Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises
Public Enterprises Bhavan
Block No. 14, CGO Complex
Lodhi Road New Delhi
Dated 26th March, 2010
Subject: Expenditure Management – Economy measures and Rationalization of Expenditure.
In consonance with economy instructions issued by Department of Expenditure vide O.M. No.7(1)E.Coord./2009 dated 7th September, 2009, this Department extended the appropriate economy measures applicable for Central Public Sector Enterprises (CPSEs) vide O.M. No. DPE/3(4)/2008-Fin dated 8.10.2009 through which, inter alia, following instructions regarding domestic and foreign travel were covered:-
(i) No travel on Government account by air will take place by First Class; and
(ii) All domestic travel on Government account by air will take place only by economy class, irrespective of the entitlement.
2. The matter has been reviewed by the Department of Expenditure and it has been decided vide O.M. No. 7(1)/E.Coord/2009 dated 23.3.2010 (copy enclosed) that w.e.f. 1st April, 2010 travel on Government account by air both domestic and International may take place by the entitled class. However, the austerity measures will remain in place for travel by air (where admissible) on LTC, which would continue to be restricted to economy class irrespective of the entitlement.
3. The partial withdrawal of austerity instructions vide O.M. referred above will also be applicable to CPSEs.
4. It is requested that the above relaxation may kindly be brought to the notice of Public Sector Enterprises under the administrative control of Ministries/Departments.