Chennai-2,27.10.2010

ToThe Chairman,Tamil Nadu Electricity Board,144, Anna Salai,Chennai – 600 002.

Letter No.TNEBEA/ GS/ F.Restr/D. 74/2010, dated : 27.10.2010

Sub: TNEB Engineers’ Association - Restructuring of TNEB – Draft Tripartite Agreement – Furnishing of Association Remarks – Reg.

Ref: Letter No.046299 / 452 / G43 / G431 / 2009 – 24, dated: 19.10.2010

*****

With reference to the letter cited, TNEB Engineers’ Association

communicates a modified text of draft Tripartite Agreement incorporating the

views of the Association for kind consideration.

Thanking you,

Yours sincerely,

(G.Kannan) General Secretary

TRIPARTITE AGREEMENT

BETWEEN

THE GOVERNMENT OF TAMIL NADU, TAMIL NADU ELECTRICITY BOARD (TNEB) AND TNEB ENGINEERS’ ASSOCIATION (Regn. No 217/1994)

This Tripartite Agreement entered into on this ........th day of ---------------

2010 between the Government of Tamil Nadu represented by its Principal

Secretary to Government, Energy Department, (hereinafter called as the “State

Government”), and the Party of the FIRST PART;

And

The Tamil Nadu Electricity Board, a body corporate constituted under

Section-5 of the Electricity (Supply) Act, 1948, (Central Act LIV of 1948) and

validly continuing as such under the Electricity Act, 2003 (Central Act XXXVI of

2003) (hereinafter called as “The Board” which expression shall unless

repugnant to the context or meaning thereof include its successors and

assigns) represented by its Chairman and the Party of the SECOND PART;

And

Tamil Nadu Electricity Board Engineers’ Association (Regn.No. 217/1994)

represented by Thiru.G.Kannan, General Secretary of Tamil Nadu Electricity

Board Engineers’ Association, and the Party of the THIRD PART;

WHEREAS

1. The Government of Tamil Nadu, in G.O(Ms) No 114 Energy Dept, dated

08.10.2008 have accorded in principle approval for the re-organisation of

the Board by establishment of a holding company, namely, TNEB Limited

and two subsidiary companies namely, Tamil Nadu Transmission

Corporation Limited (TANTRANSCO) and Tamil Nadu Generation and

Distribution Corporation Limited (TANGEDCO) with the stipulation that

the aforementioned companies shall be fully owned by the Government

of Tamil Nadu;

2. The officers / employees of the Board may be apprehensive that on such

reorganisation of the Board they may be retrenched and/or their service

conditions may be adversely affected or their services may be privatised.

3. The Government of Tamil Nadu have clearly stated that such

apprehensions of officers / employees are unfounded.

4. For the purpose of smooth implementation of the policy of re-

organisation and restructuring of the Board and to dispel the

apprehensions that are being raised by the various Trade Unions and

Associations mentioned in Clause 2 above, the parties herein mutually

agree as under and undertake to abide by the same to achieve the

aforesaid objective;

5. Now, therefore, in consideration of the premises, mutual agreements,

Covenants and conditions set forth herein, it is agreed by and between

the parties as follows –

1. In so far as this Tripartite Agreement is concerned:-

a. ‘State Government’ means the Government of Tamil Nadu;

b. ‘Board’ means the Tamil Nadu Electricity Board;

c. ‘Holding Company’ means the TNEB Limited ;

d. ‘Successor entities’ means ‘TNEB Limited’, ‘TANTRANSCO’

and ‘TANGEDCO’ ;

e. ‘Subsidiary Companies’ means, TANGEDCO and

TANTRANSCO ;

2. In the event of re-organization of the Board into TNEB Limited (as

holding company) and two subsidiary companies viz. Tamil Nadu

Transmission Corporation Limited (TANTRANSCO) and Tamil Nadu

Generation and Distribution Corporation Limited (TANGEDCO) as

separate Corporate entities, it is hereby

categorically guaranteed by the Government of Tamil Nadu that there

will not be further restructuring and proposed successor entities shall

continue to remain fully Government Owned Corporations and no part

of the successor entities will be privatised or franchised in future,

deviating from the proposed pattern of Government Owned

Corporations. It is agreed that there will not be any outsourcing in any

form in executing the technical works by the successor entities

3. The State Government and the Board hereby guarantee that the

formation of the Government Owned Corporations shall promote the

profitability and the viability of the resulting entities, ensure economic

efficiency, encourage competition and protect consumer interests as

mandated by the section 131(5)(a) of the Electricity Act 2003 and the

officers/ employees shall contribute effectively to achieve the mission.

