Key Points

The Yogi Adityanath cabinet has established the UP Outsource Service Corporation to bring transparency to outsourcing services. This new system guarantees timely salary payments and social security benefits for outsourced employees. The government also approved electric bus operations in Lucknow and Kanpur under a new contract model. Additionally, a new export policy aims to position Uttar Pradesh as a global export hub by 2030.

Key Points: Yogi Cabinet Approves UP Outsource Corporation Electric Bus Plan

  • New corporation ensures direct salary transfers with EPF/ESI benefits
  • Outsourced employees get Rs 16,000-20,000 monthly honorarium for 3 years
  • Electric buses to operate on 10 routes each in Lucknow and Kanpur
  • Export Policy 2025-30 aims to increase registered exporters by 50%
5 min read

UP Cabinet approves Outsource Service Corporation, electric bus plan, new export policy, university

Yogi Adityanath's cabinet approves UP Outsource Service Corporation for transparent hiring, electric bus expansion in Lucknow-Kanpur, and new export policy to boost state economy.

"This step will eliminate irregularities and guarantee every employee their rightful dues - Suresh Khanna"

Lucknow, September 2

In a move to make outsourcing services more transparent, accountable, and employee-friendly, the Yogi government has approved the formation of the Uttar Pradesh Outsource Service Corporation Limited.

According to a release, the decision was taken in a Cabinet meeting chaired by Chief Minister Yogi Adityanath, where 15 proposals were cleared, including this major step to safeguard the interests of outsourcing workers.

The corporation, established under Section-8 of the Companies Act, 2013, will function as a non-profit public limited company. From now on, outsourcing agencies will no longer be selected directly by departments; instead, the corporation will empanel agencies through a fair and transparent process via the GeM portal.

Under the new system, outsourced employees will be appointed for three years, with an honorarium of Rs 16,000 to Rs 20,000 per month. Salaries will be transferred directly to employees' bank accounts between the 1st and 5th of every month, along with EPF and ESI contributions, ensuring financial security. In case of irregularities, services can be terminated immediately.

Finance and Parliamentary Affairs Minister Suresh Khanna stated that the corporation was necessary because agencies had previously failed to provide workers with their full honorarium and often neglected mandatory EPF and ESI contributions. "This step will eliminate irregularities and guarantee every employee their rightful dues," he said.

The new framework also provides social security and reservation benefits. SC, ST, OBC, EWS, Divyangjan, ex-servicemen, and women will receive reservation as per constitutional provisions. Women employees will be entitled to maternity leave, while all workers will receive periodic training to enhance skills. Additionally, Rs 15,000 will be provided as funeral assistance in case of death during service.

The new system introduces several key features aimed at ensuring transparency and employee welfare. Agency selection will be carried out through the GeM portal, while employees will receive a monthly honorarium ranging from Rs 16,000 to Rs 20,000. Services will be provided for 26 days each month under a three-year term.

Salaries, along with EPF and ESI contributions, will be transferred directly to employees' accounts. To maintain quality in recruitment, written tests and interviews will be conducted. Additionally, employees will be entitled to social security benefits, including maternity leave and funeral assistance.

With this reform, the Yogi government aims to not only strengthen transparency in outsourcing, but also set a new model of employment and good governance in Uttar Pradesh.

In a major step towards modernising urban transport, the Yogi government has approved the operation of electric buses on the Net Cost Contract (NCC) model in Lucknow district, Kanpur city, and adjoining towns.

Urban Development Minister A.K. Sharma informed that, at present, 743 e-buses are operating across 15 municipal corporations in the state, of which 700 run on the Gross Cost Contract (GCC) model. Under the new scheme, 9-meter-long AC e-buses will ply on 10 routes each in Lucknow and Kanpur, with a minimum of 10 buses on every route. The contract will remain valid for 12 years from the date of commercial operation.

Each route is expected to cost around Rs 10.30 crore, including Rs 9.50 crore for bus procurement and Rs 0.80 crore for charging and allied infrastructure. Private operators will be responsible for the design, financing, procurement, manufacturing, supply, and maintenance of buses. They must supply prototype buses within 90 days and commence operations within a year.

According to the model, fare and non-fare revenue will be collected by private operators, while tariffs will be set and revised by the government. The state will facilitate operations by providing licenses, permits, behind-the-meter electrical infrastructure, and charging facilities.

The government expects the NCC model to reduce financial burden on the exchequer while improving the quality and reliability of urban transport services in the state's key cities.

Aiming to make Uttar Pradesh a global export hub, the Yogi Cabinet has approved the Export Promotion Policy 2025-30, an upgraded version of the 2020-25 policy. The new policy places strong emphasis on digital technology, infrastructure development, financial assistance, export credit and insurance, market expansion, as well as training and capacity building.

Its key target is to increase the number of registered exporters by 50% by 2030 while ensuring regional balance by linking all districts with export activities. The government expects the policy to not only boost the quality and volume of exports but also strengthen Uttar Pradesh's position as a major global export hub.

The Yogi Cabinet has approved the proposal to establish Swami Shukdevanand University in Shahjahanpur by upgrading the academic units of the Mumuksh Ashram Trust. Currently, five institutions operate under the trust, Swami Shukdevanand College, Swami Shukdevanand Law College, Shri Daivik Sampad Brahmacharya Sanskrit Mahavidyalaya, Shri Dharmanand Saraswati Inter College, and Shri Shankar Mumuksh Vidyapeeth. Once established, the university will oversee their functioning.

According to the District Magistrate's report, the trust owns 21.01 acres of land, of which about 20 acres will be allocated to the university. In the first phase, an MoU will be signed between the Higher Education Department and the Mumuksh Ashram Trust, after which formal proceedings will be carried out under the Uttar Pradesh State University Act, 1973.

- ANI

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Reader Comments

R
Rohit P
Electric buses in Lucknow and Kanpur is a smart move. Our cities need cleaner public transport. Hope they maintain these buses properly unlike the regular ones which are often breaking down.
A
Arjun K
The export policy upgrade shows vision. UP has so much manufacturing potential - from textiles to electronics. If implemented properly, this could create lakhs of jobs. Fingers crossed! 🤞
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Sarah B
While the outsourcing corporation sounds good on paper, I hope they actually implement the transparency measures. Government projects often start with great intentions but get stuck in bureaucracy. The proof will be in the execution.
V
Vikram M
Rs 16,000-20,000 honorarium is still quite low for skilled workers, especially in cities. Hope they review this periodically considering inflation. But the social security benefits are definitely a step forward.
K
Kavya N
Maternity leave for women employees in outsourcing jobs is a welcome provision! Many working women struggle with job security during pregnancy. This policy recognizes their needs 👍
M
Michael C
The new university in Shahjahanpur will help higher education reach tier-2 cities. More educational institutions mean better opportunities for students who can't afford to move to big cities for studies.

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