge and the reasons therefor.

NOTE:
Provided that where there is a complaint of sexual harassment within the
meaning of Clause 4.20 and Clause 5.2.1 (xliv) of the Conduct, Discipline
& Appeal Rules of the company, the Complaints Committee constituted for
inquiring in to such complaints, shall be deemed to be the Inquiring
Authority appointed by the Disciplinary Authority for the purpose of these
rules and the Complaints Committee shall hold, if separate procedure has
not been prescribed for the Complaints Committee for holding the inquiry
into the complaints of sexual harassment, the inquiry as far as practicable
in accordance with the procedure laid down in these rules and that the
report of Complaints Committee shall be deemed to be an inquiry report
under these rules.
5.6 PASSING OF ORDERS:
5.6.1 The Disciplinary Authority shall consider the records of the inquiry and
record its conclusions on each charge and pass appropriate orders.
5.6.2 The Disciplinary Authority, if it is not itself the Inquiring Authority may,
for reasons to be recorded by it in writing, remit the case to the Inquiring
Authority for fresh or further inquiry and report and the Inquiring
Authority shall thereupon proceed to hold further inquiry.
5.6.3 The Disciplinary Authority shall, if it disagrees with the findings of the
Inquiring Authority on any article of charge, record its reasons for such
disagreement and record its own findings on such charge, if the evidence
on record is sufficient for the purpose.
5.7 PAY AND ALLOWANCES:
5.7.1 The pay and allowances of an employee who is dismissed from service
shall cease from the date of his dismissal from service.
33
5.8 JOINT INQUIRY:
5.8.1 Where two or more employees are concerned in the case the Authority
competent to impose a major penalty on all such cases of employees,
may make an order directing that the disciplinary action against all of
them may be taken in a common proceeding and specifying the authority
which may function as the Disciplinary Authority for the purpose of such
common proceedings.
5.9 SPECIAL PROCEDURE IN CERTAIN CASES:
5.9.1 Notwithstanding anything contained in rule 5.6:-
i) Where any penalty is imposed on an employee of the company on the
ground of conduct which has led to his conviction on a criminal charge; or
ii) Where the Chairman–cum-Managing director is satisfied, for reasons to be
recorded by him in writing, that it is not reasonably practicable to hold an
enquiry in the manner provided in these rules; or
iii) Where the Chairman-cum-Managing Director is satisfied for reasons to be
recorded by him in writing that in the interest of the security of the
company it is not expedient to hold an enquiry in the manner provided in
these rules;
The Chairman-cum-Managing Director may consider the circumstances of

each case and make such orders thereon as he deems fit.
5.9.2 The Disciplinary Authority may terminate his services without following
the procedure laid down in rule 5.5 where the Disciplinary Authority is
satisfied for reasons to be recorded by it in writing that it is not
reasonably practicable to hold an enquiry in the manner provided in these
rules.
NOTE:
i) For the purpose of these rules, an employee shall be deemed to have
absconded if he absents himself from duty without leave or overstays his
leave for a continuous period of ten days without any authority.
ii) All communications under these rules and the copies of orders passed
thereunder may be delivered to the employee if he is attending office.
Otherwise they shall be sent by registered post to the address noted in
the service record. Where such communications or copies of orders
cannot be served on him, personally or by registered post, copies thereof
shall be affixed on the notice board of the office in which the employee is
employed and on such affixing, all communications or orders shall be
deemed to have been properly served on him.
5.9.3 i) Disciplinary proceedings, if instituted while the employee was in service,
whether before his retirement (including voluntary retirement) or during
his re-employment, shall after the final retirement of the employee, be
deemed to be proceeding and shall be continued and concluded by the
authority by which it was commenced in the same manner as if the
employee had continued in service.
34
ii) During the pendency of the disciplinary proceedings, the disciplinary
authority may withhold payment of gratuity, for ordering the recovery
from gratuity of the whole or part of any pecuniary loss caused to the
company if the employee is found in a disciplinary proceeding or judicial
proceeding to have been guilty of offences/ misconduct as mentioned in
sub-section (6) of section 4 of the Payment of Gratuity Act 1972 or to
have caused pecuniary loss to the company by misconduct or negligence,
during his service including service rendered on deputation or on re-
employment after retirement. However, the provisions of Section 7 (3)
and 7 (3-A) of the Payment of Gratuity Act 1972 shall be kept in view in
the event of delayed payment, in case the employee is fully exonerated.
*iii) The officer against whom disciplinary proceedings have been initiated will
cease to be in service on the date of superannuation but the disciplinary
proceedings will continue as if he was in service until the proceedings are
concluded and final order is passed in respect thereof. The concerned
officer will not receive any pay and/or allowance after the date of
superannuation. He will also not be entitled for the payments of
retirement benefits till the proceedings are completed and final order is
passed thereon except his own contribution to CPF.
**iv) No functional director of the Company including the Chief Executive who
has retired/resigned from the service of the Company, after such
retirement/resignation, shall accept any appointment or post, whether
advisory or administrative, in any firm or company, whether Indian or
foreign, with which the company has or had business relations, within one
year from the date of retirement without prior approval of the
Government. The term retirement includes resignation; but not the cases
of those whose terms of appointment was not extended by Government
for reasons other than proven misconduct. The term ‘business relations’
includes ‘official dealings’ as well.
5.10 EMPLOYEES ON DEPUATION FROM OTHER ORGANIZATION:
5.10.1 Where an order of suspension is made or disciplinary proceeding is taken
against an employee, who is on deputation to the company from the
Central or State Government, or another Public Undertaking, or a Local
Authority, the authority lending his services (hereinafter referred to as the
“Lending Authority”) shall forthwith be informed of the circumstances
leading to the order of his suspension, or the commencement of the
disciplinary proceeding, as the case may be.
* New provision included vide decision approved by Board of Directors vide item no.
180/3100 in their 180th Meeting held on 27th March, 2008.
** New provision included vide decision approved by Board of Directors vide Item No.
184/3167 in their 184th meeting held on 25th March, 2009 and Circular No.
11.73.3/2009/9014 dated 04.05.2009.
35
5.10.2 In the light of the findings in the disciplinary proceeding taken against the
employee:-
(a) If the Disciplinary Authority is of the opinion that any of the minor
penalties should be imposed on him, it may pass such orders on the case
as it deems necessary after consultation with the Lending Authority:
Provided that in the event of a difference of opinion between the
Disciplinary Authority and the Lending Authority, the services of the
employee shall be placed at the disposal of the Lending Authority.
(b) If the Disciplinary Authority is of the opinion that any of the major
penalties should be imposed on him, it should place his service at the
disposal of the Lending Authority and transmit to it the proceedings of the
enquiry for such action as it deems necessary.
5.10.3 If the employee submits an appeal against an order imposing a minor
penalty on him under sub-rule 5.10.2 (a) it will be disposed of after
consultation with the Lending Authority.
Provided that if there is a difference of opinion between the Appellate

Authority and the Lending Authority, the services of the employee shall be
placed at the disposal of the Lending Authority and the proceeding of the
case shall be transmitted to that Authority for such action as it deems
necessary.
5.11 SUSPENSION:
5.11.1 The Disciplinary Authority may place an employee under suspension:
(i) When a disciplinary proceeding against him is contemplated or pending
under rule 5.5 and/or
(ii) When a case against him in respect of any criminal offence is under
investigation or trial; subject to a report being made simultaneously to
the Appointing Authority where the Disciplinary Authority is lower than
the Appointing Authority.
5.11.2 An employee who is detained in custody, whether on criminal charge or
otherwise, for a period of 48 hours or more, shall be deemed to have
been suspended with effect from the date of detention by an order of the
Competent Authority and shall remain under suspension until further
orders.
5.11.3 Where a penalty of dismissal or removal from service imposed upon an
employee under suspension is set aside on appeal or on review under
these rules and the case is remitted for further inquiry or action or with
any other direction, the order of his suspension shall be deemed to have
continued in force on and from the date of the original order of dismissal
or removal from service and shall remain in force until further orders.
5.11.4 An order of suspension made under these rules may at any time be
revoked by the Authority which made the order or by any higher
authority.
5.11.5 An order of suspension shall be followed by a charge sheet within seven
days, except where a case for criminal offence against the employee is
under investigation or trial.
36
NOTE:
(a) Leave can not be granted to an employee while under suspension.
(b) An employee, who has been suspended, shall not absent himself from the
station during the period of suspension except with the written permission
of the Authority that ordered the suspension.
5.12 SUBSISTENCE ALLOWANCE:
5.12.1 An employee under suspension shall be entitled to non-recoverable
subsistence allowance equal to 50% of the total of his basic pay plus
dearness allowance for the first three months of suspension provided that
he gives a declaration to the satisfaction of the Disciplinary Authority that
he is not engaged in any other employment, business, profession or
vocation.
5.12.2 If the period of suspension exceeds three months, for reasons (to be
recorded in writing) for which the employee is not responsible, the
subsistence allowance shall be increased to 75% of his basic pay plus
dearness allowance.
5.12.3 If the period of suspension is to be extended beyond three months for
reasons (to be recorded in writing) for which the employee is responsible,
the subsistence allowance shall be reduced to 25% of his basic pay plus
dearness allowance.
5.12.4 A report shall be made to the Competent Authority in either case
explaining the reasons for the delay in the disposal of the case.
5.12.5 When an employee who has been placed under suspension is fully
exonerated, the period of suspension shall be treated as on duty and he
shall be paid the pay and allowance to which he would be entitled if he
was on duty LESS the subsistence allowance already drawn by him.
5.13 APPEALS:
5.13.1 Appeal against order imposing penalties:
An employee may appeal against any order with-holding promotion or
imposing a major penalty upon him. The appeal shall lie to the Authority
specified in the schedule.
5.13.2 Appeal against other orders:

An employee may appeal against an order which:
i) Denies or varies to his disadvantage, his pay, allowance, provident fund
or other conditions of service as regulated by rules or by agreement or:
ii) Interprets to his disadvantage the provisions of such rules or agreement
to the Authority as per schedule:
iii) In all other matters, an employee may send a representation or a petition
in the manner prescribed in these rules.
5.14 PROCEDURE FOR SUBMISSION OF APPEALS:
5.14.1 An appeal shall be preferred to the Appellate Authority within one month
of the date of the order appealed against.
37
5.14.2 Submission of an appeal to an authority other than Appellate Authority or
forwarding of advance copies to any authority shall be deemed to be
misconduct.
Provided that where the appellant does not get any reply within 15
days of the submission of the appeal, he may send a copy of the appeal
direct to the next higher Appellate Authority explaining the circumstances
necessitating his doing so and send a copy thereof to the authority to
whom his appeal was originally submitted.
5.14.3 No appeal or representation in respect of the matters other than those
specified in rule 5.13 shall be entertained.
5.14.4 The appeal shall be addressed to the authority to whom the appeal lies,
shall contain all material statements and arguments on which the
appellant relies, shall not contain any disrespectful or improper language
and shall be complete in itself.
5.15 TRANSMISSION OF APPEALS:
5.15.1 The Authority which passed the order appealed against, shall within 15
days of submission of the appeal, transmit it to the Appellate Authority
informing the appellant that his appeal has been forwarded except where
he decides to with-hold the appeal.
5.15.2 Where an appeal is with-held, the appellant shall be informed of the fact
and reasons therefor within 15 days of the receipt of the appeal.
5.15.3 An appeal may be with-held if:
i) It does not comply with any provisions of rule 5.14 or it is not submitted
within the period specified in the rule:
ii) It is a repetition of an appeal already decided and no new facts or
circumstances are adduced.
5.15.4 A register of appeals with-held, giving the substance of the appeals and
reasons for their being with-held shall be maintained by each authority
competent to pass order on such matters and once in a quarter this
register shall be put up to the Appellate Authority for review.
5.16 CONSIDERATION OF APPEALS:
5.16.1 The Appellate Authority shall consider whether the findings are justified
and whether the penalty imposed is excessive, adequate or inadequate
and pass orders within two months of the date of appeal. Representations
and petitions will also be similarly reviewed as to the fairness of the
decision already taken.
38
5.17 REVIEW:
5.17.1 Notwithstanding anything contained in these rules, the Chairman-cum-
Managing Director may call for the records of any case involving a major
penalty and after reviewing the case, pass such orders thereon as he may
deem fit.
5.17.2 Notwithstanding anything contained in these rules, the Board may call for
the records of any case in respect of which it is the Appellate Authority,
involving a major penalty and after reviewing the case, pass such orders
as it may deem fit.
39
(Annexure: Ref. Clause – 5.3.2.)
S C H E D U L E*
DISCIPLINARY
AUTHORITY Appellate
Appointing/
Level of Authority/
Promoting
Employees Reviewing
Authority
Major Minor Authority
penalty Penalty
President of India or
President of All the President of
authority empowered in that President of India.
India India appointees.
behalf.
All employees from

Chairman-cum- E-6 and above
Chairman-cum-Managing
Managing grade except those Board of Directors.
Director.
Director appointed by the
President of India.
Director/ All employees in
Executive Director/ Chairman-Cum-
Executive the grade of E-4 &
Director. Managing Director.
Director E-5 under control.
All employees in
Executive Director/
General Manager the grade of E-0 to General Manager
Director
E-3 under control
i) For review of
minor penalty the
Section In- Appellate Authority
Only non-executive charge/Site shall be GM/ED.
General
General Manager employees under In-charge in
Manager
control. the rank of ii) For review of
DGM. major penalty the
Appellate Authority
will be ED/Director.
NOTE:
(1) Formal order to be issued by Personnel Department or by Site Office In-
charge/Disciplinary Authority where there is no department of Personnel
or the Officer authorized by the Disciplinary Authority.
* Amended vide decision approved by Board of Directors vide item no. 195/3344 in their
195th Meeting held on 13th September, 2011.
40
CHAPTER - VI
LEAVE RULES
6.1 TYPES OF LEAVE:
6.1.1 Subject to the conditions hereinafter laid down, employees shall be
eligible for the following types of leave:
(i) Casual Leave (CL).
(ii) Special Casual Leave (SCL).
(iii) Earned Leave (EL).
(iv) Half Pay Leave (HPL).
(v) Commuted Leave.
(vi) Extra-Ordinary Leave (EOL).
(vii) Quarantine Leave.
(viii) Maternity Leave.
(ix) Study Leave.
(x) Special Disability Leave.
(xi) Leave not due.
6.2 GENERAL:
6.2.1 No leave can be claimed as a matter of right.
6.2.2 All leave shall be applied for in writing through Leave card to the
Competent Authority well in advance. Sanction of leave may not be
presumed and leave asked for shall not be availed of unless it has been
specifically sanctioned.
6.2.3 The Competent Authority to grant leave has the discretion to refuse,
postpone, curtail or revoke leave and also to recall an employee from the
place of leave according to the exigencies of work.
6.2.4 Sundays and other holidays may be prefixed and/or suffixed with the
regular leave with the permission of the Competent Authority.
CLARIFICATION:
(a) Regular leave means E.L, H.P.L, Commuted leave, E.O.L., Leave Not Due.
(b) Holidays including R.H. (if applied for) and weekly off occurring during the
period of leave shall not be counted as leave, excepting in case of
Maternity Leave, Special Disability Leave and Quarantine leave as these
are allowed for specific periods of rest. Holiday includes Sunday also
where Sunday is a closed holiday for the employees. A compensatory
leave granted in lieu of duty performed on a Sunday or a closed holiday
for a full day may be treated as a holiday for the above purpose.
6.2.5 An employee before proceeding on leave shall intimate the Competent
Authority his address while on leave and shall keep the said authority
informed of any change in the address previously furnished.
41
6.2.6 Causal Leave and Special Causal Leave shall not be availed of in
conjunction with any other kind of leave except as provided in Clause
6.3.6 and 6.4.1 (v). Subject to this condition any kind of leave under
these rules can be granted in combination or in continuation of any other
kind of leave.
6.2.7 An employee who remains absent after the end of his leave shall not be
entitled to salary for the period of such absence unless otherwise
approved by the Competent Authority.
6.2.8 An employee is expected to avail of leave granted to him fully, before
resuming duty. An employee on leave shall not resume duty before the
expiry of such leave except with the permission of the Competent
Authority. In all regular leave the employee shall be required to submit
joining report to the Competent Authority after availing the same.
6.2.9 Ordinarily, nature of leave once sanctioned shall not be altered.
6.2.10 In the case of retirement on superannuation or extended period of service
of a permanent employee, he shall be paid an amount equivalent to the
leave salary in respect of the earned leave and HPL standing to his credit
on the date of retirement subject to a maximum leave of 300 days Earned
Leave and 240 days HPL. However, the company reserves the right to
direct an employee to avail of the leave standing to his credit before
superannuation or extended period thereof. If an employee refuses to go
on leave as directed, he shall not be entitled to any payment in lieu of the
leave unavailed of.
6.2.11 In the case of death of a permanent employee or a temporary employee
who has completed one year's continuous service, the dependent/legal
heir (s) of the deceased employee shall be paid an amount equivalent to
the leave salary in respect of the earned leave and HPL standing to the
credit of the employee on the date of his death, subject to a maximum
leave of 300 days Earned Leave and 240 days HPL.
6.2.12 An employee may, in the exigencies of work be called from leave. In such
cases, the employee shall be entitled to count the period from the date he
starts from the station where he is on leave to the date of his resuming
duty for the period and draw travelling allowance as on tour. If the
employee had drawn LTC, only Daily Allowance shall be admissible for the
above period.
6.2.13 No employee shall take up any service or employment anywhere while
he/she is on leave.
6.3 CASUAL LEAVE:
6.3.1 An employee shall be eligible for causal leave to the extent of 15
days in a calendar year.
6.3.2 Casual leave may be taken in terms of half day, for the first or the second
half of the day while the first half of the day ends with the conclusion of
the lunch interval the second half of the day begins with the
commencement of the lunch interval.
6.3.3 Casual leave may be granted for personal work or on grounds of sickness.
42
6.3.4 Ordinarily not more than 10 days casual leave may be granted in one
spell. The Competent Authority at his discretion may sanction Casual
Leave for more than 10 (ten) days in one spell in very special cases.
6.3.5 Casual leave pertaining to any calendar year lapses at the end of that
Calendar year.
6.3.6 Casual leave shall not be combined with any kind of leave except Special
Casual leave taken for the purpose of undergoing "sterilization
operation" supported by proper medical certificate.
6.3.7 In the first year of service, employee shall be granted Casual Leave on a
pro-rata basis depending upon the date of their joining.
6.4 SPECIAL CASUAL LEAVE:

6.4.1 Special Casual Leave to the maximum extent of 30 days in a calendar
year and upto 60 days in exceptional cases may be granted at the sole
discretion of the Competent authority on the following grounds:
(i) When an employee is unable to attend duty in “Special Circumstances”
such as, civil disturbance, curfew, etc. Any strike or bandh in which the
employee of the company participates shall not be treated as “Special
Circumstances”.
(ii) When an employee participates in sports events of the company or of
State, National or international importance in a representative capacity
with the prior approval of the Competent Authority or suffers an injury in
such sports events.
NOTE:
The Chairman-cum-Managing Director may grant Special Casual leave in
relaxation of the above provisions as follows:
(a) Special Casual Leave may be allowed also for enabling an employee to
attend pre - selection trials and/or training in the Coaching Camps at the
State/National Institutes of Sports in connection with participation in
sports events at State/National or International level;
(b) Relax the maximum limit of 60 days provided under the existing rules, for
participation in sports events of the company or of State/ National or
International importance or for attending pre-selection trials and/or
training in the coaching camps at the State/National Level or in case of
injury in such sports events;
Provided, however, that the participation in sports events, pre-selection
trials/training, is in a representative capacity and with the prior approval
of the Competent Authority.
(iii) When an employee donates blood to a recognized blood bank or for
treatment of any other employee of the company or his family, in such an
event, he shall be granted Special Casual Leave for one day on the day of
the transfusion. However when an employee donates blood after duty
hours, Special Casual Leave may be granted on the next following day if
that day happens to be a working day. If blood is donated on a holiday or
on off day, the employee may be allowed Special Casual Leave on the
43
next following day if that day happens to be a working day in respect of
that employee.
(iv) When an employee is allowed to attend technical seminars at his own cost
or for delivering lectures on request from other organizations with prior
approval of the Competent Authority.
(v) For family planning purpose, an employee may be allowed Special Casual
Leave to the following extent:
(a) 14 days Special Casual Leave to female employees for undergoing
Tubectomy Operations. Male employees whose wives undergo tubectomy
operations would be granted 07 days Special Casual Leave if
recommended by Competent Medical Authorities.
(b) 02 days Special Casual Leave to male employees for undergoing
Vasectomy Operations. The period can be extended upto 06 days if the
Competent Medical Authority recommends so.
(c) The Special Casual Leave as above would be exclusive of the intervening
Sunday/holidays.
(d) One day’s Special casual Leave to female employee for IUCD insertions.
(vi) Where an employee requires leave beyond the prescribed limits of Special
Casual Leave for undergoing sterilization operation owing to the
development of post-operation complications, he/she may be allowed
additional Special Casual Leave to cover the period for which he/she is
hospitalized on this account. The benefit of additional Special Casual
Leave may also be extended to the extent of 7 (seven) days in case of
Vasectomy Operation and 14 days in the case of Tubectomy operation
where the employee, though not hospitalized, is not found fit to go to
work by the Medical Officer of the company or by the authorized Medical
Officer.
(vii) The following categories of employees who undergo operation for
recanalization may be granted Special Casual Leave for a period of 21
days or for the actual period of hospitalization, whichever is less:
(i) Unmarried Employees,
(ii) Employees having less than two children,
(iii) Employees desiring recanalisation for substantial reasons (e.g. a person
who has lost all male children/female children after sterilization
operation).
6.4.2 Prefixing or suffixing of Special Casual Leave with other kinds of leave for
the purpose of undergoing sterilization operation/blood donation may be
allowed on production of a certificate from the authorized Medical
Officer/Private Registered Medical Practitioner.
6.5 EARNED LEAVE:

6.5.1 An employee shall be entitled to Earned Leave at the rate of 30 days for
every completed calendar year of service or two & half days for each
calendar month of service. For period which is less than a complete
calendar month, earned Leave shall be allowed at the rate of one day for
44
every 10 days of service subject to the limit of two & half days of earned
leave for the calendar month.
NOTE:
i) For the purpose of this rule "service" means continuous service in the
company including the period spent on any kind of leave except
Extraordinary Leave exceeding 3 months.
ii) An employee who has been placed under suspension shall be entitled to
Earned Leave in respect of the period of suspension if such period is
treated as duty.
6.5.2 Earned Leave may be accumulated upto 300 days.*
6.5.3 Earned Leave shall not be granted for more than 120 days at a time
except on medical grounds and for prosecuting higher studies.
6.6 HALF PAY LEAVE:
6.6.1 An employee shall be entitled to Half Pay Leave for 20 days for each
completed calendar year of service and proportionately in the first year of
service. Employees, who put in six months or more than six months of
qualifying service in the calendar year of superannuation, will be given
credit for half pay leave as if they worked for the whole calendar year and
employees, who put in less than 06 months of qualifying service will get
credit of half pay leave on pro-rata basis. Period of suspension, if treated
as duty, shall count for calculation of Half Pay Leave.
NOTE:
“Completed calendar year of service” means continuous service in the
company for one calendar year including the period spent on any kind of
leave.
15 days and more may be treated as one month and a period of less than
15 days may be ignored for this purpose.
6.6.2 Half Pay Leave may be granted either on medical grounds or for private
affairs.
6.7 COMMUTED LEAVE:
6.7.1 (a) Commuted Leave not exceeding half the amount of half pay leave due
may be granted to an employee on medical grounds or for approved
course of study certified by the Competent Authority, to be in Company's
interest.
(b) Commuted leave upto 03 days (limited to twice a year) without
production of Medical Certificate may also be granted.
6.7.2 Twice the amount of commuted leave availed shall be debited to the half
pay leave due to the employee.
6.7.3 Commuted leave shall be granted only if the Competent Authority has
reason to believe that the employee shall return to duty after expiry of
leave.
* Amended made vide Policy Circular no. 46/2008 dated 30.09.2008 duly approved by
Board of Directors in their 182nd meeting held on 04.09.2008.
45
6.7.4 Where an employee who has been granted commuted leave is permitted
to resign from service or to retire voluntarily without returning to duty,
the commuted leave so granted shall be treated as half pay leave and the
difference between the leave salary in respect of commuted leave and half
pay leave shall be recovered.
Provided that no such recovery shall be made if the retirement is on
grounds of ill health incapacitating the employee for further service or in
the event of his death.
6.8 EXTRA ORDINARY LEAVE:
6.8.1 An employee shall be eligible for extra ordinary leave when no other leave
is admissible to him or when other leave is admissible, the employee
applies in writing for grant of extra ordinary leave.
6.8.2 No employee shall be granted extra ordinary leave for more than 03
months on one occasion. However, Extra ordinary leave for a period in
excess of 03 months but not exceeding 36 months may be allowed on
medical grounds for diseases which require prolonged treatment or for
prosecuting higher studies or for specialized training.
6.9 QUARANTINE LEAVE:
6.9.1 An employee shall be eligible for quarantine leave if a member of his
house-hold (not necessarily belonging to his family) is suffering from any
infectious disease (cholera, small pox, plague, diphtheria, typhus fever
and cerebrospinal meningitis) on a certificate from an Authorized Medical
Officer where such facilities are available and from local public health
authorities/Government health centers where facilities of Authorized
Medical Officers are not available.
6.9.2 An employee shall not be eligible for quarantine leave if he himself is
suffering from any of the infectious diseases.
6.9.3 This leave shall also be admissible on medical certificate from the local
public health authorities if an employee applies from a place other than
the headquarters, where he has gone with due permission. In such cases,
the quarantine leave shall be admissible only to the extent by which the
regular leave, originally granted to him, and falls short of the quarantine
period.
6.9.4 The quarantine leave shall be limited to 21 days (in special circumstances
upto 30 days) at a time, for a particular disease.
6.10 MATERNITY LEAVE:
6.10.1 A female employee is entitled for:
i) Maternity Leave for a period of 180 days with pay from the date of its
commencement.
ii) In case of miscarriage or abortion, the entitlement of the leave shall be
six weeks from the date of miscarriage or abortion.
6.10.2 Maternity leave shall be granted on a certificate from an Authorized
Medical Officer.
46
6.10.3. Leave for Child care:
Leave for child care/development may be granted and shall consist of
maternity leave, earned leave, half pay leave as due and admissible and
balance as extraordinary leave subject to the condition that the total
period of such leave i.e. Maternity Leave, EL, HPL and EOL shall not
exceed twelve months. This facility can be availed till the child attains the
age of one year.
6.11. STUDY LEAVE:
6.11.1. Such category of employees as may be separately prescribed shall be
eligible for grant of leave for prosecuting higher studies if they have put in
05 (five) years of service in the company.
6.11.2. Those who are on probation or on bond or are temporary, or who are
expected to separate from the company within 07 (seven) years, shall not
be eligible for study leave.
6.11.3 Those who are trained outside India at the cost of the company shall be
eligible for study leave only on completion of 05 (five) year's service after
training.
6.11.4 Entitlement of this leave shall be limited to 36 months which shall consist
of earned leave and half pay leave to the extent due, and the rest of the
period as extra ordinary leave.
6.11.5 Leave shall be granted only if the higher studies proposed by the
employee are considered useful to the company.
6.11.6(i) An employee shall, before proceeding on study leave, execute a bond to

serve the company on return from leave:
a) For 03 (three) years in case of study leave up to 02 (two) years.
b) For 05 (five) years in case of study leave for more than 02 (two) years
but upto 03 (three) years.
(ii) The employee will be liable to pay compensation at the following rate in
case of his/her failure to serve the company after study leave for the
bond period indicated above:
(a) Employees drawing a pay upto ` 21,000/- per month. (E-8
grade revised w.e.f. 01.01.1997).
i For failure to serve the company upto 01 year : ` 25,000/-
ii For failure to serve the company upto 02 years : ` 50,000/-
iii For failure to serve the company upto 03 years : ` 60,000/-
(b) For employees drawing a pay in excess of ` 21,000/- per month.

(E-8 grade revised w.e.f. 01.01.1997).
i For failure to serve the company upto 01 year : ` 35,000/-
ii For failure to serve the company upto 02 years : ` 70,000/-
iii For failure to serve the company upto 03 years : ` 80,000/-
In case an employee serves the company for only a part of the bond
period after return from study leave, pro-rata compensation of the bond
amount shall be payable by the employee.
47
6.11.7 An employee shall not accept any regular job during the period he
remains on leave for study/training.
6.11.8 An employee shall, after completion of the leave, submit a report of the
study/training indicating the areas of his study/training useful to the
company.
6.11.9 The company shall not undertake any liability or responsibility on account
of passage or any other arrangements in connection with higher studies
or specialized training during the period of leave.
6.11.10(i) An employee may be considered for grant of study leave only if he would
be left with five years or more of service after his/her return from study
leave.
(ii) No second request for study leave shall be granted unless the employee
has worked for five years on return from study leave.
6.12. SPECIAL DISABILITY LEAVE:
6.12.1 An employee who is temporarily disabled by injury or illness caused in
course of, or in consequence of the due performance of his official duties,
may be granted special disability leave, on certificate from an authorized
Medical Officer.
6.12.2 An employee shall not be eligible for the leave unless the disability
manifests itself within three months of the occurrence to which it is
attributed.
6.12.3 The period of leave granted shall be such as is certified to be essential by
the authorized Medical Officer.
6.12.4 The leave may be granted in one or more spells for any one disability.
6.12.5* Special Disability Leave shall be admissible to employees for their absence
from duty due to injury caused by an accident during journey from
residence to place of work and back subject to fulfillment of the following
conditions: -
(a) The accident should have taken place during the journey from residence
to place of work and back within an hour of the start or end of the duty
period.
(b) The accident has taken place on the normal route of journey between the
employee’s residence and the place of work. The normal route for the
purposes would mean the designated public road/colony road which
general public most commonly use while touching the two points i.e.
employee’s residence and his/her work place and will not include any
shortcuts, lanes, by-lanes or detours.
6.13. LEAVE NOT DUE:

6.13.1 Leave not due may be granted to an employee at the discretion of the
Competent Authority only on medical grounds as advance of half pay
leave, when there is no earned leave or half pay leave at the credit of the
employee.
* Introduced/Addition made vide Policy Circular no. 20/2007 dated 12.03.2007 approved by
CMD, effective from 01st March, 2007.
48
6.13.2 Leave shall be granted only if the Competent Authority is satisfied that
the employee shall return to duty on expiry of leave and should be limited
to half the amount of half pay leave the employee is likely to earn, or 30
days, whichever is less. Leave not due sanctioned as an advance of half
pay leave cannot be treated as Commuted Leave even on medical
grounds.
6.13.3. Leave shall be debited against half pay leave earned subsequently by the
employee.
6.13.4 When an employee who has been granted leave not due voluntarily
retires, resigns, or whose services are terminated for reasons other than
medical unfitness or abolition of post, before resuming duty, the leave not
due shall be cancelled, and the date of voluntary retirement, resignation
or termination as the case may be shall have effect from the date the
leave not due commenced. Such an employee shall be required to refund
the leave salary paid towards leave not due.
6.13.5 Leave not due shall not be granted to newly appointed employees who
are on probation/training.
6.14. LEAVE SALARY:
6.14.1 Leave salary for the period of earned leave, commuted leave, casual
leave, special casual leave, quarantine leave and maternity leave shall be
equivalent to the pay an employee would have drawn as on duty.
6.14.2. Leave salary for half pay leave and leave not due shall be equivalent to
50% of the basic pay as on duty. The dearness Allowance shall be
admissible as per the percentage corresponding to the basic pay so
arrived.
6.14.3. In case of employees superannuating from the services of the company

on 30th June or 31st Dec. in any year, the increment falling due on
following dates, i.e., 1st July and 1st January respectively would be
included in the pay for computation of leave salary.
6.14.4. Leave salary for special disability leave shall be at the rate mentioned at
Clause 6.15.1 for the entire period.
6.14.5. Leave salary shall not be admissible for extra-ordinary leave.
6.14.6. An employee proceeding on leave for 30 days or more may be granted

advance of leave salary due for the first month of leave. Employees will
get half pay for the intervening holidays on HPL and no pay for the
intervening holiday on EOL.
6.14.7 Payment of leave salary for the holidays occurring during the period of
leave shall be made on the same basis as admissible for the period and
nature of leave. In other words, if during a spell of 30 day's extra-
ordinary Leave, there are five holidays’ no salary will be admissible for
these five days. However, the EOL taken will be reckoned only as 25
days. Similarly, if during a spell of 25 HPL, there are five holidays, salary,
for these five days will also be made as admissible for HPL. However, the
period of HPL will be reckoned only as 20 days.
49
6.15. LEAVE SALARY ADVANCE:
6.15.1. Employees proceeding on leave may be granted an advance against the
leave salary subject to the following conditions:-
(i) That no advance shall be granted when the leave taken is less than 30
days. For grant of Leave Salary advance, intervening holidays can be
counted for the purpose of computing the minimum period of 30 days.
(ii) That the amount of the advance shall be restricted to the net amount of
the leave salary for the first month of leave that is clearly admissible to
the employee after deduction on account of Income Tax, Provident Fund,
House Rent, Repayment of advance, etc.
(iii) That the advance shall be adjusted in full against the leave salary. In case
where the advance cannot be so adjusted in full, the balance shall be
recovered from the next payment of pay and/or leave salary.
(iv) That in the case of temporary employees, the grant of advance under
these provisions shall be subject to the production of a surety from
amongst regular/permanent employees.
(v) Advance under these provisions shall be sanctioned to the nearest rupee
only.
50
MEDICAL FACILITIES
Chapter VII (w.e.f 27.03.2015)
7.1 DEFINITION:
7.1.1 An “employee” means any person appointed by the company to any
service or post in connection with the affairs of the company, but excludes
any persons engaged through agency, on contract or by any other mode.
Employees on deputation from other organizations shall be covered under

their Terms & Conditions of Appointment provided they do not avail any
facility from their parent organization.
7.1.2.a Family Means
i) The employee’s wife or husband as the case may be (one only). If the
spouse of the employee enjoys medical facility from his/her employer or
otherwise, such spouse shall not be entitled to the medical facilities of
the company.
ii) a.Legitimate children and step children wholly dependent on the

employee up to the age of 25 (Twenty Five) years or employed or
married, whichever is earlier except the physically (80%) or mentally
challenged as supported by certificate from District Medical Board.
b. Legitimate daughter and step daughter wholly dependent on the employee

till employed/married, whichever is earlier.
7.1.2.b EXTENDED FAMILY

Unmarried/Unemployed brothers/sisters upto the age of 21 years
,widowed daughter (s) and one (01) physically (80%) or mentally
challenged brother/sister or widowed sister wholly dependent if the father
is (a) not alive, or (b) wholly dependent on and residing with the
employee.
Parents, if they are wholly dependent on and residing with the employee
provided that their combined income from all sources should not be more
than ` 6,000/- per month including pension drawn presently.
Family members other than parents will be treated as wholly dependent

upon the employee only if his/her individual income from all sources does
not exceed ` 1,500/- (Rupees Fifteen hundred only) per person per
month.
Note: Incase of extended family, rate of reimbursement shall be limited to

75% of admissible amount i.e. 25% of the admissible amount shall be
borne by the employee concerned.
iii) The spouse of deceased employee appointed on compassionate ground will

be given the option to include in the list of dependent either her dependent
parents or her parents-in-law who are residing with her and are wholly
dependent on her subject to the condition that their income from all
51
sources is less than ` 6,000/- per month. The option cannot be different
for LTC and medical benefits, i.e. the declaration made for LTC will be
applicable for medical facilities as well. The option once exercised, shall be
final and binding and no change will be allowed during the service of such
an employee. Employees are required to give declaration of dependants
yearly with regard to addition or deletion in the list.
7.1.2.c Family for New Entrants (joining on and after 31.12.2014 ) means:-
i) The employee’s wife or husband as the case may be (one only). If the
spouse of the employee enjoys medical facility from his/her employer or
otherwise, such spouse shall not be entitled to the medical facilities of the
company.
ii) Legitimate children and step children (limited to two) wholly dependent on
the employee up to the age of 25 (Twenty Five) years or employed or
married, whichever is earlier except physically (80%) or mentally
challenged as supported by certificate from District Medical Board.
Note1: Extended Family as defined in 7.1.2.b shall not be eligible for any
medical facility.
Note2:Before renewal of Medical Cards in January each year, Personnel Section

shall collect the Income tax return of the parents filed by them/ FORM
26AS-IT Dept./Pan Card with Declaration Certificate.
7.1.3 “Company's Medical Officer (CMO)” means Medical Officer employed in the
Company’s Hospital.
7.1.4 “Authorized Medical Officer (AMO)” means Medical Officer

appointed/retained by the company for the purpose of rendering medical
attendance to the employees and their eligible dependent family members.
7.1.5 “Medical Board” comprises of CMO I/c (IH) and two (02) specialists from IH
and a representative each from Personnel and Finance Section.
7.1.6 “Approved Hospital” means hospital(s) recognized by the Medical Board for
particular places/ particular treatment.
7.1.7 “Registered Medical Practitioner” means one qualified in the western

system of medicine, not below the MBBS standard, and registered in the
appropriate schedule of the State/Union Territory.
The term “qualified” in respect of the medical practitioner in Ayurvedic &
Unani systems of medicines would mean persons possessing recognized
medical qualifications as included in the Schedule II, III & IV of the Indian
Medicine Central Council Act, 1970 as amended from time to time and in case
of homeopathy, it would mean persons possessing the recognized medical
qualifications as notified in Schedule II of the Homeopathy Central Council Act,
1971 as amended from time to time
7.1.8 “Approved Specialist” mean such specialists as have been approved by the
Competent Authority for inclusion in the panel of specialists . For this purpose,
all the specialists attached to the recognized hospital as on the date on which
these rules come into effect shall be deemed to have been included in the
52
panel of specialists. Inclusion in or removal from the panel of any specialist
may be made by the Competent Authority at his discretion from time to time.
7.1.9 “Controlling Officer “ means In-charge of Ispat Hospital or officer delegated

with the powers in respect of these rules by the Medical Board.
7.1.10 “Competent Authority” means the Chairman-cum-Managing Director/

Concerned Director or any other authority empowered by him for this purpose.
The Competent Authority may admit any medical claims in relaxation of the
rule in specially deserving cases.
7.1.11 Company's Hospital means: -

a) For Ranchi : Ispat Hospital (IH).
b) For other places: Hospitals run by the Steel Plants/Clients of the

company, where the facilities of medical treatment at such hospitals are
available to the employees of the company or hospitals approved by the
Company.
NOTE: 1. The Medical Board is empowered to add/ delete/modify/ amend the

list of approved hospitals/ Nursing Homes/ centers for
General/Specialized treatment as and when required.
2. In case of any doubts or dispute regarding the admissibility of any

claim, decision of the Competent authority shall be final.
7.2 GENERAL PROVISIONS APPLICABLE TO ALL OFFICES INCLUDING HEAD

OFFICE, RANCHI
7.2.1 Medical Treatment:

The employees shall be allowed to opt for curative treatment under
Homeopathic, Ayurvedic or Unani/Siddha systems of medicines but at a time
for the same spell of illness of the same patient, reimbursement of medical
expenses will be allowed for only one system of medicine/treatment
excluding pathological, radiological and other methods of diagnosis.
Allopathic Medical treatment shall mean medical treatment involving

outpatient, in-patient and specialist treatment, inclusive of all necessary
pathological, radiological and other methods of diagnosis, as admissible to
the employee and his family as per clause 7.1.2. However this shall not
include the following:
1) Liposuction, Facelift , Weight Reduction or any other Cosmetic Surgery,

Organ Transplant and Stem Cell Therapy
2) Surgery involving enhancement or augmentation of physical attributes

and any performance enhancement procedures.
3) Assisted Reproductive Procedures like Invitro-fertilisation (IVF) and

Surrogacy
4) Intra Cardiac Defibrillator (ICD) devices
53
7.2.2 MEDICAL REFERRAL:
The referral shall include the following:
Out-door and in-door treatment including surgical operation and maternity
service, Pathological or X-Ray Examinations in any approved hospitals.
Such facilities shall however, be admissible only on specific reference by the
CMO I/c (IH) /AMO.
In all the cases of referral, necessary entry for treatment and referrals shall
be made in the Medical Card of the Patients by AMO for records and
reimbursement of medical expenses (wherever applicable).
I. REFERRAL PROCEDURE:
In case of in-door treatment, following procedure shall be followed:
i) For Ranchi Office, the Referral Committee constituted for the purpose will
put up their recommendation to CMO I/c (IH) for his approval (applicable
for approved hospitals as per list).
ii) For other Offices, the following procedure shall be followed:
a) For Referral of routine and /or non-emergency cases, the employee is

required to take prior permission/approval from CMO In-charge IH
through his Controlling Office. No ex- post facto approval will be
accorded in such cases.
In places where Company has its office but there is no hospital in the
approved list, the employee and his dependent family member may
take Indoor Treatment from nearest available hospital/nursing home.
However, reimbursement shall be at actual or CMC Vellore rates,
whichever is less. It is also applicable for employees on deputation to
any other location.
b) In emergency cases, the employee and his dependant family members

can take treatment from any hospital of that location against
production of ‘ photo Identity’ card issued by the Company for the
dependent patient, with intimation to AMO of that location/CMO I/c
(IH) through controlling office. Payment shall be made directly to the
concerned hospital (if approved hospital) provided the bill is supported
by Xerox copy of Identity Proof and Medical Discharge Certificate of
the patient duly endorsed by the treating hospital.
However if it is established by the Medical Board that such treatment

was of routine/non-emergency nature, then the admissibility will be
limited to rate of Ispat Hospital applicable for non-entitled patients.
The difference thereof in such cases will be recovered from the
concerned employee.
c) In non-emergency, cases requiring admission shall be reported to CMO

I/c (IH) through respective AMO and controlling Office Incharge for
approval before issue of Referral Letter which shall be responded by
CMO I/c (IH) within four (04) working days. If the same is not
54
responded within the specified date as above, the concerned medical
bill has to be cleared and recommended for payment by CMO I/c (IH).
d) In case referral is for a specific hospital but treatment is taken in any

other hospital, the referral shall stand cancelled & reimbursement shall
be limited to IH rates.
e) In location where Company has no office, the rate of reimbursement

shall be as per Ispat Hospital rates. In case of non–availability of
item rate in Ispat Hospital reimbursement shall be limited to 50% of
CMC Vellore rates.
f) The cases not covered under any of the above clauses shall be
regulated as per clause (e) mentioned above.
7.2.3 Supply of Medicines:

a) Formulation prescribed by the Company’s Medical Officer shall be
dispensed at the company’s hospital.
b) In case it is not possible to dispense the prescription at the company’s

hospital due to non-availability of formulation or where there is no
company’s hospital, such formulation may be purchased by the employee
and the cost shall be reimbursed to him on presentation of the prescription
and cash memos.
In case formulations are purchased on the prescription of Registered

