SUMMER INTERNSHIP REPORT

ON
UPPCL ZAO-(MM)
GPF- GENERAL PROVIDENT FUND
Submitted towards the partial fulfillment of
the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(FINANCE & CONTROL)
Batch: 2020-2022

INSTITUTE OF MANAGEMENT SCIENCES

University of Lucknow
(New Campus), Lucknow

Submitted To: Submitted by:

DR. NIMISHA KAPOOR KARTIK MEHTA

ASSOCIATE PROF. MBA (F&C)-III
IMS- LU Roll No.: 200012135034
Certificate
 DECLARATION

I, Kartik Mehta student of MBA (Finance and control) hereby declare that the

Summer Internship Report on “UPPCL ZAO-(MM) GPF- contributory Provident

Fund, 2004” is completed and submitted under the guidance of - Dr. Nimisha

Kapoor is my original work. The imperial finding in this plan is based on the data

collected by me.

KARTIK MEHTA

Roll No.: 200012135034

M.B.A. F& C

SEMESTER-III
 ACKNOWLEDGEMENT

I, hereby take the opportunity to express my profound sense of great reverence,

awe and gratitude to all of them who have helped me in the success completion of

this business plan.

I wish to express my sincere gratitude to Dr. Nimisha Kapoor, Institute of

Management Sciences, University of Lucknow, for her guidance and support

rendered to me in solving my problems and difficulties that I faced in completing

this task on such a varied and vast subject.

I will be failing in my duty, if I do not acknowledge my heartfelt thanks to Prof. Manoj

Agarwal (OSD, Institute of Management Sciences) and HOD Priya Ma’am for their

esteem guidance and support rendered to me.

Last but not the least I take this opportunity to express my heartfelt appreciation

for my colleagues for their support and encouragement.

KARTIK MEHTA

Roll No.: 200012135034

M.B.A. F& C

SEMESTER-III
 TABLE OF CONTENTS

Preface Pg no. - 06

Project Title Pg no. - 07

Introduction Pg no. – 08-19

Project Detail Pg no. -20-22

Review Of Literature Pg no. - 23

Objective & Research Methodology Pg no. - 24

Data Collection and Analysis, Limitation Pg no. - 25

Calculation of GPF & Suggestion Pg no. - 26

Forms, Reports and Initiatives Pg no. - 27-49

Finding, Recommendation & Suggestion Pg no. - 50-51

Conclusion Pg no. - 52-56

Bibliography Pg no. - 57
 PREFACE

MBA (Finance) program is one of the most reputed professional courses in the field

of management. This course includes both theory and its application contents of

curriculum.

Summer training is an integral part of the M.B.A. program, as each student is

required to undergo summer training from an institute of repute after 3rd

semester. As complimentary to that, every trainee has to prepare and submit a

report on the work conducts by the student during his/her Summer Training.

This report is in continuation of the above tradition. This summer training was done

at “UPPCL ZAO-(MM) GPF- General Provident Fund,”, Lucknow (U.P.). The topic of

the training was “GPF- General Provident Fund”.

During my training period, I did a comprehensive study of capital market under the

guidance of market professionals at UPPCL ZAO-(MM) GPF. This report is an

attempt to give an overview of capital market and investment in equities.

6
 TITLE

“UPPCL ZAO-(MM) GPF- contributory Provident Fund, 2004” is the subject of my

study regarding my Summer Internship Program. The study is all about calculating

and know the mechanics of GPF (UPPCL ZAO).

7
 INTRODUCTION

About UPPCL

UPPCL will be professionally managed utility supplying reliable and cost-efficient

electricity to every citizen of the state through highly motivated employees and

state of art technologies, providing an economic return to our owners and

maintaining leadership in the country.

