The Government of India have been constantly endeavoring to improve the organizational efficiency by regularly reviewing the existing systems, procedures and staffing pattern. The Department of Administrative Reforms and Public Grievances carry out studies aimed at system improvements and the Staff Inspection Unit of the Ministry of Finance carries out work-measurement studies of optimizing the utilization of the manpower available in the Ministries/Departments/Offices of the Government of India.

As a result of these studies, some posts and staff are found to be surplus. The aim of these studies is, however, not to retrench such staff, but to improve productivity and bring about scientific management of the services. It was considered that the experience acquired by such staff should be put to good use by redeploying them in needy Ministries/Departments/Offices of the Government of India. Consequently, the Government of India decided upon introducing a new scheme for redeployment of personnel declared surplus. The scheme came into effect from the 25th February, 1966.

The original scheme and the rules framed for redeployment of surplus staff have undergone various modifications and improvements. The existing scheme has been issued vide O.M. No. 1/18/88-CS.III dated 1.4.1989 and the rules for regulating redeployment of surplus employees have been notified vide G.S.R. 99(E) dated 28.2.1990 of the Department of Personnel & Training.