Medical Practitioner reimbursement shall be made on presentation of
prescription and cash memos duly counter-signed by the AMO/CMO I/c
(IH).
c) Medicine prescribed by the AMO/CMO I/c (IH) will be reimbursed on

presentation of prescription & cash memos
d) In all the cases of referral, both local as well as outstation including

outstation consultations for which station leave permission has been taken,
purchase of medicines for a maximum period of two (02) months will
be permitted in one stretch. For continuation of the medicine for more
than two (02) months, CMO I/c (IH)/AMO concerned should be consulted.
e) A pharmacopia, containing list of admissible and inadmissible medicines

has been drawn up by the Competent Authority, which shall be followed in
all offices of the company. The pharmacopia may be amended from time
to time at the discretion of the Competent Authority. In case of any
dispute regarding reimbursement, the decision of the Competent
Authority will be final.
f) For Ayurvedic/ Homeopathic/ Unani / Siddha system the pharmacopia as

per CSMA rules, as amended from time to time will be followed. The rate
of the fees for the purpose of reimbursement has been limited to ` 100/-
per visit for consultation. The reimbursement will be made on production
of prescription from a Registered Medical Practitioner under Ayurvedic/
Homeopathic/Unani system.
55
Total number of consultations allowed during a period of 30 days would be
restricted to four (04) and the maximum consultation during a week being
restricted to two (02). Indoor treatment under the Indian System of
Medicines (Ayurvedic, Homeopathic & Unani/Siddha) would be admissible
only from Govt. hospitals/Govt. and company recognized Institutions
locally available. In case of treatment under Ayurvedic/ Homeopathic/
Unani / Siddha systems, generally the medicines are given by the
attending physicians. In such cases the cost of medicine is reimbursable.
However cost of Allopathic medicine and all medical tests against
their prescription will not be reimbursed.
Import of Medicine:
g) Medicines not available in Indian market will not be reimbursed unless

these are life saving and their import has been allowed as per
Government rules and regulations in force.
h) Claim for reimbursement of medical expenses should be submitted within

six months from the date of occurrence.
NOTE 1: In case of any dispute regarding admissibility of any medicine

and medical tests the decision of the CMO I/c (IH) will be final.
NOTE 2: Formulations for these rules shall not include tonics and
preparations which are primarily food, toiletries or disinfectants.
7.2.4 Diet Charges:

Diet charges, if any, during the period of hospitalization, shall be borne by the
employee himself, except that in the case of an employee whose basic pay is
`12,237/- or below, the diet charges when paid to the hospital/institution shall
be reimbursed by the company. The reimbursement of diet charges shall be
limited to 50% DA as admissible under TA rule.
7.2.5 Sickness at Places other than Headquarters during tour / leave and for
dependent wards on educational grounds.
(a) When the entitled dependent member staying with the employee
accompanies the employee to out-station on leave or otherwise, medical
treatment, as per these rules will be admissible to him/her during the
leave period provided the employee obtains prior permission in writing for
the same from the Company.
If, however, the sickness spills over the permitted leave period and the
dependent member has necessarily to stay back for treatment,
reimbursement may be allowed provided the employee takes permission
subsequently for the whole period.
(b) When the entitled family member shall go to out-station for short duration
of periods (not exceeding three months on each occasion max limited to
six months in a calendar year) medical facilities as per theses rules may be
allowed to them provided the employee obtains prior permission in writing
for the same. No ex-post facto approval will be accorded in such cases .
56
(c) While on Tour:
Employees falling ill at a place where there is no office/ AMO/ approved
hospital, may be reimbursed the cost of treatment from such
doctors/hospitals as may be convenient to him provided that such doctor
should be a Registered Medical Practitioner qualified under the Allopathic,
Homeopathic, Ayurvedic or Unani systems of medicine.
(d) Children studying outstation :

Employee’s dependent children (limited to 02) studying in locations (Within
India) other than employee’s head quarter shall be permitted medical
treatment for the entire academic session at the place of their study
provided the employee has taken written permission by way of Office order.
7.2.6 Reimbursement of Service Charges: As giving intravenous injection/infusions
are potentially hazardous, it is not recommended that such procedures be
undertaken at places other than authorized doctor’s clinic/hospital/nursing
home/laboratory. Therefore charges for intramuscular injection and minor
dressing only will be reimbursed as per prevailing rates of Ispat Hospital i.e.
` 33/- & ` 55/- respectively at present.
7.2.7 Room entitlement during hospitalization in approved hospital other than in

company’s/Clients Hospital and in referred cases:-
Approved Hospitals Non approved Hospitals (in
all cities)
Category of Employees
Category of Room Monetary Ceiling (`/Day)
`
All employees upto E-3 grade Non-AC Single `1000/-
Room/Shared AC
Room
All employees in E-4 to E-8 AC Single Room `1500/-
grade (Non-Deluxe)
ED/Director/CMD Actual Actual
Note:
The Authorized Medical Officer shall mention the specific room entitlement with
applicable Room rent of the employees in the referral letter relating to that
hospital.
a) In case of Government Hospitals actual room rent will be reimbursed.
b) In case ICU/ICCU/HDU/ITU/MICU the actual will be reimbursed.
c) In case of emergency like accidents and /or for life threatening

diseases/delivery etc. if room as per entitlement is not available, the
employee shall be allowed to take room of higher entitlement upto 48 hours
and thereafter with subsequent approval of the concerned General Manager
supported by a non-availability certificate from the Hospital concerned.
d) The bed entitlement of the employees posted at Offices in Steel plant location
would be at par with the Client’s employee.
7.2.8 Reimbursement shall be allowed as follows to employees of all offices other than
Ranchi in the event, children of such employees upto the age of 12 years take
Hepatitis ‘B’ vaccine:
57
1. For individual pediatric : `150/- per dose (all inclusive) X 3 doses.
dose (Age upto 10 years)
2. For individual pediatric : `200/- per dose (all inclusive)X 3 doses.
dose (For age 10 to 12
years)
Reimbursement shall be allowed as follows, to employees of all offices in the
event their children upto the age of 12 years take following immunization:
Sl. Name of Recommended Doses Maximum Ceiling of

No. Immunizat reimbursement
-ion
1. DPT 3 dose + 2 booster ` 50/- each.
2. MEASLES 1 dose ` 70/-
3. MMR 1 dose `100/-
4. BCG 1 dose `130/-
5. POLIO 5 doses ` 15/- each.
6. RABIES 5 doses ` 20/- each + actual cost of
A.R. vaccine.
NOTE:
The reimbursement would be allowed on production of necessary vouchers by
the employees. Same rate would also be applicable in case of "mass
immunization" using multi-dose vials.
7.3 Arrangement for credit facility/Advance to employees

The company may make suitable arrangements with the approved hospitals for
direct payment of their bills in case of hospitalization of the employees and their
families. The diet charges and such other charges which are not reimbursable
shall be recovered from the pay of the employee concerned. In case it is not
possible to work out any arrangement with the hospitals for direct payment of
their bills, the employee concerned shall make the necessary payment and claim
reimbursement from the company. In such cases the hospital bills shall be
scrutinized and countersigned by the AMO /CMO I/c (IH) who has referred the
patient to the hospital concerned.
The employee may apply for advance in such cases for getting the patient
discharged from the hospital. The application for such advance shall be duly
supported by the proforma/final bill from the hospital where upon 90% of the
bills shall be released as advance. The employee must submit the final bill within
30 days of the withdrawal of the advance failing which the entire amount shall
be deducted from his salary without further reference to him.
7.4 Ambulance charges will be reimbursed as per actual on production of receipt

from the Hospital, Institution and Nursing Homes providing such services.
Reimbursement of local conveyance charges for hospitalization and on release
will be reimbursed as per TA Rules..
58
7.5 CONSULTATION FEES:
Reimbursement of fees paid to the consulting doctors shall be limited to rates

given below:
One time MBBS/BD MS/MD/MDS/ DM/MCH
Consultation S DNB/Diploma
Charges ` 300/- ` 400/- ` 500/-
Note : Applicable for all Offices and on referrals.
7.6 Facility /Reimbursement of Pathological/Radiological Investigation etc.

At places other than Ranchi & Steel Plant locations where there is no hospital
run by the Company or its clients, the pathology/ radiology investigation etc.
may be done on reference / prescription of Authorized Medical Officer/
Registered Medical Practitioner and the reimbursement of expenses in such
cases will be admitted on actual or at the rates of CMC Vellore, whichever is
less, on production of prescription and cash memos.
In case of referral by IH to any approved centre, reimbursement of all charges
(except consultations) shall be permitted only once to the extent of rate
contract with the centers.
In case of Steel Plant Locations, Pathological/Radiological Investigations/tests
will be admitted on the prescription of the Authorized Medical Officer as per the
list provided by the Company as Annexure II.
7.7 SPECIALIZED TREATMENT
a) Dental Treatment:
Excepting provisions of Dentures, gold and silver fillings and orthodontics,
bracing, flossing, dental implantation reimbursement for all other
treatment undertaken in approved hospitals and from approved
centers/specialists shall be allowed on reference from the Authorized
Medical Officers with necessary entry in Medical card. Such bill should be
countersigned by the Authorized Medical Officers. Reimbursement shall be
made as per existing rate contract with the approved clinic (for Ranchi).
For other location (except Steel Plant Location) reimbursement shall be
limited to CMC Vellore rates.
b) Eye and E.N.T. Treatment

Excepting provision of spectacles, contact lenses, LASIK Surgery, hearing
aids and Cochlear implants all other treatment of eye and E.N.T diseases
including ophthalmological and audiometric tests etc, undertaken in
approved hospital and from approved specialists shall be allowed on
reference from the Authorized Medical Officers with necessary entry in the
Medical Card. Such bills should be countersigned by the AMO/CMO. In case
of Phacoemulsification surgery of cataract operation and implantation of
intra ocular lenses, a maximum amount of `25,000/- or actual will be
reimbursed. However, cost of progressive intra ocular lens is not
admissible.
c) Orthopaedic and Knee replacement
Employee and his spouse only shall be eligible for knee replacement
surgery at any of the Company’s approved hospitals on specific
recommendation of CMO I/c (IH) and with the approval of the Competent
Authority. No other cases shall be considered.
59
d) Reimbursement of Cost of Pace Maker, Artificial Valves, stents etc.
The cost of Pace Maker, artificial valves, stents in case of the employees of
the Company and his/her family may be reimbursed restricted to the
actual cost of appliance subject to production of invoice and box of
appliance with details of make and cost etc. Strict screening of
recommendations of replacements of valves etc. is essential and hence
CMO I/c (IH) should satisfy himself in each particular case before
recommending the bills for payment/ reimbursement.
e) Cancer Treatment
Referral shall be limited to the following hospitals only:
1) Tata Memorial Hospital (TMH), Mumbai

2) Thakurpukur Cancer Hospital , Kolkata
3) Tata Memorial Hospital (TMH), Kolkata
4) Any Government Hospital
f) LIST of Approved Hospitals & Centres

Please refer Annexure I (Pg. 61)
7.8 Executive Health Checkup
Executive employees above 50 years posted at Ranchi and other locations can
undergo Comprehensive Health Checkup at Ispat Hospital, Ranchi/Company’s
recognized hospital or client’s hospital as the case may be as per enclosed
Proforma (Annexure III) once in two years. Reimbursement shall be allowed
upto a maximum of ` 3000/- (Rupees Three Thousand only).
7.9 The Chairman-cum-Managing Director reserves the right to modify, cancel or

amend any of the provisions of the Medical Rules.
60
ANNEXURE-I
LIST OF HOSPITALS/INSTITUTIONS WHERE THE EMPLOYEES AND

THEIR DEPENDANT FAMILY MEMBERS MAY BE REFERRED FOR INDOOR
AND OUTDOOR TREATMENT.
I.
II. (A) SAIL Hospitals and other PSU Hospitals
(B) Government Hospitals/Medical College Hospitals & Dental College
Hospitals.
(C) Approved Private Hospitals.
1. Manipal Hospital, Bangalore

2. St. Martha Hospital, Bangalore
3. Bangalore Hospital, Bangalore
4. NMI Narayana Multi Speciality Hospital, Dhankari Road Raipur,
Chattisgarh
5. Kalinga Hospital, Bhubaneswar
6. Apollo Hospital, Bhubaneswar (Subject to approval)
7. HLG Memorial Charitable Hospital, Asansol
8. Apollo Hospital, Chennai
9. CMC Vellore
10. Sir Ganga Ram Hospital, Delhi
11. Escorts Fortis Hospital, Delhi
12. Mission Hospital, Durgapur
13. Apollo Hospital, Hyderabad
14. Bombay Hospital Ring Road, Indore (Subject to approval)
15. Tata Memorial centre (TMC), Kolkata
16. CMRI, Kolkata
17. Thakurpukur Cancer Hospital, Kolkata.
18. Shankar Netralaya, Chennai
19. Shankar Netralaya, Kolkata
20. Mercy Hospital, Kolkata
21. BM Birla Heart Research Centre (Cardio)
22. MTMH Cancer Hospital, Jamshedpur.
23. MPM Hospital Aghanpur, Jagdalpur , CG
24. MGM Navi Mumbai
25. Bombay Hospital and Medical Centre, Mumbai
26. Apollo IRBA, Ranchi
27. Curie Abdur Razzaque Ansari Cancer Institute, IRBA, Ranchi.
29. Seven Hills Health care pvt. Ltd. , Vizag
30. Care Hospital, Vizag (to be reviewed)
31. Tata Memorial Hospital (TMH), Mumbai
(D) List of Approved Centres at Ranchi.
A comprehensive list of Centers and Specialist(s) (eye, dental,

gynecological, pathology etc.) as recommended by Medical Board alongwith
detailed Terms & Conditions duly approved by the Concerned Director from
time to time which shall be available in the Office of Ispat Hospital for
Medical referral purpose.
61
ANNEXURE-II
PROVISIONS APPLICABLE FOR PATHOLOGICAL/ RADIOLOGICAL

INVESTIGATIONS/TESTS AT STEEL PLANT LOCATIONS
Reimbursement of expenditure on Pathological/Radiological

Investigations/Tests prescribed by the Authorized Medical Officer will be
allowed in respect of the following and the treatment facility from the
Authorized Medical Officer is to be availed for a limited period, not beyond 10
days on each occasion.
1.) Blood Haemoglobin & TC/DC of WBC, ESR, Blood Sugar & Blood
Urea, MP, Widal test
2.) Urine Routine and Microscopic, Culture & Sensitivity
3.) Stool For Ova and Cyst
4.) X-Ray Chest PA view, abdomen, KUB & any other parts after
injury.
62
PROFORMA FOR EXECUTIVE HEALTH CHECK UP
Date:
Name: Age: Sex: M/F
Employee No.:
Name of the Post held:
Brief clinical history:
A: Physical Examination
General Systemic
Investigations:
Haemogram Blood Sugar Kidney Function Test
Hb% F S. Creatinine Na+
TLC PP S. Uric Acid K
DLC Urea Calcium
Peripheral Smear Electrolytes Inorganic Phosphate
Lipid Profile Liver Function Test Urine – RE/ME

Total Cholesterol Total Bilirubin Routine
HDL Cholesterol SGOPT Direct Bilirubin Sugar
LDL Cholesterol SGPT Albumin
VLDL Cholestrol Alk. Phosphatase
Triglyceride
Lungs
E.C.G. X –RAY: Chest PA- Dental Check Up
Ultra sound Abdomen , echocardiography, TMT:
Optional : Ca. Scoring / CT angiography heart, P.S.A.
For Female employees - Gynae. Check Up
- Mammography
- PAP Smear
B. Medical Report
1. Haemoglobin level of the officer Normal /Low
2. Blood Sugar level Satisfactory/Normal/High/Low
3. Cholesterol level of the officer Normal /High/Low
4. Liver Functioning Satisfactory/Normal/Dysfunctional
5. Kidney status Normal/Both-One Kidney not functional optimally
6. Cardiac Status Normal/Enlarged/Blocked/Not normal
C. Summary
1. Overall Health of the officer
2. Any other remarks based on the health check up of
the officer
3. Health profile grading
63
CHAPTER - VIII
TERMINATION OF SERVICE
8.1 EVENTUALITIES:
8.1.1 Subject to provisions of the law for the time being in force, the services of
an employee may be terminated by the company on any of the following
grounds:
(i) Death.
(ii) Terms of Contract.
(iii) Medical Unfitness.
(iv) Misconduct.
(v) Unauthorized Absence.
(vi) Resignation.
(vii) Retirement.
(viii) Special Circumstances.
8.1.2 Terms of Contract:
The services of an employee may be terminated by the company by
giving such notice or in lieu of notice period, pay as may be stipulated in
the terms of his appointment. In the absence of any such specific
provisions in the terms of his appointment, the services of an employee
may be terminated in the following manner:
(a) During the period of probation of an employee on his initial appointment
to the company his services can be terminated by the company without
any notice or without assigning any reasons therefor;
(b) After an employee has been confirmed in a post, his services can be
terminated by the company by giving him three month's notice or
payment of three month's salary in lieu thereof.
8.1.3 Medical Unfitness:
The services of an employee may be terminated by the company at any
time in case he has been found medically unfit to discharge his duties
efficiently. The decision of the company in this respect shall be final.
8.1.4 Misconduct:
An employee may be discharged or dismissed from the service of the
company without any notice if he has been found guilty of any
misconduct.
8.1.5 Un-Authorized Absence:
An employee who remains absent without authority for a period of 10
(ten) days, either beyond the period of leave originally granted in his
favour, or otherwise, shall be presumed to have left the service of the
company on his own accord without notice and in that event his service
shall be liable to termination on expiry of ten days period. This shall,
however, be without prejudice to the right of the company to take any
other action against the defaulter as per the terms and conditions of
service.
64
8.1.6 Resignation:
An employee resigning from the service of the company shall be required
to give such notice as stipulated in the terms of his appointment. If there
is no such stipulation in the terms of his appointment, an employee shall
be required to give three month's notice, provided that an employee who
has executed a bond to serve the company for a specific period may leave
the service of the company before completion of the period only after
paying the amount stipulated in the bond.
Under no circumstances, the resignation tendered by an employee whose
conduct is under investigation shall be accepted without sanction of the
Competent Authority to dismiss him.
8.1.7 Retirement:
The services of an employee shall stand terminated at the age of
superannuation, i.e., on attaining the age of sixty (60) years.*
Employees shall retire from the services of the company from the
afternoon of the last date of the month in which he/she attains the age of
superannuation. However, employees whose date of birth is the first day
of the month shall retire from the services on the afternoon of the last
date of the preceding month on attaining the age of 60 (sixty) years.*
Notwithstanding anything contained in these rules, the Chairman - cum -

Managing Director of Company shall, if he is of the opinion for reasons to
be recorded in writing, that it is in the interest of the company so to do,
have the absolute right to retire any executive employee of the company,
below the board level, by giving him notice of not less than three months
in writing or three months pay and allowance in lieu of such notice, after
he has attained the age of 50 (fifty) years or he has completed 30 (thirty)
years of service whichever is earlier.
8.1.8 SPECIAL CIRCUMSTANCES:
Where an employee has been convicted for a criminal offence or where
the Chairman-cum-Managing Director is satisfied, for reasons to be
recorded in writing that it is inexpedient or against the interests of
security to continue to employ an employee, the employee may be
removed or dismissed from service without following any procedure laid
down in Rule 5.5.
* Amendment made vide Policy Circular no. 16/2007 dated 19.02.2007 effective from
14.02.2007.
65
8.2 GENERAL:
8.2.1 Every employee leaving the service of the company shall, before leaving
the company, return all the property, or equipment and tools belonging to
the company issued or lent to him in connection with his employment in
the company. In case he fails to do so, the cost of such property,
equipment or tools not so returned shall be liable to be deducted from his
pay or the amount due to him or recovered otherwise.
On his request, every employee may be furnished with a service
certificate at the time of termination of his service from the company,
giving reasons for termination, duration of employment with the
company, post held by the employee, pay scale of the last post held and
the pay paid to the employee at the time of leaving the company.
66
CHAPTER - IX
PAY, DEARNESS ALLOWANCE AND
ANNUAL INCREMENT
9.1 PAY SCALES:*
The company has evolved its own salary structure for executives in line
with the salary structure of executives of SAIL and implemented with
effect from 01.01.1971. Subsequently the salary structure of executives
was revised effective from 01.01.1975, 01.01.1979, 01.08.1982,
01.01.1987, 01.01.1992, 01.01.1997 and 01.01.2007. And, whereas the
wage structure of non-executives is through negotiation/ Agreement in
line with National Joint Committee for Steel Industry (NJCS) which was
first introduced in October 1970. Subsequently the wage structure of Non-
Executives was revised effective from 01.09.1974, 01.09.1978,
01.09.1982, 01.01.1989, 01.01.1992, 01.01.1997 and 01.01.2007. The
existing salary/wage structure and scale of pay of both executives and
non-executive employees which is effective from 01.01.2007 are
given in Annexure–A to this Chapter. This wage/salary structure shall
be operative till 31.12.2011 for non-executives. The company
reserves the right to determine the scales of pay and allowance of its
employees from time to time.
9.2 PAY FIXATION ON INITIAL APPOINTMENT:
The pay of employees appointed in the company on fresh recruitment
shall be fixed at the minimum of an authorized scale. However, higher
start in the scale may be considered by the Competent Authority in
exceptional cases.
9.3 PAY FIXATION ON PROMOTION:
9.3.1 Pay of an employee promoted to a higher grade shall be fixed in the
higher scale at the stage next above the pay notionally arrived at by
increasing his pay in the lower grade by one increment at the stage at
which such pay has accrued; provided, however, that if an employee is
drawing pay at the maximum of the scale, the pay of the employee will be
raised by giving a notional increment at the rate of the last increment
drawn by him and thereafter fixing his pay at the next above stage in the
higher scale.
CLARIFICATION:
(i) If by fixing the pay as above the pay of the employee goes beyond the
maximum of the grade to which promoted, the difference between the
maximum of the grade and the pay to be fixed, will be treated as personal
pay.
(ii) As and when an employee whose pay has been fixed beyond the
maximum of the grade to which promoted by granting personal pay gets
another promotion, the pay in the higher grade would be fixed by adding
the personal pay to the basic pay in the lower grade.
* Amendment made vide wage revision of executives w.e.f. 01.01.2007 and Tripartite Wage
Agreement signed on 22.09.2010 in respect of non-executive regular employees.
67
9.3.2 Pay Fixation Anomaly due to Promotion before and after Revision
of the Scales:
In cases where the senior employee promoted prior to revision is drawing
less pay than his counter-part promoted after revision, the pay of the
senior promotee would be stepped up to the level of the pay of his junior
provided;
(a) The affected person is senior in the grade.
(b) Both the junior and senior have the same channel of promotion.
(c) The senior person has been drawing equal or higher basic pay with same
or earlier increment date in the lower grade.
(d) The next date of increment of the senior person after stepping up will be
the same as that of junior.
(e) Stepping up of pay will be done with effect from the date the junior
started drawing higher pay.
NOTE:
With regard to channel of promotion the employee would be grouped into
two categories as mentioned below: -
A. Technical Group: Engineering line, Design & Drafting line, Rep.,

Systems, DTC, Tech. Lib. & Information Centre and any other allied
departments which are classified as Technical Departments.
B. Non Technical Group: Personnel & Administration, Finance, Purchase &
Stores, Estate, Co-ordination, PRO, Hindi Cell and any other departments
which are classified as Non-Technical Departments.
9.3.3 If an employee is promoted during latter half of his incremental year and
he draws after the date of his next increment, a lower salary than what he
would have drawn had he been promoted immediately after drawal of
increment, the employee concerned shall be given one additional
increment on the date his increment was due in lower grade, and his
incremental date would thereafter remain the same as in the lower grade.
9.3.4 Pay of departmental candidates appointed against open advertisement/
internal circular will be fixed as on promotion, unless otherwise specifically
mentioned in the advertisement/circular.
9.3.5 The pay of an employee allowed to officiate in a higher post shall be fixed
as in the case of promotion as per Rule 9.3.1.
9.4 STAGNATION INCREMENT:
9.4.1 Executives would be allowed upto a maximum of three stagnation

increments, one after every two years, upon reaching the maximum of
the revised scales of pay provided the executive is rated “good” or
above.*
* Amendment made vide Office Order No.11.73.3/8007/2009 dated 24.11.2009 in respect

of wage revision of executives w.e.f. 01.01.2007.
68
In case of non-executive employees, they will continue to draw increment
in their respective pay scales during the operation of the agreement.*
9.4.2 Stagnation increment (s) of executive employees shall be treated as Basic
Pay for all purposes except for further stagnation increments and
promotion benefits**.
9.5 TREATMENT OF SPECIAL INCREMENTS:
9.5.1 The special increments allowed for small family norms would be kept
separate as per the existing rules.
9.5.2 Special increments granted for professional qualifications would be
adjusted in the revised pay scale if there were a scope for adjustment. In
case, there is no scope the balance amount would be kept separate as
personal pay, which will be added to the basic pay for fixation of pay on
promotion.
9.6 DEARNESS ALLOWANCE:
9.6.1 Dearness Allowance (DA) to the employees in the revised scales of pay
will be NIL as on 01.01.2007 at AICPI 126.33 (Base 2001 = 100). Further
increase/decrease in DA would be governed as per the following
provisions:*
(i) DA shall be revised every quarter on 1st April, 1st July, 1st October and 1st
January every year based on the increase/decrease in quarterly average
of AICPI for the quarters, December-February, March-May, June-August
and September-November respectively over AICPI 126.33 (Base
2001=100).*
(ii) The percentage increase/decrease in quarterly average of AICPI for the
above quarters would be taken into account upto one decimal point.
(iii) 100% DA neutralisation for employees notionally linked to AICPI 126.33

(Base 2001 = 100) as on 01.01.2007. Based on the revised DA scheme,
DA rates would be as per Annexure-B to this chapter applicable from
01.01.2007.*
(iv) For computing the quantum of DA payable on this basis, fraction of 50

paise and above will be rounded off to the next rupee and fraction below
50 paise will be ignored.
9.7 ANNUAL INCREMENT:
9.7.1 These rules shall regulate the grant of Annual Increments in a time-scale
and shall apply to all employees of the company appointed in regular
time-scale of pay. The company reserves the right to modify, alter,
amend or cancel any of these rules without notice. The rate of annual
increment in the revised pay scales w.e.f. 01.01.2007 shall be 3% of
Basic Pay for both executive and non-executive employees.*
* Amendment made vide Tripartite Wage Agreement signed on 22.09.2010 in respect of

non-executive regular employees.
** Amendment made vide Office Order No.11.73.3/8007/2009 dated 24.11.2009 in respect

of wage revision of executives w.e.f. 01.01.2007.
69
9.7.2 Regulation of Annual Increment:
(a) An increment in a time-scale shall ordinarily be drawn as a matter of
course unless it is withheld.
(b) The following shall count for increment: -
(i) All duty in a post on time-scale counts for increments in that time-scale.
(ii) Service in another post in an identical or a higher scale of pay.
(iii) All leave including extra-ordinary leave except to the extent indicated in
rule 9.7.4 (d).
(iv) Joining time in continuation of duty.
(v) Joining time in continuation of leave if the last day of leave immediately
before commencement of joining time counts for increment in the post.
(vi) Foreign services in the time-scale applicable to the post on which the
employees held a lien.
(vii) Period to temporary disablement, whether total or partial, for which
compensation has been paid either under the Workmen’s Compensation
Act, 1923 or otherwise.
9.7.3 Dates of Annual Increment:
(a) The date of annual increment of an employee shall be either 1st
st
January or 1 July of a year and shall be determined in the manner
indicated below: -
(i) An employee, who is appointed or promoted on any date during the
period, 1st January to 30th June of a year, shall draw annual increment in
the time-scale applicable to him, on 1st January every year.
(ii) An employee who is appointed or promoted on any date during the
period, 1st July to 31st December of a year shall draw annual increment in
the time-scale applicable to him, on 1st July every year.
(iii) In case of employee superannuating from the services of the company on
30th June and 31st December in any year, the increment falling due on the
following day i.e. 1st July and 1st January respectively would be included in
the pay for computation of leave salary and gratuity.
(b) Where an employee joins the company in the same or equivalent scale of
pay from SAIL or its subsidiary on transfer terms, having a different
system of grant of increments, the grant of increment to him shall be
regulated as under: -
(i) If, but for his transfer, he would have drawn his next increment in
SAIL/its subsidiary on any date during the period, 1st January to 30th
June, he shall draw his next increment in the company on 1st
January every year.
(ii) If, but for his transfer, he would have drawn his next increment in
SAIL/its subsidiary on any date during the period, 1st July to 31st
st
December, he shall draw his next increment in the company on 1 July
every year.
70
(c) For the purpose of these rules, the date of increment in the higher grade
on promotion shall be determined with reference to the date of the order,
irrespective of the date of assumption of charge of the higher post by an
employee provided that where he himself delays the assumption of
charge the date of increment shall be determined with reference to the
date on which he actually takes over charge of the higher post.
(d) Employees on promotion may be allowed to draw their normal increment
on the due date without reference to promotion period in higher scales.
The same will be automatically regularized once they are deemed to be
confirmed.
9.7.4 Regulation of Increment in Special Cases:
(a) Where an employee is appointed on probation, an increment shall be
granted to him only on the satisfactory completion of the period of
probation but it shall be effective from the date otherwise applicable to
him.
(b) The period of officiating promotion to a higher post shall count for
increment in the higher grade only when such officiating promotion is
followed by regular appointment without break.
(c) In the case of an employee on deputation to the company, grant of
increment will be regulated under Rule 9.7.3 (a) if the appointment is in
the company’s scale of pay. Where the employee draws pay in the scale
of pay applicable to him in the lending organization, he shall draw
increments according to the rules of such organization.
(d) Where an employee has been granted Extra-Ordinary Leave otherwise
than on medical certificate or for prosecution of higher studies or for
specialized training in the interest of the company, the date of his
increment shall be shifted for every spell of 180 days of such leave falling
in the year to which the increment pertains to the period of six months
e.g. from 1st January to 1st July and from 1st July to 1st January and so on.
(e) Increment is not admissible to an employee under suspension. If, on the
conclusion of disciplinary proceedings, the period of suspension is treated
as spent on duty, the employee shall be given such increment(s) to which
he would have been entitled had he not been suspended, if the period of
suspension is not treated as duty, the grant of increment to him shall be
regulated in the manner laid down in rule 9.7.4 (d).
(f) If the penalty of withholding of increment is imposed on an employee, the
withholding authority shall state the period for which it is withheld and
whether the postponement shall have the effect of postponing future
increments. Such cases shall be regulated as under:-
(i) If the punishment order lays down that the postponement shall not have
the effect of postponing future increments (i.e. the punishment has no
cumulative effect), the employee shall be allowed on the expiry of the
specified period, the pay which he would have drawn had his increment
not been withheld.
(ii) If the punishment order specifies that the postponement is to operate to
postpone future increments (i.e. the punishment has cumulative effect),
he shall not be allowed the increment which he would have drawn but for
the penalty, he shall be allowed only the increment next to the pay drawn
by him.
71
(g) If an employee is reduced as a measure of penalty to a lower stage in his
time scale, the authority ordering such reduction shall indicate the date
form which the penalty shall take effect and the period (in terms of years
and months) for which it shall be operated and the stage in the time-scale
to which the employee is reduced and whether, on restoration, the period
or reduction shall operate to postpone future increments and, if so, to
what extent (in terms of years and months). The grant of increment in
such cases shall be regulated in the same manner as under Rule 9.7.4 (f)
but his pay will remain constant at the particular stage to which it has
been reduced for the entire period of reduction.
(h) If an employee, is reduced as a measure of penalty to a lower grade or
post or to a lower time-scale, the authority ordering the reduction may or
may not specify the period for which the reduction shall be effective, but
where the period is specified, that authority shall also state whether on
restoration, the period of reduction shall operate to postpone future
increments and, if so, to what extent. In the latter case, grant of
increment shall be regulated under Rule 9.7.4 (f).
(i) If an employee is promoted/appointed to a higher post during the latter
half of his incremental year and he draws, after the date of his next
increment in the lower grade, pay lower than that he would have drawn
had he been promoted/appointed immediately after the drawal of such
increment, the employee concerned shall be given an increment in the
higher grade on the date on which his next increment was due in
the lower scale and his increment date would thereafter remain the same
as in the lower scale.
9.7.5 Date of Increment on Revision of Scale of Pay:
Where the pay scale of an employee is revised, otherwise than as a result
of general wage/pay revision, from any date during the period 1st
January to 30th June, the date of his next increment in the revised scale
shall be 1st January of the following year and thereafter 1st
January every year. Similarly, if the pay scale is revised from any date
during the period, 1st July to 31 December, the date of next increment in
the revised scale will be 1st July of the following year and thereafter 1st
July every year provided that: -
(a) If the scale of pay of an employee is revised during the latter half of his
incremental year; and
(b) If this pay in the revised scale is fixed at an amount which is less than the
pay that he would have received after drawal of his next increment in the
pre-revised scale, had his scale of pay not been revised; then, he will
draw an increment in the revised scale on the date on which his next
increment in the pre-revised scale would have been due and that date
will, thereafter, be the date of his subsequent increments in the revised
scale.
72
ANNEXURE – A
( CLAUSE 9.1 OF CHAPTER – IX )
SALARY STRUCTURE - EXECUTIVES
1.0 SCALES OF PAY OF EXECUTIVES WITH EFFECT FROM 01.01.2007:*
Code Pay Scales (`)
E-0 12600-3%-32500/-
E-1 20600-3%-46500/-
E-2 24900-3%-50500/-
E-3 32900-3%-58000/-
E-4 36600-3%-62000/-
E-5 43200-3%-66000/-
E-6 51300-3%-73000/-
E-7 51300-3%-73000/-
E-8 51300-3%-73000/-
E-9 62000-3%-80000/-
DIRECTORS:
Schedule ‘B’ 75000-3%-100000/-
CMD:
Schedule ‘A’ 80000-3%-125000/-

1.1 NON-PRACTICING ALLOWANCE TO THE MEDICAL EXECUTIVES:**
The rates of non-practicing allowance to the medical executives with
effect from 21.10.2009 will be as follows:
Qualification Percentage of Basic Pay

MBBS 20%
MBBS with Diploma 22.5%
PG Degree 25%
The Non-Practicing Allowance (NPA) shall replace the Non-Practicing Pay

payable to doctors w.e.f. 21.10.2009 and the above NPA would not be
counted for any purpose like PF etc.
* & ** Incorporated vide Office Order No. 11.73.3/8007/2009 dated 24.11.2009 in respect of
wage revision of executives w.e.f. 01.01.2007 approved by CMD.
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WAGE STRUCTURE - NON EXECUTIVES:
2.0 SCALES OF PAY OF NON-EXECUTIVES WITH EFFECT FROM

01.01.2007:*
This scale of pay shall be operative till 31.12.2011. Employees will
continue to draw increment in their respective pay scales during operation
of this wage structure.
Code Scale of Pay (`)
S- 1 15830 -3% - 22150/-

S- 2 16300 -3% - 23200/-
S- 3 16800 -3% - 24110/-
S- 4 17100 -3% - 25540/-
S- 5 17300 -3% -27540/-
S- 6 17500 -3% - 30070/-
S- 7 17600 -3% - 31230/-
S- 8 17700 -3% - 32420/-
S- 9 17800 -3% - 35480/-
S- 10 17900 -3% - 42030/-
SL – 1 17500 -3% - 30070/-
SL – 2 17600 -3% - 31230/-
SL – 3 17700 -3% - 32420/-
SL – 4 17800 -3% - 35480/-
* Incorporated vide Tripartite Wage Agreement signed on 22.09.2010 in respect of wage

revision of non-executive regular employees w.e.f. 01.01.2007.
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ANNEXURE –B (CLAUSE – 9.6.1 (III), CHAPTER – IX)
RATES OF DEARNESS ALLOWANCE WITH EFFECT FROM 1.1.2007:
Quarter Beginning from Average AICPI DA as percentage (%) of

(Base 2001=100) revised Basic pay
01.01.2007 2884 0.0
01.04.2007 2907 0.8
01.07.2007 2922 1.3
01.10.2007 3006 4.2
01.01.2008 3050 5.8
01.04.2008 3065 6.3
01.07.2008 3150 9.2
01.10.2008 3256 12.9
01.01.2009 3362 16.6
01.04.2009 3370 16.9
01.07.2009 3416 18.5
01.10.2009 3614 25.3
01.01.2010 165.33 30.9
01.04.2010 170.33 34.8
01.07.2010 170.67 35.1
01.10.2010 176.67 39.8
01.01.2011 180.67 43.0
01.04.2011 186.0 47.2
01.07.2011 186.0 47.2
01.10.2011 192.0 52.0
01.01.2012 198.0 56.7
01.04.2012 198.0 56.7
01.07.2012 204.0 61.5
01.10.2012 211.33 67.3
01.01.2013 216.67 71.5
01.04.2013 221.0 74.9
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CHAPTER – X
ALLOWANCES
10. TRAVELLING ALLOWANCE RULES:
INTRODUCTION
Travelling Allowance is in the nature of reimbursement of reasonable

expenditure, as determined by the company, wholly, necessarily and
incurred in travel, Boarding and Lodging while the employees are required
to undertake journey on duty or on transfer. Reimbursement of such
expenses is not intended to be a source of income to the employees.
10.1 OBJECTIVE:
10.1.1 To define and lay down company’s policy and rules on reimbursement of
expenses incurred on official travel in India.
10.2 SCOPE:
10.2.1 These rules shall cover all employees of the company for journeys in
India.
10.2.2 Deputationists in the company’s service or company’s employees on

deputation outside shall be governed by the terms and conditions of their
deputation.
10.2.3 These rules shall also cover trainees, candidates called for interview or
any other person required performing company’s work, as specified.
10.3 DEFINITIONS:
10.3.1 “Employee” means persons employed by the company including

temporary employees and those on probation but does not include part-
time or casual employees. Trainees and employees on contract service on
consolidated pay (in case no specific Grade is defined in appointment
letter) will be treated at par with regular employees of their equivalent
basic pay in the event they are required to undertake journey on duty.
10.3.2 “Family” means:
(i) Employee's wife or husband, as the case may be, residing with the
employee (Not more than one spouse is included in the term “family”).
(ii) Legitimate children including legally adopted children and stepchildren

sons/daughters, widowed daughters, parents, step mother, wholly
dependent on and residing with the employee (as defined under Chapter
VII-Medical Facilities)
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Scholarship/stipend received by the children of employee will not be
treated as income for the purpose of deciding dependency on the
employee.
10.3.3 “Pay” means basic pay together with deputation pay, personal pay,
special pay and non-practicing pay. In the case of re-employed
pensioners, pension plus pensionary equivalent, shall be treated as pay.
10.3.4 “Day” for the purpose of calculating daily allowance is to be taken as the
period of 24 hours from the scheduled time of departure from the
Headquarters in respect of any particular tour.
10.3.5 “Transfer” means movement of an employee from the Headquarters to

another station where he is posted.
10.3.6 A “tour” is a journey undertaken for company’s work out of the

Headquarters where the employee is posted. Each office will define the
geographical/municipal limits of the “Headquarters” beyond which TA/DA
will be payable with the approval of the concerned Director. A tour will be
deemed to have commenced from the scheduled time of departure of the
mode of transport and shall end at the actual time of arrival of transport
at the Headquarter station.
10.4 TRAVELLING ALLOWANCE:
10.4.1 An employee will be eligible for travelling allowance, if journeys are

undertaken for the following purposes:-
a) Tour.
b) Appearing in Departmental Examination, Interview or Selection Test

conducted by the company.
c) Recall from leave.
d) Participation in sports/cultural events representing the company.
e) Participation in training programmes, seminars and conference as

nominated participant/faculty.
f) Appearing in Court as jury, assessor, witness (only for company’s work)

and departmental enquiry.
g) Receiving National Awards.
h) Appearing as prosecution witness on behalf of the State.
i) Employees of the company appearing as accused/co-worker/assisting

officer in Departmental/Vigilance enquiry.
j) Medical Examination and/or treatment.
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k) Superannuation/Retirement/VRS, journey of family in the event of death
of employee, discharge/termination on medical grounds.
l) Appearing for interview for appointment in the company.
m) Journey to join duty on first appointment in the company.
10.4.2 In cases in which other public sector undertakings need our employees as
prosecution witness on their behalf, such employees shall be covered
under TA Rules of the Company. However, such undertakings may be
requested to pay TA/DA as per entitlement under MECON Rules to the
Company.
10.4.3 “Entitlement” of employees in different grades as existing for TA is as

follows:-
(a) Employees in S-1/ (i) 3rd AC by Rail, Middle class (if there are more
S-2 grades with less than two classes) by waterways `2.00 per km
than 5 yrs. of services. by road or at actual whichever is lower.
(b) Employees upto S-9 (ii)2nd AC/CC by Rail, Highest class by

grades (excluding waterways, ` 3.85 per km. by road or at
employees covered actuals, whichever is less.
under category (a)
above.
(c) Non-executive (iii)2nd AC/CC by Rail, Highest class by

grade and executives waterways, ` 7.00 per km. by road or at
in E-0 to E- 3 grade actuals, whichever is less.
(d) Executive in E-4 (iv)1st AC/CC by Rail, Highest class by

grade and above waterways, Economy equivalent by Air,
` 9.50 per km by road or at actuals,
whichever is less.
a) Whole time Directors/Part Time Directors/Non-
Official Directors may travel by air in Executive
Class.
b)Employees in the grade as given in (b) (c)&
above may travel in Rajdhani and Shatabdi
express as per entitlement.
Note :The austerity measures adapted by management in 1998 for controlling cost
decided that all officers (up to the level of General Manager) should travel by
train in AC 2 tier (or as per their eligibility if it is not higher than AC 2 tier) on
official tour which are not reimbursable by client. Travel by Air/entitled Railway
class may be permitted for tour which are reimbursable. This arrangement shall
remain in practice till further orders.
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10.4.4 Further entitlement of employees for Travelling Allowance (TA):
1. a) Actual fare for journeys for official work performed during tour period.
b) Road mileage for use of their own vehicle for official work on tour.
c) Reservation charges including charges for booking/e-booking, commission

charges to agents and all other surcharges levied for purchase of air/rail
tickets, within reasonable limits.
d) All charges levied for cancellation, only if the journey is cancelled due to
official reasons.
2. An employee may travel other than shortest route if approved by the

3. For rail journey submission of xerox copy of Rail Ticket is mandatory and
for air journey, air jacket/e-ticket with boarding passes must be
attached with TA bills. However, an authority not below the level of E-8
may waive such stipulatation in genuine cases.
4. * Executives who are entitled to travel by air are allowed to travel by

economy class in specific sectors/destinations which takes more than 24
hours of journey time by train for chargeable jobs only. The tours of the
entitled executives in those sectors/destinations will be allowed on the
approval of the concerned General Manager.
List of those specific sectors/destinations is given in Annexure at