4. The State Government and the Board hereby guarantee that there

shall be no retrenchment of existing officers / employees on account

of such restructuring and their status/service conditions shall not in

any way be less favourable than those which would have been

applicable to them if there had been no such re-organisation and the

transfer scheme.

5. The terms and conditions of the existing officers / employees of the

Board upon deputation to the corporate entities shall not be inferior /

detrimental to the present terms and conditions in the Board. In fact,

an endeavour would be made to rationalize the terms and conditions

to provide for career growth and other welfare measures more

beneficial to the officers / employees recognising that the employees

are an essential part of the growth of power sector and its operation in

an economic and efficient manner.

6. The principles and/or terms and conditions of service of the existing

officers / employees in matters like promotions, appointments,

transfers, leave, all allowances, pension and other allied terminal

benefits etc. regulated by existing regulations/ service rules are

guaranteed to continue to be the same during deputation to the

respective successor entity of the Board.

7. With regard to pay revision, the present system of bipartite

negotiation shall continue with TNEB Engineers’ Association by the

respective successor entities under the aegis of TANGEDCO Ltd with

the approval of the State Government.

8. The parties of the first and second part unconditionally guarantee the

payment of Pension, Family Pension, Retirement / Death benefits such

as gratuity, encashment of earned leave and the existing benefits

including GPF and periodical Dearness Allowance Relief and all other

terminal / applicable benefits which are being implemented in

accordance with Government Orders intended to the Government

Pensioners and are in force as on the date of signing of this agreement

to all existing pensioners/ Family Pensioners and existing officers /

employees who are entitled for payment of pension.

9. The parties of the first and second part unconditionally guarantee

payment of retirement benefits such as Pension, Family Pension,

General Provident Fund / Contributory Provident Fund, Gratuity etc. to

the existing officers / employees working on deputation to the

successor entities on par with the Government Orders intended to the

Government Pensioners.

10. It is agreed by the parties of first and second part of the tripartite

agreement that a “Master Pension Trust” shall be constituted and

controlled by TANGEDCO Ltd, with separate “Board of Directors” for

monitoring the payment of pension and other allied terminal benefits

payable to the existing pensioners / family pensioners and existing

officers / employees who are entitled for pension. Representatives

from the Recognized Trade Unions / Associations / Pensioners’

Associations may also be nominated in the “Board of Directors” for the

management of the above trust.

In respect of existing pensioners, successor entities of TNEB shall

deposit pension amount every month well in advance into the “Master

Pension Trust” and in the event of default, the Government of Tamil

Nadu shall deposit such liability into the trust ensuring trouble-free

payment of pension to all existing pensioners without slippage every

month.

In respect of existing officers / employees in service, who are

entitled for payment of pension, the successor entities of TNEB shall

deposit the anticipated pension liability on monthly basis into the

“Master Pension Trust” and in the event of default, the Government of

Tamil Nadu shall deposit such liability into the trust ensuring trouble-

free payment of pension to all existing officers / employees on

retirement without slippage.

It is agreed to provide a pension component in the tariff applicable

to various classes of consumers for sale of every unit of electricity and

such component shall be deposited in the “Maser Pension Trust”.

11. All the existing welfare measures like the scheme for compassionate

appointment, medical reimbursement, present medical insurance till

its validity period and thereafter by any other suitable

scheme/insurance, educational loan, health fund, HBA, Conveyance

advance, marriage advance, festival advance or any other existing

loans and advances shall be continued generally following the

schemes introduced / followed by the State Government to the

Government servant as has been done earlier.

12. In respect of all the statutory and other schemes such as Provident

Fund, Gratuity and other superannuation benefits of the officers /

employees and matters related to employment, the successor entities

shall stand substituted for all purposes of rights, powers, and

obligations of the Board / Successor entities.

13. It is agreed by the parties of first and second part of the tripartite

agreement that all Government Orders related to the payment of

pension and other allied terminal benefits shall be scrupulously

adopted then and there without any delay and deviation. All benefits

and concessions likely to be extended by the Government of Tamil

Nadu to the Government Pensioners in future may also be made

applicable to the successor entities and extended to the Pensioners

then and there.

