SCHEME FOR COUNSELLING,
RETRAINING AND
REDEPLOYMENT OF RATIONALISED EMPLOYEES OF CENTRAL
PUBLIC SECTOR ENTERPRISES
1. OBJECTIVE :
The
objective and scope of the Counselling, Retraining
and Redeployment Scheme (CRR) is to provide opportunities of counselling, retraining and redeployment to the separated
employees of Central Public Sector Enterprises (CPSEs) rendered surplus as a
result of modernization, technology upgradation and
manpower restructuring in the PSEs. The aim of retraining of the employees is to
reorient them through short duration training programmes
to enable them to adjust to the new environment and adopt new avocations after
their separation from the PSEs due to VRS/VSS or
retrenchment due to closure / restructuring of the enterprise. While it will not be possible to commit that
the employees so restructured or retrenched would be provided with alternative
employment, yet it should be desirable to reorient such employees so that they
may engage themselves in income generating activities and take advantage of
available opportunities of self-employment.
The counselling and training programmes will accordingly be planned in order to equip
them with skills and orientation to engage themselves in self-employment
activities and rejoin the productive process even after their separation from
the CPSEs. Redeployment of rationalized employees in gainful activities implies
that they have been brought into the mainstream of economy. This also implies
that they are contributing to national income. Self-employment of VRS optees results in multiplier effect as it provides avenues
for additional employment generation.
2. BACKGROUND
2.1 Government had setup a National Renewal Fund (NRF)
in February, 1992 as a safety net for workers affected by re-structuring
arising out of the new industrial policy. The objective of NRF was to provide
funds, where necessary, for continuation of employees affected by restructuring
or closure of industrial units both in the public and private sector and to
provide funds for employment generation schemes both in the organized and
unorganized sectors in order to provide social safety net. Counselling,
Retraining and Redeployment of rationalized employees formed a part of
NRF. NRF had been meeting expenses
towards voluntary retirement of employees of CPSEs as also for rehabilitation
of employees of the organized sector consisting of CPSEs, State PSEs and private sector.
2.2 The Voluntary Retirement Scheme (VRS) for
employees of central PSEs was revised in May 2000.
With the revision of VRS Scheme, the NRF being administered by the Department of
Industrial Policy & Promotion ceased to exist and the activities of
counseling, retraining and redeployment provided to separated employees from
CPSEs and the organized sector under NRF converged under the Scheme of Counselling, Retraining and Redeployment (
3. SALIENT
FEATURES OF THE SCHEME
The CRR Scheme consists of
three main elements as follows:-
3.1 Counselling: Counselling is the basic pre-requisite of the
rehabilitation programme of the separated
employee. The separated employee needs
psychological counselling to absorb the trauma of
loss of assured livelihood and to face the new challenges both for himself and
for the members of his family who may continue to depend upon him. He particularly needs support to plan his
compensation amount and other financial benefits he receives from the CPSE due
to his separation, so that his limited funds are managed prudently and not
wasted on immediate consumption or non-productive expenditure. Thirdly he needs to be made aware of the new
environment of market opportunities so that he may, depending upon his aptitude
and expertise, take up economic activities and continue to be in the production
process.
3.2 Retraining: The
objective of such training is to help the rationalized employees for
rehabilitation. The trainees will be helped to acquire necessary
skills/expertise/ orientation to start new avocations and re-enter the
productive process after loss of their jobs.
These training programmes will be short
duration programmes ranging between 30/45/60 days
according to the trade or activity as decided.
3.3 Redeployment: It
will be the endeavour to redeploy such rationalized
employees in the production process through the counselling
and retraining efforts. At the end of
the programme VRS optees
should be able to engage themselves in alternate vocations of self-employment.
Although there cannot be any guarantee that the rationalized employee will be
assured of alternate employment, yet possible help from the identified nodal
training agencies as well as from the concerned CPSEs would be extended to them
for starting new avocations. Depending
upon the choice of the trainee the nodal agency / CPSE will also sponsor their
applications for seeking financial assistance from commercial banks and other
institutions under various schemes of self-employment.
