Cabinet meeting key decisions: Maritime insurance pool, DA hike for 1.18 crore government staff, new rail corridor among others

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ET OnlineLast Updated: Apr 18, 2026, 03:31:00 PM IST

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The Union Cabinet has approved significant decisions impacting infrastructure and social security. A new Bharat Maritime Insurance Pool will boost domestic capacity. Central government employees and pensioners will see a Dearness Allowance and Relief hike. The Pradhan Mantri Gram Sadak Yojana-III receives an extension. A new rail corridor in Uttar Pradesh is also cleared, enhancing connectivity.

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New Delhi, Apr 08 (ANI): Union Minister Ashwini Vaishnaw speaks during a Cabinet... — Cabinet meeting key decisions: Maritime insurance pool, DA hike for 1.18 crore government staff, new rail corridor among others

The Union Cabinet, chaired by Prime Minister Narendra Modi approved a number of major decisions spanning infrastructure, trade resilience, and social security , with Railway and Information Technology Minister Ashwini Vaishnaw briefing the media on the key approvals.

Also Read: Cabinet approves ₹12,980 crore sovereign-backed maritime insurance pool

Here are the key decisions at a glance:

Bharat Maritime Insurance Pool (BMI Pool): Cabinet cleared a domestic maritime insurance facility backed by a Rs 12,980 crore sovereign guarantee. Covers hull and machinery, cargo, P&I, and war risks. Applicable to India-flagged, India-controlled, and India-bound vessels. Valid for 10 years, extendable to 15. Aimed at reducing dependence on international P&I clubs amid West Asia conflict and rising global uncertainty.
DA/DR Hike: Dearness Allowance for central government employees and Dearness Relief for pensioners raised by 2%, taking the rate to 60% of basic pay. Effective January 1, 2026. Will benefit 50.46 lakh employees and 68.27 lakh pensioners. Annual exchequer impact: Rs 6,791 crore.

Also Read: Greek, Indian tankers U-turn before Hormuz amid reopening doubt

PMGSY-III Extension: Pradhan Mantri Gram Sadak Yojana-III extended to March 2028 for roads and plain-area bridges; hilly-area bridges get time until March 2029. Revised outlay raised to Rs 83,977 crore from Rs 80,250 crore. Focus on rural roads linking habitations to markets, schools, and hospitals.
Ghaziabad-Sitapur Rail Corridor: Cabinet approved 3rd and 4th lines on the 403-km Ghaziabad-Sitapur section, part of the Delhi-Guwahati High Density Network at Rs 14,926 crore. Six new stations to come up. Project duration: 4 years. Covers 10 UP districts including Moradabad, Bareilly, Rampur, and Lakhimpur Kheri.
The Cabinet also approved Rs 82.39 crore for the Mahana Micro Irrigation Project in Rewa district, along with a 3 per cent increase in dearness allowance for government employees and dearness relief for pensioners w.e.f July 1, 2025, raising it to 58 per cent.

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