F.No.8-9/2024-l'S.

V
Government of India
Ministry of Educatiorr
I)cpartmcnt of Higher Education
(Managemcnt t)iv ision )
Shastri Bhavan. New Delhi
Dated: I 0'r' April, 2024

'l
o.
l'he Chief Administrative Otlicer and Secrctary to thc llOcs
All the llMs

Su bj ect : (iovcrnnrcrrt ordcrs lcgarding certain allorratlccs and pcrlbrtnancc relatcd pay
Rcgardirrg

Sir/ Madam.

With reference to the above subject, the Regulations of different IIMs prepared under the
IIM Act and llM Rules have been examined in the Ministry. lt has been found that in some cases,
the existirrg practice is varying substantially across llMs. including among IIMs having similar
'fhe Department of
sranding *iih r"rp..t to intcrnational/ national ranking/ accreditation.
Iixpenditure. Ministry of l]inancc and thc l)epartmcnt of Public Finterprises. Ministry of Heavy
lndustries and Public linterprises, in order to bring unifbrmity and transparency in governance
and financial dealings, havc issued cerlain instructions in this regard. These may be adopted by
the institute to ibllow best practiccs and avoid audit para in future:

i. Dcpartrnent of lixpenditure. Ministry ol' Finance OlIlce

Memorandum No'
t9047llOl2Ol6-F.-lV datcd l2'r' April. 201 7 rcgarding payment of sitting t'ce in rcspect of
Non-Ot'ficials of Committees/ Panels/ Boards. etc.

ll Dcoartmcnt of Expenditure. Ministry of Finance Of-fice Memorandum No. 19047ll/2016'

E-lV dared l4'h September. 2017 regarding TA/DA entitlements of non-officials of
Committees/ Boards/ Panels etc.

iii. Department of Public Enterprises. Ministry of tleavy Industries and Public Enterprises
Ofiice Memorandum No. W-02/0004/201 8-DPE (WC)-CL-X/20 dated l'lJuly 2020
regarding paymenr of Performance Related Pay (PRP) which, inter alia, includes example
ofPRP payout in case of CMD, Schedule A CPSE.

2. The letter along with the enclosures may please be circulated to Chairperson and all
Members of the BoGs tbr lurther needlul. The current and reviscd rates with respect to (i) to (iii)
above may please bc sent to the Ministry at thc earlicst.

i. l'his issues with the approval of the Secretary. DHll.

yours taithfully,
llncloscd: As above

.B I S!! as)
Deputy Secretary (Management)
ll-mail : suni lkumar.biswas29 gov.ln
 No. 1 9047 I 1 0t20
6-E-tV
1

Government of lndia
Ministry of Finance
Denartment Expenditure
lf
North Block, New Delhi.
Dated: 12.04.2017
OFFICE MEMORANDUM
subject: Deregation of powers to Ministries/ Departments for payment
of sitting
Fee in respect of Non-officiars of committees/ paneL/'BoarJs
etc.

The undersigned is directed to state that the issues related

to payment of sitting
Fee to Non-officiars of committees/paners/Boards etc.
have been examined in D/o
Expenditure lt has been decided that Administrative Secretaries
of the Ministries/
Departments may decide the Sitting Fee in respect of Non-officiars of
committees/Panels/Boards etc. in consultatlon with their
Financial Advisors and with the
approval of their Ministers.

2 While considering ihe proposals for payment of Sitting Fee

to Non-officials, the
Ministries/Departments are directed t,o keep
instructions/guidelines:-
in view the following

Cateoqfisatjon of
.Committees:. For the purpose of payment.of Sitting Fee,
i*::/ry$f,?l ts re cate go rizea' nto
a rowi i s in ree cate!o;;-., -
ro
-"'
(i) :,:T T
High_tqve_r _ commirtee : r I

tn teins ot caorn.i se;r;ffii";Y;riJi-,r".

