F.No.EP.

17(3)/2011
FOOD CORPORATION OF INDIA
HEADQUARTERS, KHADYA SADAN
16-20, BARAKHAMBA LANE,
New Delhi, dated 09.10.2012
(Circular No.EP-14-2012-23)
Subject: Instructions regarding regulation of engagement of employees
on overtime and timely payment of Overtime Allowance to the
staff for the services rendered while ensuring maximum
economy in incurring expenditure on this account.
Attention is invited to Headquarters Circulars 63/1987 dated 05.10.1987,
34/1992 dated 16.11.1992, 55/1994 dated 01.09.1994, 12/1996 dated 15.03.1996,
26/1998 dated 15.07.1998, 37/1998 dated 13.08.1998, 24/2000 dated 04.07.2000,
EP-14-2004-04 dated 11.02.2004, EP-14-2007-11 dated 16.05.2007 advising all the
administrative authorities for exercising an effective control on OTA expenditure and
utilisation of maximum manpower during normal working office hours so that the
expenditure on OTA could be kept at the barest minimum. Time and again it has
come to the notice of Hqrs that the controlling authorities at District, Regional,
Zonal or Hqrs level sometimes engage staff on overtime in violation of the existing
terms, conditions, ceilings etc and beyond budgetary provisions. Resultantly, the
OTA claims of the staff remains pending for months and years together which in
turn leads to industrial unrest.
2.
Therefore, need has been felt to compile the prevailing instructions on the
subject and issue one consolidated circular, in supersession of all existing circulars
on OTA, for strict compliance. In case any of the provisions of the consolidated
circular is contrary to the extant instructions or does not cover any of the
instructions already circulated, matter may be referred to Hqrs for clarification with
specific reference to such earlier instructions along with comments and
recommendations.
3.

Applicability
This circular is applicable to all Cat-III & IV Staff of the Corporation.

4.

Rates

(i)
The O.T.A. rates for all the Category III and IV employees of the Corporation
in the non-statutory areas i.e. where exemption under the relevant Shops and
Establishment Acts has been granted shall be applicable at the rate 1.1 times of
hourly normal rates.
(ii)
The O.T.A. rates to the FCI establishment in the statutory areas i.e. where
exemption has not been granted shall be applicable as per the provision of relevant
Shops & Establishment Act of the relevant State/UTs or in accordance with the
prevailing directions of the Court Case, if any.
(iii)
However, for the purpose of Pay for determining hourly rate of OTA, HRA
element would not be included in pay unless specifically directed to be included in
the relevant Shops and establishment Act.

5. Authorities to sanction OTA

Sl.No
.
1

3
4
6.

Name
of
office
District Offices
(including staff
posted
at
depots)

Authority Competent to sanction OTA

General Manager(Region)
Area
Manager-may
allow
engagement
of
employees on OTA for operational works only, in
exceptional and emergent situations for loading/
unloading of rakes. In such cases, invariably, it
shall be the personal responsibility of the Area
Manager to secure ex-post-facto approval of the
General Manager (Region).

Regional
Offices/
Port Office

Where the total cumulative OTA payable to an

individual in a Financial Year exceeds Rs. 1 Lakh,
prior approval of GM(Region) would be required.
Where the total cumulative OTA payable to an
individual in a Financial Year exceeds Rs. 1.75
Lakh prior approval of ED(Zone) would be
required.
General Manager(Region)
[DGM in the Port Office if not directly controlled
by General Manager(Region)]

Zonal Office
Hqrs

Where the total cumulative OTA payable to an

individual in a Financial Year exceeds Rs. 1.75
Lakh prior approval of ED(Zone) would be
required.
Executive Director (Zone)
Concerned Executive Director

Engagement on OTA basis

To have a strict control over the engagement of officials on overtime in the

statutory/non-statutory areas, all the controlling authorities shall adopt the
following measures:
A.

Measures for engagement of officials on overtime in the

administrative offices like Headquarters, Zonal Office, Regional
Offices, Port Offices and District Offices.
(i)

Overtime payment would be on specific prior authorisation with full

particulars on job expected to be carried out during such overtime.

