NFIR writes to Secretary, Fin Min on HBA Subsidy

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
Affiliated to :
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No.I/6(2)                                                                                              Dated: 26/02/2013

The Secretary,
Ministry of Finance, Government of India, North Block,
New Delhi

Dear Sir,

Sub: Grant of subsidy to the Central Government Employees on the rate of interest on HBA as recommended by VIth CPC — reg.

As per recommendations of 6th CPC, the Government was to workout with banks a scheme for home loans to Central Government Employees for providing a subsidy of 2% in the rate of interest on the home loans raised by the employees from the banks. Though 31/4 years have passed since the report of the VIth CPC was accepted by the Government, such a scheme is yet to be conceived.

During the past few years, the cost of construction of even a tiny home has risen astronomically and the employees have to raise home loans from banks to supplement the meager amount of HBA they receive from the Government, thus the overall outgo on account of payment of interest has risen considerably.

While it may not be possible to provide subsidy on the home loans raised by employees from banks as such a scheme has not yet been formulated by Banks, yet the employees will get at least partial relief if the government provides the subsidy on the FIBA that it has sanctioned to the employees from 1.1.2006 as recommended by the VIth CPC.

The NFIR therefore urges the Government to grant a subsidy or reduction of 2% on the rate of interest charged by the Government from its employees on all HBAs which have been sanctioned on or after 1.1.2006. This will redeem, though only partially, the assurance of the Government to its employees that was made consequent upon acceptance of the report of the 6th CPC and would partly mitigate their financial hardships.. Action taken in the matter may be apprised to the Federation in due course.

(M.Raghavaiah) (General Secretary)
Copy to the General Secretaries of Affiliated Unions;of NFIR.