Page No. 100.
10.4.5 Journey between two places connected by train should as a rule, be

performed by train only. This includes suburbs of Metropolitan cities.
However only in inescapable circumstances, road journey may be
undertaken. Employees in grade of E-7 and above should be provided
company owned/arranged transport. For employees below E-7 grade
necessary sanction be obtained from the Controlling Officer who will be
required to record the reason necessitating the road journey. In such
cases also the company as enumerated above will provide transport.
10.4.6 For journey from Ranchi to Bokaro, Dhanbad and Jamshedpur and from
Ranchi to Jamshedpur and Chakradharpur and vice-versa by officers of the
rank of DGMs and above, actual taxi fare shall be reimbursed.
10.4.7 For travel between Bangalore and Ranchi, Durgapur and Bhilai and
Durgapur and Rourkela, an employee may travel via Kolkata and
reimbursement for travel expenses will be made accordingly. For to and/or
travel between Ranchi and places like Bangalore/Chennai journey by Air
should be via Kolkata. For Mumbai to Pune, the journeys shall be by train.
79
10.4.8 Employees on tour from Bhilai to Ranchi and travelling by Mumbai-Howrah
Geetanjali Express with ticket upto Tatanagar should break their journey at
Rourkela to board Puri-Hatia Tapaswani Express or Allepey-Dhanbad
Express for reaching Ranchi. In that event, employees concerned will also
be allowed reimbursement of fare as charged by Railway from Bhilai to
Tatanagar by Geetanjali Express, and from Rourkela to Ranchi as per rules
10.4.9 For every 10 paise or part thereof increase in cost of petrol, the rate of
entitlement per Km by road would be escalated by 3.0%, petrol rate base
being ` 5.15/- per litre. Rate of road mileage would be based on the petrol
price at Ranchi and will be applicable to all offices.
10.4.10 Employees going to Tata from Ranchi and vice-versa to board the
convenient/connecting trains at Tata on official tour will be provided
transport by the company or will be reimbursed travel expenditure for their
travel. However, in the event of non-availability of transport from the
company, if an employee undertakes journey by self-hired taxi, the
reimbursement of transport hire charges will be made on the actual,
limited to the amount/expenses which the company would have incurred
had the transport been arranged by the Company. This facility will be
available only with the approval of the concerned General Manager.*
*Introduced vide Policy Circular No. 58/2009 dated 29.04.2009 with immediate effect
approved by CMD.
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10.5 DAILY ALLOWANCE
10.5.1 An employee shall be eligible for daily allowance if journeys are
undertaken for official purposes such as: -
a) Tour.
b) Appearing in Departmental Examination, Interview or Selection Test
conducted by the company.
c) Recall from leave.
d) Participation in sports/cultural events representing the company.
e) Participation in training programs seminars and conference as nominated
participant/faculty.
f) Appearing in Court as jury, assessor, Assisting officer, defense assistant,
accused, witness (only for company’s work), departmental or vigilance
enquiry, enquiry under Whistle Blower Policy & Fraud Prevention Policy
etc.
g) Receiving National Awards.
h) Appearing as prosecution witness on behalf of the State.
10.5.2 Daily Allowance rates
(1) Revised entitlement of Daily Allowance:
Grades All Locations

S-1 to S-11 `300/-
E-0 to E-3 `380/
E-4 to E-6 `490/
E-7 to E-8 `600/
E-9 and above `670/
(2) Daily Allowance on own arrangement:
Grades All Locations

S-1 to S-11 `415/
E-0 to E-3 `670/
E-4 to E-6 `820/
E-7 to E-8 `900/
E-9 and above `970/
(3) Lodging Charges:
Grade Specified Locations Other Locations
S-1 to S-6 & SL-1 `800/- or actuals `700/- or actuals
whichever is lower whichever is lower
S-7 and above ` 1000/- or actuals ` 900/- or actuals
whichever is lower whichever is lower
E-0 to E-3 3 star hotel or actuals 3 star hotel or actuals
limited to `1400/- limited to ` 1200/-
E-4 to E-6 4 star hotel or actuals 4 star hotel or actuals
limited to ` 1900/- limited to ` 1700/-
E-7 & E-8 4 star hotel or actuals 4 star hotel or actuals
limited to ` 2200/- limited to ` 1900/-
E-9 and above Actuals Actuals
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NOTE:
1. For this purpose, Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Ahmedabad,
Bangalore, Pune, Kanpur, Nagpur, Lucknow and Jaipur will be reckoned as
“Specified Locations”. Any city classified as “A” for the purpose of CCA by the
Central Govt.also, would be included in the “Specified Locations”.
2. The ceiling on lodging (hotel) rates would exclude the levies, taxes etc.
3. Actual lodging charges if the employee stays in Company’s Guest House or at a

hotel of entitled or lower star ranking or hotels approved by Govt. or tie-up-
hotels
4. If the employee stays in a higher starred hotel other than entitlement or in a

hotel other than those specified above, the lodging charges would be limited to
the monetary limits prescribed as above.
5. Where bills do not separately indicate rates for boarding and lodging, 50% of
charges shall be reimbursed towards lodging, subject to the ceiling prescribed.
Reimbursement of DA shall be limited to the entitlement.
6. Employees may also avail single occupancy in double room as per their
entitlement.
7. Lodging charges may be reimbursed on production of bills even if the employee

has to pay lodging charges for more number of days than for which DA is
admissible under the TA rules, on account of the check-in and check-out
timings.
8. When during tour, an employee has to pay for hotel accommodation for the
same day at two stations; hotel bills for stay in both the hotels may be
reimbursed.
9. DA will be admissible for a halt upto 30 days at any one time. Full DA will
however, be paid where halt beyond 30 days is approved by the CMD/Directors.
10. In case of stay, at company’s guest house and tie-up hotels, actual lodging
charges will be reimbursable.
11. Where employees stay in star hotel of higher entitlement or incur more
expenditure on lodging than entitled, controlling Director/ CMD can make
relaxation for individual cases based on merit and circumstances of each case.
12. Tie-up arrangements may be allowed to be made with higher starred

hotels/non-starred hotels (beyond monetary limits) to overcome the shortage of
accommodation.
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13. Tie-up arrangements of hotels by individual office/site-office shall be applicable
for all other offices/site-offices.
10.5.3 When on tour, the entitlement of employees for DA will be regulated in

the following manner:
i) When the entire tour extends for more than 24 hours (including travel
time) (a) full DA for every completed period of 24 hours and for each
additional period less than 24 hours but more than 12 hours. (b) 50% of
the full DA for any additional period beyond 6 hours but less than 12
hours.
ii) When the entire tour extends for 24 hours or less (including travel time)
(a) full DA if the entire tour extends from 12 to 24 hours. (b) 50% of the
DA where the entire tour extends from 6 hours to 12 hours.
iii) 50% of the DA rate if the employee is treated as guest of the company.
iv) DA for holidays during tour but not for leave during tour.
v) Employee on tour to a place where he has been allowed to retain his

family on account of his transfer on PT (Single Status) or on TT shall not
be entitled to DA for the period of his stay for that place. However, he
shall be entitled to DA for the journey period.
vi) Transit Accommodation

a) Employees shall avail of the Guest House accommodation
(GH/Transit Rest House wherever available).
b) If GH/TRH is not available, an employee may stay in hotel of

entitlement for maximum 05 days. Beyond 5 days period non
availability certificate in GH/TRH to be obtained from the respective
office.
Provision: In such case Lodging charges reimbursement shall be
for a maximum of 05 days.
Stay in Hotels / Guest Houses on Tour
i) Preference of stay will be in following order:

a) Guest House
b) Company having Tie-up arrangements with hotels/guest houses: -
Only on non-availability (supported by proof of non-availability) of both

the above preferences/options, the executives may be allowed to stay in
other hotels at the touring destination as per their TA entitlement.
Proposal for tie-up arrangements will be made centrally by Corporate

Office, and will be applicable to all offices of MECON.
83
ii) Employees if stay in ITDC Hotels, wherever available, should avail of the
rebate given to employees of Public Sector Undertakings.
iii) TA for participation in sports/cultural events representing the company

shall be admissible as on tour. If boarding alone or both boarding and
lodging are provided by company or other organization, Daily Allowance
shall be paid at the rate of ` 15/- per day. If lodging alone is provided
food and incidentals at rates on tour shall be paid.
10.6 RECALL FROM LEAVE:
10.6.1 TA and DA for recall from leave will be paid only where the employee is
recalled from leave with the approval of the Competent Authority.
10.7 TA FOR MEDICAL EXAMINATION/TREATMENT (IN REFERAL

CASES) SELF /DEPENDENT:
10.7.1 Travelling allowance shall be admissible to:
i)TA/Lodging for patients only as per entitlement under clause (10.7.3)
ii) Actual fare for local journey at H.Q and at place of referral hospital
as per entitlement.
iii) Attendant, if advised by Head of Medical and only TA to attendant

as per employees’ entitlement.
Provisions:
i)Local expenses payable for one trip only for each referral.
ii)Local expenses for each visit in case of OPD treatment.
iii)Initial/OPD treatment with specific approval of Head of Medical and

production of bills. In such cases, lodging charges for patients, only
as per entitlement.
10.7.2 Sometimes patients, after taking initial indoor treatment, are released and
advised daily treatment/checkup at the hospital as an OPD patient.
Examples are Cobalt-ray treatment for Cancer, exercise physical therapy
after fixing an artificial limb, etc. In such special cases as advised by the
Chief Medical Officer, lodging charges and taxi fare for the patient only,
limited to the monetary limits of lodging charges as per Para 10.5.2
subject to production of bills, in case Guest House accommodation is not
available, may be reimbursed.
10.7.3 In case of medical treatment outside headquarters as referred by the

CMO (Head of Ispat Hospital) the mode of travel shall be restricted to AC-
II tier in respect of employees who are entitled to travel by Air/First class
AC by Rail and other employees would be entitled to travel by Rail in class
one category lower than their entitlement. In exceptional cases requiring
84
emergency medical treatment, permission may be granted for travel by
Air on the recommendation of Medical Board/Authorised Medical Officer,
as applicable, and duly approved by Director/CMD.
10.7.4 Transportation of Dead Body from referred hospital to Head

Quarter
Admissibility:
i) Shifting to headquarter/Home-town/Family residence.
ii) Embalming expenses on actual if applicable.
iii) One escort.
ii) Rail/Road/Air-fare depending on distance and convenience. If
transported by road, reimbursement is to be restricted as if
transported by train.
Provisions: Reimbursement is subject to production of receipt wherever
applicable.
10.8 COURT, DEPARTMENTAL OR VIGILANCE ENQUIRY:
10.8.1 TA and DA as per entitlement to the employees appearing as accused in

Departmental/Vigilance Enquiry. No TA and DA is payable if enquiry is
held at an outstation on request of the employee.
10.8.2 TA and DA as per entitlement to the employees under suspension.
10.8.3 TA and DA as per entitlement for appearance by the employee/ex-

employee as accused where prosecution arises from acts
committed/purported to be committed in bonafide execution of duties
with specific approval at the discretion of CMD.
10.8.4 Reimbursement of TA and DA as per entitlement after separation from

company to ex-employee for appearing in Departmental Enquiry/ Court of
Law or before CVC/CBI as prosecution witness provided no payment has
been made by the concerned agency (Payable against
certificate/undertaking).
NOTE
1)Any amount received from the court for attendance or boarding and
Lodging, etc. shall be refunded to the Company if TA/ DA has been
claimed from the Company. Certificate to be attached with claim bill
if no TA and DA has been paid by the external agency.
2)In case, other Public Sector Undertakings need our employees as
prosecution witness on their behalf, such Undertakings may be
requested to pay TA/DA as per entitlement of the employee under
MECON TA rules.
10.9 TRAINING PROGRAMMES, SEMINARS AND CONFERENCES:
10.9.1 Sponsoring of an employee for specialised long duration training of six

months and above, like DSW, will be treated as temporary posting. They
85
will be entitled to HRA, CCA as applicable and an amount of ` 500/- per
month of the period as a special allowance.
10.9.2 If an employee receives any travel expenses or daily allowance from a
professional body/institution for attending training programme, seminar
etc. he shall refund the amount to the company if he claims his travelling
and daily allowance entitlements from the company.
10.9.3 The Competent Authority may sanction a lump sum amount as

entertainment allowance to the executives depending on the duration of
the training programme/seminar/conference. The Competent Authority
shall be the authority delegated with the powers for sanctioning
Entertainment Allowance specifically.
10.10 FINAL SETTLEMENT:
10.10.1 (I) Type:
i) Superannuation.
ii) Voluntary Retirement
iii) Death of the employee, discharge/termination on medical grounds.
iv) Resignation in case of employees in the age bracket of 57 years
and above.
Admissibility:
(a) Traveling expenses to employees and or his family to:
Declared home town or place where he/she has acquired a house through
company HBA or place where employee owns a house in his/her name
subject to production of title deed of the house.
Provision(i) Reimbursement on production of documentary proof of

travel.
(ii)The journey should commence within six months from the
date of Retirement/Termination on medical grounds or death
or within such extended time as may be approved by the
CMD.
(b) Packing charges: As per clause 14.3.4
(c) Transportation of an entitled two/four wheelers: As per clause 14.3.3.
(d) Reimbursement of extra two tickets: As per clause 14.3.1 (d)

Extra two tickets will, however, not be payable in case of Voluntary
Retirement granted and transfer on own request.
(II)Transportation of Personal Effects:
Rates for transportation of Personal Effects on superannuation by road will

be as follows:
Place of Settlement Rate
Upto 200 kms ` 5000/-
More than 200 kms ` 25/- per km or actuals, whichever is
less
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10.11 TRAVEL FOR INTERVIEW/APPOINTMENT IN THE COMPANY:
10.11.1 Fare payable to outstation candidates for interview to executive post and
for first appointment at the rate of entitled fare to the corresponding
executive post subject to submission of proof of travel.
10.11.2 Fare payable to outstation candidates for interview to non-executive post

and for first appointment, by sleeper class subject to submission of proof
of travel alongwith claim.
10.11.3 Claim for travel by road between two points not connected by rail will be
reimbursed at actual or the rail fare by the appropriate class for the road
distance involved, whichever is less subject to submission of proof of
travel along with claim.
10.11.4 Payment of DA and lodging charges will be done at the discretion of CMD,
MECON based on merit of individual case.
10.12 ADVANCE FOR TRAVELLING ON TOUR
Advance for travelling on tour etc. will be for:

(a) Grant of advance to meet travelling and other expenses in full.
(b) Maximum 02 months in advance (for ticket)from date of outward journey.
(c) Bill to be submitted within 01 (one) month of completion of journey.
(d) Advance to be recovered if there is delay in submission of bill.
Provisions: With the approval of Competent Authority.
10.13 APPROVAL IN SPECIFIC CASES:

Approval in specific cases (other than specified in clause 10.14) may
be made by the Director, In charge of sections/offices.
Such proposal shall be routed through Personnel and Finance before

being put up to Director for their approval.
10.14 RULES MAKING POWER:

Chairman-cum-Managing Director may, from time to time:
i) Amend the monetary limits for lodging for stay in hotels which do not
have a star rating specified in clause 10.5.2(3) depending on changes in
lodging rates of hotels.
ii) Amend the list of "Specified locations" indicated in note of clause

10.5.2.
10.15 HOUSE RENT ALLOWANCE:
10.15.1 Definitions:
For the purpose of these rules “Specified Localities” shall mean the
following places:
87
(a) Kolkata, Mumbai, Delhi, Chennai, Category "A"
Bangalore, Kanpur and Nagpur
(b) Ranchi, Vishakhapatnam Category "B 2"
10.15.2 Eligibility:
(a) An employee stationed in specified localities within its suburban

municipality contiguous to the municipality/corporation of the specified
locality, shall be eligible for house rent allowance provided that he has not
been allotted any accommodation by the company and he is not residing
with any other employee who has been allotted accommodation by the
company. An employee who refuses or surrenders accommodation
provided by the company shall also be eligible for house rent allowance.
(b) If both the spouses are working in MECON and are stationed at the same
place the payment of House Rent Allowance will be regulated at the
prescribed percentage of pay show at Clause 10.14.3 subject to the
condition that none of them has been provided with company’s
accommodation at the place of their posting.
(c) In case one spouse has been provided with company’s lease
accommodation the other spouse-employee would be allowed HRA to the
extent of extra amount borne towards rent (i.e. difference between
entitlement and rent), restricted to the entitlement percentage.
(d) If an employee who is drawing house rent allowance is transferred, he
shall be eligible for house rent allowance to retain his accommodation for
maximum period upto 24 months provided that he is permitted by the
Authority to retain his accommodation at headquarters.
(e) If an employee, who is drawing house rent allowance, is on leave or
temporary transfer, he shall be eligible for the allowance to retain his
accommodation provided that he returns to his headquarters.
(f) If an employee, who desires to draw HRA in lieu of availing self lease
facility, the same is admissible.
(g) Where both spouses are in employment and claim HRA on notional basis,
the same is admissible.
10.15.3 Entitlement:
(a) The entitlement for payment of HRA as detailed below is effective from
21.10.2009 for executives and from 01.12.2009 for non-executive regular
employees.*
(I) Executives:
Executives shall be paid HRA on the revised basic pay based on
classification of cities as notified by the Govt. of India from time to time,
which at present is as below:**
88
Classification of Cities HRA on revised basic pay
50 Lakh and above -

30%
(Classified as ‘X’ – Previously A1)
5 to 50 Lakh -
20%
(Classified as ‘Y’ – Previously A, B1 and B2)
Less than 5 Lakh -
10%
(Classified as ‘Z’ – Previously C and Unclassified)
There would be no ceiling for payment of HRA without production of rent

receipt. It will be limited to his entitlement for payment of HRA at the
place of posting.
In case the amount of House Rent Allowance as per prescribed rate is less
than the amount of HRA drawn earlier by a particular executive, the
difference would be allowed to be drawn by the executive as “Personal
Allowance” until the difference is eliminated in course of time subject to
the condition that the difference would be submitted within the overall
limit prescribed for the perks and allowances.**
* Amended vide Office Order No. 11.73.3/8007/2009 dated 24.11.2009 in respect of wage
revision of executives w.e.f 01.01.2007 and Tripartite Agreement signed on 22.09.2010 in
respect of wage revision of non executive regular employees.
** Amended vide office order No. 1.73.3/8007/2009 dated 24.11.2009 in respect of wage revision of
executive employees w.e.f from 01.01.2007
89
House Rent Recovery:**
House Rent Recovery from the executives would be made as under:

(i) HRR for the period from 01.01.2007 till 31.10.2009:
HRR for the period from 01.01.2007 till 31.10.2009 will continue to be
made @ 10% of the pre-revised basic pay or standard rent, whichever is
less.
(ii) HRR from 01.11.2009:
From 01.11.2009, HRR would be made @ 10% of the revised basic pay or
standard rent, whichever is less.
(II) Non – executives:**
Employees covered by the Agreement, who are not allotted Company’s
quarter, shall be paid house rent allowance equal to the HRA rates as per
city classification and applicable rates under Government guidelines on
the revised Basic pay w.e.f. 1st December, 2009 as mentioned below:
Classification of Cities HRA on revised basic pay
50 Lakh and above - 30%

(Classified as ‘X’ – Previously A1)
5 to 50 Lakh - 20%
(Classified as ‘Y’ – Previously A, B1 and
B2)
Less than 5 Lakh - 10%
(Classified as ‘Z’ – Previously C and
Unclassified)
(i) Merely as a consequence of increase in basic pay, there shall not be any
change in regard to the eligibility of workmen for allotment of quarter.*
(ii) House Rent recovery for the company quarters will continue as per the
existing practice.***
(iii) There would be no ceiling for payment of HRA without production of rent
receipt, the some being limited to entitled HRA at his place of posting.
(b) An employee residing in his own house shall be entitled to HRA on
percentage as applicable as per (a) above or the rental value of the house
as assessed by the Municipality/Corporation, whichever is lower.
** Introduced vide Office Order No. 11.73.3/8007/2009 dated 24.11.2009 in respect of wage
revision of executive employees of MECON w.e.f 01.01.2007.
** Ammended vide Tripartite Wage Agreement signed on 22.09.2010 in respect of non-executive

employees of MECON.
*** Amended vide Tripartite Wage Agreement signed on 22.09.2010 in respect of non-executive
regular employees of MECON.
90
Clarification:
In case of locality not covered by the municipality, the rental value of the
house as assessed by the Income-tax Officer will be the criteria for
reimbursement of HRA.
(c) If the above assessment is not produced by the employee or he/she is
only a part owner of the house, the ceiling of HRA amount per month
without production of rent receipt/rental value of the house will be as per
the entitlement stated above.
(d) Employees of the Head Office transferred to other units of the company
will be allowed to retain the company’s quarters at Ranchi for a maximum
period of 2 years subject to his fulfilling the conditions as provided under
Clause 14.5 of Chapter XIV and will be paid House rent Allowance,
wherever applicable, at their new place of posting for a maximum period
of 2 years if admissible. The house rent allowance at the new place of
posting will not be available beyond the period of 2 years in case the
employee or his family continues to occupy company’s quarters at Ranchi
beyond the permissible period.
(e) Where an employee has been transferred from one place to another and
he is actually required to pay rent for one month at both the places, HRA
will be allowed for the same month at both the places (on production of
rent receipt) This will not apply in the case where HRA is claimed and paid
on notional pay.
(f) The company reserves the right to amend the list of specified localities
and their categories.
10.15.4 Procedure:
(a) An eligible employee may apply for house rent allowance, in the
prescribed form.
(b) An employee who is drawing house rent allowance shall be required to
give notice to Competent Authority about any change in accommodation
or amount of rent paid.
10.16 CITY COMPENSATORY ALLOWANCE:
10.16.1 To compensate higher cost of living in certain "Specified localities" as
per classification of cities by the Govt. from time to time, employees
stationed in such localities or within its suburban municipality contiguous
to the Municipality/Corporation of the specified locality shall be eligible for
the City Compensatory Allowance at the rates specified below:
A. Executive:
The City Compensatory Allowance stands withdrawn w.e.f. 21.10.2009.
Necessary adjustments will be made accordingly.*
* Amended vide wage revision of executive employees w.e.f 01.01.2007
91
B. Non-Executive:
(` /month)
Basic Pay/month Classification of cities
A-1 metro 'A' 'B-1' 'B-2'

Below ` 4000/- 90 65 45 25
` 4001-5250/- 125 95 65 35
` 5251- 6499/- 200 150 100 65
` 6500/- & above 300 240 180 120
NOTE:
No CCA is payable at un-classified cities and Steel Plant locations i.e.
Bokaro, Durgapur and Rourkela. Since Bhilai has been upgraded to B-2
Class City, CCA is payable w.e.f. 01.04.2005 to employees posted at
Bhilai.
SPECIFIED LOCATIONS: The Specified Locations and their categories will
be as under.
Sl. City Category
I. Mumbai (including Thane), Kolkata, Delhi (including ‘A-1’ Metro

Faridabad, Ghaziabad and Gurgaon), Chennai and
Bangalore.
II Hyderabad, Ahmedabad, Pune and Kanpur ‘A’
III Viskhapatnam, Lucknow, Patna, Surat, Kochi, Vadodara, ‘B-1’
Bhopal, Indore, Nagpur, Ludhiana, Jaipur, Madurai,
Coimbatore and Varanasi.
IV Vijayawada, Guwahati City, Dhanbad, Ranchi, Jamshedpur, ‘B-2’
Chandigarh, Rajkot, Hubli-Dharward, Mysore, Durg-Bhilai
Nagar, Gwalior, Jabalpur, Aurangabad, Nasik, Sholapur,
Amritsar, Jalandhar, Jodhpur, Kota, Salem, Tiruchirappalli,
Meerut, Bareilly, Gorakhpur, Agra, Allahabad, Asansol,
Thiruvananthapuram, Kozhikod, Bhilai.
NOTE:
The Cities/towns which have been placed in a lower classification in the

above mentioned list, as compared to their existing classifications, shall
continue to retain the existing classification until further orders. The list
will be modified/changed as and when notification of the Govt. is issued
on the subject.
10.16.2 If an employee who is drawing City Compensatory allowance is on leave

and he/his family leaves the headquarters/Station for more then 120 days
at a stretch, he shall not be eligible for the allowance. If an employee,
who is drawing City compensatory Allowance, is on temporary transfer, he
shall be eligible for the allowance provided that,
i) He returns to the same station,

ii) He does not draw the allowance at the new station, and;
iii) His family stays at the old station during the temporary transfer period.
92
10.17 LOCAL TRAVELLING EXPENSES:
From 21.10.2009 i.e. the date of issue of Presidential Directive, LTE forms
a part of Perks and Allowances under “Cafeteria Approach” for executive
employees which is kept at 5% of revised Basic Pay.*
10.17.1 Eligibility:
(a) An employee of the company including Management Trainees posted in

India shall be eligible to draw reimbursement of local travelling expenses
provided the vehicle is owned and registered in the name of the employee
and he/she utilizes the same for official purpose.
(b) An employee on deputation from other organization or with other

organization shall be eligible for reimbursement of local travelling
expenses in accordance with these rules subject to the terms and
conditions of his deputation.
(c) Local travelling expenses under these rules shall not be admissible to
foreign personnel whose appointment is governed by separate terms and
conditions.
10.17.2 Rates of Allowance:**
The rates of local travelling expenses for non-executive employees shall

be as follows: -
Type of Vehicle Reimbursement of LTE

(`/month)
Moped or auto-cycle or any other power 630/-*

driven vehicle of less than 1 HP.
Motor Cycle/Scooter 1000/-*
NOTE: ***
The non-executive employees (below S-9 grade) who have purchased

motorcar with permission of the company may be allowed reimbursement
of local travelling expenses at the rate of ` 1000/- per month as per rules
against Car instead of Scooter/Motorcycle.
Employees in the grade of S-9, S-10 and S-11 shall be entitled RLTE for
Motor Car at the rate of ` 2000/- per month as per rules.
* Amended vide Office Order No. 11.73.3/8007/2009 dated 24.11.2009 in respect of wage revision
of executive employees w.e.f 01.01.2007
** Amended vide Tripartite Agreement in respect of non-executive regular employees of MECON signed
on 22.09.2010.
*** Amended vide Tripartite Wage Agreement signed on 22.09.2010 in respect of non-executive regular
employees of MECON.
93
10.17.3 Conditions:
(a) LTE is granted in the nature of reimbursement of expenses incurred by
the employees for journeys undertaken in connection with official work.
(b) LTE shall be granted for one vehicle only provided it is owned and
registered in the name of the employee and he utilizes the same for
official purpose. The allowance shall be granted with effect from the date
of application/date of use/date of registration of the vehicle, whichever is
later.
NOTE:
i) In the case of purchase of brand new car/motorcycle/scooter/ moped/luna
by the employees of the company from the authorized dealers, local
travelling expenses will be paid with effect from the date of
purchase/application, whichever is later on production of necessary
certificates from the authorized dealer from whom the vehicle concerned
has been purchased.
ii) Local travelling expenses will be sanctioned from the date of application
or the date from which the employee starts using the vehicle, whichever
is later provided that the employee submits along with his application: -
(a) R.C. Book with endorsement regarding transfer of ownership in his name
with effect from the date from which local travelling expenses is claimed,
or
(b) Documentary evidence such as receipt from Office of the Registering
Authority to the effect that the R.C. Book has been submitted for transfer
of ownership along with documents regarding Insurance and Sale deed,
etc.
Employees will be allowed to draw LTE immediately after issue of the

order in case of (a) above and in case of (b) above, the LTE will be
actually paid to them after they finally produce the RC Book with transfer
of ownership, with arrears from the date it has been sanctioned.
(c) An employee who draws LTE shall use his own vehicle for journey within
the town/city where he is posted for all official work.
(d) LTE is admissible at full rate as per entitlement irrespective of the period
of utilization of the vehicle, subject to production of utilization certificate.
(e) Employees would be entitled to claim the reimbursement of LTE wholly,

exclusively and necessarily incurred by them by utilizing their vehicles in
performance of their official duties.
(f) Employee would not be entitled to claim LTE for a month in excess of
amounts so specified.
(g) LTE is admissible on all the "Petrol Driven Domestic use Vehicle" e.g.
Motor cars, Maruti vans, Jeeps and Gypsy etc. LTE is not admissible for
using Trekker. Motor cars run on diesel/LPG/CNG would also be covered
for grant of LTE.
94
(h)* LTE at the rate of 20% of basic pay limited to ` 150/- per month will be
allowed to all blind and orthopedically handicapped (with disability of
lower extremities), and deaf & dumb employees subject to the following
conditions:
(i) * An orthopedically handicapped employee will be eligible for LTE only if
he has a minimum 40% permanent partial disability or both the upper
and lower extremity deformities.
(ii) * The LTE will be admissible to the blind, orthopedically handicapped
deaf & dumb employees on the recommendation of the Chief Medical
Officer/ Authorized Medical Officers of the Company.
(iii) * The allowance will not be admissible during leave (except Casual
Leave) joining time or suspension.
(iv) * The allowance will be admissible to the above mentioned employees over
and above the transport subsidy, subject to the condition that total LTE
paid does not exceed ` 150/- including the transport subsidy.
(v) * The allowance will be granted with effect from the date of receipt of
recommendation from the concerned Medical Authority.
10.17.4 General:
(a) The use of vehicle for purpose of coming from his residence to the place
where the duties of employment are to be performed or from such place
back to his residence will be regarded as use of vehicle for performance of
official duties.
(b) Employees would be provided a certificate on monthly basis as per the
prescribed format for claiming reimbursement of the Local Travelling
Expenses. The entitlement for Local Travelling Expenses is as per Clause
10.16.2. However, to claim reimbursement of the full amount as per the
entitlement, requirements as specified under the Income Tax Rules, 1962,
applicable from time to time will have to be complied with.
An employee claiming LTE will not be eligible for any allowance or any
other payments in connection with the journeys undertaken by him in
performance of his official duties.
(c) An employee claiming LTE would be responsible for satisfying the Income
Tax Authorities with regard to the actual expenses incurred vis-a-vis
amount drawn from the company to produce necessary vouchers as may
be required.
* Amended vide CMD’s approval dated 03.05.2014 on DPE’s letter No. 6/9/2013 DPE(SC/ST
Cell) dated 6th March,2014.
95
(d) An employee who is eligible for LTE may apply to the Competent Authority
in the prescribed form. He/she would be responsible to apply for LTE
afresh whenever he changes the vehicle.
(e) Non-Executive employees, who do not utilize company’s Transport and do
not claim Local Travelling Allowance will be paid transport subsidy at the
rate of ` 25/- (Rupees Twenty five only) per day of attendance subject to
a minimum of ` 90/- only per month.*
10.17.5 Reimbursement of Maintenance Expenses:*
From 21.10.2009 i.e. the date of issue of Presidential Directive, LTE forms
a part of Perks and Allowances under “Cafeteria Approach” for executive
employees which is kept at 5% of revised Basic Pay.
Those non-executive employees who are using their own vehicles for
official use and covered under RLTE Scheme will be reimbursed
maintenance expenses incurred on their personal vehicles equivalent to 2
(two) month’s “Reimbursement of Local Travelling Expenses
(RLTE)” rates in a financial year as per their entitlement. It will be made
on certification basis (as per specimen in Annexure at page no. 103) in
two installments along with supplementary payments for the month of
June and December during the financial year.*
This scheme is effected from the financial year 2006-2007 and will be
subjected to applicable rules and provisions of Income Tax Act.
10.18 REIMBURSEMENT OF MEMBERSHIP FEES FOR PROFESSIONAL
BODIES/ASSOCIATION AND SUBSCRIPTIONS TO PERIODICAL AND
JOURNALS:
From 21.10.2009 i.e. the date of issue of Presidential Directive,
“Reimbursement of Membership Fees for Professional Bodies/ Association
and Subscriptions to Periodical and Journals” forms a part of Perks and
Allowances under “Cafeteria Approach” for executive employees which is
kept at 2% of revised Basic Pay.*
10.19* REIMBURSEMENT OF ENTERTAINMENT EXPENSES/
PROFESSIONAL & BUSINESS DEVELOPMENT EXPENSES:
“Reimbursement of Entertainment Expenses/Professional & Business
Development Expenses” forms a part of Perks and Allowances under
“Cafeteria Approach” for executive employees which is kept at 5% of
revised Basic Pay.*
10.20** INTRODUCTION OF REIMBURSEMENT OF COMMUNICATION
ALLOWANCE:
“Reimbursement of Communication Allowance” forms a part of Perks and
Allowances under “Cafeteria Approach” for executive employees which is
kept at 5% of revised Basic Pay.*
* Amended vide Office Order No. 11.73.3/8007/2009 dated 24.11.2009 in respect of
wage revision of executive employees w.e.f 01.01.2007.
** Amended Tripartite Wage Agreement in respect of non-executive regular employees of MECON
signed on 22.09.2010
96
10.21* WASHING ALLOWANCE:
Non-Executive employees provided with uniforms by the company shall be

eligible for grant of washing allowance and they will be paid washing
allowance at the following rates:
1. Nurses & Security Personnel ` 150/- per month.

2. Other Employees ` 100/- per month.
10.22** NIGHT SHIFT ALLOWANCE:
Night Shift Allowance at the rate of ` 90/- for shift between 2200 Hrs. and
0600 Hrs. will be payable to Non-Executive employees (who have regular
shift duties), in case they are required to perform night shifts.
10.23*** CASH HANDLING ALLOWANCE:
Non-executive employees required to perform the duties of handling cash

shall be paid cash handling allowance at the following rates:
For handling cash upto ` 25 Lakhs ` 300/- per month.

For handling cash beyond ` 25 Lakhs ` 500/- per month.
10.24 CAR WASHING ALLOWANCE:
· Staff Car Drivers shall be eligible for car washing Allowance as follows
where company’s own arrangement do not exist for washing, cleaning and
polishing of the company vehicles:
a) Reimbursement of expenses to company’s driver @ ` 100/- p.m. per

vehicle for getting the company’s vehicle (including its seats) Cleaned &
Washed.
b) Polishing of the vehicle:
To be arranged by office at approved garage and at approved rates once in

3 months time. Charges will be paid directly to the garage by the office.

** Amended Tripartite Wage Agreement in respect of non-executive regular employees of MECON
signed on 22.09.2010.
** * Amended made vide Policy Circular No. 23/2007 dated 12.04.2007 effective from 1st May,2006.
97
10.25* REIMBURSEMENT OF MINOR HOUSE MAINTENANCE EXPENSES:
(a) Regular employees who are posted in Steel Plant Locations and are
occupying quarters will be reimbursed House Maintenance Expenses for
undertaking minor maintenance jobs (listed below) in their quarters as
under:
Type of Quarters Amount (`/annum)

600/-
One room quarters
800/-
Two room quarters
1000/-
Three room quarters
The reimbursement will be made once in a financial year starting from

2009-2010 on submission of claim in the prescribed proforma (as
Annexure on Page No.105).
(b) List of common minor maintenance jobs are as follows:
Electrical Civil & Public Health

1. Replacement/repair of switches/SP 1.Replacement/repair of defective Bib Cock/
Tumbler Switch (5/6 AMPs/15/16 Pillar Cock/Stop Cock.
AMPs)
2. Replacement of Holders/OB 2. Rectification of Cistern leakage.

Batten/ Angle/ Bracket/Bakelite
Holder.
3. Replacement of plub socket/wall 3. Repair of wash basin/sink/mirror/

socket/flush type socket pin 5/6 taps/towel rail.
AMPs/15/16 AMPs.
4. Replacement of fan regulators/ 4. Replacement of defective shower rose in

Capacitors. bath room.
5. Checking of Light points (tube 5. Easing of jammed door/window.

lights)with replacement of
tube/choke/starter, if required.
6. Replacement of Call Bell/Bell Push. 6. Replacement of defective Tower bolt MS

Aldrop.
7. Overhead tank cleaning.
98
10.26** Canteen Facility:**
Non-executive employees shall be paid ` 20/- per day on actual attendance

towards canteen facility.
10.27 *** Energy Allowance:**
Non-executive employees will be paid ` 300/- per month towards energy

allowance.
10.28 **** Skill Development Allowance:***
Non-executive employees shall be paid ` 500/- per month towards skill

development allowance.

** Introduced vide Wage of Agreement signed on 22.09.2010 in respect of non-executive regular
employees of MECON.
** * Rates revised vide Wage Agreement signed on 22.09.2010 in respect of non-executive regular
employees of MECON.
**** Amended vide Wage Agreement Signed on 15.04.2015 in respect of non-executive regular employees
of MECON.
99
ANNEXURE
(Ref. Clause No. 10.4.4)
ALLOWING AIR TRAVEL AT SPECIFIC SECTORS/DESTINATIONS FROM
DIFFERENT OFFICES OF MECON IN INDIA.
Sl. No. Starting Sectors of Travel Destination Remarks
1 Ranchi Mumbai
2. Ranchi (via Kolkata) Agartala Ranchi to Kolkata by train as per existing
Ahmedabad practice in AC II.
Aizwal
Bangalore
Chennai
Dibrugarh
Dimapur
Guwahati
Goa
Hyderabad
Imphal
Jorhat
Pune
Shillong
Silchar
Thiruvananthapuram
3. Kolkata Agartala
Ahmedabad
Aizwal
Bangalore
Chennai
Dibrugarh
Dimapur
Guwahati
Goa
Hyderabad
Imphal
Jorhat
Mumbai
Pune
Shillong
Silchar
Thiruvananthapuram
4. Delhi Aurangabad
Bagdodra
Bangalore
Bhubaneshwar
Chennai
Goa
Guwahati
Imphal
Kochi
Pune
Thiruvananthapuram
Vishakhapatnam
5. Bangalore Ahmedabad
Bhubaneshwar
Delhi
Guwahati
Kolkata
Vadodara
6. Mumbai Bhubaneshwar
Calicut
Chennai
Coimbatore
Guwahati
Imphal
Jorhat
Kochi
Kolkata
Madurai
Ranchi
Thiruvananthapuram
Vishakhapatnam
7. Chennai Delhi
Kolkata
Mumbai
* Introduced vide Policy Circular No. 58/2009 dated 29.04.2009 with immediate effect, approved by CMD.
100
ANNEXURE*
(Ref. Clause No. 10.24)
CLAIM CERTIFICATE FOR REIMBURSEMENT OF HOUSE MAINTENANCE

EXPENSES:
This is to certify that I am in occupation of Quarter No…………………………..…..type of Quarters

(One bed room/Two bed rooms/Three bed rooms & above)……………………….... in SAIL
Township/Company provided quarter. I have spent ` .………
(Rupees……………………………………………………only) wholly, exclusively and necessarily towards small
maintenance jobs in my allotted quarters for the financial year………………….……… which may be
reimbursed to me.
Signature :
Name :
Pl. No. :
Designation :
Section :
* Introduced vide Circular No. 11.73.3 dated 22.04.2009 effective from financial year 2009-
2010.
101
CHAPTER – XI
GRANT OF ADVANCE TO EMPLOYEES
11.1 PROPRIETY OF ADVANCE:
11.1.1 No authority shall sanction any advance to the employees, which involves
a breach of the standards of financial propriety. In exercise of their
financial powers, the Competent Authority must pay due regard to the
following principles.
i) The advance sanctioned to meet expenditure shall not be prima-facie
more than what the occasion demands.
ii) No authority shall exercise his powers of sanctioning advance to an
employee working under him when it may be directly or indirectly to his
own advantage.
iii) The amount of advance is utilized for the purpose for which it is
sanctioned.
11.1.2 Advance under these rules shall not be admissible to an employee who is
under suspension.
11.1.3 Advance under these rules shall not be admissible to casual workers or
part-time workers.
11.2 TYPES OF ADVANCE:
Advance under these rules shall be admissible for the following purposes:
i) For purchase of domestic use vehicles e.g. motor car or motor cycle
(including scooter)/moped (50 CC), Maruti Van, Maruti Gypsy, Jeep.
ii) For purchase of Bi-Cycle.
iii) Festival Advance.
iv) For Medical Attendance and Treatment.
v) Fan Advance.
vi) House Building Advance.
11.3 ADVANCE FOR PURCHASE OF DOMESTIC USE VEHICLES E.G.
MOTOR CAR OR MOTOR CYCLE (INCLUDING SCOOTER)/ MOPED
(50 CC), MARUTI VAN, MARUTI GYPSY & PETROL DRIVEN JEEP:
11.3.1 Eligibility:
An advance for the purchase of domestic use motor car including Maruti
Van, Maruti Gypsy and Jeep or Motor Cycle including Scooter/Moped may
be granted to an employee of the company subject to the following
conditions: -
i) That he has rendered at least one year’s service under the company.
ii) That he is not on probation/training,
iii) That he is under contract to serve the company for a period of at least
five years in case he is on contract service.
102
iv) That he is in receipt of pay of ` 12,250/- and above in the executive grade
in case of car advance and ` 4,640/- in case of motorcycle, scooter and
moped advance.
III. Clarification:
1. The term “probation/training” applies here only to the new entrants in
the company and not regular employees, who are under probation/on
promotion/training.
2. Graduate Engineers/Management Trainees during the first year of training
will also be eligible for advance for purchase of motorcycle/ scooter
subject to the condition of furnishing a surety from a permanent
employee of the unit where posted.
11.3.2 Application for advance shall be submitted in the prescribed form.
11.3.3 An employee other than an employee whose appointment is upto the age
of superannuation, shall be required to furnish a surety from another
employee of the company whose appointment is upto the age of
superannuation, or any other reliable surety acceptable to the company
provided that he has not stood surety for any other employee.
11.3.4 Advance shall not be sanctioned to an employee who is on leave. An
employee who is about to proceed on leave and for whom an advance has
already been sanctioned shall not be allowed to draw the advance earlier
than a week before the expiry of the leave.
11.3.5 No advance shall be admissible where an employee proceeds on
deputation out of India and desires a motorcar for use during deputation.
11.3.6 The amount of advance shall be subject to the following limits: -
i) For the purchase of Motorcar, an amount not exceeding ` 80,000/- or 35
month’s basic pay of an employee or the anticipated cost of the car,
whichever is less.
ii) For the purchase of Motorcycle/Scooter, an amount, not exceeding
` 18,000/- or the anticipated price of the conveyance, whichever is less.
iii) For the purchase of Moped, an amount not exceeding ` 8,500/- or actual
price of the conveyance, whichever is less.
11.3.7 Nothing contained in these rules shall bind the company in any
commitment towards the grant of LTE/Transport Subsidy beyond the rules
prescribed for such purposes.
11.3.8 Second Advance:
A second advance for the replacement of the old car/ motorcycle/
scooter/moped, etc. purchased with the advance from the company may
be sanctioned only if the outstanding balance of the advance in respect of
the first car/motorcycle/scooter/moped, etc. together with the interest
thereon has been fully repaid and subject to the conditions mentioned
hereafter: -
i) An employee shall not ordinarily be sanctioned a second advance for the
purchase of motor car within a period of five years from the date of
drawal of the first advance for the same purpose and ;
103
ii) An employee shall not ordinarily be sanctioned a second advance for the
purchase of motorcycle/scooter/moped within a period of four years from
the drawal of the first advance for the same purpose.
NOTE:
The Competent Authority at his discretion may, however, sanction
advance within the stipulated periods provided he is satisfied that the
disposal of the vehicle purchased out of the amount sanctioned to him in
the previous instance was due to reasons of high maintenance
expenditure, etc. or expiry of the period, taking into account the model of
vehicle or year of the make which the vehicle cannot be covered under
the Comprehensive Insurance beyond Scheme.
iii) For the second advance, an essentiality certificate may be dispensed with
if the officer continues to hold the same post in which he was working
when the first advance was sanctioned or in a higher post.
iv) Second/subsequent advance will be granted only after the vehicle
purchased from the previous advance has been sold/stolen or rendered
unserviceable, and;
(v) In the case of a person having a two wheeler second advance may be
granted, if he had earlier drawn advance for two-wheeler and now wants
to go in for a car. In such a case he will be allowed advance for car minus
the actual outstanding balance of loan for the two-wheeler, if any.
vi) The number of advances is limited to two only for the same type of
vehicle. Subsequent advances are not admissible.
11.3.9 Purchase before Sanction of Advance:
An advance may be sanctioned for repaying a short private loan taken for
the purchase of a motorcar/motorcycle/scooter/moped, provided:
i) The conveyance is purchased after applying for the advance, and
ii) The conveyance is purchased within three months of applying for the
advance.
11.3.10 Certificate of Availability of Funds:
The Finance Division shall certify the availability of funds for purchase
before the advance is sanctioned.
11.3.11 Sanctioning Authority:

