What are the key cabinet announcements made by Centre ahead of Diwali

NEW DELHI: The Centre on Wednesday announced several key decisions including a hike in DA allowance , an increase in MSP for farmers , etc benefitting central government employees and farmers ahead of Diwali .

Early Diwali gift for central employees
The Cabinet increased Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners by 3 percent effective from July 1, 2024, which is expected to benefit over 1 crore individuals.

The Union minister Ashwini while announcing the decision said that the financial implications of this DA/DR hike are estimated to be Rs 9,448 crore.

Earlier, the DA/DR received a hike of 4% in March this year. Vaishnaw mentioned that the DA hike is based on the 12-month average of the All India Consumer Price Index-Industrial Workers.

Increase in MSP
The PM Modi-led Cabinet Committee on Economic Affairs (CCEA) also increased the Minimum Support Prices (MSP) for all mandated Rabi Crops for the Marketing Season 2025-26.

Rapeseed & Mustard saw the highest absolute increase in MSP at Rs 300 per quintal, followed by Lentil (Masur) at Rs 275 per quintal. The MSP for gram, wheat, safflower, and barley has been increased by Rs 210, Rs 150, Rs 140, and Rs 130 per quintal, respectively.

The announcement aligns 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.

Rs 35,000 cr for PM Annadata Aay Sanrakshan Abhiyan
The Centre also gave its nod to PM Annadata Aay Sanrakshan Abhiyan (PM-AASHA) with an outlay of Rs 35,000 crore to ensure farmers receive fair prices for their produce while also maintaining stable market prices for consumers.

Ashwini Vaishnaw said that the scheme is designed to safeguard farmers from distress sales during peak harvesting periods.

Varanasi-DDU multi-tracking project
The central government also approved the Varanasi-Pt Deen Dayal Upadhyaya (DDU) multi-tracking project, with an estimated cost of Rs 2,642 crore.

A new rail-cum-road bridge across the Ganga river, the addition of third and fourth railway lines between Varanasi and DDU Junction, and other infrastructural improvements will be done under this project.

The government said that the project will ease operations and reduce congestion, providing the much-required infrastructural development on the busiest sections across Indian Railways.

The Varanasi-DDU Junction route is crucial for both passenger and freight traffic, transporting goods such as coal, cement, and food grains while catering to the growing tourism and industrial demands. The project is expected to handle 27.83 MTPA of freight on the proposed stretch.