Our Bureau

New Delhi, March 24

THE Union Cabinet on Thursday gave its approval for the release of additional instalment of dearness allowance (DA) and dearness relief to Central Government employees and pensioners with effect from January 1 this year.

Thus, the rate of DA will be 17 per cent from that date for all Central employees, a three-percentage-point increase from the existing 14 per cent.

The additional financial implications on account of this increase are estimated at Rs 1,146.24 crore a year and Rs 1,337.28 crore from January 1, 2005 to March 31, 2006.

In the case of pensioners, the additional financial implications work out to Rs 462 crore a year. In another decision, the Cabinet also approved Rs 978-crore budgetary support to the National Jute Mills Corporation (NJMC) for providing the voluntary retirement scheme, liquidating statutory arrears, gratuity and secured liabilities.

(This article was published in the Business Line print edition dated March 25, 2005)
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