(ii)

The employees should be allowed compensatory leave (CCL) only in

case they are engaged on holiday/closed days. However, in extreme
cases where they are to be engaged on OTA basis on holidays/closed
days, prior approval of the General Manager (Region) for
District/Port/Regional Office, Executive Director (Zone) in Zonal Office
or Executive Directors in Headquarters shall be obtained giving full
justification for the same.

B.

Measures for engagement of employees on overtime in the areas

like Depot/Rail heads.
(i) All the Controlling Officers are directed to restrict the engagement of
employees on overtime to the extent of actual requirement for
loading/unloading operations of rail wagons. The employees be engaged
on overtime on rotational basis so as to ensure that no
employee/employees are forced to work on overtime continuously. In
any case, it shall be the personal responsibility of the controlling officer
to ensure that engagement of employees on overtime in anticipation of
work like possible placement of wagons on the basis of Movement
programme etc. are not resorted to.
(ii) The engagement of employees on overtime wherever needed shall be as
per following work norms:
The Controlling Authority is required to allow the Assistants Grade.III
(Depot) equal to the number of points to be operated with the help of
equal number of gangs available for operations besides one custodian
only. For example, in case the Controlling Authority, while considering
the workload, feels necessary to operate three points with the help of
three gangs available in the depot for operation; he can engage one
custodian with three Assistants Grade-III (Depot) for such operation. In
case, he feels that five points to be operated with the help of five gangs
available he need not engage more than one custodian with five
Assistants Grade.III (Depot). Where adequate number of AG-III (D) are
not available, AG-II (Depot) may also be engaged interchangeably.
(iii) Under normal circumstances, engagement of employee on overtime for
activities like issues to the State Government and other Agencies,
receipt/loading of trucks shall not be resorted to. In cases where the
Depots have to be kept open beyond normal working hours because of
special requests from the users (viz. State Govt. nominees etc.) and
where the delay is not on account of the FCI, recoveries of expenditure
on Overtime Allowance at actual cost may be made from the users for
which prior written consent shall be obtained from them.
(iv) While the staff need not be engaged on overtime on holidays/closed
days in the normal course, in case need arises, it should be with the
specific prior approval of the General Manager(Region) concerned.
However, for engagement of staff on OTA on national holidays (26th
January, 15th August and 2nd October) specific prior approval of
concerned Executive Director (Zone) shall be mandatory. The employees
should be allowed compensatory leave (CCL) only in case they are
engaged on holiday/closed days. However, in extreme cases where they
are to be engaged on OTA basis on holidays/closed days, prior approval
of the General Manager (Region) shall be obtained after giving full
justification for the same.
(v) Wherever Rakes are placed beyond the working hours, invariably a
Comparative Statement of Cost should be prepared indicating the likely
expenditure on (a) OTA to staff as well as to the Departmental workers;
and (b) on demurrage/wharfage, before a decision is taken with regard
to the timings of unloading. Where the possible expenditure on
demurrage/wharfage is less than the possible expenditure on OTA of
staff and workers, the wagons/rakes may be unloaded during the next

working shift/day and the concerned staff/workers need not be

deployed on OTA.
(vi) Deployment of Port Operations staff on OTA basis should not be
permitted unless the Import/Export Operations are going on.
(vii) Category-IV staff should not be retained on OTA except in very
exceptional circumstances.
7.

