NPCIL extended undue benefits to officials resulting in loss

The Nuclear Power Corporation of India Ltd (NPCIL) extended "undue benefits" of city and site allowance to those officials who were already provided with independent transport, resulting in loss of Rs 105 crore, a report by Comptroller and Auditor General (CAG) today said.
The CAG observed that allowance of Car Transport Allowance and City Transport Allowance to officers who were provided with transport facility from residence to place of duty and in nearby towns was in "complete violation" of the established practice of conveyance allowance and also against the norms laid down by the government.
This led to consequential extra expenditure of Rs 105.47 crore during September 2008 to March 2015.

The NPCIL, a PSU under the Department of Atomic Energy operates nuclear power plant across the country.
The NPCIL in December 2013 had stated that due to nuclear safety considerations it is essential that NPCIL maintains a fleet of transport for the purpose of evacuation of employees as a part of emergency preparedness as well as to ensure staff availability during local unrest in some areas.
It further stated that keeping in mind the remoteness of areas and as a part of the retention strategy of young talent, it was authorised by the NPCIL Board to grant conveyance allowance to employees in place of transport allowance.

"Thus while finalising the amount that conveyance, it was decided that conveyance allowance be paid at 40 per cent of the base rate even to those employees who were provided with official transport.
Terming the explanation as "unacceptable", the CAG said the NPCIL was already paying site allowance at the rate of 10 per cent of the basic pay plus non practicing allowance in case of medical officers of the company.