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 @₹3400/- per month for level 9 and above and ₹2700/- per month upto level 8.
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 After 1974, amenities were provided at the project sites, so Project Allowance was withdrawn.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As informed by the DAE, Project Allowance has been withdrawn after 1974.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