Central Govt Employees, Pensioners Get 2% DA and DR Increase

The Union Cabinet has approved the creation of a domestic insurance pool named the Bharat Maritime Insurance Pool with a sovereign guarantee of ₹12,980 crore to ensure uninterrupted maritime insurance coverage for Indian trade. Briefing the media in New Delhi, Union Minister Ashwini Vaishnaw said the pool will provide affordable insurance for vessels carrying cargo to and from Indian ports, including those passing through volatile maritime corridors. It will cover risks such as Hull and Machinery, Cargo, Protection and Indemnity, and War Risk.

The Cabinet also approved an additional 2 per cent increase in Dearness Allowance for central government employees and Dearness Relief for pensioners with effect from January 1, raising the rate from 58 per cent. The move is expected to cost the exchequer over ₹6,791 crore annually and benefit more than 50 lakh employees and 68 lakh pensioners.

In another key decision, the government approved continuation of the Pradhan Mantri Gram Sadak Yojana (PMGSY-III) till March 2028 with a revised outlay of ₹83,977 crore. The scheme focuses on improving rural road connectivity to agricultural markets, higher secondary schools, and hospitals.

The Cabinet Committee on Economic Affairs also cleared two railway multi-tracking projects worth ₹24,815 crore — the Ghaziabad-Sitapur 3rd and 4th Line, and the Rajahmundry (Nidadavolu)-Visakhapatnam (Duvvada) 3rd and 4th Line. The projects will span 15 districts in Uttar Pradesh and Andhra Pradesh, aimed at boosting capacity, reducing congestion, and improving operational efficiency of Indian Railways.