7th CPC - Project Allowance In The Committee Report

7th Pay Commission | Committee Report | Project Allowance

Project Allowance (Para 8.10.40, 8.10.75)

Existing Provisions: 

This allowance is granted to Central Government employees to compensate for lack of amenities like schools, markets, proper housing and medical facilities at the place of construction of major projects. This is mainly paid to Railway employees whose offices are in project area and who have to reside within a nearby locality. The present rates are:

Recommendations of 7th CPC: The 7th CPC has recommended that this allowance may be paid as per Cell R3H2 of the newly proposed Risk and Hardship Matrix @Rs.3400/- per month for level 9 and above andRs.2700/- per month upto level 8.

Demand:

Department of Atomic Energy: Prior to 1974, Project Allowance was paid to DAE employees working at project sites located in remote areas. After 1974, amenities were provided at the project sites, so Project Allowance was withdrawn. However, Project Concession in the form of Free Electricity (with limits), transportation of school children at minimal charges, and concessional charges for school excursions is granted. Therefore, Project Allowance / Project Concession as per cell R3H2 of Risk & Hardship Matrix to the projects at various places may  be granted as there are ongoing projects of the DAE at Vizag, Chitradurg etc. and all projects are at isolated places and facilities are not available.

Analysis and Recommendations of the Committee:

As informed by the DAE, Project Allowance has been withdrawn after 1974. Project Concession is being provided to the officials of the DAE to alleviate the hardships caused and a decision on its continuation may be taken as recommended by the 7th CPC. The recommendations of the 7th CPC on Project Allowance may be accepted without any change.

Source : doe.gov.in

7th CPC - Qualification Allowance In The Report Of The Committee

7th Pay Commission | Committee Report | Qualification Allowance 

Qualification Allowance (Para 8.9.25)

Existing Provisions: Granted to personnel of Indian Air Force for obtaining flying qualifications as under:

Category Rate	(in Rs.)
Master Aviation Instructor	750
Senior Aviation Instructor Cl-I	600
Senior Aviation Instructor Cl-II	420
Aviators holding Master Green Card	600
Aviators holding Green Card	420
Cat „A‟ ATC/FC /HELO Controllers/Direction officers	2400
Cat „B‟ ATC/FC /HELO Controllers/Direction officers	1800

Recommendations of 7th CPC: The 7th CPC has recommended that this allowance to be revised by a factor of 1.5. The amount will further rise by 25 percent each time DA rises by 50 percent. The allowance should be extended to personnel of Indian Coast Guard also.

Demand:

Defence Forces: Qualification Allowance (wrongly mentioned as Qualification Pay) be granted to all categories through conduct of skill based and knowledge based special examinations conducted annually.

Analysis and Recommendations of the Committee:

The Committee notes that the 7th CPC has already enhanced the rates of Qualification Allowance by a factor of 1.5. It is further observed that Technical Allowance is also granted for acquiring certain qualifications in Defence Forces. The demand for adding additional categories is outside the purview of this Committee. MoD has also not made any recommendations in this regard. Therefore, the recommendations of the 7th CPC on Qualification Allowance may be accepted without any change.

Source : doe.gov.in

7th CPC - Sea Going Allowance In The Report Of The Committee

7th Central Pay Commission Report of the Committee | Sea Going Allowance

Sea Going Allowance (Para 8.10.44, 8.10.72)

Existing Provisions: This allowance is granted to officers and PBORs of the Indian Navy to compensate them for the hardships of sea travel. This allowance is granted on pro rata basis, with the condition that the sea vessels should be deployed for a minimum of 12 hours a day. The extant rates are:

Recommendations of 7th CPC: The 7th CPC has recommended that this allowance may be paid as per Cell R2H2 of the newly proposed Risk and Hardship Matrix @ ₹10,500/- pm for level 9 and above and @ ₹6,000/- pm upto level 8. The 7th CPC has also recommended that taking into account the fact that there is a length of time taken in preparation of sea – vessel sailing out, therefore, the 12 hour conditionality should be reduced to 4 hours for this allowance.

