Increase in DA, DR for Central Govt employees

Increase in DA, DR for Central Govt employees
EXPRESS NEWS SERVICE

NEW DELHI, APRIL 3: The dearness allowance (DA) and dearness relief (DR) to the Central Government employees and pensioners, respectively, have been increased by two per cent with effect from January 1 this year, the Union Cabinet decided today.

During a meeting, the Government also approved the starting of restoration work on a World War II railway line from Kakinada to Kotipalli in east Godavari district of Andhra Pradesh, which would link with the Howrah-Chennai main line.

Giving details of the Cabinet proceedings, Parliamentary Affairs Minister Pramod Mahajan said the approval for grant of additional instalments of DA and DR would cost Rs 790.86 crore per year to the exchequer. While the rate of DA would now be 43 per cent for all Central Government employees, as against the existing 41 per cent, DR payable to pensioners would now be at the rate of 43 per cent. DA to Central Government employees is revised twice a year from January 1 and July 1, which is payable with the salaries for March and September respectively.

On the issue of restoration of railway line in the east Godavari district, as decided by the Cabinet Committee on Economic Affars, Mahajan said the Rs 51.89 crore project over 44.90 km broad gauge rail link would boost industrial development in the backward areas of the region which are rich in Iron, crude oil and other mineral resources.

The Minister said the cost per kilometre of the project had been worked out to be around Rs 1.15 crore and would be funded out of budgetary support. The project is likely to generate indirect employment during construction to the scale of about 10,000 mandays per kilometer, he added.