Friday, Jan 27, 2023

Dearness Allowance (DA) hiked by 3% for central govt employees, pensioners

Dearness Allowance (DA) hike news today: The additional instalment will be effective from January 1, 2022, said an official release after the Cabinet meeting

Dearness Allowance (DA) hike news todayDearness Allowance (DA) hike: This will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners, the release said (Representational)

The union Cabinet on Wednesday approved release of an additional instalment of Dearness Allowance to central government employees and Dearness Relief to pensioners, representing an increase of 3% over the existing rate of 31% of the Basic Pay, to compensate for price rise.

This increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission and the additional instalment will be effective from January 1 this year.

“The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,544.50 crore per annum. This will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners,” the Cabinet said in a statement.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi also approved the time extension (36 months) to identified 10 Provisional Mega certified projects for furnishing the final Mega Certificates to the Tax authorities.

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“Extension of time period for furnishing final mega certificate will enable developers to competitively bid for future PPAs (Power Purchase Agreements) and get tax exemptions as per Policy terms. The increased liquidity will boost the overall growth of the country and also ensure the revival of various stressed power assets,” the Cabinet said.

The time period for the 10 Provisional Mega projects which are commissioned/ partly commissioned for furnishing the final Mega certificates to the Tax authorities has been extended to 156 months instead of 120 months from the date of import.

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It added that during this extended period, bids for firm power (combination of intermittent renewable energy, storage and conventional power) will be invited in co-ordination with Ministry of New & Renewable Energy (MNRE) and Solar Energy Corporation of India Limited (SECI) and these Mega projects will be expected to participate in such bids to secure PPAs.

The power ministry will also develop an alternative in this period, based on present electricity markets while ensuring that benefits are passed onto consumers in a competitive manner.

First published on: 30-03-2022 at 15:07 IST
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