New Delhi, May 11: The Union cabinet today permitted profit-making central public sector enterprises to merge 50 per cent of the dearness allowance with the basic pay of their employees. But it has set a condition: the PSUs would not get any budgetary support from the government to make the change and would have to draw on their own funds.

The allowance merger with basic pay will be done with retrospective effect from April 1, 2004.

“It is only an enabling provision; it isn’t mandatory for any PSU to make the change,” information and broadcasting minister Jaipal Reddy said.

The employees stand to benefit as the enhanced amount ? known as dearness pay ? will serve as the basis for the calculation of various allowances, transfer grant, retirement benefits, contribution to provident fund, and advances. The cabinet also approved the merger of the central dearness allowance for employees of Food Corporation of India.

Bill on labour laws

The government has decided to introduce in Parliament a bill to amend Labour Laws (Exemption from Furnishing Returns and Maintaining of Registers by Certain Establishments) Act, 1988 that will enable companies to submit just one annual return in Form I instead of numerous reports at present.

Similarly, in place of numerous registers, the employers will maintain two registers in form II and form III at workplace.

Cotton exports

The Centre has approved export of 20 lakh bales of cotton. Cotton exports will now be carried out jointly by Cotton Corporation of India (CCI) and Maharashtra State Cotton Growers Marketing Federation.

Agri research

CCEA has cleared a proposal to strengthen Indian Agricultural Research Institute. This would involve an amount of Rs 181.89 crore, including a matching contribution of Rs 14.25 crore by states.

Transmission project

The government has approved a Rs 1,779.29-crore transmission project for evacuating power from the 2000-MW Kudankulam atomic power plant in Tamil Nadu.