Mega Policy Push: Cabinet Approves ₹12,980 Cr Sovereign Insurance Pool, Fuels Massive Rural & Rail Expansion

Mega Policy Push: Cabinet Approves ₹12,980 Cr Sovereign Insurance Pool, Fuels Massive Rural & Rail Expansion​

In a major policy overhaul focused on bolstering economic resilience and deepening infrastructure, the Union Cabinet today approved several critical initiatives. The announcements cover everything from establishing a sovereign-backed maritime insurance pool to approving multi-billion rupee spending on rural roads and railway expansion. These decisions underline a sustained focus on making key Indian economic corridors more secure and efficient.

Strengthening Trade with New Sovereign Insurance Pool​

A key development is the approval for the formation of the Bharat Maritime Insurance Pool. This domestic entity will operate with a significant sovereign guarantee of ₹ 12,980 crore. The pool is designed to ensure continuous and affordable maritime insurance coverage for vessels traversing international routes to and from Indian ports.

Information and Broadcasting Minister Ashwini Vaishnaw stated that the pool will cover all major maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity, and War risk. This move is pivotal for managing liability insurance locally, tailoring it precisely to India's unique shipping requirements.

The sovereign guarantee attached to the pool underscores the objective of strengthening self-reliance and sanctions resilience. It is expected to help develop specialized marine underwriting, claims management, and legal expertise within the domestic market.

Boosting Rural Connect and Infrastructure Timelines​

Addressing rural connectivity, the Cabinet gave its approval for the continuation of Pradhan Mantri Gram Sadak Yojana (PMGSY-III) until March 2028. This crucial extension involves consolidating through routes and establishing major links connecting habitations to Gramin Agricultural Markets (GrAMs), secondary schools, and hospitals.

The revised outlay for the ambitious scheme has been set at ₹ 83,977 crore. Furthermore, the government has extended infrastructure timelines to ensure full realization of socio-economic benefits. Roads in plain areas are now targeted for completion by March 2028, while bridges in hilly areas have been given a deadline extension until March 2029.

Major Capital Outlay in Rail and Welfare Measures​

The Cabinet Committee on Economic Affairs (CCEA) also approved two major railway projects costing a total of ₹ 24,815 crore. These initiatives include the Ghaziabad-Sitapur 3rd and 4th Line and the Rajahmundry (Nidadavolu)-Visakhapatnam (Duvvada) 3rd and 4th Line. The projects span 15 districts across Uttar Pradesh and Andhra Pradesh.

Minister Vaishnaw highlighted that the increased line capacity across these multi-tracking proposals will significantly enhance mobility. This enhanced capacity is projected to improve operational efficiency and bolster service reliability for Indian Railways, helping to alleviate critical congestion points.

On the welfare front, the Cabinet also approved an additional installment of Dearness Allowance (DA) and Dearness Relief to pensioners. This raise takes effect from January 1st this year, representing an increase of two per cent over the existing rate of 58 per cent of the basic pay or pension. The combined fiscal impact of this increase is estimated to be over ₹ 6,791 crore per annum, benefiting more than 50 lakh Central Government employees and over 68 lakh pensioners.

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