Interview Times 
BHUBANESWAR: The Odisha government has sanctioned a 4% increase in dearness allowance (DA) for employees of State Public Sector Undertakings (PSUs) drawing pay in the Revised Scale of Pay, 2017. This increase, which raises DA from 46% to 50%, will take effect from January 1, 2024.
The Public Enterprises Department of the Odisha Government issued an official memorandum on Wednesday, outlining the conditions under which the additional DA will be sanctioned. According to the memorandum, the increase will apply only to PSUs that meet specific financial and governance criteria, ensuring that only profit-making entities and those with sound fiscal management will be eligible for the enhanced DA.
Key conditions for receiving the additional 4% DA include:
– Completion of statutory audits up to FY 2023-24.
– No default on loan repayments to banks, financial institutions, or the state government.
– No default on statutory dues such as Provident Fund and ESI payments for employees.
– Independence from budgetary grants or subsidies for covering administrative or establishment expenses.
– Adequate internal resources to cover the financial burden of the increased DA without requiring government assistance.
– A signed Memorandum of Understanding (MOU) with the respective Administrative Department for FY 2024-25.
– Appointment of Independent Directors on the board, as per the Corporate Governance Manual.
Additionally, only profit-making PSUs will be allowed to release the DA increase, ensuring the financial health of these enterprises. Administrative departments must also ensure that the additional financial burden of the DA hike is met solely by the respective PSU’s own resources without reliance on the government exchequer.
Eligible PSUs that meet these conditions and are categorized under the state’s Categorization Framework are required to submit their proposals, with Board of Directors’ approval, to their respective Administrative Departments. PSUs outside the framework but meeting the criteria may also submit proposals for consideration through their Administrative Departments.
This move is expected to benefit employees working in well-performing PSUs, while encouraging fiscal discipline and sound management practices within state enterprises.
