Financial Assistance and Stipulations

The Department for International Development (DFID), UK has agreed to provide financial assistance to the tune of 80% on three component of Voluntary Retirement benefit i.e. 21 days of ex-gratia payment for each year of completed service + gratuity + leave encashment and the balance 20% thereof is met by the State Government. DFID has committed assistance of 10 million pounds (Approximately Rs. 70.00 Crore) for implementation of VRS with the following stipulations before any VRS payments are authorized- a) Enterprises should be prioritized according to appropriate criteria, strategic importance, and physical burden potential in improved performance. b) Clear prioritization / reform plans are approved before VRS payments are authorized. In accordance with the aforementioned approach of the DFID, inclusion of additional PSUs under the DFID assisted Programme would be subject to prior approval of a clear reform and restructuring action plan. Without fulfilling these pre-conditions, new PSUs would not be entitled to receive DFID assistance for administering VRS.