PERSONNEL

MANUAL

FERRO SCRAP NIGAM LTD.

BHILAI
 INDEX
Sl. No. Subject Page No.

1.0 Wage & Salary Administration

1. Scale of Pay & Dreams Allowance 1.1.1
2. Annual Increment 1.2.1
3. Fixation of Pay 1.3.1

2.0 Allowances

4. Travelling Allowance Rules 2.1.1

5. City Compensatory Allowance 2.2.1
6. Cash Handling / HRA / Night Shift Allowance 2.3.1
7. Local Travelling Expenses / Transport Subsidy 2.4.1
8. Reimbursement of Entertainment Expenses & Magazine Allowance 2.5.1

3.0 Human Resource Policy & Rules

9. Promotion Policy & Rules for Executives 3.1.1

10. Executives Performance Appraisal System 3.2.1
11. Promotion Procedure & Line of Promotion of 3.3.1
Non-executives (Including Ministerial staff)
12. Transfer benefits on movement from FSNL to other PSU & vice-versa 3.4.1
13. Forwarding of Application for outside employment 3.5.1
14. Grievance Redressal procedure for Staff & Officers / Public 3.6.1
15. Occupational Safety & Health Policy 3.7.1

4.0 Advances
16. Advance for purcahse of Motor Vehicles 4.1.1
17. Advance for purchase of Bicycle 4.2.1
18. House Building Advance Rules 4.3.1
19. Festival Advance 4.4.1

5.0 Incentive / Motivational Scheme

20. Incentive scheme for acquiring professional qualification 5.1.1

21. Incentive scheme for promoting small family norms 5.2.1
22. Incentive scheme for promoting progressive use of Hindi 5.3.1
23. Long Service Award Scheme 5.4.1
Sl. No. Subject Page No.

24. Monthly Incentive Scheme 5.5.1

25. Managerial Reward Scheme 5.6.1
26. Suggestion Scheme 5.7.1
27. Addl. Resource Generation Scheme 5.8.1
28. Motivational Scheme 5.9.1

6.0 Leave Rules / LTC / LLTC Rules

29. Leave Rules for Executives 6.1.1
30. Leave Rules for Non-executives (Works) 6.2.1
31. Leave Rules for Ministerial Staff 6.3.1
32. Encashment of Leave 6.4.1
33. Leave Travel Concession Rules 6.5.1

7.0 WELFARE SCHEMES

34. Medical schmem for Executives 7.1.1

35. Medical schmem for Non-executive 7.2.1
36. Routine Medical Checkup of Employees 7.3.1
above 45 years of age.
37. Medical Insurance Coverage Scheme for 7.4.1
Retired Employees & their spouses.
38. Grant of Scholarship of the children of 7.5.1
employees.
39. Assistance for Funeral Expenses 7.6.1
40 Employee's Family Benfit Shceme 7.7.1
41. Life Cover Scheme 7.8.1
42. Supply of Uniform to school going children 7.9.1
of employees.
43. Education Subsidy 7.10.1
44. Canteen Subsidy 7.11.1
45. Workmen's compensation benefits 7.12.1
46. Group Personal Accident Policy 7.13.1
47. Scheme for farewell to retiring employees 7.14.1
48. Supply of Uniforms & Liveries to employees 7.15.1
49. Legal Assistance 7.16.1
50. Lease Hold Accommodation Scheme 7.17.1
Sl. No. Subject Page No.

8.0 RETIREMENT BENEFITS

51. Rule for retirement of employees on 8.1.1
superannuation
52. Voluntar Retirement Scheme 8.2.1
53. Gratuity Rules 8.3.1
54. Provident Fund Rules 8.4.1

9.0 CDA RULES / STANDING ORDERS

55. FSNL CDA Rules 9.1.1

56. Standing Orders - Visakhapatnam Unit 9.2.1
57. Standing Orders - (RKL/BPR/BHI/OBK/DGP) 9.3.1

10.0 MISCELLANEOUS
58. Change of Name 10.1.1
59. Procedure for Weeding out of old records, record retention & destruction 10.2.1
 1.0

WAGE & SALARY

ADMINISTRATION
 PAY AND OTHER ALLOWANCES

SCALE OF PAY (EXECUTIVES) :

DESIGNATION SCALE CODE SCALE OF PAY (Rs.)

Executive E-0 6550-200-11350/=

Jr.Manager E-1 8600-250-14600/=
Asst.Manager-II E-2 (A) 10750-300-16750/=
Asst.Manager E-2 (B) 13000-350-18250/=
Dy.Manager E-3 14500-350-18700/=
Manager E-4 16000-400-20800/=
Asst.General Manager E-5 17500-400-22300/=
Dy.GM/G.M./CGM E-6 / E-7 18500-450-23900/=

SCALE OF PAY (NON-EXECUTIVES) :

SCALE CODE SCALE OF PAY (Rs.)
WORKS GRADE
N-1 3630-60-5130/=
N-2 3730-65-4510-70-5420/=
N-3 3875-75-4775-85-5880/=
N-4 4040-90-5120-95-6355/=
N-5 4240-105-5500-115-6995/=
N-6 4460-120-5900-125-7525/=
N-7 4700-130-6260-140-8080/=
N-8 4950-145-6690-150-8640/=
N-9 5100-155-6960-160-9040/=
N-10 5650-165-7630-170-9840/=
MINISTERIAL STAFF
M-0 4040-90-5120-95-6355/=
M-1 4000-110-5320-120-6880/=
M-2 4500-125-6000-135-7755/=
M-3 4950-145-6690-150-8640/=
M-4 5100-155-6960-160-9040/=
M-5 5650-165-7630-170-9840/=

1.1.1
DEARNESS ALLOWANCE PAYABLE TO ALL EMPLOYEES :

a) All India Consumer Price Index number for industrial workers(general) based on
1960=100 (AICPI) is used for grant of compensation to the employees for price rise.

b) DA instalments are released 4 times a year with effect from 1st January, 1st April, 1st July
and 1st October.

c) DA is paid for the increase in AICPI above quarterly Index Average of 1708 to which the
scales of pay are related. Quantum of IDA payable will be @ Rs.2/= per point shift in
AICPI quarterly average beyond 1708.

d) The percentage increase in the quarterly average of the AICPI over Index 1708 is taken
upto one decimal point.

e) The rate of compensation of the employees over the Basic Pay at index average of 1708
is in whole numbers with fractions carried forward.

f) The percentage neutralization to employees in different pay ranges is 100%.

Foot Note-I :

Quarterly averages is computed in the following manner:

Quarterly Average Payable from

September, October & November 1st January

December, January & February 1st April

March, April & May 1st July

June, July & August 1st October

m m m

1.1.2
DATE OF ANNUAL INCREMENT :

The date of annual increment of an employee is either 1st January or 1st July of the year and is
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, will 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, will draw annual increment in the time scale applicable to him on 1st
July every year.

APPLICABILITY OF INCREMENT ON SUPERANNUATION :

In case of employees 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, is calculated in the pay for computation of Leave Salary and Gratuity.

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1.2.1
 FIXATION OF PAY ON PROMOTION
On promotion, a notional increment in the lower scale is added to the pay prior to promotion to
arrive at notional pay and pay in higher scale is fixed at the stage immediately above the notional
pay. Provided that such a notional increment is added even when one has been drawing the
maximum in the lower scale of pay. Provided further that if such pay fixed on promotion falls short
of the pay which the employee would have drawn had he been promoted after drawing the next
increment in the lower scale then his pay would be re-fixed at the next higher stage with effect from
the date he would have drawn such increment.

EXAMPLE
1. IN CASE OF PROMOTION EFFECTIVE FROM 30TH JUNE
a) If date of Increment of employee : 1st January
Basic Pay as on 29th June may be taken and a notional increment of existing grade
be added to this pay in order to arrive at notional pay and pay in higher scale be
fixed at the stage immediately above the notional pay.
However, the individual will get monetary benefit from the date of take over charge
of higher post.
The next date of annual increment of the individual will be 1st January, subject to
confirmation.
b) In case of normal date of increment : 1st July
In case the normal date of increment of an employee is 1st July, then in that case, if
such pay fixed as above on promotion falls short of the pay which the employee
would have drawn had he been promoted after drawing the increment in the lower
scale, then his pay would be re-fixed at the next higher stage with effect from the
date he would have drawn such increment, i.e., 1st July. The next date of annual
increment will be 1st July of next year, subject to confirmation. The monetary
benefit will be given from the date of takeover of charge of the higher post.
In case the pay fixed as per (a) above does not fall short of the pay fixed after
drawal of increment, the pay fixed as per (a) above will be applicable with monetary
benefit from the date of take over charge. The next date of annual increment will be
1st January.

2. IN CASE OF PROMOTION EFFECTIVE FROM 31ST DECEMBER

a) In case of normal date of Increment of employee - 1st July
Basic pay as on 30th December may be taken and a notional increment of existing
grade be added to this pay in order to arrive at notional pay and pay in higher scale
be fixed at the stage immediately above the notional pay.
However, the individual will get monetary benefit from the date of takeover charge
of higher post.

1.3.1
 The next date of annual increment of the individual will be 1st July, subject to
confirmation.
b) In case of normal date of Increment - 1st January
In case the normal date of increment of employee is 1st January, then in that case, if
such pay fixed as above on promotion falls short of the pay which the employee
would have drawn had he been promoted after drawing the increment in the lower
scale, then his pay would be re-fixed at the next higher stage with effect from the
date he would have drawn such increment, i.e., 1st January. The next date of
annual increment will be 1st January of next year, subject to confirmation. The
monetary benefit will be given from the date of takeover of charge of the higher
post.
In case the pay fixed as per (a) above does not fall short of the pay fixed after
drawal of increment, the pay fixed as per (a) above will be applicable with monetary
benefit from the date of take over charge. The next date of annual increment will be
1st July.

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1.3.2
 2.0

ALLOWANCES
 TRAVELLING ALLOWANCE RULES

1.0. OBJECTIVE :
1.1. To define and lay down Companys policy and rules on reimbursement of expenses
incurred on official travel in India.

2.0. SCOPE :
2.1. These rules shall cover all employees of the Company for journeys in India.
2.2. Deputationists in the Companys service or Companys employees on deputation outside,
shall be governed by the terms and conditions of their deputation.
2.3. These rules shall also cover trainees, candidates called for interview or any other person
required to perform Companys work, as specified.

3.0. DEFINITIONS :
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
(SOT/JOT/Artisan Trainees) will be treated at par with regular employees of their
equivalent status.
3.2. FAMILY : means (1)employees wife or husband as the case may be, residing with
employee (Not more than one spouse is included in term family) (2)legitimate children
including legally adopted children and step children, parents, step mother, minor brothers,
(below 18 years) unmarried or widowed sisters wholly dependent on and residing with the
employee.
CHILDREN : Also includes major (18 years and above) sons, married daughters including
widowed daughters.
3.3. Dependent for the purpose of these rules will cover a family member whose individual
income from all sources does not exceed Rs.1500/- per month. Scholarship/Stipend
received by the children of employees will not be treated as income for the purpose of
deciding dependency on the employee.
3.4. 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.
3.5. 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.
3.6. Transfer means movement of an employee from the Headquarters to another station
where he is posted.

2.1.1
3.7. A tour is a journey undertaken for Companys work out of the head-quarters where the
employee is posted. Each unit will define the geographical municipal limits of the
Headquarters beyond which TA/DA will be payable. 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.

4.0. TRAVELLING ALLOWANCE :

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 Conferences as nominated
participant/faculty;
f) Appearing in Court as jury, assessor, witness (only for Companys work),
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) Transfer;
k) Medical examination and/or treatment;
l) Superannuation/retirement, journey of family in the event of death of employee,
discharge/termination on medical grounds;
m) Appearing for interview for appointment in the Company;
n) Journey to join duty on first appointment in the Company.
4.1.1. In case in which 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 under FSNL Rules.
4.2. Entitlement of employees in different groups for TA is as follows:-
a) Upto N-2 grade : 2nd Class by rail, Lower Class (if there are only
2 classes) or middle class or 3rd class (if there
are more than two classes) by Steamer, 0.36
paise per Km.by road at current rates or actual,
whichever is lower.

2.1.2
 b) N-3 to N-10/M-0 to M-5 : First class/ACC-II tier, sleeper by rail including
Rajdhani Express, highest class by steamer (or
middle or second class if there are more than
two classes), 0.85 paise per Km by road at
current rates or actual, whichever is less.
c) E-0 and above upto E-3 grade : First class/ACC-II tier Sleeper by Rail, including
Rajdhani Express highest class by steamer,
Rs.1.72 per Km.by road at current rates or
actual whichever is lower.
d) Executive in the grade : Air, ACC First Class by rail, (including Rajdhani
of E-4 and above Express) highest class by Steamer, Rs.2.32 per
Km.by road at current rates or actual whichever
is lower. Board level appointees while travelling
on tour or transfer within India may at their
discretion travel by executive class of the Indian
Airlines.

4.3. Further to para 4.2, employees would be entitled to the following on travel :-
1) Actual fare for journeys from residence/place of stay to Railway station/Airport and
vice-versa, and for journeys undertaken by road at outstations, conveyance charges
will be reimbursed subject to a maximum of Rs. 300/- at any one station at any
time for a continuous halt not exceeding 7 days. The limit of Rs. 300/- can be
relaxed in exceptional cases by the Managing Director upto Rs. 400/-. The limit of
Rs. 300/400 as the case may be, can be increased proportionately when stay at
outstation is longer than 7 days.
NOTE : For the purpose of the above rule the conveyance charges spent at outstation for
journeys performed between Airport/Railway station to the temporary residence
and vice-versa will be excluded from the ceiling prescribed under the above rules.
2) Reservation and other surcharges.
3) Cancellation charges.
4.4. Employees under normal circumstances, shall undertake journeys by rail, air, steamer as
per entitlement. However, they may travel by road, between locations connected by rail/
air, or in a class higher than entitlement subject to the specific approval of Managing
Director. The travel charges in cases where the employees travel by road will, however, be
restricted to the rates applicable for the highest class available in the train enroute. Travel
by road between locations connected by rail/air should be limited to cases where such
journeys can be justified on grounds of convenience, economy or time saving.
4.5. An employee should travel by the shortest route. He may travel by any other convenient
route if approved by the Competent Authority.
4.6. For rail/air journeys, ticket numbers must be indicated in the TA bills. However, the
Competent Authority may waive such stipulation in genuine cases.

2.1.3
4.7. 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 Rs.4.05 per litre. Rate of road
mileage would be based on the petrol price at Delhi and will be applicable to all Plants/
Units.

5.0. DAILY ALLOWANCE :

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 Company;
e) Participation in training programmes, seminars and conferences as nominated
participant/faculty;
f) Appearing in court as jury, assessor, witness (only for Companys work),
departmental or Vigilance enquiry;
g) Receiving National Awards;
h) Appearing as prosecution witness on behalf of the State;
i) Employees of the company appearing as accused/defence assistant/assisting officer
in Department/Vigilance enquiries.
5.2 Entitlement of employees in different groups for Lodging (Hotels) and for Daily Allowance
(F&I) is given in Annexure-I. The rate of food and incidentals shall be same for all
locations irrespective of specified and other locations, except in case of own arrangements.
The rates of consolidated Daily Allowance & Entertainment Allowance on Foreign Tours
of Co's officials for Business purpose, technical discussion etc. is given at Annexure-II.
5.3 When on Tour, the entitlement of employees for D.A. will be regulated in the following
manner.
1) When the entire tour extends for more than 24 hours (including travel time): (a) Full
DA (Food and Incidentals) 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
(F&I) for any additional period less than 12 hours.
2) When entire tour extends for 24 hours or less (including travel time): (a) full DA
(F&I) if the entire tour extends from 12 to 24 hours. (b) 50% of the DA (F&I) where
the entire tour extends from 6 hours to 12 hours.
3) 50% of the amount of the D.A.(F&I) would be admissible wherever a) an employee
is treated as a Company Guest for boarding or where free boarding is provided and
b) during journey periods in trains providing free board.

2.1.4
 4) 50% of the DA rate (F&I) where the employee is nominated for residential training
at a hotel, Campus or MIT, Ranchi.
5) Actual lodging charges if the employee stays in a hotel of the entitled or lower star
ranking.
6) Actual lodging charges subject to monetary limits prescribed in para 5.2
(Annexure-I) if the employee stays in either unstarred hotels or hotels of higher star
ranking than entitlement.
7) D.A. (i.e. lodging and F&I) for holidays during tour but not for leave during the tour.
5.4 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
boarding charges shall be limited to entitlement.
5.5 Those employees who are entitled to avail single room in hotels may also avail single
occupancy in double room, as per the eligibility.
5.6 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 checking in and checking out timings. Inclusion or exclusion
of breakfast in Hotel bills will be ignored.
5.7 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.
5.8 DA(F&I) will be admissible for a halt upto 30 days at any one time. Halt beyond this
duration at any one station will require approval of the Chief Executive. Full DA(F&I) will,
however, be paid where halt beyond 30 days is approved by the Chief Executive.
5.9 For the purpose of Annexure to clause 5.3, Delhi, Mumbai, Kolkata, Chennai, Hyderabad,
Ahmedabad, Bangalore, Pune and Kanpur will be reckoned as Specified locations.
5.10 The ceiling on Lodging (Hotel) rates as at 5.2 above would exclude the levies, taxes etc.

6.0 RECALL FROM LEAVE :

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.

7.0 TRANSFER EXPENSES :

7.1 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 to Railway
Station/Air-port 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 is between two
places not connected by rail/air.

2.1.5
 ii) Actual or entitlement by rail/air whichever is less where journey is between
places 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 actual,
whichever is less, if additional travel is actually undertaken by the employee (and
not the family) with prior approval, for shifting the family and/or personal effects.

7.2 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 receipt, 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.
Each unit should appoint a list of approved transporters, at fixed rates for transporting
personal effects by road. Employees on transfer/retirement should approach one of the
transporters on the approved list who will raise bills directly with the Company at the rates
approved.

7.3 TRANSPORTATION OF VEHICLE :

An employee shall be entitled to reimbursement of transportation cost of his vehicle at
railway risk, (one motor car, or one motor-cycle, or one scooter or one bicycle) as under :
a) If transported by goods train, actual cost of packing and freight between the two
stations.
b) If transported by passenger train, actual freight charges by the railways.
c) If trasnported by road by truck or under own propulsion, freight admissible, had
the vehicle been transported by passenger train.

7.4 PACKING CHARGES :

Packing charges will be paid on production of a certificate by the concerned employee
with regard to expenses incurred for packing subject to following limits:
All Employees upto N9/M-4/N10/M-5 Rs. 4500/-
Employees in E-0 to E-6 scale Rs. 6,000/-
Employees in E-7 grade & above Rs. 7,500/-

7.5 TRANSFER GRANT :

Transfer Grant will be given to cover setting up of establishment and causing disturbance
to the employee. The amount payable will be one months basic pay plus DA.

2.1.6
8.0 TRANSFER/MISCELLANEOUS
8.1 Octroi duty, entry taxes, terminal taxes and insurance charges for transportation of
personal effects/Car will be paid to the employee on production of receipt in the event of
transfer as well as (i) Superannuation/retirement including voluntary retirement, (ii) death
of the employee and (iii) discharge/termination of the employee on medical grounds.
8.2 Management Trainees, SOTs/JOTs who are required to move from one Unit to another
during the course of the training will be eligible only for single travelling fare and will not
be entitled to the other transfer benefits. However, those Departmental candidates who
have been selected as Management Trainees/SOTs/JOTs and move from one Unit to
another will be entitled to transfer benefits only once when they shift their establishment.
8.3 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 given under para 7.
8.4 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 Sunday / Holidays) and one
day for travel per 400 Kms distance or part thereof in excess of 200 Kms.
8.5 In case of air journey, journey time will be limited to the day of travel only.
8.6 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 the
preparation mentioned in rule 8.4, within a year of reporting at the new station.
8.7 Where the 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.
8.8 An employee on transfer to a non-plant location will be entitled to stay in a hotel of his
entitlement for a period not exceeding 3 days, at the new station provided that Guest
House/Transit accommodation of the company is not available.
8.9 Employees would be reimbursed the expenditure made towards payment of Commission
charges to authorised agents for purchase of Air/Rail tickets on tour/transfer, wherever it is
not arranged by the company.
For this purpose, employees claiming reimbursement shall submit a Declaration in the
format as at Annexure III enclosing receipt in original from the authorised agent while
submitting their final T.A. bill.

9.0 T.A. FOR MEDICAL EXAMINATION/TREATMENT :

9.1 Travelling allowance shall be admissible to (a) an employee/any member of his family
who is entitled to medical facilities under the Medical Benefits Rules (b) an attendant to
accompany the patient if recommended by the Co.s Medical Officer for medical
examination/treatment.
The Attendant in authorised situations, shall be entitled to reimbursement of T.A. as per
entitlement of the employee.

2.1.7
9.2 Sometimes patients, after taking initial indoor treatment are released and advised daily
treatment/check up 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 Director (M&HS)/Head of the Medical Unit, lodging charges for
the patient only, limited to the monetary limits of lodging charges as per para 5.2
(Annexure-I) subject to production of bills, in case Guest House accommodation is not
available, may be reimbursed.

10.0 COURT, DEPARTMENTAL OR VIGILANCE ENQUIRY :

10.1 Any amount received from the Court for attendance or board and lodging etc. shall be
refunded to the Company if TA/DA has been claimed from the company.
10.2 If the departmental or vigilance enquiry is held at an out-station at the request of an
employee, no travelling allowance and daily allowance shall be admissible. In other cases
TA/DA as on tour may be allowed for attending vigilance enquiries.
10.3 In respect of employees under suspension, TA/DA as on tour from HQs to the place of
enquiry or from the place at which he has been permitted to reside during suspension to
the place of enquiry, whichever is less, at the rate admissible to him according to the grade
to which he belonged prior to his suspension, may be allowed.
10.4 For appearing in court as accused, TA/DA will only be payable in such cases where the
prosecution of the employee arises from acts committed, or purported to be committed in
the bonafide execution of duties. The decision whether the prosecution has so arised will
depend upon the facts of each case and the discretion of the Chief Executive.

11.0 TRAINING PROGRAMMES, SEMINARS AND CONFERENCES :

11.1 Sponsoring of an employee for specialised long duration training of six months and
above, like DSW, will be treated as temporary posting. They will be entitled to HRA, CCA
as applicable and an amount of Rs. 500/- per month for the period as a special allowance.
11.2 Executives will be entitled to the following entertainment allowance for the duration of the
external training programmes, seminar/conference (and not for incompany training
programme):
Upto
6 days - Rs. 200/-
7-14 days - Rs. 300/-
15 days & above - Rs. 400/-
For external training programme, club or alumini fee on actuals will be reimbursed.

2.1.8
12.0 FINAL SETTLEMENT :
12.1 On (i) Superannuation/retirement including Voluntary Retirement (ii) Death of the
employee and (iii) discharge/termination of the employee on medical grounds, the
employee and/or his family will be entitled to reimbursements as per paras 7.1, 7.2,
7.3(i.e; reimbursement of transportation cost of vehicle) and 7.4. The journey should
commence within six months from the date of retirement/termination or death or within
such extended time as may be approved by the M.D. Final bills should be submitted
within one month from the date of completition of journey.
This provision is also applicable to Board level appointment made by the Government.

13.0 TRAVEL FOR INTERVIEW/APPOINTMENT IN THE COMPANY :

13.1 Candidates called for interview from outstation for appointment to Executive posts in the
company and candidates travelling to join duty on first appointment to executive posts in
the company would be paid the entitled fare corresponding to the post for which they are
being called for interview or to which they are being appointed. Candidates called for
interview/appointed to all other posts will be paid single second class fare.
13.2 Where a candidate travels by road between two points not connected by rail, he will be
reimbursed actuals or the rail fare by the appropriate class for the road distance involved,
whichever is less.
13.3 Managing Director may, at his discretion allow DA including lodging charges on the merits
of individual cases.

14.0 ADVANCE FOR TRAVELLING ON TOUR/TRANSFER ETC. :

a) An employee proceeding on journeys on tour or transfer may be granted advance to meet
travelling and other expenses. 100% advance towards TA/DA as the case may be granted.
b) Employees on transfer shall be given advance not more than two months before the date
of commencement of the journey.
c) Employees who want to shift their family members to the place of settlement for personal
reasons would be allowed to draw allowances for purchase of tickets six months in
advance of the date of retirement in respect of their family members. Other permissible
expenses will be reimbursed on submission of actual bills.
d) An employee shall be required to submit the travelling allowance bill on completion of
journey. If the bill is not submitted within 10 days, from the date of completion of journey,
the advance sanctioned shall be recovered from his salary.
e) An employee on transfer may be allowed a salary advance not exceeding two months
pay. The advance shall be interest free and recoverable in 12 equal monthly instalments
from the salary of the employee.

2.1.9
15.0 RULE MAKING POWERS :
15.1 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 the Annexure-I to para 5.2 depending on changes in lodging
rates of hotels.
ii) Amend the list of Specified Locations indicated in para 5.9.
iii) Making rules regulating the transportation of personal effects as provided in para
7.2.
iv) Make relaxations in individual cases; and
v) Notify further detailed rules.

16.0 TENURE :
The Company reserves the right to modify, cancel or amend any of these rules without
prior notice.

m m m

2.1.10
 ANNEXURE-I

RATES OF LODGING (HOTELS) AND DAILY ALLOWANCE (FOOD & INCIDENTALS)

S.No. Ref. Clause Pay Scales Code Specified Locations Other Locations Food & Incidentals
Hotels/Guest House/
All locations
(Rs.) (Rs.) (Rs.)

1 2 3 4 5 6

1. 5.2 of Employees in N-1 to

T.A. Rules N-6 & M-0 to M-1 180.00 140.00 75.00
N-7 to N-10 & 200.00 170.00 110.00
M-2 to M-5

2.1.11
Executive in E-0 3 Star Hotel or 3 Star Hotel or
to E-3 actuals limited to actuals limited to 150.00
Rs. 550/- Rs. 400/-
Executives in E-4 4 Star Hotel or 4 Star Hotel or
to E-6 actuals limited to actuals limited to 190.00
Rs. 700/- Rs. 550/-
Executives in E-7 4 Star Hotel or 4 Star Hotel or
E-8 actuals limited to actuals limited to 225.00
Rs. 850/- Rs. 670/-
E-9 & above Actuals Actuals 265.00

Note : The ceiling on hotel charges would exclude the levies, taxes etc.
In case the executive on tour makes his own arrangement for stay, instead of boarding in any Hotel
or FSNL/MSTCs guest houses, the Daily Allowance would be payable as under :-

SCALE CODE DAILY ALLOWANCE (Per Day)

Specified Other
locations locations

a) Executives

E-0 to E-3 Rs.400/= Rs.350/=

E-4 to E-6 Rs.500/= Rs.400/=

E-7 & above Rs.550/= Rs.450/=

a) Non-Executives

N-1 to N-6 & Rs.165/= Rs.145/=

M-0 to M-1

N-7 to N-10 & Rs.210/= Rs.195/=

M-2 to M-5

2.1.12
 Annexure - II

Payment of Daily Allowance / Entertainment

Allowance on Foreign Tour

1.0 A) DAILY ALLOWANCE

LEVEL OF EXECUTIVES RATE PER DAY IN US $

FOR ALL COUNTERS,
(EXCEPT SAARC COUNTRIES)

a) Chief Executives / Chairman/ Upto 500 US$ per day for

Managing Director a period not exceeding 45 days.
b) Executives in the rank of Upto 350 US$ per day for
Chief General Manager a period not exceeding 45 days.
c) Executives in the rank of Upto 300 US$ per day for
General Manager & below a period not exceeding 45 days.

B) ENTERTAINMENT ALLOWANCE

a) Chief Executives / Chairman / 5000 US$ per trip.

Managing Director.

2.0 Foreign Tour of company's officials for business purposes, technical discussions etc. to
SAARC countries will be treated as Local Tour and the payment of TA/DA will be made as
per their entitlement under the existing TA Rules of the company.
3.0 Daily Allowance is all inclusive rate for stay, food, local transport and other incidentals.
3.1 Expenses on Hotel accomodation will be on actual basis, supported by receipts issued by
the hotels. In case the executive does not stay in the hotel, he/she can calim 25% of the
per-diem payment of above D.A., without production of receipt.
3.2 Local conveyance, telephone charges, incidentals etc., if any, will be admissible on
certification by the concerned executives.
4.0 The Daily Allowance will commence from the actual day and time of arrival at &
departure from the place of official business in the foreign country only.
5.0 Final Travelling Expenses bill is required to be submitted within 7 days from the date of
return from foreign tour. If, on taking into account all the expenses as above, any surplus
foreign exchange is left from the admissible Daily Allowance, the same will be refunded to
the company by the concerned executive.
6.0 The claim for entertainment allowance shall be against production of receipts.

2.1.13
 ANNEXURE III

DECLARATION

This is to certify that I have paid commission charges to an authorised agent for booking my
air/rail/both ticket amounting to Rs.______________(Rupees______________________only).

I am enclosing the receipt in original issued in my name by the Authorised Agent for

reimbursement.

Date : Signature :

Name :

T.No. :

Designation :

Department :

2.1.14
 CITY COMPENSATORY ALLOWANCE
CCA will be paid to employees working in different locations as per guidelines received from
Government of India from time to time. As per the existing guidelines issued by Government of
India, CCA will be granted as under (presently at Delhi, Burnpur, Vizag, C.O. and Bhilai unit) :-

BASIC PAY CLASSIFICATION OF CITIES

PER MONTH (as per Govt.guidelines)

A-1 A B-1 B-2

(RUPEES PER MONTH)

Below Rs.4000 90 65 45 25

Rs.4001-5250 125 95 65 35

Rs.5251-6499 200 150 100 65

Rs.6500 & above 300 240 180 120

2.2.1
CASH HANDLING ALLOWANCE
Cash handling Allowance @ Rs.10/- per day of work, subject to a maximum of Rs.250/- per month,
is paid to those Assistants of F&A Department who handle cash in addition to their own duties.
In addition to the above, a Honorarium as indicated below, is also applicable to such assistants,
only when heavy payment arises, i.e., on the day of salary and Bonus Payment etc:-
a) If the amount handled is less : Rs.45.00
than Rs.50,000/-
b) If the amount handled is : Rs.50.00
Rs.50,000/- & above

HOUSE RENT ALLOWANCE

The House Rent Allowance to the employees of FSNL will be paid as per the following rates :-

CLASSIFICATION OF RATES OF APPLICABLE FOR

CITIES / TOWNS HRA FSNL UNITS/OFFICE

DELHI, MUMBAI 30% OF BASIC PAY DELHI

B-1 & B-2 17.5% OF BASIC PAY VIZAG
15% OF BASIC PAY C.O. & BHILAI
C & UNCLASSIFIED 10% OF BASIC PAY BOKARO, DURGAPUR,
ROURKELA, BURNPUR,
DOLVI & DUBURI

Where both husband & wife are Co's employees and posted at the same location, the couple will
be treated as a single family Unit and HRA will be payable to any one employee only i.e. either to
the husband or to the wife.

NIGHT SHIFT ALLOWANCE

Night Shift Allowance is paid @ Rs.45/- per day of work to all such employees (Executives & Non-
Executives) who work from 2200 Hrs.to 0600 Hrs.

2.3.1
 SCHEME FOR REIMBURSEMENT OF LOCAL
TRAVELLING EXPENSES
1. The scheme would cover all the employees who own a vehicle registered in their name
and utilize the same for official purpose, irrespective of any pay limit.
2. Employees shall be entitled to claim reimbursement in the manner indicated hereinafter.
3. A. Employees would be entitled to claim the reimbursement of expenses wholly,
exclusively and necessarily incurred by them by utilizing their vehicles in performance of
their official duties.
B. The rates of reimbursement of Local Travelling Expenses are indicated below :-

TYPE OF VEHICLE (Rs.PER MONTH) (Rs.PER MONTH)

EXECUTIVES NON-EXECUTIVES

1. Moped or Auto Cycle 360/- 360/-

or any other
equivalent vehicle

2. Scooter/Motorcycle 625/- 575/-

3. Car
E0 - E2 1900/- -
E3 - E5 2450/- -
E6 2700/- -
E7 2950/- -

Above rates of LTE is to be reimbursed, based on attendance, as detailed below:-

Period of unautorised Eligibility for reimbursement

absence from duty in a month of LTE for that particular month

Non-Executives Moped Scooter/Motorcycle

(Rs.) (Rs.)

i) 5 days to 10 days 231.00 383.00

ii) 11 days to 20 days 103.00 192.00
iii) 21 days & above NIL NIL

Executives
i) 5 days to 10 days 231.00 438.00
ii) 11 days to 20 days 103.00 250.00
iii) 21 days & above NIL NIL

2.4.1
 CAR

E-0 to E-2 E-3 to E-5 E-6 E-7

i) 5 days to 10 days 1306/- 1729/- 1989/- 2173/-
ii) 11 days to 20 days 713/- 1009/- 1279/- 1397/-
iii) 21 days & above NIL NIL NIL NIL

Reimbursement of Maintenance Expenses for Car/Scooter/Motor Cycle/Moped

The employees both, Executives & Non-executives, who are utilising their own vehicle and are
covered under reimbursement of LTE scheme, would be entitled for reimbursement of
Maintenance Expenses equivalent to Two months' Revised Local Travelling Expense rates as per
their entitlement in a financial year.
Accordingly, Maintenance expenses can be claimed only with the LTE claim of the month of April
and October every year. The eligibility for reimbursement of Maintenance expenses in case of
Unauthorised absence from duty, will be based on the attendance of May & November of the year,
and the reimbursement will be in the same proportion, as prescribed for reimbursement of LTC.
C. The use of the vehicle for purpose of coming from the residence to the place where
the duties of employment are to be performed or from such place back to residence,
will be regarded as use of vehicle for private or personal purpose and not in
performance of official duties.
D. In view of the fact that :-
a) The scheme is applicable to only those employees as specified in (1) above;
b) That from a practical point of view it may not be feasible to verify the details
of individual journeys undertaken by each employees;
c) That checking of such details would also result in wasteful expenditure on
employment of staff resulting in no utility, a certificate furnished by the
employees with regard to the expenditure having been incurred in
performance of official duties would be the basis for accepting the claim for
reimbursement.
E. Certificate referred to above is as per Annexure A.
4. After the expiry of wage period, i.e., the relevant month, an employee would be entitled to
claim reimbursement in the manner mentioned above.
5. An employee claiming reimbursement under the scheme will not be eligible for any
allowance or any other payment in connection with the journeys undertaken by him in
performance of his official duties.
6. An employee claiming reimbursement under the scheme would be responsible for
satisfying the Income-tax Authorities with regard to actual expenses incurred vis-a-vis
amount drawn from the company,to produce vouchers as may be required.

2.4.2
 ANNEXURE - A

To,
Estt.Section

Through : Deptt./Sectional Head.

This is to certify that I have maintained a Car/ Scooter/Motor Cycle/Moped, bearing

No.______________________, which is registered in my name and owned by me in proper
running condition and I have utilized the same in performance of official duties. The expenditure
wholly, exclusively and necessarily incurred on the maintenance and running of the aforesaid
vehicle in connection with the official duties during the month of
___________________________ was not less than
Rs.__________(Rupees______________________________only).

Signature : T.No. :

Name : Deptt. :

Desig : Date :

2.4.3
 TRANSPORT SUBSIDY

i) Employees who do not utilize Companys transport and who are not covered under the
existing scheme for reimbursement of Local Travelling Expenses, are eligible for
reimbursement of Transport Expenses at the rate of Rs.12/- per day of actual attendance.

ii) Each eligible employee will give an application to the Personnel Department of their unit

in the prescribed format of Application Form, placed at Annexure-B. Reimbursement on

monthly basis will continue unless and until the individual gives an exception report as
stipulated in the application form.

2.4.4
 ANNEXURE B

APPLICATION FOR REIMBURSEMENT OF TRANSPORT

EXPENSES

Through : Deptt.Head

I do hereby certify that I do not utilize Companys transport and do not claim
reimbursement of LTE. I do make my own arrangement of transport/utilize public transport for
attending my duties. My expenditure in this connection is not less than Rs.12/- per day. I may,
therefore, kindly be reimbursed the expenditure accordingly.

I do hereby undertake that if at any time in future, I use Companys transport or take
reimbursement of Local Travelling Expenses or if my expenditure on transport expenses is less
than Rs.12/- per day, I shall inform to the management accordingly.

I do hereby undertake that I shall furnish any information in this regard as and when
required.

Signature : ________________________

Name : ________________________

T.No. : ________________________

Deptt. : ________________________

2.4.5
 REIMBURSEMENT OF ENTERTAINMENT EXPENSES

Reimbursement of Entertainment expenses to the executives towards entertaining the visitors,

business associates etc., is made as under :-

SCALES CEILING(Rs.PER MONTH)

E-1 TO E-4 250.00

E-5 400.00

E-6 500.00

E-7 600.00

M.D. 1500.00

REIMBURSEMENT OF EXPENSES TOWARDS SUBSCRIPTION TO

PERIODICALS/JOURNALS/MAGAZINES AND MEMBERSHIP FEE OF
PROFESSIONAL BODIES/ASSOCIATIONS TO EXECUTIVES

In order to facilitate the executives in acquisition of professional knowledge and awareness of

the latest developments in different technologies and managerial aspects, the cost of subscription to
Periodicals/ Journals/Magazines and Membership fee of Professional Bodies/Associations, is
reimbursed to the Executives, to the extent of Rs.250/- per month or Rs.3000/- per annum.

This reimbursement is allowed every month, based on a certificate to be furnished by the

executives for the previous month, as shown in the format at Annexure-C.

2.5.1
 ANNEXURE C

REIMBURSEMENT OF EXPENSES TOWARDS

SUBSCRIPTION TO PERIODICALS/JOURNALS/
MAGAZINES AND MEMBERSHIP FEE OF
PROFESSIONAL BODIES/ASSOCIATIONS,
TO EXECUTIVES

CERTIFICATE

This is to certify that I have spent more than Rs.__________

(Rupees______________________________________), in the month of ______________________,
for Periodicals/Journals/Magazines and/or Membership fee of Professional Bodies/Association.

Signature : ________________________

Name : ________________________

Designation : ________________________

T.No. : ________________________

Scale Code : ________________________

Department : ________________________

2.5.2
 3.0

PROMOTION POLICY

&

RULES FOR EXECUTIVES

 PROMOTION POLICY FOR EXECUTIVES

1.0. INTRODUCTION :
1.1. In establishing and maintaining a dynamic organisational structure suited to meet present
and future Company needs, FSNL is committed to developing its own human resources in
such a manner as to integrate the aspirations for growth and development of the
individual employees with the fulfilment of the Companys objectives. The Company
seeks to sustain high levels of performance from its executives by maintaining a working
environment conducive to the efficient and effective functioning of each Executive.

2.0. POLICY OBJECTIVES :

2.1. To integrate growth opportunities of the executives with fulfilment of Companys
objectives.
2.2. To man executive posts in the Company with competent personnel having growth
potential, and to utilise their capabilities in the working environment to the maximum
opportunities available for advancement.
2.3. To provide for a system which is conducive to equity, fairness and objectivity in matters
concerning promotion of executives.
2.4. To ensure uniformity and consistency, to the extent possible, in promotion of executives
of different units of the company.
2.5. To motivate executives of the organisation for better performance, by rewarding their
contribution to the growth of the organisation, in deciding promotion on the basis of
overall merit.
2.6. To ensure continuity of the management and systematic succession planning for senior/
key posts in the executive cadre.
2.7. To provide input for the development of executives linked to their levels of performance
and their specific strengths and requirements.
2.8. To integrate executives into a cohesive team.

3.0. SCOPE :
3.1. The policy shall cover all promotion made in executive posts (other than promotion from
non-executive posts to executive posts) and shall apply to all units of FSNL.
3.2. The policy will not cover those executives who are appointed for a limited tenure,
superannuated persons reappointed in the Companys service, and to other executives
appointed on a purely casual or temporary basis or whose terms of appointment stipulate
coverage under different rules.

3.1.1
4.0. CLUSTERS OF SCALES :
4.1. For the purpose of promotion and career planning of executives, scales of pay will be
grouped in the following clusters:-

CLUSTER SCALE CODE SCALE OF PAY (Rs.)

A E-0/E-1/E-2A & E-2B 6550-200-11350/=

8600-250-14600/=
10750-300-16750/=
13000-350-18250/=

B E-3 & E-4 14500-350-18700/=

16000-400-20800/=

C E-5 17500-400-22300/=

D E-6 }
} 18500-450-23900/=
E E-7 }

5.0. PROMOTION SYSTEM :

5.1. There will be two systems of promotion within the executive positions in FSNL :
i) Promotion within clusters of scales of pay.
ii) Promotion between clusters of scales of pay.
5.2. All promotions made in accordance with this policy will be from one scale of pay to the
next, without skipping any scales of pay.

6.0. CREDIT POINTS FOR APPRAISAL RATINGS :

6.1. The final ratings of the executive performance appraisal system provides categorisation of
executives in terms of different levels of performance. To link performance appraisal
ratings with the promotion policy, the following credit points shall be adopted :-

3.1.2
 Appraisal Ratings earned Approx.% Credit points
for the year of Executives earned

O 10 50 points

A 20 40 points

B 45 30 points

C 25 15 points

6.2. C Appraisal rating in any of the immediately preceding three years will be considered
unpromotable.
Executives in the category C, declared as un-promotable, will be considered
unpromotable for ensuing One Year. Percentage of C grade, if necessary, may vary
within a range of 15% to 25% in an appraisal group. The percentage of B grade would
accordingly get adjusted between 45% to 55%.

7.0. PROMOTION WITHIN A CLUSTER OF SCALES OF PAY :

7.1. Within a cluster of scales of pay promotion shall be linked to performance as reflected in
the Performance Appraisal Reports, subject to Policy para 7.4.1.
7.2. Promotion from one scale of pay to another in the same cluster will be decided on
collection of certain specified credit points, subject to Policy para 7.4.1.
7.3. PROMOTION WITHIN CLUSTER A (E-1 TO E-2A & E-2A to E-2B)
7.3.1. The executives will be promoted from E-1 to E-2A & E-2A to E-2B scales on
acquiring 120 credit points/100 credit points (as prescribed in the rules) based on
their appraisal ratings.
An employee in the E-0 grade will be promoted to E-1 grade on acquiring
minimum 90 credit points subject to a minimum of two years of service in the E-
0 scale.
7.3.2. Provided, however, that promotable executives working in E-1 & E-2A scales will
be promoted to E-2A & E-2B scales, respectively, only after completion of 3
years in the respective grades, relaxable to a maximum of 3 months.
7.4. FOR PROMOTION WITHIN CLUSTER B AND C (E-3 TO E-4)
7.4.1. An executive will be promoted, if found suitable by DPC, on his earning 100
credit points on the basis of his appraisal ratings subject to his having minimum
of 2 years service in the existing scale of pay.
7.4.2. Any Promotion/Monitary Benefit/Change of designation for the officers in the
scale of Rs.18500-450-23,900/= and above will be approved by the Board
specifically in each and every individual case.

3.1.3
8.0. PROMOTION BETWEEN CLUSTERS :
8.1. Between clusters, promotion will depend on availability of vacancies in the next higher
cluster.
8.2. Promotions will be based on total points earned by an executive on the basis of the
following factors :-
a) Average Credit Points (ACP) in the current scale of pay
b) Points for qualification
c) Points for number of years spent in the current scale of pay
d) Points obtained in the interview/Assessment by Departmental promotion committee.
8.3. AVERAGE CREDIT POINTS (ACP)
Average Credit Points (ACP) earned by the executives in the existing scale will be
computed as follows:-
Sum of the credit points earned in the last three years or in the number of years spent in
the scale, whichever is less, divided by the number of appraisal ratings taken into account.
Maximum attainable ACP is 50.
8.4. QUALIFICATION POINTS
Points will be awarded for different levels of educational qualifications.
Specific points for the different levels will be as prescribed in the Rules. Maximum
attainable points on qualification would be 20.
8.5. LENGTH OF SERVICE IN THE SCALE
2 points for every completed year of service in the scale upto a maximum of 15 points
shall be regulated as prescribed in the rules.
8.6. INTERVIEW
There will be a maximum of 15 points for interview, which will be regulated as prescribed
in the Rules.

9.0. MECHANISM OF PROMOTION - BETWEEN CLUSTERS :

9.1. ELIGIBILITY
From E-2B to E-3, E-4 to E-5 and E-5 to E-6, executives with three years of service in
the scale will be eligible for consideration. Provided that the executives acquiring
outstanding O reports for two consecutive years will also be eligible for consideration
even though they may not have completed three years of service in the scale. Eligibility for
promotion between clusters in other scales will be two years.
9.2. ZONE OF CONSIDERATION
The names of all eligible executives will be listed in the descending order of the total marks
obtained by them on Performance (ACP), qualification and length of service in the scale.
From this list, executives will be called for interview in the manner as may be prescribed in
the Rules.

3.1.4
9.3. SELECTION PROCEDURE
Executives in the zone of consideration will be assessed by an interview committee. This
committee can add a maximum of 15 points to the total points already earned by the
executives on the basis of performance, qualification and length of service and draw up
the selection panel.
Promotions will be made from this panel on the basis of total marks obtained.

10.0. BROADENING LINES OF PROMOTION

However, company reserves the right to delink vacancies from traditional lines of
promotion and fill them up on inter-disciplinary and/or inter-plant basis by promotion,
transfer, or circulation.

11.0. SERVICE AND PERFORMANCE LINKED PROMOTION SCHEME

11.1. Executives with 7 years of service in E-2B or E-4 scale will be considered for personal
promotion depending on a specified minimum level of performance.
11.2. The Service Linked Promotion Scheme will be as prescribed in the Rules.

12.0. CAREER PLANNING

12.1. Career Planning for Executive Cadre should integrate the aspirations of executives with
operational requirements of the Company. In a large measure, this is being taken care of
by the minimum assured growth which will arise within the clusters linked to performance.
In addition, the Company adopts a development oriented approach to performance
shortcomings/strengths which will ensure a more relevant and precise input in terms of
Company efforts to improve performance of the executives.
12.2. Nevertheless, it still becomes necessary to identify a group of executives on whom specific
attention of the Company should be focused either to assist them in improving their levels
of performance or for making use of their identified potential by grooming them for higher
responsibilities.
12.3. In order to achieve this objective, each Unit will prepare a list of executives with high
potential and a list of identified low performers.
12.4. EXECUTIVES WITH HIGH POTENTIAL
12.4.1. Executives with a minimum of 3 years in the Company and a minimum ACP of
45 will constitute the high potential group.
12.4.2. In the month of June every year, this list will be updated and a job rotation,
training and career advancement plan shall be prepared for such executives.
12.4.3. JOB ROTATION
These executives may be rotated to other Departments, not necessarily in their
lines of promotion in order to groom them to occupy senior posts at a later date.
12.4.4. TRAINING

3.1.5
 Training plan for executives oriented to their specific requirements and to
enhance potential will be prepared every year.
12.4.5. CAREER ADVANCEMENT
To motivate these executives to maintain high levels of performance as well as to
meet the organisational needs for utilising their services effectively, it is required
to plan for smooth career advancement for executives with high level of
performance. This will necessitate a flexibility in operation of posts between
cluster/creation of posts in the next cluster.
12.4.6. Executives whose ACP falls below 40 in any year or whose ACP remains below
45 for four consecutive years will be deleted from this list.

12.5. EXECUTIVES WITH LOW PERFORMANCE

12.5.1. Executives with minimum service of 3 years in the Company and having an ACP
of 10 or less will be included in this list.
12.5.2. In the month of June, every year, this list will also be updated and the Units will
plan job rotation and training for such executives. Units will also arrange to
counsel these executives to improve their performance.
12.5.3. The names of the executives will be deleted from this list if their ACP rises to 15
or beyond in any year or if ACP remains above 10 for four consecutive years.

13.0. INTER-PLANT ROTATION

13.1. The inter-plant movement of executives constituting the Corporate cadre will be planned
by Corporate Office.
13.2. However, in order to ensure that executives at relatively younger age are exposed to
different environments, those with identified high potential in the scale of E-3/E-4 will be
given the opportunity to move to other Units in the manner prescribed in the Rules.

14.0. EDUCATIONAL QUALIFICATIONS

14.1. Qualification levels for entry to executive cadre at E-0/E-1 will be as prescribed in the
Rules.
14.2. Qualification levels for posts within the executive cadre in those disciplines where certain
minimum qualifications are essential will be as prescribed in the Rules.
14.3. Qualifications prescribed by the Statute in respect of certain executive positions will be
followed.

15.0. INCREMENTS
Between Clusters, executives who are assessed as O in two consecutive years, and are not
promoted due to the lack of vacancies will be given an additional increment in addition to the
normal increment earned by them in the scale.

3.1.6
16.0. RESERVATION FOR SCs/STs
Reservation for SCs and STs will be provided as per the Presidential Directives on the subject.

17.0. PROBATION
The executives promoted under this policy will be kept on probation for a period of six months.
The probation will be regulated as prescribed in the Rules.

18.0. PENDING DISCIPLINARY PROCEEDINGS

Procedure for dealing with promotion/confirmation of executives pending inquiry/disciplinary
proceedings, suspension, prosecution etc., will be governed by the Rules prescribed in this regard.

19.0. APPLICATION OF POLICY IN CASE OF DEPUTATIONISTS ETC.

19.1. An executive on deputation to another organisation may be considered for promotion in
the Company during the period in accordance with selection methodology prescribed in
this policy. If selected, however, the promotion would be effective only on his return to
the Company.
19.2. In case of an executive who is not on deputation to another organisation but merely
retaining lien in the Company, he would not be considered for promotion during the
period. He would merely retain the option to return to his substantive scale for the
duration of lien.
19.3. This Policy and the Rules framed hereunder will not be applicable to executives who are
on deputation from other organisations to FSNL.

20.0. RULES AND PROCEDURE

Chairman-FSNL/Board is authorised to frame and issue rules and procedures under this policy.

21.0. TENURE
21.1. The policies and rules framed hereunder will come into force from a date notified by
Chairman-FSNL/Board, and shall remain in force for period as decided by him.
21.2. The Company reserves the right to amend, modify, cancel or withdraw the policy at any
time without notice.

22.0. Chairman-FSNL/Board may, at his discretion, relax the eligibility

conditions in exceptional cases, for reasons to be recorded.

3.1.7
 RULES FOR PROMOTION FRAMED UNDER THE
PROMOTION POLICY FOR EXECUTIVES

1.0. OBJECTIVES
1.1. To provide mechanism for determining the suitability of executives for promotion on a
standard pattern and in an objective manner.
1.2. To prescribe rules for implementation of the policy.

2.0. DEFINITIONS
2.1. Board means the Board of Directors for the time being of FSNL and includes, in relation
to the execution of the powers, a Committee of the Board/Management or any officer of
the Company to whom the Board delegates any of its powers.
2.2. M.D. means the M.D. for the time being of the Board of Directors of Ferro Scrap Nigam
Limited.
2.3. Company means the Ferro Scrap Nigam Limited.
2.4. Policy means the Executive Promotion Policy as approved by the Board of Directors of
the Company.
2.5. Policy Para means the relevant paragraph of the Policy.
2.6. Rules means the rules for promotion of executives framed under the Policy.
2.7. Rules Para means the relevant paragraph under the Rules.
2.8. Scale of Pay means an approved executive pay scale in force in the Company from time
to time, held by an executive substantively, and does not include scale of pay held by an
executive on personal or stroke grade promotion.

3.0. CLUSTERS
3.1. Clusters of scales of pay shall be as specified in the Policy para 4.1.

4.0. DATES OF PROMOTION

4.1. Promotion within clusters (except for promotion from E-1 to E-2A & E-2A to E-2B) will
be finalised in June and effected on 30th June of every year.
4.2. Promotion from E-1 to E-2A, E-2A to E-2B and all promotions between clusters will be
finalised in June and December and will be effected on 30th June and 31st December
respectively.

3.1.8
5.0. PERFORMANCE
5.1. Performance of an executive will be the assessed level of performance by the Executive
Appraisal System, measured in terms of credit points as specified in Policy Para 6.
5.2. The performance ratings as reflected in the previous performance Appraisal System will be
converted into new ratings and credit points as indicated below :-

Performance Ratings Ratings as per new Credit Points

as per Previous Appraisal System
Appraisal System

A* O 50
A A 40
B B 30
C C 15
C* (Cr.point = 5) - -

5.3. PRORATING OF CREDIT POINTS

In case the period for which an Appraisal Report is written is for less than nine months, the credit
points on the basis of such a report will be prorated for the period, counted in terms of completed
months, for which the Report is written. In case the Report is for a period of nine months or more,
it will be treated as a report for one complete year.

Example :
If an executive joins a particular scale of pay in the month of April, May or June and secures A
rating in the appraisal report during the assessment year, then he will earn the full 40 credit points
corresponding to the rating A. However, if the executive joins at any time in the year after June,
say in September and gets A rating in the appraisal report during the assessment year, the credit
points will be prorated for the months (Sept. to March) in the following manner :
40 / 12 x 7 = 23.4 Credit points
5.4. No separate appraisal report shall be written for a period of less than three months.
5.5. If an executive has only one appraisal report covering service in two scales of pay, then
the credit points for the service in the higher scale shall be prorated on the basis of the
number of completed months of service in the higher scale, in the same manner as
specified in Rules Para 5.3 and 5.4.

3.1.9
6.0. QUALIFICATION
6.1. Qualification as per Policy Para 8.4 shall be regulated as follows :-
6.2. No executive shall be barred from being promoted to any scale within the executive cadre
merely because of his qualification level except for posts given below:-
a) Posts for which qualification has been prescribed by statute.
b) Other posts as may be specified from time to time.
6.3. The minimum qualification for entry into the executive cadre shall be as per the existing
provisions.

7.0. PROMOTION SYSTEMS

7.1. There will be two systems of promotion within the executive cadre in the Company as
specified in Policy Para 5.1.

8.0. METHODOLOGY FOR PROMOTION

8.1. Promotion within Clusters :
8.1.1. Promotions from one scale of pay to another within a cluster shall be delinked
from vacancies.
8.1.2. Within Clusters of scales, promotions shall be linked to performance as specified
at Policy Para 7.4.1. Performance shall be measured in terms of total credit
points earned in the scale except as provided in Rules Para 8.1.3. Credit points
shall be earned as indicated in Rules Para 5.
8.1.3. In calculation of credit points for promotions from E-3to E-4, the appraisal
reports of only four previous years shall be taken into account. This will be
applicable till June, 1989. From June 1990 onwards, all appraisal reports from
1982-83 onwards earned in the scale will be taken into account for calculating
the credit point, for promotions.

EXAMPLE :

Year of Promotion Appraisal reports to be considered

June 1986 1982-83, 1983-84, 1984-85, 1985-86

June 1987 1983-84, 1984-85, 1985-86, 1986-87
June 1988 1984-85, 1985-86, 1986-87, 1987-88
June 1989 1985-86, 1986-87, 1987-88, 1988-89
June 1990 All appraisals in the scale from
1982-83 onwards.

3.1.10
 8.1.4. The list of all eligible executives alongwith the following records shall be placed
before a Departmental Promotion Committee constituted by Managing Director.
- Appraisal reports for the years as specified.
- Credit points calculated as specified.
- Biodata giving main areas of experience.
- Status regarding debarring from Promotions etc.
- Any other relevant records.
The Departmental Promotion Committee shall consider and recommend
candidates, if found suitable, for promotion and also decide on/recommend
transfers between Sections/ Departments/Zones/Functions/Units before the
promotion orders are issued subject to clearance from Disciplinary and Vigilance
angle.

8.2. PROMOTION OF EXECUTIVES WITHIN CLUSTER A

(E-1 TO E-2A & E-2A to E-2B)
8.2.1. The methodology for promotion within Clusters A as per Policy Para 7.3 will be
regulated as follows:
The DPC will consider and effect the promotion of
a) Executives in E-1 & E-2A scales collecting 120 credit points or more
from appraisal reports for the immediately preceding three years, will
be promoted to E-2A & E-2B scales, respectively, on the next available
date of promotion, subject to the condition that no such executive will
be promoted to E-2A & E-2B scale prior to completion of three years in
E-1 & E-2A scales, repectively, relaxable by a maximum period of three
months.
b) Executives in E-1 & E-2A scale collecting 120 credit points or more from
appraisal reports for the immediately preceding four years will be
promoted to E-2A & E-2B scales, respectively, on the next available
date of promotion, subject to the condition that no such executive will
be promoted to E-2A & E-2B scales prior to completion of four years in
E-1 & E-2A scales, respectively, relaxable by a maximum period of
three months.
c) All other executives in E-1 & E-2A scales who are promotable under the
system, i.e., who do not have C rating in any of the last three
appraisal reports, will be promoted to E-2A & E-2B scales, respectively,
not later than completion of five years in E-1 & E-2A scales,
respectively, irrespective of total credit points collected.
8.2.2. The credit points earned on the basis of Appraisal Reports will not be prorated
for promotion from E-0/E-1 to E-2A & E-2A to E-2B.

3.1.11
 8.2.3. In calculation of credit points for promotion from E-1 to E-2A & E-2A to E-2B,
the appraisal reports from the year 1982-83 onwards only as specified in these
rules, will be taken into account.

8.3. PROMOTION OF EXECUTIVES WITHIN CLUSTER B(E-3 TO E-4)

8.3.1. The Departmental Promotion Committee will consider executives who have
acquired 100 credit points on the basis of the appraisal ratings, subject to their
having minimum of two years service in the existing scale of pay, as prescribed in
Rules para 8.1.4 above.

8.4. PROMOTION BETWEEN CLUSTER(E-2B to E-3, E-4 TO E-5 & E-5 to E-6)
8.4.1. Promotion from one cluster to another will depend on availability of vacancies in
the next higher cluster as specified in Policy Para 8.1.
8.4.2. The eligibility criteria for promotion are specified at Policy Para 9.1.
8.4.3. Eligible executives in a given line of promotion will be assessed in respect of their
comparative performance on the basis of factors specified in Policy Para 8.2 as
follows :-

Factors Maximum attainable points

a) Average Credit Points(ACP) 50

b) Qualification 20
c) Length of service in the
Current scale of pay 15
d) Interview/assessment by DPC 15

Total : 100

a) Average Credit Points (ACP) : will be calculated as per Policy Para 8.3.
For the purpose of calculating ACP, prorating shall not be applicable.
For promotion between clusters the appraisal reports from the year
1983-84 only, for the number of years as specified in the rules, will be
taken into account.
EXAMPLE :
If an executive enters the scale in September 1984 and earns A, B and B
ratings in the appraisal reports for 1984-85, 1985-86, 1986-87, then his ACP will
be 40 (total points for A rating) + 30 (total points for B rating) + 30 (total
points for B ratings) divided by three, i.e.,
40+30+30 100
= = 33.3
3 3

3.1.12
 If he enters the scale in June, 1984, and earns A, B, B rating for the years
1984-85, 1985-86, 1986-87 then too his ACP will be 40+30+30=100 divided
by 3 = 33.3.
In case an executive earns two reports in any one year then his ACP will be the
summation of credit points of all the four reports divided by four, i.e., 2 reports in
1984-85 and one each in 1985-86 and 1986-87.
(b) Qualification Points: While there will be no minimum educational
qualifications for promotion except as provided in Rules Para 6.2,
points for qualifications will be awarded for different levels as prescribed
in Annexure-1.
(c) Length of Service: Length of service in a scale of pay will be reckoned
from the date an executive enters the scale as in Rules Para 2.8. Points
earned on the basis of length of service in the scale as provided in
Policy para 8.5 will be calculated at the rate of one point for every six
months of service in the scale.
8.4.4. MERIT LIST
In a given line of promotion the names of eligible executives will be listed in
descending order of the total points obtained by them on the basis of
performance (ACP), qualifications and length of service in the scale.
8.4.5. INTERVIEW
From the merit list, executives will be called for interview as per procedure
indicated below:
Only those executives who have a difference of 15 points compared to the first
executive on the list of executives under consideration, will be interviewed, if
there is only one vacancy.
If there is more than one vacancy, the reference point for the points difference
will be shifted to a lower position corresponding to the number of vacancies. For
instance, if there are two vacancies, all the executives with a point difference of
15 points with the second man on the list of executives under consideration will
be called for interview.
In case there is more than one executive with the same merit point (i.e., the sum
of ACP, qualification points and points for length of service in the scale) and one
of them falls within the zone of consideration, all of them will be called for
interview.
The executives from other Sections/Departments/Zones/ Functions who are
identified for rotation may be considered for promotion in their own line of
promotion. Transfers may be effected after promotion interview, either on
promotion or on parallel basis.
Interviews will be conducted by duly constituted Interview Committee/Selection
Boards.

3.1.13
 8.4.6. INTERVIEW COMMITTEES/SELECTION BOARD
Selection Boards will be constituted for regulating promotions from one cluster to
the next cluster. The Selection Boards for promotion from the scale of E-2B to
the scale of E-3, from the scale of E-4 to the scale of E-5 & from the scale of E-5
to E-6 will be notified.
8.4.7. The Board will use the model assessment form placed at Annexure-II to allot
marks on interview to each executive.
8.4.8. SELECT LIST
On the basis of the total marks obtained on performance, qualifications, length of
service in the scale and interviews, the final select list will be drawn up in
descending order and promotions will be made from this list in order of merit
subject to clearance from disciplinary and vigilance angle.
In case of tie in the final merit points, the executive with the higher ACP will be
given the promotion first if there is a tie even at this stage, the executive who
entered the scale earlier will be promoted first. In case of tie here, date of joining
the Company will be taken into account.
8.4.9. In those cases where interviews are held in June, panel of executives would be
maintained which shall be valid for a period of six months. There will be no
panel for the December interviews as the merit list would undergo changes with
availability of the new appraisal ratings after April.

9.0. METHODOLOGY FOR PROMOTION UNDER SERVICE CUM

PERFORMANCE LINKED PROMOTION SCHEME (SPLPS)
9.1. The criteria for consideration of executives for promotion under this scheme are specified
in Policy Para 11.1, subject to the executives having a minimum ACP of 30 on the basis
of the previous three years appraisal ratings.
9.2. These Executives will be promoted to the scale of pay of E-3 or E-5 on personal basis, as
the case may be and not to the cluster of E-3/E-4.
9.3. Executives who are promoted to the higher scale on personal basis will continue to do the
same work which they were doing in the previous lower scale.
9.4. When a vacancy occurs at the level of E-3 or E-5 as the case may be, these executives
will be eligible to be placed in the scale on regular basis, subject to the methodology
prescribed in Policy Para 8.0.

10.0. METHODOLOGY FOR SELECTION OF CANDIDATES FOR

SERVICE LINKED PROMOTION SCHEME (SLPS) (POLICY PARA
11.2)
10.1. All executives in the scale of E-2B and E-4, who do not have a C rating in any of the
last 3 appraisal reports & who have spent 10 years in the scale of E-2B or E-4 or 15 years

3.1.14
 in the scale of E-2A & E-2B taken together, as the case may be, will be promoted on
personal basis.
10.2. These executives will be promoted to the scale of pay of E-3 or E-5, on personal basis, as
the case may be, and not to the cluster of E-3/E-4.
10.3. Executives who are promoted to the higher scale on personal basis will continue to do the
same work which they were doing in the previous lower scale.
10.4. When a vacancy occurs at the level of E-3 or E-5, as the case may be, these executives
will be eligible to be placed in the scale on regular basis, subject to the methodology
prescribed in Policy Para 8.0.

11.0. CAREER PLANNING

11.1. Career planning for groups of executives will be undertaken as provided under Policy para
12.0.

11.2. FLEXIBILITY IN VACANCIES

Career advancement provided under Policy para 12.4.5 necessitates flexibility in
vacancies. Therefore, notwithstanding anything contained in the paras above, any
executive who earns three consecutive O ratings in a scale will be promoted to the next
higher scale irrespective of vacancy and line of promotion. On such promotion, the
executives concerned will be considered extra to the sanction in the higher scales but shall
be entitled to receive all benefits including the designation admissible to executives in the
regular scale. For the purpose of reckoning three consecutive O rating, the assessment
for the year 1985-86 will be considered as the first assessment.

11.3. EXECUTIVES WITH HIGH POTENTIAL

11.3.1. As per specifications laid down in Policy Para 12.4.1 and 12.4.2, a scalewise list
of all executives who have secured ACP of 45 or more over the last five appraisal
years will be maintained and regularly updated in the month of June every year.
Provided that, in the cases of executives who have completed a minimum period
of three years in the Company in the executive cadre and are eligible as per
Policy Para 12.4.1 to be included in this list, the ACP will be calculated over the
period spent as executive in the Company. Deletion of names from this list will
be as per Policy para 12.4.6.
11.3.2. JOB ROTATION FOR EXECUTIVES WITH HIGH POTENTIAL
The list of executives will be reviewed by a Committee consisting of respective
Managing Director/Executive Director/Director and all Functional/Zonal Heads,
for job rotation/inter plant rotation.
This Committee will be responsible for selecting people who will be rotated
among Sections/Departments/Zones/ Functions. The Committee will also identify
those officers at the levels of E-3/E-4 who need to be rotated on an inter-plant
basis.

3.1.15
 11.3.3. TRAINING FOR EXECUTIVES WITH HIGH POTENTIAL
The Personnel/Training Departments will do the training need analysis as
identified under the appraisal system and accordingly draw suitable training plans
on yearly basis, in respect of executives.
11.4. EXECUTIVES WITH LOW PERFORMANCE
11.4.1. As per specifications laid down in Policy Paras 12.5.1 and 12.5.2 a scalewise list
of all executives who have secured ACP of 10 or less over the last five appraisal
years will be maintained and regularly updated in the month of June every year
provided that in the cases of executives who have completed a minimum period
of three years of service in the Company in the executive cadre and are eligible
under Policy Para 12.5.1, to be included in this list, in their case, the ACP will be
calculated over the last three or four years as the case may be.
11.4.2. JOB ROTATION FOR EXECUTIVES WITH LOW PERFORMANCE
The list of executives will be reviewed by a Committee mentioned in Rules Para
11.3.2 to consider them for job rotation. This Committee will be responsible for
rotating these executives to Sections/Departments/Zones/ Functions which may
suit their aptitude better and thus result in improvement of their performance.
11.4.3. TRAINING FOR EXECUTIVES WITH LOW PERFORMANCE
The Personnel/Training Department will be responsible for organising suitable
training programmes related to the training needs identified for these executives
under the appraisal system.
11.5. AVERAGE PERFORMERS
11.5.1. In June every year, the Personnel Department in consultation with the Principal
Heads will identify 5% of all executives having an ACP of 20 to 44 in the last five
years, irrespective of scales, in their respective areas, to plan for their job rotation
and other developmental requirement.
11.5.2. The Personnel Department will be specifically responsible for co-ordinating all
activities in connection with the rotation, development and training of executives
identified as at Rules Paras 11.3.1, 11.4.1, 11.5.1.

12.0. PROBATION
12.1. The probation period of an executive on promotion will be regulated as indicated below:
12.2. The probation period of executives promoted within clusters and between clusters will be
six months and will be reckoned from the date of assumption of charge of the post in the
higher scale of pay.
12.3. On satisfactory completion of probation period, the executive will be confirmed in the
higher scale. The executive will not be regarded as having been confirmed, unless an
order of confirmation is issued to him in writing. At the end of the stipulated period of
probation, if an executive is not confirmed, he may be informed of the position in writing
within one months time.

3.1.16
12.4. The annual increment shall be granted to an executive on probation, only on satisfactory
completion of the period of probation, but the monetary benefit in respect, thereof shall be
admissible with effect from the normal date of increment.
12.5. The performance of an executive on probation shall be assessed as per the proforma
prescribed at Annexure-III.

13.0. EXTENSION OF PROBATION PERIOD

13.1. The probation may be extended if work and conduct during the period of probation is not
satisfactory, based on the report mentioned in Rules Para 12.5.
13.2. Probation may be extended, not more than once, by a period not exceeding six months.
13.3. The decision to extend the probation shall be communicated within one month of the
expiry of the probation period.
13.4. In the event of the probation period being extended, the executive shall not earn the
normal increment either during the original probation period or during the extended
period, and his date of increment shall be postponed by the period for which probation is
extended. If he is confirmed in the scale on satisfactory completion of the extended
period of probation he shall draw his increment from the date of completion of extended
period of probation.
13.5. If the work and conduct of an executive is not found satisfactory even during the extended
period of probation, he shall be placed back in the scale from which he was promoted
(both for promotion within the cluster as well as between the cluster) and he will be
considered for promotion next only after completing one year in the scale.

14.0.TRANSFER

14.1. PARALLEL TRANSFER

If an executive is transferred parallely to another Section/Department/Zone/Function/Unit
and if upon his request to reconsider the transfer, he is permitted by the copetent authority
to continue in his present post or place of posting, he will not be considered for promotion
for a period of one year if he is already eligible for promotion or if he is not eligible for
promotion, from the date he becomes eligible for it.

14.2. TRANSFER ON PROMOTION

If any executive is promoted and transferred to another Department/Zone/Function/Unit
and if, upon his request to reconsider the transfer, he is permitted by the competent
authority to continue in his existing grade and post/place of posting, he will not be
considered for promotion for one year from the date he had been considered for
promotion.
14.3. A period of one month will be given to an executive to join his new place of posting on
transfer. This will be relaxable to one more month in case the Management is convinced
of any genuine difficulty faced by an executive in assuming charge of the higher post. If

3.1.17
 the executive does not assume charge of the higher post within two months of issue of the
order, his promotion order will stand cancelled and he will be treated at par with
executives refusing to accept transfer.

15.0. LEAVE WITHOUT PAY

15.1. An executive taking leave without pay for a period exceeding three months, will be
deemed not to have earned any appraisal during the period, i.e., the rating he earns for
the one year will be prorated for the period he actually worked.
15.2. Where the M.D. considers a case genuine he may waive the prorating of appraisal for the
executive availing leave without pay for more than three months.

16.0. OFFICIATING
16.1. Short term officiating
If an executive is on leave/training tour etc., for a period not exceeding 3 months,
officiating may be allowed to the senior most executive in the next available lower scale
amongst executives in the same section/LOP/Department.
16.2. Long term officiating
If an executive is on leave/training/tour etc., for a period exceeding three months,
officiating will be allowed to the executive who is on top of the merit list in the next lower
scale in the line of promotion.
16.3. However, officiating may be allowed only in case of exigencies of work.
16.4. The period of officiating will not count for eligibility period for consideration for promotion
or for increment in the higher scale.
16.5. During officiating if the annual increment falls due, it will be allowed in the substantive
scale only and pay refixed in the higher scale.
16.6. If an executive gets regular promotion while he is officiating for the higher post, his
eligibility in the higher scale will be counted from the day he gets his regular promotion.
16.7. On return of the officer from leave/training/tour etc., the executive officiating in the higher
post will be reverted to his original scale of pay.

17.0. PROCEDURE TO BE FOLLOWED IN RESPECT OF CANDIDATES

CALLED FOR INTERVIEW FOR PROMOTION BUT DO NOT
ATTEND/DECLINE OFFER
17.1. If an executive is not interested in attending the interview for promotion for personal
reasons, he will not be considered for promotion for a period of one year from the date on
which he was scheduled to be interviewed, and this should be communicated to him.
17.2. If an executive is unable to attend the interview for promotion because he is sick or on
leave or training, within India then such cases would be dealt with as follows :-

3.1.18
 a) That executive will be informed at his address about the interview or if he is unable
to attend, a post will be kept vacant and a panel of other officers in the merit list will
be maintained. The name of the executive on leave may also be kept on the panel.
If the executive joins duties within three months of the date of the original interview,
the selection committee will meet him on his return and give him marks for the
interview. The executive with maximum total points in the panel will now be
promoted to the higher posts.
b) In case the post cannot be kept vacant, the top most executive in the panel prepared
at the time of the interview may be promoted to the post on officiating basis. In
case the position changes after the executive on leave is interviewed, the former will
be reverted to the scale and the executive securing the maximum marks will be
given regular promotion from the date of the original promotion. However, he will
get the financial benefits only from the date he joins the new post.
If the position does not change even after the interview of the executive who had gone on
leave, the executive officiating will be regularised in the scale with effect from the date of
the original interview.
c) The exercise of holding the separate interview for such executives should be
completed within three months from the date the first interview took place or soon
after the return of the employee. Till the executive is substantively promoted the
vacancy can be filled only on temporary/officiating basis.
17.3. If an executive attends the interview but indicates in the interview that he is not interested
in promotion due to any reason, the fact should be recorded so and he would not be
considered for promotion for a period of one year from the date of interview, and this
should be communicated to him.

18.0. INCREMENT
18.1. Additional increments will be given to executives as prescribed at Policy Para 15.0.

19.0. PROCEDURE FOR DEALING WITH PROMOTIONS/

CONFIRMATION OF EXECUTIVES PENDING ENQUIRY/
DISCIPLINARY PROCEEDINGS AND AFTER
19.1. The detailed procedure for dealing with promotion/ confirmation of executives pending
enquiry/disciplinary proceedings and after is given at Annexure-IV.

20.0. PRE/POST SELECTION TRAINING

20.1. The executives in E-1 scale for whom it is essential to pass Pre-selection Training for
promotion to executive cadre and have not done so, would not be eligible for promotion
to E-2A scale, till they pass the same.
21.0. The right to fill up any post through promotion/transfer or by circular etc.will vest with the
Company.

3.1.19
22.0. TENURE
22.1. These rules shall remain in force for a tenure as may be decided by Chairman-FSNL/
Board.
22.2. The Chairman-FSNL/Board reserves to himself the right to withdraw, review, alter and/or
amend the rules.
22.3. These rules shall supersede all the rules, regulations, orders and instructions issued earlier
on the subject, in so far as they are inconsistent with these rules.

3.1.20
 ANNEXURE-I
(Reference Rule Para 8.4)

QUALIFICATION RATING
Category of posts Qualification Points

1. TECHNICAL a) Doctorate in Engg. or 20

equivalent in concerned area.

b) Post-graduate Degree or 18
equivalent in concerned area.

c) Engg.Degree or equivalent 16
in concerned area.

d) B.Sc./Diploma 10

e) Matric 6

2. NON-TECHNICAL a) Doctorate Degree with 20

recognized professional
qualification in concerned area.

b) Hons./Masters Degree with 16

recognized professional
qualification in concerned area.

c) Doctorate Degree in 16
concerned area.
d) Hons./Masters Degree only. 12

e) Graduate with recognized 12

professional qualification

f) Graduate only 8

3. FINANCE & ACTS. a) Professional qualification 20

like CA/ICWA.

b) Pass in the Departmental 10

Examination for Accounts or
SAS Accountants Examination.

3.1.21
MINIMUM EDUCATIONAL QUALIFICATION REQUIRED
FOR PROMOTION WITHIN EXECUTIVE POSTS FOR
NON-TECHNICAL DEPARTMENTS

PERSONNEL & ADMINISTRATION

Minimum Qualification
a) Bachelors Degree Upto the level of
Jr.Manager.

b) Graduation with Degree or Dip. Posts of Asst.Mgr-II

in Labour & Social Welfare and above.
from the recognised University
or Institute. Should have also
passed Welfare Officers Exam
conducted by the State Govt.