3.4 Eligibility: In order to be eligible to be
included in the Scheme the VRS optee should be below
58 years of age. The focus of the scheme would be to extend the benefit to VRS optees. One person per
family of a VRS optee could also be considered in
lieu of eligible VRS optee if the optee
himself is not coming forward. However, VRs optees would be given
priority over the family members. Following eligibility criteria will apply for
including the dependents of VRS optees under CRR
Scheme:-
-
Minimum age – 18 years.
-
Maximum age – 58 years.
-
Only unemployed dependent will be considered.
-
Only one dependant will be covered from each family.
The dependant will be in lieu of VRS
optee.
4. IMPLEMENTATION
OF THE SCHEME
4.1 Nodal
Agencies: Under CRR Scheme,
training programmes under various modules will be
imparted by the selected Nodal Agencies through their Employees Assistance Centres (EAC) located in various States. Nodal agencies will be selected by the
Selection Committee. The criteria for selection of nodal agencies include
infrastructure and training facilities available, past experience in the field
of training under social safety net or similar programmes,
catering to various CPSEs under its network, faculties etc. These agencies may
be government/semi government and non-government organization having experience
in the field. Training
4.2 Selection
Committee: There will be a
multi-functional Selection Committee under the Scheme entrusted with the task
of selecting nodal agencies / new Employees Assistance Centre (EAC), Institute
/ Organisation for undertaking evaluation /
concurrent monitoring of the scheme, trades / areas of training requiring
longer duration and related issues under the scheme. The Selection Committee will be headed by
Joint Secretary, DPE, Ministry of Heavy Industry and Public Enterprises. The
representatives from Planning Commission, Ministry of Labour,
Ministry of Finance and Ministry of Micro, Small and Medium Enterprises will be
members of the Committee.
4.3 Annual Action Plan: Before commencement of the
training programme, nodal agencies will submit Annual
Action Plan for the particular financial year based on identified number of VRS
optees Trade wise, EAC wise and CPSE wise. The Action
Plan will contain various activities proposed during the year. Based on Action
Plan and past performance of nodal agencies, DPE will assign physical target.
Nodal agencies will prepare gender / weaker section responsive Action Plan so
as to achieve the objectives of gender equality and human development. The purpose
is to extend the benefit of CRR scheme to rationalized women employees / SC
& ST members. Preference would be given to women VRS optees
and SC & ST members. Preference will
also be given to junior level functionaries who have opted for VRS i.e. workmen
as well as supervisory staff. On the basis of Annual Action
Plan, DPE will assign physical target to the nodal agencies.
4.4 Assigning
Physical Target: Sanction
of physical targets to nodal agencies would be linked with reference to
providing more professional post-training services to individual VRS optees, achievement of redeployment, providing support for
sanction of loans and successful start/operation of units.
4.5 Financial
Assistance to Agencies: Financial
assistance will be provided to the nodal agencies by the DPE based upon norms
of expenditure which will take into account the hiring of space,
salary/honorarium of faculty members and supporting staff, cost of training
material, preoperative expenses to the trainees, office expenses, and cost of
follow up services including, project profiles, application to banks etc. as
per specific norms, fixed by the DPE.
Such financial assistance to the agencies will be provided by DPE out of
the budgetary allocation as per specific norms of expenditure.
4.6 Expenditure
Norms: To incur
expenditure for undertaking various activities by the nodal agencies following expenditure norms will be applicable:
|
Sl. No. |
Particulars |
30 days |
45 days |
60 days |
|
1. |
Preparatory Works (Awareness-cum-motivation,
survey and publicity, counseling process etc.) |
700 |
700 |
700 |
|
2. |
Office Expenses (on
infrastructure, office equipment, salary, stationary magazines etc. and
inclusive of expenses on project profiles, support for bank loans and field
visits etc. |
500 |
750 |
1000 |
|
3. |
Training
Expenses |
3000 |
3850 |
4700 |
|
4. |
Stipend |
1800 |
2700 |
3600 |
|
5. |
Follow-up |
1000 |
1000 |
1000 |
|
|
Total |
7000 |
9000 |
11000 |
4.7 Release of Funds: The nodal agencies will be released funds
generally in two instalments in a year subject to
utilization of funds and satisfactory progress.
