Cabinet Clears Maritime Insurance Pool, DA Hike, PMGSY Extension and Key Rail Projects

April 18, 2026 : The Union Cabinet has approved the creation of a domestic insurance mechanism, the Bharat Maritime Insurance Pool, backed by a sovereign guarantee of ₹12,980 crore. The move is aimed at ensuring uninterrupted and affordable maritime insurance coverage for Indian trade, including vessels operating through high-risk global shipping routes.

Briefing the media in New Delhi, Information and Broadcasting Minister Ashwini Vaishnaw said the pool will provide comprehensive risk coverage, including Hull and Machinery, Cargo, Protection and Indemnity, and War risks. He noted that the initiative will enable India to manage marine liability insurance domestically, while also building expertise in underwriting, claims processing and maritime legal frameworks. A governing body will be set up to supervise its operations. The sovereign guarantee, he said, is intended to enhance self-reliance, strengthen resilience against external disruptions, and ensure greater sovereign control over critical insurance functions.

The Cabinet also approved a 2 percent increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, effective January 1. This raises the rate from 58 percent to 60 percent of basic pay or pension. The decision is expected to cost the exchequer over ₹6,791 crore annually and benefit more than 50 lakh employees and 68 lakh pensioners.

In addition, the government has extended the Pradhan Mantri Gram Sadak Yojana (PMGSY-III) until March 2028. The scheme focuses on upgrading rural road connectivity, particularly linking villages to agricultural markets, higher secondary schools and healthcare facilities. The revised outlay stands at ₹83,977 crore. Timelines for project completion have also been extended, with roads and bridges in plain areas and roads in hilly regions now scheduled for completion by March 2028, and bridges in hilly areas by March 2029.

Separately, the Cabinet Committee on Economic Affairs approved two major railway expansion projects worth ₹24,815 crore. These include the addition of third and fourth lines on the Ghaziabad–Sitapur route and the Rajahmundry (Nidadavolu)–Visakhapatnam (Duvvada) section. Spanning 15 districts in Uttar Pradesh and Andhra Pradesh, these projects are expected to ease congestion, improve operational efficiency and enhance service reliability across the rail network.