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Chennai-2, 27.10.2010 To The Chairman, Tamil Nadu Electricity Board, 144, Anna Salai, Chennai 600 002.

. Letter No.TNEBEA/ GS/ F.Restr/D. 74/2010, dated : 27.10.2010 Sub: TNEB Engineers Association - Restructuring of TNEB Draft Tripartite Agreement Furnishing of Association Remarks Reg. Ref: Letter No.046299 / 452 / G43 / G431 / 2009 24, dated: 19.10.2010 ***** With reference to the letter cited, TNEB Engineers Association communicates a modified text of draft Tripartite Agreement incorporating the views of the Association for kind consideration. Thanking you,

Yours sincerely, (G.Kannan) General Secretary

TRIPARTITE AGREEMENT BETWEEN THE GOVERNMENT OF TAMIL NADU, TAMIL NADU ELECTRICITY BOARD (TNEB) AND TNEB ENGINEERS ASSOCIATION (Regn. No 217/1994)

This Tripartite Agreement entered into on this ........th day of ---------------2010 between the Government of Tamil Nadu represented by its Principal Secretary to Government, Energy Department, (hereinafter called as the State Government), and the Party of the FIRST PART; And The Tamil Nadu Electricity Board, a body corporate constituted under Section-5 of the Electricity (Supply) Act, 1948, (Central Act LIV of 1948) and validly continuing as such under the Electricity Act, 2003 (Central Act XXXVI of 2003) (hereinafter called as The Board which expression shall unless repugnant to the context or meaning thereof include its successors and assigns) represented by its Chairman and the Party of the SECOND PART; And Tamil Nadu Electricity Board Engineers Association (Regn.No. 217/1994)

represented by Thiru.G.Kannan,

General Secretary of Tamil Nadu Electricity Board

Engineers Association, and the Party of the THIRD PART; WHEREAS


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The Government of Tamil Nadu, in G.O(Ms) No 114 Energy Dept, dated 08.10.2008 have accorded in principle approval for the re-organisation of the Board by establishment of a holding company, namely, TNEB Limited and two subsidiary companies namely, Tamil Nadu Transmission Corporation Limited (TANTRANSCO) and Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) with the stipulation that the aforementioned companies shall be fully owned by the Government of Tamil Nadu;

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The officers / employees of the Board may be apprehensive that on such reorganisation of the Board they may be retrenched and/or their service conditions may be adversely affected or their services may be privatised. The Government of Tamil Nadu have clearly stated that such apprehensions of officers / employees are unfounded. For the purpose of smooth implementation of the policy of re-organisation and restructuring of the Board and to dispel the apprehensions that are being raised by the various Trade Unions and Associations mentioned in Clause 2 above, the parties herein mutually agree as under and undertake to abide by the same to achieve the aforesaid objective; Now, therefore, in consideration of the premises, mutual agreements, Covenants and conditions set forth herein, it is agreed by and between the parties as follows
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In so far as this Tripartite Agreement is concerned:a. b. c. d.

State Government means the Government of Tamil Nadu; Board means the Tamil Nadu Electricity Board; Holding Company means the TNEB Limited ; Successor entities means TNEB Limited, TANTRANSCO and TANGEDCO ; Subsidiary Companies means, TANGEDCO and TANTRANSCO ;

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In the event of re-organization of the Board into TNEB Limited (as holding company) and two subsidiary companies viz. Tamil Nadu Transmission Corporation Limited (TANTRANSCO) and Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) as separate Corporate entities, it is hereby categorically guaranteed by the Government of Tamil Nadu that there will not be further restructuring and proposed successor entities shall continue to remain fully Government Owned Corporations and no part of the successor entities will be privatised or franchised in future, deviating from the proposed pattern of