They will send progress reports at the end of each training programme and a Utilization Certificate and Statement of
Expenditure along with consolidated report once a year. No fund will be
released in absence of Utilisation Certificate.
4.8 Submission of Returns: In addition, nodal agencies will be required
to send progresss report periodically in the prescribed
proforma. Time bound submission of returns should be ensured by the nodal
agencies.
5. ROLE
OF CENTRAL PSEs
5.1 Role of CPSEs in implementation of
5.2 Dissemination of
data of VRS optees: CPSEs have larger role and responsibility particularly
in dissemination of data of VRS optees to nodal
agencies and arranging for counseling before separation. CPSEs who have
introduced VRS/VSS/retrenchment scheme shall identify the employees who are to
be relieved on VRS/VSS/retrenchment.
CPSEs will prepare release
schedule for separated employees and inform nodal agencies to reduce time gap
between survey and separation. Basic data of VRS optees
will be entered in the CRR website by CPSEs for use of all nodal agencies. Each
VRS optee will be given a unique VRS letter
indicating the VRS key generated through the CRR website for maintaining the
identity of the optees and avoid double training.
5.3 Pre-counselling and Counselling Activity: Before release, VRS optees would be counselled by the enterprises themselves for the type of
employment available /self-employment opportunities, which they may avail of
after they severe connection with the enterprise. CPSEs are supposed to build up an elaborate
system of handling the disengagement process. Financial dues to VRS optees may be disbursed in group meeting in presence of
officials from various banks, state finance corporations, etc.
5.4 Role
of HR Department: H.R.
Department of the enterprise will be in-charge of such counselling
programmes and will furnish a copy of the list of
employees who are being released on VRS/VSS/ retrenchment to the nodal agencies
selected for the purpose of counselling, retraining
and redeployment. CRR Website is already
operational. List of VRS optees may be posted on the
website and it may be updated on monthly basis. H.R. Department may maintain a
regular contact with the trainees and maintain records about their deployment
in new organizations or their self-employment. They may also be in constant
touch with the nodal training agencies during the training programme
to provide necessary support in the activities of rehabilitating the separated
employees In order to make the post
training activities and follow up services to the VRS optees
more effective for providing self-employment, Director (Personnel) of the
concerned CPSE may maintain regular liaison with the concerned nodal agency
engaged in the training of the rationalised
employees.
5.5 Employee
Resource Centre (ERC): Each
CPSE will set up Employee Resource Centre (ERC) under H.R. Department to act as
the nodal point for keeping records of the surplus/rationalized human resources
of the enterprise, and for facilitating rehabilitation of such
employees/workers.
5.6 Circulars
/ Guidelines to field offices / Units: For meaningful implementation of the
Scheme, CPSEs must ensure that Circulars / Guidelines pertaining to CRR Scheme
are circulated to all field offices / units / divisions of the CPSEs.
6. ROLE
OF THE NODAL AGENCIES
6.1 Nodal agencies will maintain regular
contact with the concerned CPSEs for effective implementation of the scheme.
The management of the nodal agencies will be responsible for the prudent use of
financial assistance provided by the DPE for the work of counselling,
retraining and redeployment/self-employment of VRS optees
as per norms of expenditure as approved by the DPE. They will set up Employee
Assistance Centres (EACs)
as per need to counsel and train groups of VRS optees
after their separation from the CPSE.
6.2 Survey: Agencies will carry out comprehensive
survey through structured questionnaire. Survey will also cover isolated and
migrated VRS optees. Standardized survey tools may be
developed with help of select nodal agencies / specialized Institutes.
