The Union Cabinet on Saturday approved the establishment of a ₹12,980 crore Bharat Maritime Insurance Pool with a sovereign guarantee, Union Information and Broadcasting Minister Ashwini Vaishnaw said. He stated that the decision aims to provide continuous insurance support to India’s shipping sector, especially at a time of rising geopolitical tensions and global uncertainty, which have increased premiums and affected insurance availability, particularly due to the situation in West Asia.

The proposed insurance pool will cover multiple maritime risks, including hull and machinery, cargo, protection and indemnity (P&I), and war-related risks. It will apply to Indian-flagged vessels, Indian-controlled ships, and vessels connected to India’s trade routes. The initiative will be run with participation from domestic insurers and is expected to reduce reliance on foreign insurance companies while ensuring smooth trade operations. Vaishnaw said the sovereign guarantee is a key feature that strengthens the scheme and helps lower costs.

He also clarified that the scheme is designed for shipping operators, while the VCGC scheme targets individual exporters, adding that the current geopolitical situation highlighted the need for such a mechanism. The Cabinet approved a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, raising it to 60% of basic pay or pension from January 1, 2026. The revision is expected to benefit over 50 lakh employees and around 68 lakh pensioners, with an annual cost of about ₹6,791 crore.

The Cabinet also extended the Pradhan Mantri Gram Sadak Yojana (PMGSY-III) until March 2028, increasing its total outlay to ₹83,977 crore. The programme will continue improving rural road connectivity to markets, schools, and healthcare facilities, with extended deadlines for completing works in both plain and hilly regions. Officials said the move will boost rural development and employment.

In the railway sector, two major expansion projects were approved. The first involves adding third and fourth rail lines on the 403 km Ghaziabad–Sitapur route at a cost of ₹14,926 crore, part of the Delhi–Guwahati high-density corridor, expected to be completed in four years. The project will add six stations in Uttar Pradesh and improve passenger and freight movement along the route.

The second project covers the Rajahmundry (Nidadavolu)–Visakhapatnam (Duvvada) corridor, with a ₹9,889 crore investment to add additional rail lines. This is expected to ease congestion and improve efficiency along the eastern coastal railway network. Together, the five Cabinet decisions involve a total outlay of more than ₹1.28 lakh crore.