The Hindu Business Line : Andhra Pradesh Cabinet clears enhanced DA

THE Andhra Pradesh Cabinet today approved grant of enhanced dearness allowance at the rate of 2.45 per cent of basic pay following the Central Government decision to do so with effect from January 1, 2005.

This would mean an additional burden of Rs 198 crore on the State exchequer for the whole year and Rs. 133 crore during this financial year.

The DA from January 1, 2005 to June 30 will be credited to the GPF account of the employees. All the State Government employees, employees of local bodies and aided institutions and pensioners are being covered under this.

Briefing newspersons here today after the State Cabinet, the State Information Minister, Mohd. Shabir Ali, said the existing rate of DA of 34.35 per cent would be raised to 36.81 per cent. Along with this, the village servants and part-time assistants are being sanctioned Rs 25 per month as lump sum benefit.

The Cabinet also agreed to the request of the State Endowments Minister, Mr J. Satyanarayana Rao, to relinquish his post and take up new assignment as Sports and Culture Minister. Mr Rao was at the centre of controversy surrounding various temple land allotments.

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