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a. The current proposal is to align the executives' pay scales in line with DPE guidelines and accordingly fix the pay scales.

b. Even though, Government has not scheduled the company, the proposal considered the minimum category i.e., Schedule D as per guidelines of 3rd PRC 2017 and pay scales have been considering the minimum of DPE guidelines 2017.

C. The proposed alignment of pay would be at the lowest end of PSU structure and in line with DPE guidelines.

14. Considering all the above, Board deliberated and approved the recommendations of HRM Committee in principle and also considering the critical situation of manpower as informed by CEO- OMPL and Director I/c OMPL, decided to give ad-hoc relief/recoverable advance of 50% of differential due amount to E1 to E4 executives wherever applicable on monthly basis as per workings placed before the Board, which would be adjusted when the final salary implementation is done subsequent to Presidential directive. Board directed CEO- OMPL to obtain necessary clarifications from Department of Public Enterprises for implementation of Schedule "D" pay scales for the Company. As the Company being an unscheduled company, necessary Presidential directive for pay alignment as per DPE guidelines from Ministry of Petroleum and Natural Gas may be obtained.

3.0) OMPL net worth has eroded considerable and balance sheet continues to bleed mainly due to adverse conditions. The merger needs to be completed before the financial year ending 31st March 2022 to stop OMPL on defaulting in loan repayment and further borrowing. The consequences of such an event, if happens, is explained to all officer bearers of OMPL Management staff association during multiple meetings.

4.0) A systematic approach needs to be taken within the applicable DPE guidelines and prevailing Government rules and regulations to arrive at calculated Basic pay for every employee of OMPL while aligning the pay to MRPL prevailing pay structure. Any deviations from DPE Guidelines and prevailing Government rules and regulations will only lead to complications for all stake holders, which is certainly not tenable and workable and solutions proposed beyond DPE guidelines and prevailing Government rules and regulations are un-

NC: 2024:KHC:17148 fact, it is the specific case of the MRPL that the pay structure granted to the employees of the OMPL were contrary to the DPE guidelines.

41. The averments made in paragraphs 6 to 9 of the statement of objections in this writ petition would indicate the specific grievance that the MRPL has about the pay structure of the employees of the OMPL, and they read as under:

"6. In view of OMPL not having adopted and followed the DPE guidelines, it continued to follow the CTC pay structure devised prior to OMPL becoming a CPSE. In fact this CTC pay structure was followed by OMPL till the effective date of merger with MRPL i.e., 01.05.2022. This was in gross violation of mandatory DPE guideline. In view of the continuance of CT pay structure, the employees of OMPL like the petitioners herein were being paid a salary which was much much higher than what pay which was otherwise payable to a similar post held in any CPSE. The annual increment and promotional increment to OMPL employees was 13 and 14 times more than what is allowed for a CPSE employee as per DPE guidelines. House Rent Allowance ('HRA' for short) was also paid at a much higher rate than what is permitted as per DPE guidelines. Further, the annual increment and promotion increment to the OMPL employees were at 9% and 10% of the CTC pay when infact, the annual increment and promotion increment at any other CPSE is at 3% on the basic pay as defined in the DPE guidelines. MRPL has been following the

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NC: 2024:KHC:17148 DPE guidelines with regard to the pay scales and the Industrial Dearness Allowance (IDA' for short) pay structure as per the DPE guidelines for CPSEs. In that view of the matter the annual increment and promotion increment at MRPL is at 3% on the basic pay as defined in the DPE guidelines.

7. All the CPSEs are categorized into four Schedules namely 'A, 'B', 'C' and 'D' based upon various qualitative, quantitative and other factors. Factors such as investment, capital employed, net sales, profit before tax, number of employees, number of units, value added per employees, national importance, complexities of problems, level of technology, prospects of expansion and diversification of activities and competition from other sectors, strategic importance of the corporation etc. are taken note of while categorizing the CPSEs under different schedule. The Navratna and Miniratna CPSEs fall in Schedule A and B respectively. MRPL is a schedule A CPSE.