Demand:

Defence Forces: Sea Going Allowance is paid for 4 hours in a day in spite of the personnel on board for 24 hours, therefore, it has been demanded that it should be granted to all personnel on board without any conditionality.

Analysis and Recommendations of the Committee:

The Committee notes that the 7 th CPC, in its report in Para 8.10.72 has recommended that 12 hours conditionality should be reduced to 4 hours for Sea Going Allowance. MoD has also not made any recommendations in this regard. In view of the relaxation already extended by the 7 th CPC, the recommendations of the 7th CPC on Sea Going Allowance may be accepted without any change.

Source : doe.gov.in

RBE No-144/2017 - Revised Rates Of Stipend To Special Class Railway Apprentices

Revised rates of stipend to Special Class Railway Apprentices

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

(Railway Board)

S.No. PC-VII/ 66
No. PC-V/2017/PS/1 (SCRA)

RBE No. 144/2017

New Delhi, dated 06.10.2017

The General Manager
All Indian Railways & PUs
(As per mailing list)

Sub: Revised rates of stipend to Special Class Railway Apprentices

Ref: Railway Board’s letter No.PC-V/2008/PS/2(SCRA) dated 25.11.2008

Consequent upon the promulgation of Railway Services (Revised Pay) Rules, 2016 on the basis of the recommendations of the Seventh Central Pay Commission, the issue of revision of the rates of stipend to Special Class Railway Apprentices has been under consideration. The President is pleased to decide the following revised rates of stipend ofr SCRAs:-

Year	Existing rate of stipend (Rs.)	Amount of fixation (2.57 times of stipend) (Rs.)	Increment @ 3% of previous rate of stipend at col. (5) (Rs.)	Proposed rate of stipend (Rounded off to next hundred) (Rs.)
(1)	(2)	(3)	(4)	(5)
1st year	9100	23387		23400
2nd year	9100			23400
3rd year	9400		702	24200
4th year (first six months)	9400			24200
4th year (last six months)	9700		726	25000

2. These order will take effect from 01.8.2016.

3. The apprentices will draw the revised rates of Dearness Allowance appropriate to the revised rates of stipend.

4. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

5. Hindi version is enclosed.

sd/-

(N.P. Singh)

Dy. Director/ Pay Commission-V

Railway Board

Source: AIRF

Army Organised Youth Fest at Kishtwar

Army Organised Youth Fest at Kishtwar

Army organised a mega event Youth Fest : 2017 on 13 Nov 2017 at the historic Chowgan ground of Kishtwar.

The Fest was an amalgamation of varied programmes highlighting the rich culture of different regions of India and stalls of food, entertainment and games for people of all the age groups to rejoice & cherish. The event also encompassed display of various ethnic specialities from across the country.

Students from various schools of Kishtwar district & professional artists from other parts of the country participated in the event to showcase their talent and performed folk dances of Rajasthani, Punjabi & Kashmiri culture. Kalbeliya, Gatka, Bhangra and an electrifying performance by the rock band were the highlights of the day. Stalls manifesting the talent of ITI and paintings, clay models were praiseworthy and the preponderant performance of the local youth of Kishtwar was highly commendable. Over 8000 people from all sections of society witnessed the event.

The event was graced by officials of Army, civil administration, Police, CAPF and other civil dignitaries. The youth & spectators quoted that the fest was an enlightening & enriching experience that has surely changed their perspective towards contributing to a peaceful & harmonious tomorrow.

Speaking on the occasion, the GOC, Delta Force expressed his gratitude to civil administration & local populace for their whole hearted support and enthusiastic participation in making the event a grand success. He emphasized that close coordination between civil administration and Army will take Chenab Valley towards meaningful progressive growth. The overwhelming response of youth in such events will send the message of peace & unity in the region, he added.

Col Aman Anand

PRO (Army)

Source: PIB News

Consumer Price Index Numbers On Base 2012=100 For Rural And Urban

Consumer Price Index Numbers on Base 2012=100 for Rural, Urban and Combined for the month of October 2017

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI) from 2010=100 to 2012=100 with effect from the release of indices for the month of January 2015.