14. It is agreed by the parties of first and second part of the tripartite

agreement that all pending issues like (a) adoption of G.O. Ms. 272 &

273 dated 15.06.1998, (b) Payment of Arrears consequent to adoption

of G.O. Ms No.579 dated 15.09.2006 vide (Per) B.P. (FB) No.2 dated

01.02.2008 (c) Merger of Dearness Allowance w.e.f 01.01.2006, (d)

Encashment of Unearned Leave on Private Affairs and similar issues

which are yet to be adopted by the Board shall be implemented within

a period of three months.

15. The period of service of the existing officers / employees under the

Board and the successor entities shall be treated as continuous

service for the purposes of all service benefits including promotion,

fixation of pay, movement to Selection Grade / Special Grade,

Payment of Pension and other retirement / terminal benefits.

16. All benefits for the services rendered by the officers / employees in

the Board as on the date of reorganisation i.e. the effective date, shall

be protected.

17. Even on formation of TNEB LTD, TANTRANSCO and TANGEDCO, all the

existing officers / employees of the Board will be retained under the

control of TANGEDCO Ltd. The officers / employees shall be on

deputation to the successor entities “as-is where-is” basis and shall be

treated as officers / employees of TANGEDCO Ltd under common

seniority as hitherto maintained by TNEB. The service conditions of the

officers / employees in the successor entities shall not be less

favourable to them than that has been provided by the Board as

guaranteed by proviso of section 133 (2) Electricity Act, 2003. It is

agreed that all senior level positions in the successor entities shall be

filled up only from the officers of TANGEDCO Ltd and there will not be

appointment from external sources.

18. The officers / employees deputed to the successor entities are bound

to fulfil the obligations undertaken by them to the Board including the

repayment of loans, advances and other sums due which remain

outstanding from the officers/ employees on the effective date.

19. It is agreed by the parties of first and second part of the tripartite

agreement to implement appropriate “Assured Career Progression

Programme”, on similar lines of relief granted to the Government

Doctors by the Government of Tamil Nadu within a period of three

months from the date of signing of this agreement.

20. All disciplinary proceedings pending on the date of reorganisation

following the existing rules, Regulations, Certified Standing order and

all other instructions / orders in force on the effective date shall be

dealt with by the respective successor entity. All disciplinary cases

already finalised and or punishments awarded by the Board under the

existing rules/regulations/certified standing orders etc., shall not be

reopened, unless permitted by the rules/regulations.

21. The rule of reservation hitherto followed in the Board shall be

continued in the successor entities also following the rules of

reservation followed by the State Government including such

changes/modification as may be introduced by the State Government

from time to time.

22. If the newly constituted corporate entity / entities fail to implement

this agreement in any respect, the State Government shall take full

responsibility.

23. The successor entities may introduce a new set of rules, regulations,

certified standing order, etc., in consultation with Trade Unions /

Associations, which shall be within the ambit of the first proviso of

section 133(2) of Electricity Act, 2003.

24. In the event of any dispute(s) / difference(s) arising out of this

Tripartite Agreement, effort shall be taken by the parties to resolve

such dispute(s) / difference(s) amicably in the first instance. If such

dispute(s) / difference(s) could not be resolved within 60 days, such

dispute(s) / difference(s) excluding the matters affecting the

fundamental rights of the officers shall be referred to a panel of three

arbitrators, one to be nominated by the TNEB Engineers’ Association,

the second to be nominated by the respective successor entity and

the third to be nominated by the State Government. Court at Chennai

shall have the jurisdiction in the event of any litigation.

25. This Tripartite Agreement shall be binding to the Government of Tamil

Nadu, Board / Successor entities and Trade Unions / Associations /

Pensioners of the Board / successor entities and all the existing

officers / employees of the Board. The first party, the Government of

Tamil Nadu shall have power to issue orders / instructions / directions,

if any from time to time to implement any of the provisions of this

Tripartite agreement and other related matters incidental there to. In

such case, it shall be the duty of other parties to this Tripartite

agreement to treat the same as part and parcel of this Tripartite

agreement, subject to the right enshrined in sub-clause (23) of clause

5 of this Tripartite agreement;

26. The Tripartite Agreement executed by and between the parties herein

shall be duly notified in the Tamil Nadu Government Gazette.

IN WITNESS WHEREOF the parties hereto have signed this Tripartite

Agreement on the day and date written here-in-above.

Representative of Government of Tamil Nadu                            

Representative of Board

Representative of TNEB Engineers’ Association

         Witnesses

1.

2.