CSD: Unit Run Canteen's employees are not government employees

CSD: Unit Run Canteen's employees are not government employees

Press Information Bureau
Government of India
Ministry of Defence

20-August-2013

Unit Run Canteens

Demands from various forums have been received for implementation of Sixth Pay Commission recommendations in respect of URC employees, however, these recommendations have not been accepted as URC employees are not government employees.

The sales turnover and profit generated by CSD is as under:
(Rs. in Crore)

Year	FY 2011-2012	FY 2012-2013
Sales	Rs.9746.59	Rs.10245.35*
Profit	Rs.216.30	Rs.219.34*

*Unaudited figures.

As URC employees are not Government employees. They are given pay and allowances as per the rules regulating the terms and conditions of the services of the civilian employees of the URCs, issued by Army Headquarters. Consequent to Sixth Pay Commission, the basic pay of all categories has been increased by 50% w.e.f. 01.02.2009 and 15% w.e.f. 01.12.2009. Another 15% raise has been given w.e.f. 03.04.2013.

This information was given by Defence Minister Shri AK Antony in a written reply to Shri Hukumdev Narayan Yadavin Lok Sabha today.

PIB

CSD Unit Run Canteens : Framing of Rules for URC Employees

CSD Unit Run Canteens : Framing of Rules for URC Employees

 Ministry of Defence

Framing of Rules for URC Employees

The Unit Run Canteen employees are getting paid as per the rules regulating the terms and conditions of the services of the civilian employees of the URCs, issued by Army Headquarters in April 2003. These rules were made as per the directions of Hon`ble Supreme Court.

It has been held by the Hon`ble Supreme Court in its order dated 28-4-2009, in the case of R.R. Pillai Vs the commanding officer HQ SAC(U), that employees of the URC are not government servant.

Unit Run Canteens (URCs) employees are not Government employees, hence recommendations of Sixth Central Pay Commission are not applicable to them.

This information was given by Defence Minister Shri AK Antony in a written reply to Shri Shadi Lal Batra in Rajya Sabha today.

Source: PIB News

CSD Canteen facilities for CAPF Personnel

CSD Canteen facilities for working and retired personnel of CAPF

Whether the Government has received any request for providing Canteen Store Department (CSD) facilities to the working and retired personnel of Central Armed Police Forces (CAPF)..!

The Minister of Home Affairs Shri.R.P.N.Singh has replied to the question in a written form in Lok Sabha on 19th March, 2013 as follows…

"Accordingly a proposal to extend the Canteen Stores Department (CSD) facility to the CAPFs personnel, including serving and retired personnel, was duly considered in consultation with the Ministry of Defence, but it could not be agreed to because of the limited resource and infrastructure of the CSD.

On the lines of CSD, the Government has launched a Central Police Canteen System on 18/09/2006 for the CAPFs personnel, including the retired CAPFs personnel and their families. As on date 126 Master Canteens and 1009 unit Central Police Canteens are functioning throughout the country , including Rajasthan.

Source: CGEN.in
[http://centralgovernmentemployeesnews.in/2013/05/csd-canteen-facilities-for-capf-personnel/]

More than 5000 employees working in CSD Canteens

More than 5000 employees working in CSD Canteens

The below statistics was provided in the Lok Sabha by the Minister of Defence on 10th December 2012 as in the written reply to a question raised regarding the employees working in the Canteen Stores Department and their pay...

There are approximately 5400 civilian employees working in various Units Run Canteens (URCs). The pay and benefits of URC employees are governed as per rules regulating the terms and conditions of the services of civilian employees of the URCs issued by Army Head Quarters. The basic pay of all categories of URC employees has been increased by 50% w.e.f. 1.2.2009 and another 15% w.e.f. 1.12.2009.

CSD Canteens : Funds spent on purchase through CSD

CSD Canteens : Funds spent on purchase through CSD

Funds spent on purchase through CSD

The below information was given by the Minister of Defence Shri.A.K.Antony as a written reply for the questions raised by the member of Shri.Shrimati Kusum Rai in Rajya Sabha on 12.12.2012.

The questions are...

Whether CSD procurement has been found highly opaque and financial norms have been flouted to provide poor quality of products to armed forces..? and 

Whether almost 300 firms supplying items to CSD do not have market credentials..?

A detailed statement submitted by the Minister in the House as follows...

‘FUNDS SPENT ON PURCHASES THROUGH CSD’

Government does not purchase material for its use from Canteen Store Department (CSD).  However, CSD procures materials for Unit Run Canteens (URCs) of Tri-Services.  The details of funds spent by CSD on purchases of material during 2011-12 and 2012-13 are as mentioned below :-

Financial Year	Net Purchases (Rs. in Crore)
2011-12	9734.78
2012-13	6027.84 (up to October 2012)

Purchases, as per rules, are to be made by CSD directly from the manufacturers or sole distributors / importers of the products in the country as per approved rates and terms of supply agreed to between the suppliers and the CSD.  All items approved for introduction in CSD and the firms supplying these items are cleared by various Committees such as Preliminary Screening Committee, Price Negotiation Committee etc and finally approved by the Board of Administration (BOA).

All items prior to placement of initial order have to undergo market survey to confirm popularity, after sales service arrangement etc., followed by factory inspection, hygiene inspection.  All edible products are tested by Composite Food Laboratories.

Though firms having market credentials are approved as supplier by BOA, instances have come to the notice of the Ministry regarding financial irregularities in CSD.  Recently two officers of CSD have been arrested by CBI on graft charges.  As reported by CBI, investigation in the matter is going on.

Continuous efforts are being made to bring in more and more transparency in procurement, such as uploading orders details, payment details etc. on CSD website.