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Bangalore gets A1 status

BS Reporter  |  Chennai/ Bangalore 

The Centre has finally accorded the A1 status to Bangalore, the sixth city in the country to be given this tag. The order declaring Bangalore as A1 City was issued on September 21 by the department of expenditure, Ministry of Finance.
It had been over two years since the Karnataka government sought the A1 status for Bangalore on the basis of 2001 census, which estimated the city's population at 6.5 million.
New Delhi, Mumbai, Kolkata, Chennai and Hyderabad are the other A1 cities in the country. Hyderabad was accorded the A1 status in August earlier this year.
Bangalore was late in merging the municipalities around the city and this delayed the A1 status. Besides, the Centre had sought certain clarifications after the Bangalore City Corporation was merged with seven municipalities around the city.
"We have given the clarifications sought by the Centre. The A1 status will help the state in seeking more funds for Bangalore's development," a senior state government official said.
Around 532,000 employees of the state government and 51,950 employees of the Union government will benefit from Bangalore bagging the A1 status.
Their house rent allowance will go up from 15 per cent to 30 per cent (of basic salary) and the city compensation allowance will be 15 per cent.
The state government has to mobilise resources on its own to meet the additional expenses.

First Published: Tue, September 25 2007. 00:00 IST