GOVERNMENT APPROVES VRS FOR ONGC AND IOC

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Shri Ram Naik, Minister of Petroleum & Natural Gas, has approved a proposal for implementation of Voluntary Retirement Schemes (VRS) in Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC). The approved schemes are in line with the guidelines of Department of Public Enterprises (DPE). According to the approved scheme, the employees opting for VRS will be paid a compensation of 60 days’ salary for each completed year of service or the salary for the number of months of service left, whichever is less, apart from the normal retirement benefits. The salary for the purpose of computation consists of basic pay and Dearness Allowance.

The implementation of the VRS of ONGC and IOC would help the two PSUs to right size themselves in the era of competition. The employees opting for VRS would also receive additional monetary benefit. It is expected that about 2000 officers and employees in ONGC and about 1000 in IOC would exercise their option of voluntary separation under the newly approved VRS. The two companies will notify further details to their employees.

The Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) have also proposed implementation of VRS. Since the process of disinvestment in these two PSUs is currently on, the proposed schemes of HPCL and BPCL would be submitted to the Cabinet for appropriate decision.