UPPCL Mission

We shall achieve this being a dynamic, forward looking, reliable, safe and

trustworthy organization, sensitive to our customers interests, profitable and

sustainable in the long run, providing uninterrupted supply of quality power, with

transparency and integrity in operation, providing

8
UPPCL will be professionally managed utility supplying reliable and cost-efficient

electricity to every citizen of the state through highly motivated employees and state

of art technologies, providing an economic return to our owners and maintaining

leadership in the country.

We shall achieve this being a dynamic, forward looking, reliable, safe and

trustworthy organization, sensitive to our customers interests, profitable and

sustainable in the long run, providing uninterrupted supply of quality power, with

transparency and integrity in operation

TO OUR CONSUMERS:

High productivity reflected in a fair, equitable and cost-based tariff across consumer

categories, accurate and timely billing on a rational, comprehensible billing basis

reflecting actual consumption, and convenient system for payment of dues. Simple

9
and well-advertised procedures, guaranteed connection of requested load within

reasonable time, prompt breakdown attendance, and efficient complaint handling.

Timely actions based on anticipation of the future & perspective planning, and clear

communication on customer issues.

TO OUR SHAREHOLDERS:

A secure and well managed asset, corporate governance in line with Kumar

Mangalam Birla Committee recommendations, a business growing organically and

through diversification, and satisfied stakeholders.

TO OUR EMPLOYEES:

Opportunities for career growth and development, pride in the organization, and a

sense of belongingness, with the ability to contribute to the organization. Well

defined service conditions and full compliance with labour laws. Accountability and

10
responsibility for actions including performance incentives based on fair and

transparent assessment and compensation in line with the best in the industry, and

an increased sense of security based on the increased success of the organization.

TO THE REGULATOR:

The equitable satisfaction of all stakeholders, ensuring the long-term stability of the

section and an adherence to regulations and guidelines issued by the regulator,

including inter alias compliance with license conditions, furnishing accurate and

timely information, ensuring techno-economic feasibility of investments, and an

effective consumer grievance redressed system.

TO OUR FINANCIAL INSTITUTIONS:

Sustained growth and profitability, sound economic appraisal of projects to be

undertaken, security of loan and timely servicing of debts, and timely publication of

audited financial statements, including sound accounting & financial practice in

accordance with law.

11
TO THE STATE GOVERNMENT:

Implementation of reform legislation and of all government policies and directives

as far as is practical, applying public funding and subsidies to the intended category

of consumers. Compliance with the rule of law and electrical safety rules. The

satisfaction of stakeholders.

In return government will assist us by ensuring law and order and enforcement and

assistance with revenue realization.

TO OUR SUPPLIERS:

Transparent and efficient procedures for tendering and timely ordering and

settlement in adherence with commercial agreements.

TO OTHER UTILITIES:

Reliable and secure system operations in accordance with grid code, 0.2 class

metering, and timely readings, an Integrated Information system to provide fast and

accurate interface data, timely settlement observing proper commercial

12
agreements between entities, and adherence to system operating procedures in

terms of merit order dispatch, security, etc.

TO THE PUBLIC

Effective communication of policies and procedures, a Reliable supply to essential

public services, enforcing adequate safety norms and environmental and social

norms, minimizing inconvenience dare to disruptions etc.

• We shall be a diversified business with a core function of providing quality,

uninterrupted power, Commercial focus considering all techno-economic

issues of investments, and a high level of Consumer Service with new

connections on demand and low complaint resolution times.

• Diversifications shall include optic fiber-based activities, consultancy,

manufacture, and repairs, and we shall have a Diversified investment

portfolio around the globe.

• We shall satisfy all stakeholders including the regulator.

• We shall be a global industry Leader working in close cooperation with other

utilities supporting self-sustained growth through financially viable business

13
 units and technological leadership, providing a world class cost of supply,

and world class profits, doubling turnover every 5 years.

• We shall function independently; implementing prudent safety and

environment norms, with a cost of supply-based tariff, without external

interference, in a transparent corruption free operating environment, in

compliance with statutory requirements.