Government Owned Corporations. It is agreed that there will not be any outsourcing in any form in executing the technical works by the successor entities
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The State Government and the Board hereby guarantee that the formation of the Government Owned Corporations shall promote the profitability and the viability of the resulting entities, ensure economic efficiency, encourage competition and protect consumer interests as mandated by the section 131(5)(a) of the Electricity Act 2003 and the officers/ employees shall contribute effectively to achieve the mission. The State Government and the Board hereby guarantee that there shall be no retrenchment of existing officers / employees on account of such restructuring and their status/service conditions shall not in any way be less favourable than those which would have been applicable to them if there had been no such reorganisation and the transfer scheme. The terms and conditions of the existing officers / employees of the Board upon deputation to the corporate entities shall not be inferior / detrimental to the present terms and conditions in the Board. In fact, an endeavour would be made to rationalize the terms and conditions to provide for career growth and other welfare measures more beneficial to the officers / employees recognising that the employees are an essential part of the growth of power sector and its operation in an economic and efficient manner. The principles and/or terms and conditions of service of the existing officers / employees in matters like promotions, appointments, transfers, leave, all allowances, pension and other allied terminal benefits etc. regulated by existing regulations/ service rules are guaranteed to continue to be the same during deputation to the respective successor entity of the Board. With regard to pay revision, the present system of bipartite negotiation shall continue with TNEB Engineers Association by the respective successor entities under the aegis of TANGEDCO Ltd with the approval of the State Government.

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The parties of the first and second part unconditionally guarantee the payment of Pension, Family Pension, Retirement / Death benefits such as gratuity, encashment of earned leave and the existing benefits including GPF and periodical Dearness Allowance Relief and all other terminal / applicable benefits which are being implemented in accordance with Government Orders intended to the Government Pensioners and are in force as on the date of signing of this agreement to all existing pensioners/ Family Pensioners and existing officers / employees who are entitled for payment of pension. The parties of the first and second part unconditionally guarantee payment of retirement benefits such as Pension, Family Pension, General Provident Fund / Contributory Provident Fund, Gratuity etc. to the existing officers / employees working on deputation to the successor entities on par with the Government Orders intended to the Government Pensioners. It is agreed by the parties of first and second part of the tripartite agreement that a Master Pension Trust shall be constituted and controlled by TANGEDCO Ltd, with separate Board of Directors for monitoring the payment of pension and other allied terminal benefits payable to the existing pensioners / family pensioners and existing officers / employees who are entitled for pension. Representatives from the Recognized Trade Unions / Associations / Pensioners Associations may also be nominated in the Board of Directors for the management of the above trust. In respect of existing pensioners, successor entities of TNEB shall deposit pension amount every month well in advance into the Master Pension Trust and in the event of default, the Government of Tamil Nadu shall deposit such liability into the trust ensuring trouble-free payment of pension to all existing pensioners without slippage every month. In respect of existing officers / employees in service, who are entitled for payment of pension, the successor entities of TNEB shall deposit the anticipated

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pension liability on monthly basis into the Master Pension Trust and in the event of default, the Government of Tamil Nadu shall deposit such liability into the trust ensuring trouble-free payment of pension to all existing officers / employees on retirement without slippage. It is agreed to provide a pension component in the tariff applicable to various classes of consumers for sale of every unit of electricity and such component shall be deposited in the Maser Pension Trust.
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All the existing welfare measures like the scheme for compassionate appointment, medical reimbursement, present medical insurance till its validity period and thereafter by any other suitable scheme/insurance, educational loan, health fund, HBA, Conveyance advance, marriage advance, festival advance or any other existing loans and advances shall be continued generally following the schemes introduced / followed by the State Government to the Government servant as has been done earlier. In respect of all the statutory and other schemes such as Provident Fund, Gratuity and other superannuation benefits of the officers / employees and matters related to employment, the successor entities shall stand substituted for all purposes of rights, powers, and obligations of the Board / Successor entities. It is agreed by the parties of first and second part of the tripartite agreement that all Government Orders related to the payment of pension and other allied terminal benefits shall be scrupulously adopted then and there without any delay and deviation. All benefits and concessions likely to be extended by the Government of Tamil Nadu to the Government Pensioners in future may also be made applicable to the successor entities and extended to the Pensioners then and there. It is agreed by the parties of first and second part of the tripartite agreement that all pending issues like (a) adoption of G.O. Ms. 272 & 273 dated 15.06.1998, (b) Payment of Arrears consequent to adoption of G.O. Ms No.579 dated 15.09.2006 vide (Per) B.P. (FB) No.2 dated 01.02.2008 (c) Merger of Dearness Allowance

