New Delhi, Feb 20: The Union Cabinet on Friday cleared a proposal for merger of 50 per cent dearness allowance (DA) of Central government employees with the basic pay.
The proposal was discussed at the meeting of the Cabinet, chaired by Prime Minister Atal Bihari Vajpayee, on Friday morning in the light of recommendations of the Fifth Pay Commission and suggestions by the BJP to the government, sources said. The move would benefit the Central government employees in terms of substantial increase in their provident fund and other retirement benefits as also allowance like House Rent (HRA), they said. The Cabinet is also understood to have cleared a proposal relating to Rural Electrification Corporation aimed at improving electricity supply for the rural areas but the modalities would be worked out by the Power Ministry in consultation with Planning Commission. The Cabinet was considering a proposal to provide electricity to one crore households in one lakh villages, sources said. Bureau Report