• We shall add value to our shareholders, safeguard the environment, and

maintain our asset base.

• We shall maintain a strong image with the general public.

• We shall measure success on global standards, e.g.

14
Parameter Measurement

Reliability of supply 99.50%

Technical losses 10%

Commercial losses 2%

Collection efficiency 97%

Billing efficiency 100%

Employee cost 25 p/u

• We shall have a Long-term dynamic vision based on strong perspective

planning.

15
• We shall have sophisticated procedures including online billing, online

queries and e-Business functions.

• We shall have the most motivated, Satisfied and best-trained employees

with full competence in all key areas optimally deployed and the most

satisfied customers in the sector.

• Our Supply quality shall be: 2% variation in voltage and 0.5 Hz variation in

frequency, with Fault repairs in 1 to 2 hours and redressal of 100% and

new connections will be made on demand.

The goal of the Uttar Pradesh Power Sector Reform programme is to:

• Provide cost efficient good quality electricity to all categories of consumers

for economic development/social uplift of the State.

• Make the energy sector commercially viable so that it ceases to be burden

on the state budget; and

• Protect the investment of the consumers.

Keeping in view the above-mentioned goals, the Government of Uttar Pradesh

has agreed on the following key aspects of the Power Sector Reform

Programme:

16
 • Restricting of Uttar Pradesh State Electricity Board (UPSEB) into

autonomous and separately accountable entities.

• Creation of an Independent Regulatory Body to protect consumers as

well as long term financial health of the Power Sector.

• Ultimate transfer of ownership of the assets to public corporate entities

over a phased time schedule.

• Rationalization of tariff.

Reforms-Phase I (Corporation): With the increasing volume of activities and

specialisation in the field of Generation, Transmission and Distribution and with a

view to improve the performance of these sectors, it has become essential to run

them as separate profit centres. These profit centres would subsequently be

corporatized by establishing following entities:

• Thermal Generation Corporation;

• Hydro Generation Corporation.

• Transmission and Distribution Corporation

• Managing the General Provident Fund, Gratuity Fund and Pension Fund of

the Employees working in or retired from Power Sector

Corporations/Companies of U.P.

17
 This trust deed of UPSPSET was executed on 29th April, 2000 by Uttar Pradesh

Power Corporation Limited (hereinafter referred to as “UPPCL”) having its

registered office at Shakti Bhawan, 14 Ashok Marg, Lucknow through its

Chairman cum Managing Director, Shri Harish Chandra Gupta, Uttar Pradesh

Rajya Vidyut Utpadan Nigam Limited (Hereinafter Referred to as “UPRVUNL”

having its registered office at 4-B, Gokhle Marg, Lucknow through its Chairman

cum Managing Director, Shri Ranvir Singh and Uttar Pradesh Jal Vidyut Nigam

Limited (Hereinafter Referred to as “UPJVNL” having its registered office at 12th

floor, Vikas Deep. 22- Station Rode Lucknow through its Chairman cum Managing

Director, Shri Sheo Narain Agarwal, all companies with limited liability

incorporated under the Companies Act, 1956 (Hereinafter Referred to as the

“Corporations”)

Whereas it is considered necessary to have a General Provident Fund,

Gratuity Fund and Pension Fund for the benefit to the employees, namely all

persons who were working with Uttar Pradesh State Electricity Board (Hereinafter

“UPSEB”) and who stand transferred to the Corporations on January 14, 2000 in

terms of the Uttar Pradesh Electricity Reforms Transferred Scheme, 2000 and

also who are the existing pensioners and beneficiaries of terminal benefit from

18
UPSEB as on January 14, 2000 (Hereinafter Referred to as ‘Employees’), but

excluding persons appointed on deputation in erstwhile UPSEB.

