Cabinet Approves 2% DA And DR Hike For Central Govt Employees, Pensioners

The Union Cabinet today gave approval for the creation of a domestic insurance pool, named Bharat Maritime Insurance Pool, with a sovereign guarantee of 12,980 crore rupees to facilitate continuous maritime insurance coverage. Briefing media in New Delhi after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the pool ensures that Indian trade continues to have access to affordable insurance for vessels carrying cargo from any international origin to Indian ports and vice versa, even when transiting volatile maritime corridors.

He said the pool will cover all maritime risks like Hull and Machinery, Cargo, Protection and Indemnity, and War risk. The Minister said the pool will help to manage liability insurance locally, tailored to Indian shipping conditions and regulatory requirements, and develop specialised marine underwriting, claims management and legal expertise within India. A Governing Body constituted for this pool would oversee the formation and functioning of the pool. Mr Vaishnaw said the rationale for providing a sovereign guarantee to the proposed domestic insurance entity is rooted in the objectives of strengthening self-reliance, sanctions resilience and ensuring greater sovereign control.

The Cabinet also approved the release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 1st January this year, representing an increase of two per cent over the existing rate of 58 per cent of the basic pay or pension, to compensate against price rise. Mr Vaishnaw said the combined impact on the exchequer on account of an increase in both Dearness Allowance and Dearness Relief would be over 6,791 crore rupees per annum. He said this will benefit over 50 lakh Central Government employees and over 68 lakh pensioners.

Mr Vaishnaw said the increased line capacity will significantly enhance mobility, resulting in improved operational efficiency and service reliability for Indian Railways. He said these multi-tracking proposals are poised to streamline operations and alleviate congestion. (UPDATED ON 28TH APRIL 2026)