Saturday, September 29, 2012

AC rail travel and freight services fares are set to increase by 3.7% from October 1st

Finance ministry has decided to levy service tax on AC rail travel and freight services fares, which are set to increase by 3.7% from October 1.

Fares of AC first class, executive class, AC-2 tier, AC-3 tier, AC chair car will go up by 3.7% from October 1.The decision for levying service tax on AC classes and freight and auxiliary services was taken on Wednesday at a meeting between railway minister CP Joshi and finance minister P Chidambaram.

The service tax will apply to tickets issued in advance for journeys to commence on or after the date of its implementation. In case of tickets already issued excluding service tax, it will be ensured that the same is recovered either by TTEs in the train or by the booking offices before commencement of journey.

In case of cancellation of tickets by the passengers, service tax will not be refunded by railways, the official said.

On concessional tickets, service charges will be 30% of the total fare.

The service tax is 12.36% but after the abatement of 70% it will be 3.708% on passenger fares in AC classes and freight.

Passengers travelling in AC classes were brought under service tax from July this year as per the Finance Bill 2012 but the levy had since been kept in abeyance because of opposition by the TMC.

Order issued for 72% D.A. wef 01/07/2012.

Monday, September 24, 2012

AIPEU P3 CHQ News : General Secretary’s Desk

Dear Comrades,

One Day Strike on 12.12.12
The Confederation of Central Government Employees and Workers has professed a clarion call of one day token strike on 12.12.12 on 15 Charter of Demands. The gist of the demands is furnished in a nutshell below for the notice of all. All Branches and Divisional Secretaries are requested to translate the same in their Regional languages and organize the workers for 100% participation in the proposed strike.

Charter of Demands and short notes

1. Revision of wages w.e.f. 1.1.2011.
(i) In all the Public sectors and Banks, the wage review is being carried out once in 5 years.
(ii) The 5th CPC set the norms for the appointment of next pay commission that whenever DA crosses 50%, it shall be appointed. Based on the same principle, the next pay commission should have been appointed w.e.f 1.1.2011. The silence in the 6th CPC report about the formation of the next CPC cannot be taken as a ruse to deny or delay the next CPC.
(iii) The anomalies arisen after the 6th CPC due to the introduction of a grade pay system and the loss of significance in the existence of cadres, disparity in pay fixation between officers and Government servants etc. can be sorted out only in the next CPC.
(iv) The retail prices of essential commodities eroded the value of real wages by 160% within 5 years after 1.1.2006, whereas the DA compensation had been just 51%. Due to inflation, the real value of the wages has gone down.
(v) The 6th CPC while determining the minimum wage has suppressed the retail price in the market and just take 20% alone of the wholesale price whereas in the market it was more than 60% than the wholesale price. Thus the demand of the minimum wage has been defeated with that clever and cunning decision of 6th CPC.
(vi) Though the National Anomaly Committee met 5 to 6 times, it has not settled any major issue. The Anomalies existing in MACP are unredressed.
(vii) The Fourth CPC categorically stated that GDS ought to have been included within the preview of pay Commission. This has been denied resulting in more exploitation in their wages and service conditions.
The above are the justification for the demand seeking immediate appointment of Seventh CPC and revise the wages from 1.1.2011.

2. Merger of DA with Pay  
(i) The 5th CPC recommended that the DA must be merged with Pay and treated as Pay for computing all allowances when DA exceeds 50%. This was carried out before the appointment of 6th CPC.
(ii) The DA merger will partially compensate the erosion of real wages as per the report of Gadgil Committee in the post 2nd CPC period.
(iii) The 3rd CPC has also recommended such merger.
The merger of DA shall be considered in the case of GDS also in the Department of Posts.

3. Compassionate Appointments
(i) Supreme Court has not given any direction to introduce 5% ceiling in compassionate appointments.
(ii) Even though the Cabinet Secretary assured for reconsideration, no tangible action has been taken so far to delete the ceiling of 5%.
(iii) In Railways there is no such ceiling and this is very clear discrimination between the equals in the Government Service.
(iv) In Department of Post the selected lists under RRR were scrapped and thereafter only the candidates who pleaded their cases up to the Supreme Court were offered the appointment and remaining approved candidates are left in the lurch.

