I am reproducing a report from BSNL Tele Services, which reports that the IDA for BSNL employees may come down from April 2014 based on the Consumer Price Index (CPI) for December 2013 and January 2014, unless increased in February 2014. It says that “BSNL Employees Industrial Dearness Allowance (IDA) Rates from April 2014 may sharply be decreased in 2014-2015”.
“Industrial Dearness Allowance(IDA) rates of April 2014 are based on All India Consumer Price Index(IW) issued by the Department of Labour Bureau on average for the specified months of December-2013 and January, February 2014.
Now according to the Index numbers issued by Department of Labour Bureau for the month of December-2013, CPI for Industrial Workers(IW) decreased to 239 from 243 and for January 2014 it stood at 237, a decrease of 6 points in CPI which will be taken for April 2014 Industrial Dearness Allowance(IDA) rates.
If there is an increase by 9 points in CPI index for the month of February 2014, then the IDA rates from April 2014 will be increased, otherwise the IDA rates of BSNL employees from April 2014 will sharply decrease – even by around 2% from present Industrial Dearness Allowance(IDA) rates @ 90.5% from 01.04.2014, have a look about Old Industrial Dearness Allowance(IDA) rates of BSNL Employees from 1st January 2007.
If the IDA rates of BSNL employees decreased from present rates, this is the first time decrease after pay revision from 01-01-2007. According to the Consumer Price Index(IW), there is a chance – mostly for decrease of IDA rates from 1st April 2014. (Courtesy: BSNL Teleservices)
VAN Namboodiri's Blog 
I fully agree with the contents of the report.
Since IDA is sanctioned on the basis of three-monthly average of CPI(IW), it is quite natural that quantum of IDA may decrease in certain quarter, mainly due to seasonal fall of prices of food articles including vegetables. It had happened earlier also (pre-2007). But, it is to be noted simultaneously that whatever might be the drop of Consumer Price Index in a particular month vis-a-vis previous month, it had never happened in last three decades or more that the index fell below the level of the corresponding month of the previous year. So, the inflation is always there (even in January’14, annual inflation rate stood at 7.24%). Since the DA for Central Govt. Employees (CDA) is determined on the basis of 12-monthly average of price indices, there is virtually no chance of reduction in CDA rates.
Another interesting aspect is also noteworthy. While indices for December’13 and January’14 are 239 and 237 respectively, IDA beneficiaries including BSNL employees are getting IDA @ 90.5% from January’14 corresponding to 3-monthly average price index of 240.67 points. This will continue up to March’14. In case of CDA, CG employees have recently been granted 10% hike i.e. altogether 100% CDA from 1st January’14, which is corresponding to 231.52 points of CPI(IW). But the reality is — the 12-monthly average price index stood at 232.17 points on that day and monthly index at 239.
Never think, all these are mere jugglery of statistical figures — these are stark realities!
Good Comments, Comrade!