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w.e.f 01.01.2006, (d) Encashment of Unearned Leave on Private Affairs and similar issues which are yet to be adopted by the Board shall be implemented within a period of three months.
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The period of service of the existing officers / employees under the Board and the successor entities shall be treated as continuous service for the purposes of all service benefits including promotion, fixation of pay, movement to Selection Grade / Special Grade, Payment of Pension and other retirement / terminal benefits. All benefits for the services rendered by the officers / employees in the Board as on the date of reorganisation i.e. the effective date, shall be protected. Even on formation of TNEB LTD, TANTRANSCO and TANGEDCO, all the existing officers / employees of the Board will be retained under the control of TANGEDCO Ltd. The officers / employees shall be on deputation to the successor entities asis where-is basis and shall be treated as officers / employees of TANGEDCO Ltd under common seniority as hitherto maintained by TNEB. The service conditions of the officers / employees in the successor entities shall not be less favourable to them than that has been provided by the Board as guaranteed by proviso of section 133 (2) Electricity Act, 2003. It is agreed that all senior level positions in the successor entities shall be filled up only from the officers of TANGEDCO Ltd and there will not be appointment from external sources.

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The officers / employees deputed to the successor entities are bound to fulfil the obligations undertaken by them to the Board including the repayment of loans, advances and other sums due which remain outstanding from the officers/ employees on the effective date. It is agreed by the parties of first and second part of the tripartite agreement to implement appropriate Assured Career Progression Programme, on similar lines of relief granted to the Government Doctors by the Government of Tamil Nadu within a period of three months from the date of signing of this agreement. All disciplinary proceedings pending on the date of reorganisation following the existing rules, Regulations, Certified Standing order and all other instructions /

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orders in force on the effective date shall be dealt with by the respective successor entity. All disciplinary cases already finalised and or punishments awarded by the Board under the existing rules/regulations/certified standing orders etc., shall not be reopened, unless permitted by the rules/regulations.
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The rule of reservation hitherto followed in the Board shall be continued in the successor entities also following the rules of reservation followed by the State Government including such changes/modification as may be introduced by the State Government from time to time. If the newly constituted corporate entity / entities fail to implement this agreement in any respect, the State Government shall take full responsibility. The successor entities may introduce a new set of rules, regulations, certified standing order, etc., in consultation with Trade Unions / Associations, which shall be within the ambit of the first proviso of section 133(2) of Electricity Act, 2003.

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In the event of any dispute(s) / difference(s) arising out of this Tripartite Agreement, effort shall be taken by the parties to resolve such dispute(s) / difference(s) amicably in the first instance. If such dispute(s) / difference(s) could not be resolved within 60 days, such dispute(s) / difference(s) excluding the matters affecting the fundamental rights of the officers shall be referred to a panel of three arbitrators, one to be nominated by the TNEB Engineers Association, the second to be nominated by the respective successor entity and the third to be nominated by the State Government. Court at Chennai shall have the jurisdiction in the event of any litigation. This Tripartite Agreement shall be binding to the Government of Tamil Nadu, Board / Successor entities and Trade Unions / Associations / Pensioners of the Board / successor entities and all the existing officers / employees of the Board. The first party, the Government of Tamil Nadu shall have power to issue orders /

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instructions / directions, if any from time to time to implement any of the provisions of this Tripartite agreement and other related matters incidental there to. In such case, it shall be the duty of other parties to this Tripartite agreement to treat the same as part and parcel of this Tripartite agreement, subject to the right enshrined in sub-clause (23) of clause 5 of this Tripartite agreement;
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The Tripartite Agreement executed by and between the parties herein shall be duly notified in the Tamil Nadu Government Gazette.

IN WITNESS WHEREOF the parties hereto have signed this Tripartite Agreement on the day and date written here-in-above. Representative of Government of Tamil Nadu Representative of Board Representative of TNEB Engineers Association Witnesses 1. 2.

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