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Sunday 1 September 2013

CALCULATION OF DA (DEARNESS ALLOWANCE) FOR THE MONTH OF JULY 2013

CALCULATION OF DA (DEARNESS ALLOWANCE) FOR THE MONTH OF JULY 2013

Expected DA from Jan 2014 :- Calculation of Dearness allowance for Central Govt Employees and Pensioners for the month of July, 2013, after releasing the AICPIN for July by the Labour Bureau…
The below table denotes how to calculate the Dearness allowance with All India Consumer Price Index as per the norms recommended by 6th CPC.

Month
Year
Base Year
2001=100
Total
Average
App. DA
DA
May
2008
139
1613
June
2008
140
1623
135.25
16.84
16
July
2008
143
1634
Aug
2008
145
1646
Sep
2008
146
1659
Oct
2008
148
1673
Nov
2008
148
1687
Dec
2008
147
1700
141.67
22.38
22
Jan
2009
148
1714
Feb
2009
148
1727
Mar
2009
148
1738
Apr
2009
150
1750
May
2009
151
1762
June
2009
153
1775
147.92
27.78
27
July
2009
160
1792
149.33
29.00
Aug
2009
162
1809
150.75
30.23
Sep
2009
163
1826
152.17
31.45
Oct
2009
165
1843
153.58
32.67
Nov
2009
168
1863
155.25
34.11
Dec
2009
169
1885
157.08
35.70
35
Jan
2010
172
1909
159.08
37.42
Feb
2010
170
1931
160.92
39.01
Mar
2010
170
1953
162.75
40.59
Apr
2010
170
1973
164.42
42.03
May
2010
172
1994
166.17
43.54
Jun
2010
174
2015
167.92
40.05
45
July
2010
178
2033
169.42
46.35
August
2010
178
2049
170.75
47.50
Sep
2010
179
2065
172.08
48.65
Oct
2010
181
2081
173.42
49.81
Nov
2010
182
2095
174.58
50.81
Dec
2010
185
2111
175.92
51.97
51
Jan
2011
188
2127
177.25
53.12
Feb
2011
185
2142
178.50
54.20
Mar
2011
185
2157
179.75
55.28
Apr
2011
186
2173
181.08
56.43
May
2011
187
2188
182.33
57.51
Jun
2011
189
2203
183.58
58.59
58
July
2011
193
2218
184.83
59.67
August
2011
194
2234
186.17
60.82
Sep
2011
197
2252
187.67
62.12
Oct
2011
198
2269
189.08
63.34
Nov
2011
199
2286
190.50
64.56
Dec
2011
197
2298
191.50
65.43
65
Jan
2012
198
2308
192.33
66.15
Feb
2012
199
2322
193.50
67.15
Mar
2012
201
2338
194.83
68.31
Apr
2012
205
2357
196.42
69.67
May
2012
206
2376
198.00
71.04
Jun
2012
208
2395
199.58
72.41
72
Jul
2012
212
2414
201.17
73.78
August
2012
214
2434
202.83
75.22
Sep
2012
215
2452
204.33
76.51
Oct
2012
217
2471
205.92
77.88
Nov
2012
218
2490
207.50
79.25
Dec
2012
219
2512
209.33
80.83
80
Jan
2013
221
2535
211.25
82.49
Feb
2013
223
2559
213.25
84.22
Mar
2013
224
2582
215.17
85.87
Apr
2013
226
2603
216.92
87.38
May
2013
228
2625
218.75
88.97
Jun
2013
231
2648
220.67
90.62
90
Jul
2013
235
2671
222.58
92.28


Source: http://www.centralgovernmentnews.com/calculation-of-da-dearness-allowance-for-the-month-of-july-2013/
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Loans and Advances by the Central Government – Interest rates and other terms and conditions

Loans and Advances by the Central Government – Interest rates and other terms and conditions

F.No.5(3)-B(PD)/2012
Government of India
Ministry of Finance
Department of Economic Affairs
New Delhi, the 7th January, 2013
OFFICE MEMORANDUM

Subject:- Loans and Advances by the Central Government – Interest rates and other terms and conditions.