1116/112000-cab. dated fin4,002, a Hign
Levei-committee is a committee
set up with the approvar of Hon'bre irime Mrnister through
Secretary and presided orer by a high ranking Oignitary tne carinii
of the Mini.t i, I
Judge Supreme court-or rrioia,
prominent persons in public life as Membeis.
, ".gl
vi.u-cnun""ii"i "
"t"."'i""rrai"g
(ii)
@ A Technical or Expert Committee is a
committee constituted t,o-- drsc-harge rrniiion.
Acts/Rules/subordinate regisration on t[".rb;.ti.
as
prescribed under
sucn committee is to be set
up with the approval of the Minister of the concerned
Member of Parriament is incruded in tne commiti"",'in"
Ministry. ln ;;* *y
pno. approvar of prime
Minister to their incrusion is to be obtaineJ i. t.rrr
Circula r No. 1 I 1 6t 1 t2O}O-Cab. dated 1 S.O4.2i)2i..
of cabinet secretariat
( iii) 9Jher Committe_es: All other Committees will be covered under this
category. These Committees will be constituted *itf,
Administrative Secretary or Minister.
tf," ,ppr"r"i- it"
"f
2'2 Definition of a Non-qfficiar : For the purpose of grant
of Sitting Fee onry such
persons are to be considered as Non-officiars
who are not emproyed in any institution/
organisation/body funded by the Central Government.

Contd...2/-
 -2-

3. Rates of sittinq Fee:of categorisation of committees viz. High

On the basis
Level committee, Technical or Expert committee and other committees, The
Ministries/Departments shall ensure that the maximum rates of Sitting Fee to be paid to
Non-official Chairman/ Members will not be more than the following:-

(i) High Level Committee : Not more than Rs.10,000/- per day of Sitting'
( ii) Technical or Expert Committee : Not more than Rs.6000/- per day of Sitting'
( iii) Other Committees : Not more than Rs.4000/- per day of Sitting'

4. For arriving at the rates of the Sitting Fee to Non-official Chairman and Members
of the Committeei/Boards/Panels, the Ministries/Department shall observe the following
conditions:

i. while considering the amount of sitting Fee, the Ministries/Departments have

to keep in view facts such as nature and scope of the committee, importance of
the subject assigned to the Committee, category of the Committee (i'e High
level committee, Technical or Expert Committee or other committee), level/
status of chairperson/ Members, duration of the committee, frequency of
meetings, Terms of Reference of the Committee etc.

ii. ln no case, the ceiling should exceed 10 meetings in a month in respect of all
categories of committees viz. High Level, Technical or Expert committees and
Othei Committee. lt is presumed that such committees are constituted for a
limited duration specified in the order.

iii. lt is clarified that the Govt. employees nominated to such Committees/ Boards/
Panels etc. will not be entitled to Sitting Fee.

iv. cases seeking deviation from the above norms may be referred to M/o Finance
giving full justification for seeking deviation'

3. These instructions will be effective from the date of issue of this O.M.
fri
4. This is issued with the approval of Finance Minister. W
#-oYlt'otl
(Nirniala Dev)
Deputy Secretary to the Government of lndia
Telefax. 23093276

1. Secretaries of all Ministries/ Department ( as per standard list)'

2. Financial Advisers of all Ministries/ Departments (as per standard list)'
3. Cabinet Secretariat - For information.
\,

F.No. 19047/1/2016-E.lV
Government of lndia
Ministry of Finance
Department of Expenditure

North Block, New Delhi.

Dated: 14.09.2017
OFFICE MEMORANDUM

Subjec,t: TA/DA entitlements of Non-otficials of Committees/Boards/Panels etc,

The undersigned is directed to state that the issues related to payment of TfuDA to Non-officials of
Committees/ Boards/ Panels etc. have been examined in D/o Expenditure. lt has been decided that TII/DA entttlement
of Non-officials may be regulated by the Administrative Ministries/ Departments in the following manner:-

(l) Retired Govt. otficials nominated as Non-official in the Committees/Boards/Panels etc. :

TpUDA entitlement of these Non-officials will be same as per their entrtlement at the time of retirement as per
revised rates mentioned in this Department's O.M. No.'19030/01/2017-E.lV dated 13.07.2017.

(ll) Persons from various fields nominated as Non-official in Committees/Boards/ Panels etc. :

TIVDA entitlement of these Non-official will be same as admissible to oflicers in Pay level-1'1 (Pre-revised
Grade Pay of Rs,6600/-) in the Pay l\4atrix. TA/DA Entitlements will be as under:-

D
Travel entitlement within the country - Economy class by Air or AC-ll by train.
iD Reimbursement for hotel accommodation/guest house of up to Rs.22501 per day.
iii) Reimbursement of non-Ac taxi charges of up to Rs.338l per day for travel within the city
iv) Reimbursement of food bills not exceeding Rs.900l per day.

