Decision to increase dearness allowance and dearness relief payable to government servants and pensioners/family pensioners of the state government

Chief Minister Dr. Mohan Yadav chaired the Cabinet meeting held at the Secretariat on Tuesday. The Cabinet took the decision was taken to increase the rates of dearness allowance and dearness relief for state government employees and pensioners/family pensioners. This move aims to provide financial relief to government personnel and retirees. The total financial impact on the state government, including arrears, is estimated at ₹3,500 crore.

In the meeting it was decided to increase the dearness allowance for state government employees receiving the Seventh Pay Commission scale by 3 percent from July 1, 2024, raising it to a total of 53 percent, and by an additional 2 percent from January 1, 2025, bringing the total to 55 percent. The Finance Department has also been authorized to revise the dearness allowance on a proportionate basis for employees under the Sixth Pay Commission, as well as those working under the Fifth and Fourth Pay Commissions on deputation from Corporations, Boards, and Undertakings to the state government.

The arrears amount from 1 July 2024 to 30 April 2025 will be paid in five installments from June 2025 to October 2025. The first installment payment will be made in June 2025, the second installment payment will be made in July 2025, the third installment payment will be made in August 2025, the fourth installment payment will be made in September 2025 and the fifth installment payment will be made in October 2025.It was decided to make lump sum payment of arrears to the retired/deceased government servants/nominated member in respect of the retired/deceased government servants during the period from 1st January, 2024 to 30th September, 2024. It was decided to give consent to the letter of Chhattisgarh Government dated 12th March, 2025, approving 53 percent pension relief under the 7th Pay Commission and 246 percent pension relief under the 6th Pay Commission to the pensioners/family pensioners of the State Government from 1st March, 2025.

Approval for setting up 2000 MW solar park and 1000 MW composite energy storage project in the state

The Cabinet has approved the establishment of a 2000 MW solar park along with a 1000 MW composite energy storage project in Madhya Pradesh. This initiative aims to supply electricity on a complementary basis to both Madhya Pradesh and Uttar Pradesh, as the peak demand periods of the two states occur at different times of the year. Under this arrangement, the project will provide power to each state for six months annually, ensuring efficient utilization of resources and enhanced energy security for both regions.

In Madhya Pradesh, the agricultural sector accounts for approximately 41% of the state’s total electricity consumption. Due to the climatic conditions, electricity demand for agriculture peaks between October and March, primarily for Rabi crop cultivation. To optimize efficiency, renewable energy generation projects should be aligned with the sector’s seasonal electricity needs.Notably, the agricultural electricity demand patterns of Madhya Pradesh and Uttar Pradesh are complementary. While Uttar Pradesh experiences higher demand during the Kharif season, Madhya Pradesh sees lower consumption. Conversely, during the Rabi season—when Madhya Pradesh’s demand peaks—Uttar Pradesh’s requirement declines. This complementary pattern offers an opportunity for efficient energy distribution between the two states.

Committee formed for Unified Pension Scheme (UPS)

The Cabinet has constituted a committee to oversee the implementation of the Unified Pension Scheme (UPS) for government employees appointed on or after January 1, 2005. The committee will be chaired by Additional Chief Secretary Shri Ashok Barnwal. Its members include Principal Secretary Shri Manish Rastogi, Secretary Shri Lokesh Kumar Jatav, Budget Director Smt. Tanvi Sundriyal, and Deputy Secretary Shri Ajay Katesaria. Shri J.K. Sharma, Director of Pensions, Madhya Pradesh, has been appointed as the Member Secretary.

Additionally, the Charge Secretary of the Finance Department has been authorized to make partial modifications to the committee’s composition if any of the designated officers become unavailable due to transfer, retirement, or other reasons.

Approval of Transfer Policy 2025 of officers/employees at state and district level

The Council of Ministers has approved the Transfer Policy for the year 2025 for officers and employees at both the state and district levels. As per the policy, the existing ban on transfers has been relaxed for the period from May 1 to May 30, 2025.

The policy outlines that, within each post or cadre, both administrative and voluntary transfers—whether during the ban period or the relaxation window—can be carried out up to a specified percentage annually. Transfers may be made for up to 20% of positions in cadres with up to 200 posts, 15% for cadres with 201 to 1000 posts, 10% for those with 1001 to 2000 posts, and 5% for cadres with more than 2001 posts. All transfers will be processed through the e-office system. Additionally, departments are permitted to formulate their own internal transfer policies in alignment with these guidelines.