Page 41 - NIS ENGLISH 1-15 May, 2026
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UNION CABINET DECISIONS
UNION C ABINET DE CISIONS
DECISION: Approval for Dearness Allowance (DA)
for Central Government employees and Dearness
Relief (DR) for pensioners.
IMPACT: This will be effective from January 1, 2026.
The existing rate of 58 percent of the basic pay/
pension will be increased by two percent. Due to the
hike in both Dearness Allowance and Dearness Relief,
the total financial burden on the government exche-
quer will amount to ₹6,791.24 crore per annum. This
will benefit approximately 50.46 lakh Central Govern-
ment employees and 68.27 lakh pensioners.
DECISION: Approval granted to extend the
DECISION: Approval for the proposal to establish Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III)
the ‘Bharat Marine Insurance Pool’ (BMI Pool). beyond March 2025, continuing it until March 2028.
IMPACT: A sovereign guarantee of ₹12,980 crore IMPACT: The extension of the PMGSY-III timeline will
has been provided to facilitate continuous marine facilitate the completion of planned improvements
insurance coverage. This domestic insurance pool to rural roads. This will ease market access for both
addresses issues arising from global upheavals agricultural and non-agricultural produce, thereby
and geopolitical instability, thereby reducing the boosting the rural economy and trade. Additionally,
dependence of Indian vessels on external insurance a reduction in transportation time and costs will
providers. This pool covers all marine risks, includ- lead to an improvement in rural incomes. Enhanced
ing Hull & Machinery, Cargo, Protection & Indemnity connectivity will also improve access to educational
(P&I), and War Risks. It also extends coverage to institutions and healthcare centers. The continued
vessels transporting cargo to or from Indian ports implementation of this scheme is also expected to
from any international origin—even if their routes generate employment opportunities.
traverse through volatile maritime regions.
Furthermore, the Cabinet accorded approval to
DECISION: Approval granted for two multi-track- the following points:
ing projects covering 15 districts across Uttar n The deadline for the construction of roads and
Pradesh and Andhra Pradesh. bridges in plain areas, as well as for completing the
IMPACT: This will result in an addition of approxi- remaining road construction works in hilly areas, has
mately 601 kilometers to the existing network of been extended to March 2028.
Indian Railways. The estimated cost of these proj- n In view of the challenging geographical conditions
ects is ₹24,815 crore, and they are scheduled to be prevailing in hilly regions, the timeline for completing
completed by 2030-31. This will enhance the opera- bridge construction works in these areas has been
tional efficiency and service reliability of Indian Rail- further extended to March 2029.
ways. The objective is to foster self-reliance among n All works sanctioned before March 31, 2025—for
the people of the region through comprehensive which allocations had not yet been finalized—have
regional development, thereby increasing their op- now been authorized to proceed through the tendering
portunities for employment and self-employment. and allocation process.
These projects will ensure the seamless movement n Approval has also been granted for the construction
of people, goods, and services. of 161 new long-span bridges—located along
previously sanctioned routes—at an estimated cost of
₹961 crore. To ensure the successful implementation
of the scheme, the total financial outlay has been
increased from the originally allocated amount of
₹80,250 crore to ₹83,977 crore. n
Scan the QR code to watch the press
briefing on the Cabinet decisions.
May 01-15, 2026 || NEW INDIA SAMACHAR 39