Reference this Ministry’s Office Memorandum F.No.5(3)-B(PD)2011 dated 19 th March, 2012 on the captioned subject.

2. The lending rates prescribed in the aforesaid Office Memorandum have been reviewed. The revised rates of interest applicable from 1st April 2012 are given in the Table below:—
Category of borrower & type of loan Interest rate per cent per annum
1. State Governments:
(i) Ways and Means Advances (Recoverable within the year) 8.50
(ii) Other Loans 9.00
2. Union Territory Governments (with Legislature):
(i) Loans upto 1 year 8.50
(ii) Other Loans 9.00
3. Industrial and Commercial Undertakings in the Public Sector and Cooperatives
(i) Investment loans 11.50
(ii) Working Capital loans and loans to meet Cash losses 13.50
(iii) Loans for implemantation of VRS in sick PSUs 11.50
4. Financial institutions in the Public Sector, Port Trusts, KVIC, NHAI, Municipal Corporation of Delhi,Commodity Boards, Social Service Institutions, Individuals, etc.
(i) Rural Electrification Corporation:
(a) For Minimum Needs Programme (M.N.P.) 10.00
(b) Others 10.00
(ii) National Bank for Agriculture and Rural
Development (NABARD) and National Cooperative Development Corporation (NCDC) 10.00
(iii) National Highways Authority of India (NHAI) and Port Trusts 10.00
(iv) Others 11.50

The rate of interest prescribed for “Other Loans” under sub-para 1 (ii) and 2 (ii) above is also applicable for Additional Central Assistance (ACA) on the un-disbursed amount of the loan/issues for all disaster Reconstructions and Rehabilitation Programme assisted by World Bank & ADB.
The loans to State Electricity Boards, Damodar Valley Corporation under the scheme for renovation and modernisation of thermal power stations would carry interest at the same rate as applicable to ‘Other Loans’ to State Governments. Normally, loans should not be given to Private Sector Companies. In exceptional cases where such loans become necessary interest should be 1/2% higher than those prescribed for Public Sector.

3. The terms including interest rate of loans to Foreign Governments may be settled in consultation with Budget Division. Terms for on-lending of funds under externally aided projects should be in accordance with the prescribed pattern. In case, deviation is considered necessary, Budget Division should be consulted.

4. The interest rates prescribed above assume timely repayments and interest payments and hence no further rebate in rates is to be allowed for timely payments.

5. OTHER TERMS AND CONDITIONS
The instructions issued from time to time have been reviewed and are set out in the following paragraphs for facility of reference.

6. STATE GOVERNMENTS
In the case of loans to State Governments , the arrangements for payment of annual instalment of principal and interest will be as under:-

(a) Block loans for State Plan Schemes and other Plan loans for Centrally Sponsored Schemes:-
These loans when drawn in installments, will be consolidated and deemed to have been drawn
as on 1st October in each year. The maturity period of the loans sanctioned for State Plans is 20 years, repayments being made in 20 annual equal instalments together with interest on the
outstanding balance commencing from the following year, subject to consolidation under the award of Twelfth Finance Commission (TFC). However, fifty per cent of these loans will enjoy a five year initial grace period, after which repayments of these loans will be effected in 15 annual equal instalments. The amounts annually payable (by way of principal and interest) would be recovered in 10 equal monthly instalments commencing 15th June, subject to debt waiver under the award of TFC.

(b) Other Loans:-
The terms of repayment of these loans will be as laid down from time to time.

