Govt staff against FDI in Rlys, defence and pension

Govt staff against FDI in Rlys, defence and pension

Junior Central government officials are “vehemently opposed” to the plans to bring Foreign Direct Investment (FDI) in Railways, defence and pension funds.

During their meeting with senior bureaucrats, they also opposed the plans to corporatisation of postal services.

According to the minutes of the February 25 meeting released recently, junior officials known as staff side expressed their concern on “silence” of the government on their demand for discussion on FDI and Public-Private-Partnership.

They were for “no privatisation, PPP or FDI in Railways and Defence establishments and no corporatisation of postal services”, it said.

“Staff side vehemently opposed 100 per cent FDI in the Railways and 49 per cent FDI in Defence Establishment. The staff was advised to meet and discuss the issue with the concerned departments," the minutes said. Secretary (Personnel) Sanjay Kothari chaired the meeting.

They also said the recent decision of the Cabinet to allow FDI in pension fund operations has made the real intent of the Pension Fund Regulatory and Development Authority (PFRDA) Act “unambiguously clear”. The employees said the FDI would facilitate the mutual fund operators to invest the funds outside India.

“It is clear that the decision behind the contributory pension scheme was the pressure imposed on government and taken without consulting Staff Side and therefore it is to be opposed at all cost and with vehemence,” it said.

The government “should not go ahead” with its intention of induction of FDI in pension fund companies and demanded to restore the old pension scheme.

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