The advance may be sanctioned by an authority to whom necessary
powers have been delegated in this behalf.
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11.3.12 Procedure and Conditions for drawal of Advance:
The following procedure for drawal of advance shall be followed:
i) Before the amount of the advance is drawn, the employee shall have to
sign an agreement with company in the prescribed form and, immediately
after the purchase, execute a hypothecation bond in the prescribed form
hypothecating the vehicle to the company as security. If the actual price
paid for the conveyance (excluding insurance charge) is less than the
amount of the advance drawn, the difference shall be forthwith repaid to
the company.
ii) The agreement shall be executed on non-judicial stamp paper of
appropriate value before the drawal of the advance and the hypothecation
bond shall also be executed on a non-judicial stamp paper of appropriate
value within one month of the purchase of the vehicle.
11.3.13 The final payment for the conveyance shall be effected within one month
of the date, on which the advance is drawn, failing which the full amount
of the advance drawn, with interest thereon for one month, shall be
refunded to the company.
11.3.14 The advance may be applied for well in time and sanctioned by the
Competent Authority as soon as possible. The advance, may however, be
drawn only after the employee concerned has received a written
assurance from the dealer that the supply is likely to be available within a
month and a certificate to this effect is recorded on the bill for the
advance. In the event of any delay in supply, despite such written
assurance the employee shall apply for extension of the time limit within
the permissible period of one month and seek permission for retaining the
advance for a further period which shall be specified. Each such request
shall be supported with a letter from the dealer concerned indicating the
likely period of delivery and shall be considered on its own merits.
11.3.15 Even if the company has sanctioned advance in principle, the company is
not bound to pay, if funds are not available at the actual period of asking.
11.3.16 The expression “actual price paid for the conveyance” occurring in
these rules shall include the price of such items also which have
necessarily to be purchased alongwith the motor car or motorcycle or
scooter or moped, such as spare wheel together with a tyre and tube, the
pillion seat of a scooter on the purchase of which the purchaser has no
choice. Where, however, certain accessories, such as radio in a car,
plastic covers, are purchased, which are not essential and which the
customer purchases on his own volition, the term “actual price” shall not
cover their cost. The term “actual price” does not also include insurance
and registration charges since these are incurred for running the motor
vehicle.
Company’s own Vehicle Advisory Committee will do the valuation of the
vehicle purchased out of conveyance advance provided by the company.
Vehicles being purchased from out station, in case company has an office
as also a Vehicle Advisory Committee operating there, can be presented
for inspection there and valuation report obtained. In all other cases, the
valuation by the Vehicle Advisory Committee will be treated as final and
advance will be adjusted accordingly.
105
11.3.17 Insurance:
i) The motor car, motorcycle, scooter or moped must be insured against full
loss by fire, theft, accident or SRCC within one month from the date of
purchase of the conveyance, or as soon as it is on the road, whichever is
earlier. Insurance on “owner-driven” or other similar qualified terms is not
sufficient. The amount for which the conveyance is insured shall not at
any time be less than the outstanding balance of the advance plus
interest; the difference, if any, shall recovered from the employee in not
more than three monthly instalments. Insurance policies at a reduced rate
of premium may be accepted as adequate in the case of motor cars
where:
a) The owner of the car undertakes to meet the first ` 100/- or so if a claim
is preferred against an Insurance company in the event of an accident; or
b) The car is not insured against accident for any reason for the year during
which it is not in use but is stored in a garage.
ii) The employee shall write a letter in the prescribed form through the
Competent Authority notifying to the insurance company the fact that the
company is interested in the insurance policy secured. The employee shall
himself forward the letter to the company and obtain their
acknowledgement. In the case of insurance effected on annual basis, this
process should be repeated every year until the advance has been fully
repaid.
11.3.18 Repayment of Advance:
The advance for purchase of conveyance shall be repaid in not more than
144 monthly instalments in respect of advance for purchase of motor car,
not more than 80 monthly instalments in respect of advance for purchase
of motorcycle/scooter and not more than 60 monthly instalments in
respect of advance for purchase of moped. The monthly instalments shall
be rounded off to the nearest rupee. The recovery shall commence from
the month following that in which the advance is drawn.
11.3.19 Interest:
Simple interest at such rates as may be prescribed by the company from
time to time shall be charged. The rate shall be the rate applicable on the
date of drawal of the advance. The interest shall be calculated on balance
outstanding on the last day of each month. The recovery of interest shall
commence from the month following that in which the payment of the
principal amount has been completed in monthly instalments not
exceeding the amount of instalment prescribed for recovery of the
principal amount.
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11.3.20 Sale & Transfer of Conveyance before Complete Repayment of
Advance:
While an employee who has purchased a motorcar or a motorcycle/
scooter/moped with the advance, drawn from the company proposes to
sell it before the advance, together with interest thereon, has been fully
repaid, he shall do so only after obtaining prior approval of the Competent
Authority.
11.4 Rules for the Grant of Advance for Purchase of Bi-cycle:
11.4.1 The advance shall be sanctioned to employees who have completed one-
year service and in whose case maintenance of bicycle is considered
conducive to efficient discharge of their duties.
11.4.2 The employees other than those who completed more than one year’s
service or whose appointment is upto the age of superannuation shall be
required to furnish one surety in the form affixed to safeguard the
advance. An employee shall be permitted to stand surety for one
employee only.
11.4.3 The advance shall be limited to the cost of the bicycle or ` 2,500/-
whichever is less*.
11.4.4 The amount of such advance shall be recovered in equal monthly
instalments not exceeding 25, commencing with the pay drawn by the
employee immediately after the advance is drawn.
11.4.5 Simple interest shall be charged at the rate as specified in Rule 11.3.19
and the amount of interest shall be recovered in one instalment from the
pay payable to the employee immediately after the full amount of the
advance is recovered.
NOTE:
The interest shall be calculated on balance outstanding on the last day of
each month at the rate prevailing at the time of grant of advance.
An employee who has drawn an advance shall, within one month of
drawing the advance furnish to the Competent Authority a certificate
giving full particulars of the conveyance purchased and the cash receipt
for the amount actually paid by him. If the actual price paid is less than
the advance taken, the balance shall be refunded forthwith.
11.4.6 A second advance shall not ordinarily be granted within three years unless
the Competent Authority is satisfied regarding the genuineness of the
claim.
11.4.7 A declaration to the effect that he has not taken any advance for purchase
of a bicycle within the last three years shall accompany the application for
advance.
· Amendment made vide Policy Circular No. 41/2007 dated 17.12.2007 with immediate
effect, approved by CMD.
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11.5 ADVANCE ON THE EVE OF IMPORTANT FESTIVALS:
11.5.1 Employees shall be granted an interest free advance on the eve of
important festivals subject to the following conditions: -
i) The amount of the advance shall be limited to ` 10000/-*.
ii) The advance shall be granted to non-executive employees only.

iii) The advance shall be drawn before the concerned festival.
iv) The advance shall be admissible only once in a Calendar Year.

v) The advance shall be recovered in not more than ten monthly
instalments, the first instalment commencing with the next month’s pay
bill.
NOTE:
A second festival advance shall not be sanctioned to the employee till the
earlier advance sanctioned to him during previous year has been
recovered in full.
vi) In case of temporary employee, securities shall be required from those
who are on regular appointment upto superannuation and have more than
one year to serve.
vii) Temporary employees who are not likely to continue for more than six
months shall not be granted any festival advance.
NOTE:
An advance on the eve of important festivals shall be admissible to staff
on duty as well as on earned leave, and in the case of female employees,
during maternity leave also.
11.6 ADVANCE FOR MEDICAL ATTENDANCE AND TREATMENT:
11.6.1 Advance to meet expenditure for the medical attendance and treatment
for the employees and the members of their families shall be granted on
the terms and conditions mentioned below:
i) The advance shall be admissible when an employee or member of his
family is being treated as an in-patient in a hospital in which he or the
member of his family is not entitled to free treatment; and on the advice
of the Authorized Medical Officer.
ii) The application for an advance shall be supported by a certificate that the
patient is being treated as an in-patient or as an out-patient in a hospital
indicating the duration of such treatment and the anticipated cost thereof
which would otherwise be admissible under the Medical Attendance Rules
followed by the company/ recommendation from the Medical Officer of
Government in charge of the patient either in the hospital or at the out-
patient department, as the case may be.
* Amendment made vide Policy Circular No. 83/2015 dated 01.05.2015 with immediate
effect, approved by BOD & Tripartite Wage Agreement signed on 15.04.2015.
108
iii) The advance shall not, under any circumstances, be allowed in case where
treatment is being obtained at the residence of the employee or the
consulting room of the Authorized Medical Officer, or as an outpatient
unless specifically recommended by the Authorized Medical Officer.
iv) The amount of advance in each case shall be limited to ` 5,000/- * or
such other amount as the Medical Officer In-charge of the patient may
recommend whichever is lower.
v) Ordinarily not more than one advance shall be granted in respect of the
same illness or injury. If, however, the Medical Officer In-charge of the
patient, on consideration, certifies that the estimated cost of the
treatment would be much more than what has been previously certified
by him either due to longer duration of the treatment or due to the fact
that the patient requires costly treatment which was not in view at the
time of issuing the original certificate, a second advance may be granted
at the discretion of the authority competent to sanction the advance,
provided the total amount of the advance already granted and applied for
does not exceed ` 5,000/-*.
vi) Normally the amount of the advance shall be adjusted against subsequent
claim for reimbursement of the expenditure as admissible under the
Medical Attendance Rules and orders and the balance, if any, recovered
from the pay of the employee concerned in four equal monthly
instalments starting from the pay for month in which he draws duty pay
and/or leave salary after the treatment is over.
vii) In cases requiring prolonged treatment, reimbursement of medical
expenses may continue to be allowed to employees to the extent
otherwise admissible under the rules and the advances already sanctioned
in such cases shall not be adjusted for so long as certificate from the
Authorized Medical Officer In-charge of the patient is produced to the
effect that the patient is required to continue treatment and that the
anticipated cost of future treatment shall not be less than the amount of
the advance already granted to him. In a case, however, where the
anticipated cost of further treatment as certified by the Authorized Medical
Officer In-charge of the patient falls short of the amount of the advance,
adjustment of the advance to the extent of the difference between the
amount of the advance and the anticipated cost of further treatment, may
be effected from the reimbursement claim of the employee, the balance
amount, if any, may be recovered as at 11.6.1 (vi) above.
viii) In the case of temporary employee the grant of an advance under these
orders shall be subject to the production of surety from a regular
employee of the company or other surety acceptable to the Competent
Authority.
effect, approved by CMD.
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11.7 RULES FOR THE GRANT OF FAN ADVANCE:
11.7.1 The non-executive employees of the company will be eligible for the grant
of Fan Advance as per the following conditions:
a) The advance will be admissible only to the permanent non-executive
employees who are not staying in company's quarters, for purchase of
new fans only.
b) The advance shall be sanctioned to employees who have completed one
year's service in the company.
c) The advance shall be limited to the extent of the cost of the Fan or
`2000/-* whichever is less.
d) The advance will be interest free and will be recovered in equal monthly
instalments not exceeding 25, commencing with the pay drawn by the
employee immediately after the advance is drawn.
NOTE:
Advance for purchase of second fan may be granted on expiry of

05 years from the drawal of the first advance, but the employees will be
required to pay interest at the rate payable for the advance for purchase
of Moped/Scooter.
e) An employee who had drawn the advance shall, within one month of
drawing the advance, furnish to the Competent Authority a certificate
giving full particulars of the Fan purchased and the cash receipt for the
amount actually paid by him, if the actual price paid is less than the
advance taken, the balance shall be refunded forthwith.
f) Application for grant of advance in the prescribed form should be
submitted to the Establishment Section.
11.8 RULES FOR GRANT OF HOUSE BUILDING ADVANCE:
11.8.1 Objective:
To establish uniform policy and rules relating to grant of House Building
Advance to employees of the company,
11.8.2 Policy:
To grant House Building Advance is a purely welfare measure which will
not confer any right or benefit on the employee nor impose any obligation
or liability on the company.
11.8.3 Title:
These rules may be called the MECON Limited House Building Advance
Rules.
11.8.4 Scope:
(1) Grant of House Building Advance shall be subject to availability of funds

and provisions in the annual revenue budget of the Company.
110
(2) House Building Advance shall be admissible for: -
(a) Acquisition or purchase of land (free hold or on long term lease) and
construction of house thereon;
(b) Construction of house on land already acquired/purchased;
(c) Purchase/acquisition of ready built house or flat on ownership or on long

term lease basis;
(d) Purchase of a flat or house under Self financing Scheme or Housing
Scheme of Central or State Governments, Municipalities, Local Bodies and
registered Co-operative Housing Societies; and
(e) Enlarging of living accommodation of an existing house;
(3) The advance shall be admissible for purchase or acquisition of land and for
construction/acquisition of houses/flat anywhere in India, where the
employee would like to settle down on superannuation, provided the place
is within the jurisdiction of Municipalities/City Improvement
Trust/Development Authorities and Gram Panchayat.
(4) Amongst the applicants having different length of service, preference will
be given to those, who have completed longer length of service in the
Company.
11.8.5 Definitions:
(a) “Company” means MECON LIMITED.
(b) “Chairman" means Chairman-cum-Managing Director of the company.
(c) “Competent Authority" means in relation to exercise of power the
Board, Chairman or any other person to whom power is delegated in that
behalf.
(d) “Employee” means any person appointed by the company to any service
or post in connection with the affairs of the company but excludes Casual
employees, Part–time employees, employees on contract, Trainees, Work-
charged employees and employees on deputation from other organisation.
(e) “Permanent Employee” means a person who has been confirmed in a
permanent vacancy on satisfactory completion of probation after
appointment upto the age of superannuation as per the Company's Rules.
(f) “Salary” means the basic pay drawn by the employee in his/her
substantive post and dearness allowance.
(g) “Specified Locations" means, where the company has its permanent
offices.
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11.8.6 Eligibility:
(1) House Building Advance may be granted to permanent employees of the
company who have completed continuous service of 6 years and above,
except those excluded under Clause 11.8.6 (3).
(2) In case where both husband and wife are employees of the company and
are entitled to grant of advance, it shall be admissible to only one of them.
(3) An employee shall not be eligible for advance, if: -
(a) He/She owns a house in his/her own rights either individually or jointly.
(b) He/She has taken loan or assistance or advance4 or any other form of
benefit for the purpose of construction or purchase of a house from
sources such as financial institutions, LIC etc.
(c) His/Her minor children own a house whether individually or jointly.
11.8.7 Conditions to be Fulfilled:
The grant of advance under these rules shall be subject to following
conditions:-
(A) For the Purchase of Land and/or Ready Built House/Flat:
(i) The title of the vender over the land and/or house/flat under purchase
should be clear, marketable and transferable.
(ii) The land and/or house/flat should be free from all or any claims, charges
and encumbrances.
(iii) The vendor should have unequivocal legal right to transfer the right, title
and interest over the said land and/or house/flat in favour of the
purchaser.
(iv) The name of the vendors must have been mutated in the revenue register
of the State government as well as in the register of Municipal
Corporation/Panchayat as the case may be and they must have paid the
upto date rent thereof against the rent receipt issued in their names.
(v) In case of the vacant land, it should be meant for dwelling purposes and
the necessary permission under Urban Land (Ceiling & Regulations) Act,
1976, Chhotanagpur Tenancy Act or any other Act as may be applicable
for transfer in favour of the Purchase/employee must be obtained and
thereafter the employee should also obtain the necessary permission
under Urban land (Ceiling & Regulations) Act for mortgaging the said land
in favour of the Company,
(vi) In case of ready built house/flat, the building plan must have been
approved by the Competent Authority and the estimated cost of the
building/flat must be supported by the certificate of the Government
approved valuer/ Engineer /Architect.
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(B) For Construction of House on Land Already Acquired/ Purchased:
(i) The plot of land over which the house is to be constructed must have been
registered in the name of the employee himself/her self or jointly with
his/her spouse and the title thereof must be clear, marketable and
transferable and should be free from all or any claims, charges and
encumbrances.
(ii) The name of the employee or his/her spouse should be mutated in the
revenue/register of the state Govt. and/or in the register of Municipal
Corporation/Panchayat and should submit the paper in proof thereof
alongwith the upto date rent receipt in respect of the said land issued in
his/her own name.
(iii) The necessary permission to mortgage the vacant plot of land in security
of the House Building Advance in favour of the company should be
obtained from the Competent Authority under the Urban Land (Ceiling &
Regulations) Act. 1976 and/or from any other authorities as may be
required under any other Acts or Rules or the Title Deed under which the
said plot of land has been acquired.
(iv) The building plan of the proposed house must be approved by the
Competent Authorities of the Municipal Corporation/Panchayat as the case
may be and the estimated cost of construction of the said house should be
duly certified by the Government approved competent Engineer or
Architect.
(C) Purchase of House/Flat from Statutory Bodies under Self Financing
Scheme or Housing Scheme:
(i) The employee shall submit the following documents and information:
(a) The detailed housing scheme of the Statutory Body;
(b) Allotment letter of a house/flat from the Statutory Body in the name of the
employee or jointly with his/her spouse;
(c) Permission of the Statutory body for mortgage of the house/flat in favour
of the Company in security of the house building advance;
(d) Non-encumbrance certificate from the Statutory Body in respect of the
house/flat allotted;
(e) Permission/Consent of the Statutory Body for entering into a Tripartite
Agreement as per the advance till such time the deed of conveyance in
respect of the said house/flat is not executed by the Statutory Body in
favour of the employee or jointly with his/her spouse.
(ii) The employee shall be required to mortgage the house/flat in favour of the
company within 60 days of execution of the said deed of conveyance by
the Statutory Body in his/her favour.
(D) Purchase/Construction of House/Flat through Registered
Cooperative Housing Societies:
(i) The employee shall submit following documents and information:
(a) Certificate of registration of the concerned cooperative Housing Society

alongwith a copy of its registered bye-laws;
113
(b) Employees membership certificate of the said society;
(c) Title of the Society over the land on which the housing scheme is under
execution should be clear, marketable and transferable and should be free
from any claim, charges, encumbrances or acquisition by the Government;
(d) Building plan of the society duly approved by the Competent Authority;
(e) Consent letter of the society to mortgage the proportionate share in the
land alongwith the house/flat in favour of the company in security of the
house building advance to concerned employee till such time the deed of
conveyance/transfer in respect of the said house/flat is not executed by
the society in favour of the employee;
(f) Consent letter of the society for entering into a Tripartite Agreement as
per the format of the Company towards the security of the advance.
(ii) The employee shall be required to mortgage the said house/flat in favour
of the company within 60 days from the date of transfer of ownership in
favour of the employee by the said society.
(E) For Enlarging Living Accommodation of an Existing House:
(i) The employee shall submit the following documents and information:
(a) Title in respect of the existing house must be in the name of the employee
himself/herself or jointly with his/her spouse and the same must be clear,
marketable and transferable and should be free from all or any claims,
charges and encumbrances.
(b) Building plan of the proposed construction/enlargement of the existing
house duly approved by the Competent Authority.
(c) Estimated cost of construction duly certified by the Government approved
Engineer/Architect.
(ii) When the House Building Advance is required for the purposes mentioned
in (A), (C) and (D) above, the employee should produce a copy of the
agreement for sale/letter of intent from the seller indicating also the sales
price.
(iii) All the title documents in respect of the land, and/or house/flat, as the
case may be, should be provided for verification of the title and its
transferability, If the title documents are in language other than Hindi or
English, it should be translated into English and such translation copy
should be certified by an Advocate to the effect that the translated copies
are true and correct translation of the original documents.
(iv) Stamp duty, if any chargeable on documents, registration fees and other
expenses to be incurred for the completion of legal and other formalities
relating to execution of mortgage deeds, power of attorney, agreements
etc, will be borne by the employee.
(v) Permission under the Conduct Rules should be obtained before purchase of
land/house/flat etc.
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11.8.8 Amount of Advance Entitlement:
(1) Not more then one advance shall be sanctioned under these rules to an
employee during his/her entire service.
(2) Amount of advance shall be calculated as per Clause (A), (B) or (C) as the
case may be hereunder. However, the employee shall have the option to
avail the advance either under Clause (A) or (B).
(A) For New Construction, Acquisition/Purchase:
i) 45 times of the salary of the employee as on date of application; or
ii) 75% of the total value of house to be constructed; or
iii) 75% of the purchase price of a ready built house; or
iv) ` 1,00,000/- whichever is the least.
(B) For New Construction, Acquisition/Purchase:

i) 75 time of the salary of the employee as on date of application; or
ii) The actual cost of the house/flat to be constructed; or
iii) ` 2,00,000/- whichever is the least.
(C) For Enlarging Living Accommodation of Existing House:

i) 30 times of the salary of the employee as on date of application; or
ii) ` 80,000/- or
iii) 75% of the total basic of the proposed construction/enlargement

whichever is least, provided house building advance has not been taken
earlier.
(3) Notwithstanding the provisions contained under Clause 11.8.8 (ii) the
advance shall be restricted to the amount that the employee may be
expected to be in a position to repay by convenient monthly deductions
from his/her salary before the date of superannuation under the rules
of the company and partly, if necessary, from the gratuity that the
employee may be entitled to under the Gratuity rules of the company,
Further, the company retains the option for sanction of a lesser amount of
advance, according to the budget provision/fund position.
(4) The repaying capacity of the employees shall be computed as under:
Length of remaining services Slab of repaying capacity

A Employee retiring after 20 years 35% of the basic pay
B Employees retiring after 10 40% of the basic pay after adjustment of
years but not later than 20 years 60% of Death-cum-retirement Gratuity
(DCRG)
C Employees retiring within 50% of basic pay after adjustment of
10 years 70%of (DCRG)
(5) Gratuity entitlement shall be computed on the basis of the salary of the
employees as on date of his application.
(6) The restrictions under the Payment of Wages Act shall also be observed.
115
(7) The actual amount of advance to be sanctioned shall be determined by the
Competent Authority on the basis of building plan duly approved by the
Local Authorities and detailed specifications and estimates to be furnished
by the employees justifying the amount of advance applied for and shall,
in no case, exceed the estimated cost of construction or the employee's
entitlement herein above.
(8) The procedure for grant of advance for the purpose and the mode of
disbursement shall be as decided by the Competent Authority.
11.8.9 Disbursement of Advance and Security:
Disbursement of the advance sanctioned by the Competent Authority shall

be made as follows: -
(i) Advance for the Purchase of Land and Construction of House

thereon:
(a) An amount not exceeding 30% of the sanctioned advance shall be payable
to the employee for purchase of a developed plot of land on which
construction can commence immediately on receipt of loan, on his/her
executing an agreement in the proscribed form for repayment of the
advance (Form-I). In all such case, for which part of the advance is given
for the purchase of land, the land must be purchased and the sale deed or
certified copy in respect thereof produced for the inspection of the
Competent Authority within four months of the date of the drawal of the
advance or, within such further time as the Competent Authority may
allow in this behalf, failing which the employee shall be liable to refund at
once the entire advance to the company together with such penal interest
thereon, as may be decided by the Competent Authority from time to
time.
(b) An amount equal to 20% of the sanctioned advance shall be payable to
the employees on his/her mortgaging in favour of the company, the land
purchased by him/her alongwith the house to be built thereon in Form
No. II and III and on obtaining approved building plan from the local
competent Authority in this regard.
(c) An amount equal to 30% of the sanctioned advance shall be payable when
the construction of the house reaches plinth level satisfactorily as per the
building plan approved by the local Authorities.
(d) The balance of the 20% sanctioned advance shall be payable when the
construction of the house reaches roof level satisfactorily as per the
building plan approved by the local authorities.
(ii) Construction of House on Land Already Purchased/Owned by the
Employees:
(a) An amount not exceeding 30% of the sanctioned advance shall be payable
only after execution of the necessary agreement and document and
mortgaging the land purchased/owned by the employee together with the
house to be constructed thereon in favour of the company in form No. I,
II and III.
(b) 40% of the sanctioned advance shall be payable when the house
construction reaches plinth level satisfactorily as per the building plan
approved by the local Authorities.
116
(c) The remaining 30% of the sanctioned advance shall be payable when the
house construction reaches upto roof level, satisfactorily as per the
building plan approved by the Local Authorities.
(iii) Purchase of Ready Built House/Flat:
(a) The amount of advance sanctioned be the employee in one lump-sum on
his/her:-
(b) Executing an agreement with the company to conclude the sale

and to mortgage the property in favour of the company within four months
of the grant of advance or, within such extended period as may be decided
by the Competent Authority; and
(c) Producing three acceptable sureties in the prescribed form (Form
No. IV) from amongst the regular employees of the company of adequate
status and having sufficient length of service, for the sum to be advanced
till the house/flat is mortgaged in favour of the company;
(d) In addition to compliance of i & ii above, the employee, if the Competent
Authority so decides, shall be required to furnish adequate collateral
security to the satisfaction of the Competent Authority, till the land
together with the ready built house/flat on it is mortgaged to the
company.
(e) The employee standing sureties must not be under liability of similar
surety to any other employee.
(f) The liability of the sureties shall continue till the house/flat built/purchased
is mortgaged to the company or till the advance together with the interest
due thereon is fully repaid to the company, whichever happens earlier.
(iv) Purchase of Flat/House from Statutory Bodies under Self-

Financing Scheme:
(a) The amount of advance sanctioned shall be paid directly to the Statutory
Body in installments on the basis of the payment schedule of the
flat/house indicated by the concerned Statutory Body, on execution of an
agreement with the company and the tripartite Agreement to be executed
between the employee, the concerned Statutory Body and the company,
(b) Grant of advance in such cases shall, however, be subject to other
provisions of the House Building Advance Rules.
(v) Purchase/Construction of Flats/House through Membership of Co-
Operative Housing Societies:
(a) The sanctioned advance shall be released in the following manner:
(b) A sum equal to 30% of the advance sanctioned shall be released in
suitable installments as fixed by the company at the time of issue of
sanction of the basis of the payment schedule of the flat/house furnished
by the concerned Co-Operative Housing Society. For release of each
instalment the employee shall produce a demand letter from the Housing
Society indicating the progress of the construction, the correctness of
which may be verified if felt necessary by the Competent Authority by
arranging inspection of the premises.
117
(c) Grant of advance in such cases shall, however be subject to other
(vi) For Enlarging Living Accommodation of an Existing House:
(a) The sanctioned amount of advance shall be paid in two instalments on
mortgage of the existing house and the proposed construction in favour of
the company,
(b) The employee shall submit a completion certificate issued by the
competent Authority.
(c) Grant of advance in such cases shall, however, be subject to other
11.8.10 Interest:
(i) Advance sanctioned under Clause 11.8.8 (A) and 11.8.8 (C) under these
rules shall carry interest @ 4% per annum from the date of drawal of
advance.
(ii) Advance sanctioned under Clause 11.8.8 (B) under these rules shall carry
the same rate of interest from the date of drawal of advance as is charged
by the Government of India while sanctioning advance to their employees.
(iii) The amount of interest shall be calculated on the balance of the advance
outstanding on the first day of each month.
11.8.11 Mortgage:
(i) Mortgage for this purpose shall include equitable mortgage, wherever
permissible under the provisions of the Transfer of Property Act.
(ii) For the purpose of equitable mortgage, the following documents are
required to be executed:
(iii) The company shall always have the first and par amount charge and
interest over the mortgaged land and house/flat constructed over it in
security of its advance. No further lien, charge, alienation or transfer of
the property, mortgaged to MECON, in any form, mode and manner shall
be permissible for any purpose other than a second mortgage for taking
further advance from a financial institution established by the
Central/State Govt. or a nationalised bank, LIC only for addition or
extension of the mortgaged house or flat with the prior written permission
of the company.
118
11.8.12 Construction, Maintenance, Insurance etc.:
(i) The Construction of the house shall be:-

(a) Carried out exactly in accordance with the approver plan and specifications
on the basis of which the advance has been computed and sanctioned.
The plan and specifications shall not be departed from without the prior
approval of the Competent Authority. The employee shall certify when
applying for instalments of the advance admissible at the plinth/roof level,
that construction is being carried out strictly in accordance with the
approved plan and estimates furnished by him to the company that the
construction has actually reached plinth/roof level, and that the amount
already drawn has actually been used on the construction of the house.
The Competent Authority shall, thereafter, arrange to have an inspection
carried out to verify the correctness of the certificates. In places where the
company does not have its offices, the cost of such inspections will be
borne by the company,
(b) Completed within 24 months of the date on which the first installment of
the advance is released. Failure to do so shall render the employee liable
to refund the entire amount advanced to him together with such interest,
in one lump-sum, as may be decided by the Competent Authority.
(c) Immediately on completion of the house construction, a completion report
of the house shall be submitted by the employees, upon which a final
inspection of the house shall be carried out by a Civil Engineer of the
company to verify as to whether the building has been constructed in
accordance with the approved building plan and the employee has utilised
the entire amount of advance or not.
(d) Immediately, on completion or purchase of the house, as the case may be,
the employee concerned shall insure the house, at his/her own cost, with
the General Insurance company or any nationalised Insurance Agency for
a sum not less than the amount of advance and shall keep it
comprehensively so insured till the advance together with interest, is fully
repaid to the company and deposit the policy document with the company,
The prima must be paid regularly and the receipts produced for inspection
by the Competent Authority. In the event of failure on the part of the
employee to effect insurance as above, it shall be lawful, but not
obligatory, for the company to insure the house, at the cost of the
employee concerned and recovered the amount of the premium paid from
the salary of the employee in one lump-sum. The Competent Authority
shall obtain from the employee a letter (as prescribed in form No. III) to
the Insurer with whom the house is insured, to notify to the latter the fact
that the company is interested in the Insurance Policy secured. The
Competent Authority shall forward the letter to the Insurance Company
Authority shall forward the letter to the Insurance company and obtain
acknowledgment. In the case of insurance affected on annual basis, this
process shall be repeated every year until the advance has been fully
repaid to the company.
(e) The house must be maintained in good repair by the employee concerned
at his own cost. He shall also keep it free from all encumbrances, and shall
continue to pay all the Municipal and other local rates and taxes regularly
until the advance has been repaid to the company in full. The employees
119
shall furnish an annual certificate to this effect to the Competent
Authority.
(f) After completion of the house, annual inspections shall be carried out by
any authorized officer under instructions from the Competent Authority
concerned to ensure that the house is maintained in good repair, until the
advance has been repaid in full. The employee concerned shall afford
necessary facilities for these inspections by the officers designated by the
company for the purpose.
(g) Furnishing of false certificate or information shall render the employee
concerned liable to serious disciplinary action under the rules of the
company, He shall also be called upon to refund to the company forthwith
the entire advance drawn by him together with such interest, in lump-
sum, as may be decided by the Competent Authority.
11.8.13 Repayment of the Advance:
(i) Subject to Clause 11.8.12 (i-b), the advance granted under these rules,
together with interest thereon shall be repaid in full by equal monthly
instalments within a period not exceeding 20 years. Recovery of the
principal amount of advance shall be made in not more than 180 monthly
instalments and the interest shall be recovered in not more than 60
monthly instalments.
(ii) The amount to be recovered shall be fixed in whole rupees, except in the
case of the last instalment when the remaining balance, including any
fraction of a rupee, shall be recovered.
(iii) Recovery of advance granted for construction of a new house shall
commence from the pay of the month following the completion of the
house or the pay of the 24th month after the date on which the first
instalment of the advance is paid to the employee, whichever is earlier.
(iv) In the case of advance for purchase of a ready built house, recovery shall
commence from the pay of the month following that in which the advance
is drawn.
(v) It will be open to the employee to repay the advance in a shorter period if
he/she so desires. In any case, the entire advance must be repaid in full
with interest thereon before the date on which the employee is due to
retire from service.
(vi) An employee, who is due to retire within 20 years of the date of
application for grant of advance, and under the Services Rules is eligible
for payment of gratuity, the Competent Authority may permit him/her to
repay the advance with interest in convenient monthly instalments during
the remaining period of his/her service, provided he/she agrees to the
incorporation of a suitable clause in the prescribed Agreement and
Mortgage deed to the effect that the company shall be entitled to recover
the balance of the said advance with interest remaining unpaid at the time
of his/her retirement or death proceeding retirement of the employee from
the whole or any specified part of the gratuity that may be admissible.
This shall however, be subject to the provisions on the Payment of
Gratuity Act.
120
(vii) In case the employee does not repay the balance of the advance due on or
before the date of his retirement, it shall be open to the company to
enforce the security of the Mortgage at any time, thereafter, and recover
the balance of the advance due together with interest and cost of
recovery, by sale of the house or in such other manner, as may be
permissible under the law.
(viii) Recovery of the advance shall be effected through the monthly/pay/ leave
salary/subsistence allowance to him/her.
(ix) If any employee ceases to be in service for any reason other than normal
retirement/superannuation, or if he/she dies before repayment of the
advance in full, the entire outstanding amount of advance shall become
payable to the company forthwith. The CMD/Chief Executive may,
however, in deserving cases permit the employee concerned, or his/her
successors in interest, as the case may be, or the sureties in cases where
the house has not been completed and/or mortgaged to the company by
that time, to repay the outstanding amount together with interest thereon
in suitable instalments. Failure on the part of the employee or his/her
successors, as the case may be, to repay the advance for any reason
whatsoever, will entitle the company to enforce outstanding amount, as
may be permissible under the law.
(x) The property mortgaged to the company shall be reconveyance to the
employee concerned or his/her successor in interest, as the case may be,
at his/her cost, after the advance, together with the interest thereon has
been repaid in full (Form of reconveyance Form No. IV).
(xi) In the event of any default or breach of these rules it shall be open to the
Company; to enforce the security of the mortgage at any time and recover
the balance outstanding including interest and costs and other charges,
against the employee.
11.8.14 House Rent Allowance:
(i) Employee, who avails advance under these rules for construction/
purchase of house/flat shall be eligible for House rent Allowance as per the
House Rent Allowance rules of the company, However, House Rent
Allowance shall be sanctioned only on receipt of completion report and
final inspection as per Clause 11.8.12.
(ii) In case the employee does not himself stay in the house, the company
shall have the first option to take house constructed/ purchased by the
employee out of House Building Advance under these rules, on rent, either
for its own use or for accommodation of its employees posted at that
place, the rent payable for such hiring being assessed at the fair rent of
the house as determined by the Local Authorities. The house can be let
out to any other persons only if the company does not exercise its option
as mentioned above and such refusal is obtains by the employee
concerned in writing.
(iii) Where an employee constructs a house at the place of his/her posting,
where the company or its clients has a housing colony, the employee will
have to surrender Company's house, if any, allotted to him/her as soon as
the construction of house reaches a stage where the house is in a
reasonably habitable condition but not exceeding a period of 24 months
from the date of drawal of the 1st instalment of the advance. Thereafter
121
the employees concerned will also be eligible for allotment of any
residential accommodation in the Company’s colony at the time of his
posting.
(iv) In case of purchase of ready built house/flats, vacation of Company's
house as at stated above at (iii) shall be immediately after purchase.
The Chairman may from time to time formulate procedures for making
application for loan under these rules, for declaration, and undertaking to
be furnished for execution of the mortgage of disbursement of advance
and other purposes. The employee shall be bound to adhere to the said
procedures as applicable and any deviation therefrom will not be
permitted, except by previous consent of the company, In all cases, before
disbursement of the loan, an employee shall be bound to comply with all
legal formalities and to make out an indisputable and marketable title to
the property free from all encumbrances. If the company or its legal
advisers reject such title, the company shall not be bound to advance or to
make disbursement of any sum. The grant of advance shall be at the sole
discretion of the company.
11.8.15 Interpretation/Relaxation:
(i) The Chairman-cum-Managing Director/Chief Executive is authorized to
prescribe the forms for various purposes under these rules. In the event of
any doubt or dispute with regard to interpretation of any or all the
provisions of the rules, the Chairman-cum-Managing Director/Chief
Executive shall be the final authority whose interpretation of the rules shall
be final and binding.
(ii) The company reserves the right to modify, cancel or amend all or any of
these rules or any supplementary rules issued in connection with these
rules, without previous notice of its intention, as well as the right to give
effect thereof from the date of issue.
(iii) Relaxation, if any, of provisions under these rules shall be the discretion of
the Chairman-cum-Managing Director.
NOTE:
1. In support of the valuation of the property, all relevant documents, which
would assist the company to verify the correctness thereof, should be
attached.
2. With a view to prime - facie determine the marketability of title and in the
absence of any mortgage, charge or encumbrance thereof, a short resume
of the nature of the documents held in original plus attested copies thereof
should be furnished.
3. Detailed plans and specifications in support of the estimated cost of

construction and the Architect's/values report on valuation obtained
thereon, bills of quantities and other details should be furnished.
4. In case original documents can not be produced in support of the title,
state the reasons thereof indicating what other documentary proof can be
furnished in support of the claim.
5. List of Documents Required for Establishing the Title, Marketability etc. of

the Property.
122
A. For Purchase of Land for Construction of House:
(a) Seller's Title Deed.