2. In this press note, the CPI (Rural, Urban, Combined) on Base 2012=100 is being released for the month of October 2017. In addition to this, Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined are also being released for October 2017. All India Inflation rates (on point to point basis i.e. current month over same month of last year, i.e., October 2017 over October 2016), based on General Indices and CFPIs are given as follows:

All India Inflation rates (%) based on CPI (General) and CFPI

Note: Figures of October 2017 are provisional.

4. Provisional indices for the month of October 2017 and also the final indices for September 2017 are being released with this note for all-India and for State/UTs. All-India provisional General (all-groups), Group and Sub-group level CPI and CFPI numbers for October 2017 for Rural, Urban and Combined are given in Annexure I. The inflation rates of important categories of items are given in Annexure II. State/UT wise provisional General CPI numbers for Rural, Urban and Combined are given in Annexure III. Inflation rates of major States, having population more than 50 lakhs as per population Census 2011, are given in Annexure IV. State/UT–wise Group CPIs are available on the Ministry’s website (www.mospi.gov.in).

5. Price data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals, maintained by the National Informatics Centre.

Next date of release: 12th December 2017 (Tuesday) for November 2017.

Press Release

Authority: http://www.mospi.gov.in/

Railway Board - Provision Of Seats For TTEs/Conductors

Provision of seats for TTEs/Conductors – Railway Board Issued Orders on 2.11.2017

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

(RAILWAY BOARD)

No. 2003/TG-I/20/P/2

New Delhi, Dated: 02.11.2017

The Principal Chief Commercial Managers,

All Zonal Railways

(COMMERCIAL CIRCULAR NO. 72 OF 2017)

Sub: Provision of seats for TTEs/Conductors.

Please refer to this office letter No. 2001-TG-I/13/P dated 03.10.2002 wherein instructions have been issued regarding earmarking of accommodation for TTE/Conductors in Mail/Express trains, Rajdjani Express trains, Shatabdi Express trains, day journey trains and Jan-Shatabdi Express trains. The matter has been further reviewed keeping in view the trains which have been introduced subsequently e,g, Duronto, Humsafar, Suvidha Special trains etc. Moreover, the capacity of 3AC conventional coaches is 64 berths whereas that of LHB 3AC coaches is 72 berths and that of 3E coaches is 78 berths & hence 3E coaches should be considered at par with 3AC coaches. Accordingly, it has been decided to earmark the following accommodation for onboard Ticket Checking Staff & RPF/GRP:-

a. Mail/Express trains with sleeping accommodation and leg-wise manning (Covering normal Mail/Express trains, Mahamana etc.)

(i) Berth No. 5 in A-1 Coach only for Conductor manning 1st AC/ AC 2 tier/First Class coaches.

(ii) Berth No. 7 in B-1/ BE-1 Coach only for TTE manning AC3 tier/3E coaches.

(iii) Berth No. 7 in alternate sleeper class coaches for TTEs manning Sleeper Class coaches.

b. Mail/Express trains with sleeping accommodation and end to end manning (covering Rajdhani/Shatabdi/Duronto type trains)

(i) Berth No. 5 in A-1 Coach for TS manning 1st AC and 2nd AC coaches.

(ii) Berth No. 7 in B-1, B-3, B-5, & B-7 coaches of Dy. TS manning AC-2/3-tier coaches. In case of 3E, similar arrangements should be made in BE-1, BE-4 and BE-7 or G-1, G-3, G-5 & G-7 coaches in case of Garib Rath type trains.

c. Mail/Express trains with sitting accommodation and end to end manning. (Shatabdi type trains)

(i) Seat No.1 in Coach No. C-1, C-3, C-5 & C-7 coaches for TS/Dy. TS.

(ii) Trains superintendent will occupy the seat in the coach adjacent to the executive class coach.

d. Mail/Express trains having sitting accommodation and leg-wise manning (Inter-city type trains)

(i) Seat No.1 in every alternate second class coach for ticket checking staff manning these coaches.

