A tale of two decisions

Mothballing the lateral-entry scheme and launching the modified pension plan show how governance style can make a difference

Early in its third consecutive term, the Narendra Modi government took two decisions pertaining to civil services, often described as India's steel frame. One was hurriedly withdrawn in the face of political opposition, while the other seemed to face no such pushback.

We are referring to the decision on lateral entry of 45 mid-level officers from the private sector into joint secretary/director/deputy secretary-level posts in the government, and the Union Cabinet's approval of a unified pension scheme (UPS), which, as an alternative to the national pension system (NPS), provides, among other things, a guaranteed pension equivalent to 50 per cent of the average monthly salary drawn in the last year of service.

The notice inviting applications for 45 posts under the lateral-entry scheme was posted on August 17, but it was withdrawn two days later after political opposition to the idea gained momentum both within and outside the government. It is likely that the government may frame a revised lateral-entry scheme incorporating provisions for reservations to address those political concerns. But nobody is sure when, if at all, a revised lateral-entry scheme will be launched.

In contrast, the decision on UPS has been welcomed by the Congress president and other senior party functionaries. Soon after the Cabinet's approval, Mr Modi met a delegation of the Joint Consultative Machinery for Central Government employees, whose leader welcomed the UPS decision for providing an assured pension and family pension for their members. National trade unions are yet to offer their unconditional support to the modified pension scheme, but this is not likely to be a hurdle in its rollout from April 2025.