(b) Non-encumbrance certificate in respect of the land for the preceding 12
years.
(c) Mutation certificate/Correction slip in the name of the seller.
(d) Current Rent receipt from the revenue department of the Government for
rent paid by the seller in respect of the land.
(e) Permission from the Competent Authority under the Urban Land (Ceiling &
Regulation) Act - 1976 for sale/purchase of the land.
(f) Agreement entered into between seller and the buyer on non-judicial
stamp paper of appropriate stamp value applicable in the respective State.
(g) Any other documents in respect of the land.
B. For Construction of House on the Land already Purchased/
Acquired by the Applicant:
(a) Title Deed in the name of the applicant.
(b) Non- encumbrance certificate in respect of the land for the preceding 12
years.
(c) Mutation certificate/correction slip in the name of the applicant.
(d) Currant rent receipt showing payment made to the government by the
applicant in respect of the land.
(e) Permission of the Competent Authority under the Urban Land (Ceiling &
Regulation) Act - 1976 for mortgage/creating mortgage by deposit of title
deeds in respect of the land and the house to be constructed in favour of
MECON.
(f) Building plan duly approved by the Competent Local Authorities.
(g) Detailed cost estimates of the house to be constructed (by a licensed
estimator).
(h) Any other document in respect of the land.
123
C. For Purchase of Ready Built House:
(a) Title Deed of the seller.
(b) Non-encumbrance certificate in respect of the property for the preceding
12 years.
(c) Mutation certificate/correction slip in the name of the seller.
(d) Current rent/tax receipt for payment made by the seller to the
Government/Municipality/Corporation.
(e) Agreement entered into between the seller and the buyer on non-judicial
stamp paper of appropriate stamp value applicable in the respective State.
(f) Valuation of the property by a licensed valuer.
(g) Building plan duly approved by the Competent Authority of the area
concerned.
(h) Any other documents in respect of the land.
124
FORM NO. 1
ON NON - JUDICIAL STAMPED PARER OF ` 5/- ONLY AGREEMENT
This agreement made this ……………… day of …………………………… one thousand nine
hundred and eighty between Shri ………………………………………………………son of
Shri………………………………………………at present employed as ………………………………under
MECON LIMITED, hereinafter called in Borrower (which terms or expression unless
excluded by or repugnant to the context shall include his heirs, successors, executors,
administrators, personal representatives and assigns)on the one part and MECON
LIMITED, an existing company having its registered office at Ranchi, in the State of
Jharkhand hereinafter referred to as the company (Which terms or expression unless
excluded by or repugnant to the context shall include its successors & assigns ) on the
other part.
Where as the Borrower had applied for and has been granted an advance of
`.…………………(Rupees …………………………………………only) for purchase of land and
construction of hose there on /construction of the land already acquired by
him/purchase of ready built house in accordance with the rules of the company a in
force from time to time and the Borrower has agreed to conform to and abide by the
following terms and conditions:-
Now this agreement witnesses as follows:-
1 ADVANCE FOR PURCHASE OF LAND & CONSTRUCTION OF HOUSE:
i) For Purchase of Land:
20% of the total sanctioned advance will be released after execution of
this covenant.
ii) For Construction of House:
Executing a mortgage deed or executing an equitable mortgage of the
land purchased alongwith the house to be built thereon by the employees
and registration of the memorandum of deposit of title deed and power of
Attorney and on his indicating a schedule of construction of the house, a
further amount not exceeding 20% of the advance will be sanctioned. A
further advance not exceeding 30% of the advance will be sanctioned
when the house reaches plinth level. The remaining 30% of the advance
shall be sanctioned when the house reaches roof level. The Borrower shall
ensure that the construction of the house is carried on according to the
aforesaid schedule and is completed in all respects within 24 months of
the first instalment of the advance.
Construction of House on Land already purchased owned by the
Borrower:
An amount not exceeding 30% of the sanctioned advance will be paid
after the borrower mortgages or creates an equitable mortgage of the
land purchased/owned by him in favour of the company and registers the
memorandum of deposit of title deed and power of attorney 40% of the
advance sanctioned will be paid when the house reaches plinth area. The
remaining 10% of the sanctioned advance will be paid when the house
reaches roof level.
Or
125
Purchase of Ready - Built House:
The amount of advance sanctioned shall be paid to the Borrower in lump-
sum on his (i) executing this agreement subject to the condition that he
will conclude the purchase and will execute a mortgage deed or an
equitable mortgage of the house in favour or the company register the
memorandum of deposit of title deed and power of attorney within four
months of the grant of the loan and (ii) will produce three acceptable
sureties in the prescribed form from regular employees of the company
for the sum to be advanced until the mortgage deed or equitable
mortgage in favour of the company is executed and the memorandum of
the deposit of the title deed and power of attorneys registered.
2. Repayment of the Advance:
(a) The advance together with interest shall be recovered in monthly

instalments.
(b) Recovery shall commence from the pay of the borrower of the month
following the completion of the house or the house or the pay of the
twenty-fourth.
(c) Month after the date on which the first instalment of the advance is paid
to the borrower, which ever is earlier. If the advance is taken for
purchasing ready built house, recovery shall commenced from the pay of
the month following that in which the advance is drawn.
3. The borrower hereby authorize the company to collect and adjust from
the admissible gratuity that may become payable by the company to him
or his nominee or his legal heirs any amount towards repayment of the
outstanding of any of the events under which such gratuity would be
admissible.
4. The borrower also agrees that the company shall have the first and
paramount charge and lien on all dues of the borrower including wages
and salary, dearness allowance, bonus, retirement benefits, such as
gratuity, ex-gratia payment etc.
5. Interest:
The borrower agrees to pay interest at the same rate of interest as is
charged by Government of India while sanctioning advance to their
employees. The amount of interest shall be calculated on the balance of
advance outstanding on the first of each month.
6. Insurance:
The borrower hereby agrees that immediately on completion or purchase
of the land or house as the case may be, shall insure the house at his own
cost with the General insurance Corporation of India Limited for the actual
coat of such property and shall keep the property insured against damage
as to fire, flood, lightning and earthquake till the amount of advance
together with the interest is fully recovered from the borrower. The
borrower will assign the Insurance Policy in favour of the company and
keep it deposited with the company until the amount with interest is
repaid in full. The borrower agrees to pay the premium regularly and to
produce the receipts to the competent authority of the company for
inspection.
126
7. Mortgaging the Land/House:
The borrower shall execute a mortgage deed or an equitable mortgage of
the land alongwith the house and register the memorandum of deposit of
title deed with the Registrar/Sub-registrar in the prescribed form on non-
judicial stamp paper of appropriate value before the drawal of
advance/within four months from the date of drawal of advance, in favour
of the company,
8. That the borrower hereby undertake that he will not transfer or create any
change on the property concerned in favour of any third party before
repayment in full of the advance and interest thereon.
9. That the borrower will execute a Power of Attorney duly registered in the
enclosed form on the appropriate stamp value in favour of the company
before drawal of the advance/within 4 months of the drawal of the
advance.
10. The borrower agrees to abide by all the terms and conditions of the House
Building Advance rules of the company and in the event of failure to
comply with the provisions of this agreement and the rules, the company
will be entitled to recover immediately the entire advance without
prejudice to any other rights available to the company in that behalf.
In witness whereof the hereto put their respective signatures on the day,
month and year first above written:
Signed, sealed and delivered by within named at …………… in presence of
Witness:
1.
2.
Signed sealed & delivered by within named BORROWER

MECON LIMITED by its constituted Attorney
Shri…………………………………………………
In the presence of:
Witness:
1.
2.
For & On behalf of MECON LIMITED
127
FORM NO. II
FORM OF SURETIES FOR ADVANCE FOR PURCHASE OF
READY BUILT HOUSE
This agreement made this …… Day of the ……month ……… of the year ………………
between Shri ………………………………… Son of Shri …………………………………… here -in after
called the principal and (1) …………………………………………………………Son of Shri
…………………………Resident of …………………… (2)………………………………………Son of Shri
……………………………Resident of ……………… (3) ………………Son of Shri ………………………
Resident of …………hereinafter called the sureties of the one part (the principal and
sureties shall mean and include their heirs, legal representatives, executors, and
assigns) on the one part and the MECON Limited, hereinafter called the company of
the other part (the terms company shall mean and include its assigns).
Where as the Principal applied for grant of an advance of ` ………… (Rupees ……) for the
purchase of a ready built house at …… from ………… in accordance with the rules of the
company presently inforce or to be subsequently amended and where as the company
has agreed to pay the said amount of `…… to the Principal, the principal and his
sureties hereby jointly and severally agree to conform and abide by the following
terms and conditions:-
1. That the Principal shall conclude the purchase of the ready built house and
mortgage the same in favour of the company within four months from the
date of drawal of the advance.
2. That if the principal fails to mortgage the house for any reason
whatsoever within the period stipulated above he shall refund the entire
advance in lump-sum together with interest at the rate of ……………p.a
immediately after expiry of the aforesaid period.
3. That the principal and his sureties undertake to conform strictly to the
terms of this bond and further agree that in case of violation of any of the
terms aforesaid, the company will be entitled to realise the entire amount
together with interest due from the principal and his sureties jointly or
severally.
In witness whereof the Principal and his sureties put their hands on this
……………… day of the month ……………… of the year aforesaid of ……………………
Witness:
1.
2.
Sd/- Principal
Sd/- Sureties
1.
2.
3.
128
FORM NO. III
FORM OF LETTER FOR INTIMATING TO THE LIFE INSURANCE CORPORATION
OF INDIA, COMPANY'S INTEREST IN INSURANCE POLICIES OF HOUSES
CONSTRUCTED/PURCHASED WITH HOUSE BUILDING ADVANCE ADMISSIBLE
UNDER THE RULES.
From:
To:
Dear Sir,
I am to inform you that MECON is interested in House Insurance Policy No
………………………………….. Secured in your Corporation and to request that you will kindly
insert a clause to the following effect in the Policy.
Form of clauses to be inserted in the Insurance Policy
1. It is hereby declared and agreed that Shri …………………… (the owner of
Building bearing Municipal No ………………… (hereinafter referred to as the
Insured in the schedule to this policy) has mortgaged the house to
MECON (hereinafter called the Company) as security for an advance for
the construction of the house and it is further declared and agreed that
the company is interested in any money which but for his endorsement be
payable to the said Shri …………………………………… (the insured under this
policy) in respect of loss or damage to the said house (which loss or
damage is not made good by repairs, reinstatement or replacement) and
such money shall be paid to the company as long as he is the mortgage of
the house and his receipt shall be full and final discharge to the
corporation in respect of such loss or damage.
2. Save as by this endorsement expressly agreed, nothing herein shall
modify or affects the rights or liabilities of the insured or the corporation
respectively, under or in connection with this policy or any terms,
provision or condition thereof.
Yours faithfully,
Place:
Date:
129
FORM NO. IV
FORM OF RECONVEYANCE FOR HOUSE BUILDING ADVANCE
THIS DEED OF RECONVEYANCE IS MADE THIS …… day of ………1980. BETWEEN MECON
(hereinafter called the Mortgage which expression shall unless excluded by or
repugnant to the subject or context include his successors in office and assigns) of the
one part and Shri…………of ……………… (hereinafter called he mortgager which expression
shall unless excluded by or repugnant to the subject or context include his/her heirs,
executors, administrators and assigns) of the other part.
Whereas by indenture of mortgage, dated the …… day… of ………1980 and made
BETWEEN the Mortgager of the one part and the Mortgage of the other part and
registered at……………in book ……… volume ……… pages……… to ……… as No. ……for
(hereinafter called the PRINCIPAL INDENTURE). The Mortgager by the said Principal
Indenture mortgaged the property at ……. and more particularly described in the
Schedule hereunder written to the Mortgagee to secure as advance of Rs…….. made by
the Mortgagee to the Mortgager.
AND WHEREAS ALL MONEY due and owing to the security of the PRINCIPAL
INDENTURE have been fully paid and satisfied and the mortgagee has accordingly at
the request of the Mortgager agreed to execute reconveryance of the mortgaged
premises as in hereinafter contained. Now this indenture witnesseth that in pursuance
of the said agreement and consideration of the premises the Mortgagee do the hereby
grant, assign at ………… and comprised in the said Principal Indenture and more
particularly described in the Schedule hereunder written with their rights, easements
and appurtenances as in the PRINCIPAL INDENTURE expressed and all the estates
right title interest property claim and demand whatsoever of the Mortgagee into out of
or upon the said premises by virtue of the PRINCIPAL ENTURE to have and to hold the
premises heretofore expressed to be hereby granted, assigned and reconvened unto
and to the use of the Mortgager, for every free and discharged from all moneys
intended to be secured by said PRINCIPAL INDENTURE and from all actions, suits,
accounts, claims and demands for, or in respect of the said moneys or any part
thereof, for or in respect of, the PRINCIPAL INDENTURE OR of anything relating to the
premises And Mortgagee hereby covenants with the Mortgager hereby convenience
with the Mortgager that the Mortgagee that the Mortgagee has not done or knowingly
suffered or been party or privy to anything whereby the said premises or any part
thereof, are/is or can be impeached, incumbered or effected in title estate of otherwise
howsoever, IN WITNESS whereof the Mortgagee has caused ……… on his behalf to set
hand the day and year first above written.
Signed by ……… for and on behalf of the Mortgagee……
(Signature)
For & on behalf of MECON
In the presence of :
1st Witness :
Address :
Occupation :
2nd Witness :
Address :
Occupation :
130
FORM NO. V
THIS MEMORANDUM OF DEPOSIT OF TITLE DEEDS made at …... on the ………. day of
………. One thousand nine hundred and eighty ……. by …….. S/o ……………... presently
working as …………… in MECON Limited hereinafter called 'Borrower' (which expression
shall unless it be inconsistent or repugnant to the context or meaning thereof include
his/her heirs, assigns, legal representatives and executors) in favour of MECON
LIMITED, a company registered under the Companies Act, 1956, having its 'Company'
(which expression shall unless it be inconsistent with or repugnant to the context or
meaning thereof include its successors in office and assigns) witnesseth as follows:-
The BORROWER hereby confirms that Title Deeds mentioned in the FIRST SCHEDULE
here to, have in pursuance of an agreement previously made with the company, been
delivered and deposited by the BORROWER with the company at ………… with an intent
to create security thereon for the repayment to the company in accordance with the
said agreement of the sum of `……. (Rupees……………) borrowed and owing by the
Borrower to the company together with interest in accordance with the agreement
referred to above and of all such sums of money by way of principal, interest and
charges as are now due to which shall from time to time become due to the company
from the Borrower on any or all accounts.
FIRST SCHEDULE
(List of Documents)
SECOND SCHEDULE
"All that piece and parcel of land bearing (description of the properties in respect of
which mortgage by deposit of title deed is intended to be created)
…………………………………
together with the building already constructed and to be constructed thereon and
bounded and butted as under ".
East
West
North
South ……………………..
In witness whereof the Borrower has affixed his/her signature to this document on the
date, month and year written above.
WITNESSES:
1. BORROWER
2.
131
FORM NO. VI
I ………Son of …resident of …PS & District …at present residing at…District… working
as…in the MECON LIMITED, having its registered Head Office at Doranda, Ranchi and
hereinafter referred to as 'MECON' do hereby appoint and constitute the Secretary of
MECON, my true and lawful Attorney and authorize him to do the following acts, deeds
and things on my behalf and in my name:
1. To negotiate for sale, and after competition of negotiation to sell the land and
the house standing on plot No …situated at P.S. & District. and for this purpose
to apply for permission of the Competent Authority under the Urban Land
(Ceiling and Regulation) Act, 1976, if applicable, and after obtaining the
permission of the Authority execute the sale deed in my name and on my behalf
and present for registration and admit execution before the Registering
Authority, and receive consideration money from the purchaser and grant
receipt in full discharge of receipt of the consideration money.
2. My true and lawful Attorney will also have the authority to present for
registration the sale deed executed by me and admit execution of the sale deed
and receive consideration money and grant receipt for the payment.
3. My true and lawful "Attorney is also authorized to deduct out of the
consideration money the amount of interest and other charges, due from me on
account of the advance taken from MECON by creation of mortgage by deposit
of title deed on…/ by execution and registration of the mortgage deed on…for
purchase of land and construction of a residential house thereon/for construction
of a house on the land purchased by me/for purchase of house/flat and pay the
balance, if any to me.
4. My true and lawful attorney is also authorized generally to do all such acts deeds
and things as may be necessary for execution and registration of the sale deed
in respect of my land and house aforesaid.
5. I ratify and agree to ratify that all acts, deeds or things done by my true and
lawful Attorney shall be legal and valid and binding on me.
6. The authority hereby given to my true, and lawful attorney is irrevocable and
will remain in force till the amount taken as advance from MECON by
creation of mortgage by deposit of title deed on ./the mortgage bond executed
and registered by me in favour of MECON … with interest thereon is repaid in full
and further this authority will be exercised by my true and lawful Attorney when
default will be committed by me in making payment of the amount due from
me.
In witness whereof, I …execute this power or Attorney on this ……… day of 1980
Witness:
1. Signature:
Date:
2.
132
FORM NO. VII
I ……………… Son of Shri ………… resident of……………………..at present residing at
………………….. and working as ……………….. under the MECON Limited, (hereinafter called
the Borrower, which expression shall mean and include and include my heirs, legal
representatives, executors, administrators and assigns) hereby deposit my title deeds
mentioned in 1st schedule in respect of the immovable properties mentioned in 2nd
Schedule with the MECON Limited (hereinafter called the company, which expression
shall mean and include its successors and assigns) with intent to create an equitable
mortgage in respect of the properties covered by the said deed and described in 2nd
Schedule and give the same by way of security for the repayment to the company the
sum of Rs…....(Rupees………………} which the company has advanced/agreed to advance
to me for purchase of land and construction of a residential house thereon/for
construction of residential house on the land purchased by me/for purchase of
house/flat and interest, thereon, at the rate of ………. per cent per annum.
FIRST SCHEDULE
(List of Title Deeds)
SECOND SCHEDULE
Description of the properties in respect of which mortgage by deposit of title deed is

intended to be created.
Witness
Signature:
1.
Date :
2.
133
CHAPTER - XII
LEAVE TRAVEL CONCESSION RULES
12.1 DEFINITONS:
12.1.1 “Employees” means those in the service of the company including
probationers and deputationists, but excluding casual, part-time and
temporary/contract employees.
12.1.2 “Family” means an employee's (i) wife/husband as the case may be (one
only) residing with him/her and (ii) legitimate children, step children and
parents residing with and wholly dependent upon the employee.
NOTE:
i) “Children” include major sons, married and widowed daughters so long
as they are residing with and wholly dependent on the employee. Married
daughter will be treated as dependent provided all the following
conditions are fulfilled:
a) She is separated/divorced from her husband and not employed anywhere.
OR
Legal proceeding is in process for separation/divorce and she is not
employed anywhere.
b) She is residing with the employee regularly and her income from all
sources does not exceed ` 1500/- per month.
ii) Employees joining the services of the company on or after 21.07.1995

shall be entitled to claim LTC/LLTC only for self, spouse & maximum two
children and parents residing with and wholly dependent on the
employee.
iii) They will be treated as wholly dependent upon the employee if their
income from employment or any other source does not exceed `
1,500/- (Rupees Fifteen Hundred only) per month. The employee shall be
required to submit a list of dependents periodically, once in two years or
as and when asked for.
iv) “Legitimate children” do not include adopted children, except those
adopted under the personal law applicable to the employee.
v) Parents will be allowed LTC only for Hometown/750 Kms. in lieu of
Hometown.
vi) Female spouse of a deceased employee appointed on compassionate
ground will be given the option to include in the list of dependents either
her dependent parents or her parents-in-law who are residing with her
and are wholly dependent on her subject to the condition that their
income from all sources is less than ` 1500/- per month. The option
cannot be different for LTC and medical benefits, i.e., the declaration
made for LTC will be relevant for medical facilities as well. The option
once exercised shall be final and binding and no change will be allowed
during the service of such employee.
12.1.3 “Shortest route” means the route by which the destination can be
reached in SHORTEST TIME with entitled mode of travel.
134
12.2 ELIGIBILTY:
12.2.1 Employees who have completed one year of service are eligible for the
leave travel concession, to enable them and their dependent family
member to visit the home town.
With effect from 01.01.2010 from the block year 2010-11, LTC/LLTC shall
form part of “Cafeteria Approach” under perks and allowances for the
executive employees which is kept at 10% of revised basic pay.*
12.2.2 Leave travel concession shall be admissible once in a period of two years.
The block of two years shall be 1972 and 1973, 1974 and 1975, and so
on. The leave travel concession not availed of in any particular block can
be availed of before the end of the succeeding year, the regular block
years will, however, remain unchanged.
In the case of fresh entrants in company’s service the first block of two
years would be the regular block in which they complete one year of
continuous service, e.g., if a person joins service during 1979, he would
be entitled to the concession only in the block 1980-81 since he would
complete one year continuous service in that block.
12.2.3 An employee whose family is living away from his place of work may,
instead of availing the leave concession for himself and family once in two
years, avail of the concession for himself alone once in every year for
visiting his home town.
12.2.4 Leave travel concession shall be admissible only when an employee
proceeds on regular leave of not less than 05 days. The requirement of 05
days regular leave can, however, be relaxed by the Competent Authority
in the exigencies of work. Regular leave includes Casual Leave/RH also.
12.2.5 Members of family can avail of the leave concession irrespective of the
period of leave of the employee. The return journey of the family should
be completed within six months from the date of commencement of the
outward journey. The concession shall be counted against the year during
which the outward journey commences.
12.2.6 The members of the family other than those who accompany the
employee should travel together as one group. When they travel in
different groups, reimbursement will be admissible only in respect of one
such group as the employee may choose.
12.2.7 For journeys commencing on leave preparatory to retirement, the
employee and his family shall be eligible for the leave travel concession
for outward journey provided that the concession is otherwise admissible.
The journey of the employee and his family should commence within the
period of leave and the return journey is completed before the date of
superannuation.
12.2.8 Where wife of an employee is also employed in the company, the leave
travel concession for the family will be admissible on the entitlement
applicable either to the husband or the wife and not both.
* Amended vide Office Order No.11.73.3/8007/2010 dated 04.01.2010 in respect of

introduction of perks and allowances for the executive employees.
135
Where the spouse of an employee is employed outside the company, the
concession will be admissible to the spouse on the condition that a similar
concession is not available in the organization in which he/she is
employed or where it is available, he/she gives an undertaking not to
avail thereof. A certificate to this effect should be furnished by the
employee at the time of preferring the claim.
CLARIFICATION:
(i) The concession is not admissible to an employee who proceeds on regular
leave and then resigns his post without returning to duty.
(ii) In case of an employee under suspension, the concession is admissible to
his family members only as the employee under suspension is not eligible
for leave during the period of suspension.
(iii) In the case of employees on deputation with the company or company
employees on deputation outside, the entitlement for LTC will be
governed by the terms and conditions of deputation.
12.3 HOME TOWN:
12.3.1 Hometown means the permanent hometown or village of the employees
as declared by him immediately on joining the company, and accepted by
12.3.2 The home town shall be a place where the employee is required to visit at
intervals for discharging various domestic and social obligations, or where
he owns immovable property, or his near relations reside permanently, or
where he has been staying for some years before joining the company.
12.3.3 If change of Home Town is permitted, the employee will be allowed the
benefit of Home Town LTC based on actuals subject to the ceiling limit of
his entitlement upto the Home Town as declared by the employee at the
time of joining the services of the company.
12.3.4 Home town once declared can be changed only once in the entire period
of service of the employee.
For change of home town the employee shall submit application in the
prescribed form along with the details of leave availed during last
5 years, his dependent details, employment status of his/her parent,
details of LTC/LLTC availed with block year and places visited and
construction of house, if any.
12.3.5 In case of employees declaring places outside India as home town, the
company’s assistance will be limited to the admissible fare upto and from
the railway station/airport/port of embarkation in India, by the shortest
route nearest to the home town.
12.3.6 Once in every 04 (four), the employees may also be allowed LLTC to go to
any place in India subject to the following conditions:-
(i) The reimbursement for such travel as per this rule will be permissible by
the shortest direct route from place of commencement of journey to the
ultimate destination and back.
(ii) The concession will be available in lieu and adjusted against the LTC for
journey to the home town for the block year including the concession, if
136
any, carried forward, to which the employee and eligible members of his
family may be entitled for journey to home town at the time the above
mentioned concession is availed of.
(iii) This concession shall be admissible only to those employees who have
completed at least three (3) years of service under the company.
NOTE:
“Any place in India” means any place within the territory of India whether
on the main land or overseas.
Clarification:
1) The term 'once in every four years' will be taken as a combination of
two consecutive LTC blocks such as 1972-73 and 1974-75 or 1976-77 and
1978-79. In other words, an eligible employee will be allowed LTC for
going anywhere in India once in four years in any such combination of
two blocks. The employees for this purpose will indicate their choice of
combination of LTC blocks. However, it may be noted that the option will
be allowed only once and no change in the combination of LTC blocks for
the above purpose will be permitted thereafter. In case of employees who
have already availed themselves of the benefit under Rule 12.3.5 for
going anywhere in India, the combination of blocks already availed will
continue.
The following illustrations will clarify the matter further:-
(a) If an employee clubs the LTC block years 1972-73 and 1974-75 or
utilizes, say the block 1972-73 for going anywhere in India, then the next
combination of LTC blocks in his case will be 1976-77 and 1978-79 and
so on.
(b) If, on the other hand, an employee clubs the LTC block years 1974-75
and 1976-77 and avails, say the block 1974-75 for going anywhere in
India the next combination of LTC block in his case will be 1978-79 and
1980-81 and so on.
(c) The employee will be allowed the benefit of LTC for going anywhere in
India under Rule 12.3.6 in either of the blocks of such combination of two
blocks. That is to say, in the combination of 1974-75 or 1976-77, he/she
may go anywhere in India either in 1974-75 or in 1976-77.
2) While availing LTC to visit any place in India an employee and/or
members of the family may visit the same place or different places of
their choice. The members of the family need not travel in the same
calendar year in which the employee travels. They may travel either
together or separately in different times. Where they travel in different
groups, at different times, reimbursement of expenditure may be allowed
in respect of each group provided the journey is performed during the
currency of the block in respect of which the first group performed its
journey and the return of each group is completed within six months of
the date of commencement of the outward journey by that group.
3) An employee can avail LTC twice in the same calendar year for different
blocks, if due.
137
4) The employees and their families may avail of the facility of journey by
standard circular route for visiting any place in India. In such cases
employees will be allowed reimbursement of actual fare paid to the
Railways for the entitled class under the standard circular route scheme of
the Railways.
5) When the concession to visit any place in India is proposed to be availed
by the employee/members of the family, the intended place or visit
should be declared in advance. The place of visit so declared can
however, be changed before commencement of outward journey with the
approval of the Competent Authority. Change of destination after
completion of journey will not be allowed.
12.4 ENTITLEMENT:
12.4.1 The reimbursement shall be by entitled class of travel as per Rule 10.4.3
of Traveling Allowance Rules or actual expenses, whichever is less,
between the home town and the headquarter, by the shortest route, on
through ticket basis. Executives having basic pay of ` 41,230/- in
E-3 grade and other executives in E-4 and above grade will be entitled to
travel by Air/1st AC by Rail. The employee may travel by a longer route,
but the reimbursement shall be restricted to the fare admissible by the
shortest route.
NOTE:
In respect of LTC, employees will be entitled to LTC upto a distance of 750
kms each way in lieu of hometown. For this purpose dependent parents
shall be included in the list of entitled dependents.
1. Employees shall be allowed to avail LTC (Home Town) for self and entitled
family member including parents to visit Home Town as per entitled class
travel as per rules. However, the reimbursement/ payment will be
admissible on actual limited to train fare in entitled class, calculated for
journey both ways from the Head Quarter to the Home Town (as declared
in Service Book) by the shortest route.*
2. Employees shall be allowed LLTC (in combination of two block years) for
going anywhere in India by entitled class of travel as per rules. However,
the reimbursement/payment of travel expenses will be on actual limited
to train fare in entitled class, calculated for journey both ways from the
Head Quarter to the declared destination by the shortest route.*
3. Employees entitled to travel by Air on LTC/LLTC (Hometown/ Anywhere in
India) may travel by Air. However, reimbursement of travel expenses in
such cases will be admitted on actual limited to train fare in entitled class,
calculated for journey both ways from the Head Quarter to the Home
town as declared in Service Book/declared destination by the shortest
route.*
* Amendment made vide Policy Circular no. 36/2007 dated 19.09.2007 duly approved by
CMD with immediate effect.
138
4. LTC/LLTC limited to 750/1700 kms respectively will be allowed on
certification basis upto 31.03.2008 and thereafter facility on certification
basis will cease to operate.*
5. Employees will be required to submit proof of journey for their claim of
LTC/LLTC on actual as stated in point no. 1, 2 & 3 above.*
12.4.2 The journey need not necessarily commence from or end at the
headquarters, but the concession will be limited to the amount admissible
or the actual fare, whichever is less.
12.4.3 When an employee or his family travel by road by own car/taxi, the
concession shall be equivalent to what would have been admissible had
the journey been performed by the entitled class.
NOTE:
(i) Travel by taxi will, however, be allowed from and to the headquarter/
home town to the nearest railway station/junction where from convenient
train connections can be availed of.
(ii) For travel on LTC to hometown by road by employees who are not their
own Controlling Officers, prior permission is necessary.
12.4.4 Reimbursement of actual expenses incurred by an employee while
availing LTC/LLTC, on AIR fare/train fare (any class)/Taxi or bus fare for
road journeys, for travel by any route, in reaching the home
town/declared destination and back to headquarters upto a limit of the
fare by the entitled class calculated for journey both ways from the
headquarters to the home town/declared destination by the shortest route
would be allowed.
In case of employees entitled to travel by Air/ACC by train, the total

actual expenses on airfare incurred both ways on any route while availing
the LTC/LLTC will be reimbursed upon the limit of the air fares admissible
both ways by shortest route for reaching the destination and for any
balance portion of the journey, the ceiling will be calculated as under: -
(a) For train journey by taking ACC fare,
(b) For road journey between places connected by train, by taking ACC fare,
and
(c) Journey between places not connected by train, by taking one road
mileage.
Further, in case of journey other than to home town, the reimbursement
of fare will be made on satisfactory proof of actual expenditure as under:
(1) In respect of train/plane journey ticket numbers along with statement of
fare for different sectors.
(2) For travel by road Taxi No./Car No./Name of the transport agency with
money receipt issued by the agency, certificate from the employee about
the expenditure incurred.
* Amendment made vide Policy Circular no. 36/2007 dated 19.09.2007 duly approved
CMD with immediate effect.
139
Whenever the journey is performed by own car by the employee; the
reimbursement will be made as under: -
(a) In case of employees entitled to perform the journey by own car, one
road mileage for both the employee and other members of the family
performing such journey by employee's own car.
(b) In case of employees not entitled to perform the journey by own car:-
(i) If the journey is between places connected by train, one fare by entitled
class for the employee and each member of the family.
(ii) If the journey is between places not connected by train, one road mileage
for the employee and one road mileage each for each member of the
family travelling by employee's own car subject to the maximum rate for
one road mileage admissible under rule 10.4.3.
Clarification:
1. Pooling up of families in one car for availing LTC/LLTC shall not be
allowed.
2. Reimbursement of Rail fare on notional basis will be allowed only for
Express/Mail trains and not by Rajdhani Express. Rail fare by Rajdhani
Express can be allowed only in case of actual journey.
12.4.5 The concession is admissible to the members of an employee's family with
reference to facts existing at the time of outward and inward journey
independently. A change therein may result in a change in entitlement as
illustrated below: -
Entitlement to Reimbursement in Respect of Outward Journey only.
(i) A dependent son/daughter getting employment or getting married after

going to home town or remaining there for prosecution of studies.
(ii) The members of the family having performed the journey to home town
have no intention of completing the return from home town.
Entitlement to Reimbursement in Respect of Return Journey only.
(i) A newly married husband/wife coming from the home town to
headquarter or a husband/wife, who has been living for a long time
(minimum one year) at home town and did not avail of the concession in
respect of the outward journey.
(ii) A dependent son/daughter returning with parents or coming alone from
home town where he/she has been prosecuting studies or living with
grand parents, etc.
(iii) A child who has completed 5 years of age only at the time of the return
journey.
(iv) A child legally adopted while staying in home town.
140
Clarification:
1. Where the journey is performed by the children of an employee from the
home town of the employee to his headquarters during vacation, LTC may
be allowed for both the outward and inward journey.
2. LTC may also be allowed to children studying in educational institutions at

a place other than employees headquarters or home town for travel from
the place of study, either to hometown or to the headquarters of the
employee and back, but the assistance to be given will be the amount
admissible for the actual distance travelled limited to the amount that
would have been admissible had the journey been performed between the
headquarters and the home town of the employee.
3. Dependent children studying at places other than headquarters will also
be eligible for 4 years LTC from the place of study to the place of
destination and back to the place of study or headquarters of the
employee. Reimbursement in such cases will be limited to the entitlement
of the employee from the headquarters to the declared destination and
back or actuals, whichever is less.
4. LTC benefit will be allowed to an employee on the basis of the number of
members of his family and dependent status at the time of actual journey
irrespective of the fact that he had a smaller family during the time of
actual block period, i.e., if an employee is travelling in the grace year and
if he gets married in the grace year itself, he will get the LTC benefit both
for himself and his wife.
5. LTC would also be available to the newly married wife accompanying an
employee availing LTC for going anywhere in India from Home Town and
from there to headquarters. However, the reimbursement in such cases
will be restricted to the fare that would have been available for travel
from headquarters to such destination and back to headquarters.
12.4.6 In respect of places not connected by rail, any employee may travel by air
when an alternative means of travel is not available or more expensive.
12.4.7 An employee entitled to travel by First Class may avail IInd Class Sleeper
accommodation or air conditioned Chair by deluxe trains. Employees
entitled to travel by IInd Class may avail of Sleeper accommodation.
12.4.8 Cancellation charges shall be reimbursed only if cancellation of journey is
due to official reasons.
12.4.9 For journey to Port Blair, Andaman and Nicobar Islands, the surface
journey to the nearest Port will be regulated as other journeys under
LTC/LLTC rules.
With regard to sea passage, employees entitled to travel by second class
by rail may be allowed reimbursement for travel by Bunk class or second
class by MV Harsh Vardhana (without diet charges), run by Shipping
Corporation of India. The employees entitled to travel by first class/ACC
by rail/Air may be allowed reimbursement for travel by first Class/"A"
State Room/Deluxe by either MV Andaman or MV Harsh Vardhana
(without diet charges), run by Shipping Corporation of India or by Air.
141
12.4.10 Employees are required to avail the concession rebate being allowed by
Indian Railway/Indian Airlines/Air India for PSU employees for travel on
LTC/LLTC etc.
12.5 ADVANCE:
12.5.1 An employee shall be entitled to draw an advance of 100% of the

estimated fare by the entitled class. Advance for both the journeys will be
admissible only if the return Journey is to be completed within 90 days.
Employees desiring to avail LTC/LLTC may be paid advance on
application, 60 days ahead of the proposed date of journey by Rail/Air.
12.5.2 If after drawing the advance, the journey is not performed, the advance
shall be refunded forthwith.
12.6 COMBINATION OF LTC WITH TRANSFER OR TOUR:
12.6.1 When an employee on leave who has availed LTC is transferred, he shall
be entitled to LTC for travel from old headquarter to the place of journey
and from there to the new headquarter.
12.6.2 When an employee proceeds with prior permission to another place from
a tour and returns to headquarter direct from that place, he shall be
entitled to TA on tour from headquarters to tour station and LTC from tour
station to such place and back to headquarter.
Clarification:
In case an employee availing LTC is recalled to duty in the interest of
company’s work, while the outward journey will be covered by these rules
for self, he will be entitled to Travel Allowance as per rules in respect of
the inward journey to headquarter.
12.7 LEAVE TRAVEL CONCESSION CLAIMS:
12.7.1 The claims for Hometown by LTC at actuals shall be submitted in the final
TA bill form with ticket numbers, taxi/car/bus numbers etc. within one
month after the completion of the return journey.
12.7.2 The claims for 4 years LTC shall be submitted in the final TA bill form with
ticket numbers, taxi/car/bus numbers, etc. within one month after the
completion of the return journey.
NOTE:*
Employees may avail LTC/LLTC Encashment as an alternative option to
LTC/LLTC travel on actual basis with documentary proof, subject to the
following conditions:
i) Encashment equivalent to rail fare as per entitlement by mail train for 750
KMs each way in lieu of LTC hometown and 1700 KMs each way in lieu of
LLTC to anywhere in India.
* Amendment made vide Policy Circular no. 47/2008 dated 01.10.2008 duly approved by
Board of Directors in their 182nd meeting held on 04.09.2008, effective from 04.09.2008.
142
ii) Encashment option would be admissible for self, spouse and maximum of
two dependent children only.
iii) Employees would be required to avail of leave under the option as per the
provisions specified in the LTC Rules.
iv) Encashment option would be applicable for family as a unit.
CLARIFICATION:
1. The employees and their family may travel in a group by luxury
bus/chartered bus but reimbursement in such cases will be:
(a) Actual bus charges; or
(b) The amount reimbursable had the journey to the declared place of visit
been performed by the entitled class by rail by the shortest direct route
whichever is less.
2. When the entire journey on LTC/LLTC is performed by road by chartered
bus, the reimbursement shall be limited to the entitlement by Train for
the total journey. Road mileage for part journey in such cases is not
admissible.
3. In case of employees entitled to travel by ACC/Air if the journey is
undertaken partly by Air/Rail (ACC) and partly by road, the ceiling
entitlement will be limited to the Airfare instead of ACC from headquarters
to the destination and back through shortest route. For example, if an
employee travels partly by ACC to a destination and returns to
headquarters by Air and partly by road, reimbursement of actual
expenditure incurred by him will be allowed even if the journey is
undertaken by a longer route provided the total claim does not exceed the
total air fare payable to him for to and fro journey from headquarters to
the destination through shortest route and without broken journey as per
the rules of the Indian Airlines.
4. Airfare charged by 1st AC in respect of children below 5 years is
reimbursable to employees entitled to travel by air.
5. Reservation charges and additional charges levied by the Railways for
travel in superfast train will be reimbursable.
6. Fare for journey from residence/place of stay to Railway Station/Airport
and vice-versa will be reimbursable.
7. No reimbursement is admissible if the journey is performed by
Scooter/Motor Cycle.
* Introduced vide Wage of Agreement signed on 22.09.2010 in respect of non-executive

employees of MECON.
143
12.8 LEAVE TRAVEL ASSISTANCE (For non-executive regular
employees):*
The existing LLTC system (4 years LTC) will be replaced by Leave Travel
Assistance which is as follows:
Rates under LTA from the new block year from 01.01.2010 onwards*
Grades Rates w.e.f. 01.01.2010

S-1 to S-5 ` 30,000/-
S-6 to S-8 ` 36,000/-
S-9 to S-11 ` 43,000/-
This amount will be given once in a block of 4 (four) years.

NOTE:
The existing scheme of LTC actual to Home town or encashment in lieu of
750 kms. shall continue for the non-executive employees of MECON.
12.9 LTC/LLTC forms a part of perks and allowances for executive employees
under “Cafeteria Approach” w.e.f. 01.01.2010 i.e. block year 2010-11.**
* Introduced vide Wage of Agreement signed on 22.09.2010 in respect of non-executive

employees of MECON.
** New Clause added vide Wage revision of executives w.e.f. 01.01.2007.
144
CHAPTER - XIII
VOLUNTARY RETIREMENT SCHEME
13.1 OBJECTIVE:
To provide certain benefits to:
i) The employees of the company who may opt to retire voluntarily for
personal reasons after 25 years of service in the company.
ii) The employees of the company who may be considered for pre-mature
retirement by the Management.
13.2 SCOPE:
The scheme shall apply to all regular/permanent employees of the
company.
13.3 ELIGIBILITY:
An employee who has completed 10 years of service in the company and
who is at least 50 years of age or an employee who has completed 25
years of service in the company (with no age limit) will be eligible.
13.4 SANCTIONING AUTHORITY:
Chairman-cum-Managing Director of the company is the Competent
Authority for accepting offers of voluntary retirement.
13.5 BENEFITS UNDER THE SCHEME:
An employee whose offer for voluntary retirement is accepted will be

entitled to the following, benefits:
(a) Leave salary for unavailed earned leave and HPL, the quantum of leave
salary will not exceed the maximum limit to which earned leave can be
and HPL encashed under the Leave Encashment Rules applicable to the
employee.
(b) Full provident fund contribution of the employer with accretions there to
in the account of the employee subject to the provisions of the Provident
Fund rules applicable to him.
(c) Gratuity for each completed year of service or parts thereof as admissible
under the Gratuity Rules.
(d) Transfer benefits for self and family for proceeding to home town or to the
place where he intends to settle in India as admissible under the TA
Rules.
13.6 PROCEDURE:
An eligible employee may submit an application for voluntary retirement
under the Scheme to the Competent Authority through proper channel.
145
13.7 TENURE:
The scheme shall come into force with effect from 17th June 1981 and
shall supersede any scheme of this nature in force immediately before the
commencement of this scheme. The company also reserves to itself the
right to modify/alter/amend the scheme in any manner or to withdraw the
scheme without any notice and without assigning reasons therefor.
13.8 GENERAL:
Notwithstanding any of the provisions of the scheme, the company
reserves to itself the absolute right to reject any application for voluntary
retirement thereunder without assigning any reasons therefor.
146
CHAPTER – XIV
TRANSFER AND BENEFITS
14.1 TRANSFER:
14.1.1 Employees are liable to serve in any part of India or abroad where the
company has or will have Branches/Departments/Establishments/
Interests/Work. Employees may be transferred to company’s different
units/sites/branches either in existence or would come into existence on
Temporary Transfer or Permanent Transfer basis depending upon
requirement and shall be governed by respective transfer rules of the
company as may be framed/amended from time to time.
14.1.2 If the services of an employee are considered to be required for more
than one year at a place other than his headquarters, he may be
transferred to that place on permanent transfer basis. An employee on
permanent transfer shall be entitled to transfer benefits as laid down
under Clause No. 14.3, 14.4 & 14.5 of the rules of the company.
14.1.3 If the employee has any difficulty in shifting his family from old
headquarters, then on the request of the employee, he/she may be
allowed the facility of single status in which case the facilities shall be
admissible, as per provisions laid down in the Clause 14.5(b) to
this chapter under heading “Facilities on Transfer”.
14.2 TEMPORARY TRANSFER:
14.2.1 If the services of an employee are required at a place other than his
Headquarters, he will be deputed to outstation either on tour or on
temporary transfer depending on the duration of the requirement of his
services at the new location.
If the requirement of services of an employee at outstation is not
expected to exceed 90 (Ninety) days, he will be sent on tour.
14.2.2 In case the requirement for outstation duty is likely to exceed 90 days but
for about 24 months, the employee shall be transferred to the new
location on temporary transfer. During the temporary transfer the
employee will be entitled to the following benefits:
Facilities/Benefits under Temporary Transfer:
(a) Free furnished accommodation for self as available at the location. Where
the company is not able to provide accommodation, the employee may be
allowed HRA only as per entitlement as applicable to the employee posted
at that location.
(b) Outstation allowance @ 50% of the daily allowance rate applicable on
tour.
(c) E.I.C.S. and canteen subsidy as per rules and as applicable to the
employees posted at the location.
(d) In case of Non-Executive: LTE as per entitlement on certification, if the

vehicle is transported at the new place of posting.
(e) Transportation cost of personal effects by train upto a maximum of 250
Kgs.
147
(f) CCA (Non-Executive) & HRA as admissible so long as the employee
retains the family at the Headquarters.
(g) Joining time of two days excluding Sunday/weekly off only for preparation
and actual journey period by shortest route.
(h) Full daily allowance for the journey period for joining the temporary
headquarters and for the journey on reversion.
(i) Outstation allowance will not be admissible for the days the employee is
away from the temporary headquarters on leave, tour or for any other
reasons with the permission of the Competent Authority.
(j) Employees who are on authorized regular leave but staying at the
temporary headquarter, will be entitled to full outstation allowance.
(k) In case of tours from temporary headquarters, employees will be paid
daily allowance under TA Rules instead of outstation allowance, for the
period.
(l) Employees who are on temporary transfer and who are on official tour to
their permanent headquarters shall not be entitled to daily allowance
during their stay at permanent headquarters. They will be entitled to daily
allowance only for the journey period of the tour. They will not be eligible
for outstation allowance either.
14.3 TRANSFER EXPENSES ON PERMANENT TRANSFER
If the services of an employee at the place of transfer are required for a

period in excess of 12 months, the employee will be transferred to that
place on permanent transfer basis.
An employee on permanent transfer is entitled to benefits &
reimbursement of expenses as provided under the following Clauses
14.3.1 to 14.3.5 and Clause 14.4 and 14.5.
14.3.1 Travel Expenses:
An employee on transfer shall be entitled to reimbursement as follows:

(a) Travel for self and family by the entitled class/mode as on official tour.
(b) Reimbursement of actual fare for journeys from residence/place of stay of
Railway Station/Airport and vice-versa.
c) An employee travelling in his own car on transfer will be paid as follows:
i) Actuals or entitled road mileage for self and family subject to a maximum
of three road mileages, whichever is less where the journey between two
places are not connected by rail/air.
ii) Actuals or entitlements by rail/air whichever is less where the journey
between two places are connected by rail/air.
(d) Reimbursement of two extra tickets by the entitled mode and class of
travel for onward and return journey between the old and new
headquarters or actuals, whichever is less if additional travel is actually
148
undertaken by the employee (and not the family) with prior approval, for
shifting the family and/or personal effects.
14.3.2 Transportation of Personal Effects:
On transfer, an employee will be entitled to the actual expenditure

incurred on transportation of his personal effects, on production of money
receipts, subject to the following limits:
(i) Two containers by the Railway Container Service; or

(ii) One full wagon (8 wheeler) by goods/passenger train; or
(iii) One full Truck. The employee will be permitted to go to any Transport
Contractor of his choice and the reimbursement, in such cases, will be
allowed to the extent of actual cost of transportation limited to the cost of
Railway Fare by Passenger Train, as indicated at (ii) above.
(iv) For places not connected by road/rail special approval to be obtained from
CMD.
14.3.3. Transportation of one entitled two or four wheeler Vechile:
(i) By train - Actual cost of packing and freight.
(ii)By truck - Limited to passenger train freight charge.
(iii)By own propulsion- Limited to passenger train freight charge
(iv)For places not connected by road/rail special approval to be

obtained from CMD.
Provision: Reimbursement on documentary proof of transportation

(applicable for items (i) & (ii)
14.3.4 Packing Charges: **
Packing charges will be reimbursed on certification as per the following

rates:
Employees upto S-9 and SL-4 Grades ` 7,000/-
Executives in E-O to E-6 Grades ` 9,000/-
Executives in E-7 Grades and above ` 11,000/-
* Amended vide Policy Circular no. 33/2007 dated 19.09.2007 effective from 03.09.2007,
approved by CMD.
** Amended vide Policy Circular no. 13/2006 dated 30.11.2006 effective from
01.12.2006.
149
14.3.5 Transfer Grant:
Transfer grant will be given to cover the expenses for setting up of

establishment and causing disturbance to the employee. The amount
payable will be one month's salary (basic pay plus DA). The transfer
grant will be released in full when the employee moves with his family.
However, if the employee takes permission to retain his family at old
headquarters then he will be given transfer grant in two installments as
under:
(i) 1/3rd of transfer grant initially when he shifts alone.
(ii) The balance 2/3rd of transfer grant when he shifts his family to new
headquarter.
(iii) Transfer grant will be released to employees at the new headquarters

only on their joining at the new place of posting.
Provision: Against submission of transfer TA bills.
14.4 ADVANCE FOR TRAVELLING ON TRANSFER (Including mutual

transfer/transfer on own request):
(a) An employee proceeding on transfer may be granted advance to meet
travelling and other expenses. 100% advance towards TA may be
granted.
(b) Employees on transfer shall be given advance for purchase of tickets not
more than two months before the date of commencement of the journey.
(c) Employees shall be required to submit the travelling allowance bill on
completion of journey. If the bill is not submitted within one month from
the date of completion of journey, the advance sanctioned/ drawn shall be
recovered from his salary.
(d) Salary advance equal to 02 (two) months basic pay and DA. The amount is
interest free and recoverable in 12 monthly installments.
(e) An employee shall not be entitled to any advance unless he submits bills in
respect of previous advance.
Provision: Recovery to start from month, following advance payment.
14.4.1 Linkage of TA Rules etc.