Ceiling

(i)
Ceiling and other conditions prescribed for deployment of staff on overtime
basis in the local Shops & Estt. Act shall be followed strictly by the authorities. In no
case the maximum ceiling prescribed in the local Shops & Estt. Act should be
allowed to exceed. Where no such ceiling is applicable or such prescribed ceiling is
more than 150 hours per year, the same should be capped at 150 hours per year. In
other words, the ceiling (of maximum period) should not exceed 150 hours or
maximum number of hours in a year as per the ceiling prescribed in the local S&E
Act as the case may be, whichever is lower. In no case the prescribed ceilings of
local Shops & Establishment Act shall be allowed to exceed. In such an eventuality,
the sanctioning authorities are required to place the factual position before the
Board of Directors through DGM(Hqrs.) in consultation with CGM(A/cs) and
simultaneously, forward a copy of the letter obtained from the concerned Labour
Commissioner granting relaxation in excess of the ceiling prescribed pursuant to the
provisions contained in the local Shops and Establishment Act. While forwarding
cases of OTA beyond prescribed maximum ceiling, it is also to be certified by the
Competent Authority that all the provisions contained in the local S & E Act has
been complied with and detaining of staff beyond the ceiling (as per S&E Act) was
absolutely essential in the interest of the organisation.
(ii)
The engagement of officials on overtime should also be so regulated that no
employee is permitted to be engaged on overtime beyond the maximum ceiling of
1/3rd of the wages during the month. The Controlling officers are directed to
regulate the engagement of employees on overtime accordingly. The Monthly
Wage for this purpose, shall include the element of Basic Pay, Dearness Pay,
Dearness allowance, and House Rent Allowance (only if local S&E Act includes HRA
in the definition of wage). Hourly rate of normal wages will be reckoned w.r.t.
normal working hours of staff in that working place.
(iii)
Such restriction of 1/3rd of monthly wages, shall be regulated on month to
month basis. However, wherever exigencies demand, the restrictions of 1/3rd wages
shall be applied on annual basis.
(iv) Maximum ceiling of 1/3rd restriction may not be insisted upon in the case of
Drivers, Officials controlling them and personal staff of the Regional/Zonal
heads/CGMs and also Officers of the level of CGMs/EDs/MD/Chairman in the
Headquarters.
(v)
Maximum ceiling of 1/3rd restriction may not be insisted upon in the case of
Depots/Railheads for operational works only, in exceptional and emergent situations
for loading/ unloading of rakes. However, in such cases prior approval of the
GM(Region) shall be necessary. In such cases, invariably, it shall be the personal
responsibility of the Area Manager to secure prior approval of the General Manager
(Region).

(vi) Where the total cumulative OTA payable to an individual in a Financial Year
exceeds Rs. 1 Lakh, prior approval of GM(Region) would be required. Where the
total cumulative OTA payable to an individual in a Financial Year exceeds Rs.1.75
Lakh prior approval of ED(Zone) would be required.
(vii) No OTA shall be applicable for persons deployed on tour basis except on
procurement duty. Persons deployed on procurement duty shall have the option to
claim either daily allowance/composite daily allowance (involving night stay) or OTA
but not both. Such option need to be exercised at the beginning of the concerned
procurement season and once exercised shall be applicable for the full season.
(viii) It would be the personal responsibility of the controlling officer to ensure that
no one is engaged on OTA basis in breach of the above ceilings.
(ix) The Drawing & Disbursing Authorities shall keep administrative/sanctioning
authorities informed of the deficiencies noticed with reference to local Shops and
Establishment Act, breach of ceiling etc.
8.

Admission of Claims and Payment

(i)
Whenever staff is deployed on OTA basis beyond the normal working hours,
the payment of OTA for such period should be made. The payment of OTA for
services already rendered cannot be denied for the reasons like non-availability of
budget, ceiling etc, since it is the personal responsibility of the controlling
authorities to ensure availability of budget and compliance of terms, conditions,
norms, ceiling etc as provided under the extant instructions before deploying the
staff on overtime.
(ii)
All the employees should scrupulously follow the procedure to mark their time
of arrival and departure at the main gate of the Office/Depot and the OTA payments
shall be released only after verifying the same from such Register. No OTA claim
shall be entertained unless supported by such entry and no Representation from the
employee shall be entertained in this regard.
(iii)
Under all circumstances, OTA claims shall be processed within a maximum
period of 30 days from the receipt of the claim and payment shall be ensured within
45 days from receipt of initial claim. In case of denial of claim for any reason, such
denial shall also be communicated along with the reason of denial within 45 days
from receipt of claim.
(iv) It shall be the responsibility of the individual concerned to furnish the OTA
claims within 30 days. OTA claims not furnished within 30 days by the employee
concerned shall be treated as lapsed. However, GM(Region) shall have the power to
condone delay in submission of claims upto 30 days and ED(Zone)/Concerned ED in
Hqrs shall have the power to condone delay in submission of claims upto a further
period of 30 days on the recommendation of GM(Region)/concerned GM in case of
Hqrs/Zone. No claim shall be entertained in future in this regard beyond this period
and neither shall such delay be condoned by any authority.
(v)
In all cases, while forwarding the OTA claims for payment, the Competent
Authority shall, inter-alia, certify as to the extent of completion of the job assigned
to the employees at the time of their engagement on overtime.
(vi) It shall be ensured that the applicability of provisions of Income Tax and any
other Central/State Legislations are duly complied with while releasing payment.

