NCOA Urges DPE to Expedite 4th Pay Revision Committee, Remove Affordability Clause
Secretary DPE Assures Positive Consideration; CPSU Executives' Body Raises Key Issues Including RINL Salary Linkage and 4th PRC
The National Confederation of Officers’ Associations (NCOA) has urged the Department of Public Enterprises (DPE) to expedite the constitution of the 4th Pay Revision Committee (4th PRC), which is due to take effect from January 1, 2027, during a meeting with DPE Secretary K. Moses Chalai held on July 3, 2026.
The NCOA delegation, comprising President M. S. Adasul, Working President Narendra Banchore, Chairman V. K. Tomar, and SEFI Vice Chairman Narender Singh, discussed several key issues concerning executives of Central Public Sector Undertakings (CPSUs).
The delegation stressed that the timely constitution of the 4th PRC is essential to ensure revision of pay, allowances and other service benefits for CPSU executives, thereby improving motivation, organizational efficiency and productivity.
Highlighting the strategic importance of CPSUs, the delegation noted their significant contribution to implementing government policies and driving India’s socio-economic development, strategic growth and national security. Examples from the steel, defence, telecom and oil sectors were cited during the discussions.
According to NCOA, the DPE Secretary appreciated the concerns raised and acknowledged the crucial role played by CPSUs in nation-building. He responded positively to the request for early constitution of the 4th PRC.
NCOA Seeks Removal of Affordability Clause
A major issue raised during the meeting was the removal of the affordability clause from the pay revision policy.
The delegation argued that the clause adversely affects executives working in CPSUs despite their significant contribution to the economy. It cited the example of BSNL, stating that the telecom PSU undertakes several government projects and public service obligations that impact its financial performance despite its strategic importance. Similar concerns regarding MTNL were also highlighted.
The DPE Secretary informed the delegation that the affordability clause is a policy decision taken at a higher level and is currently being followed by the department. However, he assured the delegation that DPE would adopt a positive approach while framing the Terms of Reference for the 4th PRC and that NCOA would be given an opportunity to present its views before the committee.
Appreciation for Corrected IDA Orders
The NCOA delegation also appreciated the Department of Public Enterprises for issuing the revised Industrial Dearness Allowance (IDA) order dated April 24, 2026, which addressed issues arising from the earlier order issued on February 27, 2026.
RINL Salary Linkage Issue Raised
The delegation submitted a detailed representation regarding Rashtriya Ispat Nigam Limited (RINL), expressing concern over the management’s decision to link employees’ salaries with productivity.
NCOA maintained that such a linkage is neither supported by existing DPE guidelines nor by any government policy. The DPE Secretary took note of the representation and assured the delegation that the matter would be examined.
Meeting Held in Positive Atmosphere
According to NCOA, the DPE Secretary patiently heard all the issues presented by the delegation, appreciated the constructive suggestions and responded positively to each agenda item.
The organisation described the meeting as cordial, encouraging and highly fruitful, while expressing gratitude to the DPE Secretary for granting the meeting and assuring positive consideration of the concerns raised by CPSU executives.