(ii) Seat No.1 in alternate Chair Car coach.

(iii) In case composite coach with sitting and sleeping accommodation is attahced, seat no.1 in the sitting portion of the composite coach should be earmarked, for the ticket checking staff.

e. Accommodation for RPF/GRP: One side lower berth (berth no. 63 in coach S1) may be earmarked in sleeper class coach in the entire train in which this staff is travelling. To make it clearer, if the train is being escorted by GRP, one berth will be earmarked for GRP and in case the train is escorted by RPF, one berth in sleeper class will be earmarked for RPF. In case no RPF/GRP is escorting the train, no accommodation will be earmarked for them.

2. The number of berths/seats to be earmarked in a train for onboard ticket checking staff will be keeping in view the composition of the train. In case the number of staff manning a train on regular basis (working as per roster) is less, the number of berths/seats to be earmarked for onboard ticket checking staff can be reduced and the same can be reviewed also subsequently based on manning on regular basis (working as per roster) subject to maximum yardstick indicated above. In the train also the number of berths/seats to be utilized by the onboard ticket checking staff will be equal to the number of staff and the berths/seats in excess will be released to RAC or other passengers.

sd/-

(Vikram Singh)

Director Passenger Marketing

Railway Board

Order Copy

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

GST New Rates From Council Meeting

The GST council meeting trimmed the list of items in the top 28 per cent GST bracket to just 50 from current 228. Only luxury and sins goods are now in highest tax bracket.

GST council meeting, GST new rates, tax reduced, arun Jaitley, 18 per cent GST, restaurants cheaper, india news, indian express

GST Council meeting: Union Finance Minister Arun Jaitley along with MoS for Finance Shiv Pratap Shukla and Finance Secretary Hasmukh Adhia (L) at the 23rd GST Council Meeting, in Guwahati on Friday. PTI Photo

Offering a huge relief to consumers and businesses, the Goods and Services Tax (GST) Council on Friday slashed tax rates on as many as 177 items of daily consumption to 18 per cent from the top tax bracket of 28 per cent. In the process, the council trimmed the list of items in the top 28 per cent GST bracket to just 50 from current 228. Only luxury and sins goods are now in highest tax bracket.

Addressing a brief presser, Union Finance Minister Arun Jaitley said a uniform 5 per cent GST will be charged on food bill in both air-conditioned and non-AC. At present, 12 per cent GST on food bill is levied in non-AC restaurants while 18 per cent in air-conditioned ones. However, restaurants in starred-hotels that charge Rs 7,500 or more per day room tariff will be levied 18 per cent GST but input tax credit is allowed for them

Chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing power, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress are among the products on which tax rate has been reduced from 28 per cent to 18 per cent.

Wire and cables, furniture, mattress, trunk, suitcase, detergents, shampoos, hair cream, hair dyes, make up, fans, lamp, rubber tubes and microscope are some other items on which tax rate has been cut from 28 per cent to 18 per cent.

A look at the of items in which tax rates have been trimmed to 18 per cent:

• Chewing gum / bubble gum and white chocolate, not containing cocoa

• Cocoa butter, fat and oil

• Cocoa powder, not containing added sugar or sweetening matter

• Chocolates and other food preparations containing cocoa

• Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of heading 0401 to 0404, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis not elsewhere specified or included [other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers’ wares of heading.

