Green Field Project - Various Allowances / Incentives - Suggestions Sought - CiteHR
Kadali Ra0
Legal, Hrm, Rti
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms

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Dear Friends,
A Navratna Govt of India Enterprise is proposing to establish a Steel Plant 3.0 mtpa. This is a Green Field Project at a remote / far flung area, about 20 kms away from a District Headquarter (a remote area) in Chhattisgarh State with 10% HRA only as per GOI's guidelines. But Employees are almost spending further 10-15% to reside in a suitable rented house due to non-availability of adequate rented houses in the District Headquarters and non-construction of quarters by the Employer so far at the site itself.
Under the above situation, what types of Allowances / Incentives may be appropriate to motivate the employees?
I earnestly request the members to share their valuable suggestions with supporting copies if any available in any other Green Field Projects for reference.
Regards,
kadalirao
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Dear kadali ra0
You might find this disappointing, but since the project site is only "about 20 kms away from a District Headquarter", there is hardly any 'hardship' involved to qualify for getting 'hardship/project allowance".
The HRA allowed can be as applicable at that District Headquarter.
Special allowances are applicable to Greenfield projects in barren, inhospitable land in far flung areas like in the wilderness or high altitude areas (in case of hydel projects).
At best you can provide your employees, company transportation from several pick-up points from the District Headquarter to the Project site.
Warm regards.
Dear RK Hansdah,
Thank you very much for the information. Its not the Q of disappointing, but how to motivate the employees to voluntarily contribute their best efforts in an up-coming project like this where everything is required to be established unlike working in an established project.
Are there any specific conditions to provide compulsory company transport to employees viz. minimum distance etc. or any other facilities to be provided at site.
best regards
kadalirao

Dear friend kadali rao
There are NO "specific conditions to provide compulsory company transport to employees viz. minimum distance etc. or any other facilities to be provided at site."
It only depends on how BENEVOLENT and GOOD the management is.
However, since it is a "Navratna Govt of India Enterprise", definitely it should do so to set an exemplary standard of "concern and care for its people".
Do suggest this to your MD (CEO at the site) or Director (Personnel); with the fact that in lieu of any 'hardship allowance' this facility can be given to employees which ensure the following :
  1. savings on account of 'hardship allowance'
  2. ensuring more safety of employees while going to site (thus also saving on compensation payable in case of accidents while going to and coming from the workplace)
  3. ensuring punctuality in reporting duty
  4. ensuring more employee satisfaction and enhancing motivation
Hope this shall be approved at the earliest. Do not forget to let us know !
Warm regards.
Dear Mr. Hansdah,
Taking the safety of employees into consideration, free transportation is provided to ensure punctuality and thus to avoid loss of man hours. Trying to provide Canteen facility (not on subsidy basis) to all employees (230 nos. at present) which takes some time as it is a Corporate decision though Canteen Allowance is being paid to each worker @ ` 40/- per day physical attendance (for Officers All allowances under "Cafetaria Approach" is @ 47% of Basic Pay including 10% Conveyance Allowance whether owning the vehicle or not). All the above allowances are also available to established projects as well.
Now what extra allowances to be provided to employees in an up-coming project as they have to contribute more. Solicited some material for this from the members please for convincing and justification.
Best regards,
kadalirao

Dear kadalirao

Thanks for the information in your reply.

As I understand, you want to propose SOME MORE ALLOWANCES, although the existing allowances appear to be satisfactory.

Although one would always support the employees on the question of better pay packages, it is also a fact that the employees of Navratna companies are now getting good respectable salaries and fattening it further would be counter-productive - to the nation as well as the industry.

If you look around you will find that many PSU's including the Navratnas, are in a an expansion phase - whether it is NTPC, SAIL, Coal India, ONGC or Indian Oil. Many of these expansion not only involve capacity increase but also greenfield project. You may find out if they are paying out any additional enhancement in allowances.

Since, it would not be advisable to give project allowance; you may also examine and propose whether an INCENTIVE for TIMELY COMPLETION of the Project Stages/Milestones can be given. Such an incentive would not only be welcome by the employees; but it will also help the management in Timely Completion of Project and avoid costly Project Over-runs and Delays.

Warm regards.
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