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Cabinet to consider VRS in ONGC, BPCL on Wed

The Union Cabinet is likely to consider on Wednesday introduction of voluntary retirement schemes in Oil and Natural Gas Corporation and Bharat Petroleum Corporation Ltd to shed excess flab.

Petroleum ministry has moved a Cabinet note for VRS aimed at shedding 450 employees in BPCL and about 5000 workers in ONGC, highly placed government sources said in New Delhi.

Cabinet meeting, chaired by Prime Minister Atal Bihari Vajpayee, will consider a VRS under which employees would be offered an ex-gratia payment equivalent to one-and-half month's emoluments (pay plus dearness allowance) for each completed year of service or the monthly emolument at the time of retirement multiplied by the balance months of service left before normal date of retirement, whichever is less.

These benefits would be in addition to the terminal benefits.

Introduction of VRS in ONGC would cost the organization about Rs 400 crore (Rs 4 billion), sources said adding rationalising the workforce would cut costs by around Rs 800 crore (Rs 8 billion).

However, all those employees who have completed not less than 30 years of service, would be eligible for a maximum of 60 months of salary/wage as compensation. This would be subject to the amount, not exceeding the salary/wage for the balance period of service left (at the rate of monthly salary/wage at the time of voluntary retirement).

Part of the ex-gratia compensation would be paid in lumpsum while the remaining would be paid in monthly installments, they added.

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