(vii) All administrative authorities shall ensure that the proposals for
budgets/additional funds for OTA is taken up with Budget and Cost Division through
proper channel within the period as prescribed by them at the time of finalisation of
Budget Estimates/Revised Estimates for each financial year. All administrative
authorities are to ensure that due care and caution is exercised in passing O.T.A.
claims and the total expenditure on this account should in no case, exceed the
overall budgetary ceiling. Where such a situation is expected to arise in the near
future, appropriate request for additional budget shall be furnished through the
proper channel as prescribed by Budget and Cost Division of Hqrs. For the purpose
of utilisation of budget, OTA sanctioned but not paid shall also be considered.
(viii) The expenditure on OTA is to be booked separately for Office staff and Depot
staff in the Books of Account.
9.

Control, Monitoring and Reporting

(i)
The Executive Directors(Zone)/ General Managers(Region) shall identify the
areas in the Region/District where there is heavy incidence of OTA without much
turn over/operations and take necessary action to curb the incurrence of the
overtime allowances substantially in such areas. All Administrative Authorities
should exercise their powers with prudent restraint and in consultation with
associate finance and ensure that OTA expenditure does not exceed the pro-rata
budget allotment on quarterly basis.
(ii)
A comparative analysis of OTA incurred vis-a-vis men in position and OTA
incurred per person may be carried out on monthly basis by all
ED(Zone)/GM(Region) for the Regions/Districts under their control.
(iii)
Wherever OTA paid to an individual exceeds Rs.1 Lakh in a Financial Year, the
same shall be reported to Zonal Office for the purpose of Zonal Performance Review
Meeting.
(iv) Wherever OTA paid to an individual exceeds Rs.2 Lakh in a Financial Year, the
same shall be reported to DGM(Hqrs) for the purpose of Monthly Performance
Review Meeting.
(v)
It should be ensured that the consolidated statement of expenditure,
including details of unpaid amount, as prescribed by Budget and Cost Division of
Hqrs. is furnished within the prescribed time frame.
10. Any violation of these instructions or any lapse in the implementation at any
level shall be viewed seriously and erring officers/officials shall be liable for
appropriate disciplinary action for such lapses.
11. It would be the personal responsibility of the controlling officer to ensure that
no one is engaged on OTA basis in violation of the extant instructions and in
anticipation of approval of the competent authority.
12. These instructions may be duly circulated amongst the officers/officials and
copy of this Circular be exhibited on the Notice Board.
Sd/(R.K.Chaturvedi)
General Manager(P&IR)
Distribution:
As per standard mailing list.

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All EDs(Zone)/GMs(Region)/DGMs(PO)/Area Managers, FCI.