In case, retention of facilities including accommodation has been allowed in
terms of Rules of Retention of Facilities on transfer, then TA for family,
balance transfer grant and transportation of personal effects shall be
reimbursed when he moves his family to New Headquarter.
150
14.5 Facilities on Transfer:
A. If the employee has any difficulty in shifting his family from old
headquarters, then on the request of the employee he/she may be
allowed the facility of single status in which case the following facilities
shall be admissible:
B. Facilities Allowed on Single Status:
(i) Single Status would be allowed only when an employee is transferred to or
from any of these locations - Delhi/Kolkata/Mumbai/Bangalore/
Ranchi/Bhilai/Bokaro/Rourkela/Bhubaneswar/Durgapur/Chennai/Vizag.
(ii) This would be applicable to all employees whose HQ before permanent
transfer was at the above mentioned places.
(iii) Retention of accommodation at old headquarters on lease/HRA/
payment of standard rent as the case may be i.e. no change in the type of
accommodation (Lease/HRA/Company Quarter) is permitted at old
headquarter after issue of transfer order. No facility of free Guest House
accommodation or reduced HRA at new headquarters would be
admissible.
(iv) Medical facility for self at new headquarters and for dependents at old
headquarters.
(v) Educational facility for eligible children at old headquarters.
(vi) Residential telephone facility at new headquarters only, if eligible.
Residential telephone facility at old headquarters will not be allowed for
reimbursement of calls/rentals.
(vii) Reimbursement of local travelling expenses, if vehicle is transported to
new headquarters (applicable for non-executive employees).
(viii) Refundable salary advance equal to two month's salary (Basic+ DA)
recoverable in 12 equal monthly installments.
(ix) Employees who are transferred on single status to locations where
company accommodation or accommodation provided by client, is
available, may be allotted such accommodation on payment of standard
rent. In case client provides free accommodation, the same shall be made
available to the employee.
C. Additional Facilities in Specific Cases:

(I) In case of the following categories of employees, additional facilities of
free accommodations with hard furnishing or in lieu thereof 35% of HRA
admissible to him/her at new Headquarters shall be paid:
(a) In case the children of the transferred employee are studying in classes
below IX, single status transfer would be allowed only till the end of
current academic session.
(b) For children of the transferred employee studying in Class IX or Class XI,
single status facility on transfer would be allowed till completion of class
Xth and XIIth course respectively.
151
(II) In case of (I) above, if Guest House accommodation is provided at new
Headquarters, HRA related compensation would not be admissible. Room
rent @Rs.100/- per day shall be charged for the period of stay in Guest
House.
For the purpose of deciding children's education criterion, status as on the
date of transfer order shall be considered.
The total period of Single Status will be for a maximum period of two
years from the date of joining at new place of posting. However, the
period of Single Status may be extended beyond two years from the
date of joining at new place of posting for those employees only who are
posted at Project Site locations on Permanent Transfer.
This facility will not be applicable for those employees who are posted on
Permanent Transfer at Ranchi or other Engg. Offices or in Metros. This
facility will also not be applicable for the employees who are transferred
from Ranchi to other Engg. Offices and Metros and vice-versa. Existing
provisions of single status facility for a period of maximum two years shall
continue in these cases.
14.6. MISCELLANEOUS:
(a) Octroi duty, entry taxes, terminal taxes and insurance charges for
transportation of personal effects/car will be paid as per actuals on
production of receipt.
(b) Management trainees, who are required to move from one place to
another during the course of the training will be eligible only for single
traveling fare plus transport of luggage upto 250 Kgs and will not be
entitled to other transfer benefits. Also Employees recruited on
consolidated pay on contract basis for a limited period will be eligible only
for single travelling fare for self and each entitled member of the family
plus transport of luggage upto 1000 Kgs. They will not be entitled for
transfer grant and other transfer benefits. Management Trainees, if
posted to another location after a period of six (6) months or more would
be entitled for transfer benefits only once when they shift their
establishment.
Departmental candidates who have been selected as Management

trainees and move from one place to another will be entitled to transfer
benefits only once when they shift their establishment
(c) If both husband and wife are employees of the company, working at the
same headquarters and are transferred within six months from one place
to another, only one of them will be entitled to transfer benefits as per
rules.
(d) When an employee is transferred from one station to another, he will be
entitled to joining time for six clear working days for preparation (in
addition to Sundays/Holidays) and one day for travel per 400 Km distance
or part thereof in excess of 200 Km.
(e) In the case of air journey, joining time will be limited to the day of travel
only.
152
(f) If an employee reports at the new station without availing the complete
joining time, the difference between the entitled joining time/journey time
and the actual time availed shall be credited to a special leave account
which can be availed of by the employee, for preparation within a year of
reporting at the new station.
(g) Where transfer is within the same station and involves change of
residence, joining time of one working day will be allowed and no journey
time will be admissible.
(h) For transfer on own request, Clause 14.3.1(d), 14.3.5 and 14.4 (d) will
not be applicable.
CMD may, from time to time:

(i) Make, modify, cancel and/or amend any of the rules under this Chapter,
regulating the transfer and benefits as provided in Clauses 14.1 to 14.5
and provisions appended in the Annexure to this Chapter.
(ii) Make relaxation in individual cases; and
(iii) Notify further detailed rules.
** Amended vide Policy Circular no. 33/2007 dated 19.09.2007 effective from 03.09.2007,
approved by CMD.
153
CHAPTER – XV
LEAVE ENCASHMENT SCHEME
15.1 OBJECTIVE:
To encourage employees to avail leave in a planned and systematic
manner with necessary funds to meet their social obligations and other
expenditure during leave period and also to reduce long absenteeism with
consequent load on the staff requirements.
15.2 SCOPE:
The rules for encashment of leave shall cover all regular employees of the
company, excluding those on deputation from Government/other
organizations and company employees on deputation to other
organizations.
15.3 POLICY:
Encashment of leave will enable employees to meet part of the expenses
of travel and holiday out of their accumulated leave.
The authorities who are competent to sanction leave shall be the
“Sanctioning Authority” for approving encashment of leave under these
rules.
15.5 ENCASHMENT BENEFITS:

15.5.1 The encashment of leave shall be regulated on the basis of last pay drawn
which includes basic pay, dearness allowance, non-practising allowance
(for doctors only), and personal pay, if any, but shall not include incentive
bonus, acting/officiating allowance and other allowances.
15.5.2 The encashment benefit shall not be reckoned as wage/salary for
deduction of PF or working out Overtime, Gratuity, Bonus under the Bonus
Act, incentive bonus, etc. However, the encashment benefit shall not be
deducted/reckoned as wage/salary for the purpose of deduction of
Provident Fund.*
15.5.3 The encashment benefit will be regulated on the basis of last pay drawn
which should be the monthly rate of pay of the employee immediately
before the date of his application for encashment of leave. A month will
generally be mean a calendar month of 30 days. An illustration for
calculation of encashment benefit is given below:
Illustration:
Last pay drawn x no. of days for which encashment is allowed/30.
15.5.4 The leave to be encashed under these rules would be earned leave only
and not any other kind of leave.
* Amended vide Policy Circular no. 42/2008 dated 21.05.2008 approved by Chairman-cum-
Managing Director w.e.f. 12.03.2008.
154
15.6 ELIGIBILITY:
15.6.1 While in Service:
Earned Leave standing to the credit of an employee may be encashed at
his option only once in a calendar year provided that the quantum of leave
to be encashed in each case is not more than 50 % of the earned leave at
credit or 30 days earned leave, whichever is less.
15.6.2 On Dismissal or Removal or Resignation:*
The encashment of leave will not be admissible on dismissal or removal or

resignation from service of an employee. In case of termination simplicitor
an employee will be eligible for encashment of leave subject to a
maximum of 300 days.*
15.6.3 On Retrenchment:*
The employees shall be paid leave salary in lieu of leave due to them
subject to a maximum of 300 days.*
15.6.4 On Retirement/Voluntary Retirement:*
If any leave due to an employee is not utilised he/she shall be allowed to
encash the unavailed portion of the Earned Leave including Half Pay
Leave, subject to a maximum of 300 days.
The cash equivalent payable for Half Pay Leave would be equal to leave
salary as admissible for half pay plus D.A. To make up for the shortfall in
Earned Leave no commutation of Half Pay Leave shall be allowed.
15.6.5 On Death:*
Leave salary in respect of Earned Leave including Half Pay Leave standing
to the credit of the deceased employee subject to a maximum of 300 days
ahall be paid to legal heir (s) of the employees, in the same manner as on
retirement.
The cash equivalent payable for Half Pay Leave would be equal to leave
salary as admissible for Half Pay plus D.A. To makeup for the shortfall in
Earned Leave no commutation of Half Pay Leave shall be allowed.
15.7 PROCEDURE:
For Leave encashment under rule 15.6.1 while in service, an employee
shall be required to apply in writing to the Sanctioning Authority. In all
other cases it shall be settled by appropriate authority.
15.8 The Chairman-cum-Managing Director reserves the right to modify, cancel
or amend any of the provisions of the Leave Encashment Scheme without
prior notice.
* Amended vide Policy Circular no. 46/2008 dated 30.09.2008 approved by Board of
Directors w.e.f. 01.09.2008.
155
CHAPTER – XVI
EDUCATIONAL FACILITIES
16.1 OBJECTIVE:
To define and lay down company’s policy and rules on educational
facilities/reimbursement of educational expenses incurred by employees
in respect of their children.
16.2 POLICY:
To provide, as a measure of welfare, educational facilities and give
assistance to the employees of the company for education of their
children.
16.3 SCOPE:
These rules shall cover all employees of the company other than those on
consolidated pay/part-time or casual employment in the company.
16.4 ELIGIBILITY:
An employee who is appointed in the regular grade of the company other
than those on contract basis for a period of less than one year shall be
eligible for educational facilities/reimbursement of school fees in respect
of his/her wards at the rates specified by the company.
16.5 ENTITLEMENT:
16.5.1 Free educational facilities will be provided to employee’s children upto +2
or equivalent standard in Jawahar Vidya Mandir, Ranchi and in schools run
by steel plants/clients where the company has its offices and school
facilities are available.
16.5.2 In respect of employees children reading in non-company schools
recognized by the Government/company, reimbursement of school fees
upto +2 or equivalent standard will be allowed at the rates specified by
the company from time to time.
16.5.3 The rate of reimbursement of school fees for different classes as operative
from academic session 2009-10 is as follows :*
(a) Prep to Standard V : ` 690/- per month

(b) Standard VI to VIII : ` 730/- per month
(c) Standard IX to X : ` 760/- per month
(d) Standard XI to XII : ` 800/- per month (Arts & Commerce)
` 950/- per month (Science).
In addition, reimbursement of Annual School fees (once in a year) shall

also be allowed to the regular employees in respect of their children
studying in the non-company schools recognized by the
Government/company at the rates given below on production of payment
receipt in original from the academic session 2005-2006.
* Amendment made vide Policy Circular no. 60/2009 dated 01.04.2009 with effect from
academic session 2009-10, approved by CMD.
156
Class Prep to Class V ` 3,200/- per annum.
Class VI to Class X ` 3,700/- per annum.
Class XI to Class XII ` 4,200/- per annum.
16.5.4 Non-Executive employees whose children are studying in classes upto and
including standard XII in Jawahar Vidya Mandir, Ranchi or in non-
company schools at all locations will be reimbursed school uniform
@ ` 1500/- per year per child, provided the schools in which the
children are reading are recognized by the respective State/Central
Government/company.*
16.5.5 Educational facilities will be allowed to the wards of executives upto Class
XII in JVM, Ranchi and in client’s (SAIL) schools in the event of their
separation on account of Retirement/VRS/Death during the period of
study like serving employees. However, reimbursement of school fees etc.
in respect of such wards shall not be allowed.**
CLARIFICATIONS:
1. The term "School Fees/Tuition Fees" includes all fees payable except
"Capitation" fee.
2. Where both husband and wife are employees of the company, any one of
them may claim the benefits admissible as per rules.
3. Reimbursement will be allowed on monthly/quarterly/half yearly/ yearly
basis, as claimed by the employee.
4. For class X, certain schools have January-December session and charge
tuition fee upto February-March of the following year i.e. for 14 to 15
months instead of 12 months. Similarly, in certain cases due to change in
academic session in the school, the child is detained for 6 months more
in the same class, involving payment of fee for extra 6 months for the
same class i.e. for 18 months instead of 12 months. Since such payments
of school fees/tuition fees are required to be made compulsorily as per
the regulation of the school, tuition fees/ school fees paid for the actual
number of months in excess of 12 months for one class will be
reimbursed, on submission of fee receipt, at the prescribed rates or on
actual whichever is less.
** Addition made vide Policy Circular no. 31/2007 dated 19.09.2007 with effect from
academic session 2007-08.
157
CHAPTER – XVII
FORWARDING OF APPLICATIONS OF
EMPLOYEES FOR OUTSIDE EMPLOYMENT
The following guidelines will be followed while considering applications
from employees for outside employment:
17.1 Applications for jobs outside may be forwarded only against
advertisement by Pubic Sector Undertakings, Govt./Semi Government
departments. No application will be forwarded to Private Sector
Organizations.
17.2 The applicant should enclose a copy of the advertisement along with his
application.
17.3 Applications fulfilling the requirements of the advertisement will only be
forwarded.
17.4 One application each year during the 1st & 2nd year of appointment/
promotion will be forwarded. In the third year, maximum two applications
will be forwarded and after three years any number of applications can be
forwarded.
CLARIFICATION:*
(a) In case of Management Trainee, application shall NOT be forwarded

during the training period i.e. first year of recruitment.
(b) During probation period, application shall NOT be forwarded for any
category of employee.
17.5 In the case of non-executive employees, one application per calendar
year will be forwarded for the first three years in the grade and thereafter
any number of applications can be forwarded.
17.6 Applications of employees under bond for training abroad in specialized
areas shall not be forwarded.
17.7 Applications of employees under bond for training in India may be
forwarded to other Public Sector Undertakings, Government/Semi-
Government organizations at the discretion of the Competent Authority,
keeping in view the interests of the organization. In the event of
selection, release from the company would depend upon the fulfillment of
the terms and conditions of the bond.
17.8 Application from employees who are under bond shall not be forwarded
for foreign assignment.
17.9 “No Objection Certificate” for consideration of the post applied for,
shall not be issued to employees whose application has not been
forwarded by the company.
* Clarifications made vide note no. 11.73.1.Estbl. Manual dated 22.05.2007 duly approved
by CMD.
158
17.10 Employees trained by M/s. Wean United Inc, USA shall not, while
submitting their applications for outside employment/foreign assignments,
opt for specialities like design, manufacture and selling of Rolling Mills
Plant & Equipment in terms of the agreement executed by them with the
company.
17.11 Applications for outside employment from those employees who have
availed the facility of house building/car advance from the company shall
be forwarded only if they give an undertaking to the effect that in the
event of their selection, they will refund to the company the entire
amount of advance alongwith interest before their release.
In case of employees whose applications have been forwarded for foreign
assignment and who have availed the facility of house building advance
from the company will be, released on foreign assignment if selected only
when they mortgage the house constructed out of house building advance
in favour of the company as required under the House Building Advance
Rules and also on furnishing adequate sureties to ensure regular
repayment of the monthly instalments of the advance and interest to the
company during their absence abroad. This will equally be applicable for
those who have drawn car advance from the company.
159
CHAPTER – XVIII
INCENTIVE SCHEME FOR PROMOTING
SMALL FAMILY NORMS.
18.1 OBJECTIVE:
To promote small family norms amongst the employees and to provide an
attractive one time each incentive to employees or their spouse
undergoing Family Planning Operations.
18.2 SCOPE:
The Scheme shall cover all regular/permanent employees of the company.
18.3 ELIGIBILITY:
An employee, who is appointed in the regular grade of the company other
than those on contract basis for a period of less than one year shall be
eligible for the incentive.
18.3.1 Entitlement:
i) An incentive of ` 2,000/- (Rupees two thousand only) for undergoing
Tubectomy/Vasectomy operations by employees or their spouses having
one, two or three living children.
ii) An incentive of ` 200/- (Rupees two hundred only) for undergoing
Tubectomy/Vasectomy operations after having more than three children.
iii) An incentive of ` 50/- (Rupees fifty only) for IUCD insertions.
iv) For admissibility of incentive against serial no. (i) to (iii) above, the
employees must be within the reproductive age group. In the case of a
male employee, this would mean that he should not be over 50 years and
his wife should be between 20 to 45 years of age. In the case of a female
employee, she must not be above 45 years and her husband must not be
over 50 years of age.
v) The sterilization operation must be conducted and the sterilization
certificate must be issued by an Authorized Competent Authority of the
hospital or under the auspices of the Central Government Health Scheme.
Where this is not possible, the sterilization certificate issued by a State
Government Hospital or an Institution recognized by the Central
Government for the purpose will be authentic. For MECON employees at
Ranchi, the certificate issued by Chief Medical Officer, Ispat Hospital or
any other Doctor authorized by him will be accepted. For employees
posted in Site Offices, located in Steel Plants, the certificates issued by
CMO of respective Steel Plant Hospitals or by any other Doctor authorized
by him will be treated as authentic for the above purpose.
vi) The employee or his/her spouse who has availed of the Cash/increment
benefits under the earlier Schemes for Family Planning operation in the
past will not be eligible for the incentive under this Scheme.
vii) Special Casual Leave granted to employees undergoing sterilization
operations:
160
(a) 14 day Special Casual Leave to female employees for undergoing
Tubectomy operations. Male employees, whose wives undergo Tubectomy
operations, would be granted 7 days Special Casual Leave, if
recommended by Competent Medical Authorities.
(b) 2 day Special Casual Leave to male employees for undergoing Vasectomy
operations. The period can be extended up to 6 days if the Competent
Medical Authority recommends so.
(c) The Special Casual Leave as above would be exclusive of the intervening
Sunday/Holidays.
(d) One day’s Special Casual Leave to female employees for IUCD insertions.
18.4 TENURE:
These rules are effective from 1st July 1982 and are in supercession of the
earlier Schemes for grant of cash award/increment circulated vide Office
Order No. 11.73.1.8102 dated 30th March, 1981. However, employees,
who have already been extended the special increment benefit under the
earlier scheme shall continue to enjoy the benefit of special increment
already granted to them.
161
CHAPTER – XIX
SCHOLARSHIPS SCHEME TO THE CHILDREN
OF EMPLOYEES
19.1 OBJECTIVE:
To provide encouragement to and facilitate higher education of
meritorious children of employees.
19.2. SCOPE:
Only legitimate children and step-children of the employees who are
dependent on the employees are eligible for the scholarship. The scheme
is not available for the children of deputationists.
19.3 TYPES OF SCHOLARSHIP:
(a) Scholarship for ` 800/-* each per month will be awarded to students who
join Professional/Degree courses in Engineering/ Architecture, Medical,
Veterinary and Agricultural Science.
(b) Scholarship of ` 500/-* each per month will be awarded to students who
join Diploma courses in the areas mentioned in (a) above and also non-
professional degree/diploma courses in general discipline.
(c) Scholarship of ` 400/-* each per month will be awarded to students who
join for +2 classes.
19.4** NUMBER OF SCHOLARSHIPS:
Total number of scholarships - 40
The distribution of scholarships amongst the children of non-
executive/executive employees will be as under:
(a) For children of SC/ST categories - 6
(Both Executive & Non-Executive)
(b) The balance number of 34 scholarships will be distributed between the
children of the executive and non-executive employees in the ratio of
respective strength of manpower as on 30th June every year.
(c) In case suitable candidates are not available within a particular group as
mentioned in (b) above for the merit scholarships; the merit scholarships
will be given to the suitable candidates of the other group.
19.5 ELIGIBILITY:
19.5.1 Students who are prosecuting higher/professional studies in the following
courses in any recognized college/university/technical institute, higher
secondary school, are eligible for the award of scholarship.
(a) Any degree or equivalent course in engineering (including mining/
architecture).
* Amended vide Policy Circular No. 56/2008 dated 31.12.2008 effective from academic
session 2009-2010, approved by Chairman-cum-Managing Director.
** Amended vide decision approved by Board of Directors vide item no. 195/3338 in their
195th meeting held on 13.09.2011.
162
(b) Degree or diploma course in agricultural/veterinary sciences.
(c) Degree or diploma course in medical science including dentistry.
(d) Degree course in pure science/social science, commerce.

(e) Degree or diploma courses in business/personnel administration.
(f) Degree courses in humanities like languages, literature, economics,
philosophy, history, etc.
(g) Higher secondary course (i.e., 10+2 stage in general or vocational study).
19.6 CONDITIONS AND REGULATIONS:
19.6.1 Only those students prosecuting higher/professional studies in recognized
institutions will be granted scholarships.
19.6.2 Applicants for the scholarship should have passed the Indian School
Certificate/10th or 10+2 stage/High School Certificate/Madhyamik/ Higher
Secondary School/Intermediate/Diploma/Degree Examination as the case
may be in the first division or with an aggregate of 60% marks, whichever
is higher. In case of a ward of an employee belonging to SC/ST
community having 45% marks in aggregate, will qualify for consideration
for grant of scholarship.
19.6.3 Scholarship will be awarded from the date of admission to the institution
to the end of academic year and for each subsequent academic year until
the student passes the course subject to the conditions enumerated.
19.6.4 Cessation from service of the company by an employee on account of
retirement on superannuation including VRS and also death (as also death
after retirement) or disability caused by accident while on duty or
otherwise will not disqualify the employee’s child who has been awarded
scholarship by the Management from continuing to receive the scholarship
for the duration of the course, provided recipient of the scholarship makes
satisfactory progress in the studies.
19.6.5 The scholarship will be discontinued in case the employee whose child has
been granted scholarship leaves the service of the company on
resignation, dismissal or termination of services for any reason
whatsoever except as mentioned in 6.4.
19.6.6 No recipient of scholarship under this scheme will be allowed
simultaneously to hold scholarship under any other scholarship scheme of
the Government/any other organization.
19.6.7 Applicants for grant of scholarship will be invited by the Management in

the month of June/July every year.
19.6.8 The amount of scholarship will be remitted by the management to the
respective student through the Head of the institution. The head of the
institution will be required to send a report on the performance of the
scholarship holder. The continuation of scholarship for a particular course
will depend upon the good conduct and performance of the student.
163
CHAPTER – XX
INCENTIVE SCHEME FOR NATIONAL AND
ALL INDIA AWARD WINNERS
20.1 OBJECTIVE:
To give recognition to employees for their unique accomplishment in
innovation, technology, work performance, sports, etc.
20.2 Employees who win specified National/All India Awards shall be granted
advance increment as a token of appreciation by the company.
20.3 The Scheme shall cover all regular employees of the company.
Chairman-cum-Managing Director.
20.5 ENTITLEMENT:
20.5.1 One advance increment shall be admissible for winning any of the
following awards:
1. Invention Promotion Scheme Award.
2. National Metallurgist’s Day Award.
3. Jeevan Raksha Award.
4. Shram Vir Award.
5. Arjuna Award for Sportsmen.
6. SS Bhatnagar Award.
7. Homi Bhaba Award for excellent scientific work.
8. Vasivik Award for Senior Scientists.
9. Indian Science Academy (INSA) Award.
10. Bharat Ratna.
11. Padma Vibhushan.
12. Padma Bhushan.
13. Padma Shree.
14. Ashoka Chakra.
15. Kirti Chakra.
16. Shaurya Chakra.
17. Sarvottam Jeevan Raksha Padak.
18. Uttam Jeevan Raksha Padak.
19. President’s Police Medal.
20. Police Medal.
21. Fire Service Medal Awarded by the President of India.
22. Rashtrapati Award for Teachers.
23. Lalit Kala Academy Award.
24. Sangeet Natak Academy Award.
25. Sahitya Academy Award.
NOTE:
i) The above list is only illustrative and not exhaustive. An advance
increment shall also be admissible for winning any award, which has the
status of a National Award and is recognized award by the Government of
India as such. An increment would also be admissible for winning any
164
award given by an institution/Body Corporate which has been constituted
under an Act of Parliament, or is recognized by the Government of India.
ii) The medals/awards given by the Institution of Engineers (India) for
submission of papers or articles, do not qualify for grant of increments
under the Incentive Scheme for National and All India Award Winners.
20.5.2 If the above entitlement exceeds the maximum of the grade of an
employee, the amount in excess of the maximum shall be treated as
‘Personal Pay’. Subsequently, if the employee is promoted this personal
pay shall be added to the basic while fixing his pay in the higher grade.
20.5.3 Advance increment granted under this Scheme will not in any way affect
the annual increment and the due date.
20.6 ELIGIBILITY:
20.6.1 Employees shall be eligible to receive the advance increment with effect
from the date of receipt of the Award.
20.6.2 Where an employee receives more than one specified award for the same
work or performance he shall be eligible for one increment only.
20.7 PROCEDURE:
It would not be necessary for an eligible employee to apply for the
advance increment under this Scheme. It should be the responsibility of
the Personnel Department to ensure that an employee who wins any of
the Awards listed in the Scheme is allowed the benefits as envisaged in
the Scheme.
20.8 This scheme is liable to be cancelled/withdrawn at the discretion of the
CMD without any notice and assigning any reason, therefor. Likewise,
Chairman-cum-Managing director reserves to himself the right to
alter/amend the Scheme including the entitlement and the specified
awards.
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CHAPTER – XXI
HOLIDAY HOME
21.1 INTRODUCTION:
With a view to provide facilities to employees of MECON, Holiday Home
has been established at Puri in Orissa.
21.2 FACILITIES AVAILABLE IN PURI HOTEL, PURI:
(i) Five numbers of three-bedded rooms, each having accommodation for
three adults and two children of below 10 years.
(ii) One four-bedded room for four adults and two children of below 10
years.
(iii) One six-bedded room for six adults and four children.
(iv) One independent cottage having three double-bedded rooms for six
adults.
(v) One independent block in the rear having five rooms with two beds in
each room. Permissible accommodation in each room is two adults and
one child (below 10 years).
The rooms are with attached bathrooms and are fully furnished.
Furnishing includes bed, pillow, bed sheets and mosquito nets.
Arrangements for breakfast, lunch, dinner, tea and cold drinks are
available on payment.
21.3 TARIFF:
The employees are not required to pay room rent directly to the
Manager/Incharge, Puri Hotel. The room rent at the rate of ` 50/- per
day per room will be recovered from the salary of the employee
concerned as per rules.*
21.4 CANCELLATION CHARGES:
In the event of cancellation of confirmed reservation, the employees shall

be required to pay cancellation charges as under:
Between 14 and 10 days. : 10% of the actual room rent payable by the company.
If the reservation is for more than three days, the cancellation charges
will be 50% of the actual room rent payable by the company, if it is
cancelled at the last moment.
* Amendment made vide Policy Circular no. 17/2007 dated 26.02.2007 with immediate
effect.
166
21.5 GENERAL CONDITIONS:
(i) The Holiday Home will be available only to the employees, their spouses
and dependent children.
(ii) Accommodation at Holiday Home will be provided only once in two
years* unless accommodation is available during the period it is sought
for.
(iii) In case several applications are received for reservation of
accommodation at the same time, preference will be given to those
employees who have not availed the facility earlier.*
(iv) Accommodation will be made available only for a period of maximum

seven days.
(v) If the employee cancels reservation in any year, he shall not be eligible
for accommodation in the Holiday Home during that year.
(vi) The employees shall be responsible for any damage of the property
caused during the stay. They shall be required to reimburse the cost of
any damage done to the property of the Holiday Home.
(vii) Cooking will not be permitted in the Holiday Home.
21.6 The employees who wants to avail the facility of Holiday Home may apply
to the Deputy General Manager (Personnel) in the prescribed form, well in
advance (minimum three weeks) of his proposed visit. On receipt of the
application, arrangements will be made by Deputy General Manager
(Personnel) for accommodation, on first come first serve basis.
* Amendment made vide Policy Circular no. 17/2007 dated 26.02.2007 with immediate
effect.
167
CHAPTER – XXII
LONG SERVICE AWARD SCHEME
22.1 OBJECTIVE:
To recognize the long service rendered by the employees and give them
suitable Memento as a token of appreciation of their services.
22.2 SCOPE:
The Scheme shall be applicable to all regular employees of the company.
22.3 ELIGIBILITY:
(a) An employee who completes 15 years of continuous service in the
company shall be eligible for the Award under this Scheme.
Clarification:
Continuous service in the company shall mean uninterrupted service
rendered in HSL/Bhilai Design Cell/CEDB/MECON. The employees in
whose cases there has been a break in service on account of resignation
or termination or where continuity of service has not been agreed to will
not be considered for the Award.
(b) Periods of deputation of employees to other organization or government
will be taken into account for this purpose.
(c) In the case of persons who were/are appointed as Graduate
Apprentices/Graduate Engineers/Management Trainees, the period of
Apprenticeship/Training will be taken into account as service for this
purpose.
(d) Employees, who have already been given Long Service Award once, will
not be eligible for the Award again under this Scheme.
22.4 MEMENTO:
An employee who completes 15 years of continuous service in the
company shall be presented with a “Pair/Couple Wrist watch of Titan
or Citizen make only costing ` 4,000/- (a pair each)”. *
22.5 PROCEDURE:
The Personnel Department shall prepare a list of eligible employees who

have completed 15 years of continuous service in HSL/Bhilai Design
Cell/CEDB/MECON and arrange to distribute the MEMENTO on a quarterly
basis.
* Amendment made vide Policy Circular no. 05/2006 dated 28.08.2006 which is effective
from 01.08.2006.
168
22.6 TENURE:
22.6.1 The Scheme is effective with effect from 25th January 1978 and shall
remain operative until further orders.
22.6.2 The Scheme is liable to be cancelled/withdrawn at the discretion of the
Chairman-cum-Managing Director without any notice and without
assigning any reasons thereof. Likewise, the Chairman-Cum-Managing
Director reserves to himself the right to amend/modify or alter the
Scheme at his discretion without any prior notice.
169
CHAPTER – XXIII
SCHOLARSHIP SCHEME FOR SCHEDULED CASTE/
SCHEDULED TRIBE (SC/ST) UNDER GRADUATE
ENGINEERING STUDENTS
23.1 INTRODUCTION:
Based on the directions issued by the Government from time to time,
regarding recruitment of Scheduled Caste/Scheduled Tribe (SC/ST)
candidates in Public Sector Undertakings, MECON initiated certain
measures in the past for implementing the above policy of the
Government. But owing to shortage of qualified Engineers from SC/ST
category in the Country, it has not been possible to achieve the requisite
representation as laid down by the Government in the category of
engineers. It is, therefore, decided to select a few of the promising and
deserving under Graduate Engineering Students, who are pursuing their
studies in IITs, and encourage such students to pursue their studies
vigorously by extending suitable financial help to them. Students who
have successfully completed their studies would be considered for
employment in MECON.
MECON has already initiated a number of programmes to help the weaker
sections of our society. This step would not only discharge such
responsibility but also help in obtaining necessary representation of SC/ST
candidates in MECON engineers category as laid down by the
Government.
The above scheme would be known as “MECON scholarships” and the
students would be awarded such scholarships would be referred as
“MECON Scholars”.
23.2 OBJECTIVE:
The objective of the scheme is to:
(a) To render financial assistance to the deserving students of SC/ST
community to enable them to prosecute higher studies in different
branches of Engineering; and
(b) Consider the above candidates for employment in MECON upon successful
completion of their studies.
23.3 INSTITUTIONS AND ENGINEERING DISCIPLINES FOR AWARD OF
MECON SCHOLARSHIPS:
MECON Scholarships will be awarded to under graduate students pursuing
programmes in Civil, Mechanical, Electrical, Metallurgical, Chemical,
Mining, Ceramics and Electronics Engineering disciplines only. To begin
with 05 (five) awards are proposed at any of the institutions mentioned
below at the rate of 1 (one) scholarship for one institution and one
scholarship for one discipline:
- IIT, Delhi
- IIT, Kanpur
- IIT, Chennai
- IIT, Mumbai
- IIT, Kharagpur
170
23.4 VALUE AND DURATION OF MECON SCHOLARSHIPS:
Value of each MECON Scholarship will depend upon the existing level of
‘reasonable expenditure’ at each campus, but shall not exceed `
400/- per month. The said ‘reasonable expenditure’ will be arrived at after
mutual consultation between MECON and the institution concerned and
will cover items such as:
(a) Tuition fee.
(b) Fees on account of library, laboratory, examination and medical etc.
(c) Charges/rent on account of room, fan, water, electricity and furniture etc.
(d) Expenditure towards books.
(e) Messing charges.
The duration of MECON Scholarships shall be for the entire period of the
course, subject to conditions and procedures as set out in para 5 below.
The scholarship shall be payable in suitable instalments over the year.
23.5 CONDITIONS FOR AWARD:
(a) MECON Scholarships shall be awarded to deserving SC/ST students
pursuing full time under-graduates engineering course in Civil,
Mechanical, Metallurgical, Electrical, Chemical, Mining, Ceramics and
Electronics Engineering Disciplines only.
(b) Annual income from all sources of the parent/guardian of the selected
candidates shall not exceed ` 15,000/- (House Rent Allowance received by
the parent/guardian shall be exempted from computation of annual
income if the same has been exempted for the purpose of income tax).
(c) A candidate in receipt of a MECON Scholarship shall not be entitled to
draw any other financial aid/stipend from any other source WHATSOEVER.
(d) MECON Scholars will have to give an undertaking in writing before drawal
of such scholarship that they would first serve in MECON, if they are
selected for appointment in MECON on successful completion of their
studies.
(e) MECON Scholars who would be selected for appointment in MECON on
successful completion of their studies, will have to serve the company for
a minimum period of 5 (five) years.
23.6 PROCEDURE FOR AWARD AND ITS SUBSEQUENT

CONTINUANCE:
Subject to fulfillment and acceptance of conditions set out in para 5
above, the procedure for initial award and its subsequent continuance
shall be regulated as under:
(a) Selection shall be made on the basis of performance in the admission

test, in order to merit duly recommended by the appropriate authority of
the Institution.
(b) Awards for subsequent years and until completion of the course shall be
strictly subject to continuous satisfactory performance and good conduct.
Awardees who fail to pass in standard time in their semester or annual
examination, as the case may be, and or indulge in any activity
171
amounting to misconduct as per the rules and regulations of their
respective Institution, will disqualify themselves for any further aid.
Recommendations in this regard to us by the appropriate authority shall
be final. Suitable applications forms embodying conditions and procedures
above are to be devised by the Institutions themselves. After necessary
processing of these forms at the Institution end, MECON would require
the following documents before giving its final approval:
(i) Sponsorship letter duly signed by the appropriate Authority on the lines of
a draft attached as Annexure–A.
(ii) A certificate duly signed by the sponsored candidates on the lines of a
draft attached as Annexure–B.
23.7 MODE OF PAYMENT:
All payments on account of MECON Scholarship shall be made through the
Appropriate Authority of the Institution only. Detailed procedure in this
regard is to be settled through mutual consultation.
23.8 SELECTION FOR EMPLOYMENT IN MECON:
Upon successful completion of their course, MECON Scholars will be called
upon to appear for an interview at our Head Office at Ranchi or any of our
offices situated in India. 2nd Class actual to and fro rail fare (from the
institution or the place of residence which may be convenient to the
Scholar) for the above interview shall be reimbursed by MECON. If finally
selected the scholar shall be appointed in MECON as Trainee Engineer in
the grade of E-0 plus other allowances as per the rules of the company.
The liability to serve MECON for a minimum period of 05 (five) years as
set out in para 5 above will exclude the period of training as Trainee
Engineer.
23.9 The Scheme has been operative since the academic year 1981-82 and is
liable to be cancelled/withdrawn at the discretion of the Chairman-cum-
Managing Director without any notice and without assigning any reasons
thereof excepting to Govt. directives in this regard. Likewise, the CMD
reserves to himself the right to amend/ modify/suspend/alter the scheme
at his discretion without any prior notice.
172
ANNEXURE – A
(Ref. Clause 23.6 (i))
To,
The Dy. General Manager I/c (Personnel)
MECON Limited,
P.O. – Hinoo,
Ranchi – 834 002
Sub : MECON Scholarship Scheme for SC/ST

under Graduate Engineering Students.
Dear Sir,
1. Reference your letter no. ……………… dated …………….

2. We are to inform that we have …….. full time SC/ST under graduate engineering
students in Civil, Mechanical, Metallurgical, Chemical, Ceramics, Mining and
Electronics Engineering disciplines on our rolls who have successfully passed
their first annual examination held on ………..…
3. We are pleased to sponsor the following students for award of MECON
Scholarship :
(a) Name :
(b) Date of Birth :
(c) Father’s/Guardian’s name :
(d) Engineering Discipline : Civil/Mech./Elect./Metallurgical/ Mining
/Ceramics/Electronics.
(e) Performance in the first :
annual examination.
(f) Position obtained from :
amongst all SC/ST students
at para 2 above.
(g) % of marks obtained :
(h) Conduct :
( If students other than those standing first, second and third are being sponsored,
reasons thereof may please be stated )
Yours faithfully,
( Head of Institution/Registrar, etc. )
173
ANNEXURE – B
(Enclosure to Annexure – I)
CERTIFICATE
(To be submitted in duplicate)
I, ______________ Son of _______________ of ____________ (Permanent

address) at present pursuing a full time degree engineering programme in
Civil/Mechanical/Electrical/Chemical/Mining/Ceramics/ Electronics
Engineering at IITs/University/College, certify that: -
(a) I belong to a Scheduled Caste/Scheduled Tribe community as defined vide
Government letter No. …………
(b) The annual income of my parent/guardian does not exceed ` 15,000/- as
stipulated in MECON Scholarship Scheme.
(c) I have read the conditions and procedures for award of MECON Scholarship
published vide Institute/University/College Circular No. ………... dated …… … and
I hereby undertake to abide by the said conditions and procedures, should I be
selected for the said scholarship.
(d) I also undertake to serve MECON, should I be selected for appointment in the
company on successful completion of my studies/programmes.
Date: Signature ___________________
Place:
COUNTERSIGNED
Date:
Place:
(Seal of the Institution/ Head of the Institution/

University/College) Registrar/Dean of students.
174
CHAPTER – XXIV
GROUP INSURANCE SCHEME
24.1 DEFINITIONS:
In these rules, where the context so admits, the masculine shall include
the feminine, the singular shall include the plural and the following words
and expressions shall, unless repugnant to the context have the following
meanings:
i) “COMPANY” shall mean MECON Limited.

ii) “EMPLOYER” shall means the company and any other company, Firm or
Corporation which may in future be managed or controlled by or become
associated with the company and which may agree to become bound by
these Rules:
iii) “CORPORATION” shall means the Life Insurance Corporation of India
established under Section 3 of the Life Insurance Corporation Act, 1956;
iv) “SCHEME” shall mean MECON Employees Group Insurance Scheme ;
v) “RULES” shall mean the Rules of the Scheme as set out below and as
amended from time to time;
vi) “MEMBER” shall mean the particular Employee of the Employer who has
been admitted to membership of the Scheme and on whose life an
assurance has been or is to be effected in accordance with the Rules;
vii) “EFFECTIVE DATE” shall mean the 01.08.1975, the date as from which
the Scheme commences;
viii) “ENTRY DATE” shall mean (a) in relation to Original Members the
Effective Date and (b) in relation to new Members admitted to the
Scheme after the Effective Date, the Annual Renewal Date, which is
coincident with or immediately next follows the date on which they
become eligible;
ix) “ANNUAL RENEWAL DATE” shall mean in relation to the Scheme is
01.01.1976 and the 1st day of January in each subsequent year;
x) “TERMINAL DATE” shall mean in relation to the Member the Annual
Renewal Date which is coincident with or next following the date on which
the Member completes the age of 58 years;
xi) “ASSURANCE” shall mean the particulars Assurance or Assurances to be
effected on the life of the Member;
xii) “BENEFICIARY” shall mean the person or persons who has/have been
appointed by the Member as Beneficiary or Beneficiaries and whose name
or names have been entered in the Registrar of Members kept by the
Employer;
xiii) “SERVICE” shall mean the period of continuous service rendered by the
Member as an Employee of the Employer reckoned from the date on
which he enters the Scheme to the Terminal Date. For the purpose of the
Scheme Service shall include a period of authorized leave;
175
xiv) “SALARY” shall mean basic monthly salary of the Member excluding
dearness allowances, bonus, commission or any other emoluments of a
contingent or variable nature.
24.2 The Employer will act for and on behalf of the Members in all matters
relating to the Scheme and every act done by agreement made with and
notice given to the Corporation by the Employer shall be binding on the
Members.
24.3 ELIGIBILITY:
(a) An employee of the company who is entitled to membership of the
Provident Fund under rule 4 of the Provident Fund Rules of the company
shall be eligible to join the Scheme.
Present employees who on the Effective Date are within the above
category shall join the Scheme as from that date. Present employees who
are not within the above category on the Effective Date shall join the
Scheme on the Annual Renewal Date coincident with or next following the
dates on which they become eligible.
It will be a condition of service for future employees that they shall
become members on the Annual Renewal Dates coincident with or
immediately next following the date on which they enter the above
category.
(b) No member shall withdraw from the Scheme while he is still an eligible
employee satisfying the conditions of Eligibility described above.
24.4 EVIDENCE OF AGE:
Every employee, at the time of his becoming a member, must produce
documentary evidence of his age e.g. Matriculation/School Leaving
Certificates or Birth Certificate from Municipality and in the absence
thereof such evidence as may be acceptable to the corporation.
24.5 EVIDENCE OF HEALTH:
Satisfactory evidence of health as required by the corporation shall be
furnished by every employee at the time of his entry into the Scheme and
on each occasion when an increase in assurance is granted. The terms of
acceptance may be varied if in the opinion of the corporation the evidence
of health is not satisfactory or other special hazards exist.
24.6 CONTRIBUTIONS:
The employer shall pay to the corporation in respect of each member on
the Entry Date and relevant Annual Renewal Dates, such contributions as
are required to secured and continue the Assurance on his life as
described in these Rules. The member shall not be required to make any
contribution in any form for getting the benefit under this Scheme.
176
24.7 ASSURANCE:
An assurance shall be effected on the life of each member under one year
Renewable Group Term Assurance Plan for a sum assured equal to 24
(twenty-four) months salary. The Assurance shall be held by the employer
UPON TRUST for the benefit of the persons entitled to in accordance with
these Rules;
24.8 BENEFITS ON DEATH PRIOR TO TERMINAL DATE:
Upon the death of the Member whilst in Service prior to Terminal Date,
the sum Assured under the Assurance then in force shall be payable to
the Employer for the benefit of the Beneficiary in lump sum.
24.9 TERMINATION OF ASSURANCE:

