Hyderabad, Jan 27: The Andhra Pradesh Government on Wednesday announced ''39 per cent fitment'' benefit for 13.50 lakh state government employees and teachers and pensioners, entailing the state exchequer an additional financial burden of Rs 2,700 crore. After successful talks between Chief Minister K Rosaiah and leaders of the Joint Action Committee (JAC) of employees and teachers, Agriculture Minister N Raghuveera Reddy, Home Minister P Sabita Reddy and Revenue Minister D Prasada Rao told reporters that the ''fitment benefit'' would come into effect from February one and the same would be credited to General Provident Fund (GPF) in the first month and included in their salary from March.

JAC Chairman V Gopal Reddy and Secretary General K Swamy Goud, thanking the government, said they had agreed to the Government's offer in view of the not-so-encouraging financial position in the wake of global economic downturn. The Group of Ministers, comprising the three ministers, would look into the other demands of the employees which had no financial implication soon after the coming Budget session, Mr Raghuveera Reddy said. Talks held earlier on January 19 remained deadlocked, with the JAC rejecting the State Government's offer to provide 38 per cent fitment benefit and insisting on at least 41 per cent. Earlier, they had pressed for 61 per cent fitment benefit.