New Delhi, March 24
The Union Cabinet today decided to increase the dearness allowance (DA) of Central Government employees and pensioners by 3 per cent with effect from January 1, 2005.

Thus, the rate of DA from January 1, 2005, will be 17 per cent for all Central Government employees, a rise of 3 per cent over the existing rate of 14 per cent.

The additional financial implications on account of this increase of DA are estimated at Rs1146.24 crore per annum and Rs1337.28 crore in the financial year 2005-2006 (i.e. for a period of 14 months from January 2005 to February 2006.

The additional financial implications on account of this increase of dearness relief to pensioners are estimated at Rs 462 crore per annum and Rs 537 crore in the financial year 2005-2006. Thus, the combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs1608.24 crore in a full year and Rs1874.28 crore in the financial year 2005-06, an official statement said.

The Union Cabinet also approved the reduction of manpower of the National Jute Manufactures Corporation (NJMC) by offering VRS to all employees of the organization, including the employees of the head office. It has also been decided to extend budgetary support to the extent of Rs 978 crore for providing VRS, liquidating statutory arrears, gratuity and secured liabilities of the NJMC.

VRS will be offered after the approval of the Board for Industrial and Financial Reconstruction (BIFR) and the Ministry of Labour within three months.

The Cabinet also gave its ex post facto approval for the extradition treaty between India and Oman, Bulgaria and Kazakhstan.

These treaties will provide a legal framework for extradition of terrorists and other criminals from and to these countries.

The Cabinet also approved the proposal for the ratification of the Amendment to Article 1 of the Convention on Certain Conventional Weapons (CCW) to extend the scope of the convention to cover armed conflicts of international and non-international character. Approval was also given for the ratification of Protocol V on Explosive Remnants of War to address the problem associated with unexploded or abandoned explosive ordnance in a post-conflict scenario.

This will fulfil India’s commitment that life and livelihood of civilians must be protected from the menace of weapon systems identified in the convention and its annexed protocols and to reduce the risks to civilians in post-conflict situations from Explosive Remnants of War.

The Cabinet also approved for signing an agreement between India and the Hong Kong Special Administrative Region of China in order to improve the effectiveness of law enforcement of both parties in the investigation, prosecution and prevention of crime, through cooperation and mutual legal assistance in criminal matter.

It also approved the proposal to set up a National Institute for Smart Government (NISG) as a Section 25 not-for-profit company with equity of 49 per cent by the government and 51 per cent by the private sector, the statement said.

The Cabinet also approved the contribution of equity of Rs 1 crore each by the Department of Administrative Reforms and Public Grievances and the Department of Information Technology. Thus, the total Central Government equity would be of Rs 2 crore.

The Union Cabinet also gave its approval for the introduction of the Commission for the Protection of Child Rights Bill, 2005, in the current session of Parliament.

The commission will be the statutory mechanism to oversee and review the implementation of the national policy for children and recommend remedial action in instances of violation of child rights.

The Cabinet Committee on Economic Affairs today approved a scheme for computerisation of district and subordinate courts with a project cost of Rs 384.53 crore in a phased manner as a 100 per cent Centrally-funded scheme.

The CCEA also approved extension of the World Bank-assisted Integrated Child Development Services Project III / Women and Child Development Project, including the ICDS Training Programme Project UDISHA by 18 months i.e. from October 1, 2004, to March 31, 2006. Approval for the period from July 1, 2005, to March 31, 2006, would be subject to compliance of conditions stipulated by World Bank.