The Assurance on the life of a Member shall immediately terminate upon
the happening of any of the following events and no benefit will become
payable thereunder:
(a) The member reaching the Terminal Date,
OR (b) The member ceasing to be in service of the Employer.
24.10 RESTRAINT OF ANTICIPATION OR ENCUMBRANCE:
The benefits assured under the Scheme are strictly personal and cannot
be assigned, charged or alienated in any way.
24.11 DISCONTINUANCE OR AMENDMENT OF THE SCHEME:
The Employer reserves the right to discontinue the Scheme at any time or
amend the Rules thereof on any Annual Renewal Date subject to 3
months’ notice being given to the Members and the Corporation.
24.12 JURISDICTION:
All assurance issued under the Scheme shall be Indian Contracts. They
will be subject to Indian Laws including the Indian Insurance Act, 1938 as
amended, the Estate Duty Act, 1953, amended, the Life Insurance
Corporation Act, 1956, the Income Tax Act, 1961 and to any legislation
subsequently introduced. All benefits under the Scheme arising out of
death of any member shall be payable in Indian Rupees.
24.13 MASTER POLICY AND CERTIFICATE OF ASSURANCE:
The Corporation will issue a Single Master Policy incorporating all the
Assurances effected under the Scheme. Each member will be given a
certificate for his information in which shall be stated the benefits assured
for him under the Scheme.
24.14 ESTATE DUTY:
The payment of the benefits under these rules shall be made to the
beneficiary on production of Estate Duty clearance certificates. PROVIDED
THAT where the Beneficiary of a deceased Member claiming the benefits
hereunder satisfy the Employer that duty has been paid or shall be paid or
that no duty is due, the Employer shall have the discretion to pay the
benefits subject to the Beneficiary furnishing indemnity or indemnities in
the form and manner specified by them.
177
24.15 APPOINTMENT OF BENEFICIARY:
Every Member shall appoint from amongst his wife and child/children or
dependents to be his Beneficiary or Beneficiaries. In the event of death of
the Member whilst in service, the benefits then in force under the
Assurance on his life will be paid to the Beneficiary or Beneficiaries
appointed by the Member in the form given in the Appendix. If the
Member has a family i.e., a wife or child/children then he shall appoint a
member of his family as a Beneficiary. If the member has no family on
the date of his becoming a member, any relative/dependent may be made
beneficiary but if he subsequently acquires a family, the member shall
forth with make a member of his family as beneficiary.
24.16 RATES OF PREMIUM AND CONDITIONS OF ASSURANCE:
The rates of premium and conditions of Assurance under which the
Corporation is prepared to arrange the Scheme shall be subject to an
agreement between the Employer and the Corporation. The conditions of
Assurance may be amended by the Corporation from time to time on any
Annual Renewal Date subject to 3 months’ notice being given to the
Employer.
178
CHAPTER – XXV
MEMENTO TO RETIRING EMPLOYEES
25.1 OBJECTIVE:
To remember the long and cherished association of the employee with the
company.
25.2 SCOPE:
The Scheme shall apply to all regular/permanent employees retiring from
the company.
25.3 ELIGIBILITY:
An employee who retires from the services of the company on attaining
the age of superannuation and on VRS will be eligible for the memento.
Employees who resigns from the services of the company or whose
services are terminated for any reason whatsoever, shall not be eligible.
25.4* MEMENTO:
“An employee who retires shall be presented a hard strolley bag of
standard make as memento with MECON insignia. The make of the
Strolley Bag shall be as per management approval from time to time.”
25.5 PROCEDURE:
The memento shall be presented by the Head of the organization/
Department or his representative at a small informal function organized in
the section.
25.6 The Scheme is effective from 22nd June 1983 and shall remain operative
till further orders.
25.7 The CMD reserves the rights to modify, suspend, cancel or amend the
scheme without assigning any reason thereof and prior notice.
* Amended vide Note No. 11.73.3.8151/2012 dated 22.06.2012 approved by CMD.
179
CHAPTER – XXVI
EX-GRATIA ASSISTANCE TOWARDS
FUNERAL EXPENSES
26.1 OBJECTIVE:
To establish a uniform policy and frame rules for granting assistance
towards funeral expenses of employees who die while in service of the
company.
26.2 SCOPE:
These rules shall cover all regular employees of the company including
Graduate Engineers and Management Trainees.
26.3 POLICY:
The above payment shall be made in the nature of pecuniary and towards
funeral expenses incurred by the relatives of the deceased employee.
26.4 DEFINITIONS:
26.4.1 “Employee” means a person employed by the company on regular basis,
including those on probation, but does not include a casual or part time
employee or a trainee.
26.4.2 “Next of kin” means a person declared by the employee in his/her service
record as nominee in case of his/her death to receive all kinds of dues
payable by the company.
26.5 PAYMENTS:
A sum of ` 10000/-* shall be paid as ex-gratia assistance towards funeral
expenses of employees who die while in service of the company, whether
the death is caused by accident arising out of and in the course of
employment or due to natural causes.
CLARIFICATION:
The ex-gratia assistance towards funeral expenses to employee, who die
while in service, may also be sanctioned when an employee dies at a
place other than his place of posting. But before sanctioning the
assistance, the Management should satisfy itself about the bonafides and
authenticity of the persons requesting the assistance.
26.6 CONDITIONS:
26.6.1 Payment will be made to the nominee (next to the kin of the deceased
employee) on receipt of a written request. In case the next of kin is not
available, friends or neighbours who are making the arrangements for the
funeral can make the application on behalf of the nominee or next of kin
as the case may be.
26.6.2 Before making any payment, the Competent Authority should be satisfied
in regard to the genuineness of the claim.
* Amended vide Wage Agreement signed on 22.09.2010 in respect of non-executive

employees.
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26.7 TENURE:
26.7.1 These rules are liable to be withdrawn at the discretion of the company
without any notice and without assigning any reason thereof. Likewise,
the company reserves to itself the right to alter and/or amend any part of
the above rules and also the amount of payment.
26.7.2 These rules shall supersede all the rules, regulations, orders and
instructions issued on this subject.
26.8 PROCEDURE OF PAYMENT:
A written application in the prescribed form (Annexure–I) should be
presented by the next of kin or his nominee or the person who will be
arranging the last rites of the deceased employee for availing the above
facility. The amount would be paid to the applicant. In the case of any
person being a friend or neighbour who is undertaking the funeral rites he
may be allowed the payment of ` 5,000/- only for the funeral expenses
which is not recoverable from the dues of the employee.
* Rates revised vide Tripartite Wage Agreement in respect of non-executive regular

employees signed on 15.04.2015.
181
Annexure - I
(Ref. Rule 26.8)
APPLICATION FORM
1. Name of the deceased employee :
2. Designation and Department :
3. Name of the applicant :
4. Relationship of the applicant :

to the employee
5. Amount :
I have fully read and understood the rules and conditions governing the grant
of payment towards funeral expenses and agree to abide by them.
Name and Signature of the applicant.
Date :
Witness :
(1)
(2)
182
CHAPTER - XXVII
GRATUITOUS RELIEF FUND
27.1 The objective of the Fund is to provide fund at the disposal of the
company to relieve, in deserving cases, the employees of the company,
including the employees working in Canteen, Consumer Co-operative
Stores and Jawahar Vidya Mandir in cases of great financial hardship in
the following cases: -
(i) Expenses on medical treatment of the employee and his dependents (as
defined under the Medical Rules of the company) where medical expenses
on account of purchase of medicines and artificial limbs and specialists’
charges fall far short of the amount reimbursable under the Rules of the
company.
(ii) To assist by way of part reimbursement for expenses involved in and
education of mentally retarded/physically disabled child of an employee
where the child requires special educational facilities involving
expenditure excessively beyond the means of the employee concerned.
(iii) To assist by way of subsistence to employees who are forced, due to
prolonged sickness, to be on leave beyond the period of paid leave due to
them, up to a certain period.
(iv) To meet the funeral expenses on account of a dependent member of the
family of an employee (as defined under the Medical Rules of the
company) normally residing with the employee concerned.
(v) To give financial assistance to employees who suffers losses due to

dacoity.
27.2 The company will make an annual provision not exceeding ` 10,000/-
(Rupees Ten thousand only) in its budget for meeting the expenses under
this Fund.
27.3 The fund will be under the control of the Chairman-cum-Managing
Director of the company, who will be the Competent Authority to sanction
expenditure in individual cases from the fund.
27.4 Applications for relief under this Scheme will be examined by a committee
consisting of a representative of the Personnel Department, Finance
Department and a Technical officer – all from the Head Office of the
company, nominated by the CMD. The Chief Medical Officer of Ispat
Hospital or a Medical Officer of Ispat Hospital nominated by him will also
be a member of the Committee.
27.5 The Committee will agree the suitability of the Applicant for grant of relief
and the quantum of relief to be granted.
27.6 The recommendations of the Committee will be submitted to CMD for
consideration and final order.
183
27.7 In the case of subsistence allowance during prolonged illness beyond the
period of paid leave due to the employee, subsistence allowance will be
payable under this scheme for a period not exceeding six months and
subsistence allowance payable will be at the rate of 25% of the basic
salary of the employee subject to a maximum of ` 200/- per month. In
deserving cases of exceptional hardship CMD may, on specific
recommendations of the above mentioned Committee, relax this limit of
six months for eligibility of payment of subsistence allowance provided,
however, that subsistence payment for the period beyond six months will
be made only at the rate of 75% of the amount paid during the first six
months and the extension of the period will be limited to six months at
the maximum.
27.8 The amount of assistance on account of funeral expenses for a dependent
family member of an employee normally residing with the employee at
the place of his head quarters will be limited to ` 500/- or actual expenses
whichever is less in each case.
184
CHAPTER – XXVIII
SCHEME FOR TAKING HOUSES ON COMPANY/
INDIVIDUAL LEASE FOR RESIDENTIAL PURPOSE
28.1 INTRODUCTION:
In view of the difficulties faced by the employees in finding residential
accommodation particularly in the Metropolitan Cities, the company has a
scheme of taking houses on rent/company lease.
28.2 The ceiling rates for individual/company lease accommodation in different
cities will be as follows: - *
Grade Metro/“A-1” “A” “B” “C” HRR

Class Class Class
E-0 4550 3900 2750 2300 700
E-1 5350 4500 3200 2700 825
E-2 5800 4950 3500 2900 940
E-3 6450 5500 3850 3250 960
E-4 6950 5950 4200 3500 990
E-5 8200 7000 4950 4100 1005
E-6 8550 7300 5150 4300 1020
E-7 8900 7600 5350 4450 1050
E-8 9500 8100 5700 4750 1150
E-9 10800 9200 6450 5400 1350
S-1 1710 1470 1110 990 270
S-2 1770 1520 1150 1025 280
S-3 1830 1575 1190 1060 290
S-4 1920 1655 1250 1120 310
S-5 2050 1770 1335 1190 335
S-6/SL-1 2210 1900 1440 1285 360
S-7/SL-2 2370 2045 1545 1380 385
S-8/SL-3 2535 2180 1650 1470 410
S-9/SL-4 2730 2350 1775 1585 440
The above limit in each case will be inclusive of 10% of the basic pay of
the employee to be borne by the employee himself.
* Monetary Ceiling on Company Leased Accommodation in respect of Executive employees

revised vide Policy Circular no. 14/2006 dated 30.11.2006 effective from 01.04.2006.
185
28.3 INDIVIDUAL LEASE:
An employee may take a house on rent and enter into a contract himself
with the landlord and claim house rent allowance as per the rules. In such
cases, the employee will be entitled for the following, in addition to the
house rent allowance as per the existing rules.
1. Brokerage Charges:
Brokerage charges for finding a house subject to production of receipt
upto a maximum of one month’s rent or 10% of the employee’s basic pay
plus applicable HRA at the place of posting, whichever is less.
2. Inspection Charges:
Inspection charges for inspecting four houses subject to a maximum of
`50/- on production of receipt.
3. Security Deposit and Advance:

Employees will be eligible for security deposit or advance subject to a
maximum of three month’s basic pay or nine month’s rent whichever is
less, recoverable in 36 equal monthly instalments.
An employee is entitled for all the above mentioned benefit only once in
each place of posting and will not be entitled for the same for changing
his house at the same place of posting.
28.4 COMPANY LEASE:

An employee may be allowed to take a house on company lease on the
following terms and conditions: -
1. It will be the responsibility of the employee himself to locate a suitable
house on such terms and conditions as may be supplied by the company.
These terms and conditions will be as per the standard lease deed to be
uniformly entered for all houses taken by the company on lease.
2. The lease will be valid for a minimum period of three years.
NOTE:
(i) In exceptional cases, the company may take house on lease for two
years/one year or 11 months depending upon the availability of
accommodation.
(ii) In case of two year lease, the advance payable would be two months’
basic pay or six months’ rent, whichever is less, recoverable in 24
instalments.
(iii) In case of one year/11 months’ lease, the advance payable would be
three months’ rent recoverable at the rate of 12½% of the monthly rent.
3. The rent of houses taken on company lease shall not exceed 10% of the
basic pay of the employee, plus the entitled HRA of the employee. If the
rent for a house exceeds the above mentioned amount, then the excess
will be paid by the employee himself.
4. The employee will be reimbursed brokerage and inspection charges to the
same extent as mentioned in “A” above.
186
5. Security deposit of advance upto a maximum of three months’ basic pay
or nine months’ rent, whichever is less, recoverable from the rent payable
to the land-lord each month at least to the extent of 37½% of the
monthly rent.
Clarifications:
(i) The advance, which is being paid to the land-lord by way of security and
advance may be segregated in the following manner : -
(a) The security deposit equivalent to one month rent shall be adjusted
against last month’s rent.
(b) Advance equivalent to eight month’s rent shall be recoverable during the
remaining period of lease in equal monthly instalments.
OR
(a) Security deposit equivalent to three month’s rent shall be adjustable with
the rent of last three months’ before vacation of the accommodation.
(b) Advance equivalent to six months’ rent adjustable in equal monthly
instalments.
(ii) In case of two year lease, the advance payable would be six months’ rent
or two months’ basic pay, whichever is less, recoverable in 24 equal
monthly instalments.
(iii) In case of one year/11 months’ lease, the advance payable would be
three months’ rent recoverable from the rent payable to the land-lord
each month at least to the extent of 12½% of the monthly rent.
(iv) In case of change of houses either by termination of the lease or refusal
to renew the existing lease by the land-lord, an employee may be allowed
fresh advance, brokerage and inspection charges as per rules. However,
in the case of one year/11 months lease, the brokerage and inspection
charges together will be limited to ½ month’s rent.
(v) An employee will also be eligible for fresh advance on conversion of
individual lease to company lease and vice-versa during the recovery
period of the earlier advance. The amount of advance payable in such
cases will be limited to the difference between the present eligibility and
the amount of house rent advance already drawn earlier plus the amount
of house rent advance already refunded. The amount will be recovered in
12 monthly instalments.
(vi) The employee will give an undertaking that he will stay in the house until
his transfer by the company.
(vii) The rent being negotiated should not be highly disproportionate to the
type of accommodation and the area in which the house is located.
(viii) The company may allow hiring of garage on the basis of separate lease
deed subject to the over-all entitlement of the employee concerned.
(ix) Repairs and maintenance of the house will be the responsibility of the
employee himself.
187
(x) The employee will enter into a contract with the company wherein the
above terms and conditions will be included such other terms and
conditions as may be deemed necessary.
Clarifications:
Houses belonging to the close relatives of employees such as father,

mother, brother, sister, father-in-law etc. can be taken on company lease
for allotment to the employees concerned for residential accommodation.
The company may take the houses of employees owned by them or in
which they have share in ownership on company lease for the purpose of
leasing it out to employees. The houses so taken on lease can also be
allotted to the owner employee. The rent of all such houses to be taken
on company lease in future shall be assessed by a Committee constituted
for this purpose by Management. The Committee shall consist of one
representative each from Technical, Administration, Finance and Vigilance
Departments.
While determining the rental value, the Committee will take into
consideration the following: -
(i) The value of rental area of the house/portion in occupation of the
employee and his/her family.
(ii) Prevalent market rent for similar accommodation in the locality.

The rent recommended by the Committee and approved by the
Competent Authority shall remain in force for a period of three years and
shall not be reviewed during this period. (In case, the house is allotted to
the owner employee there shall not be any upward revision unless there
is any upward revision in rates and taxes). However, if there is a decrease
in the area under occupation, the employee shall immediately notify the
change to the company. In such a case, the rental value of the area under
occupation shall be determined fresh. The rental value per sq. ft. as
originally determined, shall be the basis for fixing the revised rental.
Application for internal assessment of rental value will be made in the
prescribed form for the purpose of assessment and lease will take effect
from the date of application, if the house is already in occupation of the
employee and in other cases from the date of occupation.
For determining rental entitlement on the basis of internal assessment
only the monthly rental value so assessed and no municipal or other taxes
will be taken into account.
It will be the duty of the employee to intimate the concerned Municipal
Corporation the amount of rent at which the house has been leased,
under advice to the company.
The rent admissible for leasing the accommodation to the company shall
not exceed the maximum entitlement of the employee as prescribed in
rules for company lease accommodation. The employee shall pay to the
company 10% of his pay as rent for the house allotted to him.
Where both the husband and wife are employees of the company posted
at the same location, only one of them at their option will be eligible for
company’s lease accommodation. The other spouse shall not be paid any
188
House Rent Allowance even if he/she is otherwise eligible to draw HRA at
a flat rate.
In the case of an employee leasing his house to the company, the house
will remain with the company for allotment to another employee during
the period of lease in case the employee is transferred from that place. In
the event of owner employee ceasing to be in employment, the house will
normally be made over to him, subject to such safeguards as may be
necessary for recovery of balance of house building loan, if any
outstanding against him.
Employees who are living in their own houses and entitled to house rent
allowance can claim HRA either on the basis of municipal assessment as
provided in the HRA rules or on the basis of the internal assessment as
provided in these rules.
No brokerage/security deposit/accommodation loan would be payable
when an employee leases out his own house to the company. The option
to take the house on lease shall rest with the company. No employee can
claim this as a matter of right.
Those employees who are in possession of leased accommodation will be
reimbursed repair/maintenance expenses equivalent to 02 (two) month’s
“Lease Rent” as per their entitlement in a financial year.
CMD reserves the right to make, modify, suspend, amend all and/or any
of the provisions under this chapter without any prior notice or assigning
reasons thereof.
189
CHAPTER - XXIX
DEPUTATION TERMS FOR TRAINING IN
INDIA & ABROAD
29.1 SCOPE:
These rules shall be applicable to employees of the company deputed for
training in India or abroad. These shall cover refresher courses, short and
long term training programme organized by Institutions outside the
company.
29.2 OBJECTIVE:
The objective of these rules is to provide uniform guidelines.
29.3 GENERAL:
(a) Employees may be deputed for training from time to time by the company
depending on their training needs in India or abroad.
(b) The period of deputation for training shall commence from the date the
employee is relieved from duty for the purpose and shall terminate when
the employee resumes duty on completion of training.
(c) The period of training may be extended or curtailed at the discretion of

(d) No employee shall take up with the authority responsible for the training
the question of extension/variation in the training period, without the
prior approval of the Competent Authority.
29.4 TRAINING IN INDIA:
29.4.1 Pay and Allowances:
The pay and allowances admissible to the employee shall be payable at
his headquarters during the period of his training.
29.4.2 Travelling/Daily Allowance:
(i) Travelling Allowance for journey shall be admissible as per rule 10.4.3 of
the Service Rules.
(ii) The employee shall be entitled to daily allowance as mentioned
below:
(a) If board and lodging is provided, 25% of daily allowance per day;
(b) If board and lodging is not provided, daily allowance as per rules.
29.4.3 Period of Absence from Duty:
The period of absence from duty by employees on account of training
shall be treated as duty for all purposes.
190
29.4.4 An employee who is eligible for overtime allowance as per rules shall not
be entitled for the same during the period of training even if the training
period extends beyond the working hours. An undertaking to this effect
shall be taken from such employees before they are sponsored for any
training.
29.4.5 Execution of Bond:
Employees deputed on training within India shall be required to execute a
bond to serve the company for the period stipulated or in lieu thereof to
pay an amount as mentioned below:
The details of the bond period and amount for different types of
sponsorship shall be applicable as given below:
Period of Study Type of sponsorship Bond Bond Amount (`)
period
A.1 Part-time courses/ No financial commitment from No bond
correspondence Courses Company side and no grant of
(any duration) Leave involved.
2. Full time Any type of sponsorship No bond
courses/training for less
than a semester in
India. (One semester
shall be treated to be of
6 months’ duration)
B.1 6 months i) Own study leave and no 2 years ` 20,000/-
course/training financial support.
ii) Own study leave with stipend/ 4 years ` 45,000/-
grant of finance.
iii) Sponsorship with full financial 4 years ` 1,00,000/-
benefit.
C. More than 6 months but i) Own study leave. 4 years. ` 30,000/-
upto 1 year (2 academic ii) Own study leave with stipend/ 4 years. ` 75,000/-
semesters or one financial grant.
academic year). iii) Full sponsorship. 5 years. ` 1,60,000/-
D. More than one year but i) Own study leave. 5 years ` 50,000/-
upto 2 years. ii) Own study leave with stipend/ 5 years ` 1,20,000/-
financial grant.
iii) Full sponsorship 6 years ` 2,40,000/-
E. Special Cases more i) Own studies leave. 6 years ` 80,000/-
than 2 years and upto 3 No financial assistance.
years. ii) Doctors pursuing 3 years 6 years ` 1,80,000/-
MD/MS Course. Own study
leave with stipend/financial
grant.
iii) Doctors sponsored for DM/M. 6 years. ` 4,00,000/- or cost
Ch 3 years degree course. to the company on
Own study leave with part actuals for the
sponsorship. sponsorship,
whichever is higher.
29.5 TRAINING ABROAD:

29.5.1 Full pay and allowances admissible to the employees in India shall be
payable to his nominee in India during the period of his training.
29.5.2 Maintenance Allowances:
The company shall arrange to pay maintenance allowance to cover the
cost of training, board and lodging, travel etc. at the rate prescribed at
the time of deputation for training.
191
29.5.3 Passage:
(a) In India: Travelling allowance from the place of duty of the employee to
the place of embarkation on outward journey and from the place of
disembarkation to the place of duty on return journey shall be paid to the
employee in accordance with the Travelling Allowance Rules.
(b) Outside India: The company shall arrange for passage to and from the
country of training.
29.5.4 Excess Baggage:
Employees deputed on training shall not normally be allowed to carry
excess baggage. However, the Competent Authority may permit carriage
of excess baggage in view of special circumstances to be recorded in
writing, but in no case such excess baggage shall exceed 6 (six) kgs.
29.5.5 Home Leave:
Home Leave shall be admissible to the employee deputed on training as
follows:
(a) 7 days before proceeding abroad and 7 days immediately after return
from abroad, provided the period of training is 90 days or more;
(b) Total 7 days if the period of training is less than 90 days but more than
60 days.
(c) 3 days if the period of training is less than 60 days but more than
30 days.
29.5.6 Execution of Bond:

All employees sent for training abroad shall be required to execute a bond
to serve the company for the period stipulated or in lieu thereof to pay an
amount as mentioned below before proceeding on training:
Sl. Training Abroad (fully Bond Amount of the Bond.
sponsored by company). Period
01. More than 15 days but less 3 yrs. ` 1,50,000/- or cost to the company
than 2 months. for the training whichever is higher.
02. More than 2 months but less 4 yrs. ` 2,50,000/- or cost to the company
than 6 months. for the training whichever is higher.
03. More than 6 months but less 5 yrs. ` 4,00,000/- or cost to the company
than 1 year. for the training whichever is higher.
04. 1 year to less than 2 years. 5 yrs. ` 5,00,000/- or cost to the company
for the training whichever is higher.
(a) In case where an employee had executed a bond earlier to serve the
company and certain balance period of the same is left at the time of
execution of the second bond, such remaining period shall be added to
the period stipulated in the second bond, and the employee concerned
shall be required to serve the company for the total period under the
bond consecutively.
(b) The employee on return from training shall be required to submit a report
in quadruplicate to the Competent Authority within 2 months of his
return.
192
29.5.7 Out Fit Allowance:
The employees deputed for training/official visit abroad shall be allowed
outfit allowance at the rate of ` 1000/- provided;
(i) No out fit allowance has been received by the employee during the last 5
years.
(ii) The period of training/visit is not less than 30 days.
193
CHAPTER - XXX
INCENTIVE SCHEME FOR PROMOTION OF
PROGRESSIVE USE OF HINDI IN DAY TO
DAY OFFICE WORK
30.1 OBJECTIVE:
30.1.1 To encourage employees acquire qualifications in the Hindi Language and
use of Rajbhasha Hindi in their official work.
30.1.2 To comply with the provisions of the Official Languages Act, 1963, the
Official Languages Rules 1976 and the orders issued from time to time by
the Government of India regarding the Hindi Teaching Scheme and the
use of Hindi as Official Language.
30.2 POLICY:
30.2.1 To ensure increasing use of Hindi in the official work in MECON.
30.2.2 To sponsor employees not having working knowledge of Hindi, to acquire
qualifications in Hindi under the Hindi Teaching Scheme of the
Government of India.
30.2.3 To provide training in English Stenographers/PAs/EPSs in Hindi
Stenography.
30.2.4 To provide training in Hindi typewriting to those Assistants/ Sr. Assistants
whose job normally involves English typing.
30.2.5 To liberalize the Hindi Incentive Scheme of the Govt. of India and to
provide better incentive on:
(a) Acquiring qualifications in Hindi.
(b) Passing Hindi Stenography/Typewriting examinations.
(c) Doing official work in Hindi exclusively or in addition to English.
30.3 SCOPE:
30.3.1 This incentive scheme shall cover all employees of the company excluding
the daily rated staff, contract labourers, messengers, security guards,
drivers, tea boys, stewards etc. and employees in Class-IV category.
30.3.1.1 Deputationists in the company’s service or company’s employees on
deputation outside shall not be covered under this scheme.
30.3.2 Employees posted in the Hindi Cell or those appointed for doing Hindi
work and posted in other departmental/sections shall not be covered
under this scheme, except as otherwise provided in the Incentive
Scheme.
30.4 FACILITIES:
30.4.1 No fee will be charged towards tuition or for examination conducted under
the Hindi Teaching Scheme.
30.4.2 Textbooks for Prabodh, Praveen and Pragya examinations will be supplied
free of cost.
194
30.4.3 Classes will be held during office hours.
30.4.4 TA/actuals conveyance charges as admissible under MECON TA Rules will
be allowed for attending training classes and for appearing in the
examination in case these are held out of the office premises or out of
station.
30.4.5 In the case of training and/or the examination held within the city but
outside the office premises, reimbursement of actual conveyance
expenditure as per the entitlement will be admissible from the offices to
the training/ examination centre and vice-versa.
30.4.6 Duty leave will be granted for appearing in the examination.
30.4.7 An entry will be made in the service record on passing the prescribed
Hindi Examination.
30.4.8 Cash awards and Lump-sum awards and Lump-sum awards granted on
passing the Hindi Examinations are income tax-free.
30.5 GRANT OF PERSONAL PAY ON PASSING THE EXAMINATIONS:
30.5.1 Personal pay equal in amount to one increment for a period of 12

months at the current rate of increment will be granted to the employees
on passing the following examinations of the Hindi Teaching Scheme:
(a) Pragya Examination:
The personal pay for passing the Pragya examination shall be granted
only to those Govt. officers/employees (gazetted and non-gazetted) for
whom that course has been prescribed as the final course of study.
(b) Praveen Examination:
The personal pay shall be granted only to those officers/employees for
whom the Praveen course has been prescribed as a final course of study.
(i) To the non-gazetted employees on passing the Praveen Examination with
55% or more marks;
(ii) To the gazetted officers on passing the Praveen Examination with 60% or
more marks.
(c) Prabodh Examination:
The personal pay shall be granted only to those non-gazetted Govt.
employees for whom Prabodh course has been prescribed as a final
course of study and who pass this examination with 55% or more marks.
The gazetted officers will not be granted personal pay on passing the
Prabodh Examination.
195
(d) Hindi Stenography/Typewriting Examination:
Employees whose mother tongue is not Hindi will be granted personal pay
equal in amount to two increments, on passing the Hindi Stenography
Examination/Typing Examination for a period of first twelve months and
amount equal to one increment for the subsequent twelve months. The
amount of increment for the purpose of calculating personal pay will be
equal to the current rate of increment.
EXAMPLE:
(i) An employee whose rate of increment at the time of grant of the personal
pay is, say ` 100/-, will be granted an increment of ` 100/- for a period of
twelve months.
However, if after a lapse of, say four months (during which he/she has
drawn personal pay equal to ` 100/- per month) his rate of increment
increases from ` 100/- to say ` 150/-, he/she will draw a personal pay
equal to ` 150/- per month i.e. the current rate of increment for the
remaining period (i.e. for the remaining eight months).
(ii) In case of employees covered under clause 30.5.1 above, personal pay
equal to two increments, for a period of first twelve months and one
increment for subsequent twelve months will be granted in accordance
with the guidelines indicated in (i) above.
(iii) If an employee drawing personal pay as provided in 30.5.1 and 30.5.2,
gets promoted to the next higher scale of pay he will draw for the
remaining period of 12 months/24 months, as the case may be, at his
current rate of increment i.e. in his new scale of pay as indicated in para
(i) and (ii) above.
30.5.2 An employee to whom personal pay has been granted under this incentive
scheme may, if he so desires, forego the same from a day of his/her
choice without assigning any reason therefor. For this purpose he/she will
have to inform in writing the authority who granted him/her personal pay
under the Hindi Incentive Scheme.
30.5.3 Personal pay will be granted to the concerned employee with effect from
any one of the following dates of his choice:
(a) The first day of the month following the month in which results of the
examinations are announces; or
(b) The date of annual increment which falls due after the announcement of
the results of the examination.
30.5.4 The concerned employee will have to exercise his option in this connection
within a period of three months from the date of declaration of results. If
an employee is on leave or on official tour on the date of declaration of
the result, the period of three months will count from the date on which
he resumes duty after return from leave/tour. The option once exercised
shall be treated as final and no change, what so ever will be allowed.
196
30.5.5 If the employee does not exercise his option within the prescribed period,
no personal pay will be granted to him. In special circumstances, the
management will themselves take a decision for extending the date of
exercising option on the merit of each case.
30.5.6 The concerned employees shall be required to fill-in the prescribed
declaration (Annexure–I) for the grant of personal pay. On the basis of
the particulars furnished in the declaration form, the eligibility for grant of
personal pay shall be decided by the Personnel Department.
30.5.7 In case an employee passes the prescribed Hindi examination and the
Hindi Stenography/Typewriting examination simultaneously or in quick
succession, personal pay will be granted to him separately for each
examination. Personal pay for the second examination will be admissible
after completion of the period of 12 months after the grant of personal
pay for the first examination.
30.5.8 Personal pay granted for passing the examination indicated in para 30.5.1
will be treated as basic pay for all practical purposes i.e. for grant of all
allowances and benefits that accrue to an employee on the basis of the
basic pay.
30.6 ELIGIBILITY FOR GRANT OF PERSONAL PAY:
All employees of MECON, as described in 30.3 of the scheme, shall
become eligible for grant of personal pay, except as provided herein
below:
30.6.1 On Passing the Prescribed Hindi Examination:
(i) An employee will not be eligible, if
(a) He/she has already passed the matriculation or an equivalent or higher
examination conducted by a Board/University or a recognized Private Body
with Hindi as an elective/regular/additional/optional subject or as a
medium of examination.
(b) His/her mother tongue is Hindi and he/she can express himself/ herself
well in written Hindi and he/she declares himself/herself to have acquired
working knowledge of Hindi.
(c) He/she declares himself/herself to possess proficiency in Hindi.
30.6.2 On Passing the Hindi Typewriting Examination:
(a) He/she has already passed a test in Hindi typewriting.
(b) For him/her, training in Hindi is not obligatory (i.e. those Assistants /Sr.
Assistants who are not required to do English typewriting work in office).
(c) Before joining the employment of the company he/she had declared that
he/she had a speed of 25 w.p.m. or more in Hindi typewriting.
(d) He/she has already received Training in Hindi typewriting from an
institution recognized by the Government and has passed a test in Hindi
typewriting therefor.
197
30.6.3 On Passing the Hindi Stenography Examination:
(a) He/she has already passed an examination in Hindi Stenography.
(b) For him/her, training in Hindi Stenography is not obligatory, (i.e.
employee who is not required to do English Stenography work in office).
(c) Before joining the employment of the company he/she had declared that
he/she had a speed of 80 w.p.m. in Hindi Stenography.
30.6.4 Personal pay will be granted only to those employees who pass the
prescribed Hindi, Hindi Stenography, typewriting examination within a
period of 15 months of the completion of the course. In case of
employees who pass the examination as private candidates, the period of
15 months will count from the date of their appearance in the said
examination.
30.6.5 Employees getting training through the arrangements made by MECON

shall be deemed to have passed the examinations as private candidates.
30.7 GRANT OF LUMP-SUM AWARD ON PASSING THE HINDI, HINDI
STENOGRAPHY AND HINDI TYPEWRITING EXAMINATION:
30.7.1 Lump-sum awards will be granted to the employees on passing the

following Hindi, Hindi Stenography and Hindi Typewriting examinations as
indicated below :
EXAMINATIONS AWARDS
(i) Prabodh examination of the Hindi ` 500/-

Teaching Scheme. (Rupees five hundred only)
(ii) Praveen examination of the Hindi ` 500/-
Teaching Scheme. (Rupees five hundred only)
(iii) Pragya examination of the Hindi Teaching ` 600/-

Scheme (Rupees six hundred only)
(iv) Hindi Typewriting examination of the ` 400/-

Hindi Teaching Scheme. (Rupees four hundred only)
(v) Hindi Stenography examination of the ` 750/-

Hindi Teaching Scheme. (Rupee seven hundred fifty only)
(vi) Such Hindi examinations conducted by ` 600/-

Voluntary Hindi Organizations as have (Rupees six hundred only)
been recognized by the Govt. of India
(Ministry of Education & Social Welfare,
now renamed as Ministry of Human
Resources Development) as equivalent
to, or higher than the Matriculation
examination.
(vii) Hindi Parichay examination of the Central ` 600/-
Hindi Directors. (Rupees six hundred only)
198
30.7.2 The grant of Lump-sum award will be subject to the eligibility conditions
for the grant of personal pay laid down in 30.6 of the Hindi Incentive
Scheme as also the eligibility conditions specified herein below :
(i) An employee will not be eligible for grant of Lump-sum award for passing
Prabodh examination if he/she has already passed the primary (Class V)
or an equivalent or higher examination conducted by a Board or a
University or a Government Agency or a Private Body with Hindi as a
subject (in any form) or through Hindi medium.
(ii) An employee will not be eligible for grant of Lump-sum award for passing
the Hindi Praveen examination, if he/she has already passed the middle
(Class VIII) or an equivalent or a higher examination conducted by a
Board or a University or a Government agency with Hindi as a subject (in
any form) or through Hindi medium.
(iii) For grant of Lump-sum award, the employees will have to pass the Hindi
typing or Hindi Stenography examination within a period of 15
months from the date of their first appearance in the said examination.
30.8 GRANT OF CASH AWARDS ON PASSING HINDI, HINDI
STENOGRAPHY AND HINDI TYPEWRITING EXAMINATIONS:
30.8.1 Employees passing the Hindi, Hindi Stenography, Hindi typewriting

examination with distinction will be granted additional incentive by way of
cash awards as per details given below:
(a) For passing Praveen or Pragya Examination:
With 70% or more marks. ` 600/-

With 60% or more marks ` 400/-
(b) For passing Prabodh Examination:

(c) For passing Hindi Stenography Examination:

(d) For passing Hindi Typing Examination:

199
30.9 GRANT OF INCENTIVE TO EMPLOYEES FOR DOING THEIR
OFFICIAL WORK ENTIRELY/PARTLY IN HINDI:
30.9.1 Incentive equivalent to one increment per month will be granted to the
employees who do their entire official work or part of their official work in
Hindi as provided herein below:
The following will be eligible for grant of incentive under this scheme:
(a) Employees who write/type on an average 3 notes/letters, in Hindi in a day
or minimum 180 notes/letters in Hindi in a quarter. Notes having 25
words or more only will be counted.
(b) Employees who do 30% or more of their official work in Hindi. This will
apply to employees not covered under (a) above.
30.9.2 Employee, who claims for incentive, will have to produce a certificate to
prove that he/she was doing his entire work/part of the work in Hindi. This
certificate, in the given proforma (Annexure–II) will be required to be
given by his/her controlling officer.
30.9.3 The employee will be granted incentive equal to one increment only after
he/she has submitted to Hindi Cell the certificate for three consecutive
months regarding his working in Hindi and achieving the target of Hindi
work as specified in para 30.9.1 (a) and 30.9.1 (b) above. HRA, CCA or
any other allowance will not be admissible on that amount.
30.9.4 The incentive allowance will be granted with effect from the first day of
the month in which the employee starts working in Hindi and achieves the
specified target.
30.9.5 The employee will continue to get the incentive allowance equivalent to
one increment (at the current rate of increment) so long as he/she
continues to work in Hindi subject to his/her continually achieving the
specified target.
30.10 CLARIFICATIONS:
30.10.1 Employees who pass an examination higher than Pragya will not be
granted lump sum awards therefor.
30.10.2 Lump-sum award will be granted in addition to the Personal pay and the
cash award to which an employee may be eligible in accordance with the
provisions of this scheme for passing Hindi, Hindi Typing and Hindi
Stenography Examination.
30.10.3 Employees not having working knowledge of Hindi and preparing for the
recognized examinations of the Voluntary Hindi Organizations or the
Parichaya examination of the Central Hindi Directorate will also be given
the facility of free text books.
30.10.4 Employees preparing privately for the examinations will be entitled to the
lump-sum award on passing the examination.
30.10.5 Admissible conveyance charges and the fees paid by them to the
institutions will be reimbursable.
200
30.10.6 Employees not having working knowledge of Hindi but posted to Hindi Cell
will be eligible to grant of personal pay, lump-sum award and cash award
as provided in this scheme for passing relevant examinations.
30.10.7 English stenographers/typists posted to Hindi Cell will be eligible for the
incentives on passing the Hindi Stenography/Typing examination as
provided for in the scheme.
30.10.8 Employees posted to Hindi Cell will not be eligible for grant of incentives
for doing their office work in Hindi.
30.10.9 Pragya shall be final prescribed examination for all employees of the
company and incentive in the form of personal pay will only be granted to
employees passing the Pragya or recognized equivalent Hindi
examination.
30.10.10 The benefit of personal pay for passing the Hindi/Hindi Stenography/Hindi
typewriting examination, will cease when the benefit of incentive under
the scheme, as provided in the 30.9 of the Hindi Incentive Scheme, is
granted.
30.10.11 In case of stenographers whose mother tongue is not Hindi and to whom
two increments have been granted for passing the Hindi stenography
examination, the benefit of personal pay equivalent to two increments will
get reduced to one increment from the date the incentive allowance under
30.9 is granted, and will cease after the lapse of a period of 12 months
from the date from which the personal pay under 5.2 of the scheme is
granted.
30.11 ANNUAL AWARDS FOR HINDI NOTING/DRAFTING AND HINDI
TYPING:
30.11.1 Employees expected to do typing and noting/drafting in official work will
be eligible to participate in this competition.
30.11.2 Employees posted to Hindi Cell and the staff posted in other
sections/departments for doing Hindi work will not be eligible for these
awards.
30.11.3 Employees who write or type 10,000 (Ten thousand) words in a year (1st
January to 31st December) will be eligible to compete for these prizes. The
prizes will be awarded to twenty employees (10 for typing and 10 for
noting/drafting) in the order they stand on the basis of the quantum of
work done by them during the year.
30.11.4 The following cash awards will be given every year depending upon the
quantity of work done in Hindi by the competitors.
For Hindi For Hindi
Noting/Drafting Typing
(i) First prize (2 prizes) ` 500/- each. ` 500/- each.

(ii) Second prize (3 prizes) ` 300/- each. ` 300/- each.
(iii) Third prize (5 prizes) ` 150/- each. ` 150/- each.
201
30.11.5 The employees intending to compete for the prizes will be required to
maintain a daily record of the work done by them in Hindi (i.e. number of
words written or typed by them in Hindi) in the prescribed proforma. Each
week’s record will be verified by the controlling officer.
30.11.6 At the end of the year very competitor will submit the record duly verified
and countersigned by the controlling officer. The record of his/her work
done in Hindi will be sent to the Hindi Cell latest by 15th January every
year.
30.11.7 Hindi Cell will process the entries and arrange them in ascending/
descending order on the basis of the quantum of work and recommend
award of prizes as indicated in 30.11.3 and 30.11.4 above. The prizes will
be awarded with the approval of the Chairman, Official Language
Implementation Committee.
PROFORMA
Statement of the Hindi noting/drafting/typing work done by Shri/

Smt./Kum…………………during the first/second fortnight of the month.
S. Date Total no. Quantum of No. of Signature of

Note/Draft words Controlling Officer
written in (once in a week)
Hindi
1 2 3 4 5 6
202
30.12 WORKING KNOWLEDGE IN HINDI:
An employee may be deemed to have acquired working knowledge of
Hindi, if he/she has passed:
(i) The Matriculation or an equivalent or higher examination with Hindi as
one of the subjects; or
(ii) The Pragya examination conducted under the Hindi Teaching Scheme of
the Central Government, or
(iii) Any other examination specified in that behalf by the Central

Government; or
(iv) If he/she declares himself/herself to have acquired such working
knowledge.
30.12.1 PROFICIENCY IN HINDI:
An employee may be deemed to possess proficiency in Hindi, if:
(i) He/she has passed the Matriculation or any equivalent, or higher
examination with Hindi as the medium of examination; or
(ii) He/she has taken Hindi as an elective subject in the degree examination
or any other examination equivalent to, or higher than the degree
examination; or
(iii) He/she declares himself/herself to possess proficiency in Hindi.
203
Annexure – I
Proforma for consideration for the grant of Personal pay/Lump sum
Award/Cash Award for passing the Prabodh/Praveen/Pragya/Hindi
Typewriting/Hindi Stenography Examinations and the Examination
conducted after the Intensive Training Course.
1. Name of the Employee in full

(in Block Letters).
2. Designation
(a) Executive/Non-Executives
(b) Whether declare “operational”.
3. Full address of the office.
4. Name of the Directorate/Section
5. Date of Birth
6. Mother Tongue
7. Is training in Hindi Typewriting or Hindi Stenography

obligatory for you?
8. (a) Name of the Examination passed for which this

claim has been made.
(b) Date of declaration of the result
(c) Year and month of the Examination.
(d) Marks obtained
(e) Percentage of the marks obtained
9. (a) How did you pass the above exam?
(i) By private study only.