FOR MATERIALS MANAGEMENT DEPTT.

a) Bachelors Degree Upto the level of Jr.

Manager.

b) Bachelors Degree with Posts in the scale of

professional qualification, i.e., Asst.Manager-II &
Degree or Diploma in Matls. above.
Management course from a
recognised educational institute.

FOR FINANCE & ACCOUNTS DEPTT.

a) Graduation with a pass in the Upto and including the

Departmental exam for Accounts posts of Asst. Manager.
or SAS Accounts exam of the
Government.

b) Professional qualification Posts of Dy.Manager &

like CA/ICWA. above.

3.1.22
 ANNEXURE-II

(Reference Rule Para 8.4.7)

FERRO SCRAP NIGAM LIMITED

ASSESSMENT SHEET

(FOR USE IN PROMOTION FROM E-2b TO E-3 & E-4 TO E-5)

Name of Average Qualifi- Points Total Interview Aggregate

candidate Credit cation on points Merit
Points Points length of perf. + Points
of quali-
service fication +
length of
(Max=50) (Max=20) (Max=15) service (Max=15) (Max=100)

1 2 3 4 5 6 7

3.1.23
NOTES

APPRAISAL REPORT RATING

RATING CREDIT POINTS

O 50
A 40
B 30
C 15

ACP = Summation of points of the last three appraisal ratings or for the years spent in the scale,
whichever is less, divided by the number of appraisals taken into account.
Qualification = As per Annexure-I
Length of Service Points = One point for each half year spent in the scale.

3.1.24
 ANNEXURE-III

(Reference Rule Para 12.5)

FERRO SCRAP NIGAM LIMITED

PERFORMANCE APPRAISAL REPORT DURING

PROBATIONARY PERIOD/ EXTENDED
PERIOD OF PROBATION

(QUARTERLY ASSESSMENT)

(PROBATION PERIOD - SIX MONTHS)

Name________________________ Department________________________

T.No.________________________

Period Job Conduct/ Attendance/ Appreciation/

performance Behaviour Punctuality reprimands,
if any.

I Quarter Satis-
factory

Unsatis
factory

II Quarter Satis-
factory

Unsatis
factory

In case of unsatisfactory performance, please indicate action taken for correction.

3.1.25
RECOMMENDATIONS :

The employee may be confirmed in the post : Yes / No

Probation may be extended for : 3 Months/6 Months

The employee may be reverted to the grade : Yes / No

from which he was promoted

Signature :

Date : Name :

Designation :

Views of the Authority empowered to approve confirmation

Signature :

Date : Name :

Designation :

3.1.26
 ANNEXURE-IV

(REFER RULE PARA 19.0)

PROCEDURE FOR DEALING WITH PROMOTION/

CONFIRMATION OF EXECUTIVES PENDING INQUIRY/
DISCIPLINARY PROCEEDINGS AND AFTER

COMPLAINTS / INVESTIGATION STAGE.

a) Preliminary investigations may be taken up on the basis of complaints received against
employees.
b) In the case of vigilance investigation taken up against executives drawing a salary of
Rs.1000/- and above, the final report is submitted to the Central Vigilance Commission,
who advise regarding the action to be taken.
c) On receipt of the final report of the advice of the Central Vigilance Commission, the report
is examined by the appropriate authority to consider whether there is sufficient material
for initiating regular disciplinary proceedings against the employee.

DISCIPLINARY PROCEEDINGS STAGE

a) Regular disciplinary proceedings are initiated by issue of Chargesheet and appointment of
enquiry committee.
b) The employee may be placed under suspension pending completion of disciplinary
proceedings.
c) In case the Central Vigilance Commission tender their advice regarding action to be taken,
the case is required to be submitted to the commission again after the receipt of
explanation/completion of the enquiry for their advice regarding action to be taken.
PROMOTION/CONFIRMATION PENDING INQUIRIES/INVESTIGATION
The case of an employee whose conduct is under departmental enquiry or investigation
by Vigilance Department or CBI or any other agency, may be considered for promotion
on merit as if there is no case against him. The Selection Board or the competent
authority should not be prejudiced in determining the suitability of an employee because
of his involvement in the departmental or vigilance case.
In case the employee is found suitable for promotion on merit, his case will be dealt as
follows :-
i) His promotion will not be withheld unless a decision has been taken by the
competent authority to start regular proceedings against him by issuing the charge-
sheet;

3.1.27
 ii) His promotion will be withheld if he is under suspension.
The same principles would be followed in respect of confirmation also.

PENDING DISCIPLINARY PROCEEDINGS

If disciplinary proceedings against an employee have been initiated by issuing a charge-sheet either
for minor penalty or for major penalty, his case may be considered by the Selection Board/
Competent Authority as if there is no case against him. In case the employee is considered suitable
for promotion, his promotion or confirmation, as the case may be, will be withheld till the
conclusion of the disciplinary proceedings.

PENDING PROSECUTION
If an employee is being prosecuted in a Court of Law, his case will be dealt with as at para above.
PROMOTION/CONFIRMATION AFTER A PENALTY LISTED IN THE STANDING ORDERS/
CONDUCT, DISCIPLINE AND APPEAL RULES, HAS BEEN IMPOSED.
In case where an employee has been punished as a result of disciplinary proceedings or convicted
by a Court of Law, the following procedure shall be observed for giving him promotion/
confirmation.
a) Wherever an order imposing a penalty specifies the period of penalty, during the
pendency of such period the employee concerned would not be promoted.
b) Wherever an order imposing a penalty does not specify any period, the Selection Board/
Competent Authority may take into account the penalty imposed upon the employee in
determining his suitability for promotion.

FILLING UP OF POST
a) If a decision is taken to withhold the promotion of an employee as envisaged above, and
it is considered that the post cannot be kept vacant, it may be filled on officiating basis.
b) After the employee concerned is completely exonerated, he should be promoted without
further review.
c) On promotion, the date of entry of such an employee in the higher scale should be fixed
from the date he would have been ordinarily promoted if there was no case against him.
d) On promotion, the pay of such an employee should be fixed to ensure that he receives
such increment(s) which he would have got if his promotion was not withheld. However,
he would not get arrears for fixation of pay with retrospective effect and he would draw
the pay so fixed in the higher grade with effect from the date he actually takes over the
higher post.

RESIGNATION
a) During the complaint/investigation stage the acceptance of resignation should not be
withheld for this reason alone.

3.1.28
b) During the disciplinary proceeding stage, the acceptance of resignation should not be
withheld, unless the appropriate authority has reasonable grounds to expect that the
employee is likely to be dismissed from the service of the Company.
c) If the employee is released during the pendency of disciplinary proceedings, the Company
should inform his prospective employer, if it is a public undertaking/ Government
Department, about the pendency of such proceedings.

EXTENDED PROCEEDINGS
In case where the disciplinary/court proceedings may not be concluded even after the expiry of two
years from the date from which the officer had first been found suitable for promotion but his
promotion had been kept in abeyance because of such proceedings, provided the officer is not
under suspension, the competent authority may review his case to consider:-
a) Whether the chargesare grave enough to warrant continued denial to promotion and the
promotion of the officer will be against Company interest.,
b) Whether there is no likelihood of the case coming to a conclusion in the near future., and
c) The delay in the finalization of proceedings, whether departmental or in a Court of Law, is
not directly or indirectly attributable to the officer concerned.
In case the competent authority comes to the conclusion that it would not be against the
Company interest to allow adhoc promotion to the officer, his case may be considered in
the normal course after expiry of the two-year period to decide whether the officer is
suitable for promotion on adhoc basis. Where the officer is to be considered for adhoc
promotion, the selection board may make its assessment on the basis of the totality of the
officers record of service and the fact that the disciplinary or court case is pending should
not affect assessment regarding the suitability for adhoc promotion. If the officer is
recommended by the selection board for adhoc promotion, his actual promotion will be
subject to the decision of the competent authority who may take into account the
seriousness of the charge, the nature of the evidence available, the stage at which the
disciplinary/court proceedings has reached, the probable nature of the punishment that
may be imposed on the officer if the charges against him are established, the likelihood of
misuse of the official position which the officer may occupy after his adhoc promotion and
the record of service available upto date.
Where the departmental proceedings or court case have arisen out of investigation
conducted by the Central Bureau of Investigation, the competent authority should also
consult the Central Bureau of Investigation and take their view into account.
After a decision is taken to promote an officer on adhoc basis as indicated above, an order
of promotion may be issued making it clear in the order itself that:-
i) The promotion is being made on purely adhoc basis and the adhoc promotion will
not confer any right for regular promotion, and

3.1.29
ii) The promotion shall be until further orders and it should also be indicated in the
orders that the competent authority will reserve the right to cancel the adhoc
promotion and revert the officer to the post from which he was promoted, at any
time.
If the officer concerned is acquitted in the court proceedings on the merits of the case or
exonerated in departmental disciplinary proceedings, the adhoc promotion, already made
may be confirmed and the promotion treated as a regular one from the date of the adhoc
promotion with all attendant benefits.
Where the acquittal in a court case is not on merits but purely on technical grounds, and
the company either proposes to take the matter to a higher court or to proceed against the
officer departmentally, the competent authority may review whether the adhoc promotion
should be continued.
Whether the acquittal by court is on technical grounds, if the Company does not propose
to go in for appeal to a higher court or to take further departmental action, action should
be taken in the same manner as if the officer had been acquitted by the court on merits.
If the officer concerned is not acquitted/exonerated in the court proceedings nor the
departmental proceedings, the adhoc promotion already granted should be reviewed as
follows :-
a) Wherever an order imposing a penalty, specifies the period of penalty, during the
pendency of such period, the employee concerned would not be promoted. The
adhoc promotion already granted should be brought to an end by the issue of the
further order contemplated in the order of adhoc promotion, and the officer
concerned reverted to the post from which he had been promoted on adhoc basis.
After such reversion, the officer concerned may be considered for future promotion
in the normal course.
b) Wherever an order imposing a penalty does not specify any period, the selection
board/competent authority may take into account the penalty imposed upon the
employee in determining his suitability for promotion.

3.1.30
 EXECUTIVE PERFORMANCE APPRAISAL

Up to E-4 Level

1.0 OBJECTIVE
(a) To integrate company and individual goals through a process of performance assessment
linked to achievement of organisation objectives.
(b) To increase awareness of Targets/Tasks and the responsibility of officers at all levels to
ensure fulfilment of company objectives.
(c) To ensure a more objective assessment of performance and potential.
(d) To distinguish between different level of performance on relative basis and to indentify
officers with potential to grow in the organisation.
(e) To enforce the discipline of the normal distribution in performance and to ensure that
assessment of individual officers does not violate the group norms.
(f) To identify the developmental action to be taken to enhance the performance ot the
officer.

2.0 STAGES OF APPRAISAL

With these objectives in view, the appraisal system has been bifurcated into two parts :

Stage-I Reporting Phase (a) Self Appraisal and Review Discussion

(b) Perfromance Assessment
(c) Development Plan

Stege-II Evaluation Phase (d) Final Assessment

3.0 STAGE-1 APPRAISAL

The reporting phase consists of Self Appraisal and Review Discussions, Performance Assessement
and Development Plans.

3.1 SELF APPRAISAL

The self Appraisal to be filled in by the appraisee, has been structured to give the appraisee. an
opportunity for reporting on his performance, his outstanding achievements, the difficulties faced
and his suggestions for improving performance.
The appraisee can also comment upon his developmental needs.
To remove the effect of recency, the self appraisal will be conducted twice in a year, a mid year
review in October and an annual review in April.

3.2.1
3.2 TARGETS/TASKS
To introduce an element of objectivity, officers will be assessed with reference to pre-set targets/
major tasks assigned. In major production department annual targets are already assigned. Where
precise quantitative targets can not be set, the assessment will be on the basis of major tasks/
assignments, to be completed during the year. The intention is to ensure that as a system officers
are made aware of their specific tasks/ responsibilities and are assessed on the basis of their
fulfilment of the tasks/ responsibillties. In the operation of the system, it is possible that precise/
quantitative targets can be set only for certain specific levels of officers. For others, wherever
individual targets cannot be fixed, group targets may be determined, but the role of each officer in
the group in fulfilling the laid down targets or tasks must be clear and specific. It is necessary that
each officer should, in the beginning of the year, be made aware of the tasks/ targets/ assignments
against which his performance will be measured. This exercise of setting targets/ tasks, which is an
essential feature of the new systems, must be completed before the beginning to the assessment
year and clearly communicated to each appraisee by reporting officer.
The appraisee wil receive part 'A' of the apprasal form in September for the Mid-year review.

The appraissee will record :

(a) The targets/ Task assinged for the year.
(b) The extent of fulfilment of the targets/ tasks up to the mid-year
(c) Constraints faced-the constraints which were not taken into account while fixing the target
and which were outside the appraisee's control
(d) Suggestion for improvement of performance

During the annual performance review in April the appraisee will record :
(a) The extent of fulfilment of tasks for the year
(b) Constraints faced
(c) Suggestions for improvement
(d) Highlights of performance during the year-any outstanding achievement/ targets achieved
beyond stated norms.
(e) Development needs of the appraisee
For phased implementation of the system, officers above E-5 will be assessed on the basis of
taegets / tasks for the assemssements years 1985-86 & 1986-87 (as explained above) Assessment
for officers in E-1 to E-4 grades for the above years will be guided by the significant contribtion /
major tasks performed by the officers and not on the basis of pre set targets.
The intention of the system, however, is to introduce pre set goals as a method of assessment for all
officers after intensive trainig exercises are conducted in goal setting.

3.3 REVIEW DISCUSSIONS

In the new system, Perfromance Review discussion between the appraisee and the reporting officer
are envisaged both during the mid-year review in October and the annual review in April.

3.2.2
The discussions should cover :-
(a) Fulfilment of Tasks/Targets
(b) Action plans for improvment of Target/Tasks achivement, and
(c) Strength and developmental needs of the appraisee.
The review discussions are meant to be, both an opportunity for giving and receiving feedback and
a developmental tool to improve perfromance. These discussions should aim at introducing a
culture where the appraisee and the Repoting officer are able to come together and discuss
performance in a matured manner on a continuing basis.
For the performance review to be successful, it is neccessary that the reporting officer assess
performance against targets/tasks on a continuing basis, and when possible maintain a record for
reference.

3.4 PREFORMANCE ASSESSMENT

3.5 To improve objectivity of assessment performance will be assessed on the basis of

following broad factors :-
(a) Job performance factors
(b) Managerial ability factors
From E-1 to E-4 in the overall assessment, 66% weightage is given to Job performance factors and
34% weightage to Managerial ability factors. from E-5 onwards, equal weightage is given to job
performance factors and Managerial ability factors.

3.6 WEIGHTS
Individual factors falling within the above broad areas, including weightages, for E-0 TO E-4 and
E-5 and above are indicated below :-

3.7 (A) PERFORMANCE FACTORS

Weightages

E-0 to E-4 E-5 and above

1. Quality of Output 5 4
2. Quantity of Output 5 4

3. Cost Control 5 4
4. Job knowledge & skill 5 3

20 15

3.2.3
(B) MANAGERIAL ABILITY FACTOR

Weightages

E-0 to E-4 E-5 and above

1. Planning and Organising 1 1

2 Initiative 1 1
3. Team spirit 1 -
4. Commitment & Sence of Responsibility 1 1
5. Cmmunication 1 2
6. Trainigh & Development of Subordinates 1 2
7. Problem Analysis and Decision making 1 2
8. Management of Human Resources 1 3
9. Literal CO-ordination 1 2
10. Discipline 1 1

10 15

TOTAL (A+B) 30 30

3.8 FACTOR SCORE

Each of the key factors has to be assessed on a six point scale, the numerical assessment will then
be multiplied by the specified weight of each factor, indicating the relative importance of the factor
to arrive at the factor score.
The assessment of each factor will be done separately by the Reporting officer, Reporting officer
(O), if applicable and the Reviewing officer, for each of the 14 factors, there will, therefore, be a
factor score awarded by the Reporting officer, Reportng officer (O) and the Reviewing officer
Reporting Offcer (O) is applicable only in respect or executives in service / staff departments
working in other departments.

3.9 TOTAL SCORE

In the new system, weightages have been alloted to the assessments of the reporting officer 1/2
Reporting officer (O) (1/4 if applicable) and the Reviewing Officer (1/4 if reporting officer (O) is
applicable or 1/2 in other cases). The total appraisal score of each appraisee is obtained by
applying the above weightages, to the summation of 14 factors scores and then adding up the
respctive figures for the reporting officer, Reporting offcer (O) and the reviewing officer.

3.2.4
EXAMPLE

Concerned Officer (Appraisee) Total Factor Score Weightage Weighted Score

Reporting officer 140 1/2 70

Reportig officer (O) 120 1/4 30

Reviewing officer 130 1/4 32.5

Total Appraisal Score = 132.5

Since total numnber orweights are 30 and assessment of ecah criteria is on a six point scale,
starting from1, the total appraisal score can vary from 30 to 180.
The total appraisal score is a uniform and comprehensive index combining both job performance
as well as managerial ability factors.

3.10 DEVELOPMENT PLAN

The Development plan has been constructed as a positive instrument for obtaining information
about the future attention to be devoted to the appraisee in terms of (a) training (b) job
enlargement and (c) job rotation. This developrment plan of the appraisee would be made on the
basis of (a) perfromance strength (b) development needs (c) job suitability, which will be indicated
by the reporting officer and the Reviewing officer.
In the development plan. the development needs are envisaged as a positive instrument and not
necessarlly as a weakness or shortfall. It is possible that an appraisee may be an above average
performer but still have development needs to improve in existing area or in potential.

4.0 STAGE-II APPRAISAL

The evaluation is done by the Higher Authority assisted by a Committed called "performance
review committee."

4.1 RELATIVE ASSESSMENT

The Higher Authority will relatively assess the officers under control, The objectves of the relative
assessment are :-
(a) To indentify in a group with differing levels of performance not in absolute terms, but
relative to each other.
(b) To ensure that the distribution of assessment of officers conforms, more or less. to the
following group norms.

Category-I Appraisee (High performance) Not more than 10%

Category-II Appraisee Not more than 20%

Category-III Appraisee Not more than 45%

Category-IV Appraisee (Low performance) Not more than 25%

3.2.5
For the purpose of relative assessment by the Higher Authority, officers will be clubbed into
conveniently large groups on depertmental/zonal basis.

4.2 PRIMARY GRADING :

After the Stage-1 Appraisal has been completed, and the total appraisal score obtained, forms of
officers in the group will be forwarded to the Higher Authority.
The Higher Authority will arrange that all the officers in the group are listed in descending order of
their total appraisal score (from 30 to 180).
The Higher Authority will then do the primary grading on the basis of the total appraisal score
obtained.
Top 25% in the group...................................................................................A
Middle 50% in the group ..............................................................................B

Bottom 25% in the group .............................................................................C

4.3 The final grading will be done by the performance Review Committee headed by the
Higher Authority. The Committee will devote its attention to the top 25% and the bottom
25% performance in the group & make the following decisions,
(a) Which officers out of the primary grade A can be classified as O on the basis of
their relatively higher perfomance and potential (not more than 20% of primary
grade A)
(b) Which officers out of C primary grade, can be classified as "C" on the basis of
their relatively low performance and potential (not more than 20% of primary
grade C)
(c) The Recommedation of Committee regarding the job rotation plan of the officers
on the basis of the input made available in the development plan.
To indentify the O officers, the Committee will consider all category A officers. This is
necessary to ensure, that differences in assessment by individual reporting/reviewig officers
does not influence the decision of the committee. Indvidual officers will be assessed by the
committee on basis of the following criteria :
(a) Performance of the department/section where the officer is working
(b) Inter-departmental disparities in assessment
(c) Committes's own assessment
The Committee may also refer the previous year's appraisal rating, if required. With the
above procedure the Committee will indentify officers with relatively higher periormance
and classify them as O.
The percentages indicated above are illustrative, it is possible that the review committee
may come to the conclusion that no one is O or that a little more or less than 5% are O.
Percentage of C grade, if necessary, may vary within a range of 15% to 25% in an
appraisal group. The percentage of B grade, would accordingly get adjusted between
45% to 55%. This is within the discretion of the committee.

3.2.6
4.4 COUNSELLING
In case officer is calssified as C and declared unpromotable, the Higher Authority will call the officer
to discuss his performance and counsel him on the need as well as the action plan for
improvement.
After the counsellng, Higher Authority shuld address a personal letter to the appraisee recalling the
discussion. A copy of this letter should be attached with the appraisal form.

5.0 OUT PUT

The output from the new appraisal system is therefore available in terms of :
(a) Classification of officers with different levels of performance.
O High Performers (Approximately) = 10%
A High Performers (Approximately) = 20%
B High Performers (Approximately) = 45%
C Low performers (Approximately) = 25%

(b) Training needs analysis linked to development needs.

6.0 SPECIAL PROVISIONS FOR OFFICERS DIRECTLY REPORTING

TO MANAGING DIRECTOR
For officers directly reporting to M.D. there will be no reviewing officer or committes. M.D. as the
reporting officer will Appraise such officers and 100% weigteges will be attached to such
assessment. M.D. will also discharge the function of Higher Authority and indicate the final grading
(O, A, B, C,) of the officer. There will be bo primary grading.

7.0 APPRAISAL FORM

The Appraisal form for officers of level of E-5 and above is enclosed. for E-0 to E-4, the form would
undergo slight changes as indicated in para 3.7.

3.2.7
 FERRO SCRAP NIGAM LIMITED

PERFORMANCE APPRAISAL

FOR EXECUTIVES OF THE LEVEL E-0 TO E-4

200...............

UNIT................................

Name : Shri/Smt./Ku.

Ticket No. Designation

Department Grade

Date of birth Date of Joining

Date of Entry into Qualification

Present Grade

(To be filled in by Personnal Department)

3.2.8
1.0 SCORE
This form will be used to assess the perfrmance of excutives and to plan for their proper
development.

2.0 OBJECTIVE
(a) To integrate Company and individual goals through a process of performance assessment
linked to achievement of organisation objectives.
(b) To increase awarness of Targets/Tasks and the responiblity of officers at all levels to ensure
fulfilment of company objectives.
(c) To ensure a more objective assessment of performance and potential.
(d) To distinguish between differing levels of performance on reative basis and identify officer
with potentials to grow in the organisation.
(e) To enforce the discipline of the nomal distribution in performance and to ensure that
assessment of individual officers does not violate the group norms.
(f) To indentify the developmental action to be taken to enhance the performance of officer.

3.0 FORM
(A) Self Appraisal
(B) Performance Assessment
(C) Development Plan
(D) Final evaluation and grading

4.0 INSTRUCTIONS
(1) Report should by based on direct knowledge of the Appraisee's performance for the entire
period and not on recent achievements.
(2) Each item should be separately considered and assessed on the basis of current position
only.
(3) The forms will be received by the Reporting Officers latest by Sept. 15. The completed
forms must reach personnel department, latest by 30th MAY
(4) Targets and tasks should be set in the beginning of the year by the Reporting Officer, and
clearly communicated to the appraisee.
(5) Performance Review Discussion should be held between the repoting officer and the
Appraisee twice in a year.
(6) Conuseling to the C category officers should be done by the Higher Authority at the end
of the assessment. Counselling should be confirmed through a personal letter from the
Higher Authority.

3.2.9
 PART-A

SELF APPRASAL
(To be filled in by the appraisee)

Period of Appraisal 1st April 200 to 31st March 200

Name :

Designation :

Ticket No. :

Deptt. / Division :

GUIDE LINES
GENERAL- Self Appraisal form is to be filled up twice in a year, as per the following calender

Date of Completion

Sl. Activities For Half Yearly For Annual

Assessment Assesssment

1. Reporting Officer to give the form 21 September 21 March

to the Appraisee

2. Appraisee to return completed form 7 October 7 April

to Reporting Officer

3. Completion of Review Discussions 31 October 14 April

between Appraise and Reporting Officer

FOR THE APPRAISEE

1. Fumish factual information - avoid evaluation of perfornance.
2. Targets/Tasks communicated at the begining of the year by the reporting officer should be
entrered in the form by the Appraisee.
3. Targets/Tasks should be precise and quantitative to the extent possible.
4. Record only constraints not taken into account while setting targets and which are outside
appraisees control.
5. Fullfilment of Targets/Tasks should be recorded in October and in April.

3.2.10
6. Highlight of performance should incliude tragets achevied beyond stated noms innovative
work processes cost reduction reduction measures etc.
7. Develomental need should mention specific areas, which in the appraisees opinion need
to be improved for enhancing performance.
8. All entries should be made in visible writing or typed.
9. Attach separate sheet if space provided is not sufficient.

FOR PERFORMANCE REVIEW DISCUSSION

1. Review of performance and all its related aspects.
2. Any revision in the target in the first half of the year should be incorporated during the
mid year review discussions.

3.2.11
Name ..............................................................................................................................................

Design. ............................................................................................................................................

Targets Set / Tasks Assigned for the year

Appraisal for the period between 1st April to 30 th September

Targets/Tasks Fulfilled Constraints Faced Suggestions for Improvement

Signature of the Appraisee

3.2.12
 Appraisal for the period between 1st April to 30 th September

Targets/Tasks Fulfilled Constraints Faced Suggestion for Improvement

Highight of performance Development Needs

Signature of the Appraisee

3.2.13
 Perfomance Review Discussions*

Period Outcome of Review Discussions Signatures

Half year ending

30th September

Appraisee

Reporting Officer

year ending
31st March

Appraisee

Reporting Officer

1. To Review fulfillment of targets/tasks.

2. To develop action plan for improvement of target achievement.

3. To discuss with the Appraisee his strengths and developmental needs.

3.2.14
 PART-B

PERFORMANCE ASSESSMENT

GUIDE LINE
(1) There are 13 factors for performance assessment divided into two groups :-
(a) Job performance factor
(b) Potential factor
(2) Each factor has been given a weightage to indicate its importance in the overall
assessment.
(3) Each factor is to be assessed on a 6 point scale. Tick mark the relevent scale.
(4) Each factor score = scale point (tick marked) x weightage.
(5) Reporting Officer (O) is applicable for service/staff appraisees and fuctional head in the
plants.
(6) Any other comments on the perfomance of the appraisee may be made in the space
provided in this part.

(A) JOB PERFORMNCE FACTORS

A-1 QUALITY OF OUTPUT

APPRAISAL RATING

A-1 Quantity of Output

Extent of target fulfilment completion of assinged task

WEIGHTAGE = 5

SCALE POINTS
Scale Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.15
 APPRAISAL RATING

A-2 QUALITY OF OUTPUT

General excellence of output, the extent of
work free from errors
WEIGHTAGE = 5

SCALE POINTS Scale

Point Weightage Factor Score
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

A-3 COST/TIME CONTROL

Aware of Cost/Time aspects in the job Optmunm
utilisation of available resources/time and reduction of waste
WEIGHTAGE = 5

SCALE POINTS
Scale
Point Weightage Factor Score
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.16
 APPRAISAL RATING

A-4 JOB KNOWLEDGE & SKILL

Knowledge pertaining to the area of the work and
related areas.
WEIGHTAGE = 5

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

PART(B) MANAGERIAL ABILITY FACTORS

APPRAISAL RATING

B-1 PLANNING & ORGANIZING

Ability for anticipating work need & development
of effective action plans in relative to tasks
WEIGHTAGE = 1

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.17
 APPRAISAL RATING

B-2 INITATIVE
Ability to be self-reliant and move forward on a task
without outside direction
WEIGHTAGE = 1

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

B-3 TEAM SPIRIT

Willingness to Co-operate with colleague and subordinate

WEIGHTAGE = 1

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.18
 APPRAISAL RATING

B-4 COMMITMENT & SENCE OF

RESPONSIBILITY Dedication to work and company objective, relibiliy to
complete assingned tasks.
WEIGHTAGE = 1

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

B-5 COMMUNICATION
Skill and desire to share available iformation
with all concermed
WEIGHTAGE = 1

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.19
 APPRAISAL RATING

B-6 TRAINNING AND DEVELOPMENT

OF SUBORDINATES Interest taken in providing training and other
opportunities to subordinates for development
WEIGHTAGE = 1

SCALEPOINTS
Scale
Point Weightage Factor Score
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

B-7 PROBLME ANALYSIS &

DECISION MAKING Ability to indentify problems, prioritise them, analyse
alternative courses of action and take decision.
WEIGHTAGE = 1

SCALEPOINTS
Scale
Point Weightage Factor Score
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.20
 APPRAISAL RATING

B-8 MANAGEMENT OF HUMAN

RESOURCES Effective control and utilisation of subordinates ensuring
disciplne, integrating employees in to teams and
WEIGHTAGE = 1 motivation of team to higher levels of performance

SCALEPOINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

B-9 LITERAL CO.-ORDINATION

Ability to effectively co-ordinate with all linked departments

WEIGHTAGE = 1 to ensure smooth functioning

SCALEPOINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.21
 APPRAISAL RATING

B-10 DISCIPLINE
Adherence to company policy and rules

WEIGHTAGE = 1

SCALEPOINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.22
PART (B)

INTEGRITY

Supporting evidence if
Above Board Questionable questionable

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

ANY OTHER COMMENTS

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.23
PART (C)

DEVELOPMENT PLAN

(1) Reporting Officer should make an assessment of the strengths and developmental needs
keeping in mind appraisee's own views.
(2) Reviewing Officers comments should be bases on appraisee's views and Reporting
Officer's assessment.
(3) Training needs should be related to the developmental needs of the appraisee.
(4) The Reporting Officer (O) can make comments, if any, on the development plan for the
appraisee in the space provided.
(5) The sheet on training needs should be detached from the form by the Personnel
Department.

3.2.24
 PART (C) Conti..

JOB SUITABILITY JOB ENLARGEMENT

REPORTING OFFICER

REVIWING OFFICER

COMMENT OF THE REPORTING OFFICER (O) NAME DESIGNATION SIGNATURE WITH DATE

REPORTING

3.2.25
OFFICER

REPORTING
OFFICER (O)

REVIEWING
OFFICER
 PART (C) DEVELOPMENT PLAN

TRAINING NEEDS
Major Strengths to the Aspects of the appraisee
Appraisee which need to be improved
to enhance performance or Performance : Related Areas Performance : Related Areas
potential of training which will help in of training which will help in
improving the present prearing the appraisee for
performance of the appraisee future work and
responsiblities

REPORTING
OFFICER

3.2.26
REVIEWING
OFFICER
 PART (C) conti.... TRAINING NEEDS Year ...................

Name .............................................................................................
Performance : Related Areas of
training which will help in
improving the present
performance of the Appraisee
Designation ....................................................................................
Performance : Related Areas of
training which will help in
preparing the Appraisee for
future work and responsiblities

Ticket No. .......................................................................................

REPORTING
Deptt. / Division ..............................................................................
OFFICER

3.2.27
ACTION TAKEN BY TRAINING SECTION/
DEPARTMENT
REVIEWING
OFFICER
 PART (D)

FINAL ASSESSMENT
(1) Final assessment will be done by the Higher Authority.
(2) Total Factor Score is the sum of the 13 individual factor scores.
(3) For each appraisee there will be a maximum of 3 total factor scores awaeded by the
Reporting Officer, Reporting Officer (O) and Reviewing Officer
(4) Welghtage have been indicated for the assessments of the Reporting Offcer, Reporting
Offcer (O) and Reviewing Offficer
(5) By mutiplying the total factors with the above weightages, the final appraisal score is
obtained.
(6) Appraisees within an assemssment group, should be listed in a descending drder on the
basis of appraisal scores secured by them.
(7) The first 25% of the group will be denoted as Catagory- "A" and the last 25% as
Catagory- "C"
(8) Higher Authority will conduct Reveiew commitee meeting before 30th May commitee will
concentrate on identifying 20% Category- "A" appraissee as category "O" and 20% of
Category- "C" Appraisees as category- "C"
(9) For every assessment group. the following final catagorisation should be sent to the
Personnel Department latest by 30th May.

Category Approximate percentage distribution

High Performance
Low Performance
in the assessment group
O - 10%
A - 20%
B - 45%
C - 25%

(10) In case officers at the level of E-5 and above for whom MD is the Reviewing Officer, the
final assessment will be done by the MD.
(11) In case officers at the level of E-5 and above, reporting directly to MD.
(a) MD will have 100% weights in determinig the final appraisal score and
(b) The final grade (O, A, B, and C) will be given by MD as the case may be.

3.2.28
PART (D) FINAL ASSESSMENT (BY HIGHER AUTHORITY)

Total Factor Weighted Total Factor

Weights
Score (T.F.S. Wts.) Score

REPORTING 1/4
OFFICER
JOB ENLARGEMENT

REPORTING 1/4
OFFICER (O) (When applicable)

REVIEWING
OFFICER (O) 1/2 OF 1/4

FINAL APPRAISAL SCORE

PRIMARY GRADING A B C

FINAL GRADING O A B C
JOB SUITABILITY

In case the final grading is C, has the appraisee been councelled ? Yes / No

If so, date of councelling.................................

(Attach copy of the letter)

HIGHER AUTHORITY

3.2.29
 EXECUTIVE PERFORMANCE APPRAISAL

FOR E-5 & ABOVE

1.0 OBJECTIVE
(a) To integrate company and individual goals through a process of performance assessment
linked to achievement of organisation objectives.
(b) To increase awareness of Targets/Tasks and the responsibility of officers at all levels to
ensure fulfilment of company objectives.
(c) To ensure a more objective assessment of performance and potential.
(d) To distinguish between different level of performance on relative basis and to indentify
officers with potential to grow in the organisation.
(e) To enforce the discipline of the normal distribution in performance and to ensure that
assessment of individual officers does not violate the group norms.
(f) To identify the developmental action to be taken to enhance the performance ot the
officer.

2.0 STAGES OF APPRAISAL

With these objectives in view, the appraisal system has been bifurcated into two parts :

Stage-I Reporting Phase (a) Self Appraisal and Review Discussion

(b) Perfromance Assessment
(c) Development Plan

Stege-II Evaluation Phase (d) Final Assessment

3.0 STAGE-1 APPRAISAL

The reporting phase consists of Self Appraisal and Review Discussions, Performance Assessement
and Development Plans.

3.1 SELF APPRAISAL

The self Appraisal to be filled in by the appraisee, has been structured to give the appraisee. an
opportunity for reporting on his performance, his outstanding achievements, the difficulties faced
and his suggestions for improving performance.
The appraisee can also comment upon his developmental needs.
To remove the effect of recency, the self appraisal will be conducted twice in a year, a mid year
review in October and an annual review in April.

3.2.30
3.2 TARGETS/TASKS
To introduce an element of objectivity, officers will be assessed with reference to pre-set targets/
major tasks assigned. In major production department annual targets are already assigned. Where
precise quantitative targets can not be set, the assessment will be on the basis of major tasks/
assignments, to be completed during the year. The intention is to ensure that as a system officers
are made aware of their specific tasks/ responsibilities and are assessed on the basis of their
fulfilment of the tasks/ responsibillties. In the operation of the system, it is possible that precise/
quantitative targets can be set only for certain specific levels of officers. For others, wherever
individual targets cannot be fixed, group targets may be determined, but the role of each officer in
the group in fulfilling the laid down targets or tasks must be clear and specific. It is necessary that
each officer should, in the beginning of the year, be made aware of the tasks/ targets/ assignments
against which his performance will be measured. This exercise of setting targets/ tasks, which is an
essential feature of the new systems, must be completed before the beginning to the assessment
year and clearly communicated to each appraisee by reporting officer.
The appraisee wil receive part 'A' of the apprasal form in September for the Mid-year review.

The appraissee will record :

(a) The targets/ Task assinged for the year.
(b) The extent of fulfilment of the targets/ tasks up to the mid-year
(c) Constraints faced-the constraints which were not taken into account while fixing the target
and which were outside the appraisee's control
(d) Suggestion for improvement of performance

During the annual performance review in April the appraisee will record :
(a) The extent of fulfilment of tasks for the year
(b) Constraints faced
(c) Suggestions for improvement
(d) Highlights of performance during the year-any outstanding achievement/ targets achieved
beyond stated norms.
(e) Development needs of the appraisee
For phased implementation of the system, officers above E-5 will be assessed on the basis of
taegets / tasks for the assemssements years 1985-86 & 1986-87 (as explained above) Assessment
for officers in E-1 to E-4 grades for the above years will be guided by the significant contribtion /
major tasks performed by the officers and not on the basis of pre set targets.
The intention of the system, however, is to introduce pre set goals as a method of assessment for all
officers after intensive trainig exercises are conducted in goal setting.

3.3 REVIEW DISCUSSIONS

In the new system, Perfromance Review discussion between the appraisee and the reporting officer
are envisaged both during the mid-year review in October and the annual review in April.

3.2.31
The discussions should cover :-
(a) Fulfilment of Tasks/Targets
(b) Action plans for improvment of Target/Tasks achivement, and
(c) Strength and developmental needs of the appraisee.
The review discussions are meant to be, both an opportunity for giving and receiving feedback and
a developmental tool to improve perfromance. These discussions should aim at introducing a
culture where the appraisee and the Repoting officer are able to come together and discuss
performance in a matured manner on a continuing basis.
For the performance review to be successful, it is neccessary that the reporting officer assess
performance against targets/tasks on a continuing basis, and when possible maintain a record for
reference.

3.4 PREFORMANCE ASSESSMENT

3.5 To improve objectivity of assessment performance will be assessed on the basis of

following broad factors :-
(a) Job performance factors
(b) Managerial ability factors
From E-1 to E-4 in the overall assessment, 66% weightage is given to Job performance factors and
34% weightage to Managerial ability factors. from E-5 onwards, equal weightage is given to job
performance factors and Managerial ability factors.

3.6 WEIGHTS
Individual factors falling within the above broad areas, including weightages, for E-0 TO E-4 and
E-5 and above are indicated below :-

3.7 (A) PERFORMANCE FACTORS

Weightages

E-0 to E-4 E-5 and above

1. Quality of Output 5 4
2. Quantity of Output 5 4

3. Cost Control 5 4
4. Job knowledge & skill 5 3

20 15

3.2.32
(B) MANAGERIAL ABILITY FACTOR

Weightages

E-0 to E-4 E-5 and above

1. Planning and Organising 1 1

2 Initiative 1 1
3. Team spirit 1 -
4. Commitment & Sence of Responsibility 1 1
5. Cmmunication 1 2
6. Trainigh & Development of Subordinates 1 2
7. Problem Analysis and Decision making 1 2
8. Management of Human Resources 1 3
9. Literal CO-ordination 1 2
10. Discipline 1 1

10 15

TOTAL (A+B) 30 30

3.8 FACTOR SCORE

Each of the key factors has to be assessed on a six point scale, the numerical assessment will then
be multiplied by the specified weight of each factor, indicating the relative importance of the factor
to arrive at the factor score.
The assessment of each factor will be done separately by the Reporting officer, Reporting officer
(O), if applicable and the Reviewing officer, for each of the 14 factors, there will, therefore, be a
factor score awarded by the Reporting officer, Reportng officer (O) and the Reviewing officer
Reporting Offcer (O) is applicable only in respect or executives in service / staff departments
working in other departments.

3.9 TOTAL SCORE

In the new system, weightages have been alloted to the assessments of the reporting officer 1/2
Reporting officer (O) (1/4 if applicable) and the Reviewing Officer (1/4 if reporting officer (O) is
applicable or 1/2 in other cases). The total appraisal score of each appraisee is obtained by
applying the above weightages, to the summation of 14 factors scores and then adding up the
respctive figures for the reporting officer, Reporting offcer (O) and the reviewing officer.

3.2.33
EXAMPLE

Concerned Officer (Appraisee) Total Factor Score Weightage Weighted Score

Reporting officer 140 1/2 70

Reportig officer (O) 120 1/4 30

Reviewing officer 130 1/4 32.5

Total Appraisal Score = 132.5

Since total numnber orweights are 30 and assessment of ecah criteria is on a six point scale,
starting from1, the total appraisal score can vary from 30 to 180.
The total appraisal score is a uniform and comprehensive index combining both job performance
as well as managerial ability factors.

3.10 DEVELOPMENT PLAN

The Development plan has been constructed as a positive instrument for obtaining information
about the future attention to be devoted to the appraisee in terms of (a) training (b) job
enlargement and (c) job rotation. This developrment plan of the appraisee would be made on the
basis of (a) perfromance strength (b) development needs (c) job suitability, which will be indicated
by the reporting officer and the Reviewing officer.
In the development plan. the development needs are envisaged as a positive instrument and not
necessarlly as a weakness or shortfall. It is possible that an appraisee may be an above average
performer but still have development needs to improve in existing area or in potential.

4.0 STAGE-II APPRAISAL

The evaluation is done by the Higher Authority assisted by a Committed called "performance
review committee."

4.1 RELATIVE ASSESSMENT

The Higher Authority will relatively assess the officers under control, The objectves of the relative
assessment are :-
(a) To indentify in a group with differing levels of performance not in absolute terms, but
relative to each other.
(b) To ensure that the distribution of assessment of officers conforms, more or less. to the
following group norms.

Category-I Appraisee (High performance) Not more than 10%

Category-II Appraisee Not more than 20%

Category-III Appraisee Not more than 45%

Category-IV Appraisee (Low performance) Not more than 25%

3.2.34
For the purpose of relative assessment by the Higher Authority, officers will be clubbed into
conveniently large groups on depertmental/zonal basis.

4.2 PRIMARY GRADING :

After the Stage-1 Appraisal has been completed, and the total appraisal score obtained, forms of
officers in the group will be forwarded to the Higher Authority.
The Higher Authority will arrange that all the officers in the group are listed in descending order of
their total appraisal score (from 30 to 180).
The Higher Authority will then do the primary grading on the basis of the total appraisal score
obtained.
Top 25% in the group.................................................................... A
Middle 50% in the group ............................................................... B

Bottom 25% in the group .............................................................. C

4.3 The final grading will be done by the performance Review Committee headed by the
Higher Authority. The Committee will devote its attention to the top 25% and the bottom
25% performance in the group & make the following decisions,
(a) Which officers out of the primary grade A can be classified as O on the basis of
their relatively higher perfomance and potential (not more than 20% of primary
grade A)
(b) Which officers out of C primary grade, can be classified as "C" on the basis of
their relatively low performance and potential (not more than 20% of primary
grade C)
(c) The Recommedation of Committee regarding the job rotation plan of the officers
on the basis of the input made available in the development plan.
To indentify the O officers, the Committee will consider all category A officers. This is
necessary to ensure, that differences in assessment by individual reporting/reviewig officers
does not influence the decision of the committee. Indvidual officers will be assessed by the
committee on basis of the following criteria :
(a) Performance of the department/section where the officer is working
(b) Inter-departmental disparities in assessment
(c) Committes's own assessment
The Committee may also refer the previous year's appraisal rating, if required. With the
above procedure the Committee will indentify officers with relatively higher periormance
and classify them as O.
The percentages indicated above are illustrative, it is possible that the review committee
may come to the conclusion that no one is O or that a little more or less than 5% are O.
Percentage of C grade, if necessary, may vary within a range of 15% to 25% in an
appraisal group. The percentage of B grade, would accordingly get adjusted between
45% to 55%. This is within the discretion of the committee.

3.2.35
4.4 COUNSELLING
In case officer is calssified as C and declared unpromotable, the Higher Authority will call the officer
to discuss his performance and counsel him on the need as well as the action plan for
improvement.
After the counsellng, Higher Authority shuld address a personal letter to the appraisee recalling the
discussion. A copy of this letter should be attached with the appraisal form.

5.0 OUT PUT

The output from the new appraisal system is therefore available in terms of :
(a) Classification of officers with different levels of performance.
O High Performers (Approximately) = 10%
A High Performers (Approximately) = 20%
B High Performers (Approximately) = 45%
C Low performers (Approximately) = 25%

(b) Training needs analysis linked to development needs.

6.0 SPECIAL PROVISIONS FOR OFFICERS DIRECTLY REPORTING

TO MANAGING DIRECTOR
For officers directly reporting to M.D. there will be no reviewing officer or committes. M.D. as the
reporting officer will Appraise such officers and 100% weigteges will be attached to such
assessment. M.D. will also discharge the function of Higher Authority and indicate the final grading
(O, A, B, C,) of the officer. There will be bo primary grading.

7.0 APPRAISAL FORM

The Appraisal form for officers of level of E-5 and above is enclosed. for E-0 to E-4, the form would
undergo slight changes as indicated in para 3.7.

3.2.36
 FERRO SCRAP NIGAM LIMITED

PERFORMANCE APPRAISAL

FOR EXECUTIVES OF THE LEVEL E-5 & ABOVE

200...............

UNIT................................

Name : Shri/Smt./Ku.

Ticket No. Designation

Department Grade

Date of birth Date of Joining

Date of Entry into Qualification

Present Grade

(To be filled in by Personnal Department)

3.2.37
1.0 SCORE
This form will be used to assess the perfrmance of excutives and to plan for their proper
development.

2.0 OBJECTIVE
(a) To integrate Company and individual goals through a process of performance assessment
linked to achievement of organisation objectives.
(b) To increase awarness of Targets/Tasks and the responiblity of officers at all levels to ensure
fulfilment of company objectives.
(c) To ensure a more objective assessment of performance and potential.
(d) To distinguish between differing levels of performance on reative basis and identify officer
with potentials to grow in the organisation.
(e) To enforce the discipline of the nomal distribution in performance and to ensure that
assessment of individual officers does not violate the group norms.
(f) To indentify the developmental action to be taken to enhance the performance of officer.

3.0 FORM
(A) Self Appraisal
(B) Performance Assessment
(C) Development Plan
(D) Final evaluation and grading

4.0 INSTRUCTIONS
(1) Report should by based on direct knowledge of the Appraisee's performance for the entire
period and not on recent achievements.
(2) Each item should be separately considered and assessed on the basis of current position
only.
(3) The forms will be received by the Reporting Officers latest by Sept. 15. The completed
forms must reach personnel department, latest by 30th MAY
(4) Targets and tasks should be set in the beginning of the year by the Reporting Officer, and
clearly communicated to the appraisee.
(5) Performance Review Discussion should be held between the repoting officer and the
Appraisee twice in a year.
(6) Conuseling to the C category officers should be done by the Higher Authority at the end
of the assessment. Counselling should be confirmed through a personal letter from the
Higher Authority.

3.2.38
 PART-A

SELF APPRASAL
(To be filled in by the appraisee)

Period of Appraisal 1st April 200 to 31st March 200

Name :

Designation :

Ticket No. :

Deptt. / Division :

GUIDE LINES
GENERAL- Self Appraisal form is to be filled up twice in a year, as per the following calender

Date of Completion

Sl. Activities For Half Yearly For Annual

Assessment Assesssment

1. Reporting Officer to give the form 21 September 21 March

to the Appraisee

2. Appraisee to return completed form 7 October 7 April

to Reporting Officer

3. Completion of Review Discussions 31 October 14 April

between Appraise and Reporting Officer

FOR THE APPRAISEE

1. Fumish factual information - avoid evaluation of perfornance.
2. Targets/Tasks communicated at the begining of the year by the reporting officer should be
entrered in the form by the Appraisee.
3. Targets/Tasks should be precise and quantitative to the extent possible.
4. Record only constraints not taken into account while setting targets and which are outside
appraisees control.
5. Fullfilment of Targets/Tasks should be recorded in October and in April.

3.2.39
6. Highlight of performance should incliude tragets achevied beyond stated noms innovative
work processes cost reduction reduction measures etc.
7. Develomental need should mention specific areas, which in the appraisees opinion need
to be improved for enhancing performance.
8. All entries should be made in visible writing or typed.
9. Attach separate sheet if space provided is not sufficient.

FOR PERFORMANCE REVIEW DISCUSSION

1. Review of performance and all its related aspects.
2. Any revision in the target in the first half of the year should be incorporated during the
mid year review discussions.

3.2.40
Name ..............................................................................................................................................

Design. ............................................................................................................................................

Targets Set / Tasks Assigned for the year

Appraisal for the period between 1st April to 30 th September

Targets/Tasks Fulfilled Constraints Faced Suggestions for Improvement

Signature of the Appraisee

3.2.41
 Appraisal for the period between 1st April to 30 th September

Targets/Tasks Fulfilled Constraints Faced Suggestion for Improvement

Highight of performance Development Needs

Signature of the Appraisee

3.2.42
 Perfomance Review Discussions*

Period Outcome of Review Discussions Signatures

Half year ending

30th September

Appraisee

Reporting Officer

year ending
31st March

Appraisee

Reporting Officer

1. To Review fulfillment of targets/tasks.

2. To develop action plan for improvement of target achievement.

3. To discuss with the Appraisee his strengths and developmental needs.

3.2.43
 PART-B

PERFORMANCE ASSESSMENT

GUIDE LINE
(1) There are 13 factors for performance assessment divided into two groups :-
(a) Job performance factor
(b) Potential factor
(2) Each factor has been given a weightage to indicate its importance in the overall
assessment.
(3) Each factor is to be assessed on a 6 point scale. Tick mark the relevent scale.
(4) Each factor score = scale point (tick marked) x weightage.
(5) Reporting Officer (O) is applicable for service/staff appraisees and fuctional head in the
plants.
(6) Any other comments on the perfomance of the appraisee may be made in the space
provided in this part.

(A) JOB PERFORMNCE FACTORS

A-1 QUALITY OF OUTPUT

APPRAISAL RATING

A-1 Quantity of Output

Extent of target fulfilment completion of assinged task

WEIGHTAGE = 4

SCALE POINTS
Scale Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.44
 APPRAISAL RATING

A-2 QUALITY OF OUTPUT

General excellence of output, the extent of
work free from errors
WEIGHTAGE = 4

SCALE POINTS Scale

Point Weightage Factor Score
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

A-3 COST/TIME CONTROL

Aware of Cost/Time aspects in the job Optmunm
utilisation of available resources/time and reduction of waste
WEIGHTAGE = 4

SCALE POINTS
Scale
Point Weightage Factor Score
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.45
 APPRAISAL RATING

A-4 JOB KNOWLEDGE & SKILL

Knowledge pertaining to the area of the work and
related areas.
WEIGHTAGE = 3

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

PART(B) MANAGERIAL ABILITY FACTORS

APPRAISAL RATING

B-1 PLANNING & ORGANIZING

Ability for anticipating work need & development
of effective action plans in relative to tasks
WEIGHTAGE = 1

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.46
 APPRAISAL RATING

B-2 INITATIVE
Ability to be self-reliant and move forward on a task
without outside direction
WEIGHTAGE = 1

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

B-3 COMMITMENT & SENCE OF

RESPONSIBILITY Dedication to work and company objective, relibiliy to
complete assingned tasks.
WEIGHTAGE = 1

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.47
 APPRAISAL RATING

B-4 COMMUNICATION
Skill and desire to share available iformation
with all concermed
WEIGHTAGE = 2

SCALE POINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

B-6 TRAINNING AND DEVELOPMENT

OF SUBORDINATES Interest taken in providing training and other
opportunities to subordinates for development
WEIGHTAGE = 2

SCALEPOINTS
Scale
Point Weightage Factor Score
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.48
 APPRAISAL RATING

B-6 PROBLME ANALYSIS &

DECISION MAKING Ability to indentify problems, prioritise them, analyse
alternative courses of action and take decision.
WEIGHTAGE = 2

SCALEPOINTS
Scale
Point Weightage Factor Score
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

B-7 MANAGEMENT OF HUMAN

RESOURCES Effective control and utilisation of subordinates ensuring
disciplne, integrating employees in to teams and
WEIGHTAGE = 3 motivation of team to higher levels of performance

SCALEPOINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.49
 APPRAISAL RATING

B-8 LITERAL CO.-ORDINATION

Ability to effectively co-ordinate with all linked departments

WEIGHTAGE = 2 to ensure smooth functioning

SCALEPOINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

APPRAISAL RATING

B-9 DISCIPLINE
Adherence to company policy and rules

WEIGHTAGE = 1

SCALEPOINTS
Scale
Weightage Factor Score
Point
6 5 4 3 2 1

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.50
PART (B)

INTEGRITY

Supporting evidence if
Above Board Questionable questionable

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

ANY OTHER COMMENTS

REPORTING OFFICER

REPORTING OFFICER (O)

REVIEWING OFFICER

3.2.51
PART (C)

DEVELOPMENT PLAN

(1) Reporting Officer should make an assessment of the strengths and developmental needs
keeping in mind appraisee's own views.
(2) Reviewing Officers comments should be bases on appraisee's views and Reporting
Officer's assessment.
(3) Training needs should be related to the developmental needs of the appraisee.
(4) The Reporting Officer (O) can make comments, if any, on the development plan for the
appraisee in the space provided.
(5) The sheet on training needs should be detached from the form by the Personnel
Department.

3.2.52
 PART (C) DEVELOPMENT PLAN

TRAINING NEEDS
Major Strengths to the Aspects of the appraisee
Appraisee which need to be improved
to enhance performance or Performance : Related Areas Performance : Related Areas
potential of training which will help in of training which will help in
improving the present prearing the appraisee for
performance of the appraisee future work and
responsiblities

REPORTING
OFFICER

3.2.53
REVIEWING
OFFICER
 PART (C) Conti..

JOB SUITABILITY JOB ENLARGEMENT

REPORTING OFFICER

REVIWING OFFICER

COMMENT OF THE REPORTING OFFICER (O) NAME DESIGNATION SIGNATURE WITH DATE

3.2.54
REPORTING
OFFICER

REPORTING
OFFICER (O)

REVIEWING
OFFICER
 PART (C) conti.... TRAINING NEEDS Year ...................

Name .............................................................................................
Performance : Related Areas of
training which will help in
improving the present
performance of the Appraisee
Designation ....................................................................................
Performance : Related Areas of
training which will help in
preparing the Appraisee for
future work and responsiblities

Ticket No. .......................................................................................

REPORTING
Deptt. / Division ..............................................................................
OFFICER

3.2.55
ACTION TAKEN BY TRAINING SECTION/
DEPARTMENT
REVIEWING
OFFICER
 PART (D)

FINAL ASSESSMENT
(1) Final assessment will be done by the Higher Authority.
(2) Total Factor Score is the sum of the 13 individual factor scores.
(3) For each appraisee there will be a maximum of 3 total factor scores awaeded by the
Reporting Officer, Reporting Officer (O) and Reviewing Officer
(4) Welghtage have been indicated for the assessments of the Reporting Offcer, Reporting
Offcer (O) and Reviewing Offficer
(5) By mutiplying the total factors with the above weightages, the final appraisal score is
obtained.
(6) Appraisees within an assemssment group, should be listed in a descending drder on the
basis of appraisal scores secured by them.
(7) The first 25% of the group will be denoted as Catagory- "A" and the last 25% as
Catagory- "C"
(8) Higher Authority will conduct Reveiew commitee meeting before 30th May commitee will
concentrate on identifying 20% Category- "A" appraissee as category "O" and 20% of
Category- "C" Appraisees as category- "C"
(9) For every assessment group. the following final catagorisation should be sent to the
Personnel Department latest by 30th May.

Category Approximate percentage distribution

High Performance
Low Performance
in the assessment group
O - 10%
A - 20%
B - 45%
C - 25%

(10) In case officers at the level of E-5 and above for whom MD is the Reviewing Officer, the
final assessment will be done by the MD.
(11) In case officers at the level of E-5 and above, reporting directly to MD.
(a) MD will have 100% weights in determinig the final appraisal score and
(b) The final grade (O, A, B, and C) will be given by MD as the case may be.

3.2.56
PART (D) FINAL ASSESSMENT (BY HIGHER AUTHORITY)

Total Factor Weighted Total Factor

Weights
Score (T.F.S. Wts.) Score

REPORTING 1/4
OFFICER
JOB ENLARGEMENT

REPORTING 1/4
OFFICER (O) (When applicable)

REVIEWING
OFFICER (O) 1/2 OF 1/4

FINAL APPRAISAL SCORE

PRIMARY GRADING A B C

FINAL GRADING O A B C
JOB SUITABILITY

In case the final grading is C, has the appraisee been councelled ? Yes / No

If so, date of councelling.................................

(Attach copy of the letter)

HIGHER AUTHORITY

3.2.57
 POLICY & RULES FOR PROMOTION OF NON-
EXECUTIVES & MINISTERIAL STAFF

1.0. INTRODUCTION
In establishing and maintaining a dynamic organizational structure, suited to meet present
and future Company needs, FSNL is committed to develope its own Human Resources in
such a manner as to integrate the aspirations for growth and development of the
individual employees with the fulfilment of companys objectives. The Company seeks to
sustain high levels of performance from its employees by maintaining a working
environment conducive to the efficient and effective functioning of each Non-executive
employee/Ministerial Staff of the company.

2.0. OBJECTIVES
2.1. To boost and sustain the morale of the FSNL employees in order to enable them to make
all-out efforts for achieving the Mission and Objectives of the Organization by working at
peak levels of efficiency.
2.2. To ensure optimum utilization of manpower with a view to achieve maximum level of
productivity per man year.
2.3. To man non-executive positions, including Supervisory, in the Company with competent
personnel having growth potential and to utilize their capabilities to the maximum extent,
through opportunities available for advancement.
2.4. To improve job satisfaction among non-executive employees & Ministerial Staff through
job enlargement, training etc., and to encourage them to work with enriched job contents
and accept flexible work practices for optimum utilization of manpower.
2.5. To recognize and reward good performance consistent with the needs of the organization.
2.6. To provide for a system which is conducive to equity, fairness and objectivity in matters
concerning promotions of non-executives/Ministerial Staff.
2.7. To provide mechanism for determining the suitability of non-executives/Ministerial staff for
promotion on a standard pattern and in an objective manner.

3.0. SCOPE
3.1. This policy and rules will cover all the regular non-executive employees/Ministerial Staff of
Ferro Scrap Nigam Limited, working at its Corporate Office, as well as in all of its units,
and does not include Trainees/ Apprentices and persons appointed on casual or
temporary basis or appointed on tenure basis after retirement etc.

3.3.1
4.0.CLUSTERS OF SCALES
4.1. For the purpose of promotion and career planning of Non-executives/Ministerial Staff, the
scales of pay have been grouped in the following clusters:-
a) Non-executive (Works & Non-works)

CLUSTER SCALE CODES

I N-1, N-2 & N-3

II N-4, N-5 & N-6

III N-7, N-8, N-9 & N-10

b) Ministerial Staff

CLUSTER SCALE CODES

I N-1, N-2 & N-3

II M-0

III M-1, M-2, M-3, M-4 & M-5

4.2. The Line of Promotion in respect of Operation & Maintenance Department, are placed at
Annexure A & Annexure B, respectively.
4.3. The Line of Promotion in respect of Ministerial Staff is placed at Annexure C.
4.4. The Line of Promotion in respect of Stores & Watchmen are placed at Annexure D &
E, respectively.

5.0. SYSTEM OF PROMOTION

5.1. The promotion shall be made Unitwise, in accordance with Agreed Line of Promotion, in
the following order :-
a) Promotion within Cluster of Scales of Pay
b) Promotion between Cluster of Scales of Pay
5.1.1. PROMOTION WITHIN CLUSTER OF SCALES OF PAY
Promotion from one scale of pay to another within the cluster of scales of pay
will be delinked from vacancies. An employee can be considered for promotion
on completion of prescribed years of qualifying service and subject to fulfilling
other eligibility criteria.
The promotions will be made in accordance with the policy and will be from one
scale of pay to the next scale of pay, without skipping any scale of pay.

3.3.2
 5.1.2. PROMOTION BETWEEN CLUSTER OF SCALES OF PAY
Promotion from One Cluster to another Cluster, i.e., Promotion between the
clusters of scales of pay, will depend on the availability of vacancies in the higher
cluster, except Cluster-III, in the prescribed Line of Promotion, and suitability of
employee in the Interview/Trade Test, subject to completion of prescribed years of
qualifying service and fulfilling other eligibility criteria.

6.0. ELIGIBILITY PERIOD AND CONDITIONS FOR PROMOTION

WITHIN & BETWEEN THE CLUSTERS OF SCALES OF PAY

6.1. ELIGIBILITY PERIOD

Within Cluster I : 3 Years in each scales of pay of N-1 & N-2 grades;

Within Cluster II : a) 3 Years in N-4 scale of pay for promotion to

N-5 scale of pay;
b) 3 Years in N-5 grade for promotion to N-6 grade.

Within Cluster III : 3 Years in each grade for promotion from N-7 to N-8,
from N-8 to N-9 and from N-9 to N-10 grade.

Between Cluster I & II : Promotion on the basis of vacancy, taking number of

posts in Cluster-II, for which eligibility period
is minimum 3 years in N-3 grade.

Between Cluster II & III : 3 Years in N-6 grade for promotion to N-7 grade,
subject to being found suitable in Trade Test.

FOR MINISTERIAL STAFF

Within Cluster I : 3 Years in each scales of pay of N-1 & N-2;

In Cluster II : 5 Years in M-0 scale of pay;

Within Cluster III : 4 Years in M-1 & M-2 scales of pay;

3 Yeas in M-3 & M-4 scales of pay;

Between Cluster I & II : 4 Years in N-3 scale of pay;

Between Cluster II & III : 5 Years in M-0 scale of pay.

3.3.3
6.2. The employees must have Promotable CCRs in 2 consecutive years in the respective
grades.
6.3. DEBARRING FROM PROMOTION
The employees may be debarred from their promotion to next higher grade, in the
following events :-
a) In the event of Adverse Entry in the Annual Confidential Report of an employee, he/
she will be debarred from promotion to next higher grade, although he/she may be
fulfilling the eligibility period and conditions stipulated in Clause 6.1 & 6.2 above,
for a period of 2 years, including the Assessment Year in which the adverse entry
has been made in the ACR.
However, any Adverse Entry in the ACR in a year, not communicated to the
employee concerned by 31st May of the following year, will not be taken into
account and it will not adversely affect the promotion of the individual concerned.
b) Employee against whom departmental proceedings are pending, or vigilance cases
are pending, and are at enquiry stage, shall not be promoted.
c) Employees undergoing major punishment, shall not be considered for promotion
during currency of the punishment, wherever applicable.
d) Employees who do not complete 120/240 days of working in June/December of the
particular years, in which his/her case is put up for consideration by the DPC. The
absenteeism on account of IOW/period of treatment of employee concerned as
Indoor Patient in company's recognized hospital will be taken into consideration
for computation of 120/240 days of working as the case may be.
6.4. The cases of employees falling under Clause 6.3(b) shall, however, be considered under
Sealed Cover Procedure by the Departmental Promotion Committee. The DPC shall
assess suitability of such employees, without taking into consideration the disciplinary
case/criminal prosecution pending against them. The assessment of the DPC, i.e., Fit or
Unfit for promotion, as the case may be, shall be kept in a sealed cover. The same
procedure will be followed by the subsequent DPC.
On conclusion of the disciplinary case/criminal prosecution, the sealed cover(s) shall be
opened and in case the employees are completely exonerated of the charges against them
and the DPC found them fit for promotion, they will be promoted to their next higher
grade, and such promotions shall be notionally effective from the date of
recommendations of the Departmental Promotion Committee.
Such employee shall, however, not get any arrear payment. The monetary benefit will
accrue from the date of taking over the higher charges.
However, in case any penalty is imposed as a result of the disciplinary proceedings or if
the employee concerned is found guilty in the disciplinary/criminal proceedings, the
recommendations of the Sealed Cover shall not be acted upon.

3.3.4
7.0. METHODOLOGY OF PROMOTION
Employees fulfilling the eligibility criteria as prescribed in Clause 6.0, i.e., those who have
completed the prescribed minimum period of service in a grade, possess the minimum
educational qualification prescribed and have passed the prescribed trade test/job test/
written test, will be considered for promotion within or between the cadres, by a
Departmental Promotion Committee, as defined in clause 9.0, constituted for the purpose.
The DPC shall interview the eligible candidates and make recommendations about their
suitability or otherwise for promotion. The promotions will be effected based on the
recommendations of the Departmental Promotion Committee.
In the event of any vacancy in N-4 level in Operation or Maintenance department, other
than those for Operation of Heavy Equipments and vehicles, the management will invite
applications from eligible employees in N-3 grade, to indicate their choice for
consideration of their cases, subject to their suitability and fulfilment of prescribed criteria
for the post in N-4 grade.
In the event of non-availability of suitable candidate at a particular unit in the relevant
Line of Promotion, an inter-plant circular will be issued inviting applications from the
eligible candidates of N-3 grade, and the candidates on being found suitable, will be
promoted to N-4 grade and posted at the unit where the vacancy exists.

8.0. FIXATION OF PAY ON PROMOTION

On promotion, a notional increment in the lower scale shall be added to the pay prior to
promotion to arrive at notional pay and pay in higher scale shall be fixed at the stage
immediately above the notional pay. Provided that such a notional increment shall be
added even when one has been drawing the maximum in the lower scale of pay.
Provided further that if such pay fixed on promotion falls short of the pay which the
employee would have drawn had he been promoted after drawing the next increment in
the lower scale, then his pay would be refixed at the next higher stage with effect from the
date he would have drawn such increment.

9.0. DEPARTMENTAL PROMOTION COMMITTEE

9.1. Departmental Promotion Committee for scrutinizing the cases of eligible candidates for
promotion to next higher grade will consist of the following executives, or as approved by
the competent authority time to time:-
i) Concerned Departmental Head of Corporate Office
ii) Unit Head
iii) A representative of P&A Department of Corp.Office
iv) A representative of F&A Department, wherever
Finance personnel are involved.
9.2. While making recommendations for promotion, the DPC will follow the procedure, as laid
down in the promotion policy.

3.3.5
9.3. The recommendations of the DPC will be valid till the recommended employees are
accommodated in the next higher grade.
9.4. The sitting of DPC will be held twice in a year, i.e., in the months of June and December
every year.

10.0. APPEAL
An employee who is aggrieved by the order of promotion, may file an appeal to the
Managing Director. On receipt of the appeal, his case may be reviewed, and the order
passed by the Managing Director will be communicated to the concerned individual
suitably.

11.0. EFFECTIVE DATE OF PROMOTION

11.1. The promotions as per these rules will be effected twice in a year, i.e., from 30th June
and 31st December.
11.2. Persons so promoted will count their seniority from the effective date of promotion, i.e.,
30th June or 31st December as mentioned in the promotion order, but the financial
benefits will accrue to them from the date of assumption of charge of the higher post.
11.3. Date of Annual Increment will be decided with reference to the effective date of promotion
as per the rules applicable from time to time.

12.0. JOB FLEXIBILITY

12.1. With the cluster approach, the job will be understood in a composite manner so that
flexibility of employees within the clusters becomes viable and optimum utilization of
human resources is achieved.
12.2. On promotion, employees will be suitably designated in their lines of promotion, keeping
in view the requirements of work.

13.0. CONSEQUENCES OF REFUSAL ETC.

13.1. If an employee does not appear in the trade test/ written test/job test etc., for which he has
been duly informed in writing, he will not be considered for promotion for a period of 12
months from the date of holding the said test.
13.2. In case an employee refuses to accept promotion, he will not be considered for such
promotion for a period of One Year from the date of last such promotion which was
refused.

14.0. RESERVATION OF VACANCIES FOR SC/ST

14.1. Reservation of posts for SC/ST candidates shall be provided in respect of vacancy based
promotions in accordance with the Presidential Directives and instructions of the
Government in this regard, issued from time to time.

3.3.6
15.0. SERVICE LINKED PERSONAL GRADE SCHEME
Under the above scheme, the employees who would complete 5 years of service in their
existing grade, will be given next higher grade, irrespective of availability of vacancies, as
personal grade provided they have promotable CCRs and satisfactory attendance atleast
in two consecutive years immediately preceding the year of consideration. However, they
will continue to do the same work which they were doing in the existing grade.

16.0. TENURE
16.1. The Management may, at its discretion, relax/extend the eligibility criteria in exceptional
cases, for reasons to be recorded.
16.2. The Management will issue such clarification, procedures, instructions, guidelines etc., as
deemed fit by it for implementing this policy and rules.

3.3.7
 SR. CRANE/EXC.OPR.I N-10 HEME OPERAT OR N-10
(DU MPER/PAYLOADER/DOZ ER) SR. DRIVER-I N-10 SR. SEP. OPERATOR-CUM- SR. L ANCER/G.C.I N-10 SHIF T FOREMAN-CUM
T ECHNICIAN-I N-10 SR.T.K.-I N-10
3 Years 3 Years 3 Years 3 Years 3 Years 3 Years

SR. CRANE/EXC.OPR.I N-9 HEME OPERAT OR N-9 SR. DRIVER-I N-9 SR. SEP. OPERATOR-CUM- SR. L ANCER/G.C.I N-9 SHIF T FOREMAN-CUM
(DU MPER/PALOADER /DOZ ER) T ECHNICIAN-I N-9 SR.T.K.-I N-9

CLUSTER-III
INTERVIEW & T RADE T EST INTERVIEW & T.T.

3 Years 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years

SR. CRANE/EXC.OPR.I N-8 SR. DOZER OPERATOR-II N-8 SR. DUMPER/P.L. OPR. II N-8 SR. DRIVER-II N-8 SR. SEP. OPERATOR-CUM- SR. L ANCER/G.C.II N-8 SHIF T FOREMAN-CUM
T ECHNICIAN-II N-8 SR.T.K.-I I N-8
3 Years 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years

SR.CRANE/EXCAVATOR SR. DOZER OPERATOR-III N-7 SR. DUMPER/P.L. OPR. III N-8 SR. DRIVER-III N-7 SR. SEP. OPERATOR-CUM- SR. L ANCER/G.C.III N-7 SR. AST. FORM.-CUM-
OPERATOR-III N-7 T ECHNICIAN-III N-7 TIME KEEPER N-7

HEAVY VEHICLE LICENCE

ESSENTIAL

T R A D E T E S T INTERVIEW/T.T

3.3.8
3 Years 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years

CRANE OPR.I N-6 DOZER OPERATOR-I N-6 D UMPER/P.L.OPR.I N-6 DRIVER-I N-6 SEP. OPERATOR-I N-6 LANCER/GASCUTTER-I N-6 AST. FORMN. - CUM
3 Years 3 Years 3 Years 3 Years 3 Years 3 Years T IME KEEPER N-6
CLUST ER II CRANE OPR.II N-5 DOZER OPERATOR-II N-5 D UMPER/P.L.OPR.II N-5 DRIVER-II N-5 SEP. OPERATOR-II N-5 LANCER/GASCUTTER-II N-5
3 Years 3 Years 3 Years 3 Years 3 Years 3 Years SUPERVISOR
CRANE OPR.III N-4 DOZER OPERATOR-III N-4 D UMPER/P.L.OPR.III N-4 DRIVER-III N-4 SEP. OPERATOR-III N-4 LANCER/GASCUTTER-III N-4
REQUIRED QUALIFICAT ION :

CRANE LINE DOZER LINE DUMPER/PAYLOADER DRIVER LINE SEPARATOR LINE L ANCER /GASCUT TER LINE GRADUATE, PREFERABLY
LINE IN SCIENCE OR D IPLOMA
IN ANY BRANCH OF ENGG.

T R A D E T E S T

HEAVY VEHICLE LICENCE DRIVING LICENCE

ESSENTIAL ESSENTIAL

3 Years

HELPER-I N-3
3 Years
CLUST ER-I HELPER-II N-2
3 Years
LINE OF PROMOTIONS OF OPERATIONS DEPARTMENT
ANNEXURE-A

HELPER-III N-1
 SR. MECHANIC-I N-10 SR. WELDER/G.C.I N-10 SR. SKILLED MACHINIST-I N-10 SR. ELECTRICIAN-I N-10 SR. AUTO ELECTRICIAN-I N-10 SR. TECHNICIAN-I N-10 SR. RIGGER-CUM-TECHNICIAN-I N-10

3 Years 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years

SR. MECHANIC-I N-9 SR. WELDER/G.C.I N-9 SR. SKILLED MACHINIST-I N-9 SR. ELECTRICIAN-I N-9 SR. AUTO ELECTRICIAN-I N-9 SR. TECHNICIAN-I N-9 SR. RIGGER-CUM-TECHNICIAN-I N-9
C
L 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years
U
S III Sr. MECHANIC-II N-8 SR. WELDER/G.C.II N-8 SR. MACHINISIT-II N-8 SR. ELECTRICIAN-II N-8 SR. AUTO ELECTRICIAN-II N-8 SR. TECHNICIANI N-8 SR. RIGGER-CUM-TECHNICIAN N-8
T
E 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years
R
SR. MECHANIC-III N-7 SR. TURNER/MACHINIST-III N-7 SR. ELECTRICIAN-III N-7 SR. AUTO ELECTRICIAN-III N-8 TECHNICIAN-I N-7 RIGGER-CUM-TECHNICIAN-I N-7
SR. WELDER/G.C.III N-7 (Wireman's permit essential))

T R A D E T E S T

3 Years 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years

MECHANIC-I N-6 WELDER/GASCUTTER-I N-6 TURNER/MACHINIST-I N-6 ELECTRICIAN-I N-6 AUTO ELECTRICIAN-I N-6 TECHNICIAN-II N-6 RIG GER-CUM-TECHNICIAN-II N-6
C
L 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years 3 Years
U

3.3.9
S II MECHANIC-II N-5 WELDER/GASCUTTER-II N-5 TURNER/MACHINIST-II N-56 ELECTRICIAN-II N-5 AUTO ELECTRICIAN-II N-5 PAINTER/CARPENTER/B.S.II N-5 RIG GER-CUM-TECHNICIAN-III N-5
T
E 3 Years 3 Years 3 Years 3 Years 3 Years
3 Years 3 Years
R
MECHANIC-III N-4 WELDER/GASCUTTER-III N-4 TURNER/MACHINIST-III N-4 ELECTRICIAN-III N-4 AUTO ELECTRICIAN-III N-4 PAINTER/CARPENTER/B.S.III N-4 RIG GER-CUM- Jr. TECHNICIAN-III N-4

MECHANICS LINE WELDER/GASCUTTER LINE TURNER LINE ELECTRICIAN LINE AUTO ELECTN. LINE PAINTER/CARPENTER/
(WIREMAN'S PERMIT REQ UIRED) BLACKSMITH LINE
T R A D E T E S T

INTERVIEW/T.T.
3 Years 3 Yrs.
HELPER-I N-3 RIGGER-I N-3
3 Years
3 Yrs.
CLUSTER-I HELPER-II N-2 RIGGER-II N-2

3 Years 3 Yrs.
HELPER-III N-1 RIGGER-III N-1
LINE OF PROMOTIONS OF MAINTENANCE DEPARTMENT
ANNEXURE-B
 ANNEXURE-C

LINE OF PROMOTIONS OF MINISTERIAL STAFF

HEAD ASSISTANT M-5 PERSONAL ASSISTANT M-5

3 Years 3 Years

HEAD ASSISTANT M-4 PERSONAL ASSISTANT M-4

3 Years 3 Years

CLUSTER-III ASSISTANT-I M-3 SR. STENOGRAHER M-3

4 Years 4 Years

ASSISTANT-II M-2 STENOGRAPHER M-2

4 Years 4 Years

ASSISTANT-III M-1 JR. STENOGRAPHER M-1

INTERVIEM/T.T INTERVIEM/T.T

5 Years 5 Years

CLUSTER-II JR.ASSISTANT-III M-0 STENO/TYPIST M-0

ASSISTANTS LINE STENOGRAPHERS LINE

TYPING ESSENTIAL STENOGRAPHY ESSENTIAL

TEST & INTERVIEW

MIN. QUAL : INTERMEDIATE

4 Years

OFFICE ATTENDANT/SWEEPER-I N-3

3 Years

CLUSTER-I OFFICE ATTENDANT/SWEEPER-II N-2

3 Years

OFFICE ATTENDANT/SWEEPER-III N-1

3.3.10
 ANNEXURE-D

LINE OF PROMOTIONS OF STORES DEPARTMENT

STORES INCHARGE N-10 HEAD MATERIAL CHASER N-10

3 Years 3 Years

STORES INCHARGE N-9 HEAD MATERIAL CHASER N-9

3 Years 3 Years

CLUSTER-III HEAD STORE KEEPER N-8 SR. MATERIAL CHASER N-8

3 Years 3 Years

SR. STORE KEEPER N-7 MATERIAL CHASER-I N-7

3 Years 3 Years

INTERVIEW/TRADE TEST

STORE KEEPER-I N-6 MATERIAL CHASER-II N-6

3 Years 3 Years

CLUSTER-II STORE KEEPER-II N-5 MATERIAL CHASER-III N-5

3 Years 3 Years

STORE KEEPER-III N-4 JR. MATERIAL CHASER N-4

STORE KEEPER'S LINE MATERIAL CHASER LINE

(HMV LICENCE ESSENTAIL)

3 Years

TRADE TEST & INTERVIEW

QUALIFICATION : INTERMEDIATE

HELPER-I (N-3)

3 Years

CLUSTER-I HELPER-II (N-2)

3 Years

HELPER-III (N-1)

3.3.11
 ANNEXURE-E

LINE OF PROMOTIONS OF WATCHMEN

HAWALDAR (N-6)

3 Years

NAYAK (N-5)

3 Years

LANCE NAYAK (N-4)

OPERATIONS MAINTENANCE
(AS PER ANNEXURE 'A') (AS PER ANNEXURE 'B')

INTERVIEW / TRADE TEST

3 Years

SECURITY GUARD-I (N-3)

3 Years

SECURITY GUARD-II (N-2)

3 Years

SECURITY GUARD-III (N-1)

3.3.12
 TRANSFER BENEFITS ON MOVEMENT FROM FSNL

TO OTHER PUBLIC SECTOR UNDERTAKING

AND VICE-VERSA

It has been decided to follow in FSNL the DPEs guidelines circulated vide O.M.No.2(28)/82-
BPE(GM-1), dated 14th December 1982 (Annexure-I) and O.M.of even number dated 25.07.85

(Annexure-II), in respect of allowing Transfer Benefits to persons who join FSNL from another
Public Sector Undertakings or to those leaving FSNL to join another Public Sector Undertaking
with the consent of both the managements.

