Cabinet okays Rs 660cr bonus for Railways staff

The Union Cabinet today approved the payment of a productivity-linked bonus, equivalent to 70 days wages, to eligible non gazetted Indian Railways employees for 2006-07.

The Indian Railways is the country's largest employer.

The bonus would cost the Railways Rs 660 crore and would be distributed among 1.33 million group C&D employees. The bonus has been calculated on the basis of the formula approved by the Cabinet at a meeting held on September 23, 2000. However, Railway Protection Force and Railway Protection Special Force personnel have been excluded from payment.

In addition, the Cabinet also approved Rs 63.20 crore as budgetary support to a dozen central public sector undertakings. The funds would go towards liquidating outstanding statutory dues, paying salaries and wages for the period up to June 30, 2007. The beneficiaries include HMT, HMT
(Watches) and Hindustan Photo Films, Andrew Yule & Co, Bharat Wagon Engg Co, Hindustan Cables, HMT (CW), Instrumentation, National Instruments, NEPA, Triveni Structurals and Tungbhadra Steel Products.

The Cabinet also cleared the winding up of public sector Bharat Yantra Nigam. It also approved waiver of loans and interest.

The Cabinet approved the signing of extradition treaty between India and Australia as well.

Ex post facto approval was given for amending the agreement between India and Bulgaria for the promotion and protection of investments, signed on September 12, 2007. The decision will enable Bulgaria to comply with its obligations as a member of the European Union.

The Cabinet further okayed the insertion of new articles in the existing Air Services Agreement between the India government and the Government of Denmark, Norway and Sweden. Amongst other clauses, Article 15 (Aviation Security) has been re-drafted according to India's model standard clause and also another article has been introduced with regard to safety provision.

The agreement between India and Poland in the field of health and medicine was also given the green signal.