UP Cabinet approves formation of Outsource Service Corporation, ensures transparency in outsourcing

The Uttar Pradesh government, under Chief Minister Yogi Adityanath, has approved the formation of the Uttar Pradesh Outsource Service Corporation Limited. The decision was taken during a cabinet meeting where 15 proposals were cleared. The corporation, to be established under Section 8 of the Companies Act, 2013, will function as a non-profitable public limited company.

With this move, government departments will no longer directly appoint outsourcing agencies. Instead, the corporation will select agencies through the GeM portal using a transparent process. Outsourced employees will be appointed for three years with a fixed honorarium between ₹16,000 and ₹20,000 per month. The government aims to ensure employees receive full pay, along with job security and welfare benefits.

Finance and Parliamentary Affairs Minister Suresh Khanna explained that the corporation was necessary as many outsourced workers were not receiving their full wages or benefits like EPF and ESI contributions. The new system will safeguard employee rights and eliminate irregularities.

The scheme also includes social security and reservation benefits. As per constitutional provisions, SC, ST, OBC, EWS, differently-abled persons, ex-servicemen, and women will get reservations. Women will be entitled to maternity leave, and regular training will be provided to enhance skills. In case of an employee’s death during service, ₹15,000 will be given as funeral assistance.

Alongside this, the cabinet approved 14 other proposals. Notably, Minister A.K. Sharma’s proposal for urban transport received approval, allowing private operators to run e-buses on 10 routes in Lucknow and Kanpur. Each bus, costing around ₹10 crore, will be contracted for 12 years. The government will retain fare control, issue licenses, and provide charging facilities.

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