The Union Cabinet has approved a series of major measures covering maritime insurance, government employee benefits, rural roads and railway infrastructure. The decisions, announced on April 18, 2026, include the creation of the Bharat Maritime Insurance Pool with a ₹12,980 crore sovereign guarantee, an increase in Dearness Allowance and Dearness Relief, and the extension of Pradhan Mantri Gram Sadak Yojana-III.
The Cabinet Committee on Economic Affairs also cleared two railway multi-tracking projects with a combined estimated cost of ₹24,815 crore.
Bharat Maritime Insurance Pool Gets ₹12,980 Crore Guarantee
The Cabinet approved the creation of the Bharat Maritime Insurance Pool to provide continuous access to maritime insurance for Indian trade, including vessels carrying cargo between international origins and Indian ports and vice versa, even when ships pass through volatile maritime routes.
The pool will cover major maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War risk. It is also intended to support local management of liability insurance in line with Indian shipping conditions and regulatory requirements.
The government said the mechanism will help develop specialised marine underwriting, claims management and legal expertise within India. A Governing Body will oversee the formation and functioning of the pool.
The sovereign guarantee is intended to strengthen domestic insurance capacity, improve resilience against sanctions-related disruptions and provide greater sovereign control over maritime risk coverage.
DA and DR Increased by 2%
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 will increase by two percentage points to compensate for the impact of rising prices. The combined annual financial impact on the government exchequer is estimated at more than ₹6,791 crore.
The decision is expected to benefit more than 50 lakh Central Government employees and over 68 lakh pensioners. Official government material puts the estimated beneficiary numbers at around 50.46 lakh employees and 68.27 lakh pensioners.
PMGSY-III Extended Until March 2028
The Cabinet approved the continuation of Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) beyond March 2025 until March 2028. The scheme focuses on strengthening through routes and major rural links connecting habitations with Gramin Agricultural Markets (GrAMs), higher secondary schools and hospitals.
The revised outlay for PMGSY-III has been set at ₹83,977 crore. The completion deadline for roads and bridges in plain areas and roads in hilly areas has also been extended to March 2028, while the deadline for bridges in hilly areas has been extended to March 2029.
The extension is aimed at allowing the targeted rural road upgrades to be completed and enabling the scheme to deliver its intended socio-economic benefits.
₹24,815 Crore Approved for Two Railway Projects
The Cabinet Committee on Economic Affairs approved two railway multi-tracking projects with a total estimated cost of ₹24,815 crore.
The projects include the Ghaziabad-Sitapur 3rd and 4th Line and the Rajahmundry (Nidadavolu)-Visakhapatnam (Duvvada) 3rd and 4th Line. Together, they cover 15 districts across Uttar Pradesh and Andhra Pradesh and involve about 601 km of route length.
The government said the additional railway lines will increase network capacity and improve operational efficiency and service reliability. The multi-tracking projects are also intended to streamline train operations and reduce congestion on the concerned routes.
Disclaimer
The information in this article is based on official government announcements and publicly released figures available at the time of publication. Scheme timelines, financial allocations and implementation details may be subject to further government decisions or updates. Readers should refer to the relevant government departments for the latest official information.