1. IDA will be freezed till 30th June 2021.
2. IDA rate from 01.07.2020 to be continued till 30.06.2021.
3. From 1st July 2021, the effective IDA rate will consider the 3 missed IDA rate of 01.10.2020, 01.01.2021, 01.04.2021.
4. No arrears will be paid for these 3 missed quarters (01.10.2020, 01.01.2021, 01.04.2021).

Industrial Dearness Allowances to be revised quarterly for Central Public Sector Enterprises (CPSEs) or PSUs has been freezed by Department of Public Enterprises under the ministry of Heavy Industries & Public Enterprises.

Freezing of IDA, Dearness Allowances for CPSE employees till 30th June 2021:

Freezing of Dearness Allowances to employees of Central Public Sector Enterprises (CPSEs) drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines at current rates till 30th June 2021 order has been issued on 19th Nov’ 20.

The order copy can be downloaded here:Freezing-DA-rates-for-IDA-pay-scales-up-to-30.06.2021DOWNLOAD

The ministry of Heavy Industries & Public Enterprises has already freezed DA /DR for Central Government employees on 23.03.2020. Now, Government of India has issued IDA freezing order for CPSE employees too.

Government of India had released average AICPIN for the quarter Jun’20, Jul’20, Aug’20. With these average AICPIN numbers, the IDA for 3rd PRC should have been increased by 2.52 % from October 2020 for 2017 (3rd PRC) pay scales. Similarly, the IDA from October 2020 for 2nd PRC should have been increased by 5.55 % for 2007 (2nd PRC) pay scales. But, now these increments have been frezzed till 30th June 2021.

No DA/DR to Central Government employees till July 2021

IDA rate calculation for 2nd PRC and 3rd PRC from 1st October 2020

From 01.10.2020, IDA will increase to 20.9 %, increased by 2.52 % for 3rd PRC or 2017 pay scale employees. For 2nd PRC or 2007 pay scale, IDA will increase to 165.4 % increased by 5.55 % after declaration of August AICPIN on 30.09.20.

Since, the DA increments have been freezed, so the DA from 1st OCT’20 number will be added while calculating DA from 1st July 2021.

The AICPI – IW (All-India Consumer Price Index – Industrial Workers) is released by Labour Bureau, under Ministry of Labour and Employment, on the last working day of every month for previous month. And based on the consecutive 3 months, means 1 quarter, calculation of average is done to finalize the IDA rate, which may be more or less than the previous quarter IDA rate.

1. IDA for 3rd PRC from 1st October 2020 will be 20.9 %, increased by 2.52 % for 2017 pay scale.
2. IDA for 2nd PRC from 1st October 2020 will be 165.4 %, increased by 5.55 % for 2007 pay scale.
3. IDA from from 1st October 2020 is yet to be declared for 1997 pay scale.
4. IDA from from 1st October 2020 is yet to be declared for for 1987 & 1992 pay scale (based on the pay-band).

AICPIN -IW of last 3 months

1. 22.10.2020 – Sep AICPIN – 340  (118 x 2.88 = 340)
2. 30.09.2020 – Aug AICPI – 338
3. 31.08.2020 – Jul AICPI – 336

Based on the AICPI-IW data, Department of Public Enterprises (DPE) under Ministry of Heavy Industries & Public Enterprises calculates the new IDA rate and releases the press note indicating the change in IDA rate.

Similarly, after the release of aicpin-iw data of September 2020, October 2020 and November 2020 by the Ministry of labour and employment, the IDA from 1st January 2021 for PSU, CPSE and Govt. employees will be decided for 3rd PRC, 2nd PRC etc.

Past change of IDA for CPSE employees for 2017 (3rd PRC), 2007 (2nd PRC), 1997, 1987 & 1992 with DPE letter:

The current data of IDA since 01.01.2018 for all the pay scale as well as the historical data of all the CPSE pay scales implemented from year 2017, 2007, 1997 and 1987 & 1982 are compiled here.

This will give you the reference to compare all the data among the different pay scales in different times, how much differences are among the pay scales and in same pay scale, what is the timeline of IDA change.

Here the IDA change has been written for a quarter for all the pay scales. These letters are issued by the DPE under MHIPE. The official letters issued by them has been attached here in the link. Click on the ‘IDA % number’ link to fetch the official letter from the DPE website.