19
ORGANIZATION CHART

20
 UPPCL ZAO (ZONAL ACCOUNT OFFICE) MAHANAGAR, LUCKNOW.

Uttar Pradesh Power Corporation Limited (UPPCL) is the company responsible for

electricity transmission and distribution within the than state of Uttar Pradesh.] The

incumbent chairman is Uttar Pradesh Power Corporation Limited (UPPCL)

Type Uttar Pradesh State Government Undertaking Industry Electric Power

Predecessor UPSEB rounded 1999 Headquarters Lucknow Area served UTTAR

PRADESH Key people Shrikant Sharma Revenue 1NR 434811387285 (2017) Number

of employees 34738 Power Procurement

UPPCL procures power from state government owned power generators (Uttar

Pradesh Rajya Vidyut Utpadan Nigam & Uttar Pradesh Jal Vidyut Nigam Limited),

central government owned power generators (NTPC Limited & THDC Ltd) and

independent power producers -1PP (mostly private power companies) through

power purchase agreement for lowest per unit cost of electricity.

21
Financial Condition & Line losses

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citations to reliable sources. Unsourced material may be challenged and removed.

(June 2019) (Learn how and when to remove this template message)

The total loss of the UPPCL for the year ended on 31 March 2017 is estimated to be

8,825 crores. Thus, UPPCL is finding it hard to make payment to state, central and

other private power companies against electricity procurement.

The causes of such poor financial conditions include:

❖ Higher line losses due to aging over stressed infrastructure.

❖ Pilferage of power at large scale. Inferior quality of transformers and other

equipment’s.

❖ Widespread corruption.

❖ Inefficient use of IT enabled infrastructure for administrative as well as

technical purpose.

22
 REVIEW OF LITERATURE

Contribution provident fund, rules 2004. GPF is a compulsory retirement

saving option that is available to salaried people in the organized sector. The

contributions are made by both employer and the employee. The interest rate on

GPF is 8.5% for financial year 2020-2021 the government is yet to declare the rate

for financial year 2020-2021. The contribution made by an employee shall not be

less than 16% of emolument and not more than his emoluments.

Advances shall not exceed the amount of 3months pay or half the amount of

subscription and interest thereon standing to the credit of the subscribe in the fund.

The advances are repayable in 12, 24, 36 installments as approved.

Withdrawal shall be mind after 15year of service or within 10 years before the date

of retirement on super annotation, whichever is earlier.

23
 OBJECTIVES

❖ To know GPF calculation.

❖ To enhance knowledge on GPF.

❖ To get to know form and other legal compliances of GPF.

❖ To know employee preference on CPF or GPF.

METHODOLOGY

This research is exploratory and where, I have explored the working on GPF.

Explanatory as to how the organization work on the fund and various legal

compliance related to GPF.

24
 DATA COLLECTION & ANALYSIS

During my tenure of internship, the existing data collected and worked upon the

secondary, collected from the official records. The type data collected is qualitative

and quantitative. Sources are internal company records, government publication,

reports & publication, reports.

Collection and release of secondary data seems tough sometimes because of their

insecurities of privacy breaching. But for the purpose of study, I collected as much

as possible.

LIMITATION

The size of sample is limited to 50.

The data collected is from of the official records —secondary type.

The data gives the actual scenario of the report as it’s officially released.

25
 FINDINGS & CALCULATION OF GPF

After the study, it came into light that: -

People prefer GPF as after the retirement.

Employee will be getting a fixed amount pension to meet their daily expenses.

CONCLUSION AND SUGGESTION

The working of GPF is clear though GPF has replaced GPF (General Provident Fund)

but employee prefer to GPF.

SUGGESTION: Fully digitalize the working of GPF.

Quickly process the amount to be received on retirement or death.

26
OPERATION SYSTEMO GPF AT UPPCL

27
28
Reports Master
After Login as EMPLOYEE Report Master will be look like this:.