The benefits will include Transfer T.A., carry forward of Earned Leave and Gratuity. Transfer
T.A., and related expenses would be paid by the prospective organization. Gratuity and Leave
Salary for Earned Leave will be paid to the prospective organization by the organization from

which the employee moves.

The above benefits will also be applicable to cases of appointment against open advertisement in
case the applications are forwarded by the respective undertaking who may allow transfer benefits
subsequently.

3.4.1
 ANNEXURE-I
NO.2(28)/82-BPE (GM-1)
Government of India
Ministry of Finance
Bureau of Public Enterprises

New Delhi, the 14th December 1982

OFFICE MEMORANDUM
Subject :- Routing of applications through proper channel and regulating mobility of
managerial talent between public enterprise 52nd Report of the Estimates
Committee (Third Lok Sabha) as Personnel Policies of Public Undertakings -
Recommendation No.24, (Paras 192-194).
1. The undersigned is directed to refer to the Recommendations made by the Estimates
Committee (Third Lok Sabha) in their 52nd Report on Personnel Policies wherein they
had observed that as far as possible, care should be taken to see that candidates are not
interviewed by an undertaking unless they have applied with the permission of the
existing employer. The Committee had also suggested that suitable measures should be
taken to arrest the horizontal movement of personnel to the extent it is considered
undesirable.
2. Although the above observations were brought to the notice of the administrative
Ministries/public enterprises by the erstwhile Ministry of Industrial Development, Internal
Trade & Co.Affairs (Deptt.of Industrial Development) vide their O.M.No.Pr.C16(1)/67/74
suggesting inter alia that these may be kept in vie in the matter of forwarding of
applications and making recruitment to posts in public enterprises, several administrative
Ministries have reported to the Bureau that some enterprises particularly those which
have been established in the recent past, have been entertaining applications of
employees from other undertakings without regard to the extent instructions on the
subject. In this context, it may be mentioned that the Government policy is that each
public enterprise should build up its own managerial cadre, and that mobility of
managerial talent between public enterprises should also be encouraged. There should,
therefore, be no objection to allow employees to move on selection and appointment or
even on deputation from one public enterprise to another provided their applications have
been routed through proper channel and the management of both the concerns have
concurred in. Indeed whenever such transfer of employees is effected with the consent of
the managements concerned, the concerned employee should be allowed the benefit of
transfer expenses carry forward of leave, gratuity etc. Non-compliance of this procedure
would deprive the employee concerned of these benefits. Movement of the employees
should be regulatedin such a manner as not to interfere with the degree of continuity
necessary for the efficient working of the enterprise concerned.
3. Ministry of Industry, Ministry of Chemicals & Fertilizers, Ministry of Petroleum etc.are
requested to bring the foregoing to the notice of the public enterprises under their
administrative control for necessary action.

Sd/-
(Krishna Chandra)
Jt.Director, Bureau of Public Enterprises

3.4.2
 ANNEXURE-II

NO.2(2)/85-BPE (WC)
Government of India
Ministry of Finance
Bureau of Public Enterprises

Block No.14, CGO Complex

Lodhi Road, New Delhi.

Dated the 25.7.1985

OFFICE MEMORANDUM
Subject :- Carry forward of earned leave in the event of the movement of an employee from
one public enterprises to another.

The undersigned is directed to refer to the BPEs O.M.NO.2(28)/82-BPE(GM-I) dated

14.12.1982 wherein it has been explained that whenever transfer of an employee between one
public enterprises to another is effected with the consent of the Managements concerned, the
concerned employee could be allowed the benefit of transfer expenses, carry forward of leave,
gratuity etc.
References have been received in the Bureau seeking clarification as to whether sick
leave or half-pay leave could also be permitted to be carried forward in the event of movement of
an employee from one public enterprises to another public enterprises. This matter has been
examined in its all aspects. It is clarified that the instructions referred to in para 1 of this O.M. are
only in respect of the carry forward of the earned leave or the leave on average pay, as the case
may be, and do not cover sick leave or half-pay leave which might have been accumulated by an
employee in his previous organization. The transferor organization should, however, liquidate its
liability by making a lump sum payment to the borrowing organization in respect of the leave salary
for earned leave or leave on average pay standing to the credit of the public sector employee on
the date of his transfer from one enterprise to another.
Ministry of Industry, Ministry of Petroleum etc.are requested to bring the foregoing to
the notice of the public enterprises under their administrative control for necessary action.

Sd/-
(Krishna Chandra)
Jt.Director, Bureau of Public Enterprises

3.4.3
 RULES ON FORWARDING OF APPLICATION OF
EMPLOYEES FOR OUTSIDE EMPLOYEMENT

Forwarding of application of employees for outside employment shall be regulated as under:

1.0 Applications of employees will be forwarded to Goverment, Semi-Government and Public
Undertakings.
2.0 Applications will be forwarded only against press advertisement and the applicant should
ensure that the adverisement cutting is attached alongwith the application.
3.0. The pattern of forwarding of applications for outside employment in respect of the
employees shall be as under :-

NO.OF YEARS OF SERVICE MODE OF FORWARDING OF

IN THE EXISTING GRADE APPLICATION

i) Within two years No application to be forwarded.

ii) More than two years, Two applications in a year.

but within 3 years.

iii) More than three years Any number of applications

4.0 No application for parallel grade will be forwarded. Applications for one step higher post
and grade will only be forwarded.
5.0 In respect of those Executives who are under bond like Graduate Engineers / Executive
Trainees no application will be forwarded till six months prior to completion of the bond
period. Starting from six months prior to completion of the bond period, one application
per year may be forwarded. However, if the executive concerned has been promoted in
the meanwhile, forwarding of his application would be regulated in accordance with the
provisions at clause 3.0 above.
6.0 However more applications as mentioned in clause 3.0 may be forwarded at the
discretion of management, to be decided by the Managing Director. Likewise, if any
application is not forwarded in exceptional circumstances in interest of organisation,
approval of M.D., would be necessary.
7.0 If the application of an employee has been forwarded, No Objection Certificate may
also be issued by the Department, wherever necessary.
8.0 All applications should be sent by the Controlling Officer / Unit Head to the Corporate
Personnel Department with his recommendations in the prescribed form.

3.5.1
 GRIEVANCE REDRESSAL PROCEDURE FOR STAFF
AND OFFICERS/PUBLIC
(FOR UNITS AS WELL AS FOR CORPORATE OFFICE)

1. OBJECTIVES
The objective of the grievance redressal procedure is to provide an easiliy accessible machinery for
settlement of grievances and to adopt measures as would ensure expeditious settlement of
grievances of Staff, Officers/Pubilc leading to increased satisfaction on the job and resulting in
improved productivity and efficiency of the organisation.

2. APPLICABILITY
The scheme will cover all Public/Employees including Officers of FSNL.

3. GRIEVANCE
Grievance for the purpose of this scheme would only mean a grievance relating to any Staff
member/Officer/Public arising out of the implementation of the policies/rules or decisions of the
organisation. It can include matters relating to leave, increment, acting arrangements, non-
extension of benefits under rules, interpretation of service rules etc. of an individual nature and
matters related to Public dealings. Matters related to collective bargaining such as wages,
allowances, bonus, hours of work, promotion, recruitment and any other benefits of policy nature
will be outside of the purview of the Grievance Procedure. Only individual grievance will be dealt
with under this procedure.

4. PROCEDURE FOR HANDLING GRIEVANCES

Subject to the above provisions, individual grievances of staff members, officers, workmen &
public shall henceforth be processed and dealt with in the following manner:
1. In all the Units/Corporate Office, FSNL shall place boxes viz., Grievance/Suggestion
Box, which will be kept at the reception counter of the Units/Corporate Office, keeping
in view the easy accessibility of these boxes to the Public in general and the staff.
2. The Suggestions/Grievances so received, shall be endorsed in a register called
Suggestion/Grievance Register, on every Friday, in the presence of Public/ Staff
Grievance Officers, nominated for this purpose. If Friday happens to be a holiday, the
same procedure is adopted on the next working day.
3. Under Stage-I, if an employee/public has some grievance, he will get an opportunity to
meet the Public/ Staff Grievance Officer nominated for this purpose, who will patiently
hear the grievance, and if necessary, make enquiries and give the complainant a verbal
answer within 3 working days from the date of hearing the grievance.
4. Under Stage-II, in case the employee/Public is not satisfied with the answer given by the
Public/Staff Grievance Officer, or if he does not get any reply within 3 working days

3.6.1
 time, or if his grievance does not get redressed satisfactorily at the level of Public/Staff
Grievance Officer, the complainant may meet the Unit Heads at the Units and General
Manager(Opr.) at Corporate Office, who will patiently hear the grievance, get feed-back
from the concerned persons and give his decision on the grievance, or send a reply to the
complainant.

5. Under Stage-III, if the employee/public is not satisfied with the outcome of Stage-II, he
may meet Chief General Manager of the company at Corporate Office, who will patiently
hear the grievance, analyse the same and redress it, in case he is not satisfied with the
decision taken at Stage-II.

6. If the employee/public is not satisfied with the result of Stage-I, II, & III, he may make an
appeal to the Managing Director of the company, who will, in turn, re-examine the action
taken in all the above 3 stages, analyse the grievance and communicate his decision to
the concerned employee/public, within 15 days time from the date of receipt of the
appeal.

GENERAL
i) Receipt and disposal of grievance at different stages should be recorded in a Register,
meant for the purpose - Grievance Register.
ii) No parties shall move for conciliation, adjudication or any other Govt Machinery for
intervention in the matter till all the stages of Grievance Procedure are exhausted.
iii) In calculation of the various intervals in the above procedure, Holidays, rest days and the
days when the Officers or members concerned with the procedure are not available shall
not be taken into consideration.
iv) If any employee is called by any authority who is dealing with the grievance, the employee
and his representative shall go to such authority only after obtaining due permission from
immediate superior of their department/deptts.
v) In the case of Officers who are one step below the Board level, the individual grievance
may be taken up with the concerned Director.
vi) Officers reporting directly to the Chief Executive may approach him for resolving their
grievances.
vii) Grievance pertaining to or arising out of the following shall not come under the purview
of the grievance procedure:
a) Annual performance appriasals/confidential reports;
b) Promotions including DPCs minutes and decisions;
c) Where the grievance does not relate to an individual employee or officer; and
d) In the case of any grievance arising out of discharge or dismissal of a Staff member
or Officers.
viii) Grievances pertaining to or arising out of disciplinary action or appeal against such
action shall be channeled to the competent authority as laid down under the Conduct,
Discipline and Appeal rules and certified Standing Orders of the Organisation and in
such cases the grievance redressal proceedure will not apply.

3.6.2
 OCCUPATIONAL SAFETY AND HEALTH POLICY

1.0. OBJECTIVES
Recovery and processing of scrap & slag in steel industry being a tough work involving safety
hazards, FSNL recognises that the company has a moral, economic, social and legal obligation to
prevent hazards, provide healthy working environment and guard against all possible hazards and
risks. The Company, therefore, adopts and promulgates the policy set out below for the purpose of
creating and maintaining a safe and healthy working environment.

2.0. THE POLICY

2.1. The safety and health of all employees is the major concern of the Company.
2.2. The occupational safety and health policy of the company is to serve as an instrument for
creating awareness about safe and healthy work practices and for maintaining safety and
health consciousness amongst the employees at all levels of the Organization.
2.3. All the Units will adopt techniques for handling, processing and disposing of all the
substances safely and without creating unacceptable risk to equipment, human or the
environment in which they are located.
2.4. The Company will adopt its own safety and health standards where laws or regulations
may not be available or protective enough to prevent hazards. It will follow all statutory
regulations and shall not carry out any operation if the environmental standards are
unacceptable.
2.5. Every employee of the company will adhere to the spirit as well as letter of this policy. The
managers and senior executives have a special obligation to keep employees informed
and educated about occupational risks and remedial measures.
2.6. The local (unit) management will have the responsibility for not only the safety and health
of the employees but also for the prevention of damage to the plant, equipment and
environment resulting in injuries to employees.
2.7. All the plants/units will have hazard analysis and operability studies for all the process/
operations with a view to prevent the risks therein and adopt suitable measures.
2.8. All Acts, Laws, Rules and regulations of the state and Central Government will be strictly
adhered to by all units of the Company.
2.9. The Company shall impart training in safety and occupational health to all levels of
employees in the plant and in specialised institutions so as to ensure that all employees
possess the required knowledge, information and understanding necessary to carry out the
responsibility of their jobs without endangering themselves, other employees, plant,
equipment, environment and/or product.
2.10. The Management at the unit level will have the authority to take recourse to action for
violation of statutory provisions on safety and health as well as the rules and procedures
framed for the purpose in accordance with Standing Orders or rules framed thereunder.

3.7.1
3.0. SAFETY ORGANIZATION
3.1. The Company will have a Safety Cell at Corporate Office, headed by the Head of
Operations Department, to co-ordinate, monitor, promote and enhance the safety,
occupational health, fire service and pollution control activities of the units.
3.2. This Safety Cell will comprise a multi-disciplinary team of relevant specialists for technical
guidance, advice and direction to the units.
3.3. The unit level Safety Committee will consist of the following officials :-

Unit Head - Chairman

2nd Man of Opr.Deptt. - Member

Unit Maint.Head - Member

Unit P&A Head - Member & Coordinator

3 representatives of - Members
Workmen, to be
nominated by the
Recognized Union

3.4. All facilities/co-operation would be extended by the unit management for smooth &
effective functioning of the Safety Committee.
3.5. The unit level Safety Committee shall ensure the following functions:-
a) Accident prevention, control, reporting and analysis;
b) Safety promotional activities to create a climate conducive for safety consciousness,
cultivation of safety culture and safe habits amongst employees;
c) To suggest programmes for publicity, training, education, seminars, workshops,
campaigns and special drives on safety aspects;
d) Ensure use of appropriate personal protective equipments by all employees;
e) Lateral co-ordination and liaison with Statutory authorities;
f) Maintenance, upkeep and availability of appropriate safety appliances;
g) Collect, compile and report all information and statistics pertaining to safety and
accidents to Corporate Safety Cell, regularly and in time.
3.6. The Safety Committee at unit level shall have jurisdiction over the working sites, office
premises, operational activities etc.

4.0. MEDICAL EXAMINATION

4.1. Every employee of the Company at the time of recruitment will be subjected to pre-
employment medical examination and would be recruited only when he has been
declared medically fit by the authorized medical authority.

3.7.2
4.2. Every employee so declared medically fit would conform to the medical fitness norms in
accordance with the rules and standards prescribed by the company.
4.3. All the employees, particularly above 45 years of age, may be subjected to periodical
medical examination in addition to the statutory requirements.
4.4. The Company will ensure that uniform standards and procedures are followed with regard
to medical screening for all employees at induction, during employment and at pre-
retirement. This may be reviewed from time to time.
4.5. All health screening examinations will aim at evaluating general as well as occupational
health status of employees. These examinations will include screening and diagnostic tests
as may be deemed necessary from the occupational exposure point of view.

5.0. JOINT CONSULTATION

5.1. For effective implementation of this policy, meetings on regular intervals would be held
between the Safety Cell of Corporate level and the Safety Committee of the units by
discussing & sorting out the problems & issues, if any.
5.2. Since the Safety Committee, as mentioned in clause 3.3 of the policy, consists of
representatives from Management as well as from the Unions, regular meeting of the
Safety Committee would also be held at the unit level, so that the problems faced in day-
to-day working, involving safety aspects could be discussed and sorted out, and in case of
difficulty in solving the issue, the same could be referred to the Safety Cell at Corporate
level.
5.3. The bipartite Safety Committee at the unit level, constituted for the purpose of ensuring
safety and health of the employees and work environment, may interalia, be charged with
the responsibilities of :
a) ensuring effective implementation of safety and health policy of the company;
b) ensuring implementation and compliance of the statutory provisions on the safety,
health and environment;
c) advising the management at the unit level on various issues, concerning health and
safety of the employees.
5.4. The Company will correct/isolate/eliminate/modify such work processes which are
identified to have a high risk potential, to make the working conditions safe and healthy to
acceptable levels. There shall be no monetary or material benefits in lieu of safety or
health measures for hazardous exposures.

6.0. FUNDS & FACILITIES

6.1. The company shall make a budget provision for implementation of Safety Policy of the
company at each unit.

3.7.3
6.2. The Annual Budget of the Unit shall include expenditure on:
a) Implementation of safety and health measures;
b) Procurement of instruments, equipments and personal protective appliances;
c) Maintenance of adequate and appropriate safety & occupational health organization
covering both staff and facilities;
d) Safety training to all employees in the unit and also in specialized institutions/
organization;
e) Publicity work including printing and purchasing professional books, journals,
posters, films etc.;
f) Organizing Safety & Health campaigns, training programmes, seminars and
workshops and display of safety messages and accident statistics through boards
hoardings and other display material;
g) Contribution to voluntary and professional associations/organization for
membership with a view to exchange and update knowledge and skill in the field of
safety and health.
h) Contribution to voluntary/statutory bodies for promotion of Safety & Health within
the industry or for general purpose.
6.3. The Safety Cell at Corporate level will have its own Annual Budget to cater to :
i) Creation and maintenance of adequate staff and other facilities for implementation
of Safety and Health Policy;
ii) Consultancies with specialist Agencies for special assignments;
iii) Training programmes, seminars, workshops, conference and meetings and study
tours;
iv) Membership of professional associations/organizations/ institutions;
v) Contribution to Voluntary/Statutory bodies for promotion of Safety & Health;
vi) Procurement of reference books, periodicals, journals and education material on
Safety, Health, Fire Services and Pollution Control;
vii) Visits to the Units.

7.0. RULES & PROCEDURES

7.1. The Rules and Procedures for the effective implementation of this policy will be drawn out
at the unit level and will be made known to all the employees in a language understood by
majority of them.
7.2. The Rules and Procedures so framed at the unit level will be supplementary to the
statutory provisions in the sphere of Occupational Safety and Health and be without
prejudice to the statutory provisions formulated by the Director General of Mines Safety/
State Factory Inspectorate system and other Statutory Authorities.

3.7.4
8.0. STATISTICS, AUDIT & REVIEW
8.1. The statistics on Safety and Health shall be compiled on periodical basis and submitted to
Head of Operations Department at Corporate Office and to the Unit Head at the unit
level, in addition to the authorities as envisaged under the different legislations.
8.2. The management shall undertake periodical audit of safety and health care activities with
a view to find out the status of implementation and compliance of the safety and health
recommendations.
8.3. The annual safety and health audit will be carried out at the unit level by a group
constituted by the Corporate Safety Cell. For this purpose, the group would undertake
inspection of the relevant documents and would also undertake visit and physical
observation of areas, so as to find out how far the Safety & Health Policy has actually
been implemented and complied with by the concerned departments.
8.4. In the event of violation or non-compliance of the provisions of the occupational Safety
and Health Policy/ or Statutory provisions, the Safety and Health Audit Report shall be
submitted by the group to the Head of Operations Department at Corporate Office and to
the Unit Head at the Units, highlighting the defaults together with recommendations if
any, for implementation/ compliance both immediate as well as in the long term.
8.5. The statistics and audit report of safety and occupational health measures would also be
reflected in the Annual Report of the Company.

9.0. STANDING ORDERS

9.1. Every employee would be personally responsible to abide by the provisions of law and of
the standing orders of the unit on safety and health.
9.2. The Safety Committee at the unit level would be charged with the responsibility of
overseeing and monitoring the effective implementation of the provisions of the standing
orders on safety and health respectively by concerned authorities.

10.0. EMPLOYEES ROLE

10.1. Every employee of the company is expected to function effectively for the safety and
health of himself as well as co-workers.
10.2. Every employee of the company will participate voluntarily in the safety and health care
programmes, health education and safety training programmes and effectively impart such
information to co-workers and also to family members.
10.3. Every employee of the company is responsible to make his personal contribution to safety.
He is also responsible in the light of his knowledge and experience with regard to his own
personal safety and that of his co-workers as well as of any material/property entrusted to
his care. It shall be his duty to:
a) Observe the safety rules;
b) make use of safety appliances supplied to him;

3.7.5
 c) ensure useage of proper safety appliances by the employees working under him;
d) follow instructions of safety and health issued by the competent authority;
e) participate in safety and health programme actively.
10.4. Every employee shall maintain a high order of safety and health discipline. It is the
responsibility of every employee, every person undertaking work on behalf of the
Company/Units or every person working in the premises of the companys unit to act in
such a way that he will
a) not endanger himself, other people, plant and equipment or product;
b) follow safe working practices;
c) not damage any equipment or facility provided for ensuring safety and health
measures.

11.0. CONTRACT LABOUR

11.1. All labourers of contractors/sub-contractors engaged in all kinds of jobs shall adopt safe
and/healthy work practices as prescribed by the company from time to time. The
contractors/sub-contractors shall be responsible for the safe working and safety of their
employees. They shall designate a person to be responsible for safe working and he shall
maintain regular liaison with the safety department at the unit level.
11.2. The contract labour shall subject themselves to such medical examinations as required by
the law and/or by the company.
11.3. Suitable clauses shall be incorporated in all contracts to ensure safe working, including use
of appropriate safety appliances.
11.4. Management at the unit level would ensure fulfilment of their obligations under the law as
Principal Employer.

12.0. GENERAL
12.1. The Higher management of the Company shall periodically discuss/review the progress
made in the area of Occupational Safety, if necessary.
12.2. This Policy will be reviewed as and when required to incorporate changing concepts and
shall be distributed free of cost to all employees in English and/or in other language
understood by majority of the employees.

3.7.6
 4.0

ADVANCES
 RULES REGARDING GRANT OF ADVANCE FOR
PURCHASE OF MOTOR VEHICLE / MOTOR CAR /
MOTOR CYCLE / SCOOTER / MOPED

1.0 OBJECTIVE
1.1 To assist the employees of the Company in the purchase of Motor Vehicle (Motor-car
(including Motor cycle / Scooter / Moped) by providing an advance.

2.0 SCOPE
2.1 These rules shall apply to all employees who have completed one year of service,including
Graduate Engineers/Executive Trainees on completion of training.
2.2 These rules will be implemented subject to availability of funds in the annual operation
budget of the Company and shall be granted on the basis of total service seniority of
employees in the Company. In case there is a tie in date of appointment, the seniority for
this purpose will be decided on the basis of age.

3.0 DEFINITIONS
3.1 "Sanctioning Authority means Officer(s) to whom powers have been delegated in this
regard as per Delegation of Powers.
3.2 "Company means Ferro Scrap Nigam Limited and Plants / Units / Offices under its
charge.

4.0 ELIGIBILITY
4.1 The rules shall apply to all employees including Management Trainees on completion of
one year training but will exclude the following:-
a) Casual, Part time, work charges and other temporary employees;
b) Apprentices and trainees during the period of apprenticeship / training;
c) Persons appointed on contract for less than 3 years;
d) Employees under suspension;
e) Foreign technicians;
f) Deputationists;
g) Employees on probation on first appointment except Management Trainees.
4.2 Employees drawing Basic Pay of Rs.2620/- p.m., and above will be eligible for advance
for purchase of Motor-Cycle / Scooter / Moped.
4.3 Executive drawing Basic Pay of Rs.4875/- p.m. and above will be eligible for advance for
purchase of Motor-Car (including Jeep).
NOTE : Basic pay will include NPP and Personal pay.

4.1.1
5.0 ENTITLEMENT
5.1 The maximum amount of advance admissible is as under :
5.1.1 For Purchase of Motor Car (including Jeep) :
Rs.80,000/- (Rupees Eighty Thousand only) or 35 months pay or cost of the car
on road as purchased whichever is less.
5.1.2 For Purchase of Motor-cycle / Scooter :
Rs.15,000/- (Rupees Fifteen thousand only) or cost of the vehicle on raod as
purchased whichever is less.
5.1.3 For Purchase of Moped etc. :
Rs.7,500/- (Rupees Seven Thousand Five Hundred only) or price of vehicle on
road as purchased whichever is less.
NOTE : On road means purchase price, Insurance, and Road Tax.

6.0 INTEREST
6.1 The amount of advance shall carry a simple interest as per Government rules as declared
by the Central Government from time to time.
6.2 The rate of interest is, however, subject to variation as per decision of the Company.
6.3 The interest shall be calculated on the basis of yearly reduced balance at the end of the
year.

7.0 REPAYMENT:
7.1 The advance shall be repaid in :-
i) Not more than 80 monthly instalments for Scooter / Motor - cycle.
ii) Not more than 50 monthly instalments for Moped; and
iii) Not more than 144 monthly instalments for Car.
7.2 Interest shall be recovered in one or more additional instalment(s) each instalment being
not more than the monthly recovery of advance.
7.3 The advance shall be recovered by pay roll deduction in each month commencing from
the month following the month in which the advance is drawn.
7.4 If the tenure of service of an employee is expected to be less than the normal repayment
period, the instalments shall be so regulated that the advance with interest is recovered
before he / she leaves the Company.
7.5 An employee separated from the Companys service due to resignation before completion
of the repayment of the advance with interest shall be liable to refund the balance amount
due to the Company before such separation.
7.6 If an employee is under suspension, the instalment amount during the period of
suspension may be reduced at the discretion of the Sanctioning Authority, but the total
advance with interest shall be recovered within the scheduled period.

4.1.2
8.0 CONDITIONS FOR GRANT OF ADVANCE:
8.1 The advance will be admissible for purchase of one vehicle only.
8.2 Assessment of price of vehicle
If the vehicle is new, the price of vehicle shall be indicated in the Sale Invoice issued by
the dealer; if the vehicle is not a new one, the price of the vehicle and fitness(i.e. it is in
sound condition and road worthy) shall be assessed by a Committee comprising of
following Officers in their respective Units:
1. Unit Head
2. Unit P&A Head
3. Unit F&A Head
The Committee would critically examine the condition of the vehicles and documents and
declare reasonability of the price at which transaction expected to be completed. If the
advance is already drawn and the Committee certifies that the vehicle is not fit, advance
shall be refunded to the company within 30 days.
8.3 Excess amount to be refunded :
If the price of the vehicle is less than the amount of advance drawn, the excess of the
amount shall be refunded to the Company within 7 days of the purchase.
8.4 Items included in the price of the vehicle :
The price of the vehicle will include expenditure on the items like spare wheel together
with a tyre and tube, the pillion seat of scooter, which have to be purchased alongwith the
Motor-car, Motor-Cycle/Scooter, Moped.
8.5 The sanctioning order for the advance shall be valid for a period of 3 months.
8.6 An advance for purchase of vehicle can be granted if the application is made within a
period of 30 days from the date of purchase / finalisation of the deal.
8.7 Purchase to be effected within 30 days:
An employee shall purchase vehicle not later than 30 days from the date of drawal of
advance. Otherwise the advance shall be forthwith refunded to the Company.
8.8 Agreement for repayment
An employee shall before the drawal of advance, execute an agreement in the prescribed
form.
8.9 Insurance of vehicle against total loss
a) Immediately after purchase, the vehicle shall be insured by the employee concerned
against total loss by fire, theft, accident and / or SRCC for not less than the amount
advanced / amount due to the Company, until advance with interest is repaid. (If at
any time the amount insured is less than the amount of advance plus interest, the
Company reserves the right for insuring for the balance amount and recovering the
amount of premium from the concerned employee). In the event of total loss of
vehicle and the insurance compensating the Company for a sum of which is less
than the amount outstanding against the employee,the Company shall have the

4.1.3
 right to recover the difference from the employee.
b) At the time of taking the insurance policy, the employee shall write a letter to the
Insurance Company notifying that the vehicle is hypothecated to the Company.
8.10 Insurance Policy to be deposited to the Company.
A copy of the Insurance Policy shall be deposited with the Company within 30 days after
the purchase of the vehicle
8.11 Hypothecation of the Vehicle to the Company
a) The employee shall hypothecate the vehicle as a security for the advance, and the
cost price of the vehicle shall be entered in the prescribed Deed of Hypothecation.
b) The Deed of Hypothecation shall be deposited with the Company within 30 days of
the delivery of the vehicle. The Deed of Hypothecation shall stand cancelled after
the advance with interest is fully paid, and it shall be returned to the employee duly
endorsed on the same to that effect on request.
8.12 Failure on the part of employee
a) In the event, an employee fails to comply with or to fulfill any provision of the
scheme, the Company shall be at liberty to proceed against the hypothecated
property and sell the vehicle to recover the balance due to the Company.
b) In the event of not purchasing the Motor-Car / Motor-Cycle/ Scooter / Moped etc.,
and in the failure to refund the advance with interest to the Company within 30
days of the date of drawal of the money, the Company shall be entitled to take
disciplinary action as deemed fit against him.
8.13 Disposal of vehicle before advance is repaid
The advance shall be used only for purchase of a vehicle as approved by the Sanctioning
Authority. The concerned employee shall not dispose of the vehicle in any manner
whatsoever, during the period in which any portion of the advance is unpaid.
8.14 Sale / Transfer of vehicle
An employee desiring to sell or transfer ownership of the vehicle to another person during
the period of the vehicle is hypothecated to the Company, shall be required to obtain
prior approval of the Sanctioning Authority, and subject to the following conditions:-
a) If he does not wish to purchase another vehicle, the balance amount due to the
Company shall be refunded within 7 days of the sale / transfer.
b) If he wishes to purchase another vehicle with sale proceeds of the previous vehicle
subject to approval of the Sanctioning Authoirty, he may purchase another vehicle
subject to the following conditions:-
i) He shall buy a new vehicle and not a second-hand vehicle.
ii) The purchase is made within 30 days of the sale / transfer of the previous
vehicle.
iii) He shall continue to repay the balance amount of the advance to the
Company.

4.1.4
 iv) He shall be required to comply with provision of this Scheme as for grant of
new advance including:-
1) Price 2) Fitness Certificate
3) Insurance 4) Hypothecation
v) If the balance due to the company is in excess of the price of the newly
purchased vehicle, the excess amount shall be refunded to the Company,
within 7 days.

9.0 PROCEDURE
9.1 An employee desiring to draw advance under this rules, shall apply to the Sanctioning
Authority in the prescribed form.
9.2 The employee should execute an agreement in the prescribed form for drawing the
advance on non-judicial stamp paper of an appropriate value.
9.3 An employee shall, within 30 days of the purchase of vehicle, submit the following
documents to the Sanctioning Authority / his nominee.
a) Sale Invoice or Certificate of Price.
b) Registration document of the vehicle in the name of the employee (which shall be
returned after verification).
c) Copy of the Insurance Certificate.
d) Deed of Hypothecation on non-judicial stamp paper of appropriate value.
9.4 The Registration book of the Car / Motor-Cycle / Scooter / Moped, shall also contain an
endorsement by the Registering Authority that it is Hypothecated to the Co.

10.0 SECOND / SUBSEQUENT ADVANCE

10.1 Second / Subsequent advance will be granted only after the vehicle purchased from the
previous advance has been sold/ stolen or rendered as unserviceable after completion of
10 years from grant of first advance; and
10.2 In the case of 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 case he
will be allowed advance for Car minus the advance already drawn for the two wheeler.
10.3 When the old vehicle is sold, the amount of the second / subsequent advance will be the
amount as per the rules or the amount arrived at by deducting the sale proceeds of the old
vehicle from the price of the second vehicle, whichever is less.

11.0 TENURE
11.1 These rules shall come into force with immediate effect.
11.2 Company reserves to itself the right to modify, cancel and amend any of these rules
without prior notice.
11.3 Not with standing what is contained hereinafter, the Company reserves to itself the right to
reject any application without assigning any reason thereof.

4.1.5
 RULES FOR GRANT OF ADVANCE FOR THE

PURCHASE OF BICYCLE

1.0 OBJECTIVE
1.1 To assist the Non-executive employees of the company in the purchase of bicycle by
providing advance.

2.0 SCOPE
2.1 These rules will be applicable to all the non-executive employees.

3.0 ELIGIBILITY
3.1 All employees who have completed one year of service but excluding casual employees,
apprentices and employees under suspension.

4.0 DEFINITIONS
4.1 Sanctioning Authority means an authority to whom powers have been delegated.
4.2 Company means Ferro Scrap Nigam Limited and the Plants/Units/Offices under its
charge.

5.0 AMOUNT OF ADVANCE

The maximum amount of advance admissible will be as under:
i) Rs. 800/- for the new bicycle purchased from an authorised dealer or the actual cost,
whichever is lower.
ii) Rs. 600/- for second-hand bicycle or the actual cost, whichever is lower.

6.0 CONDITIONS FOR GRANT OF ADVANCE

6.1 All employees will be required to submit surety bond in the Prescribed Form any
employee who has completed one year of service.
6.2 Applications for grant of advance should be submitted in the prescribed application form.
6.3 An employee who takes an advance, shall within one month of drawing the advance
furnish to the Sanctioning 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 should be refunded forthwith.

4.2.1
7.0 RECOVERY OF ADVANCE
7.1 The advance will be recovered in monthly installments commencing from the month
following the month in which advance is drawn by the employee.
7.2 The advance will be recovered in not more than 25 equal monthly installments.

8.0 INTEREST
8.1 Simple interest will be charged at the rate applicable to Central Government employees on
the date the advance is drawn. The interest will be calculated on the balance outstanding
on the last day of each month. The amount of interest will be recovered in one additional
installment if the principal amount is repaid in installments not exceeding 12 and in other
cases in two installments from the pay payable to the employee immediately after the full
amount of advance is recovered.

9.0 GRANT OF SECOND ADVANCE

9.1 The second advance should not ordinarily be granted within 3 years of the drawal of the
first advance unless the Sanctioning Authority is satisfied that the bicycle purchased by
taking earlier advance has been stolen/damaged beyond repairs/become unserviceable.

10.0 TENURE
10.1 These rules shall come into force with effect from the signing of the Agreement.
10.2 The Company reserves to itself the right to modify, cancel or amend any of the rules
without prior notice.

4.2.2
 HOUSE BUILDING ADVANCE RULES

1.0 OBJECTIVES
To authorise the employees of the Company to secure loans/advances from outside
specialised agencies like LIC, HDFC, HUDCO, Nationalised Banks etc., for construction of
dwelling house.

2.0 POLICY
To subsidise the difference between the interest chargeable to employees on such house
building loan / advance taken by the employees from such outside agencies and the
interest that is required to be borne by the employees under Companys rules. This will be
done as a purely welfare measure. This will not confer any right or benefit on the
employee covered nor impose any obligation or liability on the Company.

3.0 SCOPE
3.1 The word employees means those who are on the permanent roll of the company duly
confirmed in their post after completion of probationary period on their appointment.
These shall not apply to casual, part-time, those on contract for less than one year, those
on daily wages, trainees, work-charged and probationers.
3.2 Deputationists in the Companys service or Company employees on deputation outside,
shall be governed by the terms and conditions of such deputation.
3.3. The employees will be required to obtain prior permission/ approval of competent
authority before applying for/ release of loan by the loan-lending agency for the purpose
of availing the benefit under this scheme.

4.0 INTEREST SUBSIDY

The employees will bear the interest as shown against each quantum of loan and the
balance interest chargeable to them by financial institutions, will be subsidised by the
Company, on production of necessary documents and evidence by the employees, in
support of having paid the higher interest:
i) Upto Rs.1 lakh : @ 4% per annum
ii) From Rs.1 lakh to : @ 10% per annum
3 lakhs

4.3.1
 The interest subsidy on house building advance will be reimbursed to the employees on the
quantum of loan upto a maximum limit of Rs. 3.00 Lakhs, in the following manner :-

A) QUANTUM OF LOAN INTEREST TO BE SUBSIDISED

i) Upto Rs. 1 Lakh : Any amount above 4% per annum
that may be charged by the loan
lending agency.

ii) From Rs. 1.01 Lakh : Any amount above 6% per annum
to Rs 3.00 Lakh that may be charged by the loan
lending agency.

B) The rate of interest for employees, who have availed HBA prior to 1st April 2005 at higher
rates, would stand modified as per the above rates. However, the revised rate in such cases will be
applicable on the outstanding principal amount only, as on 1st April 2005.

4.1 The reimbursement of interest subsidy shall be for the following purposes :
i) Acquisition or purchase of land (free-hold or long term lease)
ii) Construction of house on such land already owned or purchased or acquired on
long-term lease by the employee in his name or jointly in the names of the
employees and his spouse.
iii) The plot of land should be a developed one on which construction could be started
immediately.
iv) Purchase of a newly built house or flat on ownership basis.
v) Purchase of a flat or house under Self-Financing Scheme or any other housing
scheme of Govt., Central or State, directly or through Managing Boards,
Municipalities, local bodies and Co-operative Housing Societies.
vi) For enlarging living accommodation of existing house.
4.2 The maximum amount of loan on which subsidy of interest is allowed is given below :
a) FOR NEW HOUSE/FLAT CONSTRUCTION
i) 60 months Basic Pay at the time of application; or
ii) 80% of the total value of Purchase/acquisition of land and house to be
constructed or 80% of the purchase price of a ready-built house; or
iii) Rs. 3 lakhs,
whichever is least.
The Company may retain at its own cost an Architect who will render the necessary
services to assess the property valuation and a Lawyer to check the validity of documents
of title and or cost estimate is certified by the company Lawyer/Architect.
b) FOR ENLARGING LIVING ACCOMMODATION OF EXISTING HOUSE
i) 60 times the basic pay of the employee at the time of application; or
ii) 80% of the cost of enlargement; or

4.3.2
 iii) Rs. 90,000/-
whichever is least provided house building advance has not been taken earlier.
4.3 The subsidy shall be admissible for construction/acquisition of houses/flats at the place of
duty of work of the employee or anywhere in India where employee wishes to settle down
on superannuation and for the houses to be constructed/constructed in the areas beyond
the limits of Municipal Corporation/Municipality for the purpose of purchase/acquisition
of land (free hold or long term lease) and construction of home/flat thereon. The advance
will be secured by an English Mortage.
4.4 In cases where both husband and wife are employees of the company, the subsidy shall
be admissible only to one of them.
4.5 No employee shall be eligible for the subsidy if:
a) He is on deputation from the Central or State Govt.,
b) He/She owns a house in his/her own right, individually or jointly.
c) The wife/husband, minor children or any other legal dependent of such employee
own a house whether individually or jointly.
4.6 PERIOD OF INTEREST SUBSIDY
Interest subsidy will be restricted by the company for -
i) The period in which the employee is in the service of the Company; or
ii) Till the date of repayment of initial eligible amount to the lending money agency, in
case the employee has taken loan over and above eligible amount whichever is
earlier.
5.0 The facility for subsidising difference of interest for construction of house shall be granted
only once in the service career of employee.
5.1 The reimbursement of interest subsidy will be made quarterly, i.e. as on 31st March, 30th
June, 30th September and 31st December every year on production of prescribed proof
and documents.
5.2 The date of completion of construction must be reported to the competent authority
without delay.
5.3 An employee furnishing wrong or false information or certificates/documents or misusing
the facility in any form will be guilty of misconduct and will render himself/herself liable of
disciplinary action, involving major penalties apart from incurring the liability to refund the
entire amount withdrawn towards subsidy of interest.
5.4. The Interest subsidy as above shall be granted subject to the condition that prior
permission of competent authority is availed before applying for loan/sanction of loan by
the loan lending agency.

4.3.3
6.0 HOUSE RENT ALLOWANCE
An employee who avails facility for subsidising the difference of interest under these rules
for construction of House shall be eligible for house rent allowance as per the House Rent
Allowance Rules.

7.0 VACATION OF CO.S RESIDENTIAL ACCOMMODATION

Sanction of facilities for subsidising difference of interest to the employees for acquiring/
building a house/flat at the place of his/her posting or within its extended municipal limits
will be on the condition that they will vacate the company house or lease accommodation
allotted to them by the company within one month of occupation of the house.

8.0 TENURE
These rules shall come into force with immediate effect. The company reserves the right to
amend or add from time to time and in such manner as it may deem fit any rules and/or
procedures framed in this connection. The Company reserves the right to withdraw or
suspend the scheme partially or wholly without assigning any reason.

4.3.4
 RULES FOR PAYMENT OF FESTIVAL ADVANCE

1.0 COVERAGE

Employees (Executive & Non-Executive) who are on the permanent roll of the company
shall be eligible for payment of Festival Advance.

2.0 AMOUNT OF ADVANCE

Such employees will be paid a lump sum amount upto 2,500/- which will be free of

interest on the eve of festivals which shall be notified by the company at the beginning of
each calendar year. An employee will however have to apply for advance and forward it
to Personnel Deptt. for examination and recommendation to Finance Deptt.

3.0 The advance shall be recovered from the immediate succeeding months salary of the

employees in 10 equal monthly installments.

4.0 The advance shall be drawn only once in a calendar year and before the date of the
concerned festival.

5.0 The advance shall not be paid until and unless advance drawn during the preceding
calendar year has been fully recovered.

6.0 Employees who have not completed 1 year of continuous service shall not be eligible for

this advance.

7.0 Employees shall be required to give their choice of festival against which they like to draw
Festival Advance at the beginning of every calendar year. Any change in the choice of
festival for drawing advances shall not normally be entertained.

4.4.1
 5.0

INCENTIVE / MOTIVATIONAL

SCHEME
 INCENTIVE SCHEME FOR ACQUIRING PROFESSIONAL
QUALIFICATIONS

1.0 OBJECTIVE
To encourage employees to improve their knowledge and professional competence by
undertaking advance studies relevant to their function in the Company.

2.0 POLICY
Employees shall be given increments when they acquire additional qualifications, as
specified and relevant to the area of responsibility, during their service in the Company.

3.0 SCOPE
This Scheme shall cover all employees of the Company below the Board level including
Management Trainees.

4.0 SANCTIONING AUTHORITY

Managing Director/Chief Executive or such other authorities to whom these powers are
sub-delegated shall be the Competent Authority for grant of this incentive to employees in
Plant/Units.

5.0 ENTITLEMENT
5.1 The number of increments admissible for acquiring different professional qualifications is
given at Annexure-A.
5.2 Increments under this Scheme shall be granted not more than twice during the tenure of
the service of an employee.
5.3 Advance increments granted under this scheme shall in no way effect the annual
increment and the due date thereof.

6.0 ELIGIBILITY
6.1 Employees in the Company below the Board level who qualify in the final examination as
in Annexure-A shall be eligible for the increment with effect from the date the final result of
the examination is declared and their prescribed training, if any, is completed.
6.2 Employees who have acquired the Professional qualification specified in Annexure-A
while in service, but not received incentives in the scheme already in existence are eligible
for the incentive under this scheme from the date of effect of the scheme.
6.3 The grant of incentive shall be subject to production of official proof in support of
acquisition of the prescribed qualifications.

5.1.1
6.4 The grant of leave, if required for prosecuting studies or for appearing at the examination
shall be subject to the normal leave rules of the Company.
6.5 The Company may utilise the services of an employee in a department/function in which
the professional qualification acquired by him could be relevant or more advantageously
utilised.
6.6 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.
6.7 The employee in common channel for consideration to higher post, are eligible for
incentive under this Scheme, if the qualification acquired is relevant to the function
covered by the higher post. In other words, if a person is eligible for promotion to a post,
the acquisition of qualification which is relevant for the higher post will entitle the
employee to be covered under this scheme.
CLARIFICATION
(i) Employees who are in common channel and are in the same cadre with liability for
inter-departmental or inter-directorate transfer can be given the benefit of the
Scheme without regard to the actual place of posting at the time they acquire
qualification or apply for increment under the Scheme.
(ii) Clause 6.7 will be applicable only to the main/principal channel of promotion and
not to additional channel of promotion which might have been provided in
individual cases or to specific categories of employees.
6.8 Employees shall not be eligible for the incentive under this scheme in the following
circumstances:
6.8.1 If they are sponsored at the expense of the Company for the examination/
training to acquire the qualification.
6.8.2 If the appraisal reports are not of the same standard as prescribed in the
promotion policy.

7.0 PROCEDURE
7.1 An eligible employee may apply for the incentive under the scheme through proper
channel in the prescribed form (Annexure-B).

8.0 TENURE
This scheme is liable to be cancelled/withdrawn at the discretion of the Chairman of the
Company without any notice and without assigning any reasons thereof. Likewise, the
Chairman reserves to himself the right to alter and/or amend the Scheme including
additions or deletion to the list of the professional qualifications.

5.1.2
9.0 The employees drawing additional increment under the Incentive Scheme for acquiring
professional Qualifications while in service of the Company, shall be required to serve the
Company for atleast one year from the date of grant of such additional increments to
them.
GENERAL CLARIFICATIONS
1. Increments will not be admissible for the second time if the Post Graduate Degree/
Diploma acquired is in the same field or discipline.
2. Where there is no scope in the scale of pay to absorb the increments granted under
the scheme i.e. if the entitlement exceeds the maximum of the scale of pay or in the
case of employees who have already reached maximum of pay at the time they
become eligible for the increments, the amount in excess of the maximum of the
scale of pay will be treated as personal pay. The personal pay shall be added to the
basic pay while fixing the pay on subsequent promotion. If there is no scope in the
higher grade also, the difference will continue as personal pay till it is added to the
basic pay in subsequent promotions.

5.1.3
 ANNEXURE B

APPLICATION FORM
(Ref.Rule 7.0)

INCENTIVE SCHEME FOR ACQUIRING PROFESSIONAL

QUALIFICATIONS

To:

(Sanctioning Authority)

Through : PROPER CHANNEL

Name :

T.No. :

Designation :

Department/Section :

Grade & Present Pay :

Examination Passed :

Date of Passing the Qualification :

Documentary Proof of examination

Passed is enclosed. :

Date : (Signature of the Applicant)

(FOR OFFICE USE ONLY)

Number of increments sanctioned :

SIGNATURE OF
DATE : SANCTIONING AUTHORITY

5.1.4
 ANNEXURE - A

APPROVED PROFESSIONAL QUALIFICATIONS

Ref. Rule 5.1

INCENTIVE SCHEME FOR ACQUIRING

PROFESSIONAL QUALIFICATIONS

Eligible Employees Number of

S.No Specified Qualifications subject to clause increments
2.0
1. 2. 3. 4.

1. Section A & B of Associate Employees other than 2

Membership Examination of Graduate in Engg.,
Institute of Engineers India or working in Technical
Section A & B of the Institution discipline.
Examination of the Institution of
Engineers (India).

2. LME / LEE / LCE from do 1

recognised institution.

3. Post Graduate degree in Employees who are 2

any branch of Engg., of Graduates in Engg.
not less than two years working in Technical discipline
duration from recognised University.

4. Recognised Post-Graduate Employees in Personnel 2

Diploma or Degree in (including Industrial
Labour Welfare / Social Relations) deptt. who
Work of not less than 2 do not possess equivalent
years duration qualifications.
5. Recognised Post-Graduate do 1
Diploma in Labour/Social
Work of not less than nine
months duration or the factories
Welfare Officers Examination
conducted by the State Government.

5.1.5
 Eligible Employees Number of
S.No Specified Qualifications subject to clause increments
2.0

1. 2. 3. 4.

6. Recognised Post-Graduate Employees in Personnel 2

degree or Diploma in / Marketing /Materials
Business Management of Management.
not less than 2 years duration.

7. Final examination of the Employees in Accounts 2

Institute of Cost and Works Department. Also employees
Accountant / Chartered of Board and Company
Accountant of India or U.K. affairs

8. Final examination for Employees in Accounts 2

the Management Department.
Accountancy conducted by the
Institute of Cost & Works
Accountants or Chartered
Accountants of India or U.K.

9. Final examination of the Employees working in 2

Institute of Company
Secretaries of India or
Chartered Secretaries of
U.K.
Board and Company
Affairs and Law Deptts.
Also for employees of
Finance & Accounts
Departments.

10. Recognised Diploma in Employees of Stores & 1

Industrial Purchasing & Purchase Departments.
Materials Management.

11. Degree in Law (LLB) from Employees in Law, Vigi- 2

a recognised University/ lance, personnel & Town
Institution. Administration.

5.1.6
 Eligible Employees Number of
S.No Specified Qualifications subject to clause increments
2.0

1. 2. 3. 4.

12. Recognised Post-Graduate All Employees Working For course of

Degree or Diploma in in any department 2 years duration
Business Management and 2 increments. For
Diploma in Management Course less than
of All India Management 2 years duration
Association. one increment.

13. M.A. in Public Employees in General 2

Administration from a Admn., Town Admn.,
recognised University/ Personnel & Marketing.
Institution.

14. Recognised Post-Graduate Employees who are For Course 2

Degree / Diploma including graduate in the years duration
Doctorate in any discipline concerned discipline. 2 increments.
which is already covered For Course
under the scheme. less than 2
years one
increment.

15. Recognised Degree / Employees in Personnel do

Diploma in the field of
Personnel Management /
Industrial Relations / Labour
Laws / Labour Welfare /
Social Work.
& I.R. Departments who
do no possess equivalent
qualifications.

16. Recognised Post-Graduate Employees in Materials do

Diploma in Materials Management Department.
Management awarded by the
Indian Association of Materials
Management.

5.1.7
 Eligible Employees Number of
S.No Specified Qualifications subject to clause increments
2.0

1. 2. 3. 4.

17. Recognised Diploma in All Employees working 2

different branches of
Engineering such as
Automobile & Electronics
(at present LME / LCE & LEE
are covered for incentive).
in relevant technical
discipline are also
covered.

18. Degree / Diploma in Employees of Vigilance 2

criminology acquired Security / Intelligence
from a recognised institute Departments.
of not less than two years
duration.

19. Bachelors degree in Employees working in 1

Library and Information Library.
Science from a recognised
Institute.

5.1.8
 INCENTIVE SCHEME FOR PROMOTING
SMALL FAMILY NORMS
1. Grant of Rs.2000/- to Male and Female employees of the Company for undergoing
sterilization (Vasectomy /Tubectomy) operation after having 2 to 3 surviving children
including step children, if any. the entire amount of Rs.2000/- will be paid to employees in
cash.
2. Cash incentive of Rs.2000/- will be paid to such employees (or their spouse) who undergo
the operation after one child also at par with the incentive available for undergoing
operation after two or three living children.
3. Such employees (or their spouses) who undergo the sterilization operation after having
more than 3 children will be allowed cash incentive of Rs.200/- only.
4. The special Casual Leave for employeesundergoing sterilisation operations would be
granted as under:
(a) 14 days Special Casual Leave would be granted to female employees for
undergoing Tubectomy Operation. The husbands of the female employees, who
have undergone Tubectomy operations, would be granted 7 days special casual
leave.
(b) 2 days Special Casual Leave would be granted to male employees for undergoing
Vasectomy operation. The period can be extended upto 6 days if the competent
medical authority recommends so.
(c) The Special Casual Leave of 2 days / 6 days for undergoing Vasectomy operations
may also be granted for second time sterilisation operation, in case the first
operation is not successful.
(d) The Special Casual Leave as above, would be exclusive of the intervening Sunday /
holidays.
(e) One days Special Casual Leave would be granted to female employees for IUCD
insertions.
5. Grant of concession and incentive is subject to the following conditions:
i) The employees must be within the reproductive age group. In the case of a male
employee, this word means that he should not be over 50 years and his wife should
be between 20 to 45 years of age. In the case of female, she must not be above 45
years and her husband must not be over 50 years of age.
ii) The sterilisation operation must be conducted and the sterilisation certificate must
be issued by an authorised competent authority of the hospital. Where this is not
possible, the sterilisation certificate issued by a State Government Hospital or an
Institution recognised by the Central Government for the purpose will suffice.
iii) The sterilisation operation can be undergone either by the employee or his/her
spouse provided the conditions at Sl.Nos. (i) and (ii) above are fulfilled.
6. Employees (or their spouses), who undergo sterilisation operation, will be allowed the
incentive given by the respective State Government in addition to the incentive provided
by the Company.
7. The benefit of Special Casual Leave for undergoing sterilisation operation will be
uniformly allowed to all employees irrespective of the number of children after which the
operation is undergone.

5.2.1
 INCENTIVE SCHEME FOR PROMOTION OF
PROGRESSIVE USE OF HINDI IN
DAY TO DAY OFFICE WORK

1.0. Objectives
1.1. To encourage employees acquire qualifications in the Hindi Language and use Rajbhasha
Hindi in their official work.
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.

2.0. Policy
2.1. To ensure increasing use of Hindi in the official work in FSNL.
2.2. To sponsor employees not having working knowledge of Hindi, to acquire qualifications in
Hindi under the Hindi Teaching Scheme of the Govt.of India.
2.3. To provide training to English Stenographers/PAs/EPSs in Hindi Stenography.
2.4. To provide training in Hindi Typewriting to those Assistants/Sr.Assistants whose job
normally involves English typing.
2.5. To liberalize the Hindi Incentive Scheme of the Govt.of India and to provide better
incentives on:
a) Acquiring qualifications in Hindi
b) Passing Hindi Stenography/Typewriting examinations;
c) Doing official work in Hindi exclusively or in addition to English.

3.0. Scope
3.1. This incentive scheme shall cover all employees of the Company excluding the daily rated
staff, contract labour, messengers, security guards, drivers, tea boys, stewards etc.and
operational staff.
3.2. Deputationists in the Companys service or Companys employees on deputation outside,
shall not be covered under this scheme.
3.3. Employees posted in the Hindi Cell or those appointed for doing Hindi work and posted
in other departments/sections shall not be covered under this scheme except as otherwise
provided in the Incentive Scheme.

4.0. Facilities
4.1. No fee will be charged towards tuition or for examination conducted under the Hindi
Teaching Scheme.

5.3.1
4.2. Text books for Prabodh, Praveen and Pragya examinations will be supplied free of cost.
4.3. Classes will be held during office hours.
4.4. TA/Actual conveyance charges as admissible under FSNL TA Rules will be allowed for
attending training classes and for appearing in the examinations in case these are held out
of the office premises or out of station.
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 office to the training/examination centre and vice-versa.
4.6. Duty leave will be granted for appearing in the examination.
4.7. An entry will be made in the service record in passing the prescribed Hindi Examination.
4.8. Cash awards and Lump-sum awards granted on passing the Hindi Examinations are
income tax free.

5.0. Grant of Personal pay for Passing of Examinations

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:-
i) Pragya or equivalent recognised Hindi examination;
ii) Hindi Stenography examination;
iii) Hindi Typewriting examination.
5.2. Employees whose mother tongue is not Hindi, will be granted personal pay equal in
amount to two increments, on passing the Hindi Stenography 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 personalpay is, say
Rs.40/-, will be granted an increment of Rs.40/- 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 Rs.40/- per month), the rate of increment increases from
Rs.40/- to say Rs.50/- he/she will draw a personal pay equal to Rs.50/- 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 5.2 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 5.1 and 5.2 above, gets
promoted to the next higher scale of pay he will draw for the remaining period of 12

5.3.2
 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.
5.3. 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
his/her personal pay under the Hindi Incentive Scheme.
5.4. Personal pay will be granted to the concerned employee with effect from any one of the
following dates of his choice:-
5.4.1. The first day of the month following the month in which results of the examinations
are announced; or
5.4.2. The date of annual increment which falls due after the announcement of the results
of the examination.
5.5. 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.
5.6. 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.
5.7. The concerned employee 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.
5.8. 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.
5.9. Personal pay granted for passing the examination indicated in para 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.

6.0. Eligibility for Grant of Personal Pay

All employees of FSNL, as described in para-3 of the scheme shall become eligible for
grant of personal pay, except as provided herein below:
6.1. On passing the prescribed Hindi Examination
6.1.1. 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 recognised Private

5.3.3
 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.
6.2. On passing the Hindi Typewriting examination
6.2.1. An employee will not be eligible, if
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 typing work in Office);
c) before joining the employ 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 recognised by the Government and has passed a test in Hindi
typewriting therefor.
6.3. On passing the Hindi Stenography Examination
6.3.1. An employee will not be eligible if
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 are not required to do English Stenography workin
office);
c) before joining the company, he/she had declared that he/she had a
speed of 80 w.p.m. in Hindi Stenography.
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.
6.4.1. Employees getting training through the arrangements made by FSNL shall be
deemed to have passed the examinations as private candidates.

5.3.4
7.0. Grant of Lump-sum Award on Passing the Hindi, Hindi
Stenography and Hindi Typewriting Examination.
7.1. Lump-sum awards will be granted to the employees passing the following Hindi, Hindi
Stenography and Hindi Typewriting examinations as indicated below:

EXAMINATION AWARD

i) Prabodh examination of Rs.500.00 (Rupees Five

the Hindi Teaching Scheme. hundred only)

ii) Praveen examination of the Rs.500.00 (Rupees Five

Hindi Teaching Scheme. hundred only)

iii) Pragya examination of the Rs.600.00 (Rupees Six

Hindi Teaching Scheme. hundred only)

iv) Hindi Typewriting exam of Rs.400.00 (Rupees Four

the Hindi Teaching Scheme. hundred only)

v) Hindi Stenography exam of Rs.750.00 (Rupees Seven

the Hindi Teaching Scheme. hundred fifty only)

vi) Such Hindi examinations Rs.600.00 (Rupees Six

conducted by Voluntary hundred only)
Hindi Organisations as
have been recognised 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 exam of Rs.600.00 (Rupees Six

the Central Hindi Directorate. hundred only).

7.2. The grant of Lump-sum award will be subject to the eligibility conditions for the grant of
personal pay laid down in para 6.0 of the Hindi Incentive Scheme as also the eligibility
conditions specified herein below:
7.2.1. 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

5.3.5
 Govt.Agency or a Private Body with Hindi as a subject (in any form) or through
Hindi medium.
7.2.2. 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.
7.2.3. For grant of Lump-sum award, the employees will have to pass the Hindi, Hindi
Typing or Hindi Stenography examination within a perioid of 15 months from
the date of their first appearance at the said examination.

8.0. Grant of Cash Awards on Passing Hindi, Hindi Stenography and

Hindi Typewriting Examinations
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
- With 70% or more marks : Rs.450.00
- With 60% or more marks : Rs.300.00
- With 55% or more marks : Rs.150.00

b) For passing Prabodh

- With 70% or more marks : Rs.300.00
- With 60% or more marks : Rs.150.00
- With 55% or more marks : Rs. 75.00

c) For passing Hindi Typing & Hindi Stenography

% of marks
Typing Shorthand
97% or more 95% or more : Rs.600.00

95% or more 92% or more : Rs.400.00

but less than 97% but less than 95%

90% or more 88% or more : Rs.200.00

but less than 95% but less than 92%

5.3.6
9.0. Grant of Incentive Allowance to Stenographers and Typists for
doing their official work in Hindi in addition to English.
9.1. Special allowance of Rs.60/- and Rs.40/- per month will be given to Stenographers and
typists respectively who know English Shorthand/Typing and are actually doing their
official work in Hindi in addition to English. Only those English Stenographers/Typists
would be entitled for this allowance who type on an average 5 notes/drafts/letters in Hindi
in a day or about 300 notes/drafts in Hindi in a quarter. The drafts/notes containing only
one or two lines will not be included in it. This special allowance will not be considered as
pay and dearness allowance, house rent allowance, city compensatory allowance as well
as other allowances, will not be admissible on this amount.
9.2. Employees who claim Special Allowance 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.
9.3. The employees will be granted Special allowance 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 9.1 above.
9.4. The Special allowance will be granted w.e.f.the first day of the month in which the
employee starts working in Hindi and achieves the specified target.
9.5. The employee will continue to get the Special Allowance so long as he/she continues to
work in Hindi subject to his/her continually achieving the specified target.

10.0 Clarifications
10.1 Employees who pass an examination higher than Pragya will not be granted Lump-sum
awards therefor.
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 the scheme.
10.3 Employees not having working knowledge of Hindi and preparing for the recognised
examinations of the Voluntary Hindi Organisations or the Parichaya examination of the
Central Hindi Directorate will also be given the facility of free text books.
10.4 Employees preparing privately for the examinations will be entitled to the Lump-sum
award on passing the examination.
10.5 Admissible conveyance charges and the fees paid by them to the institutions will be
reimbursable.
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.
10.7 English Stenographers/typists posted to Hindi Cell will be eligible for the incentive on
passing the Hindi stenography/typing examination as provided for in the scheme.
10.8 Employees posted to Hindi Cell will not be eligible for grant of incentives for doing their
office work in Hindi.

5.3.7
10.9 Pragya shall be the 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 recognised equivalent Hindi Examination.
10.10 The benefit of personal pay for passing the Hindi/Hindi Stenography/Hindi Typewriting
examination, will cease when the benefit of Special Allowance under the incentive
allowance sheme as provided in the para 9 of the Hindi Incentive Scheme is granted.
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
special allowance under para 9 is granted and will cease after the lapse of a period of 12
months from the date from which the peronal pay under para 5.2 of the scheme is
granted.

11.0 Annual awards for Hindi Noting/Drafting and Hindi typing

11.1. Employees expected to do typing and noting/drafting in official work will be eligible to
participate in this competition.
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.
11.3. Employees who write or type 10000 (Ten thousand words) in a year (Ist 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.
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 Noting/Drafting For Hindi Typing

I. First prize Rs.500.00 Rs.500.00 each

each (2 prizes)

II. Second prize Rs.300.00 Rs.300.00 each

each (3 prizes)

III. Third prize Rs.150.00 Rs.150.00 each

each (5 prizes)

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 weeks record will be verified by the
Controlling Officer.

5.3.8
11.6. At the end of the year every 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.
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 11.3 and
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 first/second fortnight of the
month of___________.

Sl. Date Total No. Quantum of No.of Signature

No. of files Note/draft words of controlling
dealt written in Officer
Hindi (Once in a
week)

12.0 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.

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 posses proficiency in Hindi.

5.3.9
 Annexure-I
Proforma for consideration for the grant of Personal Pay/Lumpsum 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-executive

b) Whether declared Operational

3. Full address of the Office

4. Name of the Directorate/Section

5. Date of Birth

6. Mother Tongue

7. a) Is training in Hindi Typewriting or Hindi

Stenography obligatory for you?

(Note : Training in Hindi typewriting is

obligatory for all Assistant (s)/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).

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 Exam

d) Marks obtained

e) Percentage of the marks obtained.

5.3.10
9. a) How did you pass the above exam.

i) by private study

ii) by attending classes under Hindi

Teaching Scheme

iii) by attending the training classes

conducted by SAIL on being
sponsored by FSNL.

b) Indicate the period when you received

training of the said course in the classes
conducted by:

i) Hindi Teaching Scheme of the

Central Govt., or

ii) SAIL, on being sponsored by FSNL.

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 exam 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 exam conducted by
a Board/University etc.with Hindi as a
subject in any form or part of Higher
Secondary exam, viz., X? If yes, please
give details and indicate %age of marks
obtained in Hindi subject.

ii) Was Hindi a medium of any of the above

examinations?

5.3.11
 iii) Whether passed the Middle or Primary
standard exam with Hindi as a subject or
with Hindi as a medium of examination.

iv) If you have passed any other Hindi exam

conducted by a Govt.Agency or by a
Private body, please give details?

13. a) Whether you had stated before joining

the employment of FSNL 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 FSNL you had

received training in Hindi Typewriting or
Hindi Stenography from an institution
recognised by the Govt.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).

5.3.12
 ANNEXURE - II

DECLARATION FORM

Form for the grant of Hindi Incentive Allowance as Special Allowance to Stenographers
and Typists (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.

________________________ ___________________
(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 Personal Pay, 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 by making an inaccurate statement of facts.

Signature______________

5.3.13
 LONG SERVICE AWARD

1. OBJECTIVE
To recognise the long service rendered by employees and give them suitable gifts as a
token of appreciation of their services.

2. SCOPE
The Scheme shall be applicable to all regular employees of the company.

3. DEFINITION
a) Company means the Ferro Scrap Nigam Limited
b) Continous Service means uninterrupted service under the company and includes
service which is interrupted by authorised leave and cessation of work not due to
the employees fault.

4. ELIGIBILITY
a) An employee who completes 25 years of service in the Company will be eligible for
the award under this scheme.
b) The award will be further subject to the condition that the service record of the
employee is satisfactory to be so certified by the concerned Head of the Deptt.
c) The service rendered in erstwhile Heckett would also count for reckoning 25 years
of continous service provided such service is continous without break. 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.
d) Periods of deputation of employees to other organsations are recognised for the
purpose of the award.
e) In the case of Graduate Engineers/Management Trainees the period of training will
also be taken into account as service for the purpose of the award.

5. THE AWARD
a) The award would be a wrist watch, the cost of which should not exceed Rs. 800/-.
b) The award will be presented every year to the eligible employees on 1st August
which is the actual date of take over of Heckett by FSNL, on a special function to
be organised for the purpose at the unit level. Employees who complete 25 years of
service on or before 31st July of the same year will be considered for the award.
c) The name of the employee, the nature of the award as well as the emblem of FSNL,
if any, will be suitably inscribed on the watch.
d) The employees will also be presented a scroll on the occasion suitably commending
their long service to the organisation.
e) After the presentation of awards, high tea will be hosted by the company to the
award winners and there will also be a group photograph.
f) One copy of the photograph, properly mounted will be given to each of the award
winners.

5.4.1
 MONTHLY INCENTIVE SCHEME

1. PRODUCTION
Production tonnage means total tonnage of all categories of scrap processed and
despatched from dumps and current arisings during a particular month.

2. TARGET
As decided between the Management and the Union from time to time.

3. Calculation of Incentive Bonus will be made on scales of pay, as applicable from

01.09.1982, as detailed below provided an employee does not absent from duty for more
than 4 days in a month on any account except weekly off/holidays:

N-1 Rs.550-11-704/-
N-2 Rs.565-13-656-15-761/-
N-3 Rs.585-16-697-18-823/-
N-4 Rs.610-20-750-22-904/-
N-5 Rs.645-26-827-28-1023/-
N-6 Rs.690-32-914-34-1152/-
N-7 Rs.750-38-1016-41-1303/-
N-8 Rs.810-44-1118-48-1454/-
N-9 / N-10 Rs.910-51-1267-55-1597/-

4. In case an employee absents from duty for more than 4 days in a month on any account
except weekly off/holidays, he will be paid incentive at 73% of the eligible Basic Pay for
incentive payable on the scales of 01.09.1982 of his grade and post.
5. The ministerial staff will be paid incentive bonus @36% on existing working hours on the
pay scales and percentage as stipulated under clause (3) and (4) above.
6. Incentive shall be paid for actual attendance and in addition for weekly offs and
prescribed holidays which will include National Holidays, Closed Holidays & 6 Optional
Holidays for the employees of Works Department and 18 Closed Holidays & 3 Optional
Holidays for the Ministerial Staff and Executives who are exclusively required to supervise
the work of the Ministerial Staff, as circulated by Corporate management in the beginning
of every calendar year.
In addition, Compensatory Off which may be granted in lieu of working on National
Holidays, Weekly Offs & Closed Holidays, will also be taken into account for calculation &
payment of Monthly Production Incentive.

5.5.1
 In the event of an employee taking leave of any kind in a month, incentive payable under
clause (3) and (4) above, as the case may be, shall be reduced on pro-rata basis, if
necessary, on reduced basic pay as at (4) above.
7. Cut off points, maximum earning points and the quantum of bonus payable uniformally
shall be as under:

% of Capacity Production Bonus %age

Cut off point 60% of capacity 10 %

of the production.

Cut off point 100% of capacity 50 %

of the production.

Cut off point on higher earning 80 %

point upto and including 130% of
capacity production.

8. The incentive bonus eligibility of various groups of employees shall be as under:

Coverage Incentive eligibility

a. All Operation & Maintenance 100 %

workmen including Stores and Security.

b. Office Staff in section like 36 %

Purchase, Finance, Personnel.

REWARD FOR HAULAGE OF SLAG & CAPACITY UTILIZATION

TARGET : As decided between the management and union from time to time.
AMOUNT : Rs.7/- for every 1% increase over the target to every eligible employee.

PAYMENT OF INCENTIVE TO EXECUTIVES

1. Calculation of Incentive Bonus for Executives in the scales of E-0, E-1, E-2 and E-3 will be
made on scales of pay as detailed below provided an executive does not absent from duty
for more than 4 days in a month on any account except weekly off / holidays.

E-0 Rs.1000-55-1715/-

E-1 Rs.1150-60-1870/-
E-2 Rs.1500-70-2340/-

E-3 Rs.1700-80-2660/-

5.5.2
2. In case any executive absents for more than 4 days in a month, he will be paid 73 % of
the incentive amount calculated as per this scheme.
3. The coverage for incentive eligibility of Executives in E-0, E-1, E-2 & E-3 as follows:

a) Works Department 80% of the incentive eligibility

of Non-executives of Works Deptt.

b) Non-Works Deptt. 80% of the incentive eligibility of

Non-Executives of Non-Works
Department (Ministerial staff)

4) Incentive shall be paid for actual attendance and in addition for weekly offs and
prescribed holidays, which will include National Holidays, Closed Holidays & 6 Optional
Holidays for the executives of Works Department and 18 Closed Holidays & 3 Optional
Holidays for the Executives who are exclusively required to supervise the work of the
Ministerial Staff, as circulated by Corporate management in the beginning of every
calendar year.
In the event of an executive taking leave of any kind in a month, incentive payable under
clause (1) and (2) above, as the case may be, shall be reduced on pro-rata basis.

5.5.3
 MANAGERIAL REWARD SCHEME
Monthly Production Incentive Scheme to Officers above Manager Level

1. COVERAGE
All Officers in E-4 to E-8 level including Managing Director.

2. REWARD ELIGIBILITY
a) For those clearly falling under the Works Incentive areas i.e. Unit Heads and Officers in
the Operation & Maintenance Departments at Unit - 100 %.
b) For those clearly not falling under the Works Incentive areas i.e. for Officers working in
Management services like Corporate Office - 18 %.

3. TOTAL REWARD AMOUNT FOR TARGET FULFILLMENT

Rs.500/- per month for the 100% eligibility group and Rs.90/- for 18% eligibility group
subject to provisions of clause 4(iv) and 5 below/

4. PERFORMANCE CRITERIA
4(i) Monthly Production Target will be fixed by the management at the beginning of every
Financial year for the purpose of calculating the reward under the scheme.
4(ii) QUALITY TARGET
The quality of open Hearth Grade Scrap should be above 80% of Fe content.
4(iii) Monthly Product Mix Targets
The quantum of Monthly Product Mix target will be fixed by the management at the
beginning of every Financial year.
4(iv) REWARD AMOUNT
( a )* ( b) **
TOTAL REWARD (100 %) Rs.500/- (18 %) Rs.90/-
Fulfilment of Reward Amount Reward Amount

100 % Production 60 % 300 60 % 54

100 % Quality 20 % 100 20 % 18

95 % Quality 15 % 75 15 % 13.50

90 % Quality 10 % 50 10 % 9

100 % Product mix 20 % 100 20 % 18

95 % Product mix 15 % 75 15 % 13.50

90 % Product mix 10 % 50 10 % 9

5.6.1
 * a) For those falling under works incentive areas i.e. Unit Heads and Officers in the
Operation & Maintenance Departments in the scale of E-4 to E-8.
**b) For Officers in the scale of E-4 to E-8 working in Management service like Corporate
Office.
4(v) Product mix achievement level will be fixed by the management every year in the month
of March so that the same are applicable with the beginning of each Financial year.

5. PAYMENT FOR OVER FULFILMENT

For the 100 % eligibility group incentive amount of Rs.500/- will be proportionately
increased upto the percentage achievement of production at 130 % of the Target. Other
eligibility groups would be entitled to amounts proportionate to their eligibility.
Any increased achievement in production over and above 130 % will be rewarded to all
eligible employees under this scheme at the rates stipulated in the reward scheme already
in vogue for employees covered by Production Incentive Scheme.

6. SETTLEMENT PERIOD
The settlement period will be monthly. However, for production targets there will be a
provision for make-up reward. For this purpose, apart from evaluation of performance on
a monthly basis, cumulative performance will also be evaluated against cumulative
production targets at the end of 12 months from the start of the financial year. The
positive difference, if any, between payments computed and payments already made
including reward above 130 % achievement will be paid to the executives as make-up
reward.

7. ATTENDANCE FACTOR
No reward will be paid to an executive who is absent / on leave of any category for more
than 3 days in a month excluding off/holidays.

8. Management reserves the right to add, amend, delete or to withdraw the

scheme without assigning any reasons at its discretion.

5.6.2
 SUGGESTION SCHEME

1. AIMS AND OBJECT

(A) To encourage and support constructive and innovative thinking in any phase of the
Companies operation within the sphere of the employees work or outside of it.
(B) To develop and foster closer relationship between the workers and management.