How to calculate IDA rate for 3rd PRC or 2017 pay scale? Example:

• Average AICPI (2001=100) for the quarter Mar 2020 to May 2020:
• Aug 2020 = 338
• Jul 2020 = 336
• Jun 2020 = 332
• Average of the quarter = 335.33
• Link point = 277.33 (as on 01.01.2017)
• Increase over Link point = 58 = [335.33- 277.33]
• DA rate effective from 01.10.2020 = 20.91 = [(58/ 277.33) x 100]

How to calculate IDA rate for 2nd PRC or 2007 pay scale? Example:

• Average AICPI (2001=100) for the quarter Mar 2020 to May 2020:

• Aug 2020 = 338
• Jul 2020 = 336
• Jun 2020 = 332
• Average of the quarter = 335.33
• Link point = 126.33 (as on 01.01.2007)
• Increase over Link point = 209 = [335.33- 126.33]
• DA rate effective from 01.10.2020 = 165.44 = [(209/ 126.33) x 100]

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3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 16th Dec 2016

OFFICE MEMORANDUM

Subject :  Grant of Dearness Relief to Central Government Employees who had drawn lump sum amount on absorption in a PSU/Autonomous body and are in receipt of 1/3rd restored commuted portion of pension – Revised rate effective from 1.7.2016.

The undersigned is directed to refer to this Department’s OMs 42/06/2016- P&PW(G) dated 11th April, 2016 and 421l5/2016-P&PW(G) dated 16.11.2016 wherein it was decided to issue separate Dearness Relief orders to the Central Government employees who had drawn lump sum amount on absorption in a PSUI Autonomous body and are in receipt of 1131d restored commuted portion of pension and to say that the President is pleased to decide that the Dearness Relief (DR) shall be enhanced from the existing rate of 125% to 132% w.e.f. I st July, 2016.

2. These orders will be applicable to Central Government employees who had drawn lump sum amount on absorption in a PSU/Autonomous body and have become eligible for restoration of 1/3rd commuted portion of pension. These employees will be entitled to the payment of DR @ 132% w.e.f. 1.7.2016 on full pension i.e. the revised pension which the absorbed employee would have received had he not drawn lump sum payment on absorption and Dearness Pension subject to fulfilment of the conditions laid down in para 5 of the O.M. dated 14.07.98 as amended from time to time. In this connection, instructions contained in this Department’s OM No.4/29199-P&PW (D) dated. 12.7.2000 refers.

3. Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee.

4. Other provisions governing grant of DR in respect of employed family pensioners and re-employed Central Government Pensioners will be regulated in accordance with the provisions contained in this Department’s OM No. 45173/97-P&PW (G) dated 2.7.1999 as amended vide this Department’s OM No. F.No. 38/88/2008-P&PW(G) dated 9th July, 2009.

The provisions relating to regulation of DR where a pensioner is in receipt of more than one pension will remain unchanged.

5. It will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of DR payable in each individual case.

6. The offices of Accountant General and authorised Pension Disbursing Banks are requested to arrange payment of relief to pensioners etc. on the basis of these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India in view of letter No. 528- TA, lI/34-80-II dated 23/0411981 of the Comptroller and Auditor General of India addressed to all Accountant Generals and Reserve Bank of India Circular No. GANB No. 2958/GA-64 (ii) (CGL)/81 dated the 21 st May, 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.

7. In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue after consultation with the C&AG.

8. This issues in pursuance of instructions of Ministry of Finance, Department of Expenditure vide their OM No. 1/3/2008-E.II(8) dated 09th Nov, 2016.

9. Hindi version will follow.

(Charanjit Taneja)
Under Secretary to the Government of India

Source: Confederation
Click to view the order

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Government of India
Ministry of Railways
(Railway Board)

RBA No.94/2016

No.2016/AC-II/21/Misc Matters

New Delhi, dated 08.12.2016

General Managers,
All Zonal Railways & PUs.

Sub: Admissibility of Dearness Relief to pensioners on absorption in PSUs/ employed family pensioners.

Kindly, refer to Board’s letter no. 2012/AC-II/21/Misc Matters dated 11.04.2016 followed by reminder dated 07.11.2016 reiterating instructions issued vide Board’s letter No. F(E)III/99/PN1/21 dated 05.08.1999 and letter no. F(E)III/2005/PN1/2. dated 29.09.2009 on the above subject. It was stated that instances have been brought to notice of Vigilance Directorate by one of the PSU wherein Dearness Relief on pension is being paid to certain re- employed pensioner not eligible to the draw the same as no endorsement towards non- admissibility of DR was made on their PPOs. Accordingly, it was requested to conduct a thorough check to detect such cases where DR relief on re-employment in Railway PSU sand other orgaliization has been paid/ drawn in violation of the laid down guidelines an send the compliance report to Board’s office. However, reply in this regard is not forthcoming from any of the Railways .