7. PUBLIC SECTOR PROJECTS

(A) For new installations or expansion of existing institutions:

(a) The terms and conditions of loans should be fixed with reference to the financial picture presented in the approved Project Report. (Once the pattern is settled, there should be no change except with the specific concurrence of this Department for reasons to be stated in writing).
(b) The capital requirements of a project should include adequate provisions for interest payment on borrowings during the period of construction (as specified in the Project Report). The interest on loans due during the period of construction will be allowed to be capitalised to the extent of the provisions made for this purpose in the approved Project Report. In other words, while interest on loans advanced to an undertaking during the period of construction will be notionally recovered by allowing its capitalisation, the payment of interest should effectively commence after the construction period is over.
(c) The repayment of principal should ordinarily commence one year after the project commences production, the number of instalments being determined with reference to the financial projections and repaying capacity specified in the Project Report. Requests for further moratorium will be considered only in exceptional cases where the Project Report has
specified any special circumstances that may necessitate a longer period of moratorium and has indicated clearly what staggering of repayment would be needed over the necessary break period. The period of loans sanctioned against capitalised interest during the period of construction may also be on the same terms and conditions as are applicable to loans provided for financing the project costs.
(d) A suitable period of moratorium subject to a maximum of five years from the date of drawal of the loans may be allowed for the repayment of instalments of principal, having regard to the
nature of the project, the stage of construction etc. The period of moratorium should not, however, extend in any case, beyond two years from the date of project going into production, or in the case of programmes of expansion, beyond two years from the date of expanded project coming into operation.

(B) For meeting working capital requirements:
The undertakings are expected to obtain their cash credit requirements from the State Bank of India/Nationalised Banks by hypothecating their current assets (such as stock of stores, raw materials, finished goods, work in progress, etc.) and where the entire working capital requirements cannot be raised in this manner by seeking a guarantee from Government. Accordingly, requests from Public Sector Undertakings for funds for meeting working capital requirements should be considered only to the extent the same cannot be had from the State Bank of India/Nationalised Banks.

8. GENERAL REPAYMENT PERIOD

(A) (i) The period for repayment of loans for all parties other than State Governments should be fixed with due regard to the purpose for which they are advanced and it should be restricted to the minimum possible. Normally, no loan shouldbe granted for a period exceeding 10 years.

Where a longer period for repayment is sought, prior concurrence of the Budget Division in this Department will be necessary for fixing the period.

(ii) The repayment of a loan should normally commence from the first anniversary date of its  drawal or on expiry of the period of moratorium, as the case may be. The recovery should ordinarily be effected in annual equal instalments of principal.

(iii) The period of repayment of working capital loans should preferably be restricted to two or three years. In no case, however, the period of these loans should exceed 5 years.

(B) Moratorium : Subject to exceptions made in respect of pubic sector projects, a suitable period of moratorium towards repayment might be agreed to in individual cases having regard to the project for which the loans are to be utilised. However, no moratorium should ordinarily be allowed in respect of interest payment on loans. Ministries/Departments may with the approval of their Financial Advisers allow moratorium on repayment of principal wherever considered necessary upto a maximum period of 2 years.

(C) (i) Repayment before due date: Any instalment paid before its due date may be taken  entirely towards the principal provided it is accompanied by payment towards interest due upto date of actual payment of instalment; if not, the amount of the instalment will first be adjusted towards the interest due for the preceding and current periods and the balance, if any, will alone be applied towards the principal. Where the payment of the instalment is in advance of the due date by 14 days or less, interest for the full period (half year or full year as the case may be) will be payable. If any State Government repays an instalment of a loan which is consolidated as on 1st October, in advance of the due date by more than 14 days the interest will be payable with reference to the actual date of repayment.

(ii) Pre-payment premium: Prepayment premium of 0.25% on the loans with residual  maturity of less than 10 years and 0.50% for the loans with residual maturity of 10 years and
above, shall be charged. The provision does not apply to the loans to State/UT Governments.
(D) Penalty Clause: The loan sanctions/agreements should invariably include a penalty clause providing for levy of a penal rate of interest in the event of default in repayment of instalment(s) of principal and/or interest. The penal rate of interest should not be less than 2.50% above the normal rate of interest at which a loan is sanctioned.