2. ELIGIBILITY FOR OFFERING SUGGESTION

The Scheme will apply to all employees below the managerial level except those
employees who are in a privileged position of having at their disposal information
obtained from special investigations or research, or those who have been assigned to carry
out or assist on work connected with special problems or projects by the Company.

3. EMPLOYEES MAY OFFER SUGGESTION IN MATTERS WHICH

ARE WITHIN THE JURISDICTION OF THE COMPANY AND MAY
RESULT IN ANY OF THE FOLLOWING BENEFITS :
a) Increased production, higher productivity, improved methods or designs.
b) Improvement in machinery, equipment, tools and tackles layouts, process, practices and
procedures.
c) Reduction in cost, prevention of wastages.
d) Reduction in frequency of idle time, repair, maintenance of equipment and machinery.
e) Improvement in working conditions, removal of health and accident hazards.
f) Good housekeeping, office procedures and other spheres activities.

4. UNACCEPTABILITY OF SUGGESTIONS
Matters within the sphere of labour relations, payment of wages, allowance, hour of work,
recruitment, discharge, leave, duty hours, facilities, grievances etc., will not be accepted by
the committee, who also have the right to reject any suggestion if it feels is not in tune with
the spirit of the scheme.

5. PROCEDURE FOR MAKING SUGGESTIONS

a) Interested employees should write their suggestions on a white sheet of paper with
sketches, when necessary, stating the advantages claimed by the suggestion.
b) The suggestion should be dropped in any one of the suggestion boxes provided in the
various sections of the works and offices.

5.7.1
c) One responsible person who has to be nominated will clear each box once ina month,
forward all suggestions to the suggestion box committee (attn. Chairman) unopened
stating in his register the number of suggestions forwarded.

6. HOW SUGGESTIONS WILL BE PROCESSED

The suggestions would be processed by the following committees :-

A. UNIT LEVEL SUGGESTION COMMITTEE

1. Unit Head Chairman

2. An Executive from Operation Deptt. Member

3. An Executive from Maint.(Mech.) Member

4. An Executive from Maint.(Elect.) Member

5. An Executive from M.M. Deptt Member

6. Unit P&A Head Co-ordinator

The members at Sl.No.2 to 5 will be nominated by the Unit head.

B. HIGHER LEVEL SUGGESTION COMMITTEE

1. General Manager(M&M) - Chairman : For suggestions
relating to Maint. &
Matls Deptt.
2. General Manager(O&P) - Chairman : For Suggestions
relating to Oprn.
& P.E.D.

3. Dy.General Manager(F&A) - Member

4. Manager(P&A) - Coordinator

7. PROCEDURE
7.1. The suggestions received at Unit Level, will be circulated amongst the members of the
committee, by the Unit P&A Head as Co-ordinator and a meeting of the committee will be
arranged within a period of 5 days from the last date of receipt of the suggestion, i.e., 5th
of every month.
7.2. The Committee will examine the suggestions and give its recommendations in Annexure-I,
and send the same to the Higher Level Suggestion Committee at Corporate Office for
further evaluation & assessment of the suggestions.

5.7.2
7.3. The Chairman of the Unit Level Suggestion Committee will send the evaluation report to
DGM(P&A), within a period of 5 days from the date of conclusion of the meeting, i.e.,
latest by 10th of the month.
7.4. On receipt of the recommendations from the Unit Level Suggestion Committee, a meeting
of the Higher Level Suggestion Committee will be arranged by Manager (P&A) as Co-
ordinator of the Committee, under the Chairmanship of the concerned General Manager
whose department the suggestion relates to, for further evaluation and assessment of the
suggestion.
7.5. The suggestions being found worthy by the Higher Level Suggestion Committee, the
concerned General Manager, being the Chairman, may at his discretion, visit the unit from
where the suggestion was received, for evaluation and assessment of the suggestion in
detail, for which he may call for a representative of the concerned discipline, to which the
suggestion relates, from another Unit of the Company, to ensure an impartial evaluation
and assessment.
7.6. The suggestions received from the employees of Corporate Office will be processed and
evaluated by the Higher Level Suggestion Committee.

8. ASSESSMENT & RECOMMENDATIONS OF AWARD

8.1. On evaluation, if the suggestions are accepted prima-facie, the Higher Level Suggestion
Committee may decide and communicate the concerned Unit Head to give a token gift
worth Rs.50/- to each employee from whom the suggestion was received.
8.2 For recommendations of award, the Higher Level Suggestion Committee, while assessing /
evaluating the suggestions, will take into account the practicability, desirability, amount of
cost saving achieved, quantum of increased efficiency or productivity, amount of
ingenuity and the thought put in the suggestions etc., and will give its recommendations
stating the quantum of monetary benefit to be derived from implementation of the
suggestion and will recommend for a suitable award to be given to the suggestor as per
the Suggestion Scheme of the Company in vogue, and send its recommendations to
Corporate P&A Head for obtaining approval of the competent authority.

9. REWARD
a) After correct assessment of the saving effected by adoption of a suggestion, the Committee
may recommend a reward upto a maximum of Rs.500/- provided of course that the
benefit and savings are of a lasting nature to the Company or for very many years.
b) If however, the suggestion results in the saving of lumpsum only, then maximum reward
will be Rs.250/- only, depending of course on the lumpsum saving effected.
c) Where direct savings cannot be estimated, the Committee will at its discretion evaluate the
reward, taking into account the importance of the suggestion, originality, facilities accrued
and extent of application.
d) The minimum reward for any accepted suggestion will be Rs.50/-.

5.7.3
 PAYMENT OF ADVANCE UNDER

ADDITIONAL RESOURCES GENERATION SCHEME

1.0 TITLE
This Scheme is called "Incentive Scheme for Additional Resource Generation."

2.0 APPLICABILITY
a) The scheme covers all employees, including Executives, who are not eligible for payment
of Annual Bonus under the production-cum-productivity linked bonus scheme / payment
of Bonus Act.
b) The employees covered by the Production-cum-productivity linked Bonus Scheme for a
part of the year, are eligible for payment under this scheme for proportionate period,
subject to the total incentive under this scheme and the bonus, together not exceeding Rs.
6,000/=.
c) Employees joining service during a financial year and coming under the scheme are also
eligible for proportionate payment of incentive under this scheme.

3.0 DEFINITIONS
a) "Employees" means any person (excluding Apprentices / Trainees engaged under the
Apprenticeship Act or any other schemes) drawing salary / wages against regular posts in
the company.
b) "Financial Year" means the period of 12 months commencing from 1st April to 31st
March.
c) "Salary / Wages" means : - Salary / Wages as defined in the Payment of Bonus Act - 1965.
d) Attendence means actual attendence and all paid leave for which Salary / Wages are
admissible.
e) MOU Rating - means the performance rating as per Memorandum of Understanding
Scheme of Govt. of India.

4.0 ELIGIBILITY FOR INCENTIVE

4.1 The incentive under this scheme is paid only when the targetted production, as per terms
of the Agreement signed to this effect, is achieved.
4.2 The maximum incentive under this scheme does not exceed in the aggregate a sum
equivalent to 20% of the additional resources generated, subject to a maximum of Rs.
6,000/= per individual employee covered under the scheme.

5.8.1
4.3 The additional resources generated is reckoned with reference to the Revenue Budget of
the company as approved by the Board of Directors, both in respect of income as well as
expenditure.
4.4 The payment of incentive / advance does not confer any right of the employee, but it is in
the nature of reward for good performance.

5.0 QUANTUM OF INCENTIVE

The amount under this scheme is paid to the concerned employees in the form of an
Advance for generating additional resources in the following year. For this purpose, an
Agreement is signed by & between the management & its recognised unions in the Joint
forum Committee's meeting, fixing thereby the production targets for the following year,
and the amount of advance to be paid under the scheme.

6.0 REGULARISATION OF THE ADVANCE

The advance paid under this scheme is regularised if the additional resources as per the
Agreement are generated by the end of the financial year, failing which the amount of
advance or so much of the advance as was not supported by the additional generation of
resources, is recovered from the employees.

7.0 RIGHTS OF THE MANAGEMENT

The management reserves the right to modify, extend or curtain or terminate the
operation of this scheme at any time.

5.8.2
 MOTIVATIONAL SCHEME
(1) Merit Certificate or Scroll will be given to employeesfor displaying extra ordinary skill/high
sense of devotion to duty in the interest of the organisation/undertaking responsibility/
assignment not falling within ones purview.
(2) Photo Display/Publicity, Special Invitee & Special Training.
For innovativeness / outstanding efforts which result in substantial gain / avoidance of loss
/ procurement of substantial business, the photos of the distinguished performers will be
prominently displayed in the Notice Board for giving wide publicity. They will be specially
invited on such occasions as Independence Day / Republic Day and introduced to
Managing Director. For further motivation they will be sent for participation in special
course / seminars an part of overall career development scheme.
In assessing the performance, the following criteria will be kept in view :
a) Consistently, good performance, promptness in disposal of work, quantitative /
qualitative performance, proper maintenance of official records, willingness to do
additional work, handling difficult assignment situations.
b) Punctuality, discipline, relationship with colleagues.
c) Integrity, handling of confidential / sensitive matters, straight forwardness, fairness in
dealings with public prompt and proper processing of cases involving payments to
suppliers or matters concerning entrepreneurs.
d) Timely execution of job orders, avoiding wastage of scarce raw materials, effecting
economy in purchases, proper inventory control, enforcing safety measures and
exercising quality control.
e) Processing of matters leading to reduction in avoidable expenditure, avoiding
payment of overtime, contribution towards extra profitability, avoidance of payment
of demurrage charges.
f) Holding negotiations with contractors / suppliers and securing reduction in cost /
safeguarding interest of the organisation.
g) Processing cases of defaulting hierers / resulting in substantial recoveries, negotiating
settlement of legal cases, avoiding loss in disposal of seized / surrendered measures,
timely execution of export orders, detecting ommissions / errors thus avoiding loss /
legal complications.
h) Corrective and innovative suggestions / work contributing write-ups highlighting
performance of the organisation and projecting its image to the society.
i) attendance / cleanliness
j) safety measures taken
k) productivity / production / quality.
l) preventive maintenance and minimum breakdown
m) acts of bravery in protecting stocks / property of the enterprise etc.

5.9.1
 n) effectively fighting tax burden of the company or obtaining exemption in tax having
a substantial or a recurring saving to a Company.

IMPLEMENTATION
(1) A Committee at unit level is constituted consisting of following Officers in order to evaluate
the cases for above schemes:
(a) Unit Head
(b) Head of F&A Department
(c) Head of P&A Department - He will act as convener of the meeting
The Committee will convene its meetings as often as required under the given
circumstances.
The Committee will send its report to Corporate Office recommending the names of
employees which they deem fit under above scheme giving the full justifications.
(2) The recommendations submitted by above committee will be examined at Corporate
Office by High level Committee consisting of following officers:-
(a) General Manager(O&P)
(b) General Manager(M&M)
(c) Dy.General Manager(F&A)
(d) Dy.General Manager(P&A) - He will act as convener of the meeting.
This Committee meeting shall be convened once in a quarter and will examine all
proposals submitted to it.
Apart from giving recommendation on the proposals submitted by the plant level
committee, the above committee will also give recommendations in respect of employees
of Corporate Office for above schemes. They will recommend such cases which give the
Company substantial benefit by way of saving of expenditure or increase in revenue or
obtain recurring advantage to the Company.
After examining all recommendations, the committee will obtain approval of Managing
Director for the decision, for awarding following Puraskars :-
1. Ferro Scrap Platinum Puraskar Rs.500/-

2. Ferro Scrap Hirak Puraskar Rs.400/-

3. Ferro Scrap Swarn Puraskar Rs.300/-

4. Ferro Scrap Rajat Puraskar Rs.200/-

5. Ferro Scrap Yogyata Puraskar Merit Certificate

5.9.2
 6.0

LEAVE RULES / LTC /

LLTC RULES
 Leave Rules applicable to F.S.N.L. Executives
Procedure for applying/sanctioning of leave

1. DEFINITIONS
a) Executive includes Graduate Engineer and Executive Trainees but excludes (i)
Deputationists governed by separate rules (ii) Casual, Part-time, temporary executive
and(iii) those who are governed by separate rules by contract of service.
b) Completed year of service means continous period of service in the Company for a period
of one year including period spent on any kind of leave.
c) Authorised Medical Attendant means doctors of the Companys recognised Hospitals or
Registered Medical Practitioners as approved by the company.

1.1 CLAIM OF LEAVE

1.1.1 Leave can not be claimed as a matter of right. When exigencies of Companys interest so
require, the competent authority may, at his discretion, refuse the Leave applied for or
revoke leave already granted.
1.1.2 Leave shall not be granted to an Executive who is under suspension or whom the
competent authority has decided to dismiss or remove from service.

1.1.3 All leave shall be applied in the form as prescribed from time to time.

1.2 COMBINATION OF LEAVE

1.2.1 Any kind of leave except Casual Leave may be availed of in combination of any other
kind of leave under these rules.Grant of leave in continuation of Maternity Leave shall be
on medical ground.
1.2.2 Holidays occuring at either end of leave may be prefixed or suffixed with the leave, with
approval of the sanctioning authority. Holidays occuring during the leave shall not be
counted as leave.

1.3 RECALL FROM LEAVE

1.3.1 An executive may in the exigencies of Companys work, be recalled from leave with the
approval of the Controlling Officer. In case of such recall, the Executive shall be entitled
to:
a) Count as DUTY the period from the date he starts from the station where he is on
leave to the date of his resuming his duty, the above said period will be credited
back to his leave account.

6.1.1
1.4 ABSENCE FROM DUTY AND OVERSTAYAL OF LEAVE
1.4.1 Absence from duty without sanctioned leave is a misconduct.
1.4.2 Overstayal of leave means remaining absent from duty without prior permission beyond
the leave sanctioned. Overstayal of leave shall be dealt with in the same manner as
absence from duty.

1.5 APPLICATION FOR LEAVE

1.5.1 Application for leave (including Casual leave) should be submitted sufficiently in advance.
1.5.2 If an Executive, while at Headquarters, suddenly falls sick, then he shall inform the
Santioning Authority immediately regarding his illness followed by a leave application
together with the unfit certificate issued by the authorised Medical Attendant and at the
time of joining his duty,must produce the fit certificate from the authorised Medical
Attendant concerned.
1.5.3 An Executive may leave the Headquarters only -
a) If the leave has been duly sanctioned by the competent authority.
b) If the station-leaving permission has been granted by the competent authority.
c) Before leaving the Headquarters, an Executive is required to leave his LEAVE
ADDRESS with the Sanctioning Authority.
1.5.4 If an executive who has already proceeded on leave outside his Headquarters suddenly
falls ill resulting in overstayal of leave, he shall immediately apply together with the unfit
certificate from an authorised Medical Attendant to the Sanctioning Authority and at the
time of resuming his duties, must produce fit certificate issued by the authorised medical
attendant.

1.6 CASUAL LEAVE

1.6.1 An Executive shall be eligible for 15 days leave in a calendar year. The sanctioning
authority is empowered to refuse or revoke Casual Leave at any time due to exigencies of
companys work.
1.6.2 Holidays (including restricted holidays) occuring at either end of the period of Casual
Leave may be prefixed or suffixed. Holidays occuring during the period of casual leave
shall not be counted as Casual leave.
1.6.3 Executives joining the service of the company after the first day of January shall be eligible
for proportionate number of days of Casual Leave for the remaining part of the calendar
year. While calculating proportionate number of days of Casual Leave, the fraction (if
any) will be rounded off to the nearest whole number.
1.6.4 At one spell, not more than 10 days Casual Leave shall be granted at the discretion of the
sanctioning authority.
1.6.5 Unavailed Casual Leave in any year can not be carried forward to the succeeding year.

6.1.2
1.7 EARNED LEAVE
1.7.1 An executive who is in the permanent employment of the company shall be entitled for 30
days of Earned Leave for every completed year of service or 2-1/2 days for every
completed month of service.
Employees who put in 6 months or more than 6 months of qualifying service in the
calendar year of superannuation, are given credit for E.L., as if they worked for the whole
calendar year and the employees who put in less than 6 months of qualifying service, get
credit of EL on pro-rata basis.
1.7.2 An executive can accumulate his Earned Leave upto 240 days.
1.7.3 The maximum Earned Leave that can be granted at a time to an Executive shall be 120
days. However, if the leave is applied for on medical ground (supported by a medical
certificate issued by an authorised medical attendant), Earned Leave upto 240 days may
be granted at a time.
NOTE
It is always desirable on the part of the executive to plan for availing his Earned Leave
well in advance and accordingly submit his Leave Programme to the Sanctioning
Authority at the beginning of the year so that the latter can decide about the granting of
leave or otherwise after taking into consideration the cases of all executives working under
him. Such prior intimation, however, does not mean that leave so applied for will
automatically be granted by the sanctioning authority. Unless the sanctioning authority
has granted the leave, it should not be construed that leave has been granted and the
Executive concerned can not avail leave in anticipation of approval.

1.8 HALF PAY LEAVE

1.8.1 An executive shall be entitled to Half-pay leave @ 20 days for each completed year of
service. Employees who put in 6 month or more than 6 months of qualifying service in the
calendar year of superannuation, are given credit for HPL, as if they worked for the whole
calendar year and the employees who put in less than 6 months of qualifying service, get
credit of HPL on pro-rata basis.
1.8.2 The Half pay leave may be granted either on medical ground (duly supported by a
medical certificate issued by a Registered Medical practitioner) or on private affairs.
1.8.3 Half-pay leave can be accumulated without any limit.

1.9 COMMUTED LEAVE

1.9.1 An Executive shall be entitled to commute leave not exceeding half the amount of Half-
pay leave due on medical ground only (duly supported by medical certificate issued by a
Registered Medical Practitioner).

6.1.3
1.10 CLOSED HOLIDAY/NATIONAL HOLIDAY
1.10.1 Republic Day, Independence Day and Mahatma Gandhi Jayanti shall be the national
Holidays and May Day and Co.s Foundation Day (in lieu of 1st August) shall be the
closed holidays for Executives working in Works Deptt.
1.10.2 Executives working in Non-works Deptt including Corporate Office will observe 18 days
closed holidays including 17th Sept. which is in substitution of Co.s Foundation Day.
1.10.3 Over and above, the Executives however may be required to come to duty on these days
in the exigencies of work.

1.11 FESTIVAL HOLIDAY/OPTIONAL HOLIDAY

1.11.1 Executives in Works Deptt. may avail Three Optional Holidays in a year as per the list of
restricted holidays circulated to them. This leave may however lapse if not availed during
the year.
1.11.2 In addition, the Executives in Works Deptt shall also be entitled for addl. Three days
Optional Holidays which may be availed with prior approval of competent authority
during the calendar year at the option of employees which may be prefixed/suffixed with
CL/Regular Leave. This leave may however lapse if not availed during the year.
1.11.3 Executives working in Non-works Deptt including Corporate Office will be entitled to avail
any Three Optional Holidays at their discretion during the calendar year with prior
sanction of the competent authority. This leave may be prefixed/suffixed with CL/Regular
leave. This leave may however lapse if not availed during the year.

1.12 SPECIAL DISABILITY LEAVE

An Executive who is temporarily disabled by injury or illness caused in course of or as a
consequence of the due performance of his official duties, may be granted Special
Disability Leave, for a maximum period of 24 months subject to the period of such leave
to be certified by an authorised medical attendant.

1.13 SPECIAL CASUAL LEAVE

The Special Casual Leave may be granted to the executives for the day or days on which
an Executive is unable to attend duty in special circumstances (but not for purely personal
reasons as is the case with leave), for instance, due to civil disturbance, curfew or strike
(other than strikes connected with the Works/Project) and for sterilisation operation under
the Family Planning Scheme, subject to a maximum period of 30 days in a calendar year.

1.14 LEAVE SALARY

1.14.1 During Earned Leave, Commuted Leave, an Executive is entitled to leave salary
calculated on the basis of his last pay drawn which includes basic pay, dearness
allowance, personal pay, if any, but shall not include incentive bonus, acting/officiating
allowance and other allowance.

6.1.4
1.14.2 During Half Pay Leave, an Executive is entitled to leave salary equal to half the amount of
Earned Leave salary.
1.14.3 In case of employees 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 calculated in the pay for computation of leave
salary.

1.15 LEAVE SALARY ADVANCE

1.15.1 An Executive proceeding on leave may, as a concession, be granted an advance against
the leave salary subject to the following conditions:
a) No advance may be granted when the leave taken is less than 30 days/a month.
b) The amount of advance should be restricted to the net amount of the leave salary
for the first month (after deduction of I.Tax, P.F., House Rent, repayment of
advances etc.)
c) The advance should be adjusted in full in the leave salary bill in respect of the leave
availed of. Balance remaining for adjustment, if any, should be recovered from the
next leave salary bill.
d) The advance may be sanctioned by the executives Head of Deptt. or by an Officer
to whom the power may be delegated by the Head of Deptt.

1.16 EMPLOYMENT DURING LEAVE

1.16.1 An Executive who is on any kind of leave under these Rules can not take up service
elsewhere (either on payment or otherwise) during the leave period.

6.1.5
 LEAVE RULES FOR NON-EXECUTIVES WORKS DEPTT.
1.0 All leave is granted at the convenience of the management. Nothing can limit the free
discretion of the management to refuse, revoke or curtail leave subject to the exigencies of
the work.
All employees other than an Apprentice, Casual, Substitute or Badli shall be entitled to
leave as follows:-

A) EARNED LEAVE
Every worker who has worked for a period of 240 days or more during a calendar year
shall be allowed during the subsequent calendar year, leave with wages for a number of
days calculated at the rate of one day for every twenty days of work performed by him
during the previous calendar year.
In addition to the above leave earned by them, these employees will also be entitled for an
additional 8 days Earned Leave.
NOTE :
1) This leave may be accumulated upto 150 days.
2) Employees who put in 6 months or more than 6 months of qualifying service in the
calendar year of superannuation, will be given credit for Earned Leave, as if they
worked for the whole calendar year and the employees who put in less than 6
months of qualifying service, will get credit of Earned Leave on pro-rata basis.

B) CASUAL LEAVE
An employee shall be entitled to 8 days Casual Leave with pay in each calendar year
provided that the services of the employee can be spared without detriment to his duties.
Such leave can not be carried forward to the following year and shall lapse if not availed
during the year. Normally it shall be obligatory on the part of the employee to inform his
superior in time.
Casual Leave cannot be combined with any other kind of leave.

C) HALF-PAY LEAVE
Half-pay leave @ 20 days for each calendar year which may be granted either on medical
certificate or on private affairs provided that in the first year of service of an employee it
should be calculated proportionately according to the period of service put in by him. This
leave may be accumulated upto 300 days.
NOTE :
1. In the case of temporary employee, half-pay leave will not be granted unless the
sanctioning authority has reasons to believe that the employee will return to duty
after expiry of the leave.

6.2.1
 2. Employees who put in 6 months or more than 6 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 the employees who put in less than 6
months of qualifying service, will get credit of HPL on pro-rata basis.

D) COMMUTED LEAVE
Commuted leave not exceeding half the amount of half-pay leave due, only on
submission of a medical certificate may be granted subject to the following conditions:-
a) Twice the amount of such leave shall be debited against half-pay leave due, and
b) The sanctioning authority has reasons to believe that the employee will return to
duty on its expiry.

E) MATERNITY LEAVE
Maternity leave to the female employees shall be granted as per the provision of Maternity
Benefit Act, 1961.

F) EXTRA ORDINARY LEAVE

i) Extra ordianry leave may be granted for a period not exceeding three months in
special circumstances when no other leave is by rule admissible, or when other
leave is admissible but the employee concerned applied in writing for the grant of
extra-ordinary leave.
ii) In the case of an employee who has been in contiuous service for a period
exceeding one year and is under-going treatment for leprosy, cancer or tubreculosis
in a recognised sanatorium or institute or by a Companys recognised doctor in the
employ of the Govt. or a Civil Surgeon, extra ordinary leave not exceeding 12
months on any one occasion may be granted subject to the following conditions:-
a) That the post from which the employee proceeds on leave is likely to last till
his return to duty, and
b) The leave shall be granted on the production of a certificate from the
recognised Medical Officer-in-charge of the sanatorium or institute or
companys recognised doctor or in the employ of the Govt.or Civil Surgeon,
as the case may be, specifying the period for which leave is recommended.
iii) In the case of an employee who has been in continuous service for a period
exceeding one year and is undergoing treatment for a serious disease in the
companys recognised Hospitals as an Indoor patient and when no other leave is
due, extra-ordinary leave not exceeding 12 months on any one occasion may be
granted subject to the following conditions:-
a) That the post from which the employee proceeds on leave is likely to last till
his return to duty, and

6.2.2
 b) The leave shall be granted on the specific recommendations of the Medical
Officer of the companys recognised Hospital and production of a certificate
from him specifying the period for which leave is being recommended. The
leave shall be further subject to the patients continuing to have treatment in
the companys recognised hospital.

G) QUARANTINE LEAVE
Quarantine leave which may be granted to an employee who is necessiated by order not
to attend duty in consequence of the presence of any infectious disease in his family or
house-hold. Such leave is granted on the certificate of a Medical Officer or Public Health
Officer of Cos recognised Hosital or of the Government Medical Officer or Public Health
Officer of the local area concerned, for a period not exceeding 21 days or in exceptional
circumstances, 30 days.
NOTE :
a) Quarantine leave is not debited to the leave account.
b) Quarantine leave may, if necessary, be combined with other kinds of leave but the
total leave should not exceed the maximum limits prescribed in this clause.
c) Any leave necessary for quarantine purpose in excess of the prescribed limits is
treated as ordinary leave.
d) Quarantine leave is not admissible to an employee if he himself suffers from any
infectious diseases; he should be granted leave admissible under clause (A) to (D).
e) Cholera, small-pox, plague, diptheria, typhus-fever and cerebro-spinal meningities
may be considered as infectious disease for the purpose of this clause. Any other
disease as may have been declared by the State Government concerned as an
infectious disease for the purpose of their quarantine leave rules,may also be
considered as infectious disease for the purpose of this clause. In the case of
chicken-pox quarantine leave should not be sanctioned unless the Health Officer
responsible considers that because of doubts as to the true nature of the disease,
e.g. small-pox, there is reason for the grant of such leave.
f) The term Household used in this clause includes all individuals residing in the
same house, irrespective of whether or not they belong to the same family.

H) SPECIAL CASUAL LEAVE

Special Casual Leave may be granted to the employees for the day or days on which
employee is unable to attend duty in special circumstances (but not for purely personal
reasons as is the case with leave), for instance, due to civil disturbance, curefew or strike
(other than strikes connected with the Works/Project) and for sterilization operation under
the Family Planning Scheme, subject to a maximum period of 30 days in a Calendar year.

6.2.3
2.0. LEAVE SALARY
An employee shall be entitled to leave salary as follows:-
a) During Earned Leave at a rate equal to the daily wage average of his total full time
earnings for the day on which he worked during the month immediately proceeding
his leave, exclusive of any overtime and bonus but inclusive of dearness allowance.
b) During Half-pay leave at a rate equal to half the amount admissible under clause
(a).
c) During commuted leave of equal to twice the amount admissible under clause (b).
d) During Extra ordinary leave no leave salary.
e) During casual leave the rate of wages drawn by the employees on the day
imediately proceeding the day on which the leave commences.
f) During quarantine leave equal to the amount admissible under clause(a).
g) In case of employees 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 calculated in the pay for
computation of leave salary.

3.0. PUBLIC HOLIDAYS

i) Subject to the exigenceis of work, employees shall be granted holidays with wages
on Republic Day, Independence Day, Gandhi Jayanti and May Day/Labour Day.
Employees who can not be spared on these holidays will be granted a
compensatory holiday with wages on another day within a month or will be paid a
days wage in lieu thereof at the convenience of the management.
ii) The day observed as public holidays shall be pasted on the Notice Board.
iii) In addition, employees may avail any three Optional Holidays out of the list with the
prior sanction of the competent authority.
In addition, the employee shall also be entitled for additional Three days Optional
Holidays which may be availed with prior approval of the competent authority,
during the calendar year at the opption of employees which may be prefixed/
suffixed with CL/Regular Leave.

4.0. LEAVE TO APPRENTICES/TRAINEES

Apprentices/Trainees shall be entitled to leave as follows:-
a) Leave on full stipend upto 15 days in any year of Apprenticeship/Training.
b) Leave on half stipend on medical certificate upto 20 days in any year of
Apprenticeship/Training.
c) Casual Leave upto seven days in a calendar year on full stipend.

6.2.4
 NOTE :
If for any reasons it is proposed to terminate the Apprenticeship/Training of an apprentice/
trainee, any leave which may be granted to him should not exceed beyond the date on
which the period of Apprenticeship/Trainee as already sanctioned or extended expired or
any earlier date on which his apprenticeship/Training may be terminated.

5.0. LEAVE TO SUBSTITUTE AND CASUAL EMPLOYEES

Substitute/Badlis and casual employees shall be entitled to leave as per the provision of
the Factories Act.

6.0. APPLICATION FOR LEAVE

i) A workman who desires to obtain leave of absence shall apply in writing to the
sanctioning authority.
ii) Except in emergency, applications for leave for three days or less should be made at
least 24 hours before the time from which the leave is required.
iii) Application for leave more than three days should ordinarily be made atleast 5
working days before the date from which the leave is required.
iv) Application for leave under clause(ii)shall be disposed off on the same day.
Applications for leave under clause(iii) shall be disposed off within 3 working days.
v) The number of times in which earned leave can be taken during any year shall not
exceed four.
vi) Order granting or refusing leave shall be passed by the authority in writing. If leave
is sanctioned, the workman shall be given a leave pass, and in case leave is refused,
the reason for refusal shall be communicated to the workman in writing.
vii) All applications for leave must bear the leave address.
viii) A workman who desires to extend his leave shall make an application in writing to
the sanctioning authority before the expiry of the leave already sanctioned.
ix) Application for leave or extending of leave on medical grounds shall be supported
by a certificate from a Medical Officer or the Companys recognised hospital or
where there is no such officers, a Govt.Medical Officer, or failing him, from a
registered medical practitioner stating the period for which leave is recommended.
On receipt of such application the sanctioning authority shall immediately inform
the workman in writing whether the leave or extension of leave has been granted
and if so for what period. A workman who has been sanctioned leave or on
extension of leave on medical ground for a period exceeding fourteen days at a time
shall not be allowed to resume duty unless he produces a certificate of fitness from
the Govt.Medical Officer or Registered Medical Practitioner, who issued the sick
certificate, as the case may be. In case an employee suffers from infectious/
curtageious disease and he takes leave, he will be allowed to join duty only on
production of fitness certificate from companys recognised doctor irrespective of the
duration of leave.

6.2.5
x) The sanctioning Authority will have the discretion to refuse, curtail or revoke leave
at any time according to the exigencies of the companys work, giving reasons for
such refusal, curtailment or revokation of leave.
xi) If the workman remains absent beyond the period of leave orginally granted or
subsequently extended, he shall lose his lien on his appointment unless he(a) returns
within 8 days of the expiry of the leave and (b)explains to the satisfaction of the
employer (or the officer specified in this behalf by the employer) his inability to
return before the expiry of his leave. In case the workman loses his lien on his
appointment, he shall be entitled to be kept on the badli list.

6.2.6
 LEAVE RULES FOR NON-EXECUTIVES
MINISTERIAL STAFF

1.0 OBJECTIVE
To regulate the grant of various kinds of leave to the employees of the Company.

2.0 SCOPE
These rules shall apply to all Ministerial Staff including Management Trainees.

3.0 DEFINITIONS
In these rules, unless the context otherwise requires:
a) Company means Ferro Scrap Nigam Limited and the plant/Units/Offices under it.
b) Chairman means the Chairman of the Company.
c) Management means the local management of the Plant, Unit/Office.
d) Regular Leave means Earned Leave, Half-pay Leave, Commuted Leave, Extra
ordinary Leave and Leave-not-due.
e) Authorised Medical Officer means the medical officer recognised as such by the
Company.
f) Sanctioning Authority or Competent Authority means the authority to whom powers
have been delegated under the rules.

4.0 RIGHT TO LEAVE

4.1 Leave cannot be claimed as a matter of right.
4.2 When the exigencies of Companys service so require, leave of any kind may be refused
or revoked by the authority competent to grant it.
4.3 An employee who is under suspension, is not entiled to leave as specified in these rules.

5.0 COMBINATION AND COMMUTATION OF LEAVE

5.1 Any kind of leave under these rules except Casual Leave may be granted in combination
with or in continuation of any other kind of leave.
5.2 Special casual leave may be combined with casual leave. Where regular leave has been
granted in combination with special casual leave, casual leave shall not be granted in
combination with both special casual leave and regular leave.
5.3 Holidays (including restricted holidays) occuring at either end of the period of leave may
be prefixed or suffixed with the approval of the sanctioning authority. Holidays occuring
during the period of leave shall not be counted as leave.

6.3.1
 NOTE :
A compensatory leave granted in lieu of duty performed on a Sunday or closed holiday
for a full day may be treated as a holiday for the above purpose.

CLARIFICATION
1. Non-counting of intervening holidays as leave shall be applicable only in respect of
the following kinds of leave:
a) Earned Leave b) Half-pay Leave
c) Commuted Leave d) Extra-ordinary Leave
e) Leave-not-due f) Special Casual Leave
g) Study Leave h) Leave for prosecuting higher studes.

The intervening holidays shall, however, be counted as leave in case of Maternity Leave,
Special Diability Leave and Quarantine Leave.

2. Sundays/Weekly off days and optional holidays occuring during the period of leave
shall also not be counted as leave.However, the exclusion of optional holidays from
the period of leave shall be allowed only against specific request of the employee
concerned and the holiday/holidays so excluded shall be debited to his optional
holidays account.

CLARIFICATION
For the purpose of LTC an employee is required to take six days regular leave or casual
leave inclusive of weekly off and closed holidays.

5.4 The Commutation of one kind of sanctioned leave into leave of a different kind cannot be
claimed as a matter of right. The sanctioning authority may, at the request of the
employees and subject to consequential adjustment of leave salary, if any, commute
retrospectively the leave already granted, into leave of a different kind which was due and
admissible to him at the time of sanction of leave.

6.0 ACCEPTANCE OF EMPLOYMENT WHILE ON LEAVE

No employee shall take up any service or employment anywhere while he is on leave.

7.0 EARNED LEAVE

7.1 An employee shall be entitled to earned leave at the rate of 30 days for every completed
calendar year of service or 2-1/2 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 every 10 days of service subject to the limit of 2-1/2 days of earned leave for
the calendar month.

6.3.2
 NOTE :
1. For the purposes of this rule, service means continuous service in the Company
including the period spent on any kind of leave except extra ordinary leave
exceeding 3 months.
2. 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.
7.2 An employee cease to earn leave when the earned leave due exceeds 150 days.

8.0 HALF PAY LEAVE

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 and in the year of his
supeannuation from the service of the Company.
NOTE :
1. Completed calendar year of service means continuous service in the Company for
one calendar year including the period spent on any kind of leave.
2. 15 days and more may be treated as one month and a period of less than 15 days
may be ignored for this purpose.
8.1 This leave may be accumulated upto 300 days.

9.0 COMMUTED LEAVE

9.1 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 Companys interest.
9.2 When commuted leave is granted, twice the amount of such leave shall be debited against
the half-pay leave due.
9.3 Commuted leave may be granted at the request of the employee even when earned leave
is due to him.
9.4 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 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.

10.0 CASUAL LEAVE

10.1 An employee shall be entitled to 15 days Casual Leave in a calendar year.
10.2 Employees joining after the first day of January shall be entitled to proportionate number
of days of casual leave for the remaining part of the Calender Year. While calculating
proportinate number of days of Casual Leave, the fractions(if any) will be rounded off to
the nearest whole number.

6.3.3
10.3 In the case of transfer from one Unit/Office to another, the casual leave at the credit of the
employee will be carried over to the transferred unit/office.
10.4 Ordinarily not more than 10 days Casual Leave may be granted in one spell.
10.5 Casual Leave is required to be sanctioned by the Sanctioning/Competent Authority.
10.6 Casual Leave cannot be claimed as a matter of right. When the exigencies of Companys
service so require, Casual Leave may be refused or revoked by the Sanctioning/
Competent Authority.
10.7 Casual Leave cannot be combined with any kind of leave except Special Casual Leave.
Casual Leave cannot be combined with both Special Casual Leave and regular leave.
10.8 Holidays (including restricted holidays) occuring at either end of the period of Casual
Leave may be prefixed or suffixed. Holidays occuring during the period of Casual Leave
shall not be counted as Casual Leave.
NOTE :
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.

11.0 OPTIONAL HOLIDAY

Employees will be entitled to avail any 3 Optional holidays at their discretion during the
calendar year with prior sanction of the competent authority. This leave may be prefixed/
suffixed with CL/Regular leave.

12.0 EXTRA-ORDINARY LEAVE

12.1 Extra-ordinary leave may be granted to an employee when no other leave is admissible to
him or when leave is admissible but the employee applies for grant of extra-ordinary
leave.
12.2 No employeees shall be granted extra-ordinary leave for more than 3 months on one
occasion, except as in 12.3
12.3 Extra-ordinary leave for a period in excess of 3 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 specialised training under rule 17.

13.3 LEAVE NOT DUE

13.1 Leave not due may be granted to an employee at the discretion of the sanctioning
authority as advance of half-pay leave when there is no earned leave or half-pay leave at
his credit.
13.2 Leave not due shall be granted only if the sanctioning authority is satisfied that there is
reasonable prospect of the employee returning to duty on expiry of the leave.

6.3.4
13.3 Leave not due shall be limited, at any one time, to one-half of the amount of half-pay
leave the employee is likely to earn during the remaining period of his service or 30 days,
whichever is less.
13.4 Leave not due shall be debited against the half-pay leave the employee may earn
subsequently.
13.5 Where an employee who has been granted leave not due is permitted to resign from
service or to retire voluntarily without returning to duty, the leave not due shall be
cancelled and he shall be required to refund the leave salary paid towards leave not due.
13.6 An employee who, having availed himself of leave not due, returns to duty but resigns or
retiresfrom service before he has earned such leave, he shall be liable to refund the leave
salary to the extent the leave has not been earned.
13.7 Leave salary shall not be recovered if the retirement is by reason of ill-health
incapacitating the employee for further service or in the event of his death.
13.8 Leave not due shall not be granted to newly-appointed employees who are on probation/
training.
CLARIFICATION
1. Leave-not-due is to be granted as an advance of HPL and is debited against HPL
which the employee may earn subsequently. Leave -not-due sanctioned as an
advance of HPL cannot be treated as Commuted Leave on medical grounds.
2. Management Trainees will be entitled to leave not due during the probation
period on completion of 11/2 year training.

14.0 MATERNITY LEAVE

14.1 A female employee may be granted maternity leave for a period of 12 weeks from the
date of its commencement.
14.2 Maternity Leave may also be granted in case of miscarriage, including abortion, on
medical certificate for a period not exceeding 6 weeks.
NOTE :
Abortion covered under the Medical Termination of Pregnancy Act, 1971, may also be
considered a case of abortion for this purpose.
14.3 Maternity Leave shall not be debited against the leave account.
14.4 Maternity Leave shall not be combined with leave of any kind.

15.0 SPECIAL DISABILITY LEAVE

15.1 Special Disability Leave may be granted to an employee who is temporarily disabled on
account of personal injury caused by accident arising out of and in the course of his
employment on medical certificate.

6.3.5
15.2 An employee shall not be eligible for special disability leave unless the disability manifests
itself within 3 months of the occurrence to which it is attributed and the person disabled
acted with due promptitude in bringing it to notice.
15.3 The period of leave granted shall be such as is certified to be essential by the authorised
medical officer.
15.4 Special disability leave may be combined with leave of any other kind.

16.0 QUARANTINE LEAVE

16.1 Where, in consequence of the presence of an infectious disease in the family or house-
hold of an employee at his place of duty, residence or sojourn, his attendance at the place
of his duty is considered hazardous to the health of other employees, such employee may
be granted quarantine leave for a period not exceeding 21 days (30 days in exceptional
circumstances) on the certificate of the authorised medical officer or a Plublic Health
Officer.
16.2 Cholera, Small-pox, plague, diptheria, typhus fever and cerebro-spinal meningitis will be
considered as infectious diseases for the purpose of this rule. Any other disease as might
have been declared by the State Govt. concerned as infectious disease for the purpose of
quarantine leave may also be taken into account for grant of quarantine leave under these
rules. In the case of chicken-pox, quarantine leave should not be sanctioned unless the
authorised Medical Officer/Public Health Officer considers that because of doubts as to the
true nature of the disease for example, small-pox, there is reason for the grant of such
leave.
16.3 An employee shall not be eligible for quarantine leave if he himself is suffering from any
infectious disease.
16.4 Quarantine Leave may also be granted, when necessary, in continuation of other leave.

17.0 LEAVE FOR PROSECUTING HIGHER STUDIES / SPECIALISED

TRAINING
17.1 An employee may be granted leave for prosecuting higher studies or for specialised
training in India or abroad on the basis of scholarship for fellowship received by him or
otherwise subject to the following conditions:
a) The nature of studies or training is such that these will be of definite advantage to
the company and these are atleast of post-graduate level.
b) The management is in a position to spare the employee for the period of leave
applied for.
c) The employee has rendered not less that 3 years continous service in the company
and shall not superannuate within a period of atleast 5 years of the date on which
he would resume duty on the expiry of leave.

6.3.6
 d) An employee who has acquired any qualification or has been trained abroad at the
expense of the company shall be eligible for the leave only on completion of 5 years
service after such acquisition or training.
e) An employee who is on probation or who has been promoted to a higher grade on
the condition of passing a departmental examination/test shall be granted the leave
only on successful completion of his probationary period or on his passing the
departmental examination/test, as the case may be.
NOTE :
1. An employee who is under a bond to serve the company for a stipulated period
shall not be eligible for the leave during the currency of the bond.
2. The grant of this leave to non-executive employees may be considered in really
deserving cases. The leave shall be allowed in such cases only with the approval of
the Chairman/Chief Executive of the Unit.
17.2 Leave shall consist of Earned Leave, Commuted Leave, Half-Pay Leave and Extra-
Ordinary Leave to the extent due and admissible subject to the condition that the total
period of such leave shall be limited to 24 months (36 months in exceptional cases with
the approval of Chairman).
17.3 An employee shall, before the proceeding on leave, execute a bond in prescribed form to
serve the company for not less than 3 years on return from leave, failing which he shall be
liable to pay to the company an amount calculated as under:
a) If he is in receipt of pay upto Rs. 1500/- p.m.
i) Rs. 15,000/- in case he fails to rejoin duty or, after rejoining, serves the
Company for a period of less than 2 years.
ii) Rs. 10,000/- in case after rejoining, he serves the company for atleast 2 years
but fails to serve for a minimum period of 3 years.
b) If he is in receipt of pay in excess of Rs. 1500/- p.m.:
i) Rs. 20,000/- in case he fails to rejoin duty or, after rejoining, serves the
company for a period of less than 2 years.
ii) Rs. 15,000/- in case, after rejoining, he serves the Company for atleast 2 years
but fails to serve for a minimum period of 3 years.
17.4 An employee shall not accept any regular job during the period of this leave.
NOTE :
1. The Company shall not undertake any liability or responsibility on account of
passage or any other arrangements in connection with higher studies or specialised
training during the period of leave.
2. An employee returning from leave shall submit a report on the study/training
bringing out the aspects considered useful from the point of view of the company.
CLARIFICATION
It is clarified that Clause 12.0 of the Leave Rules should be read with Clause 17.0 dealing

6.3.7
 with leave for prosecuting higher studies/training. Clause 12.3 of the Leave Rules may not
be granted independently under this clause.

18.0 SPECIAL CASUAL LEAVE

18.1 Special Casual Leave may be granted to an employee at the discretion of the sanctioning
authority to cover the period of absence during which he is unable to attend duties in
special circumstances which are not purely personal or domestic as herein specified.
18.2 Special Casual Leave may be allowed to an employee for a period not exceedidng 30
days (60 days in exceptional cases) in a calendar year for participation in sports and
cultural activities subject to the following conditions:
a) The leave shall be admissible only for participation in sporting events/cultural
activities of State or National or International importance or when organised on inter
plants/units basis.
b) The leave shall be admissible only when an employee has been selected for such
participation in a representative capacity (and not in his personal capacity).
i) In respect of events/activities of International importance by an organisation/
association at National Level and recognised as such by Government.
ii) In respect of events/activities of National importance when the event or
activity is held on an inter-zonal or inter-circle basis and the employee takes
part in the event/activity as a member of a team or troupe as a duly
nominated representative on behalf of the State/Zone/Circle, as the case may
be.
iii) In respect of inter-plant/units events/activities when the employee takes part
therein as a member of a team/troupe as a duly nominated representative on
behalf of the plant.
c) The leave shall be admissible for participation in a mountaineering Foundation only
if the expedition has the approval of the Indian Mountaineering Foundation.
18.3 Special Casual Leave may be aollowed for blood donation for one day on each occasion
on medical certificate.
18.4 Special Casual Leave may be allowed for family planning on production of medical
certificate as provided below:
a) For a period not exceeding six days in the case of the male employees who undergo
vasectomy operation. If an employee undergoes the operation for the second time
on account of the failure of the first operation, leave may be granted again for a
period not exceeding six days.
b) For a period not exceeding 14 days in the case of female employees who undergo
tubectomy operation whether puerperal or non-puerperal and who undergo
salpingectomy operation after medical termination of pregnancy(MTP). If an
employee undergoes tubectomy operation for the second time on account of the

6.3.8
 failure of the first operation, leave may be granted again for a period not exceeding
14 days.
c) A male employee may be allowed special casual leave upto 7 days if his wife has
undergone tubectomy operation puerperal or non-puerperal for the first or second
time or who has undergone salpingectomy operation after medical termination of
pregnancy to look after wife during her convalesconce.
d) Female employees who have insertion of interauterine contraceptive devices (IUCD)
may be granted special casual leave on the day of insertion.
e) Where an employee requires leave beyond the prescribed limits of special casual
leave for undergoing sterilisation operation owing to the development of post
operation complications, he 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 days in case of
vasectomy operation and 14 days in case of tubectomy operation where the
employee, though not hospitalised, is not found fit to go to work.
f) The following categories of employees who undergo operation for recanalisation
may be granted special casual leave for a period of 21 days or for the actual period
of hospitalisation, 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 sterilisation operation).
18.5 When an employee is called for training in the Territorial Army, the entire period of
training including the period of transit to and fro may be treated as special casual leave.
18.6 Employees affected by floods or other natural calamities may be granted special casual
leave for the period of absence subject to the following conditions:
a) The area in which the employees are living has been declared as an effected area by
the State Government.
b) The period of special casual leave shall be limited to the period covered by the State
Government Notification in this regard.
CLARIFICATION
Special Casual Leave may be sanctioned to the Ex-servicemen employed in FSNL for
appearing before the Medical Resurvey Board for medical check-up as required by the
Defence Ministry/Army. The leave in such cases would be granted as per requirement, but
in any case will be limited to 15 days in a year including transit time both ways.

19.0 LEAVE SALARY

19.1 An employee who proceeds on Earned Leave is entitled to leave salary equal to the pay
drawn immediately before proceeding on Earned Leave.

6.3.9
19.2 An employee on Half-pay Leave or leave not due is entitled to leave salary equal to half
the amount specified in Rule 19.1.
19.3 An employee on Commuted Leave, Maternity leave and Special Disability Leave is
entitled to leave salary equal to the amount admissible under Rules 19.1.
19.4 An employee on Extra-ordinary leave is not entitled to any leave salary.
19.5 An employee on quarantine leave and special casual leave is entitled to leave salary equal
to the amount admissible under Rule 19.1.
19.6 Dearness Allowance during leave is based on the leave salary actually drawn both for the
purpose of monetary limits, if any, within which the allowance may be admissible and for
calculation of the amount of the allowance.
CLARIFICATION
Payment of salary for the holidays occuring 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 days EOL, there are five days 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 days Half-pay leave, 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.

20.0 ADVANCE OF LEAVE SALARY

An employee proceeding on leave for a period of 30 days or more may be allowed an
advance equal to leave salary due for the first month of the leave and such allowance as
may be admissible on that leave salary subject to normal deductions.
CLARIFICATION
Leave salary advance under clause 20.0 of the Leave Rules may be allowed if the period
of absence is 30 days or more. In such cases, it may not be insisted that the number of
days of leave excluding intervening holidays should be 30 days or more.

21.0 REGULATION OF CLAIM TO LEAVE

An employees claim to leave shall be regulated by the rules in force at the time the leave
is applied for and granted.

22.0 APPLICATION FOR LEAVE

Any application for leave or extension of leave shall be made in the form and in the
manner prescribed.

23.0 LEAVE ACCOUNT

A leave account shall be maintained in the prescribed form for each employee by the
sanctioning authority.

6.3.10
24.0 GRANT OF LEAVE ON MEDICAL CERTIFICATE
24.1 An application for leave or extension of leave on medical grounds shall be supported by a
medical certificate given by the authorised medical officer.
24.2 The medical certificate should clearly indicate the nature and probable duration of the
illness and the period for which leave is required. The certificate issued by the authorised
medical officer, should also contain the signature of the employee (thumb impression in
the case of illiterate employees) which should be attested by the issuing officer.
24.3 An authority competent to grant leave may, in its discretion, waive the production of a
medical certificate in case of an application for leave for One Day, in which case only the
prescription of Companys authorized doctor will be required.
24.4 The authority competent to grant leave may, at its discretion, secure a second medical
opinion where it is not satisfied about the genuineness of a case of the kind or duration of
leave recommended.
24.5 A medical certificate shall not by itself confer upon the employee any right to leave; the
leave shall be admissible only at the discretion of the sanctioning authority.

25.0 RETURN FROM LEAVE

An employee who has taken leave on medical certificate may not be allowed to resume
duty unless he has produced a medical certificate of fitness issued by the authorised
medical officer.

26.0 RECALL TO DUTY BEFORE EXPIRY OF LEAVE

An employee may, in the exigencies of work, be recalled to duty from leave. In case of
such recall, the employee shall be entitled to be treated as on duty from the date on which
he starts for the station to which he has been ordered to proceed and to draw:
i) Travelling allowance as on tour
ii) Leave salary, until he joins his post, at the rate at which he would have drawn it but
for recall to duty.

27.0 LEAVE ON RETIREMENT OR FINAL CESSATION OF DUTIES

27.1 An employee who retires from the service of the company on attaining the age of
superannuation or at the end of the term of his employment, shall be entitled to encash
Earned Leave and HPL at his credit as on the date of retirement limited to a maximum of
150 days and 240 days,respectively,in terms of the Leave Encashment rules.
27.2 An employee who takes voluntary retirement under the Voluntary Retirement Scheme
shall be entitled to encash earned leave as provided in the scheme.

6.3.11
27.3 Employees who put in 6 months or more than 6 months of qualifying service in the
calendar year of superannuation, will be given credit for Earned Leave and Half Pay
Leave, as if they worked for the whole calendar year and the employees who put in less
than 6 months of qualifying service will get credit of Earned Leave and HPL on pro-rata
basis.
27.4 In case of employees 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 calculated in the pay for computation of leave
salary.

28.0 CASH EQUIVALENT OF LEAVE SALARY IN CASE OF DEATH IN

SERVICE
In case an employee dies while in service, cash equivalent of leave salary in respect of
Earned Leave and HPL standing to his credit not exceeding 150 days and 240
days,respectively,shall be paid to his nominee or in absence of nominee to his legal heirs.

29.0 DISMISSAL, REMOVAL OR RESIGNATION

29.1 Any claim to leave to the credit of an employee, who is dismissed or removed from service
or who resigns from service, ceases from the date of such dismissal/removal or release on
resignation, as the case may be.
29.2 An employee who is dismissed or removed from service and is subsequently re-instated on
appeal or revision shall be entitled to count for leave for his service prior to dismissal or
removal, as the case may be.

30.0 PERSONS RE-EMPLOYED AFTER RETIREMENT

In the case of a person re-employed after retirement, the provisions of these rules shall
apply as if he has entered Companys service for the first time on the date of his re-
employment.

31.0 TRANSFER FROM OR TO POSTS GOVERNED BY OTHER

LEAVE RULES
31.1 An employee to whom these rules do not apply when appointed or promoted to a post to
which these rules apply, shall become subject to these rules from the date of such
appointment and the leave at his credit under the rules previously applicable to him shall
be carried forward subject to the provisions of these rules.
31.2 If an employee governed by these rules is appointed to a post wherein his leave terms are
governed by different rules, the balance of the leave at his credit on the date of such
appointment shall be carried forward subject to the provisions of the rules applicable in
the new appointment.

6.3.12
32.0 FOREIGN SERVICE/DEPUTATION
An employee on deputation in India shall continue to be governed by these rules. In case
of an employee who proceeds on foreign service outside India, these rules shall apply to
the extent provided to the terms and conditions of foreign service.

33.0 MISCELLANEOUS
33.1 Where any doubt arises as to the interpretation of these rules, it shall be referred to the
Corporate Office for decision.
33.2 The company reserves to itself the right to modify, alter, amend or cancel any of these
rules without notice.

6.3.13
 ENCASHMENT OF EARNED LEAVE

1.0 OBJECTIVE & SCOPE

With a view to reduce long and frequent absenteeism and also to encourage employees to
avail leave in a planned and systematic manner, a scheme on Encashment of Earned
Leave is introduced which shall be applicable to all regular employees of the company
(including the whole-time Directors of the corporation excluding those on deputation from
Govt./other organisations and company employees on deputation to other).
Encashment of Earned Leave will enable employees to meet part of the expenses to travel
and holiday out of their accumulated leave.

2.0 ELIGIBILITY

2.1 ENCASHMENT OF EARNED LEAVE 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 the credit or 30 days earned leave whichever is
less.

3.0 ON DISMISSAL OR REMOVAL FROM THE SERVICE

The encashment of leave will not be admissible on dismissal or removal from services of
an employee. However, in case of termination simplicitor an employee will be eligible for
encashment of earned leave as per 2.1 above.

4.0 ON RETRENCHMENT
The employee shall be paid leave salary in lieu of Earned Leave due to him.

5.0 ON RETIREMENT
If any earned leave due to an employee is not utilised, he shall be allowed to encash the
unavailed portion of earned leave.

6.0 ON DEATH
Leave salary in respect of earned leave standing to his credit shall be paid to the legal
heir(s) of the employee.

7.0. ON RESIGNATION
The employees will also be allowed to avail Encashment of Earned Leave in case of their
resignation from the service & acceptance thereof.

6.4.1
 If an employee is not able to serve the full notice period as per the terms of his
employment and is allowed an early release by the competent authority, the period not
served shall be adjusted against the Earned Leave and the balance will be allowed for
encashment.

PROCEDURE
For earned leave encashment under rules 2.1 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.

SANCTIONING AUTHORITY
The officers who are competent to sanction earned leave shall be the Sanctioning Authority
for approving encashment of earned leave under these rules.

ENCASHMENT BENEFITS
a) The encashment of leave shall be regulated on the basis of last pay drawn which includes
basic pay, dearness allowance and personal pay, if any, but shall not include incentive
bonus, acting/officiating allowance and other allowance.
b) The encashment benefit shall not be reckoned as wage/salary while working out O.T.,
Gratuity, P.F., Bonus under the Bonus Act etc.

ACCUMULATION OF EARNED LEAVE

The maximum accumulation of earned leave will be 150 days for workmen and supervisory
staff and 240 days in case of officers

DEDUCTION OF PF
Provident Fund at the prescribed rate (presently 12% of Basic + DA) shall be deducted on
the amount of encashment of Earned Leave during the service period of employee and / or at the
time of separation / superannuation and the same shall be deposited in the employees' Provident
Fund A/c, together with Employer's matching contribution.

ENCASHMENT OF HALF-PAY LEAVE

1.0 Encashment of Half-pay Leave is allowed subject to a maximum of 240 days. The
encashment of Half-pay Leave will be allowed in respect of the following cases:
i) On separation from the company on attaining the age of superannuation
ii) Death while in service
iii) Permanent total disablement
2.0 Other conditions governing the encashment of Half-pay leave will be the same as are in
the case of Earned Leave Encashment.

6.4.2
 LEAVE TRAVEL CONCESSION RULES

1.0 TITLE
These rules shall be called Ferro Scrap Nigam Limited Leave Travel Concession Rules.

2.0 OBJECTIVES
To provide as a measure of welfare, travel assistance to the employees of the Company
and members of their families for visiting their Home Town/any place in India.

3.0 DEFINITIONS
In these rules, unless the context otherwise requires:
3.1 Employee means a person employed in any establishment of the company who has
completed one year of continous service in the company on the date of commencement
of the outward journey but excludes the following:
i) Persons not in the whole-time employment of the company
ii) Casual/Daily rated employees;
iii) Apprentices/Trainees on stipend;
iv) Persons entitled to Railway privilege/retirement passes and PTOs as personal to
them.

3.2 FAMILY
3.2.1 Family means the employees wife or husband as the case may be residing
with him/her and legitimate children and step-children residing with and wholly
dependant on the employee.
3.2.2 The term Children includes major sons, married and widowed daughters so
long as they are residing with and wholly dependant on the employee. However,
LTC/LLTC will not be extended to "Married Son" of the employees. Further, an
employee desiring to avail LTC/LLTC in respect of unmarried major son, would
be required to give a separate declaration in the prescribed form every time.
3.2.3 The term legitimate children includes adopted children if under the personal
law of the employee, adoption is legally recognised as conferring on the adopted-
child the status of natural child.
3.2.4. Employees joining the services of the company on or after 2/9/95, shall be
entitled to claim LTC/LLTC for maximum 2 children only.
3.2.5 Only one wife is included in the term Family.
3.2.6 For the purpose of LTC for Home Town only, dependant parents of the
employees shall be included in the list of entitled depandants, provided the
income of the parents from all sources does not exceed Rs. 1500/- per month.
3.3 Headquarters means the normal place of an employee at the time of the outward
journey.

6.5.1
3.4 HOME TOWN
3.4.1 Home Town means the permanent home town or village of the employee as
entered in his service record or as declared by him on joining the service of the
company and accepted by the competent authority.
3.4.2 Home Town shall be a place which the employee is required to visit at intervals
for discharging domestic and special obligations or where he owns immovable
property or where his near relations reside permanently or where he has been
staying for some years before joining the service of the company.
3.4.3 The declaration of the home town once made shall ordinarily be treated as final.
Inexceptional circumstances, a change in the declaration may be allowed by the
competent authority provided that such a change shall be made once during the
entire service of the employee, atleast before one year of superannuation from
the service.
3.4.4 Where both husband and wife are Co.s employees the couple should be treated
as a single family unit and should declare only one place as their joint Home
Town and the concession for the family will be on the scale admissible either to
the husband or to the wife. In line with this, where both husband and wife are
employed in the company and are stationed at the same place, only one set of
dependant parents, may be included for the purpose of LTC at the option of the
couple. However, where the husband and wife who are employed in the
company are posted at different stations, they may be allowed to have the
benefit of LTC in respect of dependant parents as separated individuals.
3.4.5 The declaration of the home town should be kept in service record of the
employee.
3.5 Any place in India means any place within the territory of India, whether on the main-
land or overseas.
3.6 Shortest Route will also cover the route by which the destination can be reached earlier
in the point of time by the approved mode of travel.

4.0 ENTITLEMENT
4.1 Leave Travel Concession (LTC) under this rules shall be admissible to such of the
employees as are entitled to regular leave and the members of their families to the extent
and subject to conditions hereinafter provided.
a) Reimbursement of actual cost of travel by entitled class from the Headquarters to
home town and back once in a block of two calendar years.
b) Reimbursement of actual cost of the travel by the entitled class from the
headquarters to any place in India and back once in a block of 4 calendar years in
lieu of one of the two concessions available under the rule 4.1(a) in a block of 4
calendar years.

6.5.2
 c) Employees while availing LTC for their home town may visit any other place upto
maximum of 750 Kms each way, if they so like, in lieu of home town.
d) Employees can avail the LLTC as per the above rules with the option for maximum
1700 KMs each way on certificate as prescribed.
EXPLANATION
An employee thus can avail LTC twice in a block of 4 years once for travelling to his home
town only and once for the journey to any place in India including his home town. The
concession to visit any place in India is adjustable against the concession to visit home
town to which an employee is eligible at the time of undertaking the journey to visit any
place in India.
4.2 An employee whose family is living away from his place of work, may, instead of availing
the concession both for self and family once in a block of two years, avail the concession
for himself alone every year for visiting his home town. Further, in a block of 4 years such
an employee may avail (i) to home town twice for himself alone and any place in India for
self and family once or (ii) four times to home town for self only.
4.3 The concession is admissible to the members of an employees family with reference to
facts existing at the time of outward and inward journeys independently. A change therein
may result in entitlement as illustrated below:
I. Entitlement to reimbursement in respect of the outward journey only
i) A dependant son/daughter employed 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 journey from home town.
II. Entitlement to reimbursement in respect of the return journey only
i) A newly married husband/wife coming from home town to headquarters or a
husband/wife who has been living for a long time at home town and did not
avail of the concession in respect of outward journey. If an employee gets
married at a place which is on the shortest route to the hometown/declared
destination, LTC may be allowed to the spouse from the place of marriage to
the home town/declared destination and back to the headquarters of the
employee.
ii) A dependant son/daughter returning with parents or coming along from
hometown where he/she has been prosecuting studies or living with grand
parents etc.
iii) A child has completed the chargeable age only at the time of the return
journey.
iv) A child legally adopted while staying in the hometown.
NOTE : Where the journey is performed by the children or an employee from the
home town of the employee to his head quarters during the vacations, LTC
may be allowed for both the outwardand inward journeys. LTC may also be

6.5.3
 allowed where the children studying in educational institutions at a place other
than the employees headquarters or home town, travel from the place of
study either to home town or to the head quarters of the employee and back
may be allowed, 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 and the journey been performed between the head quarters and
the home town of the employee.
4.4 Where the spouse of an employee is employed outside the company, the concession will
be admissible to the spouse on the condition that similar concession is not available in the
organisation 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 at the time
of preferring the claim.
4.5 The concession shall be admissible to an employee only when he proceeds on regular or
Casual leave for a period of not less than six days inclusive of weekly off and closed
holidays. The members of a family may,however, avail the concession irrespective of the
period of leave of the employee and irrespective of the fact whether the employee avails
LTC or not.
4.5.1 For the purpose of this rule and rules 4.1 and 6.2, regular leave means Earned
Leave, Half pay leave, Commuted Leave, Maternity Leave, Extra-ordinary leave
and vacations in the case of employees serving in vacation department.
4.6 The block of two calendar years for the purpose of visiting home-town shall be 1982-83,
1984-85 and so on. The block of four calendar years for the purpose of visiting any place
in India shall be 1982-85, 1986-89 and so on.
4.7 In case of concession is not availed of during a particular block of two/four years, it may
be availed of before the end of the succeeding calendar year.The regular block years will,
however, remain unchanged.
4.8 The date of commencement of outward journey decides the block to which the concession
is debitable.
4.9 LTC facility to any place in India may be availed by an employee in either the first or the
second half of the four year block.
4.10 In the case of fresh entrants in Co.s service, the first block of two years would be the
regular block in which they complete one year of continous service. For example, 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 of continous service in that block.
4.11 An employee due for superannuation may avail the concession ifhe is otherwise eligible
therefor provided the return journey is completed before the date of superannuation.
4.12 An employee who has submitted notice of resignation from Co.s services may be
permitted to avail the concession to home town or any place in India during the notice
period provided the return journey is completed before the expiry of the notice period and
the employee rejoins duty after availing LTC.

6.5.4
 4.12.1 The concession is not admissible to an employee who proceeds on regular leave
and then resign to his post without returning to duty. The entire amount of
advance if drawn, will be recovered from the dues of employees.
4.13 In the case of an employee under suspenion, the concession is admissible to the members
of his family only. The employee will, however, be allowed to avail the concession for the
same block year after the suspension is revoked and he joins duty.
4.14 A re-employed person is eligible for the concession on completion of one years of
continous service after re-employment subject to the following:
i) The successive block of two/four calendar years shall be reckoned from the actual
date of joining the service of the company on re-employment.
ii) The appropriate authority certifies, at the time of the employee avails himself of the
concession, that he is likely to continue in the service of the company for a period of
two/four years from the date of his initial re-employment.
4.14.1 In the case of re-employment of a company employee immediately after
retirement, the period of re-employed service may be treated as continous with
the previous service for this purpose and the concession allowed for the re-
employed period provided the concession would have been admissible to the
employee but for his retirement.
4.15 In the case of employees on deputation with the Company or the Company employees on
deputation outside, the entitlement for LTC will be governed by the terms and conditions
of deputation.
4.16 While availing LTC to visit any place in India, an employee and/or members of the
families may visit the same place or different places of their choice. The members of the
family need not travel while availing LTC to visit home town or any place in India, in the
same calendar year in which the employee travels. They may travel either together or
separately at different times to different places. When they travel in different groups, at
different times, reimbursement of expenditure may be allowed in respect of each group
provided the journey is completed within six months of the date of commencement of the
outward journey by that group. In such cases the number of groups shall not exceed two,
excluding cases covered by the note under the rule 4.3 (II).
4.17 When the concession to visit any place in India is proposed to be availed by the
employee/members of the family, the intended place of visit should be declared in
advance. The place of visit so declared can, however, be changed before the
commencement of outward journey with the prior approval of the competent authority.
4.18 In case an employee declares a place outside India as the home town, the concession shall
be limited to the fare upto and from the railway station/airport/sea port in India nearest to
the home town by the shortest route.
4.19 Whenever a case of fraudulent claim of LTC comes to notice and the competent
disciplinary authority arrives at a conclusion that there is a prima-facie case for initiating
disciplinary proceedings against an employee for the misconduct, the claim for the LTC

6.5.5
 would be with-held and he would not be allowed this facility till finalization of the
proceedings.
If an employee is fully cleared of the charges of misuse of LTC, he would be allowed to
avail of th LTC with-held earlier, as additional set(s) of the LTC in future blocks of years,
but before his normal date of superannuation. In such a situation, the provisions relating
to lapsing of LTC facility not availed within the first year of the next block will not apply.
If however, an employee is not fully cleared of the charges of misuse of LTC, he shall not
be allowed the next two sets of LTC in addition to the set(s) of LTC already with-held. If
the nature of the misuse is grave, the competent authority may disallow more than two
sets of LTC. Such disallowance shall be without prejudice to the punishment for any
proved misconduct in the disciplinary proceedings.

5.0 CALCULATION OF CLAIM

5.1 The reimbursement shall be allowed by the entitled class or the actual class of travel
whichever is lower (as per the Travelling Allowance Rules) between home town/declared
destination and the headquarters, by the shortest route on through ticket basis, though the
employee or the family members may travel by any route or any class or halt anywhere
on the way to or from the home town/declared destination. However, only Executives
working in the grade of E-6 and above will be entitled to travel by Air/ACC by rail.
5.2 The journey need not necessarily commence from and end at the headquarters but the
reimbursement, will be limited to the actual distance travelled or the distance between the
headquarters and the hometown/declared destination, whichever is less.
5.3 Where journey between places connected by rail or a part thereof is performed by road by
public transport or chartered bus, reimbursement will be on the basis of the railway fare by
the entitled class by the shortest route or on the basis of actual expenses, whichever is less.
Where such journey is performed by private car (registered in the employees own name),
the cost of propulsion being borne by the employee himself, reimbursement will be
equivalent to what would have been admissible had the journey been performed by rail
by the entitled class by the shortest route.
5.3.1 A certificate to the effect that the employee and/or the members of his family
travelled by the employees own car may be accepted as adequate.
5.3.2 In the case of officers entitled to travel by rail by ACC reimbursement as per ACC
fare can be allowed provided ACC facility is available on the shortest route. In
other cases, reimbursement will be limited to 1st class fare only.
5.4 Where journey between places not connected by rail is performed by road, reimbursement
will be limited to road mileage as per entitled under Travelling Allowance Rules or the
actual expenses, whichever is less. However, the number of road mileages should not
exceed three in such case.
5.5. In respect of places not connected by rail, an employee may travel by air when an
alternative means of travel is either not available or is more expensive. In such cases,
reimbursement will be of the actual expenses incurred or the air fare, whichever is less.

6.5.6
5.6 While availing LTC to any place in India, an employee may travel by pilgrims/yatra special
trains. The reimbursement in such cases will, however, be limited to the fare by the
entitled class by the shortest direct route to the declared destination. In case an employee
who is entitled to travel by first class performs the journey in a special coach of second
class compartment but with certain extra facilities like dunlop pillow etc. arranged by
tourist agencies, reimbursement will be allowed on the basis of actual fare/amount charged
by the travel agent excluding food charges limited to the fare by the entitled class of travel.
5.7 The employee and their families may avail the facility of circular trip ticket offered by the
Railways but reimbursement in such cases would be regulated as between the
headquarters and the home town/declared destination by the shortest route and will be
limited to the fare by the entitled class or the actual fare, whichever is less.
5.8 The employees and their families may travel in a group by luxury bus/chartered bus but
reimbursement in such cases will be:
i) Actual bus charges
ii) The amount reimburseable had the journey to the declared place of visit been
performed by the entitled class by rail whichever is less.
5.9 In respect of journeys performed by ponies in hilly areas (e.g. to Amar Nath caves in
Jammu & Kashmir) reimbursement will be as admissible by road or as per the tariff for
ponies as prescribed by the State Govt, whichever is less.
5.10 For journeys to Portblair, Andaman and Nicobar Islands,the surface journey to the nearest
port will be regulated as other journeys under these rules. With regard to the sea passage,
employees entitled to travel by second class by rail may be allowed reimbursement for
travel by either Bunk class or second class by MV Harsh Vardhan (without diet charges),
run by Shipping Corporation of India Ltd. 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 Andman or MV Harshvardhan (without diet charges) run by
Shipping Corporation of India Ltd. or by Air.
5.11 Those employees/family members, whose maximum entitlement is 1st class will not be
eligible to reimbursement of surcharges for travel by ACC-II tier Sleeper and if they do so,
they will themselves bear the charges.
5.12 The various concessions offered by the Railway authorities (e.g. seasonal concession,
students concession, return tickets etc) may be availed in conjunction with leave travel
concession. The amount reimbursed will then be the actual expenditure on the
concessional ticket.
5.13 The reservation charges are reimburseable irrespective of whether employee/family
members travel by ordinary train or super-fast train.
5.14 Ticket cancellation charges will be reimburseable only if cancellation of journey is solely
due to official reasons and is in the interest of the companys work.
5.15 Employees availing LTC, if recalled to duty from leave in co.s interest, will in addition to
TA for the return journey, get DA under the TA rules.

6.5.7
6.0 COMBINATION WITH TRANSFER/TOUR
6.1 If an employee visiting home town on leave proceeds there from on trasfer to his new
headquarters,he may be allowed, in addition to travelling allowances as on transfer, leave
travel concession to the extent of the distance from the old headquarters to home town
and from home town to the new headquarters minus the distance for which transfer TA is
admissible. It will be open to the employee not to avail of LTC without prejudice to his
entitlement for the concession at a later date subject to the usual conditions.
6.2 If an employee proceeds with prior permission to his home town on leave from a tour
station and returns to his headquarters direct from the home town, he will be entitled to
travelling allowance as on tour for journey from headquarters to the tour station from
which the employee proceeds to the home town and leave travel concession for the
journey from tour station to home town and from home town to headquarters, deeming
the tour station as the starting point for the onward journey.
6.3 If an employee proceeds to a tour station from his home town with prior permission and
returns to headquarters from there leave travel concession will be allowed from
headquarters to home town and travelling allowance as on tour for the journey from
home town to tour station and back to headquarters.

7.0 GRANT OF ADVANCE

7.1 Advances are granted by the company to the employees to enable them to avail
themselves of the concession.
7.2 The advance will be limited to the estimated amount which the company will have to re-
imburse under these rules in respect of journeys both ways.
7.3 Advance both for the outward and return journey will be admissible only if the return
journey will be completed within 90 days of the date of commencement of outward
journey. If after drawing the advance for journeys both ways, it becomes clear that the
return journey cannot be completed within 90 days, one half of the advance should be
refunded forthwith.
7.4 When an employee and the members of the family avail the concession separately,
advance may also be drawn separately.
7.5 Advance may be drawn upto two months before the proposed date of commencement of
the onward journey. In the case of employees proposing to travel by their own car, the
advance may be drawn upto one month before the proposed date of commencement of
the outward journey.
7.6 Advance will be sanctioned by the officers authorised to sanction advance of travelling
allowance. Officers who are their own controlling officers may sanction the advance for
themselves.

6.5.8
7.7 If after drawing an advance, the journey is either not performed or is not performed to the
declared destination, the entire amount of the advance should be refunded within 7 days
of the date on which the employee reports back for duty on return from leave or the
proposed date of commencement of the outward journey failing which the amount due
shall be recovered from the salary.
7.8 If the advance is drawn for the higher class but the journey is performed in a lower class or
if the advance is drawn for certain family members but the actual journey is not performed
by all of them, the excess amount should be refunded immediately on completion of
return journey.

8.0 SUBMISSION OF CLAIMS

8.1 An employee availing LTC for Home Town shall be required to submit within one month
of the completion of the return journey, a certificate to the effect that he and/or the
entitled members of his family have duly performed the journeys to and fro and that the
expenditure incurred by him on this account is not less than the amount of the advance
sanctioned to him. Where the amount actually spent is less than the amount of the
advance, the certificate shall be given accordingly and balance amount of the advance
shall be refunded by him within the stipulated period, failing which it shall be recovered
from his salary.
8.2 The claims for LTC to any place in India shall be submitted within one month of the
completion of the return journey and shall be supported by appropriate proof of the
journeys having been performed (e.g. railway ticket numbers, bus/taxi numbers, cash
receipts etc). Where advance was sanctioned, the balance should be refunded while
submitting the final bill, failing which it will be recovered from the salary of the employee.

9.0 TENURE
The company reserves to itself the right to modify, amend or cancel any of these rules
without notice.

6.5.9
 7.0

WELFARE SCHEMES
MEDICAL REIMBURSEMENT SCHEME FOR EXECUTIVES

1. SCOPE :
1.1 The FSNL Medical Scheme shall apply to all regular employees working in executives
category, trainees and apprentices (other than Apprentices engaged under Apprentices
Act) their families including deputationists from Govt. Deptt. and other organisations.
Apprentices covered under the Apprentices Act and casual employees shall be entitled
only to emergency treatment for injuries sustained during and in the course of their duty
or training as the case may be.

2. DEFINITION :
2.1 Employee means wholetime employee of FSNL working in executive category including
deputationists, trainees and apprentices (other than Apprentices engaged under
Apprentices Act or casual employees).
2.2 Family means employees wife or husband as the case may be, children and step
children (including legally adopted children), wholly depandant upon him/her and parents
wholly depandant upon him/her and who reside with the employee and not gainfully
employed.
2.3 Gainful employment means the income of the dependant concerned from all sources
should not exceed Rs. 1500/- per month.
2.4 Patient means a FSNL employee or a member of his family to whom these rules apply
and who requires medical attention.
2.5 Treatment means the use of all medical and surgical facilities essential for the recovery
or prevention of deterioration in the condition of the patient except in so far as restricted
by these rules.
2.6 Hospital/Nursing Home/Clinic shall be deemed to mean any institution in India
operated for the care and treatment of sickness and injuries and which has been registered
either as Hospital or Nursing Home or Clinic with the local authorities and is under the
supervision of a Registered and qualified doctor. The term Hospital shall not include an
establishment which is a place of rest, a place for the aged, a place for drug addicts, a
place for alcoholics or a hotel.
2.7 Domiciliary treatment means medical treatment for such illness/injury/disease which in
the normal course would require care and treatment at a Hospital/Nursing Home/Clinic as
an outpatient or actually taken whilst confined at home in India from a Registered Medical
Practitioner.
2.8 Competent Authority means Managing Director of the Company.