Therefore we are demanding the directions should be issued to do away with the stipulation and compassionate appointments be provided in all deserving cases.

4. Functioning of JCM
(i) The National Council is as per the scheme to meet at once in 4 months. It meets after several years. The issues put forth should be disposed in the same meeting or in the next meeting where as a number of issues are kept pending for indefinite periods.
(ii) Barring one or two items, most of the anomalies placed in the Anomaly Committee meeting have not been considered and settled.
(iii) In many Departments the Departmental Councils which are scheduled to be conducted once in four months have not been conducted years together.
Therefore, it is demanded that the periodicity of the National and Department Council meetings should be adhered and the forum should be ensured as an instrument to settle the demands of employees.

5. Remove the Ban on Recruitment and creation of Posts.
(i) The abolition of 2/3 vacancies which was in existence from 2001 to 2008 was applied only in the case of Group ‘C’ and Group ‘D’ and not even a single Group ‘B’ or Group ‘A’ was axed.
(ii) The workforce in Group ‘C’ and Group ‘D’ has been drastically axed to the extent of 20% during the last decade ending with 2010.
(iii) The blanket ban on creation of posts is in existence since 1983 and not even a single required post has been created without any matching Saving Scheme (example the case of System Administrators)
(iv) We had a time tested and scientific system of assessment of workload with periodical revisions. This become obsolete and not even a single required post is created so far.
(v) 6th CPC communicated that it is not desirable to continue the ban and recommended to empower the respective departments to create need based posts for its effective functioning. This has neither has been accepted nor rejected so far.

6. Downsizing, outsourcing and contractisation etc.
(i) Many Departments had resorted to outsourcing of the functions. Some Departments virtually closed down. For example in passport office the entire work of processing and issue of passport is outsourced to TATA. Similarly the issue of PAN card and related works have also been entrusted to TATA consultancy. The IT returns submitted through E-mail are now entirely being processed by Infosys. Most of the work in Railways had been outsourced and on a contract basis and the staff strength has been depleted.
(ii) In Postal, the Government desires to introduce PPP (Public private partnership) and providing a level playing field to the couriers by amending post office Act. The Monopoly of the Department of Posts is proposed to be unbundled with the clear direction for its corporation and further privatization. The fate met by the BSNL is not too far away to the Postal.
(iii) Outsourcing of department functions increased enormously over the years. The Quality of work suffered.
Therefore, it is necessary that the present scheme of outsourcing, privatization, PPP introductions and contractarisation shall be abandoned.

7. Stop price rise and strengthen PDS.
(i) The pursuance of the new economic policies and the consequent withdrawal of the universal public distribution system had been per se the reason for unbearable inflation.
(ii) Government employees even of the lowest stage are precluded from the PDS as their meager wage is considered above ‘Poverty Line’.
Therefore, it is essential to bring back the PDS and control the price rise of essential food items.

8. (a) Regularization of daily rated workers
(i) Almost 25% of the workforce are casual workers in Government departments and they are not having any permanent and perennial nature of work.
(ii) Resultantly Quality of work suffers besides exploitation of labour.
(iii) The Govt should frame a scheme for regularization and they shall be paid equal pay for equal work.
(b) Absorption of GDS as regular Postal employees.
(i) Till 1963, the GDS were called as ‘Extraneous Departmental Agents’ and treated as Govt. Servants.
(ii) The Supreme Court declared in 1977 that they are holders of civil posts.
(iii) Justice Talwar recommended that they should be treated as Govt. Servants and all facilities to be extended at par with regular employees.
(iv) However Natarajamurthy had reversed all the above and now equated them with Anganwadi and Contingent employees. Many facilities were taken back.
(v) There is ample justification to departmentalise the GDS. The General Secretary AIPEU GDS (NFPE) has submitted a detailed Memorandum to Hon’ble Minister exploring the ways & means for their departmentalization.
Notwithstanding the demand of departmentalization, we demand immediate settlement of TRCA, Bonus and recruitment rules to PM/Group ‘D’related issues which were discussed in strike charters with the Department of Posts.

9. Introduction of PLB and removal of ceiling limit
(i) Adhoc bonus of 30 days should be converted as PLB in all Government departments.
(ii) The ceiling of 60 days in PLB in Postal to be removed.
(iii) Bonus Act has no relevancy in PLB. There should be no ceiling of Rs. 3500/- for PLB.
(iv) The injustice met out of the GDS in the ceiling should be modified.
Therefore Bonus ceiling shall be computed on the basis of the actual emoluments of an employee receives.