29
After Login as Unit Report Master will be look like this

After Login as Zone Report Master will be look like this

30
 2. GPF Funds Release Advice

Image: GPF Funds Release Advice

• First login after clicking on No. – 2 as displayed on home page.

• By Default User Type UNIT will be selected.

31
Image: GPF Funds Release Advice Report

3. Pension Funds Released Advice

32
Image: Pension Funds Released Advice

GPF Final Payment Authority

Image: GPF Final Payment Authority

Image: GPF Final Payment Authority Report

Sr. O.M. Number Subject Issued By Date

No
.

1 1148/15/uppst/E-voting Regarding GPF Chairman 13-11-

Trust Employee (Trust) 2020
Trustee Vigyapti

33
2 int. rate/trust Intt. Rate for Secretary 08-08-
G.P.F./C.P.F. from (Trust) 2019
Apr 2016 to Sept
2019

3 393/Trust Regarding dues Secretary 29-04-

of GPF/PENSION (Trust) 2019
AND GPF OF FY
2017-2018

4 Status pending Status pending -

Pension,GPF and GPF Pension,GPF and
A/C GPF A/C

5 int.rate/trust Intt. Rate for - 05-01-

G.P.F./C.P.F. from 2019
Apr 2016 to
March 2019

6 7/2018/g2-05 Intt. Rate for Finance 29-10-

G.P.F./C.P.F. from Deptt. U.P. 2018
Oct to Dec for Govt.
F.Y. 2018-19

7 949/trust/gpf Regarding Secretary(tru 20-09-

verification of st) 2018
payment by trust
against receive
demand from
2009-201 to
2017-18

34
8 int. rate/trust Intt. Rate for - 21-07-
G.P.F./C.P.F. from 2018
Apr 2016 to
September 2018

9 3/2018/g-2-80/10- Intt. Rate for Finance 27-04-

2018-59/81 G.P.F./C.P.F. from Deptt. U.P. 2018
Apr to Jun for F.Y. Govt.
2018-19

10 1/2018/g-2 Intt. Rate for Finance 19-01-

G.P.F./C.P.F. from Deptt. U.P. 2018
Jan to Mar for Govt.
F.Y. 2017-18

11 1061-kavini ve pra- Regarding salary Director 19-09-

29/PCL/ fixation of 7th (PM&A) 2017
Pay and
remittance
payment process

12 9/2017/g-2-222 Intt. Rate for Finance 15/09/20

G.P.F./C.P.F. from Deptt. U.P. 17
July to Sep for Govt.
F.Y. 2017-18

13 4/2017/g-2-107 Intt. Rate for Finance 28-04-

G.P.F./C.P.F. from Deptt. U.P. 2017
APRIL to JUNE for Govt.
F.Y. 2017-18

35
14 331/Trust/M0A0 In relation with Secretary 23/02/20
providing details (Trust) 17
of
GPF/Pensionary
Contribution of
Financial Year
2015-16

15 1556/Trust/G.P.F. Applicable Secretary 06-10-

Interest Rate on (Trust) 2016
G.P.F/C.P.F.

16 2/2016/G-2-99/10- Intt. Rate for Finance 29-06-

2016-59/81 G.P.F./C.P.F. for Deptt. U.P. 2016
F.Y. 2016-17 Govt.

17 180, 181/Trust/ Yearly statement Secretary 27-01-

Monthly Account of due and paid (Trust) 2015
amount of
monthly
Contribution of
G.P.F., Pension &
Gratuity head.

18 2/G-2-62/10/2014- Intt. Rate for Finance 24-06-

59/81 G.P.F / C.P.F. for Deptt. U.P. 2014
F.Y. 2014-15 Govt.

19 G-2-162/10/2013-59/81 Intt. Rate for Finance 23-07-

G.P.F / C.P.F. for Deptt. U.P. 2013
F.Y. 2013-14 Govt.

