Cabinet clears 5 per cent hike in DA for Central govt staff
New Delhi: The cabinet has cleared the release of an additional installment of dearness allowance (DA) for central government employees and of dearness relief (DR) for pensioners. The sanctions were due from July 1.

Announcing the decision, a government spokesperson said, "The dearness allowance and relief would be given at the rate of 5% over the existing rate of 24%." The rate of DA and DR will now be 29% for all government employees and pensioners. More than one crore Central government employees and pensioners would now benefit if the Sixth Pay Commission recommendations are implemented and the staff begins to get interim relief.

According to the Govt. the total impact on the exchequer, on account of the slated increase in the DA and DR amounts, is estimated at Rs2,787.15 crore for the financial year and Rs1,858.15 crore for the eight months (from July 2006 to February 2007) of the current fiscal.
Back to News Review index page  

Govt clears redesign of Bangalore int'l airport
New Delhi: The government has allowed Bangalore International Airport (BIAL) to make changes in the project design to enable it to to cater to 8.4 million passengers by 2010, as against the earlier target of 2020.

The Union cabinet approved amendments to the concession agreement with BIAL, allowing the joint venture firm to re-design the international airport under construction at Devanahalli, Bangalore.

Traffic estimates in 2000 had shown that 8.4 million passengers would travel to and from Bangalore in 2020, but a boom in air travel meant that the passenger projection would have been reached in 2010 itself.

As against the initial forecast of 41,000 aircraft movements per year in 2010, the latest projection has increased to 1,06,000 movements per annum, forcing the BIAL to re-design the airport by merging the second phase of construction with the first phase to be completed by 2010.

The projected cost, taking into account the redesigning of the project, would go up from Rs1,411.79 crore to Rs1,930.29 crore - a hike of Rs518.5 crore which would be funded through additional debt.
Back to News Review index page  

Cabinet clears Patna's rail-cum-road bridge project
New Delhi: The cabinet committee on economic affairs has given its approval for enlarging the rail bridge over the river Ganga near Patna to a rail-cum-road-bridge at a total cost of Rs1,389 crore. The construction of the bridge is expected to be completed in five years.

The bridge will provide relief to the existing distressed road bridge — Mahatma Gandhi Setu and will also connect Patna on the southern bank with Sonepur (Hajipur) on the northern bank.

The share of the Railways in project cost will be Rs835 crore. This is one of the mega bridge projects under the National Rail Vikas Yojna.
Back to News Review index page