10. Revision of OTA and Night Duty Allowance.     
(i) OTA is now being paid as per the rates fixed by 4th CPC. There is no revision. Even the hourly rate of outsourced persons in much higher than the OTA granted to the Government Employees which is now at the rate of Rs. 15.85 per Hours.
(ii) Non performance of OTA is being misused and some officials are being proceeded under disciplinary rules.
(iii) The Board of Arbitration award enhancing the quantum of OTA has not been implemented.

11. Arbitration awards
(i) There are 17 arbitration awards in favour of employees. The financial implication is very meager. Even the staff side agreed to implement some of them with prospective effect.
(ii) The Government is choosing to place the awards in the Parliament for rejection.

12. Vacate all Trade Union Victimization
(i) There is heavy vicimisation in IA & AD Department. More than 12000 employees are charge sheeted under Rule 14 & 16. Mass casual leave demanding vacation of victimisation ended with heavy casualities. Permission to hold meetings in the office are denied.
(ii) The Trade union facilities are totally denied in many Government Organisation.

13. Right to strike
(i) ILO convention provides all trade union rights. However the decisions have not been made statutory by the Government.
(ii) Govt. Employees continue to be denied the right of collective bargaining.
(iii) Supreme Court observed that Govt. Employees do not have any legal, fundamental or moral right to resort to strike action.
It is therefore urged that necessary legislation affording the right to strike to Govt. employees be made in the Parliament.

14. Career Progression (5 Promotions)
(i) All India Group ‘A’ Services provided 5 or more promotions without appearing any examination.
(ii) In respect of Group ‘C’ no cadre review has been carried out.
(iii) More promotional posts have not been identified because there is no functional justification; whereas no such yardstick is applied in case of officers.
Therefore, it is demanded to have five hierarchical promotions in one official carrier.

15. Scrap the New Pension Scheme
(i) The defined pension scheme was replaced by the contributory pension scheme from 1.1.2004 and the funds be managed by mutual fund operators in the share market.
(ii) The new pension scheme is going to make social security uncertain.
(iii) It is discriminatory as the scheme has been compulsorily imposed.
(iv) Such schemes become failure in many countries like Chile, U.K and even the USA.
(v) The contributory pension does not have the guarantee of Minimum 50% pension and there is no protection to the family due to denial of family pension.
Therefore we demand to withdraw the PFRDA Bill and ensure the statutory defined pension scheme.

Dear Comrades,
If you go through the charter of demands, you can very well understand that all the demands are important and well related to all Govt. Employees. When the Govt. do not want to hear the voice of the C. G. employees, the Confederation which led the glorious struggles in 1957, 1960 and 1968 shall not shut its eyes and remain as mute spectators.

You may think that when other organizations like Railways & Defence are silent, what is the need for confederation to struggle alone. We cannot set aside the fact that in the freedom struggle, only 6 to 7 % of the people were actively involved. We cannot mention the same reason as a ruse and remain uncared of the C. G. Employees demands. We are having the responsibilities.

Further in the Postal over 20 years, we are conducting all the struggles under JCA except the strikes notified by all trade unions and mass platform organizations. This time FNPO, despite they understand the issues and the need for the strike, could not participate in the strike action. We should be clear in our minds that does not prevent us to proceed on our agenda. That is the main distinction and our specialty in focussing the common demands.

Resultantly in some areas, the cadres of their unions may join with us considering the justification of the demands; In some places, they may put hurdles and blockades to sabotage the strike; Some may act at the behest of the officers to scuttle our actions. Yes, we shall overcome all these.

It is clear that unless the seventh pay commission is constituted, there is no question of withdrawal or deferment of Strike by the Confederation. The strike will take place on 12.12.12. We shall mobilize all the workers and rally with us.