36
20 G-2-347/10/2012-59/81 Intt. Rate for Finance 30-10-
G.P.F / C.P.F. for Deptt. U.P. 2012
F.Y. 2012-13 Govt.

21 2623/Trust/G.P.F./Intt./ Regarding Chairman 27-08-

2010 Payment of Intt. UPPCL & 2010
on D.L.I./Wage Trust
Board Revision /
D.A. Arrear from
back dates.

22 3304/Trust/G.P.F. Regarding Secretary 20-09-

Payment of Intt. (Trust) 2004
on Contributions
/ Arrear drawn
within six month
from the date of
retirement &
after retirement.

23 699/PCL/CA-AS/1 Regarding D.G.M. 13-11-

Accounting Accounts 2003
instructions of UPPCL
G.P.F./Pension/C.
P.F. Monthly
Account

37
38
39
40
GPF REPORT

41
I. BACKGROUND

1. UPPCL is wholly owned by the Government of Uttar Pradesh and is

the company responsible for electricity transmission and distribution
within the Indian state of Uttar Pradesh. UPPCL will serve as the
executing agency (EA) for the proposed project. Four wholly-owned
subsidiaries of UP will serve as the implementing agencies (IA) – these
are:

❖ Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL)

❖ Madhyanchal Vidyut Vitran Nigam Limited (MVVNL)
❖ Paschimanchal Vidyut Vitran Nigam Limited (PVVNL)
❖ Purvanchal Vidyut Vitran Nigam Limited (PUVVNL)

2. While the members of the Boards of Directors of UPPCL, DVVNL,

MVVNL, PVVNL and PUVVNL are identified as PEPs1 due to the nature
of their position in SOE

3. The following adverse news were noted on some past members of

UPPCL’s Board ofDirectors, for their alleged roles in the Uttar Pradesh
Power Sector Provident Fund Scam

42
4. The Uttar Pradesh State Power Sector Employees Trust (also referred
to as the “UPSPSET”) is a trust formed by UPPCL, Uttar Pradesh Rajya
Vidyut Utpadan Nigam Limited (UPRVUNL) and Uttar Pradesh Jal
Vidyut Nigam Limited (UPJVNL) in the year2000.

5. The UPSPSET manages the general provident fund, pension fund and
gratuity fund (collectively referred to as Employee Provident Fund
(EPF) of all employees andformer employees (who get a pension) of
the former Uttar Pradesh State Electricity Board (UPSEB). These
employees had previously transferred to various corporations
following the restructuring of the power sector of UP.

6. The trustees of UPSPSET are composed of around eleven individuals

representing the employer corporations as wellas beneficiaries.

7. The UPSPSET manages both the General Provident Fund (GPF) and
the CPF (Contributory Provident Fund) of the companies. The details
of the two funds are enumerated below:

a. The GPF consists of contributions made by the employees of

the erstwhile Uttar Pradesh State Electricity Board (UPSEB),
which was the precursor to theUPPCL, UPRVUNL and UPJVNL
before its reorganization on 14 January 2000 and since then

43
 either retired or transferred to successor entities of UPSEB

b. The GPF fund manages the Contributory Provident Fund

contributions made by the employees of UPPCL and its
subsidiaries, UPRVUNL and UPJVNL, who have joined the
successor entities of UPSEB on or after 14 January 2000

8. In November 2019, news broke out that between March 2017 to

December 2018 around Rs 2,600 crore (approximately USD 360
million) from the provident funds managed by UPSPSET had been
invested in Dewan Housing Finance Corporation Limited (DHFL), a
controversial private company with alleged links to criminal elements.
DHFL is currently undergoing liquidation and people connected to it
are suspected of money laundering.

9. The economic offences wing (EOW) of the UP Police was initially

investigating, but from 20 February 2020 the Central Bureau of
Investigation (CBI) under the central government has taken over the
investigation. As per news reports, soon after taking over the
investigation, CBI filed a first information report (FIR) against some of
the Trustees for cheating, breach of trust, using forged documents,
etc. The investigation into the alleged scam is still ongoing with
officials from the state government admitting that the Trust had
decided on its own to invest funds in DHFL without following the
generally accepted norms.

