7th Central Pay Commission gets four more months to submit report

Cabinet also clears differential royalty to States on discovered oil fields

New Delhi, August 25:  

The Seventh Central Pay Commission has been granted a four-month extension to submit its recommendations, after the Union Cabinet approved the decision on Wednesday.

The commission, which reviews pay scales of about 48 lakh Central government employees and 55 lakh pensioners, was constituted on February 28, 2014 by the UPA government and was supposed to submit its recommendations by August 27.

However, the commission had asked for a four-month extension due to the ‘volume of work’ and ‘intensive stakeholder consultations’. As a result of the Cabinet decision, the request stands granted. 

Royalty to States

In a separate decision, the Cabinet Committee on Economic Affairs approved a proposal for differential royalty payment to State governments of 28 discovered oil fields in Arunachal Pradesh, Assam and Gujarat.

The fields were awarded in 1994-95, 2001 and 2004. The differential royalty is the difference between the rates as per provisions in the respective production sharing contracts.

“The payment shall be through budgetary allocation instead of through Oil Industry Development Board (OIDB) fund from the year 2015-16,” an official statement said.

The expected expenditure for 2015-16 has been estimated at ₹56 crore comprising ₹30 crore for Arunachal Pradesh and ₹26 crore for Gujarat. The calculations from the government are based on the assumption of crude oil price being $50 per barrel and one US dollar being equal to ₹60.

The Standing Committee on Petroleum & Natural Gas had also recommended such a move to ensure proper utilisation of OIDB fund. 

Arbitration Bill

The Cabinet also approved amendments to the Arbitration and Conciliation Bill, 2015, by taking into consideration the Law Commission’s recommendations and suggestions from stakeholders.

As per the amendments, the government proposes to ensure neutrality of arbitrators by making it mandatory for the person to disclose any relationship or interest of any kind before being appointed as an arbitrator.

Further, the arbitration tribunal shall make its award within 12 months, although parties may extend such a period by up to six months. Further extension can only be done by the Court, on sufficient cause. 

Other decisions

The Union Cabinet also approved the agreement on legal and judicial cooperation in civil and commercial mattes for the service of summons, judicial documents, commissions, execution of judgements and arbitral awards between India and Afghanistan. Approval was also granted to a similar agreement with Oman.

Further, the Cabinet, on the advice from the National Commission for Backward Classes, agreed to include two castes/communities from Gujarat and Uttarakhand into the Central list of other backward classes. 

(This article was published on August 26, 2015) 

-The Hindu Business line