Our Branch/Divisional Secretaries shall observe the following programme of action to organize the comrades.
(i) Hold Gate Meetings in nearby offices.
(ii) Meeting every member and explain the demands and its importance.
(iii) Hold executive meetings and allot all office bearers according to their capacity to organize in the workspots.
(iv) Issue circulars in local language about the importance of the demands.
(v) Issue phamplets and distribute to the public about our proposed strike action on 12.12.2012 seeking their cooperation; mainly focusing the wrong policies of the Department which were printed in Bhartiya Post earlier.
(vi) Hold Jathas and invite representatives from other wings of the Confederation so that it will its own importance.
(vii) Explain our position and convince the employees about the non participation of other unions under JCA.
(viii) Each & Every GDS shall be contacted in person by the office bearers and inform them that this is the first time the Departmentalisation of GDS is placed in the charter of Demands of the Confederation.
(ix) Intimate the position & requirements to the Circle unions & CHQ. The Circle unions will organise tour programmes of its office bearers and organize more meeting.
(x) The Circle Secretaries should ensure the prompt conduct of meetings as notified by the NFPE & Confederation. If they want to change the dates for the meetings, they can contact the office bearers allotted to their circles; but there should be no failure in holding meetings in any circle.

Organize! Organise!! Organise!!!
Make the strike call of confederation after 1968 an historic success.

Let us meet in the next
Comradely yours,

(R. Sivannarayana)
Offg. General Secretary

Cabinet approves 7% hike in DA for central government employees

The Cabinet on Monday approved a hike of 7% in dearness allowance (DA) for central government employees. The DA will now be 72 per cent from the current 65 per cent of basic pay from 01/07/2012.  