(lll) Eminent personalities nominated as Non.otficial in the Committees/Boards/Panels:

TA/DA entitlement of these Non-offlcials will be same as admissible to offlcers in Pay level 14 (pre+evised
Grade pay Rs.10,0001) in the Pay Matrix. TIVDA Entitlements will be as under:

i) Regarding travel entitlement of these Non-officials, Secretary in the Administrative l\4inistry, in consultation
with the FA,,may allow eminent personalities who are Non-officials in the Committees/Boards/Panels etc., to
travel in Executive class inthe Domestic airlines within the country subject to the following conditions:-

a) Where a Non-official is or was entitled to travel by air by Executive class under the rules of the
0rganization to which he belongs or might have belonged before retirement.
b) where the Administrative l\4inistry is satisfied that the travel by Executive class by air is the
customary mode of travel by the Non-official concerned in respect of journeys unconnected with the
performances of Govt. duty.

ii) Reimbursement for hotel accommodation/guest house of up to Rs 7500^ per day.

iii) Reimbursement of AC taxi charges as per actual for travel within the city.
iv) Reimbursement of food bills not exceeding Rs.12001 per day

Contd..2l
 a

2 ln respect of Non-officials who are local, l\4ileage Allowance at the following rates will be admissible:-

i) For retired Government officers. TIVDA as per their entitlement at the time of retirement as per
revised rates mentioned in this Department's O.lV. N0.19030/01/2017-E,lV dated 13.07.2017.
ii) Other Non.officials nominated from various fields - Reimbursement of non-AC taxi charges of up
to Rs.338l per day for kavel within the city.
iii) For eminent personalities nominated as Non-otficials - Reimbursement ofAC taxi charges as per
actualfor travel within the city.

3. The TIVDA entitlements mentioned in Para I above will be subject to the following conditions:-

i) These TfuDA entitlements will be applicable in case of Non-officials coming from outside. Local Non-
officials will not be entitled for TNDA.
ii) Local Non-officials will be entitled for lvlileage Allowance only,
iii) Cases seeking deviation from the above entitlements may be referred to M/o Finance giving full
justification for seeking deviation.

4. These instructions will be effective from the date of issue ofthis O.l\4.

5. This is issued with the approvalof Finance Minister.

W
(Nirmala Dev)
Deputy Secretary (EG)
Telefax. 23093276

1. Secretaries of all Ministries/ Departments (as per standard list)

2. Financial Advisors of all Ministries/ Departments as per standard list
 NO.W-02/0004/2018-DPE (WC)-GL-X/20
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises

Public Enterprises Bhawan,

Block No.14, CGO Complex,
Lodhi Road, New Delhi-110003.
Dated, the pI July, 2020
OFFICE MEMORANDUM
Subject:-. Pay revision of Board level and below Board level Executives and Non-
Unionised Supervisors of Central Public Sector Enterprises(CPSES) w.e.f.
01.01.2017- Examples on Payment of PRP - regarding.
"
~;'

The undersigned is directed to refer DPE's OM No W-02/0028/2017-

DPE(WC)- GL-XIII/17 dated 03.08.2017 regarding Pay revision of Board level and
below Board level Executives and Non-Unionised Supervisors of CPSEs w.e.f.
01.0l.2017.
2 DPE guidelines on 2017 pay revision which, inter-alia, includes new
methodology for calculation of PRP are applicable to all the Board level and below
Board exeeutives. Accordingly, the kitty factor with restriction of 100% of basic pay
explained for calculating PRP is applicable to all the executives including Board
level executives.
3. For the sake of more clarity and unambiguity, DPE has framed one
more example of PRP Pay-out in case of CMD, Schedule A CPSE, which is
illustrative in nature. All CPSEs are requested t<' review their PRP calculations in
conformity to para 2 above and in line with example annexed to this OM. Deviations
in past, if any may also be corrected.
4. All administrative Ministries/Departments of the Government of India
are requested to bring the above to the notice of CPSEs under their administrative
control and to comply with the OPE's guidelines strictly.
~~
(Samsul Haque)
Under Secretary
Encl: As above
To
All administrative Ministries/Departments of the Government of India.
Copy also to:
1. The Chief Executives of Central Public Sector Enterprises.
2. The Comptroller & Auditor General of India, 9, Deen Dayal Upadhayay Marg,
New Delhi.
3. Financial Advisers in the Administrative Ministries.
4. Department of Expenditure, E-III-A, Branch, North Block, New Delhi.
5. NIC, DPE with the request to upload this OM on the DPE website.
~
(Samsul Haque)
Under Secretary
-
 Annexure

