CH MAHADEVAN WRITES

Dear Mr Gangadharan,
I refer to the query by mr S K Mazumdar on the calculation of DR slabs.) give below an illustration:
April14 242
May14 244
Suppose June 14 index is, say, 243, the average for the quarter is 243.
The corresponding old index for calculating the index points as at 1/8/2014 on base 1960=100 will be calculated as follows:
243x4.63x4.93=5546.694
=5544(taken at the lower multiple of 4)
The index as at 1/2/2014 was 5500
So the half yearly increase should be (5544-5500)/4=44/4=11 as at 1st August 2014.This is only for illustration.( Some Banker websites have predicted an index of 5592 which may give 23 slabs. But we have to wait till 30th July 2014 to see the exact increase).

For in-service employees, there seems to have been a discrepancy where there is a reduction in DA slabs by 17 as at 1st May 2014 whereas the DA slabs for Public Sector Bank employees have been reduced by 16 slabs. This is because LIC seems to have taken the index multiple of 4 at the lower point, whereas for negative movement it should have been taken at the higher multiple of 4 in the series.Mr R.K Sahni has already pointed it out to ED(P)LIC and I have also sent a mail to ED(P).
With greetings,
C H Mahadeavan.