The CGM(East/North), Chennai/New Delhi.
The ED(Engg), FCI, Hqrs., New Delhi.
The General Manager(F&A), FCI, Hqrs., New Delhi.
The General Manager(CPF/GPF)/DGM(Res.Cell), FCI, Hqrs. New Delhi.
The Director, IFS, FCI, Plot No.87, Sector-18, Gurgaon.
The General Manager(IA&PV), FCI, Hqrs New Delhi.
PS to CMD/ED(P)/ED(C)/ED(S)/ED(G)/ED(V)/ED(F)/ED(T)//ED(L)/ED(IT)/ED(Engg)/CGM(A/cs//Fund), FCI, Hqrs., New
Delhi.
The Secretary, FCI, Hqrs., New Delhi.
The Director of Audit(Food), FCI, Hqrs., New Delhi.
The Editor, Annapurna, FCI, Hqrs., New Delhi.
All Heads of Divisions, FCI, Hqrs., New Delhi.
All Senior Medical Officers, FCI.
Liaison Officer, SC/ST Ex-Servicemen Cell, FCI, Hqrs., New Delhi.
AGM(Hindi), FCI, Hqrs., New Delhi.
AGM(E.I/E.II/G.II/Coord./WRC/Bills/IA&PV/OMISS/EP/Fin./RPI/Vig./Pension/E&P/IR-L/IR-S, FCI, Hqrs., New Delhi.
The Director of Commercial Audit, 4th floor, Mistry Bhavan, Dinsha Wachha Road, Churchgate, Mumbai-20.
The Director of Commercial Audit, 68/7, Murgesa Naicker Officer Complex, Greams Road, Chennai.
The Dy. Director of Commercial Audit, c/o S.C.E.23, IInd floor, Sector 17, Chandigarh.
The Sr. Regional Audit Officer, c/o FCI RO Chetak Building, Maharana Pratap Nagar, Habibganj, Bhopal(MP).
The General Secretary, FCI Officers Association, Hqrs., New Delhi.
The General Secretary, BKNK Sangh, Union Office, FCI, Hqrs. Basement New Delhi
The General Secretary, BKNK Sangh, C/o FCI ZO(N)/(E)/(W)/(S)/(NE), New
Delhi/Kolkata/Mumbai/Chennai/Guwahati.
Regional Secretary, BKNK Sangh, C/o FCI ZO(N), New Delhi/Punjab(Chandigarh)/Haryana(Chandigarh)/Shimla(HP)/
Jammu(J&K)/ Lucknow(UP)/Uttaranchal(Dehradun)/Jaipur(Rajasthan), ZO(East) Region, Kolkata/West Bengal/
Bhubaneswar(Orissa)/Zonal Office(NE), Guwahati, Assam, Guwahati ZO(West) Region,
Mumbai/Mumbai(Maharashtra)/ Gujarat(Ahmedabad)/Bhopal (MP), ZO(S) Region, Chennai,
Hyderabad(AP)/Trivandrum(Kerala)., R.O. Shillong, RO
Tamilnadu, RO Bangalore.
General Secretary, FCI Executive Staff Union (Regd.No.1158), BH-141, East Shalimar Bagh, Delhi-110 088.
Regional Secretary, FCI Executive Staff Union (Regd.No.1158), C/o FCI RO Patna(Bihar), Jharkhand(Ranchi), Shillong NEF
Region, Chattisgarg(Raipur), Chennai(Tamilnadu), Bangalore(Karnataka).
General Secretary, SC/ST Employees Welfare Association(Regd. No.11357), BH 113-A, East Shalimar Bagh, Delhi110088.
All India General Secretary, FCI SC/ST Employees Welfare Association, 30, Mohan Nagar, Salaigur Post, Chennai-73.
FCI ST Employees Welfare Association(Regd. No.3235/2001) FCI, DO Tarnaka, Hyderabad-10.
President & General Secretary In-charge, FCI Employees Union (Regd.No.2237/New Delhi), 16, Haripada Dutta Lane,
Kolkata-700 033.
FCI Engineers Welfare Association (Regd. No.60094/2007) 250, Bannu Enclave, Pitampura, Delhi
President FCI Class-IV Employees Union(Regd.No.2779, New Delhi), 1491, Sector 49, Pushapak Complex, Chandigarh
(Punjab).
FCI Accounts Employees Union(Regd.No.H-95), C/o Food Corporation of India, R.O., HACA Bhavan, 3rd Floor, Opp. Public
Garden, Hyderabad(A.P.).
Manager(RTI Cell), FCI, Hqrs., New Delhi.
All India Secretary, FCI Class IV Employees Union (Regd. No. 2779, New Delhi), A/11/458, Kalyani, Nadia, West Bengal741235.
The General Secretary, FCI Cat.III & IV Employees Union (Regd. No.B-2597), FCI, BSC, Dowaleswaram, East Godavari
District(AP).
Secretary, Shree Food Corporation of India Retired Employees Federation,(Registration No. 6508), 805, Embassy Tower,
Jawahar Road, Near Tar Office, Opposite Jubilee Garden, Rajkot- 360 001.
BRF/Notice Board.
Incharge, EP Section, P&IR Division for hosting on FCI Webpage.
Webmaster, Computer Division for hosting on FCI Webpage.