POINTWISE REPLY TO THE OBJECTIONS RAISED BY DIRECTOR DISTRIBUTION

OFFICE
1. The work of FOC under suburban circle started on 1st June 2017 and was for a period of
one year. The work was to provide CHB (complaint Handling Bikes) in all the divisions for
a period of one year. The work of FOC (Fuse of Call) for 2017-18 for Ahmedgarh ,
Jagraon and Suburban Division, (Lalton Kalan) under Suburban Circle was awarded to
M/s R.K. Electrical Abohar vide Work order no 02/Sub-Ldh/2017-18 Dated 26-05-201 for
Rs. 97,48,477.44/- and the work for Raikot and Adda Dakha Divisions was awarded to
M/s Gurm Traders, Amargarh vide Work order No 01/Sub-Ldh/2017-18 Dated 26-05-
2017 for Rs.75,14,451.36. The bills were supposed to be submitted every month,
however the contractor was having the practice of submitting bills after 2 or 3 months.
These bills were thoroughly scrutinized, pre audited and then paid. All the statutory
contributions were made by the contractors in their initial bills which were thoroughly
checked and passed for payments hence, both the contractors were paid approximately
total Rs 84 Lacs by all the Divisions under suburban Circle. Thereafter the contractor
stopped submitting its monthly bills but the FOC workers remained on duty and
performed useful work uptill Feb 2018. The division wise details of payments made,
work done, and balance payment due is tabulated below for ready reference computed
on the basis of minimum basic statutory contributions such as ESI and EPF.

Balance Payment Liability

Payment Made
Payment Made Bills submitted Payment to be on PSPCL (as
to Contract Work done
Name of Name of to the Total value of and payments Made to Principle Employer)
Employees by upto the
Division Contractor Contractor up Work Done (A) made to Contractor as for Payment to
the Contractor Month
to the Month contractors (B) per Work Order Employees of
upto Month
(A-B) Contractor

Lalton R K Electricals Aug-17 Aug-17 Feb-18 2995625 1078452 1917173 1184193

Ahmedgarh R K Electricals Oct-17 Oct-17 Jan-18 2538665 2005546 533119 460520

Jagraon R K Electricals Sep-17 Sep-17 Feb-18 2690986 1945060 745926 377754

Raikot Gurm Traders Oct-17 Oct-17 Feb-18 3021013 1751806 1269207 614026

Adda-Dakha Gurm Traders Aug-17 Aug-17 Feb-18 3351039 1781829 1569210 1381558
TOTAL 14597328 8562693 6034635 4018051

Therefore it is clarified that an approximate amount of Rs 40 Lacs is only required to

pay the salaries to workers for those months for which the workers remained on duty
but the contractor did not submit any bills although numerous letters were written to
both the contractors by all the divisions and the circle but both the contractors did not
respond to any of the letters/ notices.
 2. PSPCL had engaged contractors for the work of FOC in suburban circle and the
employees were given appointments by the contractors. The contractor was in habit of
submitting 2-3 monthly bills together, therefore after few months of the work, the
contractor stopped submitting bills, but the workers remained on duty. Many letters
were written by the divisional offices and the circle office but the contractor did not
responded to any of the letters therefore proceeding were initiated to terminate this
contract which after giving due opportunity both the contracts were terminated on
04.04.2018, However the workers remained on duty after Oct 2017 till Feb 2018.
3. The contractor was in habit of submitting 2-3 monthly bills together, therefore after few
months of the work, the contractor stopped submitting bills but the workers remained
on duty. Many letters were written by the divisional offices and the circle office but the
contractor did not responded to any of the letters, therefore proceeding were initiated
to terminate this contract which after giving due opportunity (to avoid legal
complications), both the contracts were terminated.
4. Although PSPCL is already in practice of hiring electricians from PESCO and they are
given this arduous duty allowance, therefore these contracts were compared with
PESCO standards for the equating purpose according to the principal of equal work
equal pay and to cover any further legal complications, however fresh calculations
based on only statutory contributions having legal impact are done and are reproduced
below for ready reference.

Sr. No. Discription Amount

1 Minimum Wages applicable from 01.09.2017 9300
2 EPF Employer Contribution (@13.15%) 1223
3 EPF Employee Contribution (@12%) 1116
4 Total EPF Deposit per Worker per Month 2339
5 ESI Employer Contribution (@4.75%) 441.75
6 ESI Employee Contribution (@1.75%) 162.75
7 Total ESI Deposit per Worker per Month 604.50
8 Salary Inhand of a Worker per Month 8021.25
9 Cost per Worker per Month to PSPCL 10964.75
10 Cost per CHB per Month to PSPCL 21929.50

5. The case is pending in the court of Asstt. Labour Commissioner Ludhiana, who has
verbally conveyed that in this case PSPCL is the principal employer and is bound to pay
the salaries to workers for the period they remained on duty.
6. Legal opinion will be obtained before submitting the agenda.

Further it is again submitted that the amount of Rs 4.08 Cr has already been approved for
both Khanna and Suburban Circles by the committee of WTD’s in its meeting No 192 held on
27.4.17 against CE/Central agenda No 02 dated 22.3.17. and Work order no 02/Sub-Ldh/2017-
18 Dated 26-05-201 for Rs. 97,48,477.44 and Work order No 01/Sub-Ldh/2017-18 Dated 26-
05-2017 for Rs.75,14,451.36 were issued. Out of which payment of Rs. 84,00,998 Lac has
already been paid to the contractors by deducting Rs.3,88,286 as security. The total liability of
PSPCL such as statutory contributions and amount required to be paid to the workers is Rs
5102040. Therefore the total expenditure to be incurred in completing this project is Rs.
1,35,03,038 (Rs 84,00,998 plus Rs 5102040), which is within the already approved limit of Rs.
1,72,62,928.80 (Rs. 97,48,477.44 plus Rs. 75,14,451.36). Moreover by making payments by its
own PSPCL will save on the contractor's margin and GST other than complying with the legal
obligations, being the principal employer.

Submitted for kind consideration

ASE/DS ASE/DS ASE/DS Sr. Xen/DS Sr. Xen/DS

Suburban, Lalton Jagraon Adda-Dakha Raikot Ahmedgarh