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.
The Minister said the Cabinet has also given its approval for the continuation of Pradhan Mantri Gram Sadak Yojana (PMGSY-III) beyond March 2025 up to March 2028. He said it involves consolidation of through routes and major rural links connecting habitations to Gramin Agricultural Markets (GrAMs), higher secondary schools and hospitals. He added that the revised outlay for the scheme will be 83,977 crore rupees.
The Cabinet also approved the extension of the timeline till March 2028 for the completion of roads and bridges in plain areas and roads in hilly areas, and the extension of the timeline till March 2029 for the completion of bridges in hilly areas. Mr Vaishnaw said the extension of the timeline of PMGSY-III will enable the full realisation of its intended socio-economic benefits by ensuring completion of the targeted upgradation of rural roads.
The Cabinet Committee on Economic Affairs (CCEA) today approved two railway projects with total cost of 24,815 crore rupees. The Minister informed that these projects are the Ghaziabad-Sitapur 3rd and 4th Line and the Rajahmundry (Nidadavolu)-Visakhapatnam (Duvvada) 3rd and 4th Line. He said they cover 15 districts across Uttar Pradesh and Andhra Pradesh.
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.