(ii) By attending classes under the Hindi Teaching
Scheme.
(iii) By attending the training classes Conducted by
MECON.
Note: Training in Hindi typewriting is obligatory for all Assistant (T)/ Typists appointed for
doing English typing work and Assistants/ Sr. Assistants who are required to do English
Typing. Training in Hindi Stenography is obligatory for all English Stenographers/PAs/ PSs
and EPSs)
204
(b) Indicate the period when you received training of
the said course in the classes conducted by:
(i) Hindi Teaching Scheme of the Central

Government, or
(ii) MECON.
(c) State whether you have received training in Hindi

Stenography/ typing earlier also. If yes, please
give details.
10. Have you appeared in the same Examination

earlier also. If yes, when and with what results?
11. If you have passed any other examination of the

Hindi Teaching Scheme, please give details?
Please give details of other incentives, you have
received under the Hindi Incentive Scheme.
12. (i) Whether passed Matriculation or an equivalent or higher examination

conducted by a Board/University etc. with Hindi as a subject in any form
or part of Higher Secondary examination viz. class IX or X? If yes, please
give details and indicate percentage of marks obtained in Hindi subject.
(ii) Was Hindi a medium of any of the above examination?
(iii) Whether passed the middle or primary standard examination with Hindi
as a subject or with Hindi as a medium of examination?
(iv) If you have passed any other Hindi Examination conducted by a

Government Agency or by a private body, please give details?
13. (a) Whether you had stated before joining the employment of the MECON
that -
(i) You knew Hindi Typing i.e. you had a speed of 25 w.p.m. or more in Hindi
typing?
(ii) You knew Hindi Stenography i.e. you had a speed of 80 w.p.m. or more
in Hindi Stenography?
(b) Whether before joining MECON you had received training in Hindi
Typewriting or Hindi Stenography from an institution recognized by the
Government or had passed any test therefrom? If so, please give details.
DECLARATION
The particulars given by me are true to the best of my knowledge and belief. I
undertake to refund the personal pay/award paid to me in case any of the above
information is found to be false or inaccurate. I also understand that disciplinary
action may be taken against me for attempting to receive personal pay/award
by making an inaccurate statement of facts.
Signature
Note: Employees interested in claiming the incentive allowance/award must

submit this proforma, duly filled in within three months of the declaration
of the result.
205
Annexure – II
DECLARATION FORM
Form for the grant of Hindi Incentive to employees (Executive and Non-
Executive both) for doing their official work entirely/partly in Hindi.
1. Name of the applicant
2. Designation
3. Department/Section
4. Name & Designation of

Controlling Officer
5. Period in which official work done

in Hindi
Certified that Shri/Smt./Kum. ___________has actually typed/ written

______notes/drafts letters during the above mentioned period. The number of
working days in the month of ______, 200__ was ________. Therefore, on an
average he/she has typed/written____ notes/drafts/letters per working day.
Certified that Shri/Smt./Kum _______ has actually done more than 30% of
his/her total work in Hindi during _______ (month & year). Proper record has
been maintained in the register kept for this purpose.
(Signature of the Applicant) (Signature of the Controlling Officer)
DECLARATION
The particulars given by me are true to the best of my knowledge and belief. I
undertake to refund the incentive Pay, paid to me, in case any of the above
information is found to be false or inaccurate. I also undertake that disciplinary
action may be taken against me for attempting to receive incentive by making
an inaccurate statement of facts.
Signature
206
CONSTITUTIONAL PROVISION
(PART – XVII)
LANGUAGE OF THE UNION +

343. (i) The Official Language of the Union shall be Hindi in Devanagari script. The
form of numerals to be used for the official purposes of the Union shall be
the international form of Indian numerals.
(ii) Notwithstanding anything in clause (1), for a period of fifteen years from
the commencement of this Constitution, the English language shall
continue to be used for all the purposes of the Union for which it was
being used immediately before such commencement:
Provided that the President may, during the said period, by order
authorize the use of the Hindi language in addition to the English
language and of the Devanagari form of numerals in addition to the
international form of Indian numerals for any of the official purposes of
the Union.
(iii) Notwithstanding anything in this article, Parliament may by law provide
for the use, after the said period of fifteen years, of –
(a) The English Language, or
(b) The Devanagari form of numerals, for such purposes as may be specified
in the law.
COMMISSION AND COMMITTEE OF PARLIAMENT ON OFFICIAL

LANGUAGE:
344. (i) The President shall, at the expiration of five years from the
commencement of this Constitution and thereafter at the expiration of ten
years from such commencement, by order constitute Commission which
shall consist of a Chairman and such other members representing the
different languages specified in the Eighth Schedule, as the President may
appoint, and the order shall define the procedure to be followed by the
Commission.
(ii) It shall be the duty of the Commission to make recommendations to the

President as to –
(a) The progressive use of the Hindi language for the official purposes of the
Union;
(b) Restriction on the use of the English language for all or any of the official
purposes of the Union.
(c) The language to be used for all or any of the purposes mentioned in
article 348;
* The provisions of this part shall apply to the State of Jammu & Kashmir only in so far as
they relate to:
(i) The Official Language of the Union,
(ii) The Official Language for communication between one State and another or between a
State and the Union; and
(iii) The language of the proceedings in the Supreme Court.
+ Constitution of India – part XVII.
207
(d) The form of numerals used for any one or more specified purposes of the
Union.
(e) Any other matter referred to the Commission by the President as regards
the official language of the Union and the language for communication
between the Union and a State or between the State and another and
their use.
(iii) In making their recommendations under clause (ii), the Commission shall
have due regard to the industrial, cultural and scientific advancement of
India, and the just claims and the interests of persons belonging to the
Non-Hindi speaking areas in regard to the public services.
(iv) There shall be constituted a Committee consisting of thirty members, of
whom twenty shall be members of the House of the people and ten shall
be members of the Council of States to be elected respectively by the
members of the House of the People and the members of the Council of
States in accordance with the system of proportional representation by
means of the single transferable vote.
(v) It shall be the duty of the Committee to examine the recommendations of
the Commission constituted under clause (i) and to report to the President
their opinion thereon.
(vi) Notwithstanding anything in article 343, the President may, after
consideration of the report referred to in clause (v), issue directions in
accordance with the whole or any part of that report.
REGIONAL LANGUAGES
OFFICIAL LANGUAGE OR LANGUAGES OF A STATE
345. Subject to the provisions of articles 346 and 347, the Legislature of a
State may by law adopt any one or more of the languages in use in the
State or Hindi as the language or languages to be used for all or any of
the official purposes of that State;
Provided that, until the Legislature of the States otherwise provides by
law, the English language shall continue to be used for those official
purposes within the State for which it was being used immediately before
the commencement of this Constitution.
OFFICIAL LANGUAGE FOR COMMUNICATION BETWEEN ONE STATE
AND ANOTHER OR BETWEEN A STATE AND THE UNION.
346. The language for the time being authorized for use in the Union for official
purposes shall be the Official Language for communication between one
State and another State and between a State and the Union;
Provided that if two or more States agree that the Hindi language should
be the Official Language for communication between such States, that
language may be used for such communication.
208
SPECIAL PROVISION RELATING TO LANGUAGE SPOKEN BY A
SECTION OF THE POPULATION OF A STATE.
347. On a demand being made in that behalf, the President may, if he is
satisfied that a substantial proportion of the population of a State desires
the use of any language spoken by them to be recognized by that State,
direct that such language shall also be officially recognized throughout
that State or any part thereof for such purpose, as he may specify.
LANGUAGE OF THE SUPREME COURT, HIGH COURTS ETC.
LANGUAGE TO BE USED IN THE SUPREME COURT AND IN THE
HIGH COURTS AND FOR ACTS, BILLS, ETC.
348. (1) Notwithstanding anything in foregoing provisions of this part, until
Parliament by law otherwise provides –
(a) All proceedings in the Supreme Court and in every High Court,
(b) The authoritative texts –
(i) Of all Bills to be introduced or amendments thereto be moved in either
House or Parliament or in the House or either House of the Legislature of
a State,
(ii) Of all Acts passed by Parliament or the Legislature of a State and of all
Ordinances promulgated by the President or the Governor*** of a state,
and
(iii) Of all orders, rules, regulations and bye-laws issued under this
Constitution, or under any law made by Parliament or the Legislature of a
State, shall be in the English language.
(2) Notwithstanding anything in sub-clause (a) of the clause (1), the
Governor* of a State may, with the previous consent of the President,
authorize the use of the Hindi language, or any other language used for
any official purposes of the State, in proceedings in the High Court having
its principal seat in that State :
Provided that nothing in this clause shall apply to any judgement, decree
or order passed or made by such High Court.
(3) Notwithstanding anything in sub-clause (b) of clause (1), where the
Legislature of a State has prescribed any language other than the English
language for use in Bills introduced in, or Acts passed by the Legislature.
*** The words “or Rajpramukh” omitted by the Constitution (Seventh Amendment) Act,
1956, S.29 and Sch. of the States or in Ordinances promulgated by the Governor*** of
the State or in any order, rule, regulation or bye-law referred to in paragraph (iii) of that
sub-clause, a translation of the same in the English language published under authority of
the Governor*** of the State in the Official Gazette of that State shall be deemed to be
the authoritative text thereof in the English language under this article.
209
SPECIAL PROCEDURE FOR ENACTMENT OF CERTAIN LAWS
RELATING TO LANGUAGE.
349. During the period of fifteen years from the commencement of this
Constitution, no bill or amendment making provision for the language to
be used for any of the purposes mentioned in Clause (1) of article 348
shall be introduced or moved in either House of Parliament without the
previous sanction of the President, and the President shall not give his
sanction to the introduction of any such Bill or the moving of any such
amendment except after he has taken into consideration the
recommendations of the Commission constituted under Clause (1) of
article 344 and the report of the Committee constituted under clause (4)
of that article.
SPECIAL DIRECTIVES
DIRECTIVE FOR DEVELOPMENT OF THE HINDI LANGUAGE
350. It shall be the duty of the Union to promote the spread of the Hindi
language, to develop it so that it may serve as a medium of expression
for all the elements of the composite culture of India and to secure its
enrichment by assimilating without interfering with its genius, the forms,
style and expressions used in Hindustani and in other languages of India
specified in the Eighth Schedule, and by drawing, wherever necessary or
desirable, for its vocabulary, primarily on Sanskrit and secondarily on
other languages.
SCHEDULE VIII
[Art. 344 (1) & 351]
LANGUAGES
1. Assamese 2. Oriya 3. Urdu

4. Kannada 5. Kashmiri 6. Gujrati
7. Tamil 8. Telugu 9. Punjabi
10. Bengali 11. Marathi 12. Malayam
13. Sanskrit 14. Sindhi 15. Hindi
16. Manipuri 17. Nepali 18. Konkani
210
THE OFFICIAL LANGUAGES ACT, 1963
(Act No. 19 of 1963)
(10th May, 1963)
1. An act to provide for the languages which may be used for the official
purposes of the Union, for transaction of business in Parliament, for
Central and State Acts and for certain purposes in High Courts.
Be it enacted by Parliament in the fourteenth year of the Republic of India
as follows:
i) This act may be called the Official Languages Act 1963.
ii) Section 3 shall come into force on the 26th January, 1965 and the
remaining provisions of this Act shall come into force on such date as the
Central Government may, by notification in the Official Gazette, appoint
and different dates may be appointed for different provisions of this Act.
Definitions
2. In this Act, unless the context otherwise requires -
(a) “Appointed day”, in relation to section 3, means the 26th day of January,
1965 and in relation to any other provision of this Act, means the day on
which the day on which that provision comes into force;
(b) “Hindi” means Hindi in Devanagari Script.
S.5 (1) comes into force on the 10th January 1965 vide Notification No. S.0.94,
dated the 4th January 1965, Gazette of India, Pt. II, Sec.3 (ii), p. 128.S.6
comes into force on the 19th May 1969, vide Notification No.S.0.1945,
dated the 14th May, 1969, Gazette of India, Pt. II, Sec.3 (ii) p. 2024.S.7
comes into force on the 7th March 1970, vide Notification No.S.0.841,
dated 26th February, 1970 Gazette of India, Pt. II, Sec.3 (ii).
S.5 (2) comes into force on the 1st October 1976, vide Notification No. S.0.655
(E) dated the 5th October 1976, Gazette of India, Pt. II, Sec (ii), P. 1901.
3. 1. Continuance of English Language for official purposes of the Union

and for use in Parliament – (I)
Notwithstanding the expiration of the period of fifteen years from the
commencement of the constitution, the English language may, as from
the appointed day, continue to be used in addition to Hindi -
(i) For all the official purposes of the Union for which it was being used
immediately before that day, and
(ii) For the transaction of business in Parliament.
Provided that the English language shall be used for purposes of
communication between the Union and a State which has not adopted
Hindi its official language:
211
Provided further that where Hindi is used for purposes of communication
between one State which has adopted Hindi as its official language from
using Hindi for purposes of communication with the Union or with a State
which has adopted Hindi as its official language, or by agreement with any
other State, and in such a case, it shall not be obligatory to use the
English language for purpose of communication with that State.
2. Notwithstanding anything contained in subsection (1), where Hindi or the

English language is used for purposes of communication -
(i) Between one Ministry or Department or office of the Central Government
and another;
(ii) Between one Ministry or Department or office of the Central Government
and any corporation or company owned or controlled by the Central
Government or any office thereof:
(iii) Between any corporation or company owned or controlled by the Central
Government or any office thereof and another;
A translation of such communication in the English language or, as the
case may be, in Hindi shall also be provided till such date as the staff of
the concerned Ministry, Department, office or corporation or company
aforesaid have acquired a working knowledge of Hindi.
3. Notwithstanding anything contained in subsection (1) both Hindi and the
English language shall be used for -
(i) Resolutions, general orders, rules, notifications, administrative or other
reports or press communiqués issued or made by the Central Government
or by a Ministry, Department or office thereof or by a corporation or
company owned or controlled by the Central Government or by any office
of such corporation or company.
(ii) Administrative and other reports and official papers laid before a House or
the Houses of Parliament.
(iii) Contracts and agreements executed, and licences, permits, notices and
forms of tenders issued, by or on behalf of the Central Government or any
Ministry, Department or office thereof or by a corporation or company
owned or controlled by the Central Government or by any office of such
corporation or company.
4. Without prejudice to the provisions of sub-section (1) or sub-section (2)
or sub-section (3) the Central Government may, by rules made under
section 8, provide for the language or languages to be used for the official
purpose of the Union, including the working of any Ministry, Department,
section or office, and in making such rules, due consideration shall be
given to the quick and efficient disposal of the official business and the
interest of the general public and in particular, the rules so made shall
ensure that persons serving in connection with the affairs of the Union
and having proficiency either in Hindi or in the English language may
function effectively and that they are not placed at a disadvantage on the
ground that they do not have proficiency in both the languages.
5. The provisions of clause (a) of sub-section (1), and the provisions of sub-
section (2), sub-section (3) and sub-section (4) shall remain in force until
resolutions for the discontinuance of the use of the English language for
212
the purposes mentioned therein have been passed by the Legislatures of
all the States which have not adopted Hindi as their official language and
until after considering the resolution aforesaid, a resolution for such
discontinuance has been passed by each house of Parliament.
4. Committee on Official Language.
i) After the expiration of ten years from the date on which section 3 comes
into force, there shall be constituted a Committee on Official Language,
on a resolution to that effect being moved in either House of Parliament
with the previous sanction of the President and passed by both Houses.
ii) The Committee shall consist of thirty members, of whom twenty shall be
members of the House of the People and ten shall be the members of the
Council of States, to be elected respectively by the members of the House
of the people and the members of the Council of States in accordance
with the system of proportional representation by means of the single
transferable vote.
iii) It shall be the duty of the Committee to review the progress made in the
use of Hindi for the official purpose of the Union and submit a report to
the President making recommendations thereon and the President shall
cause the report to be laid before each House of Parliament, and sent to
all the State Governments.
iv) The President may, after consideration of the report referred to in sub-
section (3), and the views, if any, expressed by the State Government
thereon, issue directions in accordance with the whole or any part of that
report:
[Provided that the directions so issued shall not be inconsistent with the
provisions of section 3].
5. Authorized Hindi translation of Central Acts, etc.
(i) A translation in Hindi published under the authority of the President in the
Official Gazette on and after the appointed day –
(a) Of any Central Act or of any Ordinance promulgated by the President, or
(b) Of any order, rule, regulation or bye-law issued under the constitution or
under any Central Act shall be deemed to be the authoritative text thereof
in Hindi.
(ii) As from the appointed day, the authoritative text in the English language
of all Bills to be introduced on amendments thereto to be moved in either
House of Parliament shall be accompanied by a translation of the same in
Hindi authorized in such manner as may be prescribed by rules made
under this Act.
213
6. Authorized Hindi translation of State Acts in certain cases.
Where the Legislature of a State has prescribed any language other than
Hindi for use in Acts passed by the Legislature of the States or in
Ordinances promulgated by the Governor of the State, a translation of the
same in Hindi, in addition to a translation thereof in the English language
required by clause (3) of article 348 of the Constitution, may be published
on or after the appointed day under the authority of the Governor of the
State in the Official Gazette of that State and in such a case, the
translation in Hindi or any such Act or Ordinance shall be deemed to be
the authoritative text thereof in the Hindi language.
7. Optional use of Hindi or other official language in judgements etc.,

of High Courts.
As from the appointed day or any day thereafter the Governor of a State
may, with the previous consent of the President, authorize the use of
Hindi or the official language of the State, in addition to the English
language, for the purposes of any judgement, decree or order passed or
made by the High Court for that State and where any judgement, decree
or order is passed or made in any such language (other than the English
language), it shall be accompanied by a translation of the same in the
English language issued under the authority of the High Court.
8. Power to make rules.
(i) The Central Government may, by notification in the Official Gazette, make
rules for carrying out the purposes of this Act.
(ii) Every rule made under this section shall be laid, as soon as may be after
it is made, before each House of Parliament while it is in session for a
total period of 30 days which may be comprised in one session or in two
successive sessions, and if before the expiry of the session in which it is
so laid or the sessions, immediately following, both Houses agree in
making any modification in the rule or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be, so however that any
such modification or annulment shall be without prejudice to the validity
of anything previously done under that rule.
9. Certain provisions not to apply to Jammu & Kashmir.
The provisions of section 6 and section 7 shall not apply to the State of
Jammu & Kashmir.
214
THE OFFICIAL LANGUAGE RESOLUTION, 1968
MINISTRY OF HOME AFFAIRS
New Delhi, the 18th January 1968.
RESOLUTION
No. F.5/8/ 65 – OL – The following Government Resolution, as adopted

by both Houses of Parliament, is hereby published for general
information:
RESOLUTION
1. “WHEREAS as under article 343 of the Constitution Hindi shall be the
official language of the Union, and under article 351 thereof it is the duty
of the Union to promote the spread of the Hindi Language and to develop
it so that it may serve as a medium of expression for all the elements of
the composite culture of India.
This House resolves that a more intensive and comprehensive programme
shall be prepared and implemented by the Government of India for
accelerating the spread and development of Hindi, and its progressive use
for the various official purposes of the Union and an annual assessment
report giving details of the measures taken and the progress achieved
shall be laid on the Table of both Houses of Parliament and sent to all
State Governments:
2. WHEREAS the Eighth Schedule to the Constitution specifies 14 major
languages of India besides Hindi, and it is necessary in the interest of the
educational and cultural advancement of the country that concerted
measures should be taken for the full development of these languages:
The House resolves that a programme shall be prepared and implemented

by the Government of India, in collaboration with the State Governments
for the coordinated development of all these languages, alongside Hindi
so that they grow rapidly in richness and become effective means of
communicating modern knowledge.
3. WHEREAS it is necessary for promoting the sense of unity and facilitating
communication between people in different parts of the country that
effective steps should be taken for implementing fully in all States the
three-language formula evolved by the Government of India in
consultation with the State Governments.
This House resolves that arrangements should be made in accordance
with the formula for the study of a modern Indian language, preferably
one of the Southern languages, apart from Hindi and English in the Hindi
speaking areas and of Hindi alongwith the regional languages and English
in the non-Hindi speaking areas.
4. AND, WHEREAS it is necessary to ensure that the just claims and interest
of people belonging to different parts of the country in regard to the
public services of the Union are fully safeguard;
215
This House resolves –
(a) That compulsory knowledge of either Hindi or English shall be required at
the stage of selection of candidates for recruitment to the Union services
or posts except in respect of any special services or post for which a high
standard of knowledge of English alone or Hindi alone, or both as the case
may be, is considered essential for the satisfactory performance of the
duties of any such service or post; and
(b) That all the languages included in the Eight Schedule to the Constitution
and English shall be permitted as alternative media for the All India and
higher Central Services examination after ascertaining the views of the
Union Public Service Commission on the future scheme of the
examination, the procedural aspects and the timing”.
Sd/-
RD THAPAR
Joint Secretary to the Government of India.
216
THE OFFICIAL LANGUAGES
(USE FOR OFFICIAL PURPOSES OF THE UNION)
RULES, 1976.
G.S.R. 1052 – In exercise of the powers conferred by section 8, read
with sub-section (4) of section (3) of the Official Language Act, 1963 (19
of 1963), the Central Government hereby makes the following rules,
namely –
1. Short title, extent and commencement:
(i) These rules may be called the Official Language (Use for official purposes
of the Union) Rules, 1976.
(ii) They shall extend to the whole of India, except the State of Tamil Nadu.
(iii) They shall come into force on the date of their publication in the Official
Gazette.
2. Definitions:
In these rules, unless the context otherwise requires –
(a) ‘Act’ means the Official Language Act, 1963 (19 of 1963);
(b) ‘Central Government Office’ includes –
(i) Any Ministry, Department or office of the Central Government;
(ii) Any office of a Commission, Committee or Tribunal appointed by the
Central Government; and
(iii) Any office of a corporation or company owned or controlled by the Central
Government;
(c) ‘Employee’ means any person employed in a Central Government office;
(d) ‘Notified office’ means an office notified under sub-rule (4) of rule 10;
(e) ‘Proficiency in Hindi’ means proficiency in Hindi as described in rule 9;
(f) ‘Region A’ means the States of Bihar, Haryana, Himachal Pradesh,
Madhya Pradesh, Rajasthan and Uttar Pradesh and the Union Territories
of Delhi and Andaman and Nicobar Islands.
(g) ‘Region B’ means the States of Gujarat, Maharashtra and Punjab and the
Union Territory of Chandigarh;
(h) ‘Region C’ means the States and the Union territories other than those
referred to in clause (f) and (g).
(i) ‘Working Knowledge of Hindi’ means working knowledge of Hindi as
described in rule 10.
217
3. Communications to States etc. other than the Central Government
offices -
(i) Communications from a Central Government office to a State or a Union

territory in Region A or to any office (not being a Central Government
office) or person is such State or Union territory shall, save in exceptional
cases, be in Hindi, and if any communication is issued to any of them in
English it shall be accompanied by a Hindi translation thereof.
(ii) Communications from a Central Government office -
(a) To a State or Union territory in Region B or to any office (not being a
Central Government office) in such State or Union territory shall ordinarily
be in Hindi and if any communication is issued to any of them in English,
it shall be accompanied by a Hindi translation thereof:
Provided that if any such State or Union territory desires the
communications to any particular class, or category or those intended for
any of its offices, to be sent, for a period specified by the Government of
the State or Union territory concerned, in English or in Hindi with a
translation in other language, such communication shall be sent in that
manner;
(b) To any person in a State or Union territory of Region B may be either in
Hindi or English.
(iii) Communications from a Central Government office to a State or Union
territory in Region C or to any office (not being a Central Government
office) or person in such State shall be in English.
(iv) Notwithstanding anything contained in sub-rules (1) and (2),
communications from a Central Government office in Region C to State or
Union territory of Region A or Region B or to any office (not being a
Central Government office) or person in such State may be either in Hindi
or in English.
4. Communications between Central Government Offices:
(a) Between one Ministry or Department of the Central Government and
another may be in Hindi or in English.
(b) Between one Ministry or Department of the Central Government and
attached or subordinate offices situated in Region A, shall be in Hindi and
in such proportion as the Central Government may, having regard to the
number of persons having a working knowledge of Hindi in such offices,
the facilities for sending communication in Hindi and matters incidental
thereto, determine from time to time;
(c) Between Central Government offices situated in Region A, other than
those specified in clause (a) or clause (b) shall be in Hindi.
(d) By Central Government offices situated in Region A, Region B or Region C
may be in Hindi or in English.
(e) Between Central Government offices situated in Region B or Region C may
be in Hindi or English.
Provided that a translation of such communication in the other language
shall –
218
(i) Where that communication is addressed to an office in Region A or Region
B, be provided, if necessary, at the receiving end.
(ii) Where the communication is addressed to an office in Region C, be
provided, alongwith such communication.
Provided further that no such translation in the other language shall be
required to be provided if the communication is addressed to a notified
office –
5. Replies to communication received in Hindi -
Notwithstanding anything contained in rule 3 and 4, communications from
a Central Government office in reply to communications in Hindi shall be
in Hindi.
6. Use of both Hindi and English -
Both Hindi and English shall be used for all documents referred to sub-
section (3) of section 3 of the Act and it shall be the responsibility of the
persons signing such documents to ensure that such documents are
made, executed or issued both in Hindi and in English.
7. Applications, representatives etc. -
(i) An employee may submit an application, appeal or representation in Hindi

or in English.
(ii) Any application, appeal or representation referred to in sub-rule (1) when
made or signed in Hindi, shall be replied to in Hindi.
(iii) Where an employee desires any order or notice relating to service matters
(including disciplinary proceedings) required to be served on him to be in
Hindi, or, as the case may be, in English, it shall be given to him in that
language without undue delay.
8. Noting in Central Government offices -
(i) An employee may record a note or minute on a file in Hindi or in English

without being himself required to furnish a translation thereof in the other
language.
(ii) No Central Government employee possessing a working knowledge of
Hindi may ask for an English translation of any document in Hindi except
in the case of documents of legal and technical nature.
(iii) If any question arises as to whether a particular document is of a legal or
technical nature, it shall be decided by the Head of the Department or
office.
(iv) Notwithstanding anything contained in sub-rule (1), the Central
Government may, by order specify the notified offices where Hindi alone
shall be used for nothing, drafting and for such other official purposes as
may be specified in the order by employees who possess proficiency in
Hindi.
219
9. Proficiency in Hindi -
An employee shall be deemed to possess proficiency in Hindi if –

(a) He has passed the Matriculation or any equivalent or higher examination
with Hindi as the medium of examination; or
(b) He has taken Hindi as an elective subject in the degree examination or
any other examination equivalent to or higher than the degree
examination; or
(c) He declares himself to possess proficiency in Hindi in the form annexed to
these rules.
10. Working Knowledge of Hindi
(1) An employee shall be deemed to have acquired a working knowledge of
Hindi –
(a) If he had passed –
(i) the Matriculation or an equivalent or higher examination with Hindi as one

of the subjects; or
(ii) the Pragya examination conducted under the Hindi Teaching Scheme of
the Central Government or when so specified by that Government in
respect of any particular category of any lower examination under that
Scheme ; or
(iii) any other examination specified in that behalf by the Central
Government; or
(b) If he declares himself to have acquired such knowledge in the form

annexed to these rules.
(2) The Staff of a Central Government office shall ordinarily be deemed to
have acquired a working knowledge of Hindi if eighty per cent of the staff
working therein have acquired such knowledge.
(3) The Central Government or any officer specified in this behalf by the
Central Government may determine whether the staff of a Central
Government office has acquired a working knowledge of Hindi.
(4) The names of the Central Government offices, the staff whereof have
acquired a working knowledge of Hindi, shall be notified in the Official
Gazette:
Provided that the Central Government may, if it is of opinion that the
percentage of the staff working in a notified office and having a working
knowledge of Hindi has gone below the percentage specified in sub-rule
(2) from any date, it may, by notification in the Official Gazette declares
that the said offices shall cease to be a notified office from that date.
220
11. Manuals, Codes, other procedural literature, articles of Stationery,
etc. -
(i) All manuals, codes and other procedural literature relating to Central
Government offices shall be printed or cyclostyled, as the case may be,
and published both in Hindi and English in diglot form.
(ii) The forms and headings of registers used in any Central Government
office shall be in Hindi and in English.
(iii) All name-plates, sign boards, letterheads and inscriptions on envelops and
other items or stationery written, printed or inscribed for use in any
Central Government office shall be in Hindi and in English.
Provided that the Central Government may, if it is considered necessary

to do so by general or special, order exempt any Central Government
office from all or any of the provisions of this rule.
12. Responsibility for compliance –

(1) It shall be the responsibility of the administrative head of each Central
Government office –
(i) to ensure that the provisions of the Act and these rules* and the
directions issued under sub-rule (2) are properly complied with; and*
(ii) to devise suitable and effective check points for this purpose.
(2) The Central Government may from time to time issued such directions to
its employees and officers as may be necessary for the due compliance of
the provisions of the Act and these rules.
FORM
(SEE RULES 9 AND 10)
I hereby declare that I possess proficiency in Hindi/have acquired a working

knowledge of Hindi in view of the following:
Date: Signature
221
POSITION OF OFFICIAL LANGUAGE IN THE CONSTITUTION,
OFFICIAL LANGUAGE POLICY, OFFICIAL LANGUAGE ACT,
OFFICIAL LANGUAGE RESOLUTION AND OFFICIAL LANGUAGE RULES
S. NO. 173 O. M. NO. 1/14034/10/87 – O. L. (A-1) DT. 09.10.1987
NOTIFICATION
G.S.R 790 – In exercise of the powers conferred by section 8, read with
sub-clause (4) of section (3) of the Official Languages Act, 1963 (19 of
1963), the Central Government hereby makes the following rules to
amend the Official Languages (are of the Official purposes of the Union)
Rules, 1976, namely –
1. (i) These rules may be called the Official Languages (Use for the official
purposes of the Union) Amendment Rules, 1987.
(ii) They shall come into force on the date of their application in the Official
Gazette.
2. In the Official Languages (use for the official purposes of the Union)
Rules, 1976 -
(i) In clause (f) of rule (2), for the words “Union territory of Delhi”, the words
“Union territories of Delhi and Andaman and Nicobar Islands” shall be
substituted.
(ii) In clause (g) of rule (2), for the words “Union territories of Andaman and
Nicobar Islands and Chandigarh” “Union territory of Chandigarh” shall be
substituted.
(iii) After sub-rule (4) of rule 3, the following proviso shall be added, namely
Provided that communication in Hindi shall be in such proportion as the
Central Government may, having regard to the number of persons having
working knowledge of Hindi in such offices the facilities for sending
communications in Hindi and matters incidental thereto, determine from
time to time”;
(iv) After clause (d) of rule 4, the following proviso shall be inserted, namely:
“Provided that these communications shall be in Hindi in such proportion
as the Central Government may, having regard to the number of persons
having working knowledge of Hindi in such offices, the facilities for
sending communications in Hindi and matters incidental thereto,
determine from time to time”.
(v) After clause (e) of rule 4, the following proviso shall be inserted, namely-
“Provided that these communications shall be in Hindi in such proportion
as the Central Government may, having regard to the number of persons
having working knowledge of Hindi in such offices, the facilities for
sending communication in Hindi and matters incidental thereto, determine
from time to time”.
(vi) For clause (i) of sub-rule (1) of rule (12), the following shall be
substituted, namely : -
222
“To ensure that the provisions of the Act and these rules and the
directions issue under sub-rule (2) are properly complied with; and”
(The principal rules were notified vide GSR No. 1052 dated 17th July
1976.)
DEFINITIONS
Proficiency in Hindi –
An employee shall be deemed to possess proficiency in Hindi if –
(a) he has passed the Matriculation or any equivalent or higher examination
with Hindi as the medium of examination; or
(b) he has taken Hindi as an elective subject in the degree examination or
any other examination equivalent to or higher than the degree
examination; or
(c) he declares himself to possess proficiency in Hindi.
Working knowledge of Hindi –
An employee shall be deemed to have acquired a working knowledge of
Hindi, if he had passed –
(i) the Matriculation or an equivalent or higher examination with Hindi as one
of the subjects, or
(ii) the Pragya examination conducted under the Hindi Teaching Scheme of
the Central Government or when so specified by that Government in
respect of any particular category of posts, any lower examination under
that Section, or
(iii) any other examination specified in that behalf by the Central Government,
or
(iv) if he declares himself to have acquired such working knowledge.
General orders include –
(i) All orders, decisions or instructions intended for departmental use and
which are of standing nature;
(ii) All orders, instructions, letters, memoranda, notices etc., relating to or
intended for group or groups of Government employees.
(iii) All circulars whether intended for departmental use or for Government
employees.
223
“KARYALAYEEN HINDI DIPLOMA COURSE” FOR
PROMOTION OF USE IN HINDI IN THE OFFICE
1. OBJECTIVES:
To train, motivate and encourage employees use Rajbhasha Hindi to their
Official work.
2. POLICY:
2.1 To ensure progressive use of Hindi in Official work in MECON.
2.2 To encourage employees comply with the Official Language Policy of the
Government through incentive, motivation and training.
3. SCOPE:
3.1 Employees possessing working knowledge in Hindi shall only be eligible
for admission to this course.
3.2 Daily rated staff, Contract Labour, Messengers, security guards, drivers,
tea boys, stewards etc. and operational staff and teachers shall not be
eligible for admission to this course.
3.3 Deputationists in the company’s service or company’s employees on
deputation outside shall not be covered under this scheme.
3.4 Employees posted in Hindi Cell or those appointed for doing Hindi work
and posted to other departments and sections shall not be covered under
this scheme.
4. AN OUTLINE OF THE COURSE:

4.1 Name of the Course : Karyakaleen Hindi Diploma
4.2 Date of commencement : 01.01.1993
4.3 Duration of the Course : 1 year
4.4 Examination : Every year in the third week of
December.
4.5 Pass Marks : 50 per cent.
4.6 Employees who fail the examination, may reappear in the examination to
be held in the following year, but they will not be given readmission in the
course.
5. FACILITIES:
5.1 Lessons and response sheets shall be sent free of cost to the employees
every month.
5.2 Services of the despatch sections of the concerned plant/unit/office shall
be made available to the employees for sending their attempted response
sheets to MECON, Head Quarters.
5.3 The employees appearing in the examination shall be treated as ‘On
duty’.
5.4 On passing the Diploma Course, it will be recorded in the service book of
the employee.
224
5.5 No admission fee/examination fee will be charged from the employees for
this course.
6. INCENTIVE ON PASSING THE EXAMINATION:
6.1 Incentives on the basis of marks obtained will be granted to the
employees passing the Diploma course as given below:
70% marks or more : ` 2,500/-
60% - 69% marks : ` 2,000/-
50% - 59% marks : ` 1,500/-
6.2 For grant of incentive the employees shall apply in the prescribed form
(Annexure–I) within one month of the declaration of the result which shall
be verified by the concerned Hindi Officer and incentive shall be granted
on the basis of his recommendation.
6.3 The incentives being given under the Hindi Incentive Scheme shall remain
unaffected with the incentives provided in 6.1 above.
225
Annexure–I
Applications Form For Grant of Incentive On Passing The

Karyalayeen Hindi Diploma
1. Name :
2. Personal No. :
3. Designation :
4. Department :
5. Section (full address of the office) :
6. Date of passing the Karyalayeen :

Hindi Diploma
7. Percentage of marks obtained in :

the Diploma Examination (Please
attach a copy of the certificate)
8. Amount of the incentive claimed :
Date: Signature
Recommendations of the Hindi Officer:
Shri_______________________has passed the Karyalayeen Hindi Diploma

examination obtaining __________________ percentage marks. The certificate
given to him has been verified. He may be granted incentive of ` ___________.
Date : Signature
226
CHAPTER - XXXI
INCENTIVE SCHEME FOR ACQUIRING ADDITIONAL
EDUCATIONAL/PROFESSIONAL QUALIFICATIONS
31.1 OBJECTIVE:
To motivate employees to strive for self–development through improving
their knowledge and professional competence by undertaking advanced
studies relevant for the business of the company as well as their
functions.
31.2 POLICY:
Employees shall be given lump sum incentive when they acquire
additional qualifications, as specified in the Annexure–I to III and
relevant for their effective functioning in the company.
31.3 SCOPE:
This scheme shall cover all regular employees of the company below the
Board level including Management Trainees.

Head of Personnel department, on recommendation of departmental
head, shall grant the incentive under the scheme after approval of
concerned Director.
31.5 ENTITLEMENT:
31.5.1 Employees acquiring professional qualifications given in
Annexure–I will be paid one time incentive of ` 15,000/- (Rupees
Fifteen thousand only).
31.5.2 Employees acquiring professional qualifications given in
Annexure–II will be paid one time incentive of ` 10,000/- (Rupees
Ten thousand only).
31.5.3 Employees acquiring professional qualifications given in Annexure–III
will be paid one time incentive of ` 8,000/- (Rupees Eight thousand
only).
31.5.4 As a measure to improve literacy amongst employees, special incentive
may be granted to employees who acquire following academic
qualifications from recognized board, including IGNOU during service in
MECON. The incentive can be granted only once for respective level of
qualification as acquired on or after 01.07.2006.
Matriculation : ` 3000/- (Rupees Three thousand only).
(for non-matric employees)
Graduation : ` 6000/- (Rupees Six thousand only).
Post-Graduation : ` 7000/- (Rupees Seven thousand only).
Professional Qualification : ` 8000/- or `10,000/- or `15,000/-
227
31.6 ELIGIBILITY:
31.6.1 Employees in the company below the Board level who qualify in the final
examination as in Annexure–I to III shall be eligible for the benefit on
the date the final result of the examination is declared and the prescribed
training, if any, is completed.
(a) The incentive can be granted maximum two numbers of times in each
cadre–Non-Executive and Executive subject to the fulfillment of other
conditions stipulated under the scheme.
A Non-Executive who has already received incentive (max. of two times)
in Non-Executive cadre for acquiring additional qualification, becomes
eligible for another such incentive (max. two times) in Executive cadre for
acquiring higher qualifications.
(b) The incentive can be granted to the employee without any reference to
the fact whether the employee enrolled himself/herself for the course
before or after joining the services of the company but should pass the
examinations during the service of the company. This will be
applicable for only those employees who have got their final results after
30.06.2006.
(c) Past cases, which were turned down according to the old scheme, would
not be reopened.
31.7 GENERAL CONDITIONS:
31.7.1 The grant of incentive shall be subject to production of official proof in
support of acquisition of the prescribed qualification.
31.7.2 The grant of leave, if required for pursuing studies or for appearing at the
examination shall be subject to the normal leave rules of the company.
31.7.3 The company may utilize the services of an employee in a
department/function in which the professional qualification acquired by
him could be relevant or more advantageously utilized.
31.7.4 Grant of incentive under the Scheme shall not entitle an employee to any
specific claim for promotion which shall be as per normal prescribed rules.
31.7.5 All the qualifications mentioned in Annexure–I to III should be from
recognized Universities/Institutions/Government bodies/AICTE.
31.7.6 Employees, who are sponsored at the expense of the company for the
course/examination/training to acquire the qualification or have been
given any financial assistance for the purpose, will not be entitled to get
incentive under this scheme.
31.7.7 If an employee is under suspension or under punishment period for any
misconduct, then the benefit would only be granted after the punishment
period is over.
31.7.8 For courses where attendance of classes is involved, prior special
permission from management to undergo course is necessary.
228
31.8 PROCEDURE:
31.8.1 An eligible employee may apply for the incentive through proper channel
in the prescribed form (Annexure–IV).
31.9 TENURE:
31.9.1 The revised incentive scheme shall be made effective from 15.04.2015.
31.9.2 The scheme will be reviewed by the Management at appropriate time.
31.9.3 The scheme can be amended/altered/withdrawn at the discretion of the
CMD, MECON without any notice or assigning any reason thereof. Further,
the CMD reserves the right to include/delete any qualification in/from the
list of professional qualification. CMD may appoint a review committee for
this purpose.
229
ANNEXURE-I
APPROVED PROFESSIONAL QUALIFICATIONS

On acquiring following Post-Graduation qualifications, of minimum two
years, incentive may be sanctioned to the employees, irrespective of the
area they are working in, subject to other eligibility factors.
1. Doctoral/Masters Degree OR Post Graduation Diploma, after graduation,
of minimum two years duration in areas of Engineering, Computer
Application & IT, Software Technology, Law, Mass Communication,
Environmental Science, Business Administration, Personnel Management
or any other Management qualifications.
2. Post Graduate Degree/Diploma in any discipline of Medical Sciences
specially recognized under CHS Scheme of not less than two years
duration. (Diploma will be considered only where degree is not awarded
and course is of two years full time duration).
3. Final examination of the Institute of Cost and Works Accountants/ final
examination of the Chartered Accountants of India or UK/final
examination of the Institute of company Secretaries of India or UK.
4. M. Sc. (Nursing).
*******************
230
ANNEXURE–II

On acquiring following professional qualifications incentive may be
sanctioned to the employees, irrespective of the area they are working in,
subject to other eligibility factors.
1. The following qualifications would be treated as equivalent to engineering
degree.
(a) Section A & B of Associate Membership Examination of Institute of
Engineers.
(b) Section A & B of Associate Membership of Indian Institute of Metals.
(c) Associate Membership of Indian Institute of Chemical Engineers.
(d) Graduate ship examination of Institute of Electronics and

Telecommunication Engineers.
2. Bachelor of Law after graduation.
3. Certificate courses, useful for company’s operation, undertaken by
employee at their own initiative and cost and successfully certified.
Employee need to get their application endorsed by respective GM to
qualify for the incentive. Some of the suggested courses, as relevant
today for company’s operation are:
(a) Certified Welder, NDT Level–II (for courses conducted by Welding

Research Institute, Trichy/ISNT/ASNT).
(b) Reliability course by ASQC.
(c) Certified Energy Auditor.
(d) Certified Lead Auditors course of ISO-9001, ISO-14001, ISO-18001 &

HACCP.
(e) Diploma in Railway Engineering.
(f) Diploma in Industrial Safety.
4. Post Graduate Diploma in any discipline of Medical Sciences specially

recognized under CHS Scheme of not less than one year duration.
***************************
231
ANNEXURE–III

On acquiring following professional qualifications incentive may be
sanctioned to the employees, irrespective of the area they are working in,
subject to other eligibility factors.
1. Intermediate examination of the Institute of Cost and Works
Accountants/Intermediate examination of the Chartered Accountants of
India.
2. Diploma in technical discipline from recognized technical institution/ Govt.
Polytechnic of minimum one year; Graduation in Computer
Science/Computer Application.
3. Trade certificate from a recognized ITI/institute of Welding, Fitting,
Blacksmith, Carpentry, Plumbing, Electrician/Wireman and Draftsman in
Civil/Mechanical, Survey, Refrigeration and Air-Conditioning.
*************************
232

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ESTABLISHMENT MANUAL

UPDATED UPTO 05th August, 2015

MECON, an engineering, consultancy and contracting organization having multi

1.2.13 “TEMPORARY EMPLOYEE” means an employee engaged by the

(iv) To systematically build up a model system for the guidance of and

(a) Direct Recruitment:

For internal recruitment the candidates will be subjected to test/or

2.4.2 Every employee must declare on his first appointment or on being

* Introduced/Addition made vide note dated 01.09.2008 approved by Director (Engineering)

* If required these offices can adjust their office timing/lunch break

** There shall be no change in office timing with respect to employees with

1. Special leave facilities wherever applicable shall stand withdrawn

i) ` 5000/- in case of an employee holding an executive post:

4.11 PUBLIC DEMONSTRATIONS IN HONOUR OF A COMPANY

4.12.3 Canvassing by an employee in support of the business of insurance

ii) For other employee if the total transaction in shares, securities,

4.18 BIGAMOUS MARRIAGE:

4.19.1 Any employee shall:

(c) Not appear in the place of work in a state of intoxication: and

4.20 PROHIBITION OF SEXUAL HARASSMENT OF WORKING WOMEN:

2. Scale of pay and Present pay

3. Details of each transaction made in Shares,

4. Particulars of the Party/firm with whom transaction

a) Is party related to the applicant?

b) Did the applicant have any dealings with the party

5. Source or sources from which financed: -

b) Other source giving details.

6. Any other relevant fact which applicant may like to

I hereby declare that the particulars given above are

ii) Negligence or neglect of duty, malingering, loitering, idling wasting time

xxiv) Purchasing properties, machinery, stores, etc. from or selling property,

5.5.2 On receipt of the written statement of employee or if no such statement is

ii) His written statement of defence, if any.

iv) The findings on each charge and the reasons therefor.

The Chairman-cum-Managing Director may consider the circumstances of

Provided that if there is a difference of opinion between the Appellate

5.13.2 Appeal against other orders:

All employees from

6.4 SPECIAL CASUAL LEAVE:

6.5 EARNED LEAVE:

6.11.6(i) An employee shall, before proceeding on study leave, execute a bond to

(b) For employees drawing a pay in excess of ` 21,000/- per month.

6.13. LEAVE NOT DUE:

6.14.3. In case of employees superannuating from the services of the company

6.14.6. An employee proceeding on leave for 30 days or more may be granted

Employees on deputation from other organizations shall be covered under

7.1.2.a Family Means

ii) a.Legitimate children and step children wholly dependent on the

b. Legitimate daughter and step daughter wholly dependent on the employee

7.1.2.b EXTENDED FAMILY

Family members other than parents will be treated as wholly dependent

Note: Incase of extended family, rate of reimbursement shall be limited to

iii) The spouse of deceased employee appointed on compassionate ground will

Note2:Before renewal of Medical Cards in January each year, Personnel Section

7.1.4 “Authorized Medical Officer (AMO)” means Medical Officer

7.1.7 “Registered Medical Practitioner” means one qualified in the western

7.1.9 “Controlling Officer “ means In-charge of Ispat Hospital or officer delegated

7.1.10 “Competent Authority” means the Chairman-cum-Managing Director/

7.1.11 Company's Hospital means: -

b) For other places: Hospitals run by the Steel Plants/Clients of the

NOTE: 1. The Medical Board is empowered to add/ delete/modify/ amend the

2. In case of any doubts or dispute regarding the admissibility of any

7.2 GENERAL PROVISIONS APPLICABLE TO ALL OFFICES INCLUDING HEAD

7.2.1 Medical Treatment: