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Supreme Court Directs Bengal Govt to Pay 25% of Outstanding DA to State Employees

In a significant ruling, the Supreme Court has mandated the West Bengal government to release 25% of the pending dearness allowance (DA) dues owed to its employees. The directive, issued by a bench comprising Justices Sanjay Karol and Sandeep Mehta, gives the state three months to comply. The case will be reviewed again in August. This development marks a considerable setback for the Mamata Banerjee-led administration and a moment of triumph for state employees who have long been demanding DA parity with their central government counterparts. Reacting to the verdict, BJP leader Amit Malviya stated on social media that the ruling is a landmark victory following a protracted legal battle and nearly 17 adjournments initiated by the state government to stall the proceedings. The conflict began when a group of state government employees approached the Calcutta High Court, seeking DA benefits equivalent to those provided by the Centre. In May 2022, the high court ruled in favor of the employees, directing the Bengal government to align its DA rates with those of the Centre. However, the state challenged the verdict in the Supreme Court in November 2022. Although the West Bengal government has made marginal increases in DA over time, it has not managed to bridge the 37% gap compared to the Centre. Currently, central government employees receive 55% DA, while their West Bengal counterparts receive only 18%—a figure that includes the latest 4% hike effective from April 1, 2025. The disparity has led to widespread dissatisfaction among state employees. The Supreme Court’s latest order provides partial relief and sets the stage for further developments in the ongoing battle for DA parity. Source: NDTV Photo Credit: NDTV

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Government Announces 3.5% Stake Disinvestment in NHPC, Stock Dips 4%

In a strategic move, the government has unveiled plans to disinvest a 3.5% stake in NHPC (National Hydroelectric Power Corporation) through an offer for sale (OFS), causing a notable dip in the company’s stock value. The floor price for the OFS has been set at Rs 66 per share, and this development has triggered a 4.33% decline in NHPC shares during Thursday’s trade on January 18. As of 9:26 a.m., NHPC shares were down by Rs 3.16, trading at Rs 69.9 apiece on the Bombay Stock Exchange (BSE). The market capitalization of NHPC at the same time was recorded at Rs 70,214.79 crore. Investors and market analysts are closely monitoring the situation, evaluating the potential impact of the government’s disinvestment decision on NHPC’s market dynamics. NHPC, a prominent public sector power company, plays a crucial role in the country’s power generation landscape. The government’s move to divest a portion of its stake in the company is part of its broader disinvestment strategy, aiming to optimize resources and streamline the public sector. Market experts suggest that while disinvestments can unlock value for the government, the immediate market response indicates investor caution. The floor price set for the OFS will be a key factor influencing investor sentiment and determining the success of the disinvestment plan. As the news of the government’s decision spreads, market participants are likely to closely watch NHPC’s performance, analyzing the potential implications for the energy sector and the broader stock market. The development adds an element of uncertainty to NHPC’s short-term outlook, creating a dynamic situation in the financial landscape.

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