7.1.1
3.0 DOMICILIARY TREATMENT :
3.1 Medical expenses incurred by the employees on the domiciliary treatment to self and
entitled family members will be reimbursed subject to an annual limit of one months basic
pay plus D.A. drawn by the employees in the month of March of the relevant financial
year.
3.2 In the cases of investigation by the Pathologist and Radiologist, where hospitalisation is
not needed, reimbursement will be regulated under Domiciliary treatment.
3.3 In case of dental treatment, charges for denture, cleaning, polishing of teeth, filling of teeth
with gold, orthodental treatment on account of cosmetics will not, however, be
reimbursed.
3.4 In case of opthalmic treatment, cost of glasses will not be reimbursed.
3.5 Administering charges for injections will be reimburseable.
3.6 Expenditure incurred on treatment of mental disease/psychiatric treatment will also be
reimburseable under the rules.

4.0 HOSPITALISATION :
In cases of hospitalisation of employee and entitled family members, the reimbursement of
expenses will be full restricted to the charges prescribed by AIIMS, without limit.

5.0 MEDICAL TREATMENT IN SPECIAL CIRCUMSTANCES :

Reimbursement of medical expenses incurred at outstation will be allowed if an employee
and members of his family normally residing with the employee goes on sanctioned leave/
tour (applicable in case of employee only). Reimbursement will, however, be in
accordance with the rules applicable for domiciliary treatment.

6.0 In cases of serious diseases like Cancer, Heart disease, Leprosy, Kidney failure,
if the employee or his dependants as defined under these rules, is referred to
outside hospitals by the Specialist/Hospital, the expenses on in-door treatment
like bed charges, medicine charges, doctors charges, pathology, radiology and
other tests will be reimbursed by the company on actual basis. However, prior
approval of the M.D. for such treatment will have to be obtained.

7.0 TRAVELLING ALLOWANCE :

The patient referred for outstation treatment will be entitled to travelling allowance as per
T.A. rules of the company. T.A. for one attendant/escort will also be allowed if it is
certified by the specialist making reference that the attendant/escort is necessary
considering the condition of the patient.

7.1.2
8.0 Normally the hospitals do not provide ambulance facility. In serious cases when
hospitalisation of employees or their family members is essential in hospitals,
reimbursement of taxi fares may be made subject to ceiling of the road mileage applicable
in T.A. rules of the company. A certificate from the hospital will also be required to the
effect that the patient was hospitalised in emergent case.

9.0 The Commuted Leave shall be granted on the basis of certificate issued by any Regd.
Medical Practitioner.

10.0 REIMBURSEMENT PROCEDURE :

Reimbursement of medicine purchased as well as for the consultation obtained from the
Regd. Doctors for domiciliary treatment will be made by the company on receipt of claim
of the employee supported by Regd. doctors prescription fee and clinical/pathological/
other tests, in the format prescribed.
A record of the expenses by such employee will be kept and the claims will be regulated
accordingly. A monthly report will be submitted to Corporate Finance deptt indicating the
names and the amount claimed/paid by the 15th of the month following.

11.0 In case of any doubt or dispute regarding the interpretation, decision of the Managing
Director shall be final.

7.1.3
 MEDICAL RULES FOR NON-EXECUTIVE EMPLOYEES

1.0 SCOPE & DEFINITION

1.1 Medical treatment shall mean comprehensive medical cover, involving out-patient and
specialised treatment inclusive of all necessary pathological, radiological and other
methods of diagnosis. This will include dental and opthalmological services except
provision of dentures and spectacles. Medical treatment will also include:
1.1.1 Treatment at the consulting room of the authorised medical attendant
1.1.2 Treatment at the residence of the employee of family
1.1.3 At the out-patient department of a Govt./Recognised hospital
1.1.4 As an In-patient in Govt/Recognised hospital
1.2 Employee means wholetime employee of FSNL including Deputationists and Apprentices
(other than those working under Apprentices Act or Casual employees). Trainees shall be
governed as per the terms of their appointment, i.e. medical facility for self only during the
training period.
1.3 Family means :
i) The employees wife or husband as the case may be;
ii) Legitimate children and step children wholly dependant on the employee;
iii) Minor brothers/minor unmarried sisters upto the age of 21 years or widowed sisters
wholly dependant and physically residing with the employee, if the
father is :
a) not alive; or
b) wholly dependant on, and is residing with the employee.
iv) Major mentally retarded or handicapped dependant brother / sister, residing with
employee on merit of each case with the approval of Chief Executive; and
v) Parents if they are wholly dependant on, and residing with the employee.
1.4 Family members will be deemed to be dependant on the employee if individual monthly
income from all sources does not exceed Rs. 1500/- per month.
1.5 Female spouse of deceased employee appointed on compassionate grounds has option
either to include her own parents or parents-in-law as dependent provided they are
residing with her.
1.6 For treatment of FSNL employees, the company shall make a panel of M.B.B.S./M.D. or
Graduate in Medicine and in Surgery/Ayurved/Homoeopath doctors areawise. The names
of such doctors, alongwith their consulation timings shall be notified in the Notice Board
from time to time for information of employees. Employees can consult and receive
medical treatment from such panel doctors.

7.2.1
 In addition to above, Company shall also make a panel of Specialists viz. Surgeon,
Physician, Gynaecologist, Eye Specialist, Dentist etc.

2.0 ENTITLEMENT
2.1 An employee and his dependant family members are entitled to reimbursement of medical
treatment charges subject to the rules prescribed in this behalf.
2.2 Hospital Treatment (in approved hospitals)
2.3.1 The following hospitals are approved for undertaking treatment for employees
and their entitled dependants:

UNIT HOSPITAL

ROURKELA ISPAT GENERAL HOSPITAL & RSPS

HEALTH CENTRES/GOVT. HOSPITALS

BURNPUR IISCOS MAIN HOSPITAL & HEALTH

CENTRES/GOVT. HOSPITALS

BHILAI BSPS MAIN HOSPITAL & HEALTH

CENTRES/GOVT. HOSPITAL

BOKARO BSLS MAIN HOSPITAL & HEALTH

CENTRES/GOVT. HOSPITALS

VIZAG VSPS MAIN HOSPITAL & HEALTH

CENTRES/GOVT HOSPITALS/ AMRUTHA
NURSING HOME, QUEENS NRI HOSPITAL

DURGAPUR DSPS MAIN HOSPITAL & HEALTH

CENTRES/GOVT HOSPITALS

DOLVI G.T. HOSPITAL, MUMBAI

DUBURI GOVT. HOSPITAL, DANGADI

DELHI MOOLCHAND KHAIRATIRAM HOSPITAL

2.3 Reimbursement in approved hospitals will be for actuals towards Surgeons fee, O.T.
charges, anaesthesia charges and Doctors visit charges subject to deduction for
inadmissible items. Room rent shall be restricted to as provided in para 2.5.

7.2.2
2.4 Hospital Treatment (other than approved hospitals)
2.4.1 Surgeons fee for operation will be regulated as per AIIMS rates or Sir Ganga
Ram Hospital Rates, whichever is higher.
2.4.2 Visiting fee of Doctors during hospitalisation will be regulated as provided at
para 3.1.
2.4.3 Operation Theatre fee will be reimbursed limited to 25% of Surgeons fee.
Anaesthesia charges will be reimbursed to the extent of 25% of Surgeons fee in
case of general Anaesthesia. Surgeons fee for this purpose shall be as provided
in schedule of Rates at para 2.4.1.
2.5 Room Charges
2.5.1 The entitlement for room rent will be as follows:
Pay less than Rs. 2320/-(Pre-revised): Rs. 450/- per day
Pay Rs. 2320/- (Pre-revised) and above: Rs. 600/- per day
The above rates would be inclusive of service charges and other peripheral
charges which are related to room rent.
2.5.2 In case of patients, who require treatment in ICU, the limits for room rent will not
be applied and the actuals will be reimbursed in such cases.
2.5.3 The amount towards charges for special nursing/Attendant or Ayah to be
reimbursed, shall be limited to the amount which is in excess of 25% of the pay
(includes NPP, PP Spl Pay) of the employee concerned for the period for which
special Nursing/Attendant is necessary for hospitalisation on submission of the
prescribed certificates from Medical Officer Incharge of the Hospital/Nursing
Home (specimen given below) :

CERTIFICATE

I certify that Shri/Smt ___________________Relative of ___________________employed

in the ___________ has been under treatment for ___________disease at the _________
hospital/Nursing home and that the services of the special nurse for which an expenses of
Rs._________ was incurred vide bills and receipts attached, were essential for the
recovery/prevention of serious deterioration in the condition of the patient.

Signature of the Medical Officer Incharge

of the case at the Hospital/Nursing Home

Date :

7.2.3
2.6 Hospital treatment (at the referred hospital outside the Headquarter of the employee).
2.6.1 Employees who are referred outside the headquarter for specialised treatment,
such cases will be regulated as per rules as incorporated in the enclosed
Annexure.

3.0 Reimbursement of Consultation/Visits to Residence

3.1 Reimbursement of charges for consultation and visit to residence by the Authorised
Medical Attendant will be admissible in full on the basis of fees actually charged subject to
the following limits :

Non-Specialists
At Clinics : Rs. 40/- for first consultation & Rs. 30/- for subsequent
consultation upto to a maximum of 3 consultations for
the same ailment.

For domiciliary visits : Rs. 60/- for the first visit and Rs. 40/-
for the subsequent visit.

Doctors in the panel of Specialists

At Clinic : Rs. 75/- only for the first consultation and Rs. 50/-
for subsequent consultation upto a maximum of
3 consultations for the same ailment.

For Domiciliary Visits : Rs. 100/- for first visit and Rs. 75/- for subsequent visit.

(N.B.: A certificate will also be required to the effect that the domiciliary visit was essential
in the interest of the health of the patient).

4.0 Dental Treatment

4.1 Reimbursement towards dental treatment for the employees and their entitled family
members will be regulated as per the following guidelines:
i) Consultation charges shall be allowed as provided in para 3.1.
ii) For treatment in Govt Hospitals/ Govt recognised hospitals / Co. recognised
Hospitals, reimbursement will be allowed for actuals excluding non-admissible items.
iii) For treatment in other hospitals/medical institutions or Doctors clinic, claims will be
restricted to 30% higher than the rate of St.Stephens Hospital. Non-admissible items
will be disallowed.
iv) For orthodental treatment, claims will be restricted to Rs. 3500/-.

7.2.4
 v) For gum treatment, claim shall be restricted to Rs. 30/- per sitting.
vi) Dental treatment, which is not covered under these guidelines, will be decided on
case to case basis.

5.0 Medicines
5.1 Medicines prescribed by the authorised medical attendants can be purchased by the
employee and the cost reimbursed to him on presentation of bill together with the
prescription. Proprietary preparation should, as far as possible, be avoided, particularly
when cheaper substitutes of therapeutic value are available. Preparations which are
primarily foods, toiletry or disinfectants will not be paid for by the company and the cost
of these will be borne by the employee.
5.2 Medicines prescribed by the physicians should be purchased from a separate chemist.
However, in emergency where there is no time to go to a separate chemist to buy the
medicines and the medicines are given by the attending physician, the cost of medicines
given by physician is also reimbursable. This provision is not applicable in respect of
treatment under Ayurvedic, Homeopathic and Unani system of medicines which shall be
reimbursed even if they have been given by the attending physician.
5.3 Medicines prescribed by the Pathologist/Radiologists, other than those required in
connection with test, will not be reimbursed.

6.0 Reimbursement of Injection charges (Administration)

6.1 Actual charges charged by Medical Practitioner shall be reimbursed.

7.0 CHARGES FOR PATHOLOGICAL AND OTHER EXAMINATIONS

7.1 Charges for pathological and other examinations for diagnosis shall be reimbursed for
actuals to the employees, on production of necessary bills, as also the prescription asking
for such examinations by the authorised Medical Attendant.
7.2 Expenses towards X-ray, Special X-ray like IVP, Ba Meal etc. incurred for outdoor
treatment are not reimburseable if such examinations/tests are carried out by the
Attending Physician himself or are undertaken in the X-ray clinic run by the Attending
Physician.
7.3 Expenses towards laboratory tests are reimburseable only if such tests are carried out on
the prescription of a qualified physician and carried out by competent pathologists having
PG degree/diploma in pathalogy.

8.0 THERAPY TREATMENT

8.1 In case therapy treatment is undertaken/conducted by the specialised institution/specialist,
actual charges may be reimbursed.
8.2 In case therapy treatment is conducted by qualified physiotherapists on the advice of
qualified Doctors, the reimbursement may be made at the rates of Rs. 25/- per sitting.

7.2.5
9.0 TREATMENT UNDER HOMOEOPATHIC, AYURVEDIC & UNANI
SYSTEMS
9.1 Reimbursement towards fees of qualified physician/doctors will be restricted to the amount
as specified under these rules.
9.2 In case of Ayurvedic and Unani systems of medicines, reimbursement shall be allowed on
certification by the physician/doctor on the face of the prescription that the medicines do
not fall within the meaning of food, toiletry products, tonics and disinfectants.
9.3 In case of homoeopathic medicines, the same shall be reimbursed on presentation of the
charges levied by the Homoeopathic Doctors.
9.4 Allopathic medicines prescribed by Doctors practicing Homoeopathic and Indian system
of medicines and vice-vers are not reimburseable.

10.0 GENERAL PROVISIONS

10.1 Employees falling ill during official tours, are entitled to reimbursement of medical
expenses on the same lines as mentioned above.
10.2 In case of hospitalisation at the headquarter, actual taxi fare limited to single road mileage
as per TA Rules is reimburseable for the journey to hospital and back to residence and/or
from hospital to specialist and back to hospital. However, actual charges towards
ambulance provided by the hospital is reimbursable subject to TA Rules.
10.3 Cost of foreign medicines including custom duties for procuring the medicines not
available in India are reimburseable.
10.4 Cost of orthopaedic appliances supplied by hospital/Nursing Homes etc. is reimburseable,
provided cost levied is reasonable as certified by companys doctor and the rates are
comparable with the rates prevailing for the items made in India.
10.5 Cost of hearing aid is not reimburseable. However, cost of hearing aid may be reimbursed
if loss of hearing is due to accident on duty.
10.6 Cost of blood is reimburseable to the extent as charged by the Govt. Blood Bank/ Govt.
Agencies. In case of non-availability of any particular group of blood in Govt. Blood Bank
during emergency, then the actual cost of blood is reimburseable as purchased from the
private agencies. Charges for administration of blood as well as intravenous fluids may be
reimbursed limited to Rs. 10/- per bottle.
10.7 In case of bone fracture, if treatment is carried out by private Doctors in clinic, normal
consultation fee shall be reimbursed. In case of Indoor treatment, usual charges as
provided in the rules shall be reimbursed. Cost of medicines, plastering material shall also
be reimbursed separately.
10.8 Cost of spectacles is not reimbursable. However, cost of implant which is placed inside the
eye (not contact lens) is reimburseable.
10.9 Employees deputed for foreign assignment abroad shall continue to get the medical
facilities for the family members who are retaining their house at the place of posting.

7.2.6
 ANNEXURE

RULES REGARDING REIMBURSEMENT OF EXPENSES TOWARDS

SPECIALISED MEDICAL TREATMENT NOT AVAILABLE AT
THE HEADQUARTERS OF THE EMPLOYEE

1.0 OBJECTIVE
To standardise different practices in operation in various Plants and Units of FSNL, so as
to regulate medical claims towards specialised treatment obtained from outside the
Headquarters of the employee, on being referred by the competent authority.

2.0 POLICY
To provide, as a part of social security scheme, specialised medical treatment not available
at the Headquarters of the employee.

3.0 SCOPE
The rules shall apply to all employees of the Company and their entitled family members
(both Executives and Non-executives), but shall not apply to:-
a) Persons in casual/daily-rated/piece-rated or part time employment.
b) Persons employed in work-charged establishment
c) Act Apprentices,
d) Directly recruited Senior Operative Trainees/Junior Operative Trainees till they are
absorbed in the permanent cadre of the company,
e) House Staff; and
f) Interns

4.0 DEFINITIONS
In these rules, unless the context othrwise requires -
a) Company means Ferro Scrap Nigam Limited and the Plants/Units, Office under its
charge;
b) Competent Authority means - Managing Director

5.0 METHODOLOGY FOR REFERRAL

5.1 In case the required specialised medical treatment is available in one of the SAIL hospitals,
the patient may be referred to such hospital;
5.2 In case specialised medical treatment is not available in any of the SAIL Hospitals, the
patient may be referred to any other authorised hospital of the company where such
specialised medical treatment is carried out;

7.2.7
5.3 In serious cases where immediate medical attention is not expected to be provided by
SAIL Hospitals / Companys authorised hospitals, either for want of accommodation or for
non-availability of the specialist and/or such treatment is not available in such hospitals,
then any other hospital as per list attached may be preferred for immediate medical
attention.

6.0 REIMBURSEMENT OF MEDICAL EXPENDITURE

6.1 The reimbursement of claims towards cost of medical treatment as charged by the
Hospital concerned may be reimbursed in full except inadmissible items such as diet, cost
of disinfectants, tonics etc. The entitlement of the employee for room/accommodation at
the hospital would be at par with his entitlement in the Plant/Unit concerned.
6.2 Attempts will be made to make direct payment to the hospital wherever feasible. If such
arrangements are made to make payment direct to the hospital, the cost of non-
reimburseable items will be recovered from the employee.
6.3 Special cases - Sometimes patients, after taking initial indoor treatment, are released and
advised daily treatment/check-up 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 circumstances, patients are required to stay outside the hospital and attend as
required. In such special cases, as advised by Director (M&HS)/Head of the medical unit,
lodging charges for the patient only, limited to the monetary limits of lodging charges as
per clause of the TA Rules, subject to production of bills in case Guest House
accommodation is not available, may be reimbursed.

7.0 TREATMENT OBTAINED ABROAD

Case of medical treatment abroad, will be dealt with in accordance with the instructions
issued by the Govt. of India from time to time. Existing instructions issued by the Deptt of
Public Enterprises, Govt of India vide No. 2(39)/78-BPE(WC) dated 24th June 1988 and
21st Nov.,1990, are annexed.

8.0 ESCORT
As per present rules and where necessary, escort may be allowed by the Competent
Authority to accompany the patient.

9.0 TRAVELLING ALLOWANCE

9.1 As per existing rules, the patient and the escort will be allowed Travelling Allowance on
the scale of the employees entitlement. No Daily Allowance shall be admissible except as
provided in clause 6.3.
9.2 Taxi/Auto-rickshaw/Bus/Ambulance charges etc. from residence to Railway Station and
back at the Headquarters of the employee, and from the Railway Station to the place of
stay, as also from the place of stay to the hospital/specialist at the referred station both

7.2.8
 ways, depending on entitlement as per T.A. rules of the company, shall be admissible only
once. If however, the employee is required to make more than one trip for the purpose of
undergoing treatment, Taxi, Auto-rickshaw/Bus/Ambulance charges in such cases may be
reimbursed for each such trip depending upon entitlement as per T.A. rules of the
company on the recommendation of the hospital/Specialist treating the patient, with the
approval of the competent authority.
9.4 While actual ambulance charges shall be reimbursed on submission of receipt, taxi fare
limited to one mileage will be paid as per Travelling Allowance Rules.

10.0 PROCEDURE
10.1 Director (M&HS)/Head of the Medical Unit of Companys recognised hospital, after
thorough examination of the case, shall determine the hospital/medical institution where
the patient is to be referred.
10.2 After the approval of the Competent Authority, the concerned employee may be granted a
medical advance of Rs.3,000/=, duly sanctioned by the competent authority, subject to
adjustment against the final medical bill to be submitted within one month of completion
of treatment and return to headquarters, failing which the entire advance would be
recovered from the concerned employee subsequently.
10.3 In case of prolonged treatment, the advance shall be paid in suitable instalments.
10.4 The employee/patient at the referred hospital should obtain a certificate from the hospital
concerned, detailing the treatment given and vouchers for all reimburseable items, if
purchase, by the employee concerned, should be got countersigned by the hospital
authority where the treatment is undertaken.
10.5 In case a vacancy/accommodation is not available at the referred hospital, a certificate to
this effect may be obtained from hospital authorities and the patient may continue
treatment as an OPD patient in case indoor treatment is not necessary.
10.6 The list of hospitals/institutions where the employees and their dependent family members
may be referred for specialised treatment, is annexed. Additions/alternations in the list
may be done depending on requirements with the approval of MD-FSNL.

7.2.9
 LIST OF HOSPITALS/INSTITUTIONS WHERE THE EMPLOYEES
AND THEIR DEPENDENT FAMILY MEMBERS MAY BE REFERRED
FOR SPECIALISED TREATMENT

I. SAIL HOSPITALS

II. GOVERNMENT HOSPITALS / MEDICAL COLLEGE HOSPITALS & DENTAL

COLLEGE HOSPITALS

III. (A) CARDIOLOGY CASES :

1. G.B.Pant Hospital, New Delhi
2. Patel Chest Institute, New Delhi
3. AIIMS, New Delhi
4. Safdarjung Hospital, New Delhi
5. KEM Hospital, Mumbai
6. Jaslok Hospital, Mumbai
7. Nanavati Hospital, Mumbai
8. Bombay Hospital, Mumbai
9. K.J.Hospital, Chennai
10. Southern Railway Headquarter Hospital, Chennai
11. Christian Medical College & Hospital, Vellore
12. Shreechitra Tirumak Medical Centre, Trivandrum
13. Samaritan Hospital, Alwaye (Kerala)
14. SSKM Hospital, Kolkata
15. Calcutta Medical Research Institute Hospital, Kolkata
16. MLN Medical College, Allahabad
17. PGI, Chandigarh
18. Kasturba Hospital, (BHEL), Bhopal
19. N.M.Wadia Institute of Cardiology, Pune
20. Appolo Hospital, Chennai

(B) ORTHOPAEDIC CASES

1. Bombay Hospital, Mumbai
2. Nair Hospital, Mumbai
3. All India Institute of Physical Medicine & Rehabilitation, Mahalaxmi, Mumbai
4. Artificial Limb Centre, Pune

7.2.10
5. GR Medical College, Gwalior
6. Calcutta Hospital, Kolkata
7. SMS Medical College, Jaipur
8. West Bengal Spastics Society, Alipore Road, Kolkata
9. ALIMCO, Chennai

(C) CANCER CASES

1. Tata Memorial Hospital, Mumbai
2. Tata Cancer Research Institute, Mumbai
3. Chittaranjan Cancer Hospital, Kolkata
4. Thakurpukur Cancer Hospital, Kolkata
5. Cancer Centre and Welfare Home, Kolkata
6. AIIMS, New Delhi
7. Cancer Institute, Chennai
8. K.G. Hospital, Visakhapatnam
9. General Hospital, Trivendrum
10. Govt. Medical College, Waltair
11. M.Y. Hospital, Indore
12. Medical College Hospital, Amritsar
13. Medical College Hospital, Varanasi
14. Medical College Hospital, Patna
15. Medical College Hospital, Jabalpur
16. Medical College Hospital, Nagpur
17. SCB Medical Collge Hospital, Cuttack
18. Cancer Hospital, Jamshedpur
19. MP Shah Cancer Hospital, Ahmedabad
20. GSV Medical College Hospital, Kanpur

(D) NEUROLOGY CASES

1. General Hospital, Chennai
2. KJ Hospital, Chennai
3. CMC- Vellore
4. CMRI Hospital, Kolkata
5. Bangur Institute of Neurology, Kolkata
6. AIIMS, New Delhi
7. JJ Group of Hospitals, Mumbai

7.2.11
8. Central Institute of Neuro-Science, Bangalore
9. The Nagpur Neurological & Research Centre, Nagpur
10. SCB Medical College, Cuttack
11. Apollo Hospital, Chennai

(E) MENTAL CASES

1. Mental Hospital, Ranchi
2. Hospital for Mental disease, Ranchi
3. Mental Hospital, Trivendrum
4. Mental Hospital, Lumbini Park, Kolkata
5. Mental Hospital, Nagpur
6. Mental Hospital, Bangalore

(F) SKIN CASES

1. AIIMS, New Delhi
2. Jalma Institute of Leprosy Trg. & Research Centre, Agra

(G) EYE CASES

1. AIIMS, New Delhi
2. Gandhi Eye Hospital, Aligarh
3. Eye Hospital, Sitapur
4. Shankar Netralaya, Chennai

(H) NEPHROLOGY CASES

1. Jaslok Hospital, Mumbai
2. CMC Hospital, Vellore
3. PGI Chandigarh
4. AIIMS, New Delhi

(I) DENTAL CASES

1. Dr.Rafi Ahmed Dental College & Hospital, Kolkata

(J) TUBERCLOSIS CASES

1. TB Sanatorium, Ranchi
2. RK Mission TB Sanatorium, Ranchi
3. Mahadevi Birla TB Sanatorium, Ranchi

7.2.12
(K) MISCELLANEOUS
1. B.J.Wadia Hospital, Mumbai
2. G.T.Hospital, Mumbai
3. Tata Memorial Hospital, Mumbai
4. Madras General Hospital, Chennai
5. Railway Hospital, Chennai
6. Ramakrishna Mission Seva Pratisthan, Kolkata
7. Patna Medical College Hospital, Patna
8. Ranchi Medical College Hospital, Ranchi
9. Sanjay Gandhi Institute of Medical Science,Lucknow
10. Indira Gandhi Institute of Medical Science,Patna
11. Kothari Medical Centre, Kolkata
12. R.G.Stone Clinic, Delhi, Mumbai, Ahmedabad
13. Wockhardt Medical Centre, Kolkata
14. B.M.Birla Heart Research Centre, Kolkata

7.2.13
 No.2(39)/78-BPE (WC)
GOVERNMENT OF INDIA
MINISTRY OF PROGRAMME IMPLEMENTATION
DEPARTMENT OF PUBLIC ENTERPRISSES

Public Enterprises Bhavan

Block No. 14, CGO Complex
Lodi Road, New Delhi - 110003

Dated November 21, 1990

OFFICE MEMORANDUM

Subject : Policy to be followed with regard to reimbursement of medical expenses

incurred on medical treatment received abroad

The undersigned is directed to refer to Bureau of Public Enterprises O.M. No. of even
number dated 24-6-88 on the subject indicated above.
2. Representations had been received by the Govt suggesting that the overall ceiling of Rs. 3
lakhs prescribed in paragraph 8 of the above noted OM for claiming reimbursement of
expenses incurred by a PSE employee in respect of treatment received abroad including
the expenditure on atendant may be removed as it is not always possible to restrict such
expenditure within these limits.
3. The matter has been re-examined in all its aspects, it has been decided that public
enterprises hereafter can permit reimbursement of expenses incurred by their employees
in respect of the treatment received abroad, icnluding expenditure on an attendant, if so
certified by the competent authority, on production of necessary vouchers subject to the
scale of expenditure and eligibility of an official of Indian Foreign Service of the
corresponding grade in the ministry of External Affairs under any Assisted Medical
Attendance Scheme for the time being in force. Paragraph 8 of BPEs OM of even number
dated 24/6/88 would stand modified to this extent.
4. These orders will take effect from the date of issue. Past cases will be decided by the
Administrative Ministries concerned with the PSEs on merits provided they were approved
by the Standing Committee of the Ministry of Health & Family Welfare.
5. All Administrative Ministries/Departments of the Govt of India are requested to bring the
foregoing to the notice of the PSEs under their administrative control for their information
and immediate necessary action.

Sd/-
( Krishna Chandra )
Joint Director, Deptt of Public Enterp.

7.2.14
 No. 2(39)/78-BPE(WC)
Government of India
Ministry of Industry
Bureau of Public Enterprises

Block No. 14, CGO Complex

Lodi Road, New Delhi 110003

Dated 24th June, 1988

OFFICE MEMORANDUM

Subject : Policy to be followed with regards to reimbursement of medical expenses

incurred on medical treatment received abroad

The undersigned is directed to refer to the Bureau of Public Enterprises O.M. No. of
even number dated 10th March, 1983 on the subject indicated above.
2. The policy has since been reviewed. It has been decided that a public sector employee
could now be permitted to obtain medical treatment outside India for himself or for a
member of his family for any treatment specified below:
i) Cardio Vascular Surgery
ii) Kidney transplant
iii) Other organ transplants;
iv) Joint Replacement and surgery
v) Bone marrow transplant
vi) Certain types of medical and oncological disorders such as Lcudeamia and neo-
plastic conditions
vii) Micro vascular surgery and Neuro surgery
viii) Treatment with Laser which obviates the need of open surgery
ix) Treatment with Argon, Krypton and Yag Laser in Opthalmic cases
x) Extra Corporeal stone disintegration by ultra-sonic shock waves
The above list of treatment would be reveiwed from time to time by the Govt and such
additions and deletion as may be considered necessary would be notified.
3. A public sector employee desirous of availing of medical treatment outside India would
have to make an application to his management which would forward the same to the
Administrative Ministry incharge of the concerned enterprise. The Administrative Ministry
would prepare a paper for consideration of the Standing Committee constituted by the
Ministry of Health & Family Welfare, soliciting their clearance. The Committee comprises
of the following :
a) The Director General of Health Services in the Ministry of Health in the Central
Government

7.2.15
 b) The Director General of Armed Force Medical Service
c) The Director General of the Indian Council of Medical Reasearch and
d) The Joint Secretary in the Ministry of Health and Family Welfare (Convenor) for
purpose of considering and recommending to the Govt cases for medical treatment
outside India.
4. On receipt of the application for Medical treatment outside India, the Committee may, if
after dueconsideration, satisfy that the ailment or treatment can be treated only outside
India, issue a certificate to the concerned Administrative Ministry authorising the
management of the public enterprises concerned and conveying its approval on the
application moved by the employee. The management of the concerned public enterprise
would thereafter be authorised to incur necessary expenditure in setting its employee or
the member of the family of the employee treated outside India in accordance with the
procedure laid down by the Standing Committee.
5. In case where prior approval of the Standing Committee could not be obtained by the
concerned public enterprise/public sector employee due to circumstances beyond its/his
control, decision to authorise reimbursement of expenses on medical treatment obtained
outside India would be taken by the Govt of India provided the concerned employee
fulfills all other conditions relating to medical treatment outside India.
6. The Standing Committee may, if it is satisfied, that in the interest of the concerned public
sector employee or the member of his family, obtaining treatment abroad, it is essential so
to do, recommended one attendant to accompany the public sector employee or the
member of his family as the case may be and the expenditure so incurred would also be
eligible for reimbursement.
7. Where the Standing Committee, on receipt of an application for medical treatment outside
India, consider that adequate facilities for treatment of the ailment sought to be treated, is
available in any medical institution within India, the Committee shall record such a finding
and authorise treatment of such ailment in such medical Institutions within India
whereupon the cost of such treatment would be reimbursed. The Ministry of Health &
Family Welfare, in consultation with the Standing Committee, will notify from time to time
the names of such institutions alongwith ailmwnts and the types of treatment which are
available in such institutions.
8. Public Enterprises can permit reimbursement of expenses incurred by their employees in
respect of the treatment received abroad including expenditure on an attendant, if so
certified by the competent authority on production of necessary vouchers within an overall
ceiling of Rs. 3 lakhs.
Ministry of Petroleum and Natural Gas and Ministry of Agriculture too are requested to
bring the foregoing to the notice of the Public Enterprises under their administrative
control for their information and immediately necessary action.

Sd/-
(Krishna Chandra)
Joint Director, Bureau of Public Enter.

7.2.16
 ROUTINE MEDICAL CHECK UP OF EMPLOYEES

ABOVE 45 YEARS OF AGE

Employees of FSNL, who have attained age of 45 years will be sent to recognised hospitals

of the company for medical check up once in a year, as a Man Maintenance Programme, at Co.s
cost in order to ascertain their state of health for corrective actions wherever found necessary.

7.3.1
 MEDICAL INSURANCE COVERAGE SCHEME FOR
RETIRED EMPLOYEE AND THEIR SPOUSES

1. OBJECTIVE OF THE SCHEME

To extend medical benefits to the retired employees and their spouses.

2. COVERAGE
a) Retired employees and their spouses.
b) Those who have taken voluntary retirement and are not gainfully employed.
c) Those who cease to be in employment on acount of medical unfitness.
d) The spouses of an employee who dies in service.
The above mentioned categories of employees will make option as to whether they seek
covergae under this medical insurance scheme. It may be noted that the same option has
to be exercised by the employee and spouse.
All those retired employes and their spouses as referred in para 2 above and who opt for
this scheme, will hereinafter be reffered to as members.

3. SCHEME
The members will be covered through Mediclaim insurance admitted of the insurance
company. Salient features are given below.
BENEFITS
a) The members covered under the scheme can get themselves admitted in any of the
registered nursing homes / hospitals anywhere in India.
b) The members can get the hospitalisation benefits upto Rs. 2.00/ Lakhs per annum.
c) The policy also provides for domiciliary benefits upto Rs. 35,000/- per annum
( Domiciliary hospitalisation means medical treatment for a period of exceeding 3 days for
such illness / disease / injury which in the normal course would require care and treatment
at hospital / nursing home / clinic but actully taken whilst confined at home under
circumstances as prescribed in the standard mediclaim policy of the insurance company.
d) In case of expensive / prolonged treatment, an intreim / on account payment shall be
made as advance by the insurance company to the members.
e) There is no upper age limit for enrolment in the scheme.
f) Under this mediclaim policy, outdoor treatment facility is not available.
g) Any change / inclusion / exclusion made in the mediclaim policy by the insurance
company from time time will also be incorporated in the scheme.

7.4.1
 SETTLEMENT OF CLAIMS
a) All claims for reimbursement under the scheme will be settled by the insurance company
within a week of receipt of complete claim documents.
b) The hospital bills for such hospitalization will be paid by the members. They in turn will
send claims in the prescribed forms alongwith bills to the insurance company for
reimbursement of the claim. The addresses of office(s) of the insurance company, wherein
the claims would be settled would be notified by the Personnel Department from time to
time. The insurance company will settle the claims and send the bank draft / local cheque
to the memebers towards sttlement of the claims.
c) The insurance company has tie-ups with some big hospitals where members can get
admitted; and the hospital will send the bills directly to the insurance company for
settlement of claims. List of such hospitals will be given initially with the prospectus of the
policy. Any addition will be intimated subsequently.

4. PAYMENT OF PREMIUM FOR THE POLICY

The rate of premium payable by FSNL per member per annum will be worked out every
year on the basis of rates and terms & conditions of the concerned insurance agency.
Members who enrol in the scheme will be required to pay only registration fee initially and
a renewal fee annually thereafter. However, such employees can deposlt renewal fee for a
period of 5 years at the time of registration itself, on their option. This fee will be payable
in respect of the employee enrolling and additionally his/her spouse who may also enrol.
The amount of the fee will be notified from time time.
To start the scheme, the registration fee will be Rs.100/- per head per annum. The FSNL
Corporate Office will make payment of the lumpsum premium determined on the basis of
estimated number of retired / retiring employees and will raise appropriate debits against
the units concerned, depending on the actual number of members enrolled in each unit.

5. RENEWALS
Two clear months before the date of renewal of the policy, renewal notices shall be sent to
each individual by the Insurance company with a request to confirm / continue
membership in the scheme. The members then, shall contact respective plants / units with
renewal fee to be notified in due course. The Plant / unit will forward all such confirmation
to insurance company with a copy indicating number of such confirmation to FSNL
Corporate Office.

6. GRIEVANCE REDRESSAL
All Grievance relating to claim settlement will be addressed to the Insurance Company at
Bhilai / Raipur Office.

7.4.2
7. TENURE
This scheme comes into effect from 21.07.1992 and is liable to be altered / amended /
withdrawn at the discretion of Chief Executive without any notice & without assigning any
reason thereof.

8. OPERATING PROCEDURE
8.1 Procedure for enrolment For Employees Separated after 21.7.92
i) For all superannuating employees, concerned Personnel Officer will ask for their
option two months prior to their date of superannuation as per format given in
Annuxure-I Employees will have to give their option within 7 days. For those
employees who opt for the scheme, Personnel Officers will issue the prospectus and
enrolment form which the employee will submit alongwith Bank draft within 7 days.
Personnel Officer will send all enrolment forms to Dy. General Manager(P&A) along
with Bank draft. Before forwarding the Enrolment Forms, the Personnel Officer will
ensure that the employee has filled in all the columns of the Enrolment Forms.
ii) Other separation cases (i.e. VR/Death/Disablement)
In such cases, option form will be enclosed alongwith the final separation order
(excluding those whose direct relation gets employed by FSNL), which shall contain
the following endrosment.
Enclosed is option form for joining the FSNL Mediclaim Scheme. Please give your
option within 7 days. In case no option is received, it will be presumed that you are
not interested to join the Scheme.
Thereafter the same procedure will be followed as in superannuation cases.
The insurance cover shall commence from the date of acceptance of the enrolment
form by the Insurance Company who will send necessary policy number, identity
card etc., confirming enrolment to the memebers and send statement containing
enrolments to FSNL Corporate Office alongwith copy to Dy.GM(P&A). However
the liability of the Insurance Company to make payments against claim shall
commence after 30 days of acceptance.
8.2 Responsibility for providing assistance
At the Units all work relating to the Scheme shall be done by the respective Unit P&A
Heads, who will requisition for required number of prospectus and enrolment form from
Corporate Personnel Department.

7.4.3
 ANNEXURE-I

FERRO SCRAP NIGAM LIMITED

CORPORATE OFFICE, BHILAI
To,

Sri__________________________

P.No. / T.No.________________ Through :

Deptt._______________________

Section______________________

Sub : Option for joining FSNL Group Mediclaim Scheme.

You will be superannuating from the serives of FSNL w.e.f.___________. You are requested
to give your option within 7 days of receipt of this letter in case you wish to opt for the above
scheme. The option is to be given in the form given below:
In case you want to know the details of the Scheme, you can contact the undersigned
personally.
It may be noted that in case you do not give your option within 7 days, it will be presumed
that you are not interested to join the above scheme and you cannot opt for the scheme at later
date.

EXECUTIVE(P&A)/JM(P&A)/AM(P&A)/DM(P&A)

OPTION FORM

I hereby give my option to join the FSNL Group Mediclaim Scheme for Self & my spouse.
I may please be issued a prospectus and enrolment form.

Signature _______________________

Name __________________________

P.No./T.No. _____________________

Date : Deptt./Section ___________________

(To be filled up by spouse in case of death of the employee)

7.4.4
 RULES FOR GRANT OF SCHOLARSHIPS
TO THE CHILDREN OF EMPLOYEES WHO DIE
WHILE IN SERVICE

1.0 OBJECTIVE
To provide encouragement to and facilitate education of meritorious children of
employees, who die on duty and while in service.

2.0 SCOPE
Only legitimate children and step/adopted children, who are wholly dependant on the
deceased employees, are eligible for the scholarships, provided the income of the nominee
does not exceed Rs. 2500/- per month.

3.0 AMOUNT OF SCHOLARSHIP

3.1 (a) Scholarship of Rs. 250/- per month each will be awarded to students who join
degree courses in Engineering/Architecture, Medical, Veterinary and Agricultural
Sciences.
(b) Scholarship of Rs. 125/- per month each will be awarded to students who join
diploma courses in the areas mentioned in (a) above and also degree/diploma
courses in pure science, social science, commerce, business/Personnel Admn. and
humanities or higher secondary course in general or vocational course (i.e. 10+2
course etc).
(c) Scholarship of Rs. 50/- per month each will be awarded to students studying in High
School.

4.0 ELIGIBILITY
The scholarships are open to one of the children of employees who die on duty and while
in service. Students who are prosecuting higher/professional studies in the following
courses in any recognised College/University/Technical Institute, Higher Secondary School
and High School are eligible for the award of scholarship:
(a) Any degree or equivalent course in Engineering (including Mining/Architecture).
(b) Degree or diploma course in Agricultural/Veternary sciences
(c) Degree or diploma course in Medical Science including Dentistry.
(d) Degree courses in pure science/social science, Commerce.
(e) Degree or diploma courses in Business/Personnel Admn.
(f) Degree courses in humanities like languages, literature, economics, philosophy,
history etc.

7.5.1
 (g) Higher Secondary Course (i.e. 10+2 stage in general vocational study).
(h) High School
4.2 The scholarship will also be admissible to a student if he is admitted to the Armed Forces
Medical College provided the entire expenditure including tution and other fees and
boarding and lodging charges is borne by the student.
4.3 Students passing the high school examination whether joining pre-university or
intermediate, are also eligible for scholarship under the scheme.

5.0 CONDITIONS AND REGULATIONS

5.1 Only those students, prosecuting studies in recognised institutions will be granted
scholarships.
5.2 Applicants for the scholarship should have passed primary or the Indian School
Certificate/10th of 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 ward of deceased
employee belonging to SC/ST community, having 50% marks in the aggregate, will
qualify for the scholarship.
5.3 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 (vacations for which fees are not payable are
excluded).
5.4 Such scholarship will automatically be withdrawn in case the recepient fails to complete
successfully the academic year for any reasons whatsoever (except on medical grounds as
certified by a Regd. Medical Practitioner) and/or unsatisfactory report from the Head of
the Institution in which the recepient is studying.
5.5 No scholarship under the scheme will be allowed if the receipient is simultaneously
holding scholarship under any other scholarship scheme of the Govt/any other
organisation.
5.6 Applications for grant of scholarships will be invited by the Management in the month of
June/July every year and after scrutiny, scholarship will be granted by the Plant/Unit
management after approval by the competent authority (i.e. Managing Director).
5.7 The amount of the scholarship will be remitted by the management to the respective
Heads of Institutions in advance by quarterly instalments namely, July to Sept., Oct to
Dec., Jan. to March and April to June in an account to be specified by the Head of the
training Institution out of which the Head of the Institution will be able to draw at the rate
of Rs. 250/- or Rs. 125/- per month or Rs. 50/- as the case may be.
5.8 The Head of the Institution will be required to send to the Head of the Personnel Deptt
every six month report on the performance of the scholarship holder. The continuance of
the scholarship will depend upon such report as well as on the good conduct and
performance of the student at the training institution.

7.5.2
5.9 In all matters pertaining to this scheme, the decision of the management will be final and
no appeal shall lie against any decision of the management with regard to any aspect of
this scheme.

6.0 APPLICATION
Nominees of deceased employees as defined in para 2 and desirous of availing the facility,
may apply as and when applications are invited by the management in the prescribed
form.

7.0 TENURE
The company retains the right to alter, vary, amend or discontinue the scheme at its own
discretion without any notice. No grievance or representation in this behalf will be
entertained.

7.5.3
 ANNEXURE

APPLICATION FOR GRANT OF SCHOLARSHIP

1. Name of the deceased employee :

(as per para 2 of the scheme)

2. Designation :

3. Section/Branch/Division in which :
he was working.

4. Pay and Pay scale :

5. Nature of emplooyment, i.e., Permanent/ :

Temporary/Casual etc.

6. Name of the deceased employees son/daughter :

for whom scholarship is sought.

7. Examinations passed, together with name :

of the institution (If necessary, attach
separate sheet).

8. Whether the Institution is recognized/ :

not recognized.

9. Marks/Division obtained in each exam :

10. Nature of course in which presently admitted :

11. Date on which admitted/and term of course :

12. Name of the University/College/Institute :

in which admitted.

7.5.4
13. Whether the Institution is recognized/ :
not recognized.

14. Amount of Scholarship, i.e., Rs.250/-, :

Rs.125/-, Rs.50/- .

15. Academic year for which scholrship is sought :

16. Whether in receipt of any other scholarship, :

if so, under what scheme?

17. Is the receipient wholly dependent on the :

applicant?

18. Number of dependent school going children :

of the deceased employees.

19. Monthly income of the applicant on whom the :

student is wholly dependent.

I declare that the above information is correct. In support I enclose herewith certificate/mark
sheet of the child. I understand that management may stop forthwith the scholarship if any of the
particulars mentioned above is found incorrect or false.

Date : Signature of the nominee

of the deceased employee

7.5.5
 SCHEME FOR ASSISTANCE TOWARDS

FUNERAL EXPENSES

The following assistance will be provided to the next of kin of an employee who dies in harness:

1.0 Free transport for the funeral will be provided by the company if the funeral is held in the

Town/City where the deceased was employed at the time of his death.

2.0 The amount of Co.s assistance towards funeral expenses will be Rs. 2000/- (Rupees Two
Thousand only).

3.0 An Officer of the company shall be deputed to make arrangement for quick settlement of
the final dues.

The Deptt. Head through the Personnel Deptt will take the responsibility for making the

above payment and provide assistance. In case the next of kin of the employee is not
available, payment may be made to friends or neighbours who agree for making the
arrangement for the funeral, after obtaining proper receipt for the same.

7.6.1
 WELFARE SCHEMES

'EMPLOYEES FAMILY BENEFIT SCHEME

A) OBJECTIVES
To provide monetary benefit to the family in case of permanent total disablement and to
his family in case of his death while in service of the company.

B) DEFINITIONS
i) Scheme means Employees Family Benefit Scheme of FSNL.
ii) Employees shall mean any person (both executives and non-executives) in the
regular scale of pay in wholetime employment of the Company and opts for this
scheme.
iii) Superannuation in relation to an employee, means the attainment by the
employee of the age of superannuation as per the applicable terms of employment.
iv) Masculine shall include Feminine, wherever not specifically mentioned.
v) Permanent total disablement means disablement of permanent nature, as
incapacitates an employee for all work which he was capable of performing, at the
time of the accident resulting in such disablement; on certification by the approved
Hospitals of the Company, i.e., Authorised Hospitals.
Provided that permanent total disablement shall be deemed to result from every
injury specified in Part I of Annexure-III or from any combination of injuries
specified in Part-II thereof where the agreegate percentage loss of the earning
capacity, as specified in the said Part-II against those injuries, amounts to one
hundred percent or more. The provision of women's compensation Act/Rules in
vogue and as may be amended from time to time regarding determination of
Permanent Total Disablement, will be followed for extending the benefits under
Employee's Family Benefit Scheme for such case.
vi) Notional PF: it would consist of the employees own contribution over the period
of his service, interest accrued thereon and employers contribution to PF, interest
accrued thereon (i.e., as if there had not been any temporary/permanent withdrawal
over the period of his service), but will not include any voluntary contributions made
by the employee and the interest accrued thereon.
vii) Nominee : The person whom the employee nominates to receive the benefit as
envisaged in the Scheme in the event of his/her death.

C) COVERAGE
All Regular employees (Both Executives & Non-Executives).

D) ELIGIBILITY
Minimum One year of continuous regular service in the company and who die while in
service or suffer permanent total disablement.

7.7.1
E) EFFECTIVE DATE
This scheme is effective from 14-06-1996.

F) BENEFIT
On the separation of an employee from the service of the Company on account of death
or permanent total disablement, his nominee/the employee, as the case may be, on
depositing with the Company the entire PF and Gratuity amounts of the employee, would
be entitled to monthly payment equivalent to his basic pay plus DA last drawn. Such
monthly payment shall continue till the date on which the employee concerned would
have attained the age of superannuation, had the employee been in the service of the
company.
In case of
i) Employees who have effected temporary/permanent withdrawals from the PF,
AND / OR
ii) Who may like to retain part of such funds to meet their family commitments, the
monthly payments in the above cases will be reduced in the same proportion, which
the shortfall in the PF accumulation at the time of death/permanent total
disablement of employee bears to the total of gratuity and notional PF which would
have accrued had the withdrawal not been made.

For example:-
i) Gratuity Amount Due : Rs.1,00,000.00

ii) Notional PF, had the temporary/permanent : Rs.2,00,000.00

withdrawal not been made.

Rs.3,00,000.00

iii) Actual PF at the time of death : Rs.1,50,000.00

iv) PF and gratuity deposited with the Company : Rs.2,50,000.00

v) Amount of monthly payment as a percentage : 2,50,000 x 100

= 83.3%
of last pay + D.A. 3,00,000

The benefit under the scheme will be admissible from the date of separation of the
employee. The payment, however, to the employee/nominee shall, start from the date of
deposit of the amount as stated in the above clause.

7.7.2
G) DEPOSIT OF AMOUNTS (PF & GRATUITY)
Employee/nominee shall deposit PF and Gratuity amounts in one lumpsum with the
Company, within a maximum period of six months from the date of permanent total
disablement/ death.

H) PROVISIOIN OF MAKING GOOD THE SHORTFALL RESULTING

FROM WITHDRAWALS
Employee/nominee have the option of making good the shortfall between the notional PF
accumulation and actual PF as on the date of death/permanent disablement, which would
have accrued, resulting from withdrawals by depositing the difference to get full benefit
under the scheme, as one-time option at the time of volunteering for this scheme.

I) TERMINATION OF BENEFIT
i) On the normal date of superannuation of the separated employee, the monthly
payments under this Scheme would cease and the amount deposited with the
Company under this Scheme would be refunded to the employee or his/her
nominee, as the case may be. Under the Scheme, no interest on the PF and
Gratuity deposits will be admissible for the period of deposit.
ii) If the employee/nominee desires to permanently withdraw the PF and Gratuity
amount deposited with the Company under the Scheme at any point of time, he/she
will be allowed to do so. In such cases, the employee/nominee would cease to
receive the benefit, from the date of such withdrawal, under the Scheme and also
would not be entitled to any other benefit, whatsoever. No partial withdrawal of the
PF and Gratuity amount deposited with the Company would be allowed.

J) CONDITIONS FOR BEING A BENEFICIARY UNDER THIS

SCHEME
i) The Scheme is Voluntary.
ii) The employee/nominee will be eligible for the benefits under this Scheme only if the
PF and Gratuity amounts are deposited with the company within a maximum
period of six months from the date of permanent total disablement of the employee.
Otherwise, he/she will not be eligible to become a member subsequently to receive
benefit under this Scheme.
iii) The employee/nominee will be eligible to get the benefit under this Scheme only
after the loans/advances taken by the employee from the Company and other dues,
if any, to the Company, have been repaid by the employee/nominee in full.
However, the Company may at its discretion, allow the amount due to the
Company on account of loans/ advances etc. and interest thereon, availed by the
separated employee, to be deducted in monthly instalments from the payments to

7.7.3
 be made under this Scheme, subject to the condition that such recovery does not
exceed 50% of the monthly payment due to the employee/nominee.
iv) The employee/nominee will start receiving the monthly payment under this scheme
only after vacation of the companys quarter.

K) NOMINATIONS
i) All employees opting for the Scheme, will be required to make their nominations for
receiving the benefits under the Scheme in case of their death. Not more than one
nominee will be accounted. (Form no.02 EFBS).
The person nominated to receive the benefit under this Scheme shall be one of the
nominees under the PF Rules, for which the employee will be required to fill-up a
separate form specified for this purpose.
ii) An employee separated on account of permanent total disablement and joining the
Scheme, shall himself draw the amount under the Scheme notwithstanding any
nomination made by him. In the event of his death prior to the normal date of
superannuation, then his/her nominee shall receive the benefit under the scheme.
iii) In the absence of nomination, under the Scheme, the nomination made by the
employee for the purpose of payment of Provident Fund dues would be treated as
the nomination under this Scheme. In case of more than one nominee the first
nominee will be taken as nominee for the scheme. In case nomination of PF is also
not given, then the problem of nomination would be resolved as done in case of PF.
iv) The nominee of the deceased employee will be required to nominate the person
who will receive the benefit under the scheme in the event of his/her death.
v) In the event of the nominee predeceasing the employee, the employee will be
required to make a fresh nomination, within a period of One Month of first
nominees death.

L) MODALITIES
i) The deposits under the Scheme shall be made by the employee/nominee, as the
case may be, by an a/c payee cheque/bank draft alongwith an application on the
prescribed format. Alternatively, with the concurrence of the concerned PF Trust on
due settlement of his account with them, the amount may be directly transferred by
the Trust and similarly the gratuity amount may be got transferred from the Plant/
Unit for deposit under the Scheme by a letter of authority by the concerned
employee/nominee. C.O./Unit will issue a receipt for the deposit made by the
employee or his nominee, as the case may be.
ii) Personnel Department of Corporate Office will examine the eligibility of the
employee/ nominee concerned and will approve and notify the amount of monthly
payment and the period of payment under the Scheme on the basis of data/
certificates given in the application. Thereafter monthly payment shall be made by

7.7.4
 the Finance Department of the C.O./Unit concerned by a/c payee cheque after due
deduction of tax at source, wherever applicable, latest by the 10th of following
month.
iii) Final refund of the deposits made under this Scheme will be made on or after the
due date by the C.O./Unit on surrender and full discharge of the receipt by the
concerned employee/nominee. Due date means the date of notional retirement.
iv) All payments under the Scheme shall be made through accounht payee cheque
only.
v) The working of the Scheme would be reviewed from time to time, as per the
scheme.

M) MISCELLANEOUS
Where any doubt arises as to the interpretation of these rules, it shall be referred to the
Corporate Office for decision which would be final and binding.

N) REVIEW
The Company retains the right to amend, review or alter the provisions of the scheme at
any time.

7.7.5
 FORM NO.01 EFBS

FERRO SCRAP NIGAM LIMITED

APPLICATION FOR ADMISSION TO EMPLOYEES

FAMILY BENEFIT SCHEME

1. Name in Full :

2. Surname :

3. Address Temporary :

Permanent

4. Sex :

5. Date of Birth :

6. Mark of Identification :

7. Marital Status :

(Wheather bachelor, spinster, married or widower)

8. Fathers / Husbands Name :

9. Date of joining FSNL :

10. Personal Number :

11. Scale of Pay :

12. Department/Plant/Unit :

I agree to become a member and to be bound by the rules and regulations of the scheme in
force and as may from time to time be prescribed by the authorities specified in the rules.

Signature_________________________

Name ___________________________
Personal No. ______________________

Designation _______________________
Date ____________________________

7.7.6
 FORM NO.02 EFBS

FERRO SCRAP NIGAM LIMITED

NOMINATION FOR EMPLOYEES FAMILY BENEFIT SCHEME

I hereby nominate the person mentioned below to receive the benefit under the Employees
Family Benefit Schemes of FSNL as envisaged in its Rules & Regulations in the event of my death.
This is in supercession of any previous nominations made by me in this regard. I am also enclosing
attested photograph and append below the signature/LTI/RTI of the nominee duly attested by me.

SL. Name & Address Nominees Age of Contingencies on the Name and address,
NO. of the Nominee relationship, Nominee happening of which relationship of the
if any, with the nomination shall person(s), if any,
the member. become invalid on whom the right
of the nominee(s)
is conferred in the
event of his/her
pre-deceasing the
member.

1. ________________________ i) Certified that the above entries

Signature of Witness were made by me/read out to me.

Name : ________________________ ______________________________

Post Held : ________________________ Signature/LTI or RTI of the member

Station : ________________________ (As applicable)

Date : ________________________ Name of member in block

letters : ________________________

Post Held : _____________________

Date : _________________________

7.7.7
2. ________________________ ii) Certified that the above entries
Signature of Witness were read out by me to the member
and he/she has affixed his/her
Name : ________________________ LTI in my presence in accordance
(in full block letters) thereof.

Address : ________________________ Signature/LTI/RTI of the nominee:

________________________ (To be attested by the employee)
________________________
________________________

Post Held : ________________________

Station : ________________________

Date : ________________________

Passport size
Photograph
of the
Nominee

Note : The nominee should be one of the nominees nominated for the PF.
(See Rule (K) (i)).

7.7.8
 PART - I
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT

TOTAL DISABLEMENT

SL. Description Percentage of

NO. loss of earning
capacity

1. Loss of both hands or amputation at higher sites 100

2. Loss of a hand and a foot 100

3. Double amputation through leg thigh, or amputation through

leg or thigh on one side and loss of other foot 100

4. Loss of sight, to such an extent as to render the claimant

unable to perform any work for which eye-sight is essential 100

5. Very severe facial disfigurement 100

6. Absolute deafness 100

PART - II

LIST OF INJURIES DEEMED TO RESULT IN PARMENT

PARTIAL DISABLEMENT
Amputation cases - upper lims (either arm)

1. Amputation through shoulder joint 90

2. Amputation below shoulder with stump less than 8" from tip aoromion 80

3. Amputation from 8" from tip of acromion to less than 4.5" below
tip of elecrmnon 70

4. Loss of a hand or of the thumb and four fingers of one hand

or amputation from 4.5" below tip of olecranon 60

5. Loss of thumb 50

6. Loss of thumb and its netaoarpal bone 40

7.7.9
7. Loss of four fingers of one hand 50

8. Loss of three fingers of one hand 50

9. Loss of two fingers of one hand 30

10. Loss of terminal phalanx of thumb 20

Amputation cases - lower limbs

11. Amputation of both feet resulting in end-bearing stumps 90

12. Amputation through both feet proximal to the metatarso

phalangeal joint 80

13. Loss of all toes of both feet through the metatarso-phalangeal joint 40

14. Loss of all toes of both feet proximal to the prosximal

inter-phalangeal joint 30

15. Loss of all toes of both feet distal to the proximal interphalangeal joint 20

16. Amputatin at hip 90

17. Amputation below hip with stump not exceeding 5" in length
measure from tip of great trenchant 80

18. Amputation below hip with stump exceeding 5" in length from
tip of great tranchanter but not beyond middle thigh 70

19. Amputation below middle thigh to 5-1/2" below knee 60

20. Amputation below knee with stump exceeding 3-1/2" but exceeding 5" 50

21. Amputation below knee with stump exceeding 5" 40

22. Amputation of one foot resulting in end-bearing 30

23. Amputation through one foot proximal to the metatatso - phalangeal joint 30

24. Loss of all toes of one foot through the metatarso - phalangeal joint 20

Other injuries

25. Loss of one eye, without complications, the other being normal 40

26. Loss of vision of one end, without complication of disfigurement of

eye-ball the other being normal 50

7.7.10
 FORM NO.03 EFBS
(TO BE SUBMITTED IN DUPLICATE)

To
The Manager/DGM(P&A)
FSNL, Corporate Office, Bhilai.

Sub :- Payment under Employees Family Benefit Scheme.

Ref :- Circular No.FC/6263/97, dated 28-10-97.

I, Smt.___________________________________, widow of late __________

__________________________, Design. ______________________, P.No. ____________________,
Deptt.__________________, as the nominee of Ex-employee for Employees Family Benefit
Scheme/ for P.F. and I am willing to deposit in one lumpsum the P.F. & Gratuity amounts with the
Company after the same are settled by the Company.

The name of my husband late__________________________, P.No. _______________,

Design.__________, Deptt.__________, has been struck off from the roll of the company due to
sad demise w.e.f.___________, vide order No.________________, dated_____________. I,
therefore, request you to kindly permit me to deposit the PF & Gratuity amounts with the company
and may be paid monthly payment equivalent to Basic Pay and D.A. last drawn by my husband
OR as admissible as per Scheme.

In the event of my death the following person shall be my nominee to receive the
benefit due under the Scheme and to receive back the amount deposited with FSNL under the
Employees Family Benefit Scheme (Only one nominee will be eligible).

Name & Age of Nominees Contingencies Name and address

full the relation- on the happen- relationship of
address Nominee ship with ing of which the persons, if
of the the the nomination any, on whom the
nominee applicant shall become right of the
invalid nominee is
conferred in the
event of his/her
predeceasing the
applicant.

7.7.11
 FORM NO.03 EFBS

The amount may please be deposited in my Bank Account as given below:-

Bank Account No. : __________________________________________
Name of the Bank : __________________________________________
Address of the Bank : __________________________________________

I agree for deduction of Income Tax at source as per Rules.

Certified that the above entries have been made by me/ read out to me.

Signature of the Applicant

Date : (Name & Full Address)

__________________________
__________________________

__________________________

1. Signature of Witness Certified that the above entries

Name : _________________________
(full block letters)
Address : _________________________
_________________________
_________________________
Post Held : _________________________
Station : _________________________
Date : _________________________
were read out by me to the above
named applicant and he/she has
affixed his/her LTI or RTI in my
presence in accordance thereof.
____________________
Signature of Witness

2. Signature of Witness
Name : _________________________
(full block letters)
Address : _________________________
_________________________
_________________________
Post Held : _________________________ Nomination Registered
Station : _________________________ Sl.No._______, dtd.______
Date : _________________________ __________________
(P&A DEPARTMENT)
cc to
F&A Department.

7.7.12
 FORM NO.04 EFBS
TO BE SUBMITTED IN DUPLICATE

To
Manager / DGM(P&A),
FSNL, Corporate Office,
Bhilai.

Sub :- Payment under Employees Family Benefit Scheme.

Ref :- Circular No.FC/6263/97, dated 28-10-97.

My services have been terminated w.e.f.________due to permanent total disablement,

vide Order No._____________, dated ________. I am willing to deposit in lumpsum the PF &
Gratuity amount with the Company, after the same are settled by the Company. I therefore request
you to kindly permit me to deposit the PF & Gratuity with the Company and I may be paid
monthly payment equivalent to Basic Pay and D.A. last drawn by me OR as admissible as per
Scheme.

In the event of my death the following person shall be my nominee to receive the
benefit due under the Scheme and to receive back the amount deposited with FSNL under the
Employees Family Benefit Scheme (Only one nominee will be eligible).

Name & Age of Nominees Contingencies Name and address

full the relation- on the happen- relationship of
address Nominee ship with ing of which the persons, if
of the the the nomination any, on whom the
nominee applicant shall become right of the
invalid nominee is
conferred in the
event of his/her
predeceasing the
applicant.

7.7.13
 FORM NO.04 EFBS

The amount may please be deposited in my Bank Account as given below:-

Bank Account No. : __________________________________________
Name of the Bank : __________________________________________
Address of the Bank : __________________________________________

I agree for deduction of Income Tax at source as per Rules.

Certified that the above entries have been made by me/ read out to me.

Signature of the Applicant

Date : (Name & Full Address)

__________________________
__________________________

__________________________

1. Signature of Witness Certified that the above entries

Name : _________________________
(in full block letters)
Address : _________________________
_________________________
_________________________
Post Held : _________________________
Station : _________________________
Date : _________________________
were read out by me to the above
named applicant and he/she has
affixed his/her LTI or RTI in my
presence in accordance thereof.
____________________
Signature of Witness

2. Signature of Witness
Name : _________________________
(in full block letters)
Address : _________________________
_________________________
_________________________
Post Held : _________________________
Station : _________________________
Date : _________________________ Nomination Registered at
Sl.No._______, dtd.______
cc to
F&A Department.

7.7.14
 FORM NO.05 EFBS

FROM : _____________________ TO : _____________________

_____________________ _____________________
P&A Department. F&A Department.

REF. : _____________________ DATE : _____________________

Sub :- Payment under Employees Family Benefit Scheme.

Shri/Smt._________________________/ Widow of late ___________________, P.No./

T.No.___________, Disgn._________, Deptt._________________________, has requested for
permission to deposit the P.F. & Gratuity amounts with the company and for monthly payment
equivalent to Basic + D.A. last drawn by ex-employee. Smt.________________________________,
Widow of late _____________________________________________, is the nominee for Employees
Family Benefit Scheme/P.F.

The service of Shri_____________________________, Desgn._____________________,

P.No./T.No.________________, Deptt._________________________, has been terminated
w.e.f._________________________, vide order no._____________, dated___________________,
due to permanent total disablement.

OR

The name of Shri___________________________, P.No./T.No.______________,

Design.__________________________, Deptt.___________________, has been struck off the roll
w.e.f._____________, due to sad demise, vide order no._________________,
dated______________.

The following details may kindly be furnished :-

A) i) Notional amount of P.F. :

ii) Non-refundable loan drawn :

iii) Interest on the Non-refundable :

loan, had the loan not drawn

7.7.15
 FORM NO.05 EFBS

iv) Temporary PF Loan outstanding :

v) Interest on outstanding :
temporary P.F.loan

vi) Total of column. No.ii to v :

vii) Actual P.F.amount paid (i-vi) :

B) i) Total amount of gratuity :

admissible for payment

ii) Amount of outstanding dues :

recovered from total gratuity
payment

iii) Actual Gratuity amount paid :

column.i-ii)

C) Amount of Basic + DA last drawn :

by the deceased/disabled employee

D) Amount of monthly payment to be :

made to the Widow of the deceased
OR disabled employee, as per A & B
above, in accordance with the scheme

7.7.16
 FORM NO.06 EFBS

FROM : _____________________ TO : _____________________

_____________________ _____________________
P&A Department. F&A Department.

REF. : _____________________ DATE : _____________________

Sub :- Employees Family Benefit Scheme - Late Shri/Smt._________________________,P.No./

T.No._________, Design.EX_________________________, Deptt._____________.

Ref :- Your letter no._____________________, dtd._____________.

With reference to your letter cited above, the details of PF & Gratuity payment made/
payable to the above named ex-employee/ nominee of above named ex-employee are as under:-

A) i) Notional amount of P.F. :

ii) Non-refundable loan drawn :
iii) Interest on the Non-refundable :
loan, had the loan not drawn
iv) Temporary PF Loan outstanding :
v) Interest on outstanding :
temporary P.F.loan
vi) Total of column. No.ii to v :
vii) Actual P.F.amount paid (i-vi) :

B) i) Total amount of gratuity :

admissible for payment
ii) Amount of outstanding dues :
recovered from totalc gratuity
payment
iii) Actual Gratuity amount paid :
(column.i-ii)

C) Amount of Basic + DA last drawn :

by the deceased/disabled employee

D) Amount of monthly payment to be :

made to the Widow of the deceased
OR disabled employee, as per A & B
above, in accordance with the scheme

7.7.17
 FORM NO.07 EFBS

FERRO SCRAP NIGAM LIMITED

To
_______________________(The Nominee),
_______________________
_______________________
_______________________

Sub :- Employees Family Benefit Scheme :-

late/Shri______________________________, T.No._________,
Desgn. Ex-__________________________, Deptt.___________.

Ref :- Your application dated_________________________________.

Madam/Sir,

It is to intimate you that the details of PF and Gratuity payment made in respect of the
above named ex-employee are as under:-

Details of final payment of PF

1. Notional amount of PF :

2. Actual amount of PF paid / Payable :

Details of payment of Gratuity

1. Total amount of Gratuity admissible :

2. Actual amount of Gratuity paid/payable :

The benefit is admissible as mentioned in the Scheme on the basis of PF and Gratuity
amount deposited with the Company.

On depositing the above amounts, you will be paid an amount of

Rs.___________________ per month, till the normal date of superannuation of your spouse/
yourself, viz.,___________________________.

7.7.18
 FORM NO.07 EFBS

Accordingly, you are requested to deposit PF and Gratuity amount in Cash Section of
FSNL, Corporate Office, Bhilai, by A/c Payee cheque/Bank Draft within 10 days from the date of
issue of this letter and produce the receipt to this office. Out station cheques will not be accepted.
For depositing the amount you are requested to contact JM(F&A)/DM(F&A) and Finance Cash
Section of FSNL Corporate Office, Bhilai.

_____________________
Personal Department

cc to

DM(F&A)-C.O. : Please inform us in detail(in form no.08 EFBS) regarding amounts deposited
by the above nominee/employee, for further necessary action please.

7.7.19
 FORM NO.08 EFBS

FERRO SCRAP NIGAM LIMITED

To
______________________,
______________________,
P&A Department.

Sub :- Employees Family Benefit Scheme -

late/Shri______________________________________________,
P.No./T.No.__________, Desgn. Ex-______________________, Deptt._______________.

Ref :- Your letter no._____________________, dated____________.

With reference to your letter cited above, the details of PF & Gratuity amount
deposited by Smt.______________________, W/O late_____________________________,P.No./
T.No.__________, Designation ex-_____________________ of ____________________ Department
are as under:-

1. Amount of PF & Gratuity deposited :

2. A/c payee cheque no. :

3. Date on which the amount has :

been realized and credited
in FSNL account.

_____________________
F&A Department

cc to
AM(F&A)

(Note : changes may be made wherever required)

7.7.20
 FORM NO.09 EFBS

FERRO SCRAP NIGAM LIMITED

Sub :- Benefit admissible under Employees Family Benefit Scheme.

I. I, Shri/Smt.____________________, _____________________ (Relationship) of late Shri /

Smt.___________________________, Ex-______________ (Designation) of
________________________, (Department) has requested for payment of last Basic Pay
and D.A. drawn by Late___________________ or as admissible as per EFB Scheme.

II. The name of late Shri_______________________________, P.No./T.No.____________,

Ex-__________________________ (Designation) of _______________________
(Department) has been struck off from the rolls of the company due to his sad demise,
w.e.f._____________, vide order no.______________________, dated______________.
The date of birth of the deceased employee as per record is ____________. The
nomination given by the Ex-employee in respect of Employees Family Benefit Scheme
and PF are as under:-

NOMINATION FOR PAYMENT OF EFBS NOMINATION FOR PAYMENT OF P.F.

Name of Nominees Share Name of Nominees Share

the Relationship the Relationship
Nominee with the Nominee with the
Ex-employee Ex-employee

1.

2.

7.7.21
 FORM NO.09 EFBS

III. The details of Final payment of PF & Gratuity in respect of the Ex-employee are as
under:-

(A) DETAILS OF FINAL PAYMENT OF P.F.

1. Notional amount of P.F. as on the date of separation : Rs.________________

2. Non-refundable loan drawn : Rs.________________

3. Interest on the Non-refundable Loan, had the : Rs.________________

loan not been drawn

4. Temporary PF Loan outstanding : Rs.________________

5. Interest on outstanding temporary PF Loan : Rs.________________

6. Total of column No.2 to 5 : Rs.________________

7. Actual PF amount paid (1-6) : Rs.________________

B) DETAILS OF GRATUITY AMOUNT PAID

1. Total amount of Gratuity admissible for payment : Rs.________________

2. Amount of outstanding dues recovered from total : Rs.________________

Gratuity payment.

3. Actual Gratuity amount paid (Column 1-2). : Rs.________________

IV. The details of last Basic pay and D.A. drawn by the Ex-employee, Notional PF, Gratuity
amount admissible and PF and the Gratuity amount deposited against the same, are as
under:-

a) Basic Pay Rs.__________, D.A. Rs.__________ : Rs.________________

(Total last drawn)

b) Notional PF, had the temporary/permanent

withdrawal not been made : Rs.________________

c) Gratuity amount admissible : Rs.________________

d) total of b and c : Rs.________________

7.7.22
 FORM NO.09 EFBS
e) PF and Gratuity deposited with the
Company (R No.____________,dtd.________) : Rs.________________
This has been realized on ___________, as intimated by DM(Finance) Cash.

f) Percentage of amount deposited with the total amount of

Notional PF and Gratuity admissible :

= e/d x 100 = ____________% (Percentage to be calculated upto 2 digits)

g) Amount of monthly payment (Basic Pay + DA) x Percentage = Rs.________________

V) Shri/Smt.____________________________, nominee for EFBS/PF of Ex-employee, is

entitled for monthly payment @ Rs.______________ PM, w.e.f.__________ (i.e., the date
on which the amount deposited has been realized) till____________ (i.e., the date of
normal superannuation of Ex-employee) or till the date he/she withdraws the deposit
amount, whichever is earlier.

VI) Shri/Smt._________________________ has been allotted Membership

No.________________ under the EFB Scheme.

VII) None of the dependant of the ex-employee has been provided employment on
compassionate ground.

Finance may kindly concur the above proposal.

______________

(P&A Deptt.)

DGM(P&A)

GM(F&A)

7.7.23
 FORM NO.10 EFBS

FERRO SCRAP NIGAM LIMITED

FORMAT OF THE NOTE FOR PROCESSING THE CASE FOR FINANCE

CONCURRENCE

Sub :- Benefit admissible under Employees Family Benefit Scheme.

I. The services of Shri/Smt.____________________, T.No._______,

Designation________________, Deptt.________, have been terminated w.e.f._________,
due to permanent total disablement vide Order No._________________, dtd.________.
He/She has requested for payment of last Basic Pay and D.A. drawn by him/her or as
admissible as per Employees Family Benefit Scheme.

II. The date of birth of the Ex-employee as per records is ____________. The nomination
given by the Ex-employee in respect of Employees Family Benefit Scheme and PF are as
under :-

NOMINATION FOR PAYMENT OF EFBS NOMINATION FOR PAYMENT OF P.F.

Name of Nominees Share Name of Nominees Share

the Relationship the Relationship
Nominee with the Nominee with the
Ex-employee Ex-employee

1.

2.

7.7.24
 FORM NO.10 EFBS

III. The details of Final payment of PF & Gratuity in respect of the Ex-employee are as
under:-

(A) DETAILS OF FINAL PAYMENT OF P.F.

1. Notional amount of P.F. as on the date of separation : Rs.________________

2. Non-refundable loan drawn : Rs.________________

3. Interest on the Non-refundable Loan, had the : Rs.________________

loan not been drawn

4. Temporary PF Loan outstanding : Rs.________________

5. Interest on outstanding temporary PF Loan : Rs.________________

6. Total of column No.2 to 5 : Rs.________________

7. Actual PF amount paid (1-6) : Rs.________________

B) DETAILS OF GRATUITY AMOUNT PAID

1. Total amount of Gratuity admissible for payment : Rs.________________

2. Amount of outstanding dues recovered from total : Rs.________________

Gratuity payment.

3. Actual Gratuity amount paid (Column 1-2). : Rs.________________

IV. The details of last Basic pay and D.A. drawn by the Ex-employee, Notional PF, Gratuity
amount admissible and PF and the Gratuity amount deposited against the same, are as
under:-

a) Basic Pay Rs.__________, D.A. Rs.__________ : Rs.________________

(Total last drawn)

b) Notional PF, had the temporary/permanent

withdrawal not been made : Rs.________________

c) Gratuity amount admissible : Rs.________________

d) total of b and c : Rs.________________

7.7.25
 FORM NO.10 EFBS

e) PF and Gratuity deposited with the

Company (R No.____________,dtd.________) : Rs.________________
This has been realized on ___________, as intimated by DM(Finance) Cash.

f) Percentage of amount deposited with the total amount of

Notional PF and Gratuity admissible :

= e/d x 100 = ____________% (Percentage to be calculated upto 2 digits)

g) Amount of monthly payment (Basic Pay + DA) x Percentage = Rs.________________

V) Shri/Smt.____________________________, nominee for EFBS/PF of Ex-employee, is

entitled for monthly payment @ Rs.______________ PM, w.e.f.__________ (i.e., the date
on which the amount deposited has been realized) till____________ (i.e., the date of
normal superannuation of Ex-employee) or till the date he/she withdraws the deposit
amount, whichever is earlier.

VI) Shri/Smt._________________________ has been allotted Membership

No.________________ under the EFB Scheme.

VII) None of the dependant of the ex-employee has been provided employment on
compassionate ground.

