RBE No. 257/1987: Project Allowance
No.E(G)87 AL 12-4, dated 16.10.1987
Sub: Construction Projects – Grant of Project Allowance – General Principles.
1. Reference Railway Ministry’s circular letter No.E(G)73 AL12-27, dated 27.11.1978 with which a copy of Ministry of Finance’s OM No.20011/5/73-EIV(B), dated 17.01.1975 was circulated to the Railway Administrations, etc. with the instructions that proposals for the grant of Project Allowance to such Railway staff as comes within the scope of the orders of the Ministry of Finance should be specifically examined in the light of the Ministry of Finance’s instructions aforementioned and forwarded to this Ministry for consideration.
2. In partial modification of the earlier instructions, a copy of the Ministry of Finance (Department of Expenditure’s) OM No.20011/1/87-E.II(B), dated 28.07.1987 is sent herewith for information and guidance please.
3. These orders take effect from 01.10.1986 and issue with the concurrence of the Finance Directorate of the Ministry of Railways.
Ministry of Finance,
Department of Expenditure
No.20011/1/87-E.II(B), dated 28th July, 1987
OFFICE MEMORANDUM
Sub: Construction Project – Grant of Project Allowance – General Principles.
1. The undersigned is directed to refer to Para 1(viii) of this Ministry’s OM No.20011/5/73-E.IV(B), dated 17.01.1975 on the subject noted above and to say that para 1(viii) read as under:-
“If the project is located at a place where Compensatory City Allowance and/or House Rent Allowance or any other Special Compensatory Allowance are admissible, no Project Allowance will be admissible. Where, however, the project is situated in the proximity of such a place, a Project Allowance may be sanctioned if justified, but the ceiling for the Project Allowance for such cases would be limited to 50% of the ceiling mentioned below. In such a case, the individuals will have an option to draw either the Project Allowance or CCA/ HRA, as may be admissible. In cases where rent free accommodation or HRA in lieu is given to an employee, as a condition of service or as a project concession, the Project Allowance will be reduced by 25%.”
2. Consequent upon the decision taken by the Government on the recommendations of the 4th Pay Commission for Central Government employees the rates of HRA and Project Allowance have been revised. Besides, A, B-1, B-2 and ‘C’ class cities, HRA is also now admissible at unclassified places in terms of para 1(viii) of the OM referred to above no Project Allowance would be admissible if the project is located at a place where compensatory (city) allowance and/or house rent allowance or any other special compensatory allowance are admissible. As the rates of project allowance are more than the rates of HRA at unclassified places, there would be a reduction of sizeable amount from the emoluments of the employees who were entitled to project allowance in project areas.
3. In order to ensure that there is no reduction in the emoluments of the employees who are entitled to project Allowance, the President is pleased to decide that the project allowance will continue to be paid to such employees at revised rates even in unclassified places. But, they will not be entitled to any Compensatory (City) Allowance and/or House Rent Allowance or any other special compensatory allowance. As regards A, B-1, B-2 and ‘C’ class cities (whether classified by general or special orders) are concerned, the instructions contained in para 1(viii) of the OM dated 17.01.1975, mentioned above, would continue to apply.
4. These orders take effect from 01.10.1986.
In their application to the person serving in the Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.
Download Railway Board Circular RBE No. 257/1987
Forward reference ⇒ RBE No.