Tuesday, September 18, 2012


Dear Comrades,

Summary Record of discussions of the meeting held on 
27th July, 2012 
relating to 
Modified Assured Career Progression Scheme (MACPS)
In the meeting of the National Anomaly Committee, held on 17/07/2012, it was decided that Joint Secretary (E), DOPT will hold a separate meeting with the Leaders of Staff Side to discuss the issues relating to MACP Scheme which formed Agenda Item No 42 of the National Anomaly Committee. Accordingly a meeting was held on 27/07/2012 in Room No. 190 at North Block, New Delhi. The list of participants of this meeting is at Annexure IV.
Joint Secretary (E) DoPT welcomed the participants and stated that the Joint Committee which was set up by the National Anomaly Committee to discuss the issues relating to Modified Assured Career Progression Scheme (MACPS) met thrice and based on the discussions in those meetings a Report of the Committee was prepared and was placed before the National Anomaly Committee in its meeting held on 5th January, 2012. However due to shortage of time this item could not be discussed fully. In the meeting of the National Anomaly Committee held on 17th July,  2012, the Chairman had desired that since the issues involved in MACP Scheme are complex, another round of consultation through a meeting with the Staff Side under Joint Secretary (E) DoPT may be held soon. This meeting was held in pursuance of that decision. Thereafter the report of the Joint Committee was taken up for discussion.
1. Grant of MACP in the promotional hierarchy:- 
The Staff Side stated that under ACP Scheme, financial upgradation was granted in promotional hierarchy and therefore it had become part of service condition of the employees. Under the MACPS, financial upgradations is permitted in Grade Pay hierarchy only, thereby adversely affecting the service conditions. Therefore, under MACPS also the financial upgradations should be granted in promotional hierarchy.
The Official Side stated that there was no such recommendation of the 6th CPC and in fact the Commission in its report, while discussing this issue, had mentioned that although the ACPS had, by and large, alleviated the problem of stagnation and also allowed higher rate of increments in the higher scale extended under it, it had, however, given rise to other problems. The financial upgradations in that scheme followed the then existing promotional hierarchy which gave rise to uneven benefit to employees falling in the same pay scale since several Organisations adopted different hierarchical pattern. Consequently, employees working in organizations having greater number of intermediate grades suffered because financial upgradation under ACPS placed them in a lower pay scale vis-a-vis similar]) placed employees in another organization that had lesser intermediary grades.
The 6th CPC therefore, recommended a systemic change in the existing scheme of ACPS whereby all employees, irrespective of the hierarchical structure as prevalent in their organization/cadre, would get the same benefit under it.
This was accepted by the Govt with further modification to grant three financial upgradations under the MACPS at intervals of 10, 20 and 30 years of continuous regular service in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in Section 1, Part-A of the first schedule of the CCS (Revised Pay) Rules, 2008. In fact while accepting the recommendations of the 6th CPC on this issue there was no such demand by the Staff Side.
The Staff Side stated that the employees who were in service prior to 1.1.2006 had the right to retain first two financial upgradations in the promotional hierarchy and the Government cannot alter the existing service conditions adversely. The Official Side however stated that since MACPS is in supersession of earlier ACP scheme, this cannot be agreed to.
The Staff Side insisted that at least option be given to individual employees in this regard to facilitate him/her to opt for either ACP or MACP for availing benefit of financial upgradation. The Staff Side was insistent that either MACPS should be in promotional hierarchy or individual options should be given to the employees.
The Official Side stated that it was not possible to agree to individual options and if they have any alternate suggestions, the Staff Side could come back with them. 
2. Date of effect of MACP Scheme: 
The Staff Side stated that those employees who retired during the period between  1.1.2006  and 31.8.2008 could not get the benefit of MACPS and therefore the MACPS should be made effective from 1.1.2006. It was pointed out by the Official Side that during the  5th  CPC also the ACPS was made effective from a later date.
The Staff Side suggested that in respect of those who had retired/died prior to 1.9.2008, the MACP scheme could be made effective from 1.1.2006. It was pointed out that there is also the issue of some of the employees, who got the benefit of ACPS during this intervening period, may be adversely affected because of this demand.
Thus the staff Side was advised to reconsider their demand for giving effect to the MACP Scheme w.e.f. 01.01.2006.
3. Counting of 50% of service rendered by Temporary Status Casual Labour for reckoning 10/20/30 years under MACP Scheme:
It was reiterated by the Official Side that as per para 5 (v) of Appendix pertaining to Casual Labourers (Grant of Temporary Status and Regularization) Scheme, 50% of the service rendered under temporary status is to be counted only for the purpose of retirement benefits after their regularization. Since under MACPS only continuous regular service is taken into account for allowing 1st, 2nd and 3rd financial upgradations on completion of 10, 20 & 30 years of continuous regular service respectively, the demand of the Staff Side cannot be accepted for MACPS.
It was decided that this issue may be taken up by the Staff Side in National Council separately.
4. Treatment of employees selected under LDCE/GDCE Scheme: 
It was decided that treatment of such cases would be on the lines as was under the ACP Scheme and Ministry of Railways would examine the matter accordingly
5. Promotion in the identical Grade Pay: 
The Official Side stated that they will issue instructions for granting one increment for fixation of Pay in cases of promotion to the same Grade Pay if they were granted such a benefit post 5th CPC also. Such a dispensation would then apply while considering financial upgradation under MACPS.
6. Financial Upgradation under MACPs, in the case of staff who joined another unit/organisation on request:
The Staff Side pointed out that OM dated 01/11/2010 should be suitably amplified/amended covering the staff that was transferred on request on reversion to the Unit/Organisation so that the total service rendered in the previous Unit/Organisation, ignoring the past promotion, may be counted for MACPs.
The Official Side agreed to issue necessary clarificatory instructions in this regard. The Staff Side also pointed out that in certain offices the promotion in the original Unit/Organisation from which an employee got reverted/transferred to the lower post, was also being counted against MACPS which is not warranted.
The Official Side agreed to look into this issue. 
7. Extension of benefit of MACPS to an employee appointed in Grade where direct recruitment element is there while ignoring service and promotion rendered prior to his appointment in that post: 
The Official Side reiterated that suitable clarifications bearing No.5 in OM dated 09/09/2012 have already been issued and matter stands resolved.
8. Stepping up of Pay of Senior incumbents at par with Junior incumbents as a consequence of ACP/MACPs 
It was stated by the Official Side that stepping up of pay in the pay band or grade pay with regard to junior getting more pay than the senior on account of pay fixation under the MACP Scheme can be considered as a special dispensation and suitable clarificatory instructions will be considered to deal with such situations.
The Staff Side also raised the issue of injustice being meted out particularly in the Accounts Department of Indian Railways wherein the incumbents who cleared the Appendix examination are drawing less pay as compared to those who could not qualify the said examination and got the benefit of MACPs. The Staff Side stated that this led to de-motivation among qualified staff and urged for rectifying such an anomaly.
It was agreed to examine this separately and Ministry of Railways was advised to send the proposal in question
9. Benchmark for MACP 
It was decided that suitable instructions will be issued to specifically clarify that wherever promotions are given on non-selection basis (ie seniority cum fitness), the prescribed benchmark, as mentioned in para 17 of Annexure I of MACPS dated 19.5.2009, will not be applicable and the benchmark for promotion will apply for the purpose of MACPS.
10. Grant of ACP benefit to Artisan Staff of Ministry of Defence:
The Staff Side insisted that based on Fast Track Committee recommendations, the then existing Highly Skilled grade (in the Pre revised pay scale of Rs 4000-6000) was split equally in the ratio of 50:50 and redesignated as Highly Skilled Grade II (GP 2400) and Highly Skilled Grade I (GP 2800) with effect from 1.1.2006.
The Staff Side stated that such placement of employees in Highly Skilled Grade I (GP 2800) with effect from 1.1.2006 to 14.6.2010 cannot be treated as promotion for the purpose of grant of financial upgradation under MACP Scheme.