Performance Related Pay (PRP): Examples for calculating Kitty factor/Allocable profit
 PRP Kitty Distribution : within 5% of profit accruing from core business
activities
(hereinafter, for brevity, referred to as Profit).
 Ratio of relevant year’s profit : incremental profit = 65 : 35

Sl. Parameters Amount (Rs.)/ %age

1 FY 2016-17 Profit = 5000 crore

2 FY 2017-18 [for which PRP is to be distributed] Profit = 6000 crore

3 Incremental profit 1000 crore

4 5% of the year’s profit 300 crore

5 Allocable profit out of current year’s 5% of profit based on distribution in the ratio of 65:35
towards the year’s profit and incremental profit:
a. PRP payout from year’s profit 195 crore [i.e. 65% out of 300 crore]

b. PRP payout from incremental profit 105 crore [i.e. 35% out of 300 crore]: [105
crore can be fully utilized as incremental
profit is 1000 crore.]
6 Full PRP Payout requirement (computed for all 300 crore
executives based on Grade-wise ceilings, CPSE’s
MOU rating, Team rating & Individual
performance rating) – but without applying kitty
factor related to year’s profit or Incremental profit
7 PRP payout break-up based on 65:35 distribution out of year’s profit and incremental profit:
a PRP amount required out of year’s profit (i.e. 65% of 300 crore = 195 crore
65% of Sl. No. 6)
a1 Cut-off factor(1) (in %age) for year’s PRP payout 195 crore / 195 crore = 100.00%
with reference to Sl. No. 5(a) & 7(a)
b PRP amount required out of incremental profit 35% of 300 crore = 105 crore
(i.e. 35% of Sl. No. 6)
b1 Cut-off factor(2) (in %age) for incremental PRP 105 crore / 105 crore = 100.00%
payout with reference to Sl. No. 5(b) & 7(b)
8 Thus, total Profit amount allocated for P195 crore + 105 crore = 300 crore
distribution R[i.e. 5% of Core business / operating profit]
P
9 Kitty factor for respective Grade (in %age) [65% x Grade PRP ceiling (%) x Cut-off
factor(1)] Plus (+) [35% x Grade PRP ceiling
x Cut-off factor(2)] = Kitty factor
-
 PRP Pay out to CMD Schedule A, CPSE, 2017 Pay Scales
Sl Parameter Amount(Rs)/%age Payout
A CPSE’s MOU Rating 100%
[Weightage = 50%]
B Team’s Ratings 100%
[Weightage = 30%]
C Individual’s performance ratings 100%
[Weightage = 20%]
D Grade Ceilings(CMD) 150% of BP
(Max 150% of BP)
E Cut-off factor(1) 100.0%
F Cut-off factor(2) 100.0%
G Kitty factor for CMD [65% x 150%x 100%] + [35% x 150%x
Ie [65% * D(grade PRP ceiling * 100%]
E(Cut off factor(1))] Plus [35%*
D(Grade PRP Ceiling) * F(Cut –Off =97.5 % + 52.5%
factor(2)) ] = 150 %. But as per guidelines, Kitty
factor is restricted to 100%.
H Net PRP
I Factor –X Wtg (50%) x A x G
[Company’s Performance = 50 x100x 100 = 50%
component]
Ii Factor – Y Wtg (30%) x B x G
[Team’s Performance component] = 30x 100 x 100= 30 %

Iii Factor –Z Wtg (20%) x C x G

[Individual’s Performance = 20x 100 x 100= 20 %
component]
I PRP Payout distribution Factor X +Factor Y +Factor Z
= 100 % of Basic Pay

J Total PRP payment (Minimum 100% of Rs 24,00,000/-

Annual Basic Pay for CMD Schedule = Rs 24,00,000/-
A CPSE)