The Union Cabinet on Thursday approved an eight per cent increase in dearness allowance for Central Government employees and dearness relief to pensioners from 72 per cent to 80 per cent effective January 1, 2013.
Manish Tiwari, Information and Broadcasting Minister, said the decision to raise DA will result in an additional burden of Rs 8,269.20 crore on the exchequer. Including the arrears for the January-March period, the total burden on the exchequer for the 14-month period till February 2014 would be Rs 10,067 crore, he said.
The Cabinet also approved an extension of one month for the panel headed by former Chief Justice of Punjab and Haryana High Court, Justice Mukul Mudgal, that is probing into the alleged lobbying by the US-retail giant Walmart to gain entry into the Indian market.
The tenure of the panel will be extended from May 1 to May 31, 2013.
The Cabinet also approved Rs 1,083 crore revival package for HMT.
It also approved the Indian Railways’ proposal for permitting use of its land for crossing metro networks under ground, on the surface as well as elevated/over ground.
The Railways will also allow opening of Kendriya Vidyalayas on its land in order to provide adequate educational facilities to children of railway staff/officials placed in remote areas, and where educational institutions are not adequate.
Further, the Cabinet also approved the continuation of the special plan for Bihar in the remaining four years 2013-14 to 2016-17 of the Twelfth Five-Year Plan with a total allocation of Rs 12,000 crore for the entire Plan period.
It also approved the continuation of special plan for the KBK districts Kalahandi-Bolangir-Koraput of Odisha with an allocation of Rs 250 crore per annum in the remaining four years of the 12th Plan period.
Also the special package for implementing drought mitigation strategies in Bundelkhand region of Uttar Pradesh and Madhya Pradesh will be continued in the remaining four years of the Twelfth Plan with a total allocation of Rs 4,400 crore for the entire plan period.