The Centre has upgraded Hyderabad as A1 city from September 1, fulfilling a long-standing demand of the State government. House rent allowance and city compensatory allowance of Central government employees working in Hyderabad will go up proportionately.
The Union Finance Ministry circulated a memo to all ministries and departments on Friday re-classifying cities on the basis of population figures of the 2001 Census. According to the memo, the population of the city had increased after it was reconstituted under the Greater Hyderabad Municipal Corporation by adding certain areas.
It therefore qualifies as A1 class city for the purpose of HRA and CCA of Central Government employees, says the memo. The orders will be applicable to all civilian employees of the Central Government and also to the civilian employees paid from the Defence Services Estimates. Separate orders will be issue for armed forces personnel and railway employees.