HomeEconomyCabinet's Diwali gift includes DA hike, MSP hike, and more: Key highlights

Cabinet’s Diwali gift includes DA hike, MSP hike, and more: Key highlights

The Central government on Wednesday made key announcements following a cabinet meeting. The decisions were announced by Union Minister Ashwini Vaishnaw.

Dearness allowance hike

The Union Cabinet on Wednesday approved a 3 per cent Dearness Allowance (DA) hike. This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners

Construction of Varanasi-Pt Deen Dayal Upadhyaya multitracking project

The project, which is a new rail-cum-road bridge across Ganga river has been approved for Rs 2,642 crore. The bridge will transverse through Varanasi and Chandauli distraicts in Uttar Pradesh, providing infrastructural support to one of the busiest routes of Indian railways. It will increase the existing railway network of India by 30 km.

The Varanasi-Pt. Deen Dayal Upadhyaya (DDU) Junction route is vital for both passenger and freight traffic. It faces heavy congestion due to its role in transporting goods like coal, cement, and foodgrains, as well as serving growing tourism and industrial demands.

To address this issue, infrastructure upgrades are needed, including a new rail-cum-road bridge over the Ganga River and the addition of 3rd and 4th railway lines. These enhancements aim to improve capacity, efficiency and support the region’s socio-economic growth. Apart from relief in congestion in the stretch, 27.83 MTPA freight is anticipated on the proposed stretch.

bridge

MSP hike

Government has increased the MSP of Rabi Crops for Marketing Season 2025-26, to ensure remunerative prices to the growers for their produce.

The absolute highest increase in MSP has been announced for Rapeseed & Mustard at Rs.300 per quintal followed by Lentil (Masur) at Rs.275 per quintal.

For gram, wheat, safflower and barley, there is an increase of Rs.210 per quintal, Rs.150 per quintal, Rs.140 per quintal and Rs.130 per quintal respectively.

The increase in MSP for mandated Rabi Crops for Marketing Season 2025-26 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average Cost of Production.

The expected margin over All-India weighted average cost of production is 105 percent for wheat, followed by 98 percent for rapeseed & mustard; 89 per cent for lentil; 60 per cent for gram; 60 percent for barley; and 50 percent for safflower. This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification.

msp

Content Source: economictimes.indiatimes.com

Related News

Latest News