4% extra DA for govt staff

The Cabinet today cleared an additional instalment of dearness allowance for central government employees and dearness relief for pensioners at a rate of 4 per cent, over and above the existing rate of 17 per cent. The increase, effective from July 1, will increase the cash component of DA relief to 21 per cent of the basic pay.

Information and Broadcasting Minister Jaipal Reddy today said the additional financial burden because of the increase would be Rs 2,137.92 crore Rs 1,521.92 crore per annum and Rs 616 crore per annum for serving employees and pensioners, respectively.

The Cabinet Committee on Economic Affairs (CECA) approved the establishment of an early warning system for mitigation of oceanogenic disasters like Tsunami and storm surges in the Indian ocean at an estimated cost of Rs 125 crore.

The project, to be operational by September 2007, includes the setting up of an early warning centre in Hyderabad at the Indian National Ocean Information Services. Reddy said the Cabinet had also cleared the creation of Prarambhik Shiksha Kosh, a non-lapsable fund for elementary education from the proceeds of the education cess. The fund will be on the lines of the non-lapsable central pool of resources for the Northeastern region.

He said the elementary education sector would be assured annual plan allocations based upon the need, and would be provided budgetary resources to the full extent of the gap between the requirement and the estimated cess revenues for the year.

The CCEA also approved the implementation of the 'Hydrology Project' at a cost of Rs 631.83 crore and contingency of Rs 106.24 crore for a period of six years from 2005-06 by Central and state agencies with the International Bank for Reconstruction and Development Loan. The project will be implemented over a period of six years from this financial year till 2011.

An additional allocation of Rs 47.35 crore for implementing the rehabilitation scheme of British India Corporation (BIC) Kanpur was also cleared. The payment will be made to the Uttar Pradesh government to secure conversion of leasehold lands into freehold to be repaid in 8 quarterly installments.

Amendments to the Inland Vessels Act of 1917 was also cleared. The amendments will now be introduced in the winter session of Parliament.

Reddy said the scheme of the second phase of community radio had been referred to a group of ministers.

The CCEA also approved the modification in the grant-in-aid pattern of the Integrated Child Development Services Scheme to provide grant-in-aid to states and Union territories for supplementary nutrition to the extent of 50 per cent of the financial norms or 50 per cent of the expenditure actually incurred, whichever was less.