Finance may kindly concur the above proposal.

______________

(P&A Deptt.)

DGM(P&A)

GM(F&A)

7.7.26
 FORM NO.11 EFBS

FERRO SCRAP NIGAM LIMITED

Ref. No. : FC/ / DATE : _____________

ORDER

1. Smt./Shri_______________________________, _________ (Relation) of

late___________________________, and nominee for EFBS/PF has deposited
Rs.________________, towards PF & Gratuity dues settled and paid in respect of
deceased employee late_____________________, T.No.________________,
Designation_______________________, Deptt._______________, whose name has been
struck off from the roll of the Company due to sad demise w.e.f.________, vide Order
No._____________, dtd._________, under EFBS in FSNL, vide Receipt No.___________,
dated_____________. The amount has been realized on _______________.

2. As per his/her application, dtd.________, Shri/Smt.___________________ (hereinafter

referred to as member), has been admitted as Member of EFBS and has been allotted
membership no._________ (to be quoted by the member in all future correspondence).

3. The details of amount deposited by the member and other relevant information are as
under:-

a) Basic Pay Rs._________ and D.A. Rs._________ = Rs.______________

last drawn by the deceased employee.

b) Notional PF as on the date of separation = Rs.______________

had the temporary/permanent withdrawal not
been made by him/her

c) Gratuity amount admissible = Rs.______________

d) Total of (b) and (c) = Rs.______________

e) PF and Gratuity deposited with the company = Rs.______________

(Receipt No._______, dtd._____________)

f) Amount of eligible monthly payment as a = Rs.______________

percentage of last Basic and D.A. drawn

( e/d x 100 = ___________ %) (Percentage to be calculated upto 2 digits).

7.7.27
 FORM NO.11 EFBS

4. The date of birth of deceased employee as per record is _________. Accordingly, the
member is eligible for monthly payment of Rs.________ (______% of Rs._______, i.e.,
total of Basic and D.A. last drawn by the deceased employee) w.e.f.________ till________
(i.e., the normal date of superannuation of the deceased employee) or till the date of
withdrawal of deposit amount by the member, whichever date is earlier.

5. The monthly payments will be subject to the statutory deductions like income tax etc., at
source.

6. The monthly payments after adjustments if necessary, will be remitted to the member
every month by an account payee cheque drawn in his/her favour and sent to him/her by
post.

OR

The monthly payment after adjustments, if necessary, shall be deposited in the Bank
account No._______ of member at _____________________________________________
________________________________ (Name & Address of Bank).

7. The member is required to furnish a certificate every 6 months that he/she is receiving the
payments duly attested by his/her Banker or any Gazetted/Govt.Officer, to DGM/
Manager(P&A), FSNL Bhawan, Central Avenue, Equipment Chowk, Post Box no.37,
Bhilai, 490-001, Dt.Durg, Madhya Pradesh.

8. No interest is payable on the amount deposited by the member for the period of deposit.

9. The amount of deposit will be refunded on maturity or otherwise earlier on receipt of

deposit certificate duly discharged by the member.

10. The membership will be governed by other terms & conditions of EFB Scheme of the
Company.

11. The member is required to inform any change in his/ her address.

This issues with the concurrence of Finance & approval of the Competent Authority.

__________________

P&A DEPARTMENT

Distribution
GM (F&A) | For needful please.

DM (F&A) Estt.Section - C.O. |

File
Serial

7.7.28
 FORM NO.12 EFBS

FERRO SCRAP NIGAM LIMITED

Ref. No. : FC/ / DATE : _____________

ORDER

1. Smt./Shri____________________________________________, T.No._____,
Desgn.______________________________, Deptt._____________, whose services have
been terminated due to permanent total disablement, w.e.f.________, vide Order
no._________, dtd.___________, has deposited Rs.________________, towards PF &
Gratuity dues settled and paid to him/her, under EFBS in FSNL, vide Receipt
No.___________, dated_____________. The amount has been realized on
_______________.

2. As per his/her application, dtd.________, Shri/Smt.___________________________

(hereinafter referred to as member), has been admitted as Member of EFBS and has
been allotted membership no._________ (to be quoted by the member in all future
correspondence).

3. The details of amount deposited by the member and other relevant information are as
under:-
a) Basic Pay Rs._________ and D.A. Rs._________ = Rs.______________
last drawn by the Member.

b) Notional PF as on the date of separation = Rs.______________

had the temporary/permanent withdrawal not
been made by him/her

c) Gratuity amount admissible = Rs.______________

d) Total of (b) and (c) = Rs.______________

e) PF and Gratuity deposited with the company = Rs.______________

(Receipt No._______, dtd._____________)

f) Amount of eligible monthly payment as a = Rs.______________

percentage of last Basic and D.A. drawn

( e/d x 100 = ________%) (Percentage to be calculated upto 2 digits).

7.7.29
 FORM NO.12 EFBS

4. The date of birth of the Member as per record is _____________. Accordingly, the member
is eligible for monthly payment of Rs.________ (______% of Rs._______, i.e., total of Basic
and D.A. last drawn by the Member) w.e.f.________ till________ (i.e., the normal date of
his/her superannuation) or till the date of withdrawal of deposit amount by the member,
whichever date is earlier.

5. The monthly payments will be subject to the statutory deductions like income tax etc., at
source.

6. The monthly payments after adjustments if necessary, will be remitted to the member
every month by an account payee cheque drawn in his/her favour and sent to him/her by
post.

OR
The monthly payment after adjustments, if necessary, shall be deposited in the Bank
account No._______ of member at ______________________ (Name & Address of Bank).

7. The member is required to furnish a certificate every 6 months that he/she is receiving the
payments duly attested by his/her Banker or any Gazetted/Govt.Officer, to DGM/
Manager(P&A), FSNL Bhawan, Central Avenue, Equipment Chowk, Post Box no.37,
Bhilai, 490-001, Dt.Durg, Madhya Pradesh.

8. No interest is payable on the amount deposited by the member for the period of deposit.

9. The amount of deposit will be refunded on maturity or otherwise earlier on receipt of

deposit certificate duly discharged by the member.

10. The membership will be governed by other terms & conditions of EFB Scheme of the
Company.

11. The member is required to inform any change in his/ her address.

This issues with the concurrence of Finance & approval of the Competent Authority.

__________________

P&A DEPARTMENT

Distribution
GM (F&A) | For needful please.

DM (F&A) Estt.Section - C.O. |

File

Serial

7.7.30
 FORM NO.13 EFBS

FERRO SCRAP NIGAM LIMITED

MEMBERSHIP ORDER

Sub :- Employees Family Benefit Scheme.

Dear Sir,

1. Please refer to your application dated___________, for joining Employees Family Benefit
Scheme, alongwith Cheque/Demand Draft No.__________________, dated ________, for
Rs._________ (Rupees________________________________) drawn in favour of Ferro
Scrap Nigam Limited.

2. We hereby inform you that you have been admitted to the said scheme and your
membership number is____________. Please quote this number for reference in your
future correspondence.

3. You are eligible for monthly payment @ Rs.__________, per month, commencing from
_________till_________(i.e., normal date of superannuation of the deceased/ disabled
employee) under the scheme.

4. The monthly payments will be subject to the statutory deductions like income tax etc.at
source.

5. The monthly payments after adjustments, if necessary, will be remitted to you every
month by an Account Payee cheque drawn in your favour and sent to you by post.

6. You are required to furnish a certificate every six months that you are receiving the
payments duly attested by your banker or any Gazetted/Govt.Officer.

7. No interest is payable on the amount deposited as referred to at point 1 above for the
period of deposit.

8. The amount of deposit will be refunded on maturity or otherwise earlier on receipt of the
deposit certificate duly attested by the member.

9. The membership will be governed by other terms and conditions of EFB Scheme, a copy
of which is enclosed.

7.7.31
 FORM NO.13 EFBS

10. You may keep us informed if there is any change in your address.

11. Other points, if any

12. Kindly acknowledge receipt of the letter.

Yours faithfully

for FERRO SCRAP NIGAM LIMITED

_________________________
(Signature/Design.)

cc to

DM(F&A) : With a request to please issue an A/c Payee Cheque drawn in favour of Shri/
Smt._____________________, for Rs.___________
(Rupees___________________________) by tenth of every month, starting
from__________ till_________(i.e., normal date of superannuation of the deceased/
disabled employee), unless advised otherwise.

Concerned HOD : For information

File

Serial

7.7.32
 LIFE COVER SCHEME
In case of death, an amount of Rs.62,000/= is payable to the nominee of the deceased
employee as benefit under the Life Cover Scheme.

SUPPLY OF UNIFORMS TO SCHOOL GOING

CHILDREN OF EMPLOYEES

Uniform is provided at Co.s cost, once in a year, to the school going children studying
upto Class V of Non-executive employees of the company, on the following scale:

a) FOR GIRLS : 2 nos Terrycot blouses

2 nos Terrycot skirts
1 pair Shoe with Socks (Girls)

b) FOR BOYS : 2 nos Terrycot pants

2 nos Terrycot shirts
1 pair Shoe with Socks

Uniforms are provided in case of those children who are studying in the schools
situated at the places where FSNL offices/Units are located.
The eligible employees are reimbursed an amount of Rs 485/- per child per academic
year, limited to a maximum of 3 children, instead of getting ready-made uniforms as per above
norms.
The employees who have joined FSNL on or after 02/09/1995, will get the above
reimbursement limited to a maximum of 2 children only.

7.8.1 / 7.9.1
 PAYMENT OF EDUCATION SUBSIDY

Reimbursement of Education subsidy incurred on education of children of the non-

executive employees is made as per the following norms subject to a maximum of 3 children per
employee:

CLASS / STANDARD RATES

A) Nursery, KG and
Std. 1 to Std.5 : Rs. 50/- p.m.

B) Std. 6 to Std. 9 : Rs. 60/- p.m.

C) Std. 10 to Std.12 : Rs. 75/- p.m.

Reimbursement shall be made on the actual expenses incurred, subject to the aforesaid
ceiling, whichever is minimum, subject to production of receipt from the school where the child is
studying.
Education subsidy will be reimbursed in case of those children who are studying in the
Govt. recognised schools situated any where in India.
The employees joining services of the company on or after 2/9/95, shall be eligible for
getting reimbursement of Education Subsidy at the above rates, subject to maximum of 2 children
only.

7.10.1
 PAYMENT OF CANTEEN SUBSIDY

Canteen subsidy is provided to the employees (both Executives & Non-executives) at

the rate of Rs. 390/= per month.

Canteen Subsidy is payable, based on attendance, as determined below :-

Period of unauthorised absence Eligibility of Canteen Subsidy

from duty in a month for that particular month
i) 5 days to 10 days Rs. 200/-
ii) 11 days to 20 days Rs. 100/-
iii) 21 days & above NIL

7.11.1
 WORKMENS COMPENSATION BENEFITS

If an employee is disabled due to accident arising out of and during the course of

employment; he gets full wages and D.A. from the date of accident till the employee is declared fit
by the Co.s authorised Medical Officer.

The compensation during the period of disablement is paid on the basis of the last

wages drawn immediately before the employee met with the accident.

Workmens compensation benefit is also paid to injury cases causing death or

permanent/temporary disablement arising during journey from residence to place of work and
back within one hour of the start or end of his duty hours provided that the accident takes place on

the normal route of journey to the place of work.

7.12.1
 GROUP PERSONAL ACCIDENT POLICY
Every year FSNL takes a Group Personel Accident Policy from an Insurance Company
for covering its Executives to avail benefit under the policy against any accident occuring out of
and in the course of their employment. In case any of the exectuvies of FSNL sustains any bodily
injury resulting solely and directly from accident caused by external, violent and visible means, the
sum assured will be paid to the concerned executive by the insurance company, provided that :-
a) If such injury shall within six calandar months of its occurence be the sole and direct cause
of the death of the insured person/s, the Capital Sum insured stated in the Schedule
hereto applicable to such insured person/s;
b) If such injury shall within six calendar months of its occurence be the sole and direct cause
of the total and irrecoverable loss of the sight of both eyes, or of the actual loss by physical
separation of two entire hands or two entire feet or of one entire hand and one entire foot
or of such loss of sight one eye and such loss of one entire hand or one entire foot, the
Capital Sum insured stated in the Schedule hereto applicable to such Insured Person/s.
c) If such injury shall within six calendar months of its occurrence be the sole and direct
cause of the total and irrecoverable loss of:-
(i) the sight of one eye, or of the actual loss by physical separation of one entire hand
or one entire foot, fifty percent (50%) of the Capital Sum insured stated in the
Schedule hereto applicable to such insured person/s;
(ii) total and irrecoverable loss of use of one hand or one foot without physical
separation, fifty percent (50%) of the Capital Sum insured stated in the Schedule
hereto applicable to such Insured Person/s.
Note :- For the purpose of clauses (b) and (c) above physical separation of a hand or
foot means separation of hand at or above the wrist and/or of the foot at or
above the ankle.
d) If such injury shall as a direct consequence thereof, permanently, totally and absolutely,
disable the insured person/s from engaging in being occupled with or giving attention to
any employment or occupation of any description whatsoever, then a lump such equal to
hundred percent (100%) of the Capital Sum insured stated in the Schedule hereto
applicable to such Insured Person/s.
e) If such injury shall within six calendar months of its occurrence be sole and direct cause of
the total and irrecoverable loss of use of the actual loss by physical separation of the
following then the percentage of the Capital Sum Insured applicable to such Insured
Person/s in the manner indicated against each item :-

7.13.1
 Percentage of Capital
Sum Insured

( i) Loss of toes - all 20

Great-both phalanges 5
Great-one phalanx 2
Other than Great, if more than one toe lost each 1

( ii) Loss of hearing - both ears 50

(iii) Loss of hearing - One side 15

(iv) Loss of four fingers and thumb of one hand 40

(v) Loss of four fingers 35

(vi) Loss of thumb - both phalanges 25

- one phalanx 10

(vii) Loss of Index finger

- three phalanges 10
- two phalanges 8
- one phalanx 4

(viii) Loss of Middle finger

- three phalanges 6
- two phalanges 4
- one phalanx 2

(ix) Loss of Ring finger

- three phalanges 5
- two phalanges 4
- one phalanx 2

(x) Loss of Little finger

- three phalanges 4
- two phalanges 3
- one phalanx 2

(xi) Loss of Metacarpals

- first or second (additional) 3
- third, fourth or fifth (additional) 2

7.13.2
f) If such injury shall be the sole and direct cause of temporary total disablement, then so
long as the insured person/s shall be totally disabled, from engaging in any employment or
occupation of any description whatsoever, a sum at the rate of one percent (1%) of the
Capital Sum insured stated in the Schedule hereto per week, but in any case, not
exceeding Rs.3000/= per week, in all Under Personal Accident Policies, covering such
Insured Person/s.
Provided that the compensation payable under the foregoing Sub-clause (f) shall not be
payable for more than 100 weeks in respect of any one injury calculated from the date of
commencement of the disablement and in no case shall exceed the Capital Sum Insured,
applicable to such Insured Person/s.

EXCEPTIONS
PROVIDED ALWAYS THAT :
The Insurance Company shall not be liable under this policy for :-
1. Compensation under more than one of the foregoing Sub-Clauses in respect of the
same period of disablement.
2. Any other payment to the same person after a claim under one of the Sub-Clauses
(a), (b), (c) or (d) has been admitted and become payable.
3. Any payment in case of more than one claim in respect of such Insured Person/s
under the Policy during any one period of insurance by which the maximum liability
of the Company specified in the Schedule applicable to such Insured Person/s
exceed the Sum payable under Sub-Clause (a) of this Policy to such Insured Person/
s.
4. Payment of weekly compensation until the total amount shall have been ascertained
and agreed.
5. Payment of compensation in respect of Death, Injury or Disablement of the Insured
Person/s (a) from intentional self injury, suicide or attempted suicide (b) whilst under
the influence of intoxicating liquor or drugs, (c) whilst engaging in Aviation or
Ballooning or whilst mounting into, dismounting from or travelling in any balloon or
aircrafts other than as a passenger (fare paying or otherwise) in any duly licensed
standard type of aircraft any where in the world, (d) whilst racing on wheels or
houseback, (e)whilst big game hunting, mountaineering, or being engaged in winter
sports, skieing or ice hocky, (f) directly or indirectly caused by veneral diseases or
insanity, (g)arising or resulting from the Insured Person/s committing any breach of
the law with criminal intent.
6. Payment of compensation in respect of Death, Injury or Disablement of the Insured
Person/s due to or arising out of or directly or indirectly connected with or traceable
to War, Invasion, Act of foreign enemy, Hostilities (whether war be declared or not),
Civil War, Rebellion, Revolution, Insurrection, Munity, Millitary or Usurped power,
Seizure, Capture, Arrests, Restraints and Detainments of all kings, prince and people
of whatsoever nation, condition or quality.

7.13.3
7. Payment of compensation in respect of Death of or bodily injury or any disease or
illness to the Insured Person/s:-
(a) directly or indirectly caused by or contributed to by or arising from lonising
raditions or contamination by radioactivity from any nuclear fuel or from any
nuclear waste from the compustion of nuclear fuel. For the purpose of this
exception combustion shall include any self sustaining process of nuclear
fission.
(b) directly or indirectly caused by or contributed to by or arising from nuclear
weapons material.
Provided also that the due observance and fulfilment of the terms and
condition of this Policy (which conditions and all endorsements hereon are to
be read as part of this Policy) shall so far as they relate to anything to be done
or not to be done by the insured and/or Insured Person/s be a condition
percedent to any liability of the Insurance Company under the policy.
8. Pregnancy Exclusion Clause :
The Insurance under this Policy shall not extend to cover death or disablement
resulting directly or indirectly caused by contributed to or aggravated or prolonged
by childbirth or pregnancy or in consequence thereof.

CONDITIONS
1. Upon the happening of an event which may give rise to a claim under this Policy,
written notice with full particulars must be given to the Insurance Company
Immediately. In case of death, written notice also of the death must unless
reasonable cause is shown, be given before interment/cremation and in any case,
within one calendar month after the death, and in the event of loss of sight or
amputation of limbs, written notice thereof must also be given within one calendar
month after such loss of sight or amputation.
2. Proof satisfactory to the Insurance Company shall be furnished of all matters upon
which a claim is based. Any medical or other agent of the Insurance Company shall
be allowed to examine the Insured person/s on the occasion of any alleged injury or
disablement when and so often as the same may be reasonably be required on
behalf of the Company and in the event of death to make a post mortem
examination of the body of the Insured person/s. Such evidence as the Insurance
Company, may from time to time require, shall be furnished and post mortem
examination report if necessary be furnished within the space of fourteen days after
demand in writing and in the event of a claim in respect of loss of sight, the Insured
Person/s shall undergo at the Insureds expenses, such operation or treatments the
Insurance Company may reasonably deem desirable. No sum payable under this
Policy shall carry interest.

7.13.4
3. The Insurance Company shall not be liable to make any payment under this Policy
in respect of any claim, if such claim be in any manner fraudulent or supported by
any fraudulent statement or device whether by the insured or by any person on
behalf of the Insured Person/s.
4 (a) The insured shall give immediate notice to the Insurance Company of any
change in the business or occupation of any of the insured person/s.
(c) The Insured shall, on tendering any premium for the renewal of this policy,
give notice in writing to the Insurance Company of any disease, physical
defect or infirmity with which any of the Insured Person/s have become
affected since the payment of the last preceding premium.

7.13.5
 FAREWELL BENEFITS TO RETIRING EMPLOYEES

1) As a token of the managements appreciation of the service of the retiring employee, the
value of Gift to the retiring employee will be as follows:

a) Gift worth Rs. 750/- in case of Non-executive employees.

b) Gift worth Rs. 1000/- for officers of E-0 to E-2 level.

c) Gift worth Rs. 1500/- for officers of E-3 & E-4 level.

d) Gift worth Rs. 2000/- for officers of E-5 and above.

2) A well designed Service Certificate will be presented to the retiring employee

commemorating the service of the employee to the company.

3) A scroll will be given to the retiring employee.

4) A copy of the group photograph taken on the occasion of farewell, will be properly
laminated and presented to the retiring employee on Co.s cost.

5) High Tea party @ Rs. 15/- per employee will be hosted by company on the occasion of
farewell.

7.14.1
 STANDARD NORMS FOR PROVIDING SAFETY
APPLIANCES TO THE EMPLOYEES OF
FERRO SCRAP NIGAM LIMITED
SAFETY APPLIANCES TO BE
S.No. FREQUENCY CATEGORY
SUPPLIED WITH SPECIFTCATION

1. a) BATA Industrial Shoe (no. 805-6007). 1 Pair per year Crane, Dozer
(Except Tur Mchst., Store Kpr., Security DPL Operators,
Guard., Matl Chaser & L/G). Separator Opr.,
Lancer/G.C.,
b) Gumboot with steel toe as per IS 1 Pair in every 2 A.F./T.K.,
specitication of Duckback make years. Electn., and
Helpers working
c) Fibre glass Safety helmer with cotton 1 no every 2 in Elect. Deptt.
chin strap as per IS : 2925. years or as Painter, Techn,
(Except Store Keeper, Securty Grd., requried, if Carpenter,
and Material Chaser) damaged. Sweeper/Clnr.,
Helpers, Welder/
d) PVC Microfilter Respirator as per Once in a year G.C., Mechanics
IS : 9473. (Except Store Kpr., S.G. & Tur./Mchnst
Matl Chaser) Store Kpr., S.G.,
Matl Chaser
e) Markin Cloth 1 Mtr per month
(Except S.G. & matl Chsr)
2. a) Hannd gloves, all leather 18" long Once in a month Lancer/G.C./
or as required, if Sep. Opr.,
damaged Welder/G.C.
b) Electrical high Voltage resistent Once in a year Eleetn., &
Russer Handgloves, as per I.S. Helper working
Specification in Electl. Deptt.
c) Canvas Handgloves with leather palm Once in a month Helper/Mechanic
3. a) Full ankle leather top direct moulded 2 Pairs per year Lancer/G.C.
safery boots with leather sole and steel
toes conforming to IS : 11226.
b) Safety Goggles, with Plain glass with 1 no. per year or Crane, Dozer,
side protection. as required, if DPL, Sep. Opr.,
damaged Turner/Machnst.,
Helpers &
Mechanics.
c) Safety Goggles with Plain glass without 1 no. every year. A.F./T.K.
side protection Electriciaan, Helpers
working in Elect.
Deptt., Painter,
Tech & Carpenter

7.15.1
 SAFETY APPLIANCES TO BE
S.No. SUPPLIED WITH SPECIFTCATION FREQUENCY CATEGORY

d) Safety goggles with Blue Glass with side 1 No. every year or Welder / G.C. &
protetion as per I.S. as required, if Rancer / G.C.
damaged

4. a) Bata Superstride Shor 2 Pairs per year Turner/Mchnst,

5. a) Bata Economy Live or equivalent, if 2 Pairs per year Storekeepers/ LMV

not available. Drivers, Security
Guards, Matl. Chaser

6. a) Rainy Shoe (Rubber ankle shoe of 1 Pair in every LMV Driver

Duckback make). 2 years.

7. a) Face shield with quick lock helmet 1 no. in every Lancer/G.C.

attcchment as per IS : 8521. 2 years, or as
required, if damaged.

b) Asbestos impragnated leather leg guard As & when

as per IS. specification. required.
c) Asbestos impragnated leather apron 1 no. in every
extending upto knee as per I.S. Specn. 5 years.
d) Asbestor impragnated leather arm As & when
guard as per I.S. Specifications. required.

8. Safety beit as per I.S. : 3521 Stores issue For employees

item, on loan basis. working at
Atleast 2 nos. to height.
be kept at each unit.

9. Safety Shoe, Handgloves, Safety Helmet As per requirement Casual/Temporary/

& other Safery appliances. & on Trainees
retumable basis,
but not exceeding
the frequency fixed
for regular field staff.

7.15.2
 STANDARD NORMS FOR PROVIDING UNIFORMS
TO THE EMPLOYEES OF FERRO SCRAP NIGAM LIMITED

UNIFORMS TO BE PROVIDED
S.No. WITH SPECIFICATION FREQUENCY CATEGORY

1. a) PANT : BSL make "Airmarshal" brand 2 Pairs per year All field staff.
(PV 67:33), Width : 145-147 Cms, excpet Lancer/ G.C.,
Shade : Black & Welder/G.C.
b) SHIRT : BSL make "Softwear plus"
brand, (PV 67 : 33), Width : 89 Cms.,
Shade : Sky Blue.
c) Shoe Polish (Big) 2 Tins per year Turner/Machist,
Store Keeper &
d) Shoe Brush 2 Nos. Per year Matl. Chasers.
2. PANT & SHIRT :- 2 Pairs per year Lancer/G.C. &
Welder/G.C.
Arvind Mills Jeans (Denim) cloth,
Quality No. 30499 (Blue Colour).
3. a) PANT : BSL make "Airmarshal" brand 2 Pairs per year Ministerial Staff
(PV 67:33), Width : 145-147 Cms, (Male).
Shade : Black
b) SHIRT : BSL make "Softwear plus" 2 Pairs per year
brand, (PV 67 : 33), Width : 89 Cms.,
Shade : Sky Blue.
c) SHOE : BATA Economy Live, or 1 Pair per year
equivalent, if not available,
d) SHOE POLISH (BIG) 2 Tins per year
e) SHOE BRUSH 2 Nos. per year
a) SAREE : Vimal make "Riasilbu" saree 2 Nos. per year Ministerial staff
Shade : Peacock Blue. (Female)
b) BLOUSE : Rubia 2x2 (1 Mtr.), of 2 Nos. per year
Mafatlal make, Shade : Peacock Blue.
c) CHAPPAL : 664-0901 "Mayfair" of 1 Pair per year
BATA, or equivalent, if not available.
4. a) FOR PANT & SHIRT 2 Pairs per year LMV Drivers &
BSL make "Airmarshal" brand (PV 67 : 33) Security Guards
Width : 145-147 Cms. Shade : KHAKHI
(Except LMV Drivers of Corp. Office)
b) Woolen Uniform (1 Pant & 1 High neck 1 Pair in
Coat) - Navy blue colour. alternate years.
c) Shoe Polish (Big) 2 Tins per year
d) Shoe Brush 2 nos. per year
e) "P" Caps (Except Security Guards) 1 no. per year

7.15.3
 UNIFORMS TO BE PROVIDED
S.No. WITH SPECIFICATION FREQUENCY CATEGORY

5. BSL make "Airmarshal" brand (PV 67:33) 2 Pairs per year LMV Drivers of
Width : 145-147 Cms, Shade : WHITE Corporate Office
6. a) "BB Caps" 1 no. per year All Security
b) Leinyard 2 lengths per Guards
year
c) Whistle 1 no. every year
d) Belt (Leather broad with steel buckle 1 no. every year
7. a) PANT : BSL make "Airmarshal" brand 2 Pairs per year Peon/Office
(PV 67:33), Width : 145-147 Cms, Attendants.
Shade : White
b) SHIRT : BSL make "Softwear plus" 2 Pairs per year
brand, (PV 67 : 33), Width : 89 Cms.,
Shade : White
c) Shoe : BATA Economy Live, or 2 Pair per year
equivalent, if not available,
d) Shop Polish (Big) 2 Tins per year
e) Shoe Brush 2 Nos. per year
8. a) Saree : Vimal make WHITE print saree 2 Nos. per year Female Office
Attendant
b) Blouse : Rubia 2x2 (1 Mtr.) of Mafatlal 2 Nos. per year
Colour : White.
c) Chappal : BATA Jubilee, or equivalent, 2 Pairs per year
if not available.
9. a) Rain Coat : "Duckback" make 'Regal' Once in 5 Years All categories of
Jacket with Hood & employees.
Legging (Pant & Shirt Model.)
b) Rain Cost : "Duckback" make "Parision" Once in 5 Years All female staff.
10. Bar Soap 6 Nos. per month All categories of
employees.
11. Nylon Socks of "Smart" brand of BATA, 2 Pairs per years. All employees
or equivalent, if not available (Ladies getting Safety
Nylon Socks for Female staff.) Shoes/Shoe.
including Female
Staff.

7.15.4
SCHEME FOR PROVIDING LEGAL ASSISTANCE TO THE
DRIVERS/DUMPER, CRANE OPERATORS ETC.,WHO MAY
BE INVOLVED IN ACCIDENTS DURING
THE COURSE OF EMPLOYMENT

Following Legal Assistance will be provided to all those Drivers/Operators and

employees authorized to drive companys vehicles, who may get involved in accidents arising out
of and in the course of employment and in the event of prosecution by the police for criminal
offence, provided that it is established by a fact finding committee that prima-facie the accident was
not caused due to negligence of the concerned employee:-

1. As soon as such accident occurs and it is brought to the notice of the Management, the
Management will immediately appoint Enquiry Committee(s) in order to enquire and
establish prima-facie whether the accident was caused due to the negligence of the
concerned employee or otherwise. If it is prima-facie established by the Enquiry
Committee that the accident was not caused due to negligence of the concerned
employee, then the legal assistance will be provided to the concerned employee.

2. The legal aid would be provided on a specific written request from the employee
concerned and the undertaking furnished by him in the format at Annexure-I.

3. The legal expenses that may be incurred by the company in the case of an individual,
would be recovered from the eployees salary on the basis of the undertaking submitted
by him, if he is found guilty by the Honble Court of Law, or any other authority in the
first trial.

4. Legal assistance would be provided through companys approved Lawyers.

5. Legal advise and appropriate briefing, if needed, would be provided by companys Law
Department to the individual concerned or any other officer/employee of the company
called by the Court to give witness to the case.

6. The employee concerned/witnesses, if any, will be granted Special Casual Leave for the
day/days of absence to appear in the court, for the case.

7.16.1
 ANNEXURE-I

To

Sub :- Undertaking to avail Legal Assistance.

Sir,

This is to inform you that on ____________, while Iwas in __________shift, and driving/
operating the vehicle/equipment no._______________________, an accident had takenplace,
causing injury to/death of ____________. The accident had taken place out of and in the course of
my employment.

I have been prosecuted by the Police/Summoned by the Trial Court at

__________________on____________. I would request you to provide necessary legal aid/
assistance to meto contest the case in the above court.

I hereby undertake to refund the entire legal expenses incurred by the Company in the
above case by providing legal aid to me, if I am found guilty by the first trial court or authorise the
company to deduct the amount from my salary or other dues payable to me, within 15 days from
the date of final judgement of the first Trial Court.

Thanking you,

Yours faithfully

__________
(Signature)

Name : ____________________
Desig : ____________________
T.No. : ____________________
Witness (FSNL Employees)

1. Signature : ______________________
Name : ______________________
Desig. : ______________________
T.No. : ______________________

2. Signature : ______________________
Name : ______________________
Desig. : ______________________
T.No. : ______________________

7.16.2
 RULES REGARDING LEASE HOLD ACCOMMODATION

1. ELIGIBILITY
a) Officers in the grade of E-0 and above.
b) Officers on deputation, if terms of deputation so specify.

2. PLACES WHERE PERMISSIBLE

All the places where FSNL Units/Offices are functioning.

3. FINANCIAL LIABILITY OF COMPANY

a) The ceiling rates for company leased accommodation will be as follows:
i) For unclassified cities, Executives will be eligible for lease hold accommodation @
22.5% of the maximum of their scales of pay subject to recovery of 10% of their
basic pay towards house rent.
ii) For classified cities, the rental ceilings for various categories of Executives at different
localities would be as under:
(Rs./month)

Scale Delhi/Mumbai/ Classification of cities House

Kolkata/ Rent
Chennai Other A B Class C Class Recovery
Class Rates

E-0 3100 2700 2100 1800 360

E-1 3100 2700 2100 1800 430

E-2 3300 2900 2300 2000 590

E-3 4200 3700 2800 2500 679

E-4 4200 3700 2800 2500 688

E-5 5000 4500 3500 3000 718

E-6 5600 5000 3900 3300 748

House rent recovery would be as indicated, or 10% on the basic pay, whichever is
less.
iii) Where employees are drawing deputation allowance, they would be required to
bear first 10% of the pay plus deputation allowance.
iv) If the rent of the accommodation leased is in excess of the ceiling rates indicated
above, the excess will be payable by the employees.

7.17.1
 v) The above limits are subject to the condition that the accommodation leased is in
the name of the company so that the accommodation can be allotted to other
officers in the event of the officer to whom the accommodation is allotted vacates
the leased accommodation.
b) The company will reimburse brokers fees, stamp duty and registration charges, if any,
incurred by the employee in respect of leased accommodation only once at his place of
duty. If, subsequently, the employee has to vacate the accommodation either at the
instance of the landlord or company, re-imbursement of brokerage, stamp duty and
registration charges, if any, would again be admissible.
c) The company would pay advance, if required, equivalent to the rent on the basis of
ceiling rates upto a maximum of three months, adjustable in not more than 12 equal
monthly instalments, the first instalments of the recovery commencing from the rent for the
first month of occupation of the house.
d) The executives having leased accommodation, would be entitled to reimbursement of
expenses towards repairs/maintenance, upto 1/12 of the annual lease rent, on production
of the certificate.

4. RETENTION OF LEASED ACCOMMODATION

The following procedure will be adopted for allowing the employees to stay in the co.s
leased accommodation/quarters (allotted to them while in service) after their
superannuation/transfer/ VR / Medical unfitness / Death or Resignation / Dismissal from
service.

S.No. PERIOD HOUSE ELECTRICITY APPROVING

RENT CHARGES AUTHORITY

1. Permissible period of two Normal Normal rate No approval

months in case of super- rent required -
annuation/Medical Prior intimation
Unfitness or death/ to be given
transfer and seven to the
days in case of Management
resignation/ dismissal.

2. Additional three months beyond Five times Market rate M.D.

the above permissible the normal
limit. rent

3. Second extension upto three Ten Market rate M.D.

months beyond (2) above times the
normal rent

7.17.2
a) No permission for extension of stay will be granted beyond the above period.
b) Any extension of stay beyond the approved limit should be obtained from the competent
authority atleast seven days before the expiry of the previous sanctioned limit.
c) The co.s quarter/leased accommodation is to be handed over to the appropriate authority
on or before the last day of authorised stay, failing which, monthly rent @ Rs. 1.50 per
Sq.ft. of plinth area of the quarters (including outhouse, garrage etc) , will be charged
alongwith the market rate of electricity charges. In addition, legal proceedings for eviction
may also be initiated.
d) Apart from the above, the company will be within its right to proceed with disciplinary
action and inflict punishment on employees as per co.s rules in transfer cases.
e) Final settlement dues will not be released till the quarter is finally vacated.

5. HOUSE OWNED BY RELATIVES / SELF-LEASE

The Company may for an employee take on lease accommodation owned by relations of
the employee as defined in the Conduct Rules of the Company and allot the same to the
employee, subject to the condition that the property is wholly owned by the relative and
the employee has no share in its ownership.
The Company may also take on lease the house owned by Executives or in which they
have share in ownership. The house so taken on lease shall be allotted to the owner
executive working in the company. This facility of company leased accommodation will be
applicable for those executives who are posted in specified localities, and not at the steel
plant locations.
The above allotments shall be subject to the following conditions:-
i) The rent of such houses shall be assessed by a Committee, consisting of a
representative of Corporate P&A and Finance Department.
ii) The normal procedure for lease is followed.
iii) No undue advantage accrues to the relative.
iv) The rent is fair and reasonable.
v) No brokerage would be payable.
Such cases would require prior clearance from vigilance angle.

7.17.3
 8.0

RETIREMENT BENEFITS
 RULES FOR RETIREMENT OF EMPLOYEES ON

SUPERANNUATION

The effective date of retirement of employees on superannuation will take effect from
the afternoon of the last day of month in which the employees concerned attains the age of

superannuation i.e. 60 years and employees shall get full months wages alongwith other benefits.

Employees whose date of birth is the first of a month shall retire from the service of the
company on the afternoon of the last day of the preceeding month in which they attain the age of

superannuation.

8.1.1
 VOLUNTARY RETIREMENT SCHEME - EXECUTIVES

1.0 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.

2.0 SCOPE
The Scheme shall apply to all regular/permanent employees of the Company.

3.0 ELIGIBILITY
3.1 An employee who has completed 10 years of service in the company and who is atleast
50 years of age or an employee who has completed 25 years of service in the Company
(with no age limit) will be eligible.
NOTE :
Period of training of Graduate Apprentice / Graduate Engineers / Management Trainee /
SOTs / JOTs appointed initially on consolidated stipend and subsequently absorbed in
regual grade in continuation of training, will also be taken into account for reckoning
length of service.
3.2 An employee who is due to retire on superannuation in the normal course within three
years of the date of application will not be covered by the Scheme.
NOTE :
These conditions may be relaxed by the Chairman in deserving cases.

4.0 COMPETENT AUTHORITIES

4.1 The authorities mentioned in 4.2 will be competent authority to accept or reject an
application for voluntary retirement under the Scheme.
4.2 The Competent authority in all cases will be Chairman or such other officer(s) to whom
the powers may be delegated.

5.0 BENEFITS UNDER THE SCHEME

An employee whose offer for voluntary retirement is accepted, will be entitled to the
following benefits:
a) Pay for the notice period of one month/three months as may be applicable to him under
his terms and conditions of service, plus leave salary for unavailed earned leave. The

8.2.1
 quantum of leave salary will not exceed the maximum limit to which earned leave can be
accumulated under the leave rules applicable to the employee.
b) Full Provident Fund contribution of the employer with acceretions thereto in the account
of the employee subject to provisions of the Provident Fund rules applicable.
c) Gratuity for each completed year of service or part 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.

6.0 PROCEDURE
An eligible employee may submit an application for Voluntary Retirement under the
Scheme to the Competent Authority thruProper Channel.

7.0 TENURE
The Scheme shall come into force with immediate effect 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/ammend the scheme in any
manner or to withdraw the scheme without any notice and without assigning reasons
therefor.

8.0 Notwithstanding any of the provisions of the scheme, the company, reserves to itself the
absolute right to reject any application for Voluntary Retirement there under without
assigning any reason therefor.

8.2.2
VOLUNTARY RETIREMENT SCHEME - NON-EXECUTIVES

1.0 OBJECTIVE
To achieve manpower optimisation for effective utilization of Human Resources,
improved productivity, cost reduction and quality of work life.

2.0 SCOPE
The scheme shall apply to all regular/permanent Non-executive of the Company, except
the Casual Workers.

Note
The Voluntary Retirement Scheme would be extended only to those employees whose
services may be dispended without detriment to the Company.

3.0 ELIGIBILITY
An employee who has completed 10 years of service or completed 40 years of age, is
eligible to seek Voluntary Retirement by a written request.

Note
The period of service rendered by an employee in other Public Sector Enterprise would be
taken into account for reckoning length of service in FSNL, provided cash equivalent to
Earned Leave, Provident Fund & Gratuity has been transferred by the concerned PSE to
FSNL.

4.0 COMPETENT AUTHORITY

4.1 The Competent Authority for Voluntary Retirement scheme will be M.D., FSNL, and will
have full discretion to accept or reject an application for Voluntary Retirement under the
scheme.

5.0 BENEFITS UNDER THE SCHEME

5.1 An employee whose request for Voluntary Retirement is accepted, will be entitled to the
following benefits :-

TERMINAL PAYMENTS
a) Balance in his Provident Fund Account payable as per the CPF regulation;
b) Cash equivalent of accumulated unavailed Earned Leave as per the rules of the
company (to be paid after adjustment of outstanding dues, if any);
c) Encashment of Half-pay leave, as per rules of the company;

8.2.3
 d) Gratuity for each completed year of service or part thereof, as admissible under
the Gratuity Rules (to be paid after adjustment of outstanding dues, if any);
e) Notice pay as per conditions of service applicable to him.

5.2 EX-GRATIA PAYMENT

In addition, an employee whose request for Voluntary Retirement is accepted,would be
entitled to an ex-gratia payment equivalent to 60 days salary for each completed year of
service or the salary for the number of months service left, whichever is less. Salary for the
purpose of VRS shall consist of basic pay and DA only and no other element.

5.3 TRANSFER BENEFITS

Transfer benefits for self & family, as admissible under the T.A. Rules on superannuation.
5.4 The compensation under VRS will be in addition to terminal benefits.

6.0 PROCEDURE FOR AVAILING V.R.

Written application for availing Voluntary Retirement is to be submitted by the concerned
employee to the concerned P&A Department, through Deptt./Unit Head, which will in
turn, be sent to Corporate Office for approval/acceptance of the competent authority.

7.0 WITHDRAWL OF APPLICATION

An employee who submits application for Voluntary Retirement under the scheme, can
withdraw the application before the management notifies in writing to him about the
decision to accept his application for V.R.

8.0 RE-EMPLOYMENT
An employee availing VR under this scheme will not be eligible for re-employment in
FSNL / its joint ventures.

9.0 TENURE
The scheme shall come into force as notified by the management from time to time.

10.0 RIGHT OF MANAGEMENT

Not withstanding any of the aforesaid provisions, the Scheme does not confer any right on
an employee to have his request for Voluntary Retirement accepted by the Management.
Management will have full discretion to accept or reject the request from any employee for
Voluntary Retirement.

8.2.4
 GRATUITY RULES

1.0 DEFINITIONS
In these rules, the following expressions will, unless excluded by or repugnant to their
context, have the following meanings:-
(a) Apprentice means a person who is declared to be an apprentice by the authority
specified in this behalf by the appropriate Government.
(b) Casual Employee means an employee who is engaged for work of a casual or
occasional nature.
(c) M.D. means the Managing Director of Ferro Scrap Nigam Limited.
(d) Completed year of service means qualifying service for one year.
(e) Emoluments for the purpose of these rules shall mean the pay including basic pay,
personal pay, special pay, charge allowance, non-practising pay and dearness allowance.
Emoluments last drawn by the employee be taken into account for the purpose for Rule
3.2.1 of the Gratuity Rules. There will be no ceiling as reckonable emoluments for
calculating gratuity.
Deputation allowance which an employee may have been drawing on the date of his
superannuation from the services of the company will not be included in his emoluments
for computation of Gratuity under the Rules of the company.
(f) Family shall include the following:
i) Wife/Husband of the employee.
ii) Sons, including step-sons and adopted sons.
iii) Unmarried and widowed daughter including step-children and adopted children.
iv) Brother below the age of 18 years and unmarried and widowed sisters.
v) Father
vi) Mother
vii) Married daughter; and
viii) Children of a pre-deceased son
(g) Qualifying service means uninterrupted service rendered in the company after
completion of 18 years of age except the period of service rendered as apprentice but
includes the period of training in case of Management Trainees, Sr.Operative Trainees
and Junior Operative Trainees engaged by the company. The period will also include
service which is interrupted by authorised leave and cessation of work, not due to the
employees fault.
(h) The Board of Director means the Board of Directors of the company.
(i) Superannuation means the retirement of the Companys employee from service on
reaching the age of Sixtyyears.

8.3.1
(j) Retirement means termination of service of the employees other than on
superannuation.

2.0 SCOPE
These rules shall apply to all employees of the company except casual employees,
Government Servants and others employed on deputation terms, Apprentices and Foreign
Technicians.

DECISIONS
These rules are applicable to all employees of the company except in so far as they may
be inconsistent with the provisions of the payment of Gratuity Act and Rules framed
thereunder and the provisions of the Memorandum of Agreement, which are reproduced:

RETIRING GRATUITY - COMPUTATION OF AMOUNT

(a) Retiring gratuity shall be calculated at the rate of half months wage (i.e. basic pay
plus DA) last drawn by the employees for every completed year of service.
(b) For service beyond 30 years, gratuity shall be calculated at the rate of one months
wage (i.e. basic pay plus DA) last drawn by the employees for every completed year
of service in excess of 30 years.
(c) Training period of the employees would be considered for the purpose of
computation of gratuity where it is followed by regular employee on successful
completion of the training. This shall not, however, include period of apprenticeship
under the Apprenticeship Act.
(d) If temporary/NMR employee puts in a minimum of 240 days work in a year, the
year will be counted for computation of gratuity provided that the employee gets
regular employments in continuation of his temporary period of service.
(e) For the purpose of computation of gratuity in continuation of service, requirement
of 240 days will be for the first year of service only and not for subsequent years.
(f) During the last year of service before retirement on attaining the age of
superannuation the gratuity will be given for full year, if service in the last year of
service is 180 days or more. If the service is less than 180 days in the last year of
service, proportionate payment of Gratuity will be made.
(g) In case of employees 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 calculated in the pay for
computation of Gratuity.

3.0 PAYMENT OF GRATUITY

3.1 Gratuity shall be granted to the employees of the Company for good, efficient and faithful
service and shall be admissible on termination of his employment after he has rendered
qualifying service for not less than five years on:

8.3.2
 (a) Superannuation
(b) Discharge on abolition of post
(c) Retirement or resignation after five years qualifying service in the company;
(d) Death or permanent incapacity due to bodily or mental infirmity as to which the
opinion of the authorised medical officer nominated by the company shall be final
and binding. In this case the condition regarding completion of qualifying service of
five years shall not be necessary.
3.2.1 AMOUNT OF GRATUITY
The amount of gratuity shall be equal to 15 days emoluments for each completed year of
service or part thereof in excess of six months subject to maximum limit of 20 months
emoluments or Rs. 3,50,000/- whichever is less provided that:
(a) In case of death, Gratuity shall be calculated as mentioned above and as given
below and higher of the two will be admissible:

(i) Death during the first year of service 2 months emoluments

(ii) Death after one year but before 5 years service 6 months emoluments

(iii) Death after completion of 5 years service 12 months emoluments

For the purpose of computation of gratuity under the Payment of Gratuity Act, 1972, a
month should be reckoned as consisting of 26 working days and the daily wage calculated
on this basis. In other words, 15 days wages would be computed in the following manner
in respect of both excutives and non-executives who qualify for payment of gratuity under
the rules:
15 days wages = Monthly wage x 15/26

(b) The Gratuity shall be admissible to an employee only to the extent of 50% of the amount
to which he is entitled under the rules, whose services are terminated for misconduct,
insolvency or inefficiency after five years of qualifying service. The company will have the
right to deduct from Gratuity payable to an employee who has been discharged or
dismissed for misconduct such amount as might be considered as loss caused due to
misconduct of the employee.
(c) The company will always have the right to deduct from the Gratuity payable and
admissible under these rules to an employee, such amount as may be due from the
employee.
(d) In case of re-employed military personnel, Government employees and employees of
other Public Sector Undertakings, Gratuity payable by the company plus Gratuity already
received by the employee from the previous employer, if any, shall not exceed 20 months
emoluments or Rs. 3,50,000/- whichever is less.
(e) Gratuity would not be paid to an employee unless the employee surrenders the Co.s
accommodation provided to him on his separation from the company.

8.3.3
3.2.2 NOMINATION FOR PAYMENT OF GRATUITY
Employees shall make nomination in the prescribed form these rules conferring on one or
more persons of his family the right to receive gratuity in the event of his death while in
service or after quiting service but before payment of the gratuity is made, indicating the
shares payable to each member. In the case of an employee having no family, the
nomination may be made in favour of person or persons or body of person, corporate or
incorporate. In the event of there being no nomination, the gratuity on death be paid in
the manner indicated below:
(a) If there are one or more surviving members of the family as (i) to (iii) in Rule 1 (f)
above, it shall be paid to all such members other than a widowed daughters in equal
shares.
(b) If there are no such surviving members of the family, but there are one or more
surviving widowed daughters and/or one or more surviving members of the family
as mentioned in (iv) to (viii) in Rule 1 (f) above, the Gratuity shall be paid to such
members, in equal shares.

4.0 APPLICATION FOR GRATUITY

Application for the grant of Gratuity shall be submitted in the prescribed form.

5.0 INTERPRETATION
In the event of any dispute as to the interpretation of these rules, the decision of M.D.,
thereon shall be final and binding.

8.3.4
 PROVIDENT FUND RULES OF FERRO SCRAP NIGAM
LIMITED STAFF PROVIDENT FUND

Rule. 1. Commencement :
These Rules may be known as FERRO SCRAP NIGAM LIMITED STAFF PROVIDENT FUND
RULES and will come into force with immediate effect.

Rule 2. Interpretation :
In these Rules unless there is some thing repugnant in the subject or context, the following
expressions shall the following meanings :
a) Act : Unless the context otherwise requires Act means the Employees Provident Fund
and Miscellaneous Provision Act, 1952.
b) CHILDREN' means legitimate children and includes adopted children, if the Board is
satisfied that under the personal Law of the member, adoption of a child is legally
recognised.
c) CONTINUOUS SERVICE means uninterrupted service under the company and
includes service , which is interrupted by sickness, accident whilst on duty, authorised
leave, strike which is not illegal, or cessation of work not due to the employees fault.
Note : The period of sickness or interruption due to an accident whilst in duty should be certified
by a competent authority under the medical benefits rules of the company.
d) EMPLOYEE means any person, who is employed for wages in any kind of work,
manual or otherwise in or in connection with the work of the company and who gets his
wages from the company.
e) EMPLOYER shall mean FERRO SCRAP NIGAM LIMITED and include any other
company which may purchase , amalgamate or otherwise take over FERRO SCRAP
NIGAM LIMITED.
f) EXCLUDED EMPLOYEE means :
i) An employee, who having been a member of the fund withdraws the full amount of
his accumulations of the fund under Rules 25.
ii) An employee employed by a contractor in any operation not directly connected with
any processing work carried out at the units/establishments of the company.
iii) An apprentice;
Explanation :- An apprentice means a person who according to the certified
Standing Orders applicable to the factory or establishment,is an apprentice or who is
declared to be an apprentice by the authority specified in this behalf by the
appropriate government.

8.4.1
g) FAMILY shall mean :
i) In the case of a male member , the wife , children , whether married or un-married,
dependent parents of the member and the widow and children of a deceased son of
the member;
ii) In the case of a female member ,the husband and the children of the member ,
dependent parents of the member or of the husband and the widow and children of
a deceased son of the member ; provided that if a member by notice in writing to
the Board expresses her desire to exclude her husband from her family , the
husband and his dependent parents shall no longer be deemed to be part of the
family for the purpose of these Rules , unless the member subsequently cancels in
writing any such notice.
h) FINANCIAL YEAR means the year commencing from First April every year.
i) The FUND shall mean FERRO SCRAP NIGAM LIMITED STAFF PROVIDENT FUND.
j) The TRUSTEE shall mean and include the trustees for the time being and from time to
time of the Fund .
k) 'MEMBER shall mean an employee who has been duly admitted to member-ship of the
Fund in accordance with the provisions of Rule 7 hereof and who remains a member of
the Fund.
l) NOMINEE or NOMINEES shall mean , in the event of a person having a family ,
any person belonging to his/her family and in the event of their absence , any person or
persons who may be appointed in writing by the member to receive the amount that may
become payable from the Fund to the estate of the member in the event of the members
death before the termination of his service with the company.Words of masculine gender
shall be taken to include the feminine and vice versa. Words of the plural number shall be
taken to include the singular number and vice versa.
m) PERIOD OF MEMBERSHIP means in respect of member the period being with the
day on which he was employed in the company where from he qualifies for the
membership of the Fund and ending with the date on which the amount standing to his
credit in the Fund is paid under Rule 25.
Provided that in case of a member whose accumulations in the past provident fund has
been transferred to the Fund under Rule 9, his period of the membership of the fund shall
be deemed to have commenced from the date of his employment in the previous
establishment/Company/Organisation as the case may be wherein he became a subscriber
of the provident fund from which his accumulations are transferred to the fund.

Rule 3. Administration Expenses :

The costs,charges and expenses of administering the fund and of the determination of any question
aris-ing under these rules or otherwise including all expenses incurred by the Trustees in the
discharge of their duties shall be chargeable to the Employer.

8.4.2
Rule 4. MANAGERS :
The Trustees shall have power to employ any person or persons (including any one or more of
their number and any one or more of the members of the fund) to act as Managers of the fund for
the purpose of carrying out any secretarial,legal,accounting,or other work which the Trustees may
consider necessary or expedient in connec-tion with the management of the fund and may from
time to time remove any person or persons so employed and appoint another or others in his or
their place.

Rule 5. BANKERS AND OPERATION OF BANK ACCOUNT :

Any Branch of State Bank of India at Bhilai or such other Scheduled Bank at other places as the
Trustees may from time to time select shall be the Bankers of the Fund. Sums may be withdrawn
from the Bank Account at any time by the Trustees for making payment and investing moneys in
accordance with these rules and the Government of India directives from time to time in this
regards and such accounts shall be operated on only by Cheque bearing the signatures of any two
of the Trustees who shall be nominated from time to time by the Trustees for that purpose and such
nomination shall be recorded in the Minute Book of the Board of Trustees Meeting.

Rule 6. MANAGEMENT OF THE FUND :

a) MANAGEMENT : The custody,control and management of the fund shall be vested in a
Board of Trustees, constituted according to the provisions of Rule 6(b).
b) TRUSTEES :
i) The number of the Trustees of the Fund shall not be less than six or more than
fourteen. Half of the number of the Trustees shall be nominated by the employer
from amongst the Officers employed in Managerial or administrative capacity in the
Company and the remaining shall be filled by election / nomi nation from amongst
members of the recognised / representative union. One of the Trustees shall be
nominated as Chairman by the Company. Term of the office of Board of Trustees,
shall be for a period of five years.
ii) No act or proceeding of the Board shall be deemed to be invalid by reason merely
on account of any vacancy or any defect in the constitution of the Board.
iii) If and whenever, any Trustee or Trustees shall die, resign, refuse or become
disqualified under the Indian Trust Act, 1882 or become incompetent or incapable
of the acting or shall permanently leave India or shall cease to be an employee of
the company, the vacancy there by caused would be filled in by direct nomination
by the company if the vacancy / vacancies relate to employers representa tive /
representatives, and in case of such vacancies relating to the employees
representatives, by election from amongst the members or if there is a recognised/
representative union by nomination by the recognised/ representative union as laid
down in Rule 6(b)(i) and such Trustee and Trustees shall hold office for the
remainder of the terms of the Office of the Trustee or Trustees in whose place they

8.4.3
 are nominated / elected. On every such appointment the fund of the FUND shall
ipso-facto vest in the new Trustee/ Trustees jointly with the surviving or continuing
Trustee/ Trustees.
iv) LIABILITY AND INDEMNIFICATION OF TRUSTEE :
In the discharge of their duties for the administration of the Fund, the trustees shall
be indemnified by the Fund against all proceedings, costs, damages, charges,
expenses, claims, demands, losses and liabilities caused otherwise than through their
or his negligence or fraud. The Trustees shall not be responsible for any breach of
trust committed by a Co- Trustee or by a Banker, Broker or other persons with
whom any of the assets/fund may have been deposited nor for any loss unless the
same happens through their or his own willful act or omission.
c) MEETING OF BOARD OF TRUSTEES :
The Board of Trustees subject to the provision in (i) below meet at such place and time as
may be appointed by the Chairman. Provided that the Board of Trustees shall meet at
least once in every quarter and four times in every financial year. The Chairman to
preside at meetings.
The Chairman may, whenever he thinks fit, and shall within fifteen days of the receipt of a
requisition in writing from not less than four members excluding the Chairman, call a
meeting thereof.
In the event of equality of votes on some issue, the Chairman shall exercise his casting
vote.
i) NOTICE OF A MEETING AND LIST OF BUSINESS :
Notice of not less than fifteen days from the date of posting containing the date time
and place of every ordinary meeting together with a list of business to be conducted
at the meeting shall be despatched by registered post or by special messenger to
each Trustee present in India.
Provided that when the Chairman calls a meeting for considering any matter which
in his opinion is urgent, a notice giving such reasonable time as he may consider
necessary shall be deemed sufficient.
ii) At any meeting of Trustees, four Trustees excluding Chairman shall constitute a
quorum provided at least two of them is from amongst the Trustees representing
employees.
Any decision taken in representing employees a meeting of the Trustees in which
quorum is present shall be deemed to be a decision of all the Trustees and shall be
final and binding on them.
The Chairman shall have a casting vote, in addition to and not instead of his own
vote as Trustee.
The decision of a majority at any meeting of the Trustees at which quorum is
present shall be final and binding on the Trustees. Where no casting vote is
exercised but the opinion of the representatives is equally divided and if any

8.4.4
 member wants the matter to be referred to, it shall be referred to the R.P.F.C.
having jurisdiction over the fund whose decision shall be final binding on all the
parties.
If at any meeting, the number of Trustees present is less than the required quorum
the Chairman shall adjourn the meeting to a date not later than fifteen days from
the date of original meeting, informing the Trustees of the date, time and place of
the adjourned meeting and it shall there upon be legal to dispose of the business at
such adjourned meeting, irrespective of the number of Trustees present.
d) TEMPORARY ABSENCE OF A TRUSTEE. POWER OF CO-TRUSTEES :
Trustees on temporary absence from India may appoint an Attorney (not being one of the
Co-Trustees) to act in his place but the appointment of such Attorney shall be terminated
immediately on the return of his principal to India.
If a Trustee fails to attend three consecutive meetings of the Board of Trustees without
obtaining leave of absence from the Chairman of the Board, he shall ceased to be a
Trustee.
Provided that the Chairman of the Board in exceptional cases may restore him to
Trusteeship.
In the absence of any specific provisions in these Rules the corresponding provisions of
the Employees Provident Fund Scheme, 1952 shall prevail mutatis mutandis.
e) MINUTES OF MEETINGS :
i) The minutes of a meeting of the Board of Trustees showing inter alia the names of
the Trustees present thereat shall be circulated to all Trustees present in India not
later than one month from the date of the meeting. The minutes shall thereafter be
recorded in a Minute Book as a permanent record.
ii) The record of the minutes of each meeting shall be signed by the Chairman after
confirmation with such modifications if any, as may be considered necessary at the
next meeting.
f) TRUSTEES CORRESPONDENCE :
All correspondence in relation to the management of the Fund may be conducted by
Chairman (B.O.T.) or in his absence and in lieu of him by any two Trustees on behalf of
all the Trustees.

Rule 7: MEMBERSHIP
i) Membership of the Fund shall be open to all employees of the Company except the
following categories of the employees:
a) Personnel of State and Central Govt. Departments and other industrial concerns
working with the Company on foreign service terms.
b) Pensioners and superannuated persons of State and Central Govt. Departments re-
employed by the Company unless provided in terms of their employment.

8.4.5
 c) Casual employees whether daily rated or monthly rated engaged for specific
periods, against adhoc jobs.
d) Excluded employees as defined in Rule 2(f).
Note: Persons coming under categories (d) above may, if they choose, be allowed
to subscribe to the Fund but on the stipulation that no contribution will be payable
by the Company under Rule 11 B of these Rules.
ii) Employees of the Company other than those governed by contracts providing for the
personnel to join the fund compulsorily from the first day of their service under the
Company and qualified for membership of the fund from the date of their service with the
Company.
The Companys contribution shall commence from the date on which they should
compulsorily join the fund.
iii) Every employee becoming a member must remain a member until he ceases to be
member of the Fund and must abide by all the Rules and Regulations from time to time in
force.
iv) The Board of Trustees shall promptly allot an account number to each employee
qualifying to become a member and shall communicate the account number to the
member through the employer. The account number once allotted to a member shall
remain valid for the total service period of the member with the company.

Rule 8 : NOMINATION
i) Upon becoming a member of the Fund each member shall send in writing to the Board of
Trustees a nomination in the prescribed proforma conferring on one or more persons the
right to receive the amount that may stand to his credit in the Fund in the event of his/her
death before the amount has become payable or having become payable has not been
paid to him.
Provided that in the case of a member having a family a nomination shall be made in
favour of one or more persons belong ing to his/her family. If the member has no family
on the date of his/her becoming a member of the Fund the nomination may be made in
favour of any person or persons, but if the member subsequently acquires a family, such
nomination shall forthwith be deemed to be invalid and the member shall make fresh
nomination in favour of one or more persons belonging to his/her family.
ii) If a member nominates more than one person under the above provision (i) he/she shall
specify in the nomination the amount or share payable to each of the nominee in such
manner as to cover the whole of the amount that may stand to his/her credit in the Fund
at any time.
iii) Every nomination shall be in such forms as the Trustees from time to time prescribe.
iv) A nomination shall take effect from the date it is handed over to the Board for registration.
No nomination shall be received for registration after the death of the member.

8.4.6
v) A member may any time cancel a nomination by sending a notice in writing to the Board
of Trustees, provided that the member shall along with the notice send a fresh nomination
in accordance with these Rules. Original nomination will stands cancelled only after the
revised nomination is found valid.
vi) When the nominee is a minor, the member shall name the person appointed to receive
the benefit on behalf of the minor in case the amount becomes payable before the minor
nominee(s) attends majority.
vii) The signature of the member in the nomination form shall be attested by two witnesses.
viii )In case the nominee predeceases the member, the right conferred on the nominee shall
revert to the member until fresh nomination is made.

Rule 9. TRANSFER FROM OTHER COMPANIES :

In the case of the transfer of the service of an employee (otherwise qualified for membership under
Rule 7 hereof) who is either a member of a Provident Fund covered by provisions of Employees
Provident Fund Act, 1952, or who is transferred from any of the companies or association of
persons which maintain a Provident Fund recognised within the meaning of Section 2(38) of the
Indian Income Tax Act, 1961, to the Company, the entire amount standing to his credit in the
former Provident Fund with such Company or association of persons (including the employers con
tribution and interest thereon) shall be transferred and paid to this Provident Fund by the employee
who shall become a member of this Fund.
Nothing in this Rule shall be deemed to provide that the amount of such transferred balance shall
be taken into account in determining the contributions to be made by the Company to the Fund
under Rule 11 B hereof so that the Company shall be under no liability whatsoever on such
payment or transfer to this Provident Fund to make any equivalent contribution to the fund.
Subject to as aforesaid, any such transferred balance shall be credited to the account of such
joining member and subject to the provisions of the Rules for the time being of the fund.
Notwithstanding anything contained in these Rules an employee who is already a member of
Employees Provident Fund Scheme by virtue of his service under any other employer shall be
admitted to the benefits of the Provident Fund by the Company from the date of his appointment
and in respect of such an employee the Fund shall accept his past Provident Fund accumulation.

Rule 10.
A: THE FUND SHALL CONSIST OF :-
a) Contribution by the members out of their salary or wages or other emoluments as
provided in Rule 11 A.
b) Contribution by the Company under Rule 11 B.
c) Interest / commission etc. which investments may yield from time to time.
d) Balances transferred from other provident fund where such transferred are permitted
by this Rules,

8.4.7
 e) Any contributions or donations made by the Company and
f) Any capital gains arising from sale, exchange or transfer of Securities.
B: The assets of the Fund and its administration shall constitute a Trust which shall be
irrevocable save with the consent of all the beneficiaries of the Fund and RPFC save in
cases prescribed by Fourth Schedule Part A of the Indian Income Tax Act, 1961. No
Moneys belonging to the Fund in the hand of the Trustee shall be recoverable by the
Company under any pretext what so ever nor shall the company have any lien or charge
of any description on the same.
C: INVESTMENT OF FUNDS
The Trustees shall from time to time deposit all moneys received by them into the savings
bank account with State Bank of India or such other scheduled bank as they shall from
time to time determine.
All moneys to the credit of such account shall be dealt with in accordance with these Rules
and such account shall be operated only by Cheque bearing the signature of any two
authorised Trustees for this purpose.
The moneys of the Fund not immediately required for the purpose of Fund shall within a
period of 2 weeks from the date of receipt of contribution from the employer, be invested
in accordance with the Notification issued by the Central Government / Central Provident
Fund Commissioner from time to time.
D: REALISATION OF INVESTMENT
The Trustees may from time to time sell securities held by the Fund for raising such sums
as may be required for making obligatory payments.

Rule 11 : CONTRIBUTION TO THE FUND :

A : MEMBERS CONTRIBUTION
i) The emoluments qualifying for calculating the contribution to the fund shall be,
a) Pay and Dearness Allowance (shall include the cash value of food concession and
retaining allowance , if any)
b) Pay shall include Special pay, Personal pay, Deputation pay and non practicing
pay/Allowance
c) Subsistence Allowance payable to an employee during the period of the suspension
should be included in the term emoluments qualifying for calculating the
contributions to the fund.
ii) The compulsory contribution of a member shall be 12% (w.e.f 22nd Sept 97 vide o/o no.
FC/6188/97 dtd.23-10-97) or other such percentage as may be decided from time to time
of the emolu ments while on duty or the leave salary or emoluments drawn while on leave
corresponding to the categories mention in (i) above as prescribed by the Act.

8.4.8
iii) Voluntary contributions :
Explanation :
However, a member may, if he so chooses, subscribe at a rate more than prescribed rate
without any limit as voluntary contribution for which company will not pay any matching
contribution. The amount of subscription shall be calculated to the nearest Rupee, 50
paise and above being rounded off to the next higher rupee and less than 50 paise will be
ignored. A member who is permitted to contribute to provident fund an amount exceeding
10% (Ten) of his total monthly Basic Pay and D.A shall be allowed to change the rate of
voluntary contribution on his applying for such change in contribution only at intervals of
a minimum period of one year.
B : COMPANYS CONTRIBUTIONS
The companys contributions for a member shall be 10% or such percentage of the
emoluments qualifying for the employees contributions under Rule 11 A(ii) above. The
amount of companys contribution shall be calculated to the nearest rupee, 50 paise or
more being counted as a next rupee and less than 50 paise being ignored.
The companys contribution for a member during his period of leave shall be based on his
leave salary or wages and no contribution shall be made by the company for any period
of leave for absence without pay. The company shall not contribute any thing on the
contribution made by the member more than 10% or other prescribed percentage of the
emoluments .
The members contribution shall be deducted from the salary and wage bill, as the case
may be, and made available to the Trustee alongwith the companys contributions for
credit to the individual account of the member before the 15th of the month following that
in which the members contribution is deducted from his salary or wages.
Provided that if a member quits the service or dies during any month, the companys
contribution for the period between the close of the preceding month and date of the
quitting the service or the casualty as the case may be shall be made available to the
Trustee within a fortnight after the event for credit to the member ac count alongwith the
members contribution deducted from his wage or salary.

Rule 12 : CREDITING THE INTEREST TO THE MEMBERS ACCOUNTS:

INTEREST : Calculation of interest shall be based on progressive monthly bearing balance as
amended since 1993-94.
The calculation for crediting the interest will be made as follows :
i) As on 31st March of each year, the account of fund shall be closed.
a) Interest shall be credited to the members account on monthly running balance basis
with effect from the last day in each year in the following manner:
b) on the amount at the credit of a member on the last day of the preceding year, less
any sums withdrawn during the current year interest for 12 months;

8.4.9
 c) on sums withdrawn during the current year interest from the beginning of the
current year up to the last day of the month preceding the month of withdrawal;
d) on all the sums credited to the members accounts after the last day of the preceding
year - interest from the first day of the month succeeding the month of credit to the
end of the current year;
e) The total amount of interest being the sum of (i), (ii) and (iii) above shall be
rounded to the nearest whole rupee (50 paise and above counting as the next
higher rupee and less than 50 paise ignored)
The credit for the interest shall be afforded separately under companys contribution
and members contribution. The rate of interest payable to a member for any year
shall not be lower than the rate declared by the Central Government for the year
under the Employees Provident Fund Scheme, 1952. Deficiencies if any, shall be
made good by the company, if surplus available is not sufficient for crediting interest
on monthly running balances in the members account at a rate declared by the
Government.
ii) When the amount standing at the credit of a subscriber becomes
a) payable to a member in the middle of the financial year, interest shall be credited up
to the end of the month preceding that in which payment is made at the rate
applicable for that year.
b) transferable to any other recognised fund, interest shall be allowed in the same
manner as mention in above para (a).
iii) When the amount is received in the account of any employee on transfer from any other
recognised Provident Fund during the course of a year, interest shall be allowed for the
year on the transferred balance from the 1st of the month in which it is received or in case
the amount is received from the transferor in the same month upto which they have
allowed the interest, it will be allowed from the 1st of the month following the month in
which the amount is received till the end of the year.

Rule 13 : INSPECTION OF THE CARDS BY MEMBERS :

Any member making a request in this behalf to the Board of Trustees through the management
shall be permitted to inspect his card himself or to have the same inspected by any person duly
authorised by him in writing within seven days of making such request provided that no such
request shall be entertained more than once every six calendar months.

Rule 14 : RESPONSIBILITIES OF THE TRUSTEES :

The function and responsibility of the Trustees shall be to manage the fund according to these
Rules.

8.4.10
Rule 15 : CONTROL OF FUND VESTED IN TRUSTEES :
In the matter of any dispute arising under these Rules and regulations as to the interpretation
thereof, the decision of the Trustees shall be final and binding and such decision shall be recorded
and signed by the Trustees in a Special Minute Book to be maintained for the purpose. If however
the B.O.T have any doubt about interpretation of any clause of this Rules it may refer the matter in
the first instance to the Chairman/ M.D. of the Company whose decision should normally be
acceptable to the Board of Trustees if not the mater shall be referred to the RPFC whose decision
shall be final & binding.

Rule 16 : ACCOUNTS OF THE FUND :

The following accounts shall be maintained in the books of the Fund :
i) an account of each member in the form prescribed in Rule 74 of the Indian Income Tax
(Recognised Provident Fund) Rules consisting of the members contributions, companys
contribution, interest accrued, withdrawals, repayments, etc. which shall show:
a) the members subscription/contributions,
b) the employers subscription/contribution,
c) interest accrued,
d) any amount transferred from his previous employer having a Recognised Provident
Fund,
e) any amount paid / refunded against withdrawal.
ii) a revenue account showing the credits on account of interest from investments and other
income received or accrued up to 31st March of each year .
iii) an investment realisation and valuation account showing the credits on account of profits
realised from sale of investments, surplus at the annual valuation of investment, at cost or
proper market value which ever is lower and debits on account of losses realised on sales
and annual valuation on the same basis as indicated above;
iv) the investment account showing particulars of investment; and
v) any other account which the Board of Trustees may decide to open for the correct
exhibition of the transactions of the Fund

Rule 17 : AUDIT OF ACCOUNT

B.O.T shall have the accounts of the Fund audited every year by a person / Firm, authorised to
audit accounts of a Company under Section 226 of the Companies Act 1956.

Rule 18 : STATEMENT OF ACCOUNTS TO MEMBERS:

As soon as possible after accounts have been audited as aforesaid the Trustees shall furnish to each
member a statement of the amount shown by the books of the Fund standing to the credit of his
account as at the date of such Balance Sheet and Revenue account. Such statement shall be
accepted as correct and binding on the member save that if any manifest error shall be found

8.4.11
therein and notified by the member to the Trustees in writing within two months of the receipt of
the statement.

Rule 19 : CIRCUMSTANCES IN WHICH WITHDRAWALS MAY BE

PERMITTED
The qualifying period for eligibility of any loan whether refundable or non-refundable under this
rule will be three years inclusive of period of membership of previous trust in case of the members
whose PF accumulations have been transferred from the previous trust to this trust.
(1) Withdrawals by employees may be allowed by the trustees of the provident fund in the
following circumstances:-
(a) to pay expenses incurred in connection with the illness of the employee or member
of his family.
(aa) meeting the cost of higher education, including where necessary, the traveling
expenses of any child of the employee actually dependent on him in the
following cases, namely:-
(i) education outside India for academic, technical, professional or vocational
courses beyond the (matriculation) stage, and
(ii) any medical, engineering or other technical or specialised course in India
(beyond the matriculation state)
(b) to pay for the cost of passage to a place out of India of an employee or any member
of his family:
(c) to pay expenses in connection with marriages, funerals or ceremonies, which by the
religion of the employee it is incumbent upon him to perform.
(d) to meet the expenditure on building a house, or purchasing a site or a house and a
site and also on additions, substantial alterations or improvements necessary to a
house
Provided that the employee furnishes an undertaking to the trustees not to
encumber or alienate such house or site or house and site, as the case may be:
(i) Provided further such house or site or such house and site shall not be
deemed to be an encumbered property merely because such house or site or
such house and site is mortgaged, solely for having obtained funds for the
purchase of the said house or site or the said house and site or for the building
of such house to any of the following agencies, namely,(a)the Central
Government;(b) a State Government;(c)a co-operative society being a society
registered under the Co-Operative Societies Act,1912, or under any other law
for the time being in force in any State relating to Co-operative societies: (d)
an institution; (e)a trust; (f)a local body;or(g) a housing finance corporation;or
(ii) held in the name of any of the aforesaid agencies and the employee is
precluded from transferring or otherwise disposing of that house or site or that
house and site without the prior approval of such agency.

8.4.12
 (e) to pay premia on policies of insurance on the life of the employee or of his wife
provided that the policy is assigned to the trustees of the fund or at their discretion
deposited with them and that the receipts granted by the insurance company for the
premia are from time to time handed over to the Trustees for inspection by the
Assessing Officer;
(f) to meet the cost of legal proceedings instituted by the employee for vindicating his
position in regard to any allegations made against him in respect of any act done or
purporting to be done by him in the discharge of his official duty or or to meet the
cost of his defence when he is prosecuted by the employer in any court of law in
respect of any official misconduct on his part:
Provided that the advance under this clause shall not be admissible to an employee
who institutes legal proceedings in any court of law either in respect of any matter
unconnected with his official duty or against the employer in respect of any
condition of service or penalty imposed on him;
(g) to meet the expense of the damage caused to the movable or immovable property
of the employees as a direct result of flood, cyclone, earthquake or other convulsion
of nature:
(h) (i) to meet his household expenses if a factory or other establishment, wherein he
is working, is locked up or closed down for more than fifteen days for reasons
other than a strike rendering him unemployed without any compensation or if
he is not in receipt of wages for a continuous period of two months or more;
(ii) to meet his household expenses if the factory or other establishment wherein
he is working, suffers cut in supply of electricity resulting in a loss of one-
fourth or more of the total wages of the employee;
(iii) to meet the cost of purchasing an equipment required by a physically
handicapped employee which will minimise his hardship on account of the
handicap.
2. For the purposes of sub-rule (1),family means any of the following persons who are
wholly dependent on the employee, namely:- the employees wife, legitimate children,
step-children, parents, sisters and minor brothers.

Rule : 20. CONDITIONS FOR WITHDRAWAL FOR VARIOUS

PURPOSES.
(1) The withdrawal in connection with Rule 19(1)(c) shall be subject to the following
provisions:-
(i) The maximum admissible amount shall be 75% of own contribution plus interest on
own contribution of the employee upto the previous month.
(ii) After sanctioning of the loan at least Rupees One thousand should be in the
employees own contribution account.

