Lateral entry UPA-era idea and opposing it hypocrisy, says Centre

BJP ally Chirag slams plan; Cong accuses Centre of 'snatching reservations'

In response to criticism by the Congress and its allies on the issue of lateral entry, government sources on Monday said the initiative was influenced by the recommendations of the Second Administrative Reforms Commission (ARC), set up in 2005 during the Congress-led United Progressive Alliance (UPA) rule.

Opposition INDIA bloc on Monday accused the government of “snatching reservations” from the marginalised communities to induct people from the Rashtriya Swayamsevak Sangh (RSS) through lateral entry to fill upper echelons of civil services.

Sources in the government insisted that the lateral entry initiative, formally introduced in 2018 during the first term of Prime Minister Narendra Modi, was deeply influenced by the recommendations of the second ARC.

The Commission was headed by Congress’ M Veerappa Moily. In its 10th report — “Refurbishing of Personnel Administration: Scaling New Heights” — which was submitted in 2008, the Commission argued for reforms in personnel management within the civil services. The Moily-led Commission’s key recommendation, sources said, was to introduce lateral entry into higher government positions requiring specialised knowledge and skills.

In 2018, when the government opened the doors for lateral entry, it was the first occasion that professionals from private and public sectors were invited to apply for senior positions in the civil services, such as joint secretaries and directors.

The Union Public Service Commission (UPSC) on Saturday (August 17) notified recruiting 45 joint secretaries, directors and deputy secretaries through lateral entry — appointment of specialists, including those from the private sector, in government departments — which triggered a controversy.

On Sunday evening, Union Minister Ashwini Vaishnaw, in a post on X, termed Congress’ opposition to lateral entry as “hypocrisy”, pointing to the Moily-chaired Commission’s recommendations. He said the Commission “recommended recruitment of experts to fill the gaps in roles that require specialised knowledge”.

Vaishnaw said the National Democratic Alliance (NDA) government “has created a transparent method to implement this recommendation. The recruitment will be done through the UPSC in a transparent and fair manner. This reform will improve governance,” he said.

Congress president Mallikarjun Kharge said the UPA government had introduced lateral entry to appoint select specialists and experts in some sector-specific posts, but the Modi government is using it to “snatch the rights” of Dalits, tribals, backward castes and economically weaker sections to induct people form the RSS.

Communist Party of India (CPI)’s D Raja said the move was part of the BJP-RSS “design” to capture “all organs of the state”, and comes in the wake of the Centre lifting the ban on government employees from participating in RSS activities. Congress leader Rahul Gandhi said, “The BJP’s distorted version of Ram Rajya seeks to destroy the Constitution and snatch reservation from bahujans.”

Sources pointed out that the government has historically inducted outside talent into higher tiers of administration, typically in advisory roles but occasionally even in key administrative assignments. For instance, the Chief Economic Advisor is traditionally a lateral entrant who, according to the rules, must be below 45 years of age and is invariably an eminent economist. Additionally, several other distinguished individuals have been appointed at the highest levels as secretaries to the government, sources said.

They further said the Moily-led second ARC recommended that certain government roles require specialised knowledge, not always available within the traditional civil services. It recommended recruiting professionals from the private sector, academia, and public sector undertakings to fill these gaps.

The Commission proposed the creation of a talent pool of professionals who could be inducted into the government on a short-term or contractual basis, bringing fresh perspectives and cutting-edge expertise in areas such as economics, finance, technology, and public policy, the sources pointed out. The second ARC also stressed the need for a transparent and merit-based selection process for lateral entrants, suggesting the establishment of a dedicated agency to oversee their recruitment and management. It recommended a robust performance management system to hold lateral entrants accountable for their work and regularly assess their contributions.

The Commission underscored the importance of integrating lateral entrants into the existing civil services in a manner that maintains the integrity and ethos of the civil service while leveraging the specialized skills they bring.

The sources said the first ARC, established in 1966 under the chairmanship of Morarji Desai (later succeeded by K Hanumanthaiah), laid the groundwork for future discussions on the need for specialised skills within the civil services. While it did not specifically advocate for lateral entry as understood today, it emphasised professionalism, training, and personnel management reforms to ensure that the bureaucracy effectively met the challenges of a rapidly changing nation.

In addition to the ARCs, Congress MP Shashi Tharoor-led parliamentary standing committee on external affairs, in its reports in 2016 and 2017, recommended lateral entry to shore up the strength of the Indian Foreign Service (IFS).

The Surinder Nath Committee in 2003 and the PC Hota Committee in 2004 had recommended that civil servants be encouraged to move laterally to non-government organisations and even the private sector and return to government without losing their seniority, a process which will help them acquire new skills and knowledge.

Key ‘lateral’ entrants

Sam Pitroda, who played a pivotal role in India’s telecom revolution, and former Prime Minister Manmohan Singh, who joined as an economic advisor in 1971 in the erstwhile Ministry of Foreign Trade are part of a list of well-known 'lateral' entrants over the years, according to government sources. Economists Montek Singh Ahluwalia, Bimal Jalan, Kasuhik Basu, Arvind Virmani, and Raghuram Rajan are some of the others on the list. The list also mentions former head of the Unique Identification Authority of India (UIDAI) Nandan Nilekani and technocrat V Krishnamurthy, who served as the chairman of Bharat Heavy Electricals Limited (BHEL) and later Maruti Udyog. Krishnamurthy also served as the chairman of the National Manufacturing Competitiveness Council. 

FACT SHEET

—First ARC, set up in 1966, advocated personnel management reforms in bureaucracy

—In one of its reports, the second ARC, set up in 2005, recommended lateral entry

—Surinder Nath Committee (2003) and the PC Hota Committee (2004) recommended civil servants be encouraged to move laterally to NGOs and private sector

—In 2016, a parliamentary panel led by Shashi Tharoor recommended lateral entry in IFS