• Waffles and wafers coated with chocolate or containing chocolate

• Food preparations not elsewhere specified or included i.e. Protein concentrates and textured protein substances, Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup, Compound preparations for making non-alcoholic beverages, Food flavouring material, Churna for pan, Custard powder

• Other non-alcoholic beverages

• All goods [including aerated waters], containing added sugar or other sweetening matter or flavoured

• Marble and travertine, other than blocks

• Granite, other than blocks

• Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers

• Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter

• Paints and varnishes(including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium

• Other paints and varnishes (including enamels, lacquers and distempers); prepared water pigments of a kind used for finishing leather

• Artists’, students’ or signboard painters’ colours, modifying tints, amusement colours and the like, in tablets, tubes, jars, bottles, pans or in similar forms or packings

• All goods, i.e. preparations for use on the hair such as Shampoos; Preparations for permanent waived or straightening; Hair lacquers; Brilliantines (spirituous); Hair cream, Hair dyes (natural, herbal or synthetic) [other than Hair oil]

• Preparations for oral or dental hygiene, including and powders; yarn used to clean between the teeth (dental floss), in individual retail packages [other thandentifrices in powder or paste from (tooth powder or toothpaste)]

• Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties; such as Pre-shave, shaving or after-shave Preparations, Shaving cream, Personal deodorants and antiperspirants

• Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap; paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent

• Organic surface-active agents (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading.

• Lubricating preparations(including cutting-oil preparations, bolt or nut release preparations, antirust or anti-corrosion preparations and mould release preparations, based on lubricants) and preparations of a kind used for the oil or grease treatment of textile materials, leather, furskins or other materials, but excluding preparations containing, as basic constituents, 70% or more by weight of petroleum oils or of oils obtained from bituminous minerals

• Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal, scouring pastes and powders and similar preparations (whether or not in the form of paper, wadding, felt, nonwovens, cellular plastics or cellular rubber, impregnated, coated or covered with such preparations), excluding waxes of heading

• Modelling pastes, including those put up for children’s amusement

• Preparations and charges for fire-extinguishers; charged fire-extinguishing grenades

• Hydraulic brake fluids and other prepared liquids for hydraulic transmission, not containing or containing less than 70% by weight of petroleum oils or oils obtained from bituminous minerals

• Anti-freezing preparations and prepared de-icing fluids

• Floor coverings of plastics, whether or not self-adhesive, in rolls or in form of tiles; wall or ceiling coverings of plastics

• Other articles of plastics and articles of other materials of headings [other than bangles of plastic, PVC Belt Conveyor, plastic beads and plastic tarpaulins]

• New pneumatic tyres, of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyres]

• Retreaded or used tyres and flaps

• Inner tubes of rubber [other than of a kind used on/in bicycles, cyclerickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyre tubes]

• Other articles of vulcanised rubber other than hard rubber (other than erasers)Hard rubber (for example ebonite) in all forms, including waste and scrap; articles of hard rubber

• Trunks, suit-cases, vanitycases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travellingbags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, mapcases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottlecases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper [other than School satchels and bags other than of leather or composition leather, Toilet cases, Hand bags and shopping bags, of artificial plastic material, of cotton, or of jute, Vanity bags,

• Handbags of other materials excluding wicker work or basket work.

• Articles of apparel and clothing accessories, of leather or of composition leather

• Articles of gut (other than silk-worm gut), of goldbeater’s skin, of bladders or of tendons

• Particle board, Oriented Strand Board (OSB) and similar board (for example, wafer board) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances, other than specified boards

• Fibre board of wood or other ligneous materials, whether or not bonded with resins or other organic substances, other than specified boards

• Plywood, veneered panels and similar laminated wood

• Densified wood, in blocks, plates, strips, or profile shapes

• Wooden frames for paintings, photographs, mirrors or similar objects

• Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes

• Wood paving blocks, articles of densified wood not elsewhere included or specified, Parts of domestic decorative articles used as tableware and kitchenware

• Wall paper and similar wall coverings; window transparencies of paper

• Artificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit

• Wool or other animal hair or other textile materials, prepared for use in making wigs or the like

• Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate); of marble, travertine and alabaster,

• of Granite, of Other calcareous stone

• Worked slate and articles of slate or of agglomerated slate

• Panels, boards, tiles, blocks and similar articles of vegetable fibre, of straw or of shavings, chips, particles, sawdust or other waste, of wood, agglomerated with cement, plaster or other mineral binders

• Articles of plaster or of compositions based on plaster; such as Boards, sheets, panels, tiles and similar articles, not ornamented

