The Union Cabinet approved a series of major decisions on April 18, 2026, covering maritime insurance, Dearness Allowance for Central Government employees, rural roads and railway infrastructure.
Among the key decisions was approval for the Bharat Maritime Insurance Pool, backed by a sovereign guarantee of ₹12,980 crore. The Cabinet also approved a 2% increase in Dearness Allowance (DA) and Dearness Relief (DR), extended the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) until March 2028 and cleared two railway multi-tracking projects worth ₹24,815 crore.
Bharat Maritime Insurance Pool Gets ₹12,980 Crore Sovereign Guarantee
The Cabinet approved the creation of the Bharat Maritime Insurance Pool (BMI Pool) to ensure continued availability of maritime insurance for Indian-flagged or controlled vessels and vessels carrying cargo to or from India.
The pool will provide coverage for major maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War risks. It is intended to support Indian trade even when ships operate through maritime routes affected by geopolitical tensions or other disruptions.
The government said the domestic pool will also help reduce dependence on overseas insurance providers and develop specialised expertise in marine underwriting, claims handling and maritime legal matters within India.
A governing body will oversee the formation and functioning of the pool. The government has said the sovereign guarantee is aimed at strengthening self-reliance, improving resilience against sanctions and increasing India’s control over maritime risk protection.
The pool was subsequently launched in May 2026 with a total capacity of USD 1.5 billion and a sovereign guarantee of USD 1.4 billion, equivalent to ₹12,980 crore.
Central Government Employees to Get 2% DA Hike
The Cabinet also approved an additional instalment of Dearness Allowance for Central Government employees and Dearness Relief for pensioners, effective from January 1, 2026.
The existing rate of 58% of basic pay or pension was increased by 2 percentage points. The combined annual impact on the government exchequer is estimated at ₹6,791.24 crore. The decision is expected to benefit around 50.46 lakh Central Government employees and 68.27 lakh pensioners.
The increase was approved under the existing formula based on the recommendations of the Seventh Central Pay Commission. The revised DA and DR rates are intended to provide compensation against the impact of rising prices.
PMGSY-III Extended Until March 2028
The Cabinet approved the continuation of Pradhan Mantri Gram Sadak Yojana-III beyond March 2025 up to March 2028. The scheme focuses on strengthening through routes and major rural links connecting villages with Gramin Agricultural Markets (GrAMs), higher secondary schools and hospitals.
The revised financial outlay for PMGSY-III has been increased to ₹83,977 crore, from the earlier allocation of ₹80,250 crore.
The Cabinet also extended the deadline for completing roads and bridges in plain areas, as well as roads in hilly areas, to March 2028. Construction of bridges in hilly areas has been given a further deadline of March 2029.
In addition, works sanctioned before March 31, 2025 but not yet awarded can now proceed through the tendering and award process. The Cabinet also approved 161 long-span bridges at an estimated cost of ₹961 crore where they are located along already sanctioned road alignments.
The government said the extension will help complete the planned rural road upgrades, improve access to markets, reduce transportation time and costs and strengthen connectivity to educational and healthcare facilities.
₹24,815 Crore Approved for Two Railway Projects
The Cabinet Committee on Economic Affairs also cleared two railway multi-tracking projects with a combined estimated cost of ₹24,815 crore.
The projects are the Ghaziabad-Sitapur third and fourth lines in Uttar Pradesh and the Rajahmundry (Nidadavolu)-Visakhapatnam (Duvvada) third and fourth lines in Andhra Pradesh. Together, they will add approximately 601 km to the existing railway network and cover 15 districts across the two states.
The Ghaziabad-Sitapur project has a route length of 403 km and an estimated cost of ₹14,926 crore. The Rajahmundry-Visakhapatnam project covers 198 km and has an estimated cost of ₹9,889 crore. The projects are scheduled for completion by 2030-31.
The additional railway lines are expected to increase line capacity and help improve operational efficiency and service reliability. The government said the multi-tracking projects will also help ease congestion and support smoother movement of passengers and freight.
Overall, the Cabinet decisions cover several areas, including maritime risk protection, employee and pensioner benefits, rural connectivity and railway capacity. The individual projects will now move forward according to their respective implementation timelines.
Disclaimer: This article is intended for general news and informational purposes. Government decisions, scheme provisions, financial allocations and implementation timelines may be revised through subsequent official notifications. Readers should refer to the relevant government department or official notification for the latest and most authoritative information.