Update: Protests at IISc.
Here is a detailed site that discusses the Implications of the new pay scales. The government's response can be found here.
The newspapers that reported that UGC professors get Rs. 10,000 as AGP while IIT professors get Rs 10,500 and thus IIT professors get marginally higher. Professors of IITs in the pre-revised scale were getting 18,400-500-, which did not exist in UGC. Professors of UGC and Associate professors of IIT were getting the same scale of Rs. 16,400-450-. In the new revision, the professors of UGC get Rs. 10,000 as AGP while associate professors of IIT get Rs. 9,500 as AGP. Thus, existing faculty in the same scale of Rs. 16,400 will get more if they are in UGC than if they are in IIT.
It is claimed in many reports that assistant professors with three years experience will get more pay under UGC than those with similar experience in IIT. This is incorrect. Assistant professors under UGC are in the prerevised 10,000 scale and not in the 12,000 scale. Assistant professors in IITs are under the 12,000 scale. The correct statement is that existing faculty in the same scale of Rs. 12,000 will get more if they are in UGC than if they are in IIT after three years of experience.
I think the final implication is this. Initially, IIT faculty were unhappy with what the Mehta committee had recommended (which was much lower than what the faculty federation had recommended). Now, because the interministerial committee has reduced even what the Mehta's committee had recommended, faculty will be happy with what the Mehta's committee recommended !