1. In terms of the instructions contained in this office letter of even number dated 08.10.2008, both Leave on Average Pay and LHAP are to be considered for encashment at the time of retirement, subject to the overall limit of 300 days.
2. The matter regarding applicability or otherwise of the instructions dated 8.10.2008 referred to above in cases of permanent absorption of railway employees in PSUs /Autonomous Bodies, has been examined in consultation with the Department of Personnel & Training, the nodal Department of the Government in the matter, and it is clarified that the instructions dated 8.10.2008 ibid are not applicable in the case of permanent absorption of railway employees in PSUs /Autonomous Bodies. In other words, the existing provision of forfeiture of LHAP standing at the credit of such railway servants on absorption in PSUs/Autonomous bodies shall continue to be in force.