New Delhi, Apr 06: The Cabinet Committee on Economic Affairs (CCEA) is likely to consider this month a proposal of state-owned Oil and Natural Gas Corporation (Ongc) to offer voluntary retirement to its surplus staff. Petroleum ministry has moved a cabinet note for a modified VRS proposal after ONGC's earlier scheme was last year rejected by CCEA on grounds that it was not attractive enough, official sources said.

ONGC is expecting that at least 10 per cent of its 40,000 strong workforce would opt for VRS, which would entail an outgo of Rs 426 crore. According to the revised proposal, the one-time VRS is intended to be applicable to those employees who have put in minimum 15 years of service in ONGC and are not below the age of 40 years.

Sources said the benefit would include ex-gratia equivalent to one and half months' salary for each completed year of service or salary for the number of months left, whichever is less.

Additional monthly benefit equivalent to 105 per cent of the basic pay drawn on the date of voluntary retirement would be given to employees above 58 years who opt for VRS. Employees above 54 years and up to 58 years would be entitled to 100 per cent of the basic pay, employees above 50 years and up to 54 years would get 95 per cent and those below 50 years would be entitled for 90 per cent of the basic pay.
Bureau Report