"Chief Minister Naveen Patnaik has agreed on principle to abolish the block grant system," Patra told reporters as the teachers' agitation entered 16th day today.
The teachers have been demanding abolition of block grant system in which they get a consolidated amount without any allowances or other benefits.
The agitating teachers, however, said that they would intensify the stir demanding implementation of grant-in-aid system by which they would get basic pay, grade pay, increments etc.
Meanwhile, opposition BJP asked the state government to announce the recommendations of the 7th Pay Commission for block grant teachers and other low paid employees in the state.
The state government announced the 7th Pay Commission recommendation for state government employees.