Deputation from PSU to private

If the employer has a stake in any other company, it can send its employees on forcerd deputation to run the company till the company recruits its own staff. MTNL and BSNL are the living examples, where 100% staff was put on deemed deputation on conversion of parts of the Department of Telecom in to PSUs. However, the employees may place their demand for deputation and other deputation facilities/ concessions, as per the Central Government Rules.

Never heard of PSU sending persons to private employment.  But manning of private institution by public officials is at times there in the time of crisis. In that acase source of salary may not be changing. You have not referred to terms of employment.

This is the fact and the permanent employees of Air India commercial department are now in working for AISATS where Air India has a minority stake of 50%. The employees are allowed to draw 10% of basic pay as deputation allowance over and above their original salary.

why 10% entitlement may be 5% under Govt norms. PSU appears to be liberal

Mr. Sudhir Kumar,

You may probably need to review and find out difference between deputation at same station and deputation out of station for the purpose of deputation (duty) allowance.