AP Government hikes DA of its employees and pensioners

Andhra Pradesh Government employees and pensioners will get a 6 per cent hike in their dearness allowance (DA) with effect from January this year.

The state Cabinet, that met here this evening after a gap of about three months under the chairmanship of Chief Minister N Kiran Kumar Reddy, approved enhancement of DA from 35.9 per cent to 41.94 per cent.

This would result in an additional financial burden of Rs 1,485 crore on the Government, Information Minister D K Aruna said.

Briefing newspersons about the Cabinet decisions, she said the DA hike would benefit 10 lakh employees and 5.5 lakh pensioners in the state.

The Cabinet also approved the new Electronic Hardware Policy, the first-of-its-kind launched by a state, to give a thrust to the Information Technology sector.

The new Excise Policy, under which the system of auction for allotment of retail liquor shops was done away with and the fixed license system re-introduced, also got the Government nod.

The Cabinet, however, deferred a decision on the much-delayed new Land Allotment Policy. "That will be taken up at the next meet of the Cabinet," Aruna said.

Meanwhile, the Cabinet gave its go-ahead to AP Mineral Development Corporation to terminate the controversial 'supply agreement' it entered into with Rakshana Steels for sale of iron ore in Khammam district.

Rakshana Steels is allegedly owned by the kin of late Chief Minister Y S Rajasekhara Reddy but they flatly denied any involvement in the company.