44
10. After the discovery of the scam, Government of Uttar Pradesh has
directed UPPCL to meet all the financial commitments relating to
provident fund of its employees. Government of Uttar Pradesh has
also assured UPPCL of its financial support (in the form of a loan,
probably without any interest cost) to UPPCL in this regard in case of
any shortfall.

11. It has also been brought to the attention of the UPPCL management
that both the GPF and the GPF funds do not have the required
exemption (for operating their own trust funds) from Employees
Provident Fund Organization (EPFO), the apex organization for the
Employees Provident Fund in the country. UPPCL has however
advised ADB that the need for such an exemption is yet to be
confirmed and that a committee of Directors of UPPCL has been
formed to consider the issue of exemption and take the necessary
action.

45
INITIATIVES BEING TAKEN BY UPPCL TO IMPROVE
UPSPSET’S INVESTMENT PROCESS.

46
(1) ADB, during its Mission to UPPCL, Lucknow, (12 March 2020 and 13
March 2020) met with senior officials of and enquired about the
actions being taken by UPPCL towardsensuring that investments of
the Provident Fund amounts are carried out in a proper manner.

a. UPPCL explained that a review of the incident had

revealed a few lapses in the management of UPSPSET
including:

b. delegation of powers to make investments of funds

from the GPF and GPF to the Secretary of UPSPSET
without adequate oversight from March 2017 to
September 2019 and

(2) non adherence to the guidelines for investment of provident fund

contributions issued by the Ministry of Labour, Government of
India.

(3) absence of regular meetings of the Trustees of UPSPSET

(4) absence of properly constituted investment committee and

investment guidelines. UPPCL has initiated several actions in the
management of UPSPSET to ensure suchinstances are prevented in
future.

47
(5) UPPCL’s new initiatives to improve UPSPSET’s investment decision
making processare given below:

(6) Elections are being held to ensure proper nomination of employee

representatives on the Board of Trustees and investment
committee (the voterlists for both the funds are currently under
finalization)

(7) Investment Committees have been constituted for both the funds
with representatives of both UPPCL management and the
employee’s representatives

(8) Strict compliance of investment norms issued by Government of

India is beingensured in making investments of the funds

(9) Provision of online information (balances, advances, etc.) to

members of the funds is proposed to be implemented at the
earliest

(10) A Committee of Directors of UPPCL has also been constituted to

the evaluate the need for approaching the Employees Provident
Fund Organization (EPFO)of the Government of India for exemption
of the UPSPSET.

48
(11) UPPCL expects that with this new initiatives UPSPSET’s investment
process would be streamlined in accordance with the guidelines
issued by Government of India.

49
 FINDINGS

In the period on my summer training in UPPCl Mahanager, Lucknow I

found the following major observation regarding General provident fund
2004,

1. That the official or incumbent persons are not aware the complete

knowledge of contributory Provident Fund Rules 2004.

2. They all are depend on the knowledge of previous forms already filled

by the senior personnel

3. I make a minor audit personally just to know about whole process of

GPF and found the organization has full guidelines but not shared with the

juniors.

50
 RECOMMONDATION & SUGGESTIONS

In UPPCL Mahanagar, all data are manual this is sugusseted that digitization of
all data processing may take less time and more efficiency in work.

➢ Online processing of GPF calculation and Salary Preparation anw error

less work and cane use maximum manpower utilization in other works.

➢ I time to time training program regarding knowledge of new amendments

working performance may conduct for betterment of work process

51
CONCLUSION

52
It is revealed that the UPPCL never approached the EPFO for the mandatory

permission to create the private PF Trust and seek exemptions from depositing

its employees’ PF in the EPFO. This is the reason why the UPPCL does not find a

mention in the EPFO’s list containing the names of ‘exempted establishments.