        The Official Side stated that on the issue of Artisan Staff of the Ministry of Defence, the matter has already been examined on file and Ministry of Defence has been advised accordingly.
The Staff Side insisted that this should be reconsidered so that placements in higher Grade may not be taken as promotion for the purpose of grant of financial upgradation under MACP.

The Official Side stated that this has repercussions on the employees working in Railways and therefore it is not amenable to acceptance.
(11).  The rest of the items of the Report of the Joint Committee, as indicated below, were closed as appropriate action had been taken with respect to the issues raised therein.
(1) Applicability of MACPS to Group D employees who have been placed in the grade pay of Rs.1800/- in PB-i.
(2) Grant of financial up gradation under old ACP Scheme between 1.1.2006 and 31.8.2008
(3) Counting of services rendered prior to re-appointment for the purpose of MACP.
(4) Accounting of services rendered before Removal/Dismissal from service and subsequent reinstatement in service for the purpose of MACP Scheme
(5) Counting of service rendered in State Govt/PSUs etc.
(6) Regulation of Probation period under MACPS
(7) Application of MACPS to the Surplus Staff Re-deployed to lower posts in other Cadres/Organisations.
(8) Entitlement of the privileges after financial upgradation under MACP Scheme
(9) Extension of ACP/MACP Scheme to Staff Car Drivers /Civilian Motor Drivers/MT Drivers/Fire Engine Drivers etc.
(10) Pay Fixation on promotion subsequent to grant Of MACPs
(11) Notional Classification for CGE1S consequent upon MACPs.
(12) The Staff Side raised the following issues though they were not part of the MACP Joint Committee Report.
Employees who got one pro motion prior to 01/09/2008 and completed over two decades of service without benefit of promotion and are denied third ACP under MACPs: 
The Staff Side raised this issue and insisted that in such cases, third MACP should be straight away given to staff from the date subsequent to the date of completion of two decades of service after promotion. After discussions, the Official Side while appreciating the position stated that this is a peculiar situation and agreed to consider this issue on the basis of a reference to be made by the Ministry of Railways in this regard.
Modification of recruitment rules particularly in Railways and upgradation granted by abolition of Pay Scale-Implementation of MACPs 
Though this was not a part of the MACP Report, the Staff Side raised this issue in the meeting and explained that in the Railways, the lower pay scales were abolished and posts were upgraded to higher pay scales with revision of recruitment qualification and designation. In such cases the Staff Side insisted that entry Grade Pay as a result of upgradation consequent upon abolition of lower Pay Scales should be taken into consideration for reckoning 10/20/30 years of service for granting MACP.

The Official Side decided that the Railway Board may send an appropriate proposal to the DoP&T in consultation with the Staff Side. 
13.  The Official Side reiterated that MACP Scheme is a fall-back option and the Ministries have to conduct Cadre Restructuring in right earnest for ensuring that promotional avenues are available to the staff within a reasonable time frame. It was agreed that Ministry of Finance would issue instructions to all Ministries/Departments/Cadre authorities to undertake Cadre restructuring of Group B & Group C formations in a time bound manner.
The Staff Side pointed out that the Ministry of Railways is citing the instructions of Ministry of Finance issued some years back that only one third of the Cadre could be disturbed, for revising the percentages for the purpose of Cadre restructuring, the Official Side stated that this would be examined and if required, necessary clarificatory instructions will be issued to the Ministry of Railways so that the Cadre Restructuring could be carried out.
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