(E) Defaults in repayment/interest payment: (i) In the event of a default in repayment of loan/interest payment, the recovery of interest at penal rate may not be waived unless there are special reasons justifying a waiver. However, a decision in this regard will be taken by the Ministry of Finance (Budget Division) on the advise of Financial Adviser. Even in such cases, a minimum of 0.25% should be recovered from the defaulting party as penalty.

(ii) The penal rate of interest is chargeable on the overdue instalments of principal and/or   interest from the due date of their payment to the date preceding the date of actual payment.

(iii) Whenever a fresh loan is to be sanctioned to a borrower who has earlier defaulted, the loan sanctioning authority must consider the question of recovery of defaulted dues. All releases to Public Sector Undertakings against budgeted outlays should be made only after adjusting the defaults, if any, pertaining to repayment of loans and interest. If for special and exceptional reasons such adjustments are not possible, specific orders of Secretary (Expenditure) should be obtained through Budget Division, before release of fresh loans, in relaxation of extant orders, in conformity with this Division circular No.F.2 (190)-B(SD)/91, dated 15.10.1991.

However, no request for waiver/postponement of instalments on any ground whatsoever will be accepted,except in cases of companies referred to BIFR or in respect of those companies which have incurred cash losses for last three years, in conformity with this Division circular
No.F.2(165)-B(SD)/94, dated 06.10.1994.

(F) Requests for modification of terms of loans: (i) Borrowers are required to adhere strictly to the terms settled for loans made to them and modifications of these terms in their favour can be made subsequently only for very special reasons. Requests for modification of terms may relate to increase in the period of a loan or of initial moratorium period towards repayment, or waiver of penal interest or reduction in or waiver of normal rate of interest. The procedure of dealing with requests for waiver of penal interest has already been dealt with in paragraph 8. Cases involving other modifications in repayment terms should be considered in consultation with the Budget Division in this Ministry.
In referring such cases, the impact of the modifications on the estimates of repayment/interest which have gone into the Budget and Government’s resources position should be succinctly brought out by the administrative Ministry.

(ii) In examining proposals for modification of the period of the loan, the interest rate at which the loan was sanctioned should also be reviewed. In the case of a loan of which repayment has already commenced the revised rate of interest should be applied ab initio only to the residuary portion of the loan outstanding on the date of extension of its period.

(iii) Requests for waiver of recovery of normal interest (either) or a specified period or for the entire period) on a loan which originally sanctioned at normal rate of interest,will attract the provisions of Rule 223 (1) of G.F.R. 2005 and should be dealt with accordingly.

(G) Loans sanctioned at concessional rates:

(i) In cases where loans are to be sanctioned at a concessional rate, the instructions contained in Rule 223 (1) of G.F.R. 2005 have to be observed. In such cases, payment of subsidy (to cover the concession viz. difference between normal rate and concessional rate) should be made conditional upon prompt repayment of principal and payment of interest thereon by the borrower.

(ii) In cases where loans are sanctioned interest free (e.g. loans to technical educational institutions for construction of hostels) prompt repayment should be made a condition for the grant of interest free loans. That is to say, the sanction letter in such cases should provide that in the event of any default in repayment, interest at rates prescribed by Government from time to time will be chargeable on the loans.


(iii) Similarly, in the case of interest free loans to departmental canteens where subsidy is also provided to meet running expenses, the sanction letter should stipulate that in the event
of any default in repayment, the defaulted dues would be recovered out of the subsidy payable.

(H) Miscellaneous: A standard form prescribed for issue of loan sanctions (Appendix-I) should ordinarily be followed.

