The Hindu Business Line : Kerala restores leave surrender facility

THE Kerala Government has decided to restore `leave surrender' to its employees three years after a financial crunch forced it to do away `temporarily' with the facility.

Briefing newspersons on the proceedings of a routine meeting of the State Cabinet, the Chief Minister, Mr A.K. Antony, said the Government proposed to restore the benefits in their entirety.

"It is not possible, however, to bring back all at one stretch. We'll do it in phases," he added, without disclosing the additional commitment the policy decision would bring to bear on the exchequer.

The State Government had announced a slew of harsh measures to bring down salary and other administrative costs in early 2002 as part of its efforts to overcome an acute financial crisis. The measures, mainly targeted at the Government employees, included a voluntary off-duty scheme, abolition of leave surrender and redeployment of surplus staff.

The cost-cutting exercise was extended to cover the Ministers and top Government officials, too. They were estimated to lead to a saving of Rs 500 crore during that financial year, and Rs 800-900 crore in the next. The Ministers had taken a 20 per cent cut in their salary for six months. Besides, each Minister was told to stay put in the Capital at least for four days every week in order to cut down on their travel costs.

Under the voluntary off-duty scheme, the employees would be given 75 per cent of their basic salary and dearness allowance in the first year and 50 per cent in the second year. Leave surrender stood abolished and payment for the leave already accrued would be made at the time of retirement.

Self-financing colleges: In another decision on Thursday, the Government decided to promulgate an ordinance to regulate the fee structure for self-financing medical and engineering colleges in the State.

A Cabinet Committee had been asked to frame the ordinance and submit the same during the next meeting of the Cabinet, the Chief Minister said.