Government slices OBC quota for public sector undertaking officers and children

The BJP-led NDA government expanded the scope of ‘creamy layer’ to include certain posts in public sector undertakings (PSUs) and public sector financial institutions, thus barring officials and their kin from claiming reservation benefits under the Other Backward Classes (OBC) category.

The decision come 23 years after a 1993 office order of the the Department of Personnel Training (DoPT) provided 27 percent quota for candidates applying under the OBC category for government vacancies.

The order is said to be applicable for officers PSUs, banks and financial institution holding equivalent and comparable posts to governments Group A and Group B.

Union Finance Minister Arun Jaitley said, “An approval was granted to the norms for establishing equivalence of posts.”

The Wednesday’s decision addresses an issue pending for nearly 24 years. It will ensure that the children of those serving in lower categories in PSUs and other institutions can get the benefit of OBC reservations, on par with the children of people serving in lower categories in government.

According to the new decision all executive posts including board level executives and managerial-level posts in the PSUs will be treated as equivalent to group ‘A’ posts in government and will be considered ‘creamy layer’.

While, officials working in the posts of  junior management grade scale 1 and above in public sector banks, financial institutions and public sector insurance will be treated equivalent to group A posts in the government.

For persons working as clerks and peons in PSUs the income test as revised from time to time will be applicable for the benefits under the OBC category.

A senior official of the Union Finance Department said that each individual units will place the matter before their respective boards to identify individual posts.

The income limit defining 'creamy layer' for OBC reservation was last week raised to Rs 8 lakh per annum from Rs 6 lakh. People earning more than Rs 8 Lakh will be treated as ‘creamy layer’. People under ‘creamy player’ are excluded from OBC benefits.  

(With PTI inputs)