(i) The date of drawal of a loan by the borrower will be date on which he received cash, cheque or bank draft from the Drawing and Disbursing Officer. It should be ensured that the time lag between the date of obtaining the cash/cheque/ bank draft and its disbursement/delivery  despatch to the payee is reduced to the minimum. Where the cheque or bank draft is sent through post, the date of posting should be treated as the date of disbursement of the loan. The Drawing and Disbursing Officer should invariably intimate the date of  payment to his Accounts Office to enable the latter to make a suitable note in his records.

(ii) In the case of loans sanctioned to parties other than State and Union Territory and Foreign Governments and Government Servants, the borrower should tender the amounts due on or before the due date, at the New Delhi Office/Main Office of the public sector bank accredited to the Ministry/ Department which sanctions the loan, in cash or by cheque or draft drawn on any scheduled bank in Delhi/New Delhi in favour of the said PSB Branch. The payment should be accompanied by a memorandum or challan in duplicate indicating (a) name of the loan sanctioning Ministry/Department; (b) No. and date of the loan sanction letter and the loan amount sanctioned;
(c) amount due for payment separately for interest and principal and the head(s) of account to which the dues are to be credited in the Government Accounts; and (d) due date of payment. The borrower should be asked to tender separate cheques/drafts and challans for payment of principal and interest.Outstation loanees are required to arrange the dues through their bank ensuring that the memorandum/challan and the cheque/draft reaches the aforesaid PSB Branch in New Delhi by the due date.

(iii) Ministries/Departments are required to keep close watch on timely repayments of loans  advanced by them and recovery of interest thereon. Rule 220 (1) (viii) of G.F.R. 2005 provides for a notice to be given to the borrowers a month in advance of the due date of payment of  instalment of the principal and/or interest thereon. Such notices may be sent in the form given in Appendix II. The borrower should not however be given any advantage in the event of non-receipt of such a notice. Repayments/interest payments due from the loanees should also be reviewed at least quarterly, and where any  default has occurred, a fresh notice should be served on the borrower to arrange payment with penal/higher rate of interest in the form set out in Appendix III.

(iv) Individual cases relating to terms and conditions of loans need not be referred to the  Department of Economic Affairs (Budget Division) unless it is proposed to deviate from those laid down in this Office Memorandum.
(Peeyush Kumar)
Director (Budget)
Tel. No. 23092744
Source: finmin
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EXPENDITURE ON PAY AND ALLOWANCES OF THE EMPLOYEES OF M/O RAILWAYS DURING THE LAST THREE YEARS (2009-2012)

EXPENDITURE ON PAY AND ALLOWANCES OF THE EMPLOYEES OF M/O RAILWAYS DURING THE LAST THREE YEARS (2009-2012)

(Rs in Crores)
Sl. No. Pay/Allowances 2009-2010 2010-2011 2011-2012
1 2 3 4 5
1 Pay of Gazetted Officers 876.42 805.89 766.39
2 Pay of Non-Gazetted Staff 23079.79 18289.38 17737.22
3 Dearness Allowance 4660.73 7829.07 9969.56

Sub-Total (i) 28616.94 26924.34 28473.17
1 House Rent Allowance 2024.94 2196.06 2096.92
2 Overtime Allowance 406.10 633.49 641.19
3 Transport Allowance 1314.84 1701.00 1752.03
4 Special Pay and Deput.(Duty) Allowance 19.53 19.80 18.40
5 Composite Hill Compensatory Allowance 3.77 0.07 0.14
6 Children Education Allowance 157.84 303.98 377.32
7 Reimbursement of Medical Charges 21.98 29.32 30.62
8 Leave Travel Concession # 45.62 49.34 68.47
9 Other Compensatory Allowances 2001.62 1723.01 1638.82

Sub – Total ( ii ) 5996.24 6656.07 6623.91

Grand Total ( i ) + ( ii ) 34613.18 33580.41 35097.08

Travelling Allowance 1022.70 1050.01 1250.29
# The Employees of Railways get free passes.
 
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