8.4.13
(2) The withdrawal for the purpose specified in clause (d) of sub-rule (1) of Rule 19, by any
employee shall be subject to the following conditions, namely:-
(i) the amount of withdrawal shall not exceed-
(a) the employees basic wages and dearness allowance for thirty six months or
(b) the actual cost of building the house or of purchasing the house or the site or
the house and the site; or
(c) the employees contribution to the fund together with the specified percentage
of the employers contributions to that fund with interest thereon;
whichever is less.
Explanation: For the purposes of sub-clause(c) specified per centage means-
(1) 75 percent of the employees contribution forming part of the accumulation as
on the date of the authorisation of payment, if the period of membership of
the employee in the fund is five years or more, but less than ten years;
(2) 85 percent of such contribution, if the period of membership of the employee
in the funds ten years or more but less than fifteen years;
(3) 100 percent of such contribution, if the period of membership of the
employee in the fund is fifteen years or more.
(ii) the employee shall have completed three years of service or is due to retire within
the next ten years;
(iii) the withdrawal shall be permitted only if the house and/or site is free from
encumbrances;
(iv) no withdrawal shall be permitted for purchasing a share in a joint property or a
building or a house or land whose ownership is divided except where a site is
owned jointly with the spouse;
(v) where the withdrawal is for construction of a house, the payment of the withdrawal
may be sanctioned in such number of installments (not exceeding four) as the
trustees of the fund think fit;
(vi) where the withdrawals is for the construction of a house, the construction of the
house should be commenced within six months of the withdrawal and should be
completed within twelve months of the withdrawal of final installment;
(vii) if the withdrawal is made for the purchase of a house and/or a site for a house, the
purchase should be made within six months of the withdrawal;
(viii) if the amount withdrawn exceeds the actual cost of the purchase or construction of
the house and/or site or if the amount is not utilised for the purpose for which it is
withdrawn, the excess or the whole amount, as the case may be, shall be refunded
to the trustees forthwith in one lump sum together with interest from the month of
such withdrawal at the rate prescribed in sub-rule(4) of Rule 22. The amount so
refunded shall be credited to the employers share of contribution in the members
account in the fund to the extent of withdrawal granted out of the said share and

8.4.14
 balance, if any, shall be credited to the members share of contribution in his
account.
3) ADVANCE FOR ADDITIONS, SUBSTANTIAL ALTERATIONS OR IMPROVEMENTS
A withdrawal for additions, substantial alterations or improvements necessary to the house
owned by the employee or jointly owned by the employee and the spouse may be
granted up to twelve months basic wages and dearness allowance or the employees own
share of contribution with interest thereon or the amount standing to his credit in the fund,
whichever is less:
Provided that the said withdrawal shall be admissible only after a period of five years from
the date of purchase or completion of the house:
Provided further that where the amount withdrawn is not utilised in whole or in part for
the purpose for which it was withdrawn, the excess or the whole amount, as the case may
be, shall be refunded to the trustees forthwith in one lump sum together with interest from
the month of such withdrawal at the rate prescribed in sub-rule (2) of Rule 22 and the
amount so refunded shall be credited to the employees account in the fund.
(4) The withdrawal for the purpose specified in clause (f) of sub- rule (1) of Rule 19 , shall not
exceed three months pay or Rs.500 , which is greater, but shall in no case exceed half the
amount to the credit of the employee.
(5) The withdrawal for any other purpose referred to in sub-rule (1) of Rule 19 [except as
provided in sub-rule (1),(2),(3),(4) & (6) of Rule 20] shall not exceed THREE MONTHS
pay or the total of the accumulation of exempted contributions and exempted interest
lying to the credit of the employee, whichever is less.
(6) The amount of advance under the rule 19(i)(a) shall not exceed the basic wages and
dearness allowance of six months or his own contribution with interest in the fund,
whichever is less. (Inserted vide RPFC letter no.SRO/JSR/EB-II/BR/1370/Misc/2038 dtd. 7/
8/98 and board resolution dtd. 17/8/98.)

Rule : 21. Second withdrawal.

(1) Save as in sub-rule (2) (and sub rule (3), a second withdrawal shall not be permitted until
the sum first withdrawn has been fully repaid.
(2) A withdrawal may be permitted-
(a) for any purpose specified in clause (d) or (e) of sub-rule (1) of Rule 19
notwithstanding that any sum withdrawn earlier for any purpose specified in clause
(d) or clause (e) of the said sub-rule (1) has not been repaid).
(3) A withdrawal, referred to in clause (a) of sub-rule (2) of an amount equal to the difference
between the amount of withdrawal admissible under sub-rule (2) of Rule 20 as on the date
of application and the amount actually withdrawn by the employee for the purpose
specified in clause (d) of sub-rule (1) of Rule 19 any time during six years preceding the
3rd day of October, 1981, may be permitted to the employee, subject to the following
condition, namely:-

8.4.15
 (i) the employee had availed of the first withdrawal for purchase of a site and now
proposes to construct a house on the site so purchased; or
(ii) the employee had availed of the first withdrawal for making initial payment towards
allotment or purchase of a house from any of the agencies referred to in the second
proviso to clause (d) of sub rule (1) of Rule 19 and now proposes to withdraw the
amount for completing the transaction and for acquiring ownership of the house so
purchased; or
(iii) the employee had availed of the first withdrawal for construction of a house but the
said construction could not be completed due to shortage of funds.

Rule : 22. REPAYMENT OF AMOUNTS WITHDRAWN

(1) Advances sanctioned under these Rules should normally be non- refundable, however,
loan taken under Rule 19(1)(d), Rule 21 and for marriages under Rule 19(1)(c) be left
optional to the members for opting either refundable or non-refundable.
Refundable advance may also be sanctioned for the purpose as mentioned in Rule
19(1)(h) subject to Rule 22(2) for refund.
(2) In respect of withdrawals referred to in sub-rules (1) and of the amount referred to in
clause (viii) of sub rules (2) or the second proviso to sub rule (3) of Rule 20 interest shall
be paid in accordance with the following Table :

TABLE

1 2

Where the amount is repaid in not more One additional installment of 4% on the
than 12 monthly installments amount withdrawn

Where the amount is repaid in more than Two additional installments of 4% on the
12 monthly installments but not more amount withdrawn.
than 24 monthly installments.

Where the amount is repaid in more than Three additional installments of 4% on the
24 monthly installments but not more than amount withdrawn
36 monthly installments

where the amount is repaid in more than four additional installments of 4% on the
36 monthly installments but not more amount withdrawn
than 48 monthly installments

where the amount is refunded under clause 4% of the amount which is refundable.
(viii) of sub-rule (2) of Rule 20

8.4.16
 Provided that at the discretion of the trustees of the fund, interest may be recovered on
the amount aforesaid or the balance thereof outstanding from time to time at one percent
above the rate which is payable for the time being on the balance in the fund at the credit
of the employee.
(3) The employer shall deduct the installments aforesaid from the employees salary, and pay
them to the trustees of the fund. These deductions shall commence from the second
monthly payment of salary made after the withdrawal or, in the case of an employee on
leave without pay, from the second monthly payment of salary made after his return to
duty.

Rule : 23 : Amount withdrawn but not repaid may be deemed as income.

In case of default of repayment of installments due under sub-rule (1) or sub rule (2) of Rule 22 or
where the amount withdrawn is not utilised for the purpose for which it is withdrawn, the Chief
Commissioner or Commissioner of Income Tax may at his discretion order that the amount of the
withdrawal or the amount outstanding shall be added to the total income of the employee for the
year in which the default occurs or the withdrawn amount is finally held not to have been utilised
for the purpose for which it is withdrawn, and the Assessing Officer shall assess the employee
accordingly.

Rule 24 : Withdrawal on leave preparatory to retirement.

Notwithstanding anything contained in Rule 19 to Rule 23, it shall be open the Provident Fund
Trust to permit withdrawal of the amount standing at the credit of an employee if the employee
takes leave preparatory to retirement, provided that if he rejoins duty on the expiry of his leave he
shall refund the amount drawn together with interest at the rate allowed by the fund.

RULE 25 : PAYMENT ON CESSATION OF MEMBERSHIP

A member of the fund shall continue to be a member until he withdraws under Rule 25 A the
amount standing to his credit in the Fund.
A: The amount withdrawable by or on his behalf of a member from the fund shall become
payable in the following circumstances :-
(1) on discharge due to reduction in Establishment or on termination of service through ill-
health etc.
In the event of any member being discharged permanently from service as a result of
reduction by the company of its establishment or his becoming permanently incapacitated
owing to injury sustained whilst in the service of the Company through no fault or
carelessness or negligence on his part or if, a members service is terminated on account of
continued illness not due to his own fault, neglect or account of continued illness not due
to his own fault, neglect or carelessness (as to which the decision of Medical Officer
nominated by the Company shall be final) he shall be entitled to the whole amount
standing to the credit of his account as at the date of the termination of his service / or for
any of the reasons herein specified.

8.4.17
 (i) A member may withdraw the full amount standing to his credit in the Fund:
(a) on retirement from service at any time, at or after the age of superannuation.
For this purpose, a member shall be deemed to have attained the age of
superannuation on completing the age of 58 years or such other age as may
be prescribed by the Companys Rules. Provided the full payment, however,
shall be made in case where the member applied for settlement of his
Provident Fund after leaving the service of the company on attaining the age
of superannuation.
(b) On a member suffering from Tuberculosis or Leprosy even if contracted after
leaving the service of the company on grounds of illness but before payment
has been authorised.
(c) On a member becoming permanently incapacitated owing to injury sustained
whilst in service of the Company through no fault or carelessness or
negligence on his part or if a members service is terminated on account or
continued illness not due to his own fault, negligence or carelessness (as to
which the decision of the Medical Officer Nominated by the Company shall be
final)
(2) ON TERMINATION OF THE CONTRACT OF SERVICE.
In the event of member ceasing to be in the service of the company because of the
termination, of his contract of service, he shall be entitled to the whole amount standing to
the credit of his account as at the date of the termination of the contract.
(3) ON ACCEPTANCE OF VOLUNTARY RESIGNATION OR RETIREMENT, OF ANY
MEMBER FROM THE SERVICE OF THE COMPANY UNDER THE SCHEME
APPROVED BY THE BOARD OR OTHERWISE.
(4) On dismissal of a member from the service of the company for misconduct.
(5) In cases other than those specified above the Trustees may permit a member to withdraw
the amount standing to his credit in the Fund, if
a) he being a national of a country other than India is leaving India at least for a year;
or
b) he has not been employed in any factory or other establishment to which the
Employees Provident Fund and Miscellaneous Provisions Act,1952' applied for a
continuous period of not less than two months immediately preceding the date on
which he makes the application for withdrawal.
EXPLANATION : A declaration in writing made by a member affirming the fact of non-
employment as aforesaid may be accepted as proof thereof.
6) On transfer to other companies
In the event of a member being transferred permanently to any other organisation or
Government Departments, the amount standing to the credit of his account in the Fund
may be transferred with his concurrence to the credit of his account in the Provident
Fund, if any, to be maintained by such other organisation or Government provided that

8.4.18
 the Fund of the other organisation is a recognised within the meaning of section 2(38) of
the Indian Income Tax Act, 1961. Thereupon the rules of such Provident Fund apply to
the member or to such transferred amount and the rules of this Provident Fund shall cease
to apply accordingly.
(7) WITHDRAWAL BEFORE SUPERANNUATION
The Board of trustee may on an application from a member in the prescribed form permit
withdrawal of upto 90% of the amount standing at his credit, at any time after attainment
of the age 54 years by the member or within one year before his actual retirement on
superannuation which ever is later. (Inserted vide RPFC letter no.SRO/JSR/EB-II/BR/
1370/Misc/2038 dtd. 7/8/98 and board resolution dtd. 17/8/98.)
B: DEATH OF THE MEMBER
On the death of a member whatsoever his length of service the Trustees shall pay the
whole amount standing to the credit of the member at his death, including the company
contribution with interest thereon to the person or persons entitled to receive the same.

RULE 26 : ACCUMULATIONS OF A DECEASED MEMBER TO WHOM

PAYABLE
On the death of a member before the amount standing to his credit has become payable, or where
the amount has become payable, but payment has not been made is to be paid as follows:-
(i) if a nomination made by the member in accordance with the Rule 8 subsists, the amount
standing to his credit in the fund or that part thereof to which the nomination relates, shall
become payable to his nominee or nominees in accordance with such nomination;
(ii) if no nomination subsists or if the nomination relates only to a part of the amount standing
to his credit in the Fund, the whole amount or the part thereof to which the nomination
does not relate, as the case may be, shall become payable to the members of his family in
equal shares.
Provided that no share shall be payable to-
(a) sons who have attained majority:
(b) sons of a deceased son who have attained majority;
(c) married daughters whose husbands are alive;
(d) married daughters of a deceased son whose husbands are alive,
if there is any members of the family other than those specified in clauses (a), (b),
(c) and (d).
Provided further that the widow or widows, and the child or children of a deceased
son shall receive between them in equal parts only the share which that son would
have received if he had survived the member and had not attained the age of
majority at the time of the members death.

8.4.19
(iii) In any case to which the provisions of clause (i)and(ii) do not apply the whole amount
(that would have been otherwise payable in his case) shall be payable to the person
legally entitled to it .
Explanation : For the purpose of this paragraph a members posthumous child if born
alive, shall be treated in the same way as a surviving child born before the members
death.

RULE 27 : APPLICABILITY OF PROVISIONS OF EMPLOYEES

PROVIDENT FUND SCHEME 1952
In the absence of any specific provisions in these Rules, the corresponding provisions of the
Employees Provident Fund Scheme, 1952 shall apply mutatis mutandis.

RULE 28 : SAVE CLAUSE

Save as modified and/or varied and/or supplemented as aforesaid the Trust Deed and Rules shall
remain in force and virtue.

8.4.20
 9.0

CDA RULES /

STANDING ORDERS
 CONDUCT, DISCIPLINE & APPEAL RULES, 1982

Rule 1. SHORT TITLES AND COMMENCEMENT

(i) These rules may be called Ferro Scrap Nigam Limited Conduct, Discipline and Appeal
Rules, 1982.
(ii) These rules shall come into force with effect from 7.12.1982.

Rule 2. APPLICATION
These rules shall apply to the employees in the Executive grade who are not governed by the
Standing Orders of the Company.

Rule 3. DEFINITIONS
In these rules, unless the context otherwise requires -
a) Employee means -
(i) A person in the employment of the Company including employees whose services
are temporarily placed at the disposal of Government or Holding Company or a
Subsidiary or any Public Undertaking, but does not include casual employees
workcharged or contingent staff or workmen as defined in the Industrial
Employment (Standing Orders) Act, 1946; and
(ii) Persons on deputation to the Company from Government or Holding Company or
a Subsidiary or any other Public Undertaking;
b) Company - means the Ferro Scrap Nigam Limited (FSNL).
c) Board -means the Board of Directors for the time being of FSNL and includes in relation
to the exercise of powers, any committee of the Board/Management or any officer of the
Company to whom the Board delegates any of its powers;
d) Chairman - means the Chairman for the time being of the Board of Directors.
e) Managing Director - means the Managing Director of the Company.
f) Disciplinary Authority - means the authority specified in the Schedule appended to these
Rules and Competent to impose specified penalties enumerated in Rule 23;
g) Competent Authority - means the authority specified in the Schedule appended to these
rules.
h) Government - means the Government of India or the Government of a State, as the case
may be.
i) Appellate Authority - means the authority specified in the Schedule appended to these
Rules.
j) Reviewing Authority - means the authority specified in the Schedule appended to these
Rules.
k) Family - in relation to an employee includes :-

9.1.1
 i) The wife or husband, as the case may be, of the employee, whether residing with
him or not but does not include wife or husband, as the case may be, separated
from the employee by a decree or order of a competent court;
ii) Son or daughter or step-son or step-daughter of the employee and wholly
dependent on him, but does not include a child or step-child who is no longer in
any way dependent on the employee or of whose custody the employee has been
deprived by or under any law;
iii) Any other person related, whether by blood or marriage to the employee or to such
employee's wife or husband and wholly dependent on such employee;
l) Public servant - shall mean and include a person as mentioned in Section 21 of Indian
Penal Code as amended from time to time;
j) Schedule - means the Schedule appended to these Rules and includes any amendment
made by Chairman from time to time.
k) Subsidiary Company - means a subsidiary of M.S.T.C. Limited.
l) Holding Company - means MSTC Limited.

Rule-4 GENERAL :
(1) Every employee of the Company shall at all times -
(i) Maintain absolute integrity;
(ii) Maintain devotion to duty; and
(iii) Conduct himself at all times in a manner which will enhance the reputation of the
Company.
(2) Every employee of the Company holding 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.

Rule-5 MISCONDUCT :
Without prejudice to the generality of the term "misconduct" the following acts of omission
and commission shall be treated as misconduct:-
1) Theft, fraud or dishonesty in connection with the business or property of the Company or
of a subsidiary or of property of another person within the premises of the Company;
2) Taking or giving bribes or any illegal gratification;
3) Possession of pecuniary resources or property disproportionate to the known sources of
income by the employee or on his behalf by another person which the employee can not
satisfactorily account for;
4) Furnishing false information regarding name, age, father's name, qualifications, ability or
previous service or any other matter germane to the employment at the time of
employment or during the course of employment;
5) Acting in a manner prejudicial to the interests of the Company;

9.1.2
6) Wilful insubordination or disobedience, whether or not in combination with others, of any
lawful and reasonable order of his superior;
7) Absence without leave or over-staying the sanctioned leave for more than four
consecutive days without sufficient grounds or proper or satisfactory explanation;
8) Habitual late or irregular attendance or wilful absence from duty;
9) Neglect of work or negligence in the performance of duty including malingering or slowing
down of work;
10) Damage to any property of the Company;
11) Interference or tampering with any safety devices installed in or about the premises of the
Company;
12) Drunkness or riotous or disorderly or indecent behaviour in the premises of the Company
or outside such premises where such behaviour is related to or connected with the
employment.
13) Gambling within the premises of the establishment.
14) Smoking within the premises of the establishment where it is prohibited.
15) Collection without the permission of the Competent Authority of any money within the
premises of the Company except as sanctioned by any law of the land for the time being
in force or rules of the Company.
16) Sleeping while on duty.
17) Commission of any act which amounts to a criminal offence involving moral turpitude.
18) Absence from the employee's appointed place of work without permission or sufficient
cause.
19) Purchasing properties, machinery, stores etc.from or selling properties, machinery, stores
etc.to the Company without express permission in writing from the competent authority.
20) Commission of any act subversive of discipline or of good behaviour.
21) Abetment of or attempt at abetment of any act which amounts to misconduct.
22) Sexual harassment of the working women of the company. For this purpose, sexual
harassment includes such unwelcome sexually determined behaviours (whether directly or
by implication) as:-
a) Physical contact and advances;
b) A demand or request for sexual favours;
c) Sexually coloured remarks;
d) Showing pornography;
e) Any other unwelcome physical, verbal or non-verbal conduct of sexual nature.
Note : The above instances of misconduct are illustrative in nature and not exhaustive.

9.1.3
Rule-6 : EMPLOYMENT OF NEAR RELATIVES OF THE EMPLOYEES OF
THE COMPANY IN FSNL AND/OR IN PRIVATE UNDERTAKINGS
ENJOYING PATRONAGE OF THE COMPANY.

(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 the employee's
wife or husband, whether such a person is dependent on the employee or not.
(2) No employee shall, except with the previous sanction of the competent authority, permit
any member of his family to accept employment with FSNL and/or any private firm with
which he or she has official dealings, or with any other firm having official dealings with
the company or holding company or a subsidiary company.
Provided that where the acceptance of the employment can not await the prior permission
of the competent authority, the employment may be accepted provisionally, subject to the
permission of the competent authority, to whom the matter shall be reported forthwith.
(3) 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 of his relatives is employed in
that firm or under that person or if he or any of his relatives is interested in such matter or
contract in any other matter and the employee shall refer every such matter or contract to
his official superior and the matter or the contract shall thereafter be disposed of according
to the instructions of the authority to whom the reference is made.
(N.B:-For purposes of this clause, relative will be as defined in Indian Companies Act).

Rule-7(a) TAKING PART IN POLITICS AND ELECTIONS :-

Except in so far as may otherwise be specifically authorized by any law, no employee shall be
a member of, or be otherwise associated with, any political party or any organization which takes
part in politics, or assist any political movement or activity, or stand for election, without the
permission of the company, as a member of a local authority or a legislative body.

(b) Taking part in demonstrations :

No employee of the Company shall engage himself or participate in any demonstration
which involves incitement to an offence.

Rule-8 CONNECTION WITH PRESS OR RADIO

(1) No employee of the Company 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.
(2) No employee of the Company shall, except with the previous sanction of the competent
authority, or in the bona fide discharge of his duties, participate in a radio broadcast or
write or publish a book or contribute an article or write a letter either in his own name or

9.1.4
 anonymously, pseudonymously or in the name of any other person to a newspaper or
periodical.
Provided that no such sanction shall be required if such broadcast or such contribution is
of a purely literary, artistic or scientific character.

Rule-9 CRITICISM OF GOVERNMENT AND THE COMPANY

No employee shall, in any radio broadcast or in any document published under his name or
under any pen name or pseudonym 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 Government or of
the Company; or
b) which is capable of embarrassing the relations between the Company and the public or
between the Company and the Government.
Provided that nothing in his rule 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 rule shall apply to bona fide expression of
views by him as an office-bearer of a recognized trade union, the purpose of safeguarding
the conditions of service of such employees or for securing an improvement thereof.

Rule-10 : EVIDENCE BEFORE COMMITTEE OR ANY OTHER

AUTHORITY
(1) Save as provided in sub-rule (3), no employee of the Company shall, except with the
previous sanction of the competent authority, give evidence in connection with any
enquiry conducted by any person, committee or authority.
(2) Where any sanction has been accorded under sub-rule(1), no employee giving such
evidence shall criticize the policy or any action of the Government, or of the Company.
(3) Nothing in this rule shall apply to -
a) evidence given at any enquiry before an authority appointed by the Government,
Parliament or a State Legislature or the Company or Holding Company or a
Subsidiary Company;
b) evidence given in any judicial enquiry
or
c) evidence given at any departmental enquiry; ordered by authorities subordinate to
the Government;
d) evidence given at any departmental enquiry ordered by any Public Sector
undertaking.

9.1.5
Rule-11 : UNAUTHORIZED COMMUNICATION OF INFORMATION
No employee shall, except in accordance with any general or special order of the Company
or in the performance in good faith of the duties assigned to him, communicate, directly or
indirectly any official document or any part thereof of information to any person to whom he is not
authorized to communicate such document or information.

Rule-12 : GIFTS
(1) Save as otherwise provided in these rules, no employee of the Company shall accept or
permit any member of his family or any person acting on his behalf, to accept any gift.
Explanation:- The expression "gift" shall include free transport, board, lodging or other
service or any other pecuniary advantage when provided by any person other than a near
relative or a personal friend having no official dealings with the employee.
Note :
(i) A casual meal, lift or other social hospitality shall not be deemed to be a gift.
(ii) An employee shall avoid acceptance of lavish or frequent hospitality from any
individual or firm having official dealings with him.
(2) On occasions such as weddings, anniversaries, funerals, or religious functions, when the
making of a gift is in conformity with the prevailing religious or social practice, an
employee of the Company may accept gifts from his near relatives but he shall make a
report to the competent authority if the value of the gift exceeds Rs.1,000/=.
(3) On such occasions, as are specified in sub-rule(2), an employee of the Company may
accept gifts from his personal friends having an official dealings with him, but he shall
make a report to the competent authority if the value of any such gift exceeds Rs.400/=.
(4) In any other case, an employee of the Company shall not accept any gifts without the
sanction of the competent authority if the value thereof exceeds Rs.400/=.
Provided that when more than one gift has been received from the same person/ firm
within a period of 12 months, the matter shall be reported to the competent authority if
the aggregate value of the gift exceeds Rs.400/=.

Rule-12 A GIVING OR TAKING DOWRY:

No employee of the Company shall -
(1) give or take or abet giving or taking of dowry; or
(2) demand, directly or indirectly from the parents or guardian of a bride or bridegroom, as
the case may be, any dowry.
Explanation : For the purpose of this rule, 'dowry' has the same meaning as in the Dowry
Prohibition Act, 1961 (28 of 1961).

9.1.6
Rule-13 PRIVATE TRADE OR EMPLOYMENT :
(1) No employee of the Company, shall, except with the previous sanction of the competent
authority, engage directly or indirectly in any trade or business or undertake any other
employment or negotiate for taking an employment.
Provided that an employee may, without such sanction, undertake honorary work or a
social or charitable nature or occasional work of a literary, artistic or scientific character,
subject to the condition that his official duties do not thereby suffer.
(2) Every employee of the Company shall report to the competent authority if any member of
his family is engaged in any trade or business or owns or manages an insurance agency or
commission agency.
(3) No employee of the Company shall, without the previous sanction of the competent
authority, except in the discharge of his official duties, take part in the registration,
promotion or management of any bank or other company which is required to be
registered under the Companies Act, 1956 (1 of 1956) or any other law for the time being
in force or any-co-operative society for commercial purposes.
Provided that an employee of the Company may take part in the registration, promotion
or management of a Consumer/House Building Co-operative Society substantially for the
benefit of employees of the Company or a subsidiary company, registered under the Co-
operative Societies Act, 1912 (2 of 1912) or any other law for the time being in force or of
a literary, scientific or charitable society registered under the Societies Registration Act,
1860 (21 of 1860) or any corresponding law in force.
(4) No employee of the Company may accept any fee or any remuneration or any pecuniary
advantages for any work done by him for any public body or any private person without
the sanction of the competent authority.

Rule-14 INVESTMENT, LENDING AND BORROWING:

No employee shall, save in the ordinary course of business with a bank, the Life Insurance
Corporation or a firm of Standing, borrow money from or lend money to or otherwise
place himself under pecuniary obligation to any person with whom he has or is likely to
have official dealings or permit any such borrowing, lending or pecuniary obligation in his
name or for his benefit or for the benefit of any member of his family.

Rule-15 INSOLVENCY AND HABITUAL INDEBTEDNESS :

(1) An employee of the company shall avoid habitual indebtedness unless he proves that such
indebtedness or insolvency is the result of circumstances beyond his control and does not
proceed from extravagance or dissipation.
(2) An employee of the company who applies to be, or is adjudged or declared insolvent,
shall forthwith report the fact to the competent authority.

9.1.7
Rule-16 MOVABLE, IMMOVABLE AND VALUABLE PROPERTY :
(1) No employee of the company shall, except with the previous knowledge of the competent
authority, 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.
(2) No employee of the company shall, except with the previous sanction of the competent
authority, enter into any transaction concerning any immovable or movable property with
a person of a firm having official dealings with the employee or his subordinate.
Explanation No.1
The term 'every transaction concerning movable property owned or held by him' includes
all transactions of sale or purchase. For purpose of this sub-rule, the definition of movable
property would include -
a) Jewellery, insurance policies, the annual premia of which exceeds Rs.2,500/= or
one sixth of the total annual emoluments received from the company, whichever is
less, shares, securities and debentures;
b) Loans advanced by such employee whether secured or not;
c) Motor cars, motor cycles, horses or any other means of conveyance; and
d) Refrigerators, radios (radiogram and television sets).
Explanation No.2
Transaction entered into by the spouse or any other members of family of an employee of
the Company out of his or her on funds (including stridhan, gifts, inheritance etc.), as
distinct from the funds of the employee of the Company himself, in his or her own name
and in his or her own right, would not attract the provisions of the above sub-rule.
(3) Every employee of the Company shall, within one month, report to the competent
authority every transaction concerning movable property owned or held by him in his
own name or in the name of a member of his family, if the value of such property exceeds
Rs.10,000/=.
(4) Every employee shall, on first appointment in the Corporation/Company, submit a return
of assets and liabilities in the prescribed form, giving the particulars regarding -
a) the immovable property inherited by him, or owned or acquired by him or held by
him on lease or mortgage, either in his own name or in the name of any member of
his family or in the name of any other person;
b) shares, debentures and cash including bank deposits inherited by him or similarly
owned acquired or held by him;
c) other movable property inherited by him if similarly owned, acquired or held by
him, if the value of such property exceeds Rs.10,000/=;
d) debts and other liabilities incurred by him directly or indirectly;
e) every employee shall, beginning 1st January, submit a return of immovable
property inherited/owned/acquired every year.

9.1.8
(5) The competent authority may, at any time, by general or special order require an mployee
to submit within a period specified in the order, a full and complete statement of such
movable or immovable property held or acquired by him or on his behalf or by any
member of his family, as may be specified in the order. Such statement shall, if so required
by the competent authority, include details of the means by which, or the source from
which such property was acquired.

Rule-17 CANVASSING OF NON-OFFICIAL OR OTHER INFLUENCE

No employee shall bring or attempt to bring any outside influence to further his interest in
respect of matters pertaining to his service in the Company.

Rule-18 BIGAMOUS MARRIAGES

(1) No employee shall enter into, or contract a marriage with a person having a spouse living;
and
(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 Clause(1) or Clause (2), if it is satisfied that -
a) Such marriage is permissible under the personal law applicable to such employee
and the other party to the marriage; and
b) there are other grounds for so doing.
(3) An employee, who has married or marries a person other than an Indian National, he
shall forthwith intimate the fact to the Competent Authority.

Rule-19 CONSUMPTION OF INTOXICATING DRINKS AND DRUGS

An employee of the Company shall -
a) Strictly abide by any law relating to intoxicating drinks or drugs in force in any area in
which he may happen to be for the time being;
b) not be under the influence of any intoxicating drink or drug during the course of his duty
and shall take due care that the performance of his duties at any time is not affected any
way by the influence of such drinks or drug;
c) refrain from consuming any intoxicating drink or drug in a public place;
d) not appear in a public place in a state of intoxication;
e) not use any intoxicating drink or drugs to excess.
EXPLANATION :
For the purpose of this rule, 'public place' means any place or premises (including Clubs,
even exclusively meant for members where it is permissible for the members to invite non-
members as guests, bars and restaurants, conveyance), to which the public have or are
permitted to have access, whether on payment or otherwise.

9.1.9
Rule-20 : SUSPENSION
1. The appointing authority or any authority to which it is subordinate or the disciplinary
authority or any other authority empowered in that behalf by the Board by general or
special order may place an employee under suspension:-
a) where a disciplinary proceeding against him is contemplated or is pending; or
b) where a case against him in respect of any criminal offence is under investigation or
trial.
2. An employee who is detained in custody, whether on a criminal charge or otherwise, for a
period exceeding 48 hours shall be deemed to have been suspended with effect from the
date of detention, by an order of the appointing authority, and shall remain under
suspension until further orders.
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 enquiry or action or with any other directions, 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 and shall remain in force until further orders.
4. Where a penalty of dismissal or removal from service imposed upon an employee is set
aside or declared or rendered void in consequence of or by a decision of a court of la and
the disciplinary authority, on consideration of the circumstances of the case, decides to
hold a further inquiry against him on the allegations on which the penalty of dismissal or
removal was originally imposed, the employee shall be deemed to have been placed
under suspension by the appointing authority from the date of the original order of
dismissal or removal and shall continue to remain under suspension until further orders.
5. An order of suspension made or deemed to have been made under this rule may, at any
time, be revoked by the authority which made or is deemed to have made the order of by
any authority to which that authority is subordinate.
CLARIFICATION :-
i) If an employee is connected with the registration of the Police case under Section
304 B of IPC viz., involvement in case of 'dowry death', he shall be placed under
suspension immediately, irrespective of the period of detention.
ii) If he is not arrested by the Police in dowry death case, he shall be placed under
suspension on submission of a Police Report under Sub-Section(2) of Section 173
of the Code of Criminal Procedure, 1973, to the Magistrate, if the report prima-facie
indicates that the offence has been committed by the employee.
Section 304 B of IPC is reproduced below for information:-
304-B(1) : Where the death of a woman is caused by any burns or bodily injury or
occurs otherwise than under normal circumstances within seven years of her
marriage, and it is shown that soon before her death she was subjected to cruelty or
harassment by her husband or any relative of her husband for, or in connection

9.1.10
 with, any demand for dowry, such death shall be called 'dowry death' and such
husband or relative shall be deemed to have caused her death.
EXPLANATION :-
For the purpose of this sub-section, 'dowry death' shall have the same meaning as in
Section-2 of the Dowry Prohibition Act, 1961.

Rule-21 SUBSISTENCE ALLOWANCE :-

1. An employee under suspension shall be entitled to draw subsistence allowance equal to 50
percent of his basic pay, provided the disciplinary authority is satisfied that the employee
is not engaged in any other employment or business or profession or vocation. In
addition, he shall be entitled to Dearness Allowance and any other compensatory
allowance admissible on such subsistence allowance of which he was in receipt on the
date of suspension provided the suspending authority is satisfied that the employee
continues to meet the expenditure for which the allowance was granted.
2. Where the period of suspension exceeds six months, the authority which made or is
deemed to have made the order of suspension, shall be competent to vary the amount of
subsistence allowance for any period subsequent to the period of the first six months as
follows:-
i) The amount of subsistence allowance may be increased to 75 percent of basic pay
and allowance thereof if, in the opinion of the said authority, the period of
suspension has been prolonged for reasons to be recorded in writing not directly
attributable to the employee under suspension;
ii) The amount of subsistence allowance may be reduced to 25 percent of basic pay
and allowances thereof if in the opinion of the said authority, the period of
suspension has been prolonged due to the reasons to be recorded in writing, directly
attributable to the employee under suspension;
3. If an employee is arrested by Police on a criminal charge and bail is not granted, no
subsistence allowance is payable. On grant of bail, if the competent authority decides to
continue the suspension, the employee shall be entitled to subsistence allowance from the
date he is granted bail.

Rule-22 TREATMENT OF THE PERIOD OF SUSPENSION :-

1. When the employee under suspension is re-instated, the competent authority may grant to
him the following pay and allowances for the period of suspension -
a) If the employee is exonerated and not awarded any of the penalties mentioned in
Rule-23, the full pay and allowances which he would have been entitled to, if he
had not been suspended, less the subsistence allowance already paid to him; and
b) If otherwise, such proportion of pay and allowances as the competent authority may
prescribe.

9.1.11
2. In a case falling under sub-clause (a) the period of absence from duty will be treated as a
period spent on duty. In case falling under sub-clause(b), it will not be treated as a period
spent on duty unless the competent authority so directs.

Rule-23 : PENALTIES
The following penalties may be imposed on an employee, as hereinafter provided, for
misconduct committed by him or for any other good and significant reasons.
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 Corporation /
Company by negligence or breach of order;
e) Reduction to a lower stage in the time-scale of pay for a period not exceeding 3 years,
without cumulative effect and not adversely affecting his terminal benefits.
MAJOR PENALTIES :-
f) Same as provided in clause (e) 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 reduction will or will not have the effect of postponing the future increment of
pay;
g) Reduction to a lower time scale of pay, grade, post of 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;
h) Compulsary retirement;
i) 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.;
j) Dismissal from service which shall ordinarily be a disqualification for future employment
under the 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 known 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 (i) or (j) shall be
imposed;
Provided further that in any exceptional case and for special reasons recorded in writing,
any other penalty may be imposed.
Explanation : The following shall not amount to a penalty within the meaning of this rule :-

9.1.12
i) with-holding of increment of an employee for his failure to pass a prescribed test or
examination;
ii) stoppage of an employee at the efficiency bar in the time scale, on the ground of his
unfitness to cross the bar;
iii) non-promotion, whether in an officiating capacity or otherwise of an employee to a
higher post for which he may be eligible for consideration but for which he is found
unsuitable after consideration of his case;
iv) revision to a lower grade or post, of an employee officiating in a higher grade or post, on
the ground that he is considered, after trial, to be insuitable for such higher grade or post,
or on administrative grounds unconnected with his conduct;
v) revision to his previous grade or post, of an employee appointed on probation to another
grade or post, during or at the end of the period of probation, in accordance with the
terms of his appointment;
vi) Termination of Service -
a) of an employee appointed on probation, during or at the end of the period of
probation, in accordance with the terms of his appointment;
b) of an employee appointed in a temporary capacity otherwise than under a contract
or agreement, on the expiration of the period for which he was appointed, or earlier
in accordance with the terms of his appointment;
c) of an employee appointed under a contract or agreement, in accordance with the
terms of such contract or agreement; and
d) of an employee on reduction of establishment.
CLARIFICATION :-
Where disciplinary proceedings have been held under these rules, warning should not be
issued as a result of such proceedings. If it is found, as a result of the proceedings that some blame
attaches to the employee, atleast the penalty of 'censure' should be imposed.

Rule-24 DISCIPLINARY AUTHORITY

The Board of the Disciplinary Authority, as specified in the schedule, may impose any of the
penalties specified in Rule-23 on any employee.

Rule-25 PROCEDURE FOR IMPOSING MAJOR PENALTIES

1. No order imposing any of the major penalties specified in clauses (f), (g), (h), (i) and (j)
of Rule-23 shall be made except after an inquiry is held in accordance with this rule.
2. Whenever the disciplinary authority is of the opinion that there are grounds for inquiring
into the truth of any imputation of misconduct or misbehaviour against an employee, it
may itself enquire into or appoint any Executive of the Company or any Executive of Steel
Authority of India Limited or any Public Servant (hereinafter called the Inquiring
Authority) to inquire into the truth thereof.

9.1.13
3. Where it is proposed to hold an inquiry, the disciplinary authority shall frame definite
charges, on the basis of the imputations of misconduct or misbehaviour against the
employee. The charges, together with a statement of the imputations of misconduct or
misbehavious on which they are based, a list of documents by which and a list of Witness
by whom, the articles of charges are proposed to be sustained, 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
whether he admits or denies any of or all the Articles of Charge.
EXPLANATION:-
It will not be necessary to show the documents listed with the chargesheet or any other
document to the employee at this stage.
4. On receipt of the written statement of the employee, or if no such statement is received
within the time specified, an enquiry may be held by the Disciplinary Authority itself, or by
any other Executive appointed under sub-clause (2) after taking such evidence as it may
deem fit. Provided that it may not be necessary to hold an inquiry in respect of the
charges admitted by the employee in his written statement. The disciplinary authority
shall, however, record its findings on each such charge after taking such evidence as it
may think fit.
5. Where the disciplinary authority itself inquires or appoints an inquiring authority for
holding an inquiry, it may, by an order, appoint a public servant to be known as the
"Presenting Officer" to present on its behalf the case in support of the articles of charge.
6. The employee may take the assistance of any other public servant to present the case on
his behalf but may not engage a legal practitioner for the purpose.
Note:- The employee shall not take the assistance of any other public servant who has two
pending disciplinary cases on hand in which he was to give assistance.
7. On the date fixed by the inquiring authority, the employee shall appear before the
Inquiring Authority at the time, date and place specified in the notice. The inquiring
authority shall ask the employee whether he pleads guilty or has any defence to make and
if he pleads guilty to any of the articles of charge, the inquiring authority shall record the
plea, sign the record and obtain the signature of the employee concerned thereon. The
Inquiring Authority shall return a finding of guilt in respect of those articles of charge to
which the employee concerned pleads guilty
8. If the employee does not plead guilty, the inquiring authority shall adjourn the case to a
later date not exceeding thirty days, after recording an order that the employee may, for
the purpose of preparing his defence:-
(i) inspect the documents listed with the chargesheet;
(ii) submit a list of additional documents and witnesses that he wants to examine; and
(iii) be supplied with the copies of the statements of witnesses, if any, listed in the
chargesheet.

9.1.14
 Note :
Relevancy of the additional documents and the witnesses referred to in sub-clause 8 (ii)
above will have to be given by the employee concerned and the documents and the
witnesses may be summoned if the inquiring authority is satisfied about their relevance to
the charges under inquiry.
9. The Inquiring authority shall ask the authority in whose custody or possession the
documents are kept, for the production of the documents on such date as may be
specified.
10. The authority in whose custody or possession the requisitioned documents are, shall
arrange to produce the same before the inquiring authority on the date, place and time
specified in the requisition notice. Provided that the authority having the custody or
possession of the requisitioned documents may claim privilege if the production of such
documents will be against the public interest or the interest of the Company. In that event,
it shall inform the inquiring authority accordingly. The Inquiring Authority shall, on being
so informed, communicate the information to the employee concerned.
11. On the date fixed for the inquiry, the oral and documentary evidence by which the articles
of charge are proposed to be proved, shall be produced by or on behalf of the disciplinary
authority. The witnesses shall be examined by or on behalf of the Presenting Officer and
may be cross-examined by or on behalf of the employees. The Presenting Officer shall be
entitled to re-examine the witnesses on any points on which they have been cross-
examined, but not on a new matter, without the leave of the Inquiring Authority. The
inquiring authority may also put such questions to the witnesses as it thinks fit.
12. 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 articles of charge or
may itself call for new evidence or recall or re-examine any witness. In such case the
employee shall be given an opportunity to inspect the documentary evidence before it is
taken on record; or to cross-examine a witness, who has been so summoned.
13. When the case for the disciplinary authority is closed, the employee may be required to
state his defence, orally or in writing, as he may prefer. If the defence is made orally, it
shall be recorded and the employee shall be required to sign the record. In either case a
copy of the statement of defence shall be given to the Presenting Officer, if any appointed.
14. The evidence on behalf of the employee shall then be produced. The employee may
examine himself in his own behalf if he so prefers. The witnesses produced by the
employee shall then be examined and shall be liable to cross-examination, re-examination
and examination by the inquiring authority according to the provision applicable to the
witnesses for the disciplinary authority.
15. The Inquiring Authority, may after the employee closes his case, and shall, if the employee
has not examined himself, generally question him on the circumstances appearing against
him in the evidence for the purpose of enabling the employee to explain any
circumstances appearing in the evidence against him.

9.1.15
16. After the completion of the production of evidence, the employee and the Presenting
Officer may file written briefs of their respective cases within 15 days of the date of
completion of the production of evidence.
17. If the employee does not submit the written statement of defence referred to in sub-rule (3)
on or before the date specified for the purpose or does not appear in person, or through
the assisting officer or otherwise fails or refused to comply with any of the provisions of
these rules, the inquiring authority may hold the enquiry ex-parte.
18. Whenever any inquiring authority, after having heard and recorded the whole or any part
of the evidence in an inquiry cases to exercise jurisdiction therein, and is succeeded by
another inquiring authority which has, and which exercises such jurisdiction, the inquiring
authority so succeeding may act on the evidence so recorded by its predecessor, or partly
recorded by itself. Provided that if the succeeding inquiring authority, is of the opinion that
further examination of any of the witness whose evidence has already been recorded is
necessary in the interest of justice, it may recall, examine cross examine and re-examine
any such witnesses as hereinbefore provided.
19 (i) After the conclusion of the inquiry, report shall be prepared and it shall contain:-
(a) a gist of the articles of charge and the statement of the imputations of misconduct or
misbehaviour;
(b) a gist of the defence of the employee in respect of each article of charge;
(c) an assessment of the evidence in respect of each article of charge;
(d) the findings on each article or charge and the reasons therefor.
Explanation :-
If in the opinion of the Inquiring Authority the proceedings of charge different from the
original articles of the charge, it may record its findings on such article of charge;
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.
(ii) The inquiring authority, where it is not itself the disciplinary authority, shall forward
to the disciplinary authority the records of inquiry which shall include:-
a) the report of the inquiry prepared by it under sub-clause (i) above;
b) the written statement of defence if any, submitted by the employee referred to in
sub-rule (13);
c) the oral and documentary evidence produced in the course of inquiry;
d) written briefs referred to in sub-rule (16), if any; and
e) the orders, if any, made by the disciplinary authority and the inquiring authority in
regard to the inquiry.

Rule-26 ACTION ON THE INQUIRY REPORT

1. The disciplinary authority, if it is not itself the inquiring authority may, for reasons to be

9.1.16
 recorded by it in writing remit the case to the same or another inquiring authority for fresh
or further inquiry and report and the inquiring authority shall thereupon proceed to hold
the further inquiry according to the provisions of rule 25 as far as may be.
2. The disciplinary authority shall, if it disagrees with the findings of the inquiring authority
on any articles of charge, record its reasons for such disagreement and record its on
finding on such charge, if the evidence on record is sufficient for the purpose.
3. If the disciplinary authority having regard to its findings on all or any of the articles of
charge is of the opinion that any of the penalties specified in rule-23 should be imposed
on the employee, it shall, notwithstanding anything contained in rule-27, make an order
imposing such penalty.
4. If the disciplinary authority having regard to its finding on all or any of the articles of
charge, is of the opinion that any penalty is called for, it may pass an order exonerating
the employee concerned.

Rule-27 PROCEDURE FOR IMPOSING MINOR PENALTIES

1. Where it is proposed to impose any of the minor penalties specified in clauses (a) to (e) of
Rule-23, the employee concerned shall be informed in writing of the imputations of
misconduct or misbehaviour against him and given an opportunity to submit his written
statement of defence within a specified period not exceeding 15 days. The defence
statement, if any, submitted by the employee shall be taken into consideration by the
disciplinary authority before passing orders.
2. The record of the proceedings shall include:-
i) a copy of the statement of imputations of misconduct or misbehaviour delivered to
the employee;
ii) his defence statement, if any; and
iii) the orders of the disciplinary authority together with the reasons therefor.

Rule-28 COMMUNICATION OF ORDERS

Order made by the Disciplinay Authority under Rule 26 or Rule 27 shall be communicated
to the employee concerned, who shall also be supplied with a copy of the report of inquiry, if any
as also reasons for disagreement, if any, with the Inquiring Authority.

Rule-29 COMMON POCEEDINGS

Where two or more employees are concerned in a case, the authority competent to impose a
major penalty on all such employees may make an order directing that disciplinary proceedings
against all of them may be taken in a common proceedings and the specified authority may
function as the disciplinary authority for the purpose of such common proceedings.

Rule-30 SPECIAL PROCEDURE IN CERTAIN CASES

Not withstanding anything contained in Rule-25 or 26 or 27, the disciplinary authority may

9.1.17
impose any of the penalties specified in Rule-23 in any of the following circumstances:-
i) the employee has been convicted on a criminal charge, or on the strength of facts or
conclusions arrived at by a judicial trial; or
ii) 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; or
iii) where the Board/Chairman is satisfied that in the interest of the security of the company it
is not expedient to hold any inquiry in the manner provided in those rules.

Rule-31 EMPLOYEES ON DEPUTATION FROM THE CENTRAL

GOVERNMENT OR THE STATE GOVERNMENT OR SUBSIDIARIES
ETC.
i) 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 Holding Company or a Subsidiary 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.
ii) 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 Agency;
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 replace his services at the disposal of the Lending
Authority and transit to it the proceedings of the enquiry for such action as it deems
necessary.
iii) if the employee submits an appeal against an order imposing a minor penalty on him
under sub-rule(ii)(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 proceedings of the case shall be transmitted to that authority
for such action as it deems necessary.

Rule-32 PROVISION REGARDING EMPLOYEES LENT TO

GOVERNMENT SUBSIDIARY OR OTHER PUBLIC UNDERTAKING, ETC.
1) Where the services of an employee are lent to the Government or any authority
subordinate thereto or to a Subsidiary or to any other public undertaking (hereinafter

9.1.18
 referred to as the "borrowing authority" the borrowing authority shall have the powers of
the appointing authority for the purpose of placing such an employee under suspension
and of the disciplinary authority for the purpose of conducting disciplinary proceeding
against him.
Provided that the borrowing authority shall forthwith inform FSNL (hereinafter referred to
as the Lending Authority) of the circumstances leading to the order of suspension of an
employee or the commencement of the disciplinary proceedings, as the case may be.
2) In the light of the findings of the inquiring authority against the employee:-
i) If the borrowing authority is of the opinion that any of the penalties specified in
Clauses (a), (b), (c), (d) or (e) of Rule-23 (minor penalties) should be imposed on
the employee, it may, after consultation with the lending authority, make such
orders in the case, as it deems necessary.
Provided that in the event of a difference of opinion between the borrowing
authority and the lending authority, the services of the employee shall be replaced at
the disposal of the lending authority.
ii) If the borrowing authority is of the opinion that any of the penalties specified in
clauses (f), (g), (h), (i) & (j) of Rule-23 (major penalties) should be imposed on the
employee, it shall replace his service at the disposal of the lending authority and
transmit to it the proceedings of the enquiry for such action as deemed necessary.
Explanation :-
The disciplinary authority may make an order under this clause on the record of
inquiry transmitted to it by the borrowing authority or by holding such further
enquiries, as it may deem necessary, as far as may be, in accordance with Rule-25,
26 or 27.

Rule-33 APPEALS
i) An employee may appeal against an order imposing upon him any of the penalties
specified in Rule-23 or against the order of suspension referred to in Rule-20. The appeal
shall lie to the authority specified in the schedule.
ii) An appeal shall be preferred within one month from the date of communication of the
order appealed against. The appeal shall be addressed to the Appellate Authority specified
in the schedule and submitted to the authority whose order is appealed against. The
authority whose order is appealed against, shall forward the appeal together with its
comments and the records of the case to the appellate authority within 15 days. The
appellate authority shall consider whether the findings are justified or whether the penalty
is excessive or inadequate and pass appropriate orders within three months of the date of
appeal.
The appellate authority may pass order confirming, enhancing, reducing or setting aside
the penalty or remitting the case to the authority which imposed the penalty or to any
other authority with such direction as it may deem fit in the circumstances of the case.

9.1.19
 Provided that if the enhanced penalty which the appellate authority proposes to impose is
a major penalty specified in clauses (f), (g), (h), (i) and (j) of Rule-23 and an inquiry as
provided in Rule-25 has not already been held in the case, the appellate authority shall
direct that such an enquiry be held in accordance with the provisions of Rule-25 and
thereafter consider the record of the enquiry and pass such orders as it may deem proper.
If the appellate authority decides to enhance the punishment but an enquiry has already
been held as provided in Rule-25 the appellate authority shall give a show-cause notice to
the employee as to why the enhanced penalty should not be imposed upon him. The
appellate authority shall pass final order after taking into account the representation, if
any, submitted by the employee.

Rule-34 REVIEW
Notwithstanding anything contained in these rules, the reviewing authority as specified in the
schedule may call for the record of the case within six months of the date of the final order and
after reviewing the case pass such orders thereon as it may deem fit.
Provided that if the enhanced penalty, which the reviewing authority proposes to impose is a
major penalty specified in clauses (f), (g), (h), (i) and (j) of Rule-23 and an enquiry as provided
under Rule-25 has not already been held in the case, the reviewing authority shall direct that such
an enquiry be held in accordance with the provisions of Rule-26 and thereafter consider the record
of the enquiry and pass such orders as it may deem proper. If the reviewing authority decides to
enhance the punishment but an enquiry has already been held in accordance with Rule-25, the
reviewing authority shall give show cause notice to the employee as to why the enhanced penalty
should not be imposed upon him. The reviewing authority shall pass final order after taking into
account the representation, if any, submitted by the employee.

Rule-35 SERVICE OF ORDERS, NOTICES ETC.

Every order, notice and other process made or issued under these rules shall be served in
person on the employee concerned or communicated to him by registered post at his last known
address.

Rule-36 POWER TO RELAX TIME LIMIT AND TO CONDONE DELAY

Save as otherwise expressly provided in these rules, the authority competent under these
rules to make any order may, for good and sufficient reasons or if sufficient cause is shown, extend
the time specified in these rules, for anything required to be done under these rules or condone any
delay.

Rule-37 SAVINGS
1) Nothing in these rules shall be construed as depriving any person to whom these rules
apply of any right of appeal which had accrued to him under the rules, which have been
superseded by these rules.

9.1.20
2) An appeal pending at the commencement of the rules against an order made before the
commencement of these rules shall be considered and orders thereon shall be made, in
accordance with these rules.
3) The proceedings pending at the commencement of the rules shall be continued and
disposed as far as may be, in accordance with the provisions of these rules, as if such
proceedings were proceedings under these rules.
4) Any misconduct, etc., committed prior to the issue of these rules which was a misconduct
under the superseded rules shall be deemed to be a misconduct under these rules.

Rule-37 (A)
i) Disciplinary proceedings, if instituted while the employee was in service, whether before
his 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.
ii) During the pendency of the disciplinary proceeding, the disciplinary authority may with-
hold 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 offense/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. Howwever, the
provisions of Section 7(3) and 7(3)A of the Payment of Gratuity Act, 1972 should be kept
in view in the event of delayed payment, in case the employee is fully exonerated.

Rule-37 (B)
No functional Director of the Company, including the Chief Executive, who has retired from
the service of the Company, after such retirement, 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 two years from the date of his retirement without
prior approval of the Government.

Rule-38 REMOVAL OF DOUBTS

Where doubt arises as to the interpretation of any of these rules, the matter shall be referred
to the Board for final decision.

Rule-39 PROCEDURE FOR PREMATURE RETIREMENT OF

EXECUTIVES
In accordance with Clause 1.0 (ii) of the Voluntary Retirement Scheme, an executive who
has attained the age of 50 years and is considered to be medically unfit, inefficient or of doubtful

9.1.21
integrity, may be prematurely retired by the competent authority, viz., Managing Director.
The criteria for judging the medical unfitness, inefficiency or doubtful integrity of executives
proposed to be prematurely retired, are as follows:-
(i) INEFFICIENCY :
Inefficiency would be evaluated on the basis of the appraisal reports. An employee who
has secured consecutively "C" rating for three years in his Appraisal Reports, may be
deemed as a fit case for premature retirement.
(ii) DOUBTFUL INTEGRITY :
An employee who gets an adverse comment consecutively for three years on his integrity
in his CCR would be recommended for premature retirement.
(iii) MEDICAL UNFITNESS :
a) If an employee has been continuously on leave on medical grounds for a period of
12 weeks (including Sundays and holidays) or he has been on leave for reasons of
sickness for a total period of 120 days (including Sunday and holidays) or more
during a continuous period of six months or if a person though attending duties but
is found to be mentally deranged, his departmental head may refer him to a medical
board for his thorough medical check-up and report:-
- The disease he is suffering from;
- Whether it is curable or incurable;
- Whether the disease is infectious/contagious;
- In case of curable disease whether the person is likely to be fit to resume his
normal duties within a period of 12 months.
b) If the person is not fit to resume his duties within a period of 12 months and in cases
of employees suffering from incurable and infectious/contagious disease or suffering
from lunacy or mental derangement and whose services can not be utilized by the
Company or whose attendance is likely to pose health hazard to others as may be
certified by the Medical Board, premature retirement will be considered on
recommendations of Managing Director.
c) This premature retirement on medical grounds is independent of and without
prejudice to the right of the Company under the contract of employment to dispense
with the services of an employee on three months notice inter-alia on grounds of
medical unfitness in case of an employee who might not have even attained the age
of 50 years as is being presently done.
BENEFITS UNDER THE SCHEME :
An employee who is prematurely retired, will be entitled to the following:-
a) Pay for the notice period of one month/three months, as may be applicable to him under
his terms and conditions of service, plus leave salary for unavailed Earned Leave. The
quantum of leave salary will not exceed the maximum limit to which Earned Leave can be
accumulated under the Leave Rules applicable to the employee.

9.1.22
b) Full Provident Fund contribution of the employer with accretions thereto in the account of
the employee subject to the provision of the Provident Fund Rules applicable to him.
c) Gratuity for each completed year of service or part 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 T.A.Rules.
DECISION :
Appraisal Reports of those executives who have been graded as "C" or whose integrity has
been considered doubtful, will be put up together every year to the Chief Executive, if such reports
have not otherwise been put up to him as Reviewing Officer or as Higher Authority.

Rule-40 AMENDMENTS
The Board may amend, modify or add to these rules, from time to time, an all such
amendments, modifications or additions shall take effect from date stated thereon.

SCHEDULE

S.No SCALE OF PAY DISCIPLINARY/ PENALTY APPALL-ATE REVIEWING

AUTHORITY IT CAN AUTHORITY AUTHORITY
COMPETENT IMPOSE
AUTHORITY

1 Executive whose President All - President

appointments are
made by the
President of India.

2 Executives in grades Chairman/ All Board Board

below those covered Managing
by Sl.No.1, but above Director
Rs.17500-400-22300/=.

3. Executives between Managing All Chairman Chairman

and including the grades Director
of Rs.6550-200-11350/=
& Rs.17500-400-22300/=.

9.1.23
 WORKS STANDING ORDERS

VISAKHAPATNAM

1. APPLICABILITY :
These Standing Orders shall come into force in accordance with the provisions of Section-7
of the Industrial Employment(Standing Orders) Act, 1946 shall apply to all the workmen of Ferro
Scrap Nigam Limited, Visakhapatnam, A.P.

2. DEFINITIONS :
In these orders, unless there is anything repugnant to the subject or context,
a) "NIGAM" means Ferro Scrap Nigam Limited, Visakhapatnam, A.P.
b) "HEADQUARTERS OFFICE" means Headquarters office of Ferro Scrap Nigam Limited,
situated at Bhilai, P.O.Box-37, Equipment Chowk, Central Avenue, Bhilai, 490-001,
Chattisgarh.
c) "ESTABLISHMENT" means Headquarters office and Administrative Offices of the Ferro
Scrap Nigam Limited, Visakhapatnam.
d) "MANAGING DIRECTOR" means person designated as Managing Director from time to
time.
e) "COMPETENT AUTHORITY" means the person incharge of Ferro Scrap Nigam Limited,
Visakhapatnam, presently designated as Dy.General Manager and who is also Disciplinary
Authority for Ferro Scrap Nigam Limited, Visakhapatnam.
f) "APPELLATE AUTHORITY" means the person presently designated as General
Manager(Operations), Corporate Office, Ferro Scrap Nigam Limited, Bhilai.
g) "REVIEWING AUTHORITY" means the person designated as Managing Director of Ferro
Scrap Nigam Limited, Bhilai.
h) "MANAGEMENT" means the head of the works under the Nigam or any other Officer
authorized to act in his place, or to whom any of his powers is delegated.
i) "WORKMAN" means any person (including an apprentice) employed in Ferro Scrap
Nigam Limited, Visakhapatnam to do any manual unskilled, skilled, technical,
Operational, Clerical or Supervisory works for hire or reward, whether the terms of
employment be expressed or implied, but does not include any such person -
i) Who is employed, mainly in managerial or administrative capacity or
ii) Who being employed in a supervisory capacity, draws wages exceeding Rs.1,600/=
per mensum or exercises either by the nature of the duties attached to the Office/
Post or by reason of the powers vested in him functions mainly of a managerial
nature.

9.2.1
j) "NOTICE" means notice in writing required to be given and exhibited on the notice boards
for the purpose of these standing orders. A copy of the notice shall be served on the
General Secretary of each registered Trade Union.
k) "NOTICE BOARD" means the notice board specially maintained in conspicuous place at
or near each of the main entrance to the works and at the time offices for the purpose of
displaying notice required to be pasted or affixed under the provisions of these Standing
Orders.
l) "WAGES" means wages as defined under the Payment of Wages Act, 1936 and as
amended from time to time.
m) "WORKS" means unit of the Ferro Scrap Nigam Limited, Visakhapatnam.
n) Words imparting the Masculine Gender shall include the Feminine gender.
o) Words imparting the Singular number shall include the Plural number and vice-versa.

3. CLASSIFICATION OF WORKMEN :
For the purpose of these standing orders, the workmen shall be classified as Permanent,
Probationer, Badli, Temporary, Casual and Apprentice.

a) PERMANENT WORKMEN :
A permanent workman is a workman who has been engaged on permanent basis and
includes any person who has satisfactorily completed a Probationary period of six months
in the same or another occupation in Ferro Scrap Nigam Limited, Visakhapatnam,
including breaks due to sickness, accident, leave, lockout, strike (not being an illegal strike)
or involuntary closure of the Nigam.

b) PROBATIONER :
A probationer is workman who is provisionally employed to fill a permanent vacancy in a
post and has not completed six months of service therein. If a permanent workman is
employed as a Probationer in any other post he may at any time during the probation
period of three months be reverted to his previous permanent post in case his
performance is not satisfactory in the event the work or conduct of a probationer being
found unsatisfactory, the management may extend the period of probation for further
period not exceeding six months in spells of three months each. In exceptional case, if the
work and conduct of a probationer is not found satisfactory during the extended period of
probation, the management may extend his probation for a further period not exceeding
six months, after recording the reasons for the same in writing successful completion or
otherwise of the period of probation or as the case may be, extended period of probation
shall be communicated to the workman concerned in writing by the management.

c) BADLI :
A Badli is a workman who is appointed in the post of a Permanent workman or
Probationer who is temporarily absent.

9.2.2
d) TEMPORARY WORKMAN :
A Temporary workman is a workman who has been engaged for work which is of
Professionally temporary in nature, likely to be completed with the limited period.

e) CASUAL WORKMAN :
A Casual workman is a workman whose employment is of a casual nature.

f) APPRENTICE :
An apprentice is a learnemr who is paid stipend or allowance during the period of training
in work but does not include under Apprentice Act, 1961 or any Scheme of
Apprenticeship introduced by the Central or State Government.

4. RECORD OF AGE :
Every workman shall indicate his exact date of birth to the Management at the time of
entering into service. The Management shall insist the workmen to produce the following before
entering his date of birth in his service card:-
i) His Matriculation or School leaving Certificate granted by the Board of Secondary
Education or similar Educational Authority;
OR
ii) A certified copy of his date of birth as recorded in the registers of Municipality, Local
Authority o Panchayat or Registrar of Births.
iii) In the absence of either of the aforesaid two categories of certificates, the Management
shall insist the workman to furnish a certificate from a Government Medical Officer not
below the rank of an Asst.Surgeon, indicating the probable age of the workman, provided
the cost of obtaining such certificate is borne by the Management.
iv) Where it is not practicable to obtain a certificate from the Government Medical Officer, an
Affidavit sworn either by the workman or his parents, or by a near relative who is in a
position to know about the workman's actual or approximate date of birth, before a first
class Magistrate or Date Commissioner as evidence in support of the date of birth given by
him.
v) Date of birth of a workman once entered in the service card of the company shall be sole
evidence of his age in relation to all matters pertaining to his service including fixation of
the date of his retirement from the service of the company. All formalities regarding
recording of the date of birth shall be finalized within three months of the appointment of
a workman.
vi) Cases where date of birth of any workman had already been decided on the date of these
standing orders come into force shall not be reopened under these provisions.
NOTE :
Where exact date of birth is not available and the year of birth is only established, then the
first July of the said year shall be taken as the date of birth.

9.2.3
5. IDENTITY CARDS AND PERMITS :
i) Every workman shall be provided with an Identity Card, Badge, Token or Permit bearing
such particulars as may be prescribed by the management for purpose of identification of
the workman for entry into the works or offices, as the case may be, which shall not be
transferable.
ii) Every workman shall keep the Identity Card, Badge, Token or Permit issued in his favour
while entering or leaving the Nigam and also while he is within the precincts of the Nigam
and shall produce/present the Identity Card, Badge or Permit, if they required to do so, to
any member of the Security Staff or any other Officers of the Management authorized in
this behalf.
iii) If a workman loses his Identity Card, Badge, Token or Permit, he shall immediately report
to the issuing authority, and a new Card, Badge, Token or Permit shall be issued to him
on payment of a sum not exceeding Rs.5/=, as may be directed by the management.
iv) The Identity Card, Badge, Token or Permit issued to workmen will remain Nigam's
property and every workman shall surrender the same to the Issuing Authority on
termination of his service/Retirement/Resignation and on expiry of the terms of the
Identity Card, Badge, Token or Permit.

6. PUBLICATION OF WORKING TIME :

All instructions issued from time to time relating to attendance checking or arrival and
departure, the periods and hours of work for all classes of workmen in each shifts as may be fixed
from time to time shall be exhibited in English, Hindi and in the principal language of the workmen
employed in the establishment on to Notice Board.

7. ENTRY, EXIT & SEARCH :

All workmen shall enter and leave the works premises only by gates provided for the purpose.
These gates may be closed during the working hours at the discretion of the management and the
workmen shall not leave the works premises during such hours, except during rest intervals, without
the permission in writing of their incharge, which shall be shown at the gate.
On entering or leaving the works, and at any other time in special circumstances, all
workmen in case of reasonable suspicion, are liable to be detained and searched by the Security
Staff at the discretion of the management. Female workers shall be searched with due regard by
their modesty by a female authorized in this behalf by the management.

8. ATTENDANCE AND LATE COMING :

a) All workmen shall be at work at the time fixed as prescribed by the company from time to
time for each section or Department etc., which will be displayed on the Notice Board.
b) Workmen who are required to use time card shall punch the card in the Time Clock at the
time of reporting for duty and on leaving duty or in the manner prescribed by the
management from time to time.

9.2.4
c) Workmen who are required to sign in an attendance register, will mark the hour of
reporting on duty and of leaving duty.
d) A Workman who is absent from duty, shall be liable for proportionate deduction of wages
as provided in the Payment of Wages Act. Similarly, workman who, after presenting
himself for duty at the beginning, is found absent from the place of his work or duty at any
time during the working hours without permission, shall be liable to have wages deducted.
e) If a workman is late by more than fifteen minutes, he may be liable to be shut out for that
day. However, such workman may be allowed upto half-an-hour after the starting of the
shift by the Incharge of the shift or Departmental Head or officer concerned at his own
discretion, subject to wages deduction as per the Provisions of Payment of Wages Act,
1936.

9. SHIFT WORKING :
a) Shift working shall be regulated in accordance with the provisions of the Factories Act.
More than one shift may be worked in any department or section of a department at the
discretion of the management. Notice showing shift shall be exhibited on the Notice
Board.
b) The management may alter or vary the shift and the hours of working of each shift by
notice in accordance with the provisions of the Factories Act at their discretion and
workmen shall be liable to be transferred from one shift to another at the discretion of the
management. Workmen shall neither be allowed to change their shift nor shall they leave
their job at the end of a shift without the permission of their incharge and until other
workmen have taken over from them.
c) No shift working shall be discontinued without two months notice being given in writing to
the workmen prior to such discontinuance, provided that no such notice shall be
necessary if the closing of the shift is under the agreement with the union/ workman. If as
a result of the discontinuance of the shift working any workmen are to be retrenched, such
retrenchment shall be effected in accordance with the provisions of the Industrial Disputes
Act, 1947 and the rules made thereunder. If shift working is restarted, the workmen shall
be given notice and re-employed in accordance with the provision of the said Act and said
rules.
d) Any notice of discontinuance or of restarting of a shift working or any notice of change in
shift working shall be served upon the General Secretary of each Registered Trade Union.

10. PAYMENT OF WAGES

a) All workmen shall be paid wages on a working day before expiry of the seventh day after
the last day of the wage period in respect of which the wages are payable.
b) Any wage due to a workman but not paid on the usual day on account of their being
unclaimed, shall be paid on an unclaimed wage payment day notified for the purpose
within three days. Payment can be made to a co-worker also if he is duly authorized by
the workman whose wages are due.

9.2.5
c) Any wage due to a deceased workman shall be paid to his nominee before the expiry of
the thirtieth working day after the day on which a valid claim is presented by his nominee,
or on their behalf by their legal representative. Management shall take all steps to ascertain
nominee of each workman within 30 days of his employment. The management may,
however, authorize payment of claims upto Rs.500/= without production of the usual
legal authority after such enquiry into the rights and title of the claimant as may be
deemed necessary.

11. PUBLICATION OF PAY DAYS :

A notice, specifying the days on which wages are to be disbursed, shall be displayed on the
Notice Board.

12. LEAVE :
The grant of leave to a workman shall depend upon the exigencies of the Nigam and shall be
at the discretion of the management. All workmen, other than Apprentice, shall be entitled to leave
as follows:-

a) EARNED LEAVE :
Earned leave with pay shall be allowed in accordance with Law.

b) CASUAL LEAVE :
An employee shall be entitled to 8 days Casual Leave with full wages in each calendar
year provided that the services of the workman can be spared without detriment to his
duties. Such leave cannot be carried forward to the following year and shall lapse if not
availed during the year. Casual leave is intended to meet urgent specific or unforeseen
circumstances for which provision cannot be made by exact rules. Except for emergent
reasons maximum grant of CL at a stretch will be as per the prevalent settlement/
agreement, as the case may be.
Casual leave shall not be combined with any other kind of leave.

c) SPECIAL CASUAL LEAVE :

Special Casual Leave may be granted to a workman for the day or days on which he is
unable to attend duty in special circumstances (but not for purely personal reasons as is
the case with leave), for instance due to civil disturbance, curfew or strike other than
striked sterilization operation under the Family Planning scheme, subject to a maximum
period of 30 days in a Calendar Year.

d) HALF-PAY LEAVE :
Half-pay leave @ 20 days for each calendar year which may be granted either on medical
certificate or on private affairs provided that in the first year of service of workman it
should be calculated proportionately according to the period of service put in by him. This
leave shall be accumulated upto 240 days.

9.2.6
e) COMMUTED LEAVE :
Commuted Leave not exceeding half the amount of half-pay leave due, only on
submission of a medical certificate, may be granted subject to the following conditions:-
A) Twice the amount of such leave shall be debited against half-pay leave due, and
B) The sanctioning authority has reasons to believe that the workman will return to
duty on its expiry.
No medical certificate is required to be produced if a workman remains on leave for two
days on medical grounds.

f) MATERNITY LEAVE :
Maternity Leave to the female worker shall be granted as per the provision of Maternity
Benefit Act, 1961.

g) EXTRA-ORDINARY LEAVE :
Extra-ordinary leave means - Leave is granted under special circumstances but without
pay:-
i) Extraordinary leave may be granted for a period not exceeding three months in
special circumstances when no other leave is by rule admissible or when other leave
is admissible but the workman concerned applied in writing for the grant of extra-
ordinary leave.
ii) In the case of a workman who has been in continuous service for a period
exceeding one year and is undergoing treatment for leprosy, cancer or tuberculosis
in a recognized sanatorium or institute or by a company's recognized sanatorium or
institute of Government or a Civil Surgeon extraordinary leave not exceeding 12
months on any one occasion may be granted subject to the following conditions:-
a) that the post from which the workman proceeds on leave is likely to last till his
return to duty and
b) the leave shall be granted on the production of a certificate from the
recognized Medical Officer incharge of the sanatorium or institute or
company's recognized doctor or in the employ of the Govt., or Civil Surgeon
as the case may be, specifying the period for which leave is recommended.
iii) In the case of a workman who has been in continuous service for a period
exceeding one year and is undergoing treatment for a serious disease in the
NIGAM's recognized Hospital as an Indoor patient and when no other leave is due,
extraordinary leave not exceeding 12 months on any one occasion may be granted
subject to the following conditions:-
a) that the post from which the workman proceeds on leave is likely to last till his
return to duty and
b) the leave shall be granted on the specific recommendations of the Medical
Officer of the company's recognized Hospital and production of a certificate
from him specifying the period for which leave is being recommended. The

9.2.7
 leave shall be further subject to the patient's continuing to have treatment in
the company's recognized hospital.

h) QUARANTINE LEAVE :
Quarantine leave which may be granted to a workman who is necessitated by order not to
attend duty in consequence of the presence of any infectious disease in the family or
household, such leave is granted on the certificate of a Medical Officer or Public Health
Officer of NIGAM's recognized hospital or of the Government Medical Officer or Public
Health Officer of the local area concerned, for a period not exceeding 21 days or in
exceptional circumstances 30 days
NOTE :-
A) Quarantine leave is not debited to the Leave Account;
B) Quarantine leave may, if necessary, be combined with other kinds of leave but the
total leave should not exceed the maximum limits prescribed in this clause.
C) Any leave necessary for quarantine purpose in excess of the prescribed limits, is
treated as ordinary leave.
D) Quarantine leave is not admissible to a workman if he himself suffers from any
infectious disease. Should be granted leave admissible under clause (a), (b), (d) &
(e).
E) Cholera, Small-pox, Plague, Diptheria, Typhus fever and Ceribro-spinal meningitis
may be considered as infectious disease for the purpose of this clause. Any other
disease as may have been declared by the State Government concerned as an
infectious disease for the purpose of their quarantine leave rules may also be
considered as an infectious disease for the purpose of this clause. In the case of
chicken-pox, quarantine leave should not be sanctioned unless the Health Officer
responsible considers that because of doubts as the true nature of the disease, e.g.,
small-pox, there is reason for the grant of such leave.
F) The term "HOUSE HOLD" used in this clause includes all individuals residing in the
same house, irrespective of whether or not they belong to the same family.

13. LEAVE SALARY :

A workman shall be entitled to leave salary as follows:-
a) During Earned Leave at a rate equal to the daily wage average of his total full time
earnings for the day in which he worked during the month immediately preceding his
leave, exclusive of any overtime and bonus but inclusive of dearness allowance.
b) During Half-pay leave at a rate equal to half the amount admissible under clause(a).
c) During Commuted Leave of equal to twice the amount admissible under clause(b).
d) During Extra Ordinary leave no leave salary.
e) During Casual leave the rate of wages drawn by the workman on the day immediately
preceding the day on which the leave commences.

9.2.8
f) During quarantine leave equal to the amount admissible under clause (a).

14. PUBLIC HOLIDAYS :

i) Subject to the exigencies of work, workmen shall be granted holidays with wages on
Republic Day, Independence Day, Gandhi Jayanti and May Day. Whenever a workman
works on a National Holiday and Public Holidays, he shall at his option, be entitled to
either thrice the wages for the day or twice the wages for the day on which he works and
in addition to availing himself of a substituted holiday with wages on any other day.
Further, those who have their weekly off on any of the above closed holidays, shall be
allowed a compensatory holiday on any day within the calendar year or one day's wage
in lieu thereof at the convenience of the management.
ii) The days observed as public holidays shall be exhibited on the Notice Board.
iii) In addition, 6 days Restricted Holidays shall also be allowed which shall be availed on the
festival days as notified by the management from time to time.
iv) A copy of the notice shall be served upon the General Secretary of each Registered Trade
Union.

15. LEAVE TO APPRENTICES/TRAINEES :

Apprentices/Trainees shall be entitled to leave as follows:-
a) Leave on full stipend upto 15 days in any year of Appenticeship/Training.
b) Leave on half stipend on medical certificate upto 20 days in any year of Apprenticeship/
Training.
c) Casual Leave upto seven days in a calendar year on full stipend.
NOTE :
If for any reasons it is proposed to terminate the Apprenticeship/Training of an appentice/
trainee, any leave which may be granted to him should not exceed beyond the date on
which the period of Apprenticeship/training is already sanctioned or extended expires or
any earlier date on which his Apprenticeship/Training may be terminated.

16. APPLICATION FOR LEAVE :

i) A workman who desires to obtain leave of absence shall apply in writing to sanctioning
authority.
ii) Except in an emergency, applications for leave for three days or less should be made
atleast 24 hours before the time from which the leave is required.
iii) Application for leave more than three days should ordinarily be made atleast 5 working
days before the date from which the leave is required.
iv) Application for leave under clause(ii) shall be disposed off on the same day. Application
for leave under clause (iii) shall be disposed off within 3 working days.

9.2.9
v) The number of times in which earned leave can be taken during any year shall not exceed
four.
vi) Orders granting or refusing leave shall be passed by the authority in writing. If leave is
sanctioned, the workman shall be given a leave pass and in case leave is refused, the
reason for refusal shall be communicated to the workman in writing.
vii) All applications for leave must bear the leave address.
viii) A workman who desires to extend his leave, shall make an application in writing to the
sanctioning authority before the expiry of the leave already sanctioned.
ix) Application for leave or extending leave on medical grounds shall be supported with a
certificate from a Medical Officer of the Company's recognized hospital or where there is
no such officers, a Govt.Medical Officer, or failing him from a registered medical
practitioner stating the period for which leave is recommended. On receipt of such
application the sanctioning authority shall immediately inform the workman in writing
whether the leave or extension of leave has been granted and if so, for what period.
A workman who has been sanctioned leave or an extension of leave on medical ground
for a period exceeding fourteen days at a time, shall not be allowed to resume duty unless
he produces a certificate of fitness from the Govt.Medical Officer or the Registered Medical
practitioner, who issued the sick certificate, as the case may be. In case a workman suffers
from infectious/contagious disease and he takes leave, he will be allowed to join duty only
on production of fitness certificate from Nigam's recognized doctor irrespective of the
duration of leave.
x) The sanctioning Authority will have the discretion to refuse, curtail or revoke leave at any
time according to the exigencies of the Nigam's work, giving reasons for such refusal,
curtailment or revocation of leave.
xi) If the workman remains absent beyond the period of leave originally granted or
subsequently extended, shall lose his lien on his appointment unless he :-
a) returns within 21 days of the expiry of the sanctioned leave and (b) explains to the
satisfaction (of the employer or the officer specified in this behalf by the employer)
his inability to return before the expiry of his leave. In case the workman loses his
lien on his appointment, he shall be entitled to be kept on the badli list.