“The UPPCL employees’ PF Trust is totally illegal,” disclosed the senior EPFO

official in Lucknow.

“We have already initiated legal action against the Madhyanchal Vidyut Vitaran

Niagam Ltd (MVVNL) that comes under our jurisdiction for not handing over the

employees’ contributory provident fund to us and depositing the same in a so-

called Trust,” he added.

The UPPCL Trust is common to all the energy corporations, including the MVVNL

and they deposit their employees’ GPF in this trust only, rather than invest in

the EPFO. The MVVNL, according to the official, had moved the high court more

than a year ago, quoting some rules that, according to the company, permitted

it to set up the Trust without seeking the mandatory exemptions from the EPFO.

The high court, however, directed MVVNL to appear before the competent

EPFO authority to explain their case.

53
“They did appear before but failed to show the so-called rules that permit them

to sit on their employees’ GPF without EPFO’s nod,” the official said, adding,

“MVVNL has gone to the EPF Appellate Tribunal but is not able to establish its

case so far.”

The government/ EPFO grants exemptions when it satisfies itself that a PF

scheme proposed by an establishment is, in no way, less ruminative than the PF

benefits provided under the government’s PF rules.

The UPPCL, known as UP State Electricity Board (UPSEB) before the latter was

unbundled into three independent corporations, the UPPCL being one of them,

as distribution entity, in January 2000, is covered under the EPF & MP Act, 1952

the provisions of which has fixed employees provident fund contribution at 12%

plus DA with equal share of the employer (UPPCL).

“Exemptions from these provisions can be granted by the appropriate

government only under Section 17 of the same Act upon submission of an

alternative PF scheme, the provisions of which are no less favourable than those

specified under section 6 and the overall PF benefits that, on the whole, are no

less attractive than the benefits under the EPF and MP Act, 1952,” said sources.

“But exemptions were apparently never sought,” they said.

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The provisions of the General Provident Fund (UP) Rules, 1985, had been made

applicable to the employees of then UPSEB and to the UPPCL, UPPTCL and the

UPRVUNL, three distribution, transmission and generation corporations,

respectively, constituted under UP Electricity Reforms Act, 1999.

“In view of the provisions of Rule 2 (f) of the GPF (UP) Rules, 1985 that defines

an ‘undertaking’ to mean a statutory body incorporated by or under UP Act and

also in view of adoption of the said GPF Rules, 1985 by the erstwhile UPSEB for

its employees, it is the provisions of the GPF (UP) Rules, 1985 that are applicable

to the UPPCL and other energy corporations’ employees,” the sources said.

The UPPCL framed the rules known as UP Power Corporation Ltd Contributory

Provident Fund Trust Rules in 2004, two years prior to the setting up of the Trust

in 2006.

“The said rules were never placed before the EPFO for mandatory exemptions

and are totally ultra vires of the EPF and MP Act, 1952 have no legal sanctity,”

sources said.

The UPPCL GPF Trust Rules, 2004, they said, violated the Act also in the sense

that they provided PF benefits that were less favourable than ones provided

under the EPF provisions. Dozen other UP govt firms have sought exemption

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There are around a dozen UP government’ corporations that operate and

maintain employees’ contributory fund Trusts like the one that the UPPCL

established in 2006.

However, unlike the UPPCL all other corporations that have such a Trust have

sought mandatory exemptions from the EPFO for managing and investing staff’s

PF on their own and hence are listed in the category of ‘exempted

establishments’ on the EPFO’s website.

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 REFRENCES

BIBLIOGRAPHY

1. https://www.upenergy.in/

2. http://www.uppst.org/GPF.html

3. https://pensionersportal.gov.in/pension/rules_new/GPF_Rules_1962

_24122013.pdf

• RESEARCH METHODOLOGY - C.R. KOTHARI

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