It is once again requested to conduct a thorough check to detect such cases followed by necessary recovery from the defaulting retired Railway Pensioner, besides taking further necessary action as per rules.

sd/-
(B.B. Verma)
Adviser Accounts
Railway Board

Source : http://www.indianrailways.gov.in/

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The move Marks the Beginning of a Historic Milestone in the form of Institutional Financing for the First time Becoming Available for Railway Projects

Suresh Prabhu : Fresh Investments to Help Decongest the Network, Increase Traffic Output and Generate Adequate Internal Resources

Life Insurance Corporation (LIC), a PSU of Government of India presented the cheque of Rs.2000 crore to Railway PSU Indian Railway Finance Corporation (IRFC) as the first tranche of funding assistance to Railways for its projects. This handing over of cheque was done today i.e. 27.10.2015 at an impressive function at Rail Bhawan in the presence of Ministry of Railways Shri Suresh Prabhakar Prabhu. The cheque was handed over by Shri S.B. Mainak, MD/LIC to Shri Rajiv Dutt, MD/IRFC. On this occasion, Chairman Railway Board Shri A.K. Mital, Financial Commissioner (Railways) & Chairman, IRFC Shri S. Mookerjee; and other Board Members & other Railway and LIC officials were among those present.

It may be recalled that just within fifteen days of presenting the Railway Budget 2015-16, an important commitment of Budget announcement was fulfilled on 11.03.2015 when Railways and LIC signed an MoU for the highest ever funding of Rs. 1.5 lakh crore from LIC to Railways.

Addressing the gathering, Minister for Railways Shri Suresh Prabhakar Prabhu, pointed out that finding resources for investment in capacity enhancement projects was a major challenge for Railways. Without investment, it would not be possible to decongest the network, increase traffic output and generate adequate internal resources. He said that without the fresh investment, the Railways would have gone further down and down and it would not have succeeded in breaking the vicious cycle. The Railway budget 2015-16 had, therefore, envisaged a new source of funds in the form of Institutional Finance. It was a big achievement that within a few days of presenting the budget, the Ministry of Railways signed a Memorandum of Understanding with LIC for funding assistance of Rs.1.5 lakh crore for financing Railway projects over a period of 5 years. As LIC funding will be of 30 year tenor, it matches the Railways’ requirement of long term funds for investment in projects. LIC funds will carry low interest rates tied to Government security, and the cost of funds are expected to come down further over a period of time. Shri Suresh Prabhakar said that an important beginning has been made today with the release of first cheque of LIC funds. It is now for the Railways to match up to the challenge of utilizing the funds in a productive and appropriate manner for realizing maximum benefit. He said that these funds will not only meet the requirement for the new railway projects but will also be utilised for those ongoing projects which will bring quick benefit to the railway system. He said that this arrangement of funds from LIC will be beneficial for both the organizations. Referring to Railway PSU IRFC, Shri Suresh Prabhu said that IRFC has now emerged as an important vehicle for channelizing investment for Railways.

In his speech, MD/LIC Shri Mainak described it as a Golden Day as LIC has found a partner in the Indian Railways which is a viable and sound organization for investing the long term funds available with LIC. MD/LIC offered continued support for Railway projects in future.

The LIC funds are available to the Railways at a rate of 30 bps over the 10-year benchmark yield. The tenor is 30 years with a moratorium of 5 years followed by payment of only interest from year 6 to year 10. From the 11th to the 30th year the loan will be repaid in equated instalments.

Advisor Finance, Railway Board, Shri P.V. Vaidialingam proposed the Vote of Thanks at the end of the programme. Ms. Namita Mehrotra, Executive Director Finance (Resource Mobilization) Railway Board, conducted the proceedings of the programme.

PIB

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F. No. 2(54)/08-DPE (VC) –
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises

Public Enterprises Bhawan,
Block 14, CGO Complex,
Lodi Road, New Delhi-110003.
Dated the 26th September, 2013

OFFICE MEMORANDUM

Subject: – Payment of DA to the CDA pattern employees of 69 CPSEs governed by HPPC recommendations.

The undersigned is directed to refer to para No. 2 and Annexure III to this Department’s O.M. dated 14.10.2008 wherein the rates of DA payable to the employees who are following CDA pattern has been indicated.

2.The DA payable to the employees may be enhanced form existing rate 80% to 90% with effect from 01.07.2013

3.The payment of Dearness Allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.

4.These rates are applicable in the case of CDA employees, whose pay have been revised with effect from 01.01.2006 as per DPE O.M. dated 14.10.2008.

5.All administrative Ministries/Departments of Government of India are requested to bring the foregoing to the notice of the Central Public Sector Enterprises under their administrative control for action at their end.

(Samsul Hague)
Under Secretary

Source: http://dpe.nic.in/

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