17. CHANGE OF ADDRESS :

A workman shall notify the management immediately of any change of his residential
address. Non delivery or mis-delivery of any letters or communication to the workman at the
address given by him earlier by reasons of his having changed his residence without duly
communicating the same to the management shall not be accepted as valid excuse for the non-
compliance with the order or communication as the case may be.

9.2.10
18. OVERTIME :
a) Subject to the provisions of the law applicable to the works, the management may require
in writing any workman to work overtime (Including work on weekly holidays and Public
holidays as provided in these Standing Orders).
b) Subject to the provisions of Law applicable to the works, a workman shall be paid
overtime allowance at the ordinary rate of wage for work done by him in excess of his
normal hours of work, but within the permissible daily/weekly limits laid down by the Law
and at twice the ordinary rate of wages for work done by him in excess of those limits, the
hourly rate of wages being calculated by dividing the total monthly wages by 208.
NOTE :
i) For the purpose of this Standing Orders, Bonus if any shall not form part of wages.
ii) In the case of Apprentices, overtime will be admissible only when they work
independently against a working post.

19. MEDICAL FITNESS :

The management may, in its discretion, require a workman to undergo a medical checkup if
he/she is suspected to be suffering from infectious disease or serious illness or to test his/he medical
fitness for the job whenever there are reasons to believe that the workman is not fit to carryout his/
her duties satisfactorily. In case a workman is found medically unfit by the Medical Board duly
constituted by K.G.Hospital (Govt.Hospital), Visakhapanam, he may be discharged from the
services of the Nigam.

20. STOPPAGE AND SHUT-DOWN OF WORK :

Subject to the provisions of the Industrial Disputes Act, 1947 and the rules made
thereunder :-
a) The Management may, at any time, in the event of fire, catastrophe, breakdown of
machinery, or stoppage of power supply, epidemics, civil commotion or other cause
beyond their control stop any section or sections of the works, wholly or partially fo any
period or periods without any notice;
b) In the event of such stoppage during working hours, the workmen affected shall be
notified by notices put up on the notice board in the department concerned as soon as
practicable, when work will be resumed and whether they are to remain or leave their
place of work. The workman shall not ordinarily be required to remain for more than two
hours after the commencement of the stoppage.
If the period of detention does not exceed one hour, the workmen so detained shall not be
paid for the period of detention. If the period of detention exceeds one hour, the workmen
so detained shall be entitled to receive wages for the whole of the time during which they
are detained as a result of the stoppage. No other compensation will be admissible in case
of such stoppage. Whenever practicable, reasonable notice shall be given for resumption
of normal work.

9.2.11
c) In case where workmen are laid off for short periods on account of reasons given under
the para(s) above, the period of unemployment shall be treated as compulsory leave
either with or without pay, as the case may be. When however, workmen have to be laid
off for an indefinitely long period, their services may be terminated after giving them due
notice of pay in lieu thereof.
d) The Management may in the event of a strike affecting either wholly or partially any
section or department of the establishment, close down either wholly or partially such
section or department and any other section or department affected by such closing down.
The fact of such close down shall be notified by notices put on the notice boards in the
section or department concerned, as soon as practicable. The workmen concerned shall
also be notified by a general notice, prior to resumption of the work as to when work will
be resumed.

21. SAFETY PRECAUTIONS :

All workmen shall observe all safety rules or orders that may be notified from time to time by
the Nigam and use safety equipment provided by the company.

22. SECRECY :
No workman shall take any paper, booklets, drawing, photographs, instrument, apparatus,
document or any other property of the Nigam out of the works premises except with the written
permission of the management nor he shall be in any way pass or cause to be passed or disclosed
or cause to be disclosed any information or matter concerning the manufacturing process, trade
secrets and confidential documents of the Nigam to any unauthorized person, company or
corporation without the written permission of the management.

23. BEHAVIOUR & CONDUCT :

A workman employee shall, at all times, conduct himself soberly and tempartely while on the
works premises and with all proper respect and civility to all persons having any dealing with the
Nigam and shall in all things use his best endeavour to promote the interest of the Nigam and to
maintain and promote the good reputation thereof.
A workman employee shall avoid habitual indebtedness and where a workman applies to be
or is adjudged insolvent, he shall within 3 days report the fact to the departmental head.

24. ACTS OF MISCONDUCT :

Without prejudice to the general meaning of the terms Misconduct, the following acts and
omissions shall be treated as misconduct :-
i) Willful insubordination o disobedience, whether alone or in combination with others, to
any lawful and reasonable order of a superior.
ii) Theft, fraud or dishonesty in connection with the Nigam's business or property.

9.2.12
iii) Non-observance of safety measures or rules on the subject put upon the notice board,
interference with safety devices or firefighting equipment.
iv) Giving false information regarding one's name, father's name, age, qualification, previous
service, address etc., at the time of employment.
v) Habitual late attendance and/or habitual absence from duty without leave or without
sufficient cause.
vi) Neglect or negligence of duty, malingering absconding, slowing down of work or sleeping
on duty including not doing work without a reasonable cause while being present for duty
at the work spot.
vii) Transfer of identity card, medical card, to another person.
viii) Taking or giving bribes or illegal gratification or indulging in corrupt practices.
ix) Assaulting or use abusive language or intimidating any workman or officer of the Nigam
within the works premises of in the Nigam's estate subversive of discipline.
x) Gambling, drunkenness, fighting, riotous, disorderly or indecent behaviour in works
premises or any act subversive of discipline or including in Satta, Matka etc.
xi) Smoking in prohibited area notified by the management.
xii) Sabotage or willful damage to or loss of Nigam's goods or property.
xiii) Willful failue to inform the management of any contagious or notifiable disease (notified
by the management in this behalf) contracted by a workman or any person residing with
him.
xiv) Carrying on directly, indirectly or benami (a) money lending business and/or (b)other
private business prejudicial to the Nigam's interests, and running chitfunds.
xv) Deliberately spreading false information with a view to bring about disruption to Nigam's
normal work.
xvi) Holding meeting within the works premises or any of the premises owned by the Nigam
without the previous written permission of this management.
xvii) Striking work or inciting others to strike work without any provocation in contravention of
the provision of any law or rule having the force of law.
xviii) Wrongfully restraining and confining the managerial personnel with a view to pressurize
influence or make him conceding the demand and physically preventing or pressurizing
any worker or executive from discharging his duties.
xix) a) Unauthorized use or occupation of Nigam's land, quarters or properties. Extension of
Nigam's quarter and construction on Nigam's land.
b) Unauthorized sub-letting of the quarters allotted to an employee.
xx) Conviction in any court of law for any criminal offense involving moral turpitude.
xxi) Breach of any law applicable to the works.
xxii) Breach of any Standing Order.

9.2.13
xxiii) Collecting or canvassing for the collection of any money within the works premises.
Distributing or exhibiting within working place news papers, pamphlets, hand-bills, posters
or other visible representations except on the notice board specified for the purpose.
xxiv) Refusal to be searched by the Security personnel or any authorized person.
xxv) Possession or carrying of lethal weapons within the Nigam's premises.
xxvi) Adjudged insolvency not warranting the continuance of management's trust and
confidence which the duties of the workman call for.
xxvii) Abetment or attempt to commit any of the above acts of misconduct.
xxviii) Intentionally giving false information prejudicial to the interest of the Nigam.
xxix) Refusal to accept or receive chargesheet/show cause notice or any other notice or letter of
communication or instruction or transfer order and carry out the orders, what so ever,
from the management o not giving receipt after receiving the same or not reply to the
same, if required to do so.
xxx) Leaving the head quarters even during holidays and period of suspension without prior
permission of the management, without giving his address on which he is likely to be
available in case of emergency.
xxxi) Possession, Sale or Purchase of intoxicants, liquor, drugs, narcotics etc., within the
Nigam's premises.

26. PENALTIES FOR MISCONDUCT :

The following penalties may, for good and sufficient reasons, be imposed on employees for
misconduct:-
i) The following shall constitute minor penalties :-
(a) Censure (b) fine (c) Suspension without pay for a period not exceeding 4 days.
ii) The following shall constitute major penalties:-
a) Stoppage of increment.
b) Reduction to a lower grade or post or lower stage in a time scale.
c) Removal from services which does not disqualify for future employment.
d) Dismissal from service which disqualifies for future employment.
EXPLANATION :
Stoppage of increment at an Efficiency Bar shall not constitute a penalty.

26-A. SUSPENSION :
Where a disciplinary proceeding against a workman is contemplated or is pending or where
criminal proceedings against him in respect of any offence are under investigation or trial and the
disciplinary authority is satisfied that it is necessary or desirable to place the workman under
suspension, he may, by order in writing, suspend him with effect from such date as may be
specified in the order. A statement setting out in detail the reasons for such suspension shall be
supplied to the workman within a week from the date of suspension. During the period of

9.2.14
suspension, the suspended workman shall not enter the work premises except with the special
permission of the management or when he is specially called by the management in connection
with the enquiry.
During the period of suspension, the suspended workman shall not take up any employment
and shall not leave the headquarters without the prior permission of the management. During the
period of suspension, the suspended workman will be paid subsistence allowance at the rate
mentioned below, subject to the declaration by him that he was not engaged in any other gainful
employment during the period for which subsistence allowance is paid.

27. PAYMENT OF SUBSISTENCE ALLOWANCE

Subject to the provisions contained in Section-10(A) of the Industrial Employment (Standing
Orders) Act, 1946, the workman under suspension shall be entitled to receive from the
Management Subsistence Allowance:-
a) At the rate of fifty percent of the wages which the workman was entitled to immediately
preceding the date of such suspension, for the first ninety days of suspension; and
b) At the rate of seventy five percent of such wages for the remaining period of suspension if
the delay in the completion of disciplinary proceedings against such workman is not
directly attributable to the conduct of such workman.

28. TREATMENT OF THE PERIOD OF SUSPENSION

When the workman under suspension is allowed to resume duties, he shall be entitled to the
following pay and allowances for the period of suspension:-
a) If the workman is exonerated of the charge, he shall be treated as on duty and shall be
entitled to full pay and allowances which he would have been entitled to had he not been
placed under suspension, less subsistence allowance already paid to him.
b) If the workman is adjudged guilty of misconduct and punishment is awarded, the
workman shall be deemed to be absent from the date of suspension and shall not be
entitled to any wages for such period except the subsistence allowance.

29. PROCEDURE FOR IMPOSING PENALTIES FOR MISCONDUCT

a) i) No order imposing penalty whatsoever shall be made unless the workman
concerned is informed in writing of the misconduct alleged against him and is given
an opportunity to explain the circumstances.
ii) Chargesheet shall be served to the workman. It shall clearly state the particulars
necessary for identifying the acts or omissions constituting the misconduct.
iii) In case of suspension, the chargesheet will be served within seven days from the
dates of suspension provided that in exceptional circumstances the time limit may
be extended for a further period not exceeding twenty one days with intimation to
the workman concerned in writing giving reasons for the same.

9.2.15
b) i) Ordinarily the workmen shall be given fifteen working days time to submit his
explanation. If the date on which the explanation is due is a holiday, it shall be
submitted by the workman on the following working day.
ii) If the workman asks for extension of time for giving his explanation, it may be
granted once for a period not exceeding seven days and thereafter at the discretion
of the disciplinary authority.
iii) If the disciplinary authority considers that the workman's explanation is acceptable,
then the charge may be dropped and the workman informed accordingly.
iv) If the explanation submitted by the workman is found not satisfactory or if the
workman fails to submit his explanation within the stipulated period, the disciplinary
authority may appoint an enquiry officer to enquire into the charges levelled against
the workman under intimation to him.
c) i) The disciplinary authority may, by an order, appoint a Presenting Officer to present
the case in support of the allegation of misconduct on behalf of the management.
The enquiry officer, on written request of the chargesheeted workman, may allow
any co-worker of the FERRO SCRAP NIGAM LIMITED, Visakhapatnam to assist
him in his defence.
Proceedings of the Enquiry shall be recorded in English and the English version shall
be explained to the delinquent workman in the local language understood by him
before recording.
ii) The enquiry officer shall by a notice in writing inform the date, time and place of
enquiry poceedings where the workman should appear in person, with a copy to the
Presenting Officer for necessary action.
iii) If the workman admits the charge unconditionally of his own volition free will during
the enquiry proceedings, the enquiry officer may not examine any oral/
documentary evidence in support of the allegations of misconduct. However, if the
workman does not admit the charge, the enquiry officer after recording the
preliminaries, should proceed with the examination of the witnesses as produced by
the Presenting Officer and also documentary evidence, if any, in this regard.
iv) There should be only one witness at one time. The other witness must not be
present when any other witness is being examined or cross-examined. The general
practice is that the witnesses of the management are examined first and the accused
workman's later. At the end of each statement of the management's witnesses the
accused workman should be allowed to cross-examine them. If he avails of the
opportunity, then he should be allowed to do so, and if he does not avail of this,
then the enquiry officer shall record a note to that effect and obtain signature of the
accused workman. While examining the witnesses it should be ensured that after the
statement of such management witness has been recorded, the accused workman
gets an opportunity to cross-examine such witnesses on their oral statements or
documents produced by them. After all the witnesses-documents have been
produced by the Presenting Officer, the Enquiry Officer shall give an opportunity to

9.2.16
 the accused workman to do the same in his defence and the Presenting Officer will
be permitted to cross-examine the witnesses so produced and the documents
adduced in this regard. The Witnesses may be re-examined, with the permission of
the Enquiry Officer. The Enquiry Officer may also put such questions to the
witnesses as he deems necessary, to elucidate any point or matter or issue.
v) A copy of each of the day to day proceedings of the enquiry and statement each of
the management's as well as defence witnesses shall be supplied to the accused
workman at the end of the day's proceedings.
vi) If the accused workman fails to appear within the specified time, date and place or
fails to produce the evidence by which proposes to rebut the charge levelled against
him, the Enquiry Officer may adjourn the case to a later date after recording an
order that there are reasonable grounds for the accused having been unable to
attend the proceedings. However, in case where the accused workman does so with
a view to cause vexatious delay, the Enquiry Officer may after giving one more
opportunity through a notice and on failure of the accused workman again conduct
the enquiry ex-parte.
vii) The Enquiry Officer may, after the accused workman closes his evidence and shall if
the workman has not examined himself, generally question him on the statements
etc., against him in the evidence for the purpose enabling the workman to explain
the same. After completion of the evidence on both sides the Presenting Officer and
the accused workman may submit written or oral briefs of their respective cases, if
they so desire.
viii) After completion of the enquiry, the report/findings shall be prepared by the Enquiry
Officer and sent to the Disciplinary Authority. A copy of the same shall be supplied
to the accused workman.
d) i) The Disciplinary Authority shall, if he disagrees with the finding of the Enquiry
Officer on any charge of the misconduct, record its reasons for such disagreement
and record his findings on such charge of misconduct, if the evidence on record is
sufficient for the purpose.
ii) The Disciplinary Authority may before passing orders on the enquiry report for
reasons to be recorded in writing, remand the case to these enquiry officer for
further enquiry and report.
iii) No penalty may be awarded to a workman unless proved guilty of misconduct on
the basis of findings of the Enquiry Officer. In awarding penalty under this Standing
Order, the Disciplinary Authority may take into account the gravity of misconduct,
previous record of workman and any other extenuating or aggravating
circumstances they may exist.
iv) Orders made by the Disciplinary Authority on the enquiry report shall be
communicated to the workman in writing.

9.2.17
30. APPEAL :
a) Any workman on whom any of the penalties mentioned above is imposed, shall have the
right to appeal to the appellate authority. Appeal against punishment should be submitted
within thirty days from the dates of receipt of the order of punishment by the workman
and it shall be disposed off by the appellate authority within thirty days from the date of
receipt of appeal, the appellate authority shall consider all the relevant documents. The
decision of the appellate authority shall be communicated to the appellant workman in
writing.

31. REVIEW :
If the concerned workman is aggrieved with the decision of the appellate authority, he may
send an application within thirty days from the date of receipt of the decision to the reviewing
authority for review. On receipt of the application the Reviewing authority shall after giving him an
opportunity of personal hearing, review the case and decide to educe or enhance the punishment
or altogether set aside the same. The decision of the reviewing authority shall be final and
communicated to the workman concerned within sixty days within the date of receipt of decision.

32.TERMINATION OF SERVICE :
Subject to the provisions of Law :
A) For termination of employment of a permanent workman, notice in writing shall be given
either by the management or the workman one month's notice or one month's wages may
be paid in lieu of notice provided that the services of any permanent workman shall not
be terminated as punishment unless he has been given an opportunity to explain the
charge of misconduct alleged against him in the manner prescribed in these Standing
Orders.
B) No temporary workman, probationer, casual or apprentice shall be entitled to any notice
pay in lieu thereof if his services are terminated. But the services of temporary workman
shall not be terminated as a punishment unless has been given an opportunity of
explaining the charges of misconduct, alleged against him.
C) Where the employment of any workman is terminated, the wages earned by him, wages
for the earned leave at his credit and other dues, shall be paid to him before the expiry of
the second working day on which his employment is terminated.
D) If a workman leaves the service of the NIGAM without a requisite notice, then without
prejudice to any other action under his contact of his service, if any, the management may
deduct from his unpaid wages or any other dues the sum equivalent to the wages for the
period of notice which he is required to give under para (a) above.

33. BIGAMOUS MARRIAGE :

No workman who has a spouse living, shall contract another marriage in contravention of the
existing law.

9.2.18
34. TRANSFER :
A workman may be transferred according to exigency of work from one department to
another from one station to another or from one unit to another under FERRO SCRAP NIGAM
LIMITED.

35. PROVISION REGARDING EMPLOYEES BORROWED FROM

OTHER SOURCES. :
In the application of these standing orders in relation to the workman whose services have
been borrowed by the NIGAM from another organization, the operation of these standing orders
shall be subject to the terms and conditions on which their services have been loaned to the
NIGAM.

36. SERVICE CERTIFICATE :

All workmen shall be entitled to a service certificate specifying the nature of work, designation
and period of employment at the time of termination of his service as a result of resignation,
retirement or discharge from service.

37. EXHIBITION AND SUPPLY OF STANDING ORDERS :

A text of the Standing Orders as finally certified shall be promptly displayed by the
management in English and local language understood by the majority of workmen on the notice
board.

38. INTERPRETATION OF STANDING ORDERS :

If there is any conflict between the standing order in English and those in any other language
or local language, the English version shall prevail and be followed.

39. SAVINGS :
Nothing contained on these standing orders shall operate in derogation of any law or to the
prejudice of any right under written contract of services, settlement or award for the time being in
force nor shall any agreements or award between the employer and the workman prejudicially
affect the rights of the workmen under these standing orders.

9.2.19
 WORKS STANDING ORDERS

ROURKELA, BURNPUR, BHILAI, BOKARO &

DURGAPUR

1. SCOPE OF APPLICATION :
These Standing Orders shall come into force from a date determined in accordance with the
provisions of Section-7 of the Industrial Employment(Standing Orders) Act, 1946 and shall apply to
all Employees/Workmen employed in Ferro Scrap Nigam Limited, Rourkela, Burnpur, Bhilai,
Bokaro & Durgapur.

2. DEFINITIONS :
In these orders, unless there is anything repugnant to the subject or context,
a) "COMPANY" means Ferro Scrap Nigam Limited.
b) "WORKMAN" means any person (including an apprentice) employed in any industrial
establishment to do any skilled or unskilled manual, supervisory, technical or clerical work
for hire or reward, whether the terms of employment be expressed or implied, as defined
in the Industrial Establishment (Standing Orders) Act, 1946.
c) "MANAGEMENT' means the Head of the works under the company, or any other officer
authorized to act in his place or to whom any of his powers is delegated.
d) "NOTICE" means notice in writing required to be given or pasted on the Notice Board for
the purpose of these standing orders.
e) "NOTICE BOARD" means the notice board specially maintained in conspicuous place at
or near each of the main entrance to the works and at the time offices for the purpose of
displaying notice required to be pasted or affixed under the provisions of these Standing
Orders.
f) "WAGES" means wages as defined under the Payment of Wages Act, 1936.
g) "WORKS" means all the units of the Ferro Scrap Nigam Limited at Rourkela, Burnpur,
Bhilai, Bokaro & Durgapur, which come within the definition of "Industrial Establishment"
as defined in the Industrial Employment (Standing Orders) Act, 1946.
h) Words imparting the Masculine Gender shall include the Feminine gender.
i) Words imparting the Singular number shall include the Plural number and vice-versa.

3. CLASSIFICATION OF WORKMEN :
For the purpose of these standing orders, the workmen shall be classified as follows:-
a) PERMANENT EMPLOYEE :
A permanent employee means employees on the sanctioned standard force of the
company and who have successfully completed the Probationary period, if any,

9.3.1
 prescribed for them, and includes those who have completed 12 months' continuous
service within the meaning of Industrial Disputes Act, 1947 in one or more posts in
connection with temporary increase in permanent work.

b) TEMPORARY EMPLOYEE :
Temporary Employees means employees who are employed for work which is essentially
of a temporary nature or who are employed in connection with a temporary increase in
permanent work for a period not exceeding 12 months, provided that in case a temporary
employee is placed on probation, the period of his temporary service shall count towards
the probationary period.

c) CASUAL EMPLOYEE :
Casual employee means employees who are engaged for work of a casual nature.

d) APPRENTICE :
Apprentice means persons engaged for training with a view to their eventual employment
under the company on satisfactory completion of training and who will be paid a stipend
or allowance during the period of training. However, every apprentice undergoing
apprenticeship training in a designated trade under the Apprentices Act, 1961 shall not be
governed by these Standing Orders.

e) PROBATIONER :
Probationers means persons who are provisionally employed to fill vacancies in
permanent posts for a period not exceeding 6 (six) months and who have not completed
their probation period provided that the period of probation may be extended by the
management beyond the original period by not more than 6 (six) months for reasons to
be recorded in writing.

f) SUBSTITUTE :
"Substituted" or "Badlis" means workmen who are employed in posts of permanent or
temporary workmen or probationers who are temporarily absent.

4. RECORD OF AGE :
At the time of appointment, every employee shall be required to declare his/her age/date of
birth and the same shall be recorded by the Personnel Department of the company and such entry
of the age shall be attested by the employees. The employees should, for this purpose, produce any
of the following documents in proof of their age in order or priority:-
i) His Matriculation/S.S.C./High School or Higher Secondary School leaving Certificate.
OR
Certificate of Board Examination, recognized by the Govt., provided they have appeared
in the said Examination prior to date of appointment.
ii) Military discharge certificate where date of birth is indicated (Applicable only to Ex-Army
Personnel).

9.3.2
 iii) Baptismal certificate.
An employee who is unable to produce above documentary evidence of his age, shall
declare his date of birth/age, which would be subject to verification through medical
examination by company's Medical Officer or Medical Board. The company, purely at it
discretion, may accept any other document, as proof of age in the absence of other
documents, if they are satisfied with the same, a admissible after proper and thorough
investigation. Once date of birth and age is declared and accepted, it shall be treated as
final and cannot be altered later nor can be questioned by the employee.
Similar procedure of age verification shall be followed in case of exiting employees, in
case their age/date of birth is not available on records of the company.

5. IDENTITY CARDS AND PERMITS :

i) Every employee will be provided with an Identity Card, Badge, Token or Permit bearing
such particulars as may be prescribed by the management for purpose of identification of
the employee for entry into the works or offices, as the case may be, which shall not be
transferable.
ii) Every employee shall show his Identity Card, Badge, Token or Permit to the Security
Guard at the gate or gates when entering or leaving the works/or offices or when
demanded by the security men or other proper authority to produce it while he is inside
the works or offices.
iii) If an employee loses his Identity Card, Badge, Token or Permit, he shall immediately
report the loss to the issuing authority, and a new Card, Badge, Token or Permit shall be
issued to him on payment of a sum not exceeding Re.1/=, as may be directed by the
management.
iv) On the termination of services, or on being suspended from work, the workman
concerned shall surrender his card, badge, token or permit to the issuing authority.

6. PUBLICATION OF WORKING TIME :

All instructions issued from time to time relating to attendance checking or arrival and
departure, the periods and hours of work for all classes of employees in each shifts as may be fixed
from time to time shall be exhibited in English, Hindi and in the principal language of the
employees employed in the establishment, on to Notice Board.

7. ENTRY, EXIT & SEARCH :

All employees shall enter and leave the works premises only by the gates provided for the
purpose. These gates may be closed during the working hours at the discretion of the management
and the employees shall not leave the works premises during such hours, except during rest
intervals, without the permission in writing of their incharge, which shall be shown at the gate.
On entering or leaving the works, and at any other time in special circumstances, all
employees in case of reasonable suspicion, are liable to be detained and searched by the Security

9.3.3
Staff at the discretion of the management. Female employees shall be searched with due regard to
their modesty by a female authorized in this behalf by the management.

8. ATTENDANCE AND LATE COMING :

a) All workmen/employees shall be at work at the time fixed as prescribed by the company
from time to time for each section or Department etc., which will be displayed on the
Notice Board.
b) Employees who are required to use time card shall punch the card in the Time Clock at
the time of reporting for duty and on leaving duty or in the manner prescribed by the
management from time to time.
c) Employees who are required to sign in an attendance register, will mark the hour of
reporting on duty and of leaving duty.
d) An employee who is absent from duty, shall be liable for proportionate deduction of
wages as provided in the Payment of Wages Act. Similarly, an employee who, after
presenting himself for duty at the beginning, is found absent from the place of his work or
duty at any time during the working hours without permission, shall be liable to have
wages deducted.
e) If an employee is late by more than fifteen minutes, he may be liable to be shut out for
that day and may be treated as absent with consequent deductions of wages under
Payment of Wages Act. Such absence may, however, be allowed to be offset against the
leave due, if any, at the discretion of the management.

9. SHIFT WORKING :
a) Shift working shall be regulated in accordance with the provisions of the Factories Act.
More than one shift may be worked in any department or section of a department at the
discretion of the management. Notice showing shift shall be pasted on the Notice Board.
b) The management may alter or vary the shift and the hours of working of each shift by
notice in accordance with the provisions of the Factories Act at their discretion and
employees shall be liable to be transferred from one shift to another at the discretion of the
management. Workmen shall neither be allowed to change their shift nor shall they leave
their job at the end of a shift without the permission of their incharge and until other
workmen have taken over from them.
c) No shift working shall be discontinued without two months notice being given in writing to
the workmen prior to such discontinuance, provided that no such notice shall be
necessary if the closing of the shift is under the agreement with the union/ workman. If as
a result of the discontinuance of the shift working any workmen are to be retrenched, such
retrenchment shall be effected in accordance with the provisions of the Industrial Disputes
Act, 1947 and the rules made thereunder. If shift working is restarted, the workmen shall
be given notice and re-employed in accordance with the provision of the said Act and said
rules.

9.3.4
 Provided further where any recognized/registered trade union of workmen exists, a copy
of the notice shall also be sent by registered post within 24 hours to the Secretary of such
union.

10. PAYMENT OF WAGES

a) Wages due to an employee shall be paid in accordance with the provisions of the
Payment of Wages Act, 1936 on a working day notified under standing order no.11.
b) Any wage due to an employee but not paid on the usual day on account of their being
unclaimed, shall be paid on an unclaimed wage payment day notified for the purpose
within three days. Payment can be made to a co-worker also if he is duly authorized by
the workman whose wages are due.
c) Any wage due to a deceased employee shall be paid to his nominee before the expiry of
the thirtieth working day after the day on which a valid claim is presented by his nominee,
or on their behalf by their legal representative, provided such claim is submitted within
three years of the death of employee. Management willl take all steps to ascertain nominee
of each employee within 30 days of his employment. The management may, however,
authorize payment of claims upto Rs.500/= without production of the usual legal authority
after such enquiry into the rights and title of the claimant as may be deemed necessary.

11. PUBLICATION OF PAY DAYS :

A notice, specifying the days on which wages are to be disbursed, shall be pasted on the
Notice Board.

12. LEAVE :
All leave is granted at the convenience of the management. Nothing can limit the free
discretion of the management to refuse, revoke or curtail leave subject to the exigencies of the
work. All employees, other than an Apprentice, Casual, Substitute or Badli shall be entitled to leave
as follows:-
a) EARNED LEAVE :
Earned leave with pay shall be allowed in accordance with Law.

b) CASUAL LEAVE :
An employee shall be entitled to 8 days Casual Leave with pay in each calendar year
provided that the services of the employee can be spared without detriment to his duties.
Such leave cannot be carried forward to the following year and shall lapse if not availed
during the year. Normally it shall be obligatory on the part of the employee to inform his
superior in time.
Casual leave may not be combined with any other kind of leave.

9.3.5
c) SPECIAL CASUAL LEAVE (Applicable only for Durgapur unit) :
Special Casual Leave may be granted to the employees for the day or days on which
employee is unable to attend duty in special circumstances (but not for purely personal
reasons s is the case with leave), for instance, due to civil disturbance, curfew or strike
(other than strikes connected with the Works/Project) and for sterilization operation under
the Family Planning Scheme, subject to a maximum period of 30 days in a calendar year.

d) HALF-PAY LEAVE :
Half-pay leave @ 20 days for each calendar year which may be granted either on medical
certificate or on private affairs provided that in the first year of service of an employee it
should be calculated proportionately according to the period of service put in by him. This
leave may be accumulated upto 240 days.
Note :
In the case of temporary employee, half-pay leave will not be granted unless the
sanctioning authority has reasons to believe that the employee will return to duty after
expiry of the leave.

e) COMMUTED LEAVE :
Commuted Leave not exceeding half the amount of half-pay leave due, only on
submission of a medical certificate, may be granted subject to the following conditions:-
i) Twice the amount of such leave shall be debited against half-pay leave due, and
ii) The sanctioning authority has reasons to believe that the employee will return to
duty on its expiry.

f) MATERNITY LEAVE :
Maternity Leave to the female employee shall be granted as per the provision of Maternity
Benefit Act, 1961.

g) EXTRA-ORDINARY LEAVE :
i) Extraordinary leave may be granted for a period not exceeding three months in
special circumstances when no other leave is by rule admissible, or when other
leave is admissible but the workman concerned applied in writing for the grant of
extra-ordinary leave.
ii) In the case of an employee who has been in continuous service for a period
exceeding one year and is undergoing treatment for leprosy, cancer or tuberculosis
in a recognized sanatorium or institute or by a company's recognized doctor in the
employ of the Government or a Civil Surgeon, extraordinary leave not exceeding
12 months on any one occasion may be granted subject to the following
conditions:-
a) that the post from which the employee proceeds on leave is likely to last till his
return to duty and

9.3.6
 b) the leave shall be granted on the production of a certificate from the
recognized Medical Officer incharge of the sanatorium or institute or
company's recognized doctor or in the employ of the Govt., or Civil Surgeon
as the case may be, specifying the period for which leave is recommended.
iii) In the case of an employee who has been in continuous service for a period
exceeding one year and is undergoing treatment for a serious disease in the
Company's recognized Hospital as an Indoor patient and when no other leave is
due, extraordinary leave not exceeding 12 months on any one occasion may be
granted subject to the following conditions:-
a) that the post from which the employee proceeds on leave is likely to last till his
return to duty and
b) the leave shall be granted on the specific recommendations of the Medical
Officer of the company's recognized Hospital and production of a certificate
from him specifying the period for which leave is being recommended. The
leave shall be further subject to the patient's continuing to have treatment in
the company's recognized hospital.

h) QUARANTINE LEAVE :
Quarantine leave which may be granted to an employee who is necessitated by order not
to attend duty in consequence of the presence of any infectious disease in the family or
household. Such leave is granted on the certificate of a Medical Officer or Public Health
Officer of Company's recognized hospital or of the Government Medical Officer or Public
Health Officer of the local area concerned, for a period not exceeding 21 days or in
exceptional circumstances 30 days
NOTE :-
A) Quarantine leave is not debited to the Leave Account;
B) Quarantine leave may, if necessary, be combined with other kinds of leave but the
total leave should not exceed the maximum limits prescribed in this clause.
C) Any leave necessary for quarantine purpose in excess of the prescribed limits, is
treated as ordinary leave.
D) Quarantine leave is not admissible to an employee if he himself suffers from any
infectious disease; he should be granted leave admissible under clause (a), (b), (d) &
(e).
E) Cholera, Small-pox, Plague, Diptheria, Typhus fever and Ceribro-spinal meningitis
may be considered as infectious disease for the purpose of this clause. Any other
disease as may have been declared by the State Government concerned as an
infectious disease for the purpose of their quarantine leave rules may also be
considered as an infectious disease for the purpose of this clause. In the case of
chicken-pox, quarantine leave should not be sanctioned unless the Health Officer
responsible considers that because of doubts as to the true nature of the disease,
e.g., small-pox, there is reason for the grant of such leave.

9.3.7
 F) The term "HOUSE HOLD" used in this clause includes all individuals residing in the
same house, irrespective of whether or not they belong to the same family.

13. LEAVE SALARY :

An employee shall be entitled to leave salary as follows:-
a) During Earned Leave at a rate equal to the daily wage average of his total full time
earnings for the day on which he worked during the month immediately preceding his
leave, exclusive of any overtime and bonus but inclusive of dearness allowance.
b) During Half-pay leave at a rate equal to half the amount admissible under clause(a).
c) During Commuted Leave of equal to twice the amount admissible under clause(b).
d) During Extra Ordinary leave no leave salary.
e) During Casual leave the rate of wages drawn by the employee on the day immediately
preceding the day on which the leave commences.
f) During quarantine leave equal to the amount admissible under clause (a).

14. PUBLIC HOLIDAYS :

i) Subject to the exigencies of work, employees shall be granted holidays with wages on
Republic Day, Independence Day, Gandhi Jayanti and Labour Day. Employees who
cannot be spared on these holidays, will be granted a compensatory holiday with wages
on another day within a month or will be paid a day's wages in lieu thereof at the
convenience of the management
Further, those who have their weekly off on any of the above closed holidays, shall be
allowed a compensatory holiday on any day within the calendar year or one day's wage
in lieu thereof at the convenience of the management.
ii) The days observed as public holidays shall be pasted on the Notice Board.
iii) In addition, 6 days Restricted Holidays shall also be allowed which shall be availed on the
festival days as notified by the management from time to time.

15. LEAVE TO APPRENTICES/TRAINEES :

Apprentices/Trainees shall be entitled to leave as follows:-
a) Leave on full stipend upto 15 days in any year of Appenticeship/Training.
b) Leave on half stipend on medical certificate upto 20 days in any year of Apprenticeship/
Training.
c) Casual Leave upto seven days in a calendar year on full stipend.
NOTE :
If for any reasons it is proposed to terminate the Apprenticeship/Training of an appentice/
trainee, any leave which may be granted to him should not exceed beyond the date on
which the period of Apprenticeship/training is already sanctioned or extended expires or
any earlier date on which his Apprenticeship/Training may be terminated.

9.3.8
16. LEAVE TO SUBSTITUTE AND CASUAL EMPLOYEES:
Substitute/Badlis and Casual employees shall be entitled to leave as per the provisions of the
Factories Act.

17. APPLICATION FOR LEAVE :

i) A workman who desires to obtain leave of absence shall apply in writing to sanctioning
authority.
ii) Except in an emergency, applications for leave for three days or less should be made
atleast 24 hours before the time from which the leave is required.
iii) Application for leave more than three days should ordinarily be made atleast 5 working
days before the date from which the leave is required.
iv) Application for leave under clause(ii) shall be disposed off on the same day. Application
for leave under clause (iii) shall be disposed off within 3 working days.
v) The number of times in which earned leave can be taken during any year shall not exceed
four.
vi) Orders granting or refusing leave shall be passed by the authority in writing. If leave is
sanctioned, the workman shall be given a leave pass and in case leave is refused, the
reason for refusal shall be communicated to the workman in writing.
vii) All applications for leave must bear the leave address.
viii) A workman who desires to extend his leave, shall make an application in writing to the
sanctioning authority before the expiry of the leave already sanctioned.
ix) Application for leave or extending leave on medical grounds shall be supported with a
certificate from a Medical Officer of the Company's recognized hospital or where there is
no such officers, a Govt.Medical Officer, or failing him from a registered medical
practitioner stating the period for which leave is recommended. On receipt of such
application the sanctioning authority shall immediately inform the workman in writing
whether the leave or extension of leave has been granted and if so, for what period. A
workman who has been sanctioned leave or an extension of leave on medical ground for
a period exceeding fourteen days at a time, shall not be allowed to resume duty unless he
produces a certificate of fitness from the Govt.Medical Officer or the Registered Medical
practitioner, who issued the sick certificate, as the case may be. In case an employee
suffers from infectious/contagious disease and he takes leave, he will be allowed to join
duty only on production of fitness certificate from company's recognized doctor
irrespective of the duration of leave.
x) The sanctioning Authority will have the discretion to refuse, curtail or revoke leave at any
time according to the exigencies of the company's work, giving reasons for such refusal,
curtailment or revocation of leave.
xi) If the workman remains absent beyond the period of leave originally granted or
subsequently extended, he shall lose his lien on his appointment unless he :-

9.3.9
 a) returns within 8 days of the expiry of the leave and (b) explains to the satisfaction of
the (employer or the officer specified in this behalf by the employer) his inability to
return before the expiry of his leave. In case the workman loses his lien on his
appointment, he shall be entitled to be kept on the badli list.

18. CHANGE OF ADDRESS :

An employee must notify the management immediately of any change of his residential
address. Non delivery or mis-delivery of any letters or communication to the workman at the
address given by him earlier by reasons of his having changed his residence without duly
communicating the same to the management shall not be accepted as valid excuse for the non-
compliance with the order or communication as the case may be.

19. OVERTIME :
a) Subject to the provisions of the law applicable to the works, the management may require
in writing any employee to work overtime (Including work on weekly holidays and Public
holidays as provided in these Standing Orders).
b) Subject to the provisions of Law applicable to the works, an employee shall be paid
overtime allowance at the ordinary rate of wage for work done by him in excess of his
normal hours of work, but within the permissible daily/weekly limits laid down by the Law
and at twice the ordinary rate of wages for work done by him in excess of those limits, the
hourly rate of wages being calculated by dividing the total monthly wages by 208.
NOTE :
i) For the purpose of this Standing Orders, Bonus if any shall not form part of wages.
ii) In the case of Apprentices, overtime will be admissible only when they work
independently against a working post.

20. MEDICAL EXAMINATION :

The management reserves the right of getting a workman medically examined, as & when it
feels necessary in the interest of work. If during service a workman is found permanently unfit by
the authorized doctor or a Medical Board, he will be liable to be discharged from service. The
Bard's decision shall be final in this regard.

21. STOPPAGE AND SHUT-DOWN OF WORK :

a) The Management may, at any time, in the event of fire, catastrophe, breakdown of
machinery, or stoppage of power supply, epidemics, civil commotion, lock outs, strikes
affecting one or more department of the company's business, reduction of shifts and
adverse trade conditions, periodical repairs, reconstruction or extension of any other
cause beyond their control stop or shut down any works, departments or section, wholly
or partially, for any period or periods. The fact of such stoppage or shutdown shall be
notified by notice pasted on the notice board.

9.3.10
b) In the event of such stoppage or shut-down for any of the causes mentioned in clause (a)
other than a lock out or strike:-
i) If occuring during working hours, the employees affected shall be notified by notices
put up on the notice board as soon as practicable, when work will be resumed and
whether they are to remain or leave their place of work. The employee shall not
ordinarily be required to remain for more than two hours after the commencement
of the stoppage.
If the period of detention does not exceed one hour, the employees so detained
shall not be paid for the period of detention. If the period of detention exceeds one
hour, the employees so detained shall be entitled to receive wages for the whole of
the time during which they are detained as a result of the stoppage. No other
compensation shall be admissible in case of such stoppage. Whenever practicable,
reasonable notice shall be given for resumption of normal work.
ii) If the management is unable to provide work for any of the employees affected, the
management shall be entitled, without notice, to lay off from work or duty all or any
such employee or employees as the management may select for any period or
periods.
c) The Management may in the event of a strike affecting either wholly or partially any
section or department of the works, close down either wholly or partially such section or
department and any other section or department affected by such closing down. The fact
of such close down shall be notified as soon as practicable. The workmen concerned shall
also be notified by a general notice, prior to resumption of the work as to when work will
be resumed.
d) Employees in case of retrenchment or lay off, will be given benefits as provided under the
Industrial Disputes Act, 1947.

22. SAFETY PRECAUTIONS :

Employees shall observe all safety rules or orders that may be notified from time to time by
the Company and use safety equipment provided by the company.

23. SECRECY :
No workman shall take any paper, booklets, drawing, photographs, instrument, apparatus,
document or any other property of the Company out of the works premises except with the
permission of the management nor he shall be in any way pass or cause to be passed or disclosed
or cause to be disclosed any information or matter concerning the manufacturing process, trade
secrets and confidential documents of the Company to any unauthorized person, company or
corporation without the permission of the management.

9.3.11
24. BEHAVIOUR & CONDUCT :
a) An employee shall, at all times, conduct himself soberly and temperately while on the
works premises and with all proper respect and civility to all persons having any dealing
with the company and shall in all things use his best endeavour to promote the interest of
the company and to maintain and promote the good reputation thereof.
b) An employee shall avoid habitual indebtedness and where a workman applies to be or is
adjudged insolvent, he shall within 3 days report the fact to the departmental head.

25. ACTS OF MISCONDUCT :

Without prejudice to the general meaning of the terms Misconduct, the following acts and
omissions shall be treated as misconduct :-
i) Willful insubordination or disobedience, whether alone or in combination with others, to
any lawful and reasonable order of a superior.
ii) Theft, fraud or dishonesty in connection with the Company's business or property.
iii) Non-observance of safety measures or rules on the subject put upon the notice board, or
interference with safety devices or fire fighting equipment.
iv) Giving false information regarding one's name, father's name, age, qualification, previous
service, address etc., at the time of employment.
v) Habitual late attendance and/or habitual absence from duty without leave or without
sufficient cause.
vi) Neglect or negligence of duty, malingering absconding, slowing down of work or sleeping
on duty including not doing work without a reasonable cause while being present for duty
at the work spot.
vii) Transfer of identity card, medical card, to another person or frequent loss of Identity card.
viii) Taking or giving bribes or illegal gratification or indulging in corrupt practices.
ix) Assaulting or intimidating any employee or officer of the Company within the works
premises of in the Company's estate subversive of discipline.
x) Gambling, drunkenness, fighting, riotous, disorderly or indecent behaviour in the works
premises or any act subversive of discipline.
xi) Smoking in prohibited area notified by the management.
xii) Sabotage or willful damage to or loss of Company's goods or property.
xiii) Willful failure to inform the management of any contagious or notifiable disease (notified
by the management in this behalf) contracted by an employee or any person residing with
him.
xiv) Carrying on directly, indirectly or benami (a) money lending business and/or (b)other
private business prejudicial to the Company's interests.
xv) Deliberately spreading false information with a view to bring about disruption to
Company's normal work.

9.3.12
xvi) Holding meeting within the works premises or any of the premises owned by the
Company without the previous written permission of the management.
xvii) Striking work or inciting others to strike work without any provocation in contravention of
the provision of any law or rule having the force of law.
xviii) Acceptance of gifts from subordinate employees, lending or borrowing money to or from
subordinate employees.
xix) a) Unauthorized use or occupation of Company's land, quarters or properties.
b) Unauthorized sub-letting of the quarters allotted to an employee.
xx) Conviction in any court of law for any criminal offense involving moral turpitude.
xxi) Breach of any law applicable to the works.
xxii) Breach of any Standing Order.
xxiii) Collecting or canvassing for the collection of any money within the works premises
without the written permission of management or distributing or exhibiting in or about the
works premises any news papers, pamphlets, hand-bills, posters or the like without the
written permission of the management.
xxiv) Contacting another marriage (while a wife is still alive) without first obtaining the
permission of the management notwithstanding that such subsequent marriage is
permissible under the personal law for the time being in force.
xxv) Marrying any person who has a wife living without first obtaining the permission of the
management.
xxvi) Adjudged insolvency not warranting the continuance of management's trust and
confidence which the duties of the employee call for.
xxvii) Abetment or attempt to commit any of the above acts of misconduct.
xxviii) Intentionally giving false information prejudicial to the interest of the management.

26. PENALTIES FOR MISCONDUCT :

The following penalties may, for good and sufficient reasons, be imposed on employees for
misconduct:-
i) The following shall constitute minor penalties :-
(a) Censure (b) fine (c) Suspension without pay for a period not exceeding 4 days.
ii) The following shall constitute major penalties:-
a) Stoppage of increment.
b) Reduction to a lower grade or post or lower stage in a time scale.
c) Removal from services which does not disqualify for future employment.
d) Dismissal from service which disqualifies for future employment.
EXPLANATION :
Stoppage of increment at an Efficiency Bar shall not constitute a penalty.

9.3.13
27. PROCEDURE FOR DEALING WITH CASES OF MISCONDUCT
a) When an employee is charged with a misconduct which may lead to the imposition of
major penalty, he shall be informed in writing of the allegations against him and within a
period of not less than 7 days. On receipt of the employees explanation where the
allegations are denied by him, an enquiry shall beheld by an officer or officers nominated
by the management. Such enquiry shall be conducted by an officer other than the officer
who has either reported the alleged misconduct or has issued the charge-sheet. At the
enquiry, the employee concerned shall be afforded reasonable opportunity of explaining
and defending his action with the assistance of a fellow workman. Where such enquiry
relates to the alleged misconduct of several employees, the enquiry may be held for all the
employees together. Copies of all relevant document in proceedings, findings of the
Enquiry Officer etc.shall be supplied by the management to the employee concerned on
request.
b) Where an employee is charged with serious misconduct and it is not considered desirable
that he should remain on duty, he may be suspended from duty pending enquiry. The
order of suspension shall be given in writing and shall be followed within 7 days by a
charge sheet setting out in precise terms the misconduct alleged against him. During the
period of suspension, an employee shall not enter the works premises except with the
permission of the management nor shall he leave the station without the permission of the
management.
c) If during the enquiry it is found that the employee is guilty of a misconduct other than that
stated in the order of suspension and/or the charge sheet, the employee shall be liable to
punishment for such misconduct but before any punishment is imposed on him, he shall
be afforded a reasonable opportunity of explaining and defending his action in respect of
such misconduct.
d) Where any workman is suspended by the employer, pending investigation or inquiry into
the complaints or charges of misconduct against him, the employer shall pay to such
workman subsistence allowance -
(a) at the rate of fifty percent of the wages which the workman was entitled to
immediately preceding the date of such suspension, for the first ninety days of
suspension; and
(b) at the rate of seventyfive percent of such wages for the remaining period of
suspension if the delay in the completion of disciplinary proceedings against such
workman is not directly attributable to the conduct of such workman.
The payment of subsistence allowance will be subject to a written declaration by the
employee that he is not engaged in any other employment, business, profession or
vocation.
e) If, after enquiry, an employee is adjudged guilty of the misconduct alleged against him or
some other misconduct brought out in the course of the enquiry and punishment is
awarded, the employee shall not be entitled to any remuneration for such period other
than the subsistence allowance already paid to him. If a penalty other than dismissal or a

9.3.14
 removal is imposed on him, the punishment authority shall by order decide as to how the
period of suspension shall be treated if however, he i found not guilty of the alleged
misconduct or any other misconduct, he shall be reinstated in his post and shall be paid
the difference between the subsistence allowance already paid and the emoluments which
he would have received if he had not been suspended, the period of suspension being
treated as duty.
f) No order of removal or dismissal from service shall be made by an authority lower than
the appointing authority of the employee. In awarding the punishment, the management
shall take into account the gravity of the misconduct, the previous record of the workman
and any extenuating or aggravating circumstances that may exist. A copy each of the
orders passed by the management shall be supplied to the workman concerned.
g) If an employee refuses to accept a charge-sheet or order of other communication served
on him in accordance with these standing orders, a copy thereof shall be sent by
Registered Post to his address as recorded by the management and another copy pasted
on the Notice Board, and this shall constitute adequate service.
h) Subject to the provisions contained in clause (d) & (e) above, the Company reserves the
right to suspend an employee accused in a Court of Law for any criminal offence
involving moral turpitude until the disposal of the trial

28. PROVISION REGARDING EMPLOYEES BORROWED FROM

OTHER SOURCES.:
In the application of these standing orders in relation to the employees whose services have
been borrowed by the company from another organization and who retain a lien on their parent
organization, the operation of these standing orders shall be subject to the terms and conditions on
which their services have been loaned to the company.

29. APPEAL :
The authorities competent to impose various penalties mentioned in standing order no.26 as
well as appellate authorities shall be notified by the management from time to time. An employee
on whom any of the penalties is imposed, shall have the right of appeal to the authority notified in
this behalf. The appeal shall be submitted within 30 days of receipt of the order of the punishing
authority and the appellate authority shall dispose of the appeal within 30 days of receipt of the
appeal. At the enquiry, if any, held in connection with the appeal, the employee concerned shall be
afforded reasonable opportunity of explaining and defending his action with the assistance of co-
worker.

30. DISCHARGE OR TERMINATION OF SERVICE -

Except as provided specifically in the contract of service or standing order No.31, the services
of employees may be terminated under the following conditiions:-

9.3.15
i) In the case of permanent employee by giving one month's notice in writing or on payment
of one month's basic pay and DA.in lieu thereof from either side, unless the terms of
appointment stipulate for a longer period of notice which shall be followed.
ii) No notice or pay in lieu of notice shall be necessary in the case of casual workmen. The
employment of a temporary workman shall be subject to termination on such notice, in
writing from either side as may be provided in the letter of appointment.
iii) The termination of service of apprentices and trainees will, however, be determined in
accordance with the terms of agreement to be arrived at between them and the company.
iv) Where the employment of any workman is terminated, all wages earned and unpaid shall
be paid to him within the period of time prescribed under the Payment of Wages Act,
1936.
v) Notwithstanding anything contained in the order, no notice shall be necessary if
termination of service is under an agreement which has a specific date for such
termination.
vi) If any workman, who has been laid off, fails to report without sufficient reason within eight
days of posting of the recall notice or of being otherwise notified, shall lien on his
appointment and his services shall automatically stand terminated.
vii) No notice shall be necessary for terminating the employment of a substitute or badli.

31. RESIGNATION :
a) Employees, other than those who have executed a bond to serve the company for a
specific period who wish to leave the company's service, must give the company the same
notice as the company is required to give them under standing order No.30. The
management may at its discretion accept the resignation with immediate effect or from
any time before expiry of the notice period.
b) If an employee leaves the services of the company without giving requisite notice without
prejudice to any other action under his contract of service, if any, the management may
deduct from unpaid wage, a sum equivalent to the period of notice which he is required to
give under clause (a).

32. SERVICE CERTIFICATE :

Every employee shall be entitled to a service certificate at the time of termination of his
service as a result of resignation, retirement, discharge or dismissal for which he shall have to apply
in writing.

33. LIABILITY OF THE MANAGEMENT :

The Chief Executive or any other responsible officer nominated by him shall be held
responsible for the proper and faithful observance of these standing orders.

9.3.16
34. EXHIBITION AND SUPPLY OF STANDING ORDERS :
A copy of these Standing Orders in English as well as in regional language shall be pasted on
the main notice board and shall be kept in a legible condition. A copy of these standing orders shall
be supplied to each workman on demand.

35. INTERPRETATION OF STANDING ORDERS :

If there is any conflict between the standing order in English and those in any other language
or languages, the English version shall prevail and be followed.

36. SAVINGS :
Nothing contained on these standing orders shall operate in derogation of any law or to the
prejudice of any right under written contract of services, settlement or award for the time being in
force nor shall any agreements or award between the employer and the workman prejudicially
affect the rights of the workmen under these standing orders.

9.3.17
 10.0

MISCELLANEOUS
 RULES REGARDING CHANGE OF NAME

1.0 OBJECTIVE
To regulate matters concerning change of Name of employees and matters connected
therewith.

2.0 COVERAGE
These rules shall be applicable to all employees of Ferro Scrap Nigam Limited.

3.0 SCOPE
These rules shall be followed in respect of change in Name whether consequent to change
of religion or otherwise.
EXPLANATION
i) Name shall be construed as including Surname.
ii) Change in Name shall mean addition, alteration or deletion in the Name of an
employee.
iii) Alteration in spellings shall also constitute a change in Name.

4.0 DEFINITIONS
4.1 Company means Ferro Scrap Nigam Limited and the Plants/Units/Offices under its
charge.
4.2 Employee means person employed by the company including those under probation,
but does not include casual or part-time employee or trainee.

5.0 PROCEDURE
5.1 Employee desirous of changing his/her Name shall be required to take the following steps
prior to making a request to the company for recording the change in his/her name.
i) To swear an affidavit before a First Class Magistrate in support of the proposed
change in Name; and
ii) To get the copy of such Affidavit published in the official gazette of the State
concerned and also in a local language news paper having vide circulation.
5.2 The employee shall, thereafter, submit to his Controlling Officer, an application for change
of Name alongwith the printed copy of the notification in the State Gazette, as also the
Affidavit in original alongwith Newspaper cutting.
5.3 The Company shall not entertain requests for change of Name unless the concerned
employee has taken above step as mentioned in clauses 5.1 & 5.2.

10.1.1
5.4 Application for change of Name shall be scrutinised by the respective Officer and shall be
placed before the concerned controlling officer who will forward the application with his
recommendation to the Head of the Personnel Deptt for his approval.

6.0 CHANGE OF SURNAME OF FEMALE EMPLOYEES AFTER

MARRIAGE
6.1 Above procedure shall not apply to female employee who wishes to change her name
after marriage. A female employee shall be allowed to change name after her marriage on
the basis of written request to that effect giving particulars of her marriage. Such change
may be allowed with her approval of the Controlling Officer/Head of Deptt.

7.0 The Company reserves to itself the right to modify, cancel or amend any of the
rules without prior notice.

10.1.2
 PROCEDURE FOR WEEDING OUT OF OLD RECORDS,
RECORD RETENTION & DESTRUCTION

I. OBJECTIVE :
The objective of the procedure is to transfer records to the Central Records Room,
preserve them for specified time and weed them out successively and systematically so
that the offices are not cluttered with dead records.

II. SCOPE :
The procedure for record retention/ destruction will be applicable to all the Departments
of Corporate Office & Units.

III. PROCEDURE :
A) Closure of files:
Whenever action on the file or register or other record is complete in all respects,
the same should be treated as closed and considered fit for transfer to a separate
place earmarked in the Section/Department, as per criteria mentioned in Annexure-
I.
B) Weeding out files/records
i) The departmental head will take action to sort out the records which are due
for destruction, in accordance with the retention period given in Annexure-I,
and inform to the Administration department for taking action for destruction
of the files/registers.
ii) Any such record/file/register for which retention period has not been worked
out/mentioned in Annexure-I, the concerned departmental head, in
consultation with Law Department, will fix-up retention period for the same,
and after expiry of such retention period, he will inform Administration
department for taking action for destruction of the same.
C) The Secret & confidential records will be retained with the Heads of Departments.
However, these records may be burnt only after recommendations of a Committee,
to be constituted by M.D., and subsequent approval thereof by the competent
authority. Other records may be disposed of in any other suitable manner also.
D) An exhaustive list of all those documents which are required to be destroyed/burnt,
will be prepared by the departmental head on expiry of retention period of such
documents, and will be provided to Administration department for records.
E) (a) Where the records are not to be retained permanently, specific retention
period should be fixed with regard to legal needs and other relevant factors.

10.2.1
 (b) Normally the retention period of non-permanent records should not exceed 35
years. Most records may have retention period between 5 and 15 years.
(c) Retention period is to be counted from the date of closing of files or record
and not from the date of its opening.
F) Where it is considered advisable to condense the data in the records proposed to be
destroyed, this will be done by the officers concerned and such data will be kept in
a proforma to be fixed by the Head of the Department.

IV. NATURE OF RECORDS NOT TO BE DESTROYED :

(a) Records which are important or likely to become important in future, as a source of
information on any aspect of technical or technological or scientific research in the
production or maintenance process, should not be destroyed.
(b) Files/papers/records which are required in court case or are likely to be required in
the court as they are currently disputed, should not be destroyed.
(c) The following types of records should, on no account, be destroyed:-
(i) Records connected with expenditure which is within the period of limitation
fixed by law;
(ii) Records connected with expenditure on projects, schemes or works not
completed although beyond the period of limitation fixed by law;
(iii) Orders and sanctions of a permanent character until revised.
(iv) Files containing papers which are important or likely to become important in
future, however indirectly, as sources of information on any aspect of history
whether political, social, economic, etc., or which are or may in future prove
to be of biographical or antiquarian interest.

V. PRESERVATION OF FILES/RECORDS :
(a) Record notes of all discussions & minutes of meetings, negotiations etc., which
ultimately lead to the finalization of contracts, agreements and such other important
documents, should be properly attested and maintained preferably in the same
manner in which the minutes of the Board Meetings are recorded and maintained
under the Companies Act.
(b) Vouchers, records, papers, etc., on the basis of which the books of account
(pertaining to receipts and expenditure) are prepared, should be preserved for 8
years, i.e., "as long as a book of account to which they are related are required to
be kept."
(c) The following shall be preserved for not less than the period specified against each:-
(i) Files, papers and documents leading and relating to contracts and agreements
etc. - 5 years after the contract/agreement is fulfilled or terminated.

10.2.2
 (ii) In case where Audit OR Vigilance objections have been raised - the relevant
files and documents shall not, in any circumstances, be allowed to be
destroyed till such time as the objections have been cleared to the satisfaction
of the audit authorities or Vigilance authorities, as the case may be, or have
been reviewed by the Committee on Public Undertakings.
(iii) In the case of disputed contracts - till the dispute is settled either mutually or
through a court of law or arbitration, whichever is later.

VI.AMENDMENTS/ALTERATIONS
M.D.will be the competent authority for amendment/alteration in the above procedure.

m m m

10.2.3
 ANNEXURE-I
PERSONNEL & ADMINISTRATION DEPARTMENT

Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

1. Attendance register at the end of 3 -

the calendar year
2. Leave roster and grant of -"- 3 -
casual leave (including casual
leave, festival leave,
compensatory off, account)
3. Receipt Dak Register -"- 3 -
4. Issue/Despatch-dak register -"- 3 -
5. File movement register -"- 1 -
6. Post Office receipt for -"- 3 2
telegrams,registered letters, etc.
7. File headings and index -"- 3 Permanent
files register
8. Imprest Cash book -"- 3 6
9. Overtime allowance claims -"- 3 3
(register and lists received
from section)
10. Telephone call bills, electric -"- 3 2
clocks, installation shifting
transfer, payment of bills.
11. Assets register -"- 3 Permanent
12. Register for issue of stationery. -"- 1 -
13. Register for cases sent to central -"- Permanent -
record room or destroyed.
14. Personal files 3 Years 7 years (after struck off
When the employee is struck strength)
off strength of the company or
death/retrenchment
15. Officiating & regular promotion Yearly 3 years 11 years
order files
16. C.R.Dossiars/M.R.forms Yearly 3 Years Permanent
17. Pay fixation file Yearly 3 Years 12 Years
18. Disciplinary cases When the case 3 Years 12 Years
is finalized

10.2.4
PERSONNEL & ADMINISTRATION (Page-2)
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

19. Court cases When the case is 3 Years 2 years(after disposal

finally decided by of the case by the
the appellatecourt. highest appellate
court) but judgments
ments are to be
retained permanently.
20. Creation/continuation of posts Yearly 3 Years Permanent
21. Appointment Register Yearly 3 Years 6 Years
22. Posting/Transfer Yearly 3 Years 6 Years
23. Advance files Yearly 3 Years 7 Years
24. Circulars/orders Yearly 3 Years Permanent
25. Recruitment of W/C staff/NMR Yearly 3 Years 7 Years
26. Correspondance regarding Yearly 3 Years 7 Years
W/C/NMR
27. Retrenchment/deployment On completion 3 Years 10 Years
of staff of action.
28. Staff position Yearly 3 Years 1 Year
29. Sanction of leave(EL/ HPL etc.) Yearly 1 Year -
30. Grievances On closing of action. 1 Year 6 Years
31. Strength register When full 3 Years Permanent
32. Grievance register When full 3 Years 6 Years
33. Photo pass register When full 3 Years Till renewal
34. Medical card register When full 3 Years Permanent
35. Confidential register of When filled 3 Years 1 Year
diary & despatch.
36. Retrenchment register When filled 3 Years Permanent
37. Leave encashment register Yearly 3 Years 9 Yeas
38. Festival and other advance Yearly 3 Years 1 Year
39. Reports & returns register/files Yearly 3 Years 2 Years
40. N.M.R.Sanction register Yearly 3 Years 4 Years

41. Delegation of powers/working Yearly 3 Years Permanent

arrangements
42. Manning file Yearly 3 Years 7 Years
43. Liveries/Washing allowance Yearly 3 Years 2 Years
44. Visit of outsiders Yearly 3 Years 2 Years

10.2.5
PERSONNEL & ADMINISTRATION (Page-3)
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

45. Nomination for seminars/ Yearly 3 Years 2 Years

committees/lectures etc.
46. Minutes of various committee's 3 Years 2 Years Yearly
meeting & correspondence there of
47. Incentive scheme implementa- 3 Years 7 Years Yearly
tion/revision and other
correspondence
48. Reports & Returns Yearly 3 Years 2 Years
49. Manning/organization of a unit Yearly 3 Years 7 Years
50. Correspondence of LOP/ training Yearly 3 Years 4 Years
51. Management development Yearly 3 Years 2 Years
programmes
52. Wage Structure Yearly 3 Years 7 Years
53. Departmental enquiry Yearly 3 Years 7 Years
54. Farewell party Yearly 3 Years 1 Year
55. Space allocation Yearly 3 Years 4 Years
56. Press conference Yearly 3 Years 1 Year
57. Allotment of vehicle Yearly 3 Years 2 Years
58. Corresopondence with outside Yearly 3 Years 2 Years
parties/inter plant
basis/HO/Govt.etc.
59. Development schemes/expansion Yearly 3 Years 2 Years
of the plant/ project
report/progress work etc.
60. Stationery & forms Yearly 3 Years -
61. Furnishing of information to Yearly 3 Years Permanent
HO/Ministry/Other units
62. Correspondence with local Yearly 3 Years 2 Years
industries/State Govt.
63. Higher studies Yearly 3 Years 7 Years
64. Orders & Circulars Yearly 3 Years 4 Years
65. Correspondence relating to Yearly 3 Years 4 Years
accidents/safety etc.
66. Job description/ job evaluation/ Yearly 3 Years Permanent
upgradation etc.

10.2.6
PERSONNEL & ADMINISTRATION (Page-4)
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

PUBLIC RELATIONS
1. Visits Yearly 3 Years 1 Year
Company guests/casual visits
2. Advertisements Yearly 3 Years 1 Year
Tender notices/situation vacant
3. Photographic materials Yearly 3 Years 1 Year
Films/papers/chemicals
4. Magazines Yearly 3 Years 7 Years
5. Printing of publications Yearly 3 Years 2 Years
6. Publicity press release/ supply of Yearly 3 Years 2 Years
photographs/ literatures
7. Furniture Yearly 3 Years 3 Years
8. Advertisement register Yearly 3 Years 1 Year
9. Canteen coupons account register Yearly 3 Years 2 Years
10. Visitors register Yearly 3 Years -

CONSTRUCTION
1. Allotment of quarter to staff 3 Years Permanent
When action is complete
2. Furniture register Yearly 3 Years Permanent
3. LIC premium recovery register When filled-in 3 Years Permanent
4. Parliament question Yearly 3 Years 5 Years
5. General/Miscellaneous Yearly 3 Years 3 Years
6. Quarter allotment register When filled-in 3 Years Permanent

INDUSTRIAL RELATION
1. Correspondence with various Yearly3 Years 15 Yeas
co-operative societies/stores
2. Accidents Yearly 3 Years 5 Years
3. Complaints/trade unions Yearly 3 Years 5 Years
4. Committee references Yearly 3 Years 5 Years
5. Workers' education Yearly 3 Years 1 Year

10.2.7
 FINANCE & ACCOUNTS DEPARTMENT
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

1. Reports and estimate committee 3 years Permanent

PAC & other Parliament
committee pertaining to FSNL
2. Agreements contracts and reports. 3 Years Permanent
3. Important policy decisions 3 Years Permanent
4. Accounting documents relating After the A/T of 3 Years 5 Years
to purchase & stores contract is fully
satisfied.
5. Audit objections, notes & reports After settlement 3 Years 2 Years
(after the settlement of report)
6. Works registers after completion After the work is 3 Years 5 Years
of work completed
7. Declaration of nomination of On retirement/
CPF by contributors death 3 Years 10 Years after the
employee has been
struck off strength
from the company
or retrenchment/
death.
8. Results of departmental Examinationwise 3 Years 5 Years
examination. file
9. Arbitration & litigation cases After judgment 3 Years 5 years after disposal
of the case by the
highest appellate
court but judgment
of the cases should
be retained
permanently.
INTERNAL AUDIT SEC.
1. Internal audit register After action 3 Years 7 Years
2. Internal audit programme Yearly 3 Years 2 Years
3. G.M's report file Yearly 3 Years 7 Years
4. RAO's inspection report When objections 3 Years 7 Years
are cleared
CENTRAL ACCOUNTS
1. Reports & Returns Yearly 3 Years 7 Years
2. Correspondence relating to Yearly 3 Years 7 Years
accounting with local, HO,
Govt. & Semi-Govt.

10.2.8
FINANCE & ACCOUNTS (Page-2)
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

3. Write-off/annual closing of Yearly 3 Years 4 Years

account/credit-debit account/
cash requirement etc.
4. Estimate committee on public Yearly 3 Years 4 Years
sector undertaking
5. Other type of accounts etc. Yearly 3 Years 4 Years
6. Tour programmes At the end of the 1 Year -
calendar year
7. Tour notes At the end of the 3 Years -
calendar year
8. Conveyance Allowance register When filled 3 Years 1 Year
9. Visit of officials to other Yearly 3 Years 2 Years
plant/places
10. Budget register Yearly 3 Years 2 Years

CPF SECTION
1. Personal files Death/retirement 3 Years 10 Years after the
date the employee
has been struck of
strength.

STOCK VERIFICATION
1. Field book control register Yearly 3 Years 2 Years
2. Discrepancy register Yearly 3 Years 7 Years
3. Completion report register Yearly 3 Years 2 Years
4. Vigilance check report register Yearly 3 Years 2 Years
5. Field book register Yearly 3 Years 2 Years
6. Check slip register Yearly 3 Years 2 Years

10.2.9
 STORES & PURCHASE DEPARTMENT
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

STORES
1. Railway receipt register After all the RRS are 3 Years 7 Years
linked, material taken
on charge & RRs
surrendered to Rly.
2. Delivery advice files for smalls & After DAs are linked 3 Years -
full wages. materials taken on
charge or claim
cases settled.
3. Freight demand register Till all the claims on 3 Years 7 Years
& railway freight bills railways are settled.
4. Wagon registers After all the wagons 3 Years 2 Years
are linked & taken
on charge
5. Wagon placement advice Yearly 3 Years -
6. Wagon labels, seals Till the settlement 2 Years -
of claim
7. Outward despatch register of After linking all 3 Years 2 Years
small & full wagons despatch
8. Convey note control register After full & 3 Years 2 Years
(of Receipt section) entries tally
9. Indemnity Bond register When filled in & 3 Years 2 Years
cases are linked
10. Post parcel register After all parcels are 3 Years 2 Years
linked & taken charge
11. Receipt Register - do - 3 Years 2 Years
12. RR control register From the last entry 3 Years 7 Years
13. Rejection register After all the rejec- 3 Years 7 Years
tion cases are settled
14. Purchase order/AT files of receipt After completion of 3 Years 5 years after the
supplies & stores taken on charge contract is fully
satisfied & ompleted.
section.
15. Bin Card-Nil cards-Balance cards Last stock taking 3 Years 5 Years
after completed sheet 3 Years 7 Years
16. Group copies of R.Ns Yearly 3 Years 2 Years
17. Group copies of issue vouchers Yearly 3 Years 2 Years
MTNs, TEOs

10.2.10
STORES & PURCHASE (Page-2)
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

18. Issue control, MTN control, When full & no 3 Years 2 Years
Receipt control, TEO dispute in any case
control register
19. Acetylene challan register - do - 3 Years 2 Years
20. Daily stock register of cylinders -do - 3 Years 2 Years
21. Petrol/HSD issue register - do - 3 Years 2 Years
22. M.Book After complete 3 Years 5 Years after
settlement of the contract is
bills/ contract fully satisfied.
23. Write off of sanction of losses Yearly 3 Years 5 Years after the
(amount less than 1000) contract is fully
satisfied.
24. Contractor's bills & register Yearly 3 Years 5 Years after the
contract is fully
satisfied.
25. Agreements, contracts, deeds etc. Yearly 3 Years Permanent
26. Procurement files Yearly 3 Years 4 Years
27. Procurement progress register Yearly 3 Years 4 Years
28. Procurement progress cards After all the supplies 3 Years 2 Years
in card have
materalized
29. Files relating to surplus reports & After date of sale 3 Years 2 Years
sale disposal of surplus stores
30. Office copies of stores requisition
Consumable items Yearly 3 Years 2 Years
Capital items Yearly 3 Years 4 Years
31. Audit objection, notes, para etc. After settlement of 3 Years 2 Years
audit points
32. Stores procedure file Yearly 3 Years Permanent
33. Gate passes When a book 3 Years 2 Years
is complete

PURCHASE
1. Indent Register After indents in the 3 Years 2 Years
register are converted
by A/Ts
2. Stores requisition register After all the issues are 13 Years 2 Years
(A/T wise) accounted with
supplies

10.2.11
STORES & PURCHASE (Page-3)
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

3. Stores requisition register Yearly 3 Years 2 Years

4 (A) Cases with no complications After completion of 3 Years 1 Year
within the powers if CPOS order & payment
involving purchase of general available to the party
& maint.stores. in full
(B) Purchase committee cases - do - 3 Years 1 Year
(C) Cases involving legal After full settlement 3 Years 5 Years after the
action, arbitration, vigilance, of case & approval contract is fully
CBI etc. of COPS satisfied & completed
(D) Cases involving development After full development 3 Years 2 Years
of an item
(E) Cases involving perspective After receipt of 3 Years 1 Year
planning material & payment
to party in full
(F) Cases in which purchase Yearly 3 Years Permanent
policy decisions are taken
(G) Cases involving RAO's audit - do - 3 Years 7 Years
objection & paras
(H) Cass involving rejected 3 Years - After settlement
stores & later on brought
on charge
(I) Cases involving import After receipt of 3 Years 7 Years
of items material and payment
(J) Cases involving purchase - do - 3 Years 2 Years
of capital items
5. Files relating to registration Yearly 3 Years Permanent
of firms
6. Files relating to Black listing Yearly 3 Years Permanent
of firm
7. Files relating to temporary Yearly/after expiry 3 Years 1 Year
suspension of firms of suspension
8. Purchase progress report Supply completion 3 Years -
9. List of approved suppliers - 3 Years Permanent
10. Sample room register/file After completion 2 Years -
of action on
the sample

10.2.12
STORES & PURCHASE (Page-4)
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

CLAIMS
1. New claim file Yearly 3 Years 2 Years
2. Cheque register Yearly 3 Years 2 Years
3. Minutes of the meeting Yearly 3 Years Permanent
with Rlys register
4. Claim advice index register Yearly 3 Years Permanent
5. Rly.receipt index register Yearly 3 Years Permanent
6. Claim register Yearly 3 Years Permanent
7. Freight/diversion/progress register Yearly 3 Years Permanent
8. Disallowance register Yearly 3 Years Permanent
9. Premium bill register Yearly 3 Years Permanent
10. Misdelivery index register Yearly 3 Years Permanent
11. Correspondence regarding claims Yearly 3 Years 2 Years after
settlement of claim
12. Correspondence regarding rates & Yearly 3 Years 2 Years after
refunds, test weighment, settlement of claim
defective sleepers
13. Correspondence regarding raw Yearly 3 Years - do -
material coal claims
14. Correspondence regarding claims Yearly 3 Years - do -
of general stores
15. Correspondence regarding Yearly 3 Years - do -
inland insurance
16. Policy matters Yearly 3 Years Permanent
17. Import claims Yearly 3 Years 4 Years
18. Misdelivered & unconnected Yearly 3 Years -
wagon
19. Involved goods claim Yearly 3 Years 2 Years
20. Outward booking Yearly 3 Years 2 Years
21. Sl.wise claims under the When 3 Years 2 Years
heads IV to XI finalized

10.2.13
STORES & PURCHASE (Page-5)
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

CONTRACTS
1. Correspondence/award of After the final 3 Years 5 Years after the
contracts relating to loading, execution of work contract is fully
unloading, transportation, satisfied & completed.
stacking repairs vulcanising,
body building of equipments etc.
2. Correspondence relating to Yearly 3 Years 4 Years
additions/alterations/
modifications/changes etc.
and its approval/sanction.
3. Contract awarded register When full 3 Years 5 Years after the
contract is fully
satisfied & completed.
4. Work order register When full 3 Years - do -
5. Earnest money deposit register When full 3 Years - do -
6. Agreement register When full 3 Years - do -
7. Contractors particular register When full 3 Years - do -
8. Quotation/tender register When full 3 Years - do -
9. Write-off sanction register When full 3 Years 17 Years
10. Imprest accounts register When full 3 Years 7 Years
11. Administrative approval & When filled-in 3 Years 4 Years
Technical sanction register

RAW MATERIALS
1. Correspondence regarding Yearly 3 Years 7 Years
requirements, supply, progress
of supply and other related
matters of raw materials.
2. Correspondence relating to Yearly 3 Years 5 Years
purchase and stores
3. Correspondence relating to Yearly 3 Years 7 Years
production/fulfillment/ breakdown
repairs/ modification/repairs/
maintenance etc.
4. Correspondence relating to sales Yearly 3 Years 4 Years
of plant products

10.2.14
 LAW DEPARTMENT
Main head of the file/ When does it close Retention period after closure of
register file/register
In the deptt. After transfer to
(Years) record room(Yrs)

1. Court cases After 3 Years 5 Years after disposal

judgment of the case by the
highest appellate
court, but the
judgments of all the
cases should be
retained permanently.
2. Royalty files Yearly 3 years 5 Years
3. Royalty register Does not arise 3 years 5 years
4. Library/News Papers Yearly 3 Years 1 Year
5. Subscriptions: Yearly 3 Years 2 Years
News papers/journals/
books etc.

10.2.15