6.3 Counselling:
Agencies will have exclusive
and adequate module for counseling in training format. In view of approved
expenditure norm they may hire professional counselors. Emphasis should be on
scientific counselling to facilitate a proper
matching of viable projects with individual skill, aptitude and investment
capacity. Individual counselling will be emphasized
and family members will be included to facilitate mobilization of entire family
in dealing with the trauma of job loss and help choose alternate avocation.
Class room approach of counseling will be discouraged.
6.4 Training
Design and Delivery: Nodal
agencies will develop suitable curriculum, teaching materials with the help of
their faculty members to facilitate the activities under the programme. They will update training design and delivery
from time to time so as to establish relative focus between entrepreneurship
related inputs and vocational training so that
redeployment may take place in market oriented trades / areas. They may undertake market surveys to identify
new areas of training. The market
oriented trades / areas of training should be included in the skill development
and entrepreneurial development training programmes.
This will induce readiness among the beneficiaries to start their own venture
in view of the present market scenario. Various programmes
need to be customized by nodal agencies for genuine requirements of recipients
keeping in view enthusiasm and motivation for entrepreneurial pursuits.
Agencies should build up data base on market opportunities and constraints so
as to avoid mismatch between training needs and aptitude and training
administered.
6.5 Assistance
to Beneficiaries in getting loans / micro credit: For the purpose of redeployment /
self-employment, the nodal agencies will have continuous interactions with the
trainees as well as DPE, CPSES and the concerned commercial banks for
sponsoring applications for bank loans and for facilitating release of loans by
the banks to the trainees who wish to set up self-employment activities. They
will be in constant touch with KVIC / SIDBI / public sector banks, etc. to
provide inputs on micro financing and redeployment of VRS optees.
6.6 Coordination Committees: It
is very important to have regular interaction among nodal agencies, CPSEs and
others for implementation of the Scheme. Formation of local level Coordination
Committees is of immense value. This
Committee is to be formed by the nodal agency.
The nodal agency will be the convener and the head of the unit of major
CPSE in the vicinity will be Chairman of such Committee. Other CPSEs in the
vicinity, officials from lead bank / state financial institutions etc. will be
members of the Coordination Committee. Nodal agencies should ensure that these
Committees meet periodically to review and discuss the pertinent issues. DPE may
be informed from time to time about actions taken by the Committee for
implementation of the Scheme. Agencies may make all efforts to widen the
representations in the local level Coordination Committee meetings.
6.7 Follow up: Follow up is the key factor in the success of the
scheme. The nodal agencies will have to effectively follow up all cases till
the employee is redeployed or his self-employment activity gets operationalised. Emphasis is to be laid on systematic and
enduring follow up. There should be a rigorous tracking strategy through
periodic and regular meeting between nodal agencies and trained VRS optees. The strategy would be that even redeployed persons
are called for periodic meetings to articulate problems in management of
enterprises and seek solution.
6.8 Formation of Self-help Group: Nodal agencies should actively assist in
formation of Self Help Groups, a common platform to share experiences and
lessons from each other.
6.9 Sustainability of Redeployment: Sustainability of redeployment of VRS
optees over a period of time has to be followed up by
the nodal agency. Nodal agency will
monitor the redeployed VRS optees over a period of
time to ensure that the micro enterprises set up by the VRS optees
are functioning for a longer time. Agencies will also maintain record of micro
enterprises that failed with complete information including reasons for
failure.
7. MONITORING AND
SUPERVISION
7.1 Department of Public Enterprises would be
the coordinating agency to arrange for funds on annual basis, monitor the
implementation of the scheme by the nodal agencies and the CPSEs, and provide
necessary direction and guidance. DPE would select nodal agencies / new EACs through laid down procedure or de-list in view of poor
performance through Selection Committee. Monitoring, supervision and evaluation
of the scheme will also be taken up by the DPE from time to time directly or
through suitable agencies/institutions. In addition a concurrent monitoring
mechanism will also be put in place.
7.2 Apex
Review Committee: An
Apex Review Committee and an Executive Committee will be constituted to draw
Plan of Action from time to time and review the progress of the scheme at
periodic intervals.