• Articles of cement, of concrete or of artificial stone, whether or not reinforced; such as Tiles, flagstones, bricks and similar articles, Building blocks and bricks, Cement bricks, Prefabricated structural components for Building or civil engineering,

Eligibility Criteria For House Building Advance

Eligibility Criteria for House Building Advance

Eligibility Criteria for Government Employees to avail HBA is provided in the House Building Advance Rules 2017 issued by Ministry of Housing & Urban Affairs vide its OM No.I.17011/11(4)/2016-H-III Dated 09-11-2017

Eligibility

i. All permanent government employees.

ii. All other employees with at least 5 years of Continuous Service, provided they do not hold permanent appointment under a State Government and the sanctioning authority is satisfied about their likely retention in service till the house is built and mortgaged.

iii. Members of All India Services deputed for service under the Central Government/Company/ Association/Body of individuals whether incorporated or not, which is wholly or substantially Owned or controlled by the Central Government or an International Organization, and autonomous body not controlled by Government or Private Body.

iv. Employees of Union Territories and North-East Frontier Agency.

v. Staff Artistes of the All India Radio who fulfil the condition prescribed at (ii) above and have been appointed in long term Contracts extending to the age as per extant rules.

vi. Central government employees governed by The Payment of Wages Act, 1936. Central government employees on deputation to another Department or on Foreign Service. Such cases to be processed by the Head of the Office of the Parent Department.

vii. Extant rules for eligibility conditions of Ex-Servicemen and of Central government employees under suspension remains unchanged.

Note: In cases where both the spouses are central government employees and are both eligible for grant of House Building Advance, the advance will be admissible to both of them jointly/separately.

Maximum Amount Of Advance Of HBA And Repaying Calculation

Maximum Amount Of Advance Of HBA And Repaying Calculation

Amount of Advance

1. Only one advance shall be sanctioned to the government servant during his/ her entire service.

2. The maximum amount of advance shall be:

a) 34 months basic pay subject to a maximum of Rs. 25.00 lakhs only (Rs. Twenty-five lakhs), or cost of the house/flat, or the amount according to repaying Capacity, whichever is the least for construction/purchase of new house/flat.

b) For expansion of existing house, the amount of HBA will be limited to 34 months basic pay subject to maximum of Rs.10.00 lakhs only (RS. Ten lakhs), or the Cost of the expansion, or the amount according to repaying capacity, whichever is the least.

c) The amount of the advance shall be restricted to 80% of true Cost of the land and construction of house or cost of expansion of living accommodation in the case of Construction in rural areas. This can be relaxed and 100% can be Sanctioned if the Head of the Department certifies that the concerned rural area falls within the periphery of town or city.

6. Repayment Capacity

For the purpose of Calculating the admissible loan amount, the repayment capacity of the Central government employee shall be calculated as below:

HBA Repaying Capacity Calculation

Rate Of Interest On House Building Advance For 2017-2018

Applicable Rate of Interest and Methodology of Recovery of House Building Advance

I. The Interest on Housing Building Advance for the financial year 2017-18 onwards shall be 8.50%. This shall be reviewed every three years to be notified in Consultation with Ministry of Finance.

II. The methodology of recovery of HBA shall Continue as per the existing pattern of recovery of principal first in the first fifteen years in not more than 180 monthly instalments and interest thereafter in next five years in not more than 60 monthly instalments. The advance carries simple interest from the date of payment of first instalment.

III. All cases of subsequent tranches/installments of HBA being taken by the employee in different financial years shall be governed by the applicable rate of interest in the year in which the HBA was sanctioned, in the event of change in the rate of interest.

Note: The clause of adding a higher rate of interest at 2.5% (two-point five percent) above the prescribed rate during sanction of House Building Advance, as reproduced below, stands withdrawn.

“Sanction should stipulate the interest 2.5% over and above the Scheduled Rates With the stipulation that if conditions attached to the sanction including those relating to the recovery of amount are fulfilled Completely to the Satisfaction of Competent authority, a rebate of interest of the extent of 2.5% Will be allowed”