Rs 35,000 cr approved for PM-AASHA
NEW DELHI, Oct 16:The Centre on Wednesday increased the Dearness Allowance (DA) by 3 percentage points effective from July 1 this year, benefitting more than 1 crore employees and pensioners ahead of the Diwali festival.
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The Union Cabinet has approved to increase Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners by three percentage points of the basic pay/pension ahead of Diwali, Union Minister Ashwini Vaishnaw said after the Cabinet meeting.
The Minister also offered Diwali greetings to all Central Government employees and pensioners.
The DA/DR hike will be effected from July 1, 2024, the Minister informed.
He also informed that the financial implication of this DA/DR hike is Rs 9,448 crore.
Earlier in March this year, the Government hiked DA/DR by 4 percentage points to 50 per cent from January 1, 2024.
The Minister said that the DA hike is based on the 12-month average of All India Consumer Price Index-Industrial Workers
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from July 1, 2024, representing an increase of three per cent (3%) over the existing rate of 50 per cent of the Basic Pay/Pension, to compensate against price rise, an official statement said.
This increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.
The combined impact on the exchequer on account of both DA and DR would be Rs 9,448.35 crore per annum.
This will benefit about 49.18 lakh Central Government employees and 64.89 lakh pensioners.
Meanwhile, the Cabinet raised the minimum support price (MSP) for wheat by 6.59 per cent to Rs 2,425 per quintal for the 2025-26 rabi marketing season.
The Rs 150 per quintal hike in wheat support price is significant ahead of elections in states like Maharashtra, Jharkhand and Delhi. Rabi marketing season begins from April 2025.
The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, approved the increase in the MSP of six mandated rabi crops for 2025-26 marketing season in the range of Rs 130-300 per quintal.
“The major decision taken by the Cabinet is related to the welfare of the farmers. Like in Kharif, there is a significant increase in the MSP for rabi crops,” Vaishnaw said.
He said the support price for wheat has been increased to Rs 2,425 per quintal for 2025-26, from Rs 2,275 per quintal in the previous year.
To increase domestic production of oilseeds, the Cabinet increased the support price for rapeseed/mustard seed by Rs 300 to Rs 5,950 per quintal for the 2025-26 marketing season.
The support price for safflower was increased by Rs 140 to Rs 5,940 per quintal from Rs 5,800 per quintal in the previous year.
In case of pulses, support price for lentil (masur) increased by Rs 275 to Rs 6,700 per quintal, while that for gram MSP raised by Rs 210 to Rs 5,650 per quintal for the 2025-26 marketing season.
Support price for barley increased by Rs 130 to Rs 1,980 per quintal for 2025-26 rabi marketing season, from Rs 1,850 per quintal in the previous year.
The increase in rabi crops MSP is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the All-India weighted average cost of production.
The expected margin over the All-India weighted average cost of production is 105 per cent for wheat, followed by 98 per cent for rapeseed & mustard; 89 per cent for lentil; 60 per cent for gram; 60 per cent for barley; and 50 per cent for safflower.
This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification, the Minister added.
The Government also approved Rs 35,000 crore for PM Annadata Aay Sanrakshan Abhiyan (PM-AASHA) with an aim to provide remunerative price to farmers as well as stabilisation of market price for consumers.
Giving details, the Minister said the scheme is aimed at protecting farmers from distress sale during peak harvesting time.
It will promote self-sufficiency in the production of pulses, oilseeds and other essential agri-horticulture commodities, increase farmers income and protect consumers’ interest.
The Cabinet also approved the Varanasi-Pt Deen Dayal Upadhyaya (DDU) multi-tracking project with an estimated cost of Rs 2,642 crore.
The proposed project includes a new rail-cum-road bridge across the Ganga River and the addition of third and fourth railway lines between Varanasi and DDU Junction route, among other infrastructural upgrades.
“The proposed multi-tracking project will ease operations and reduce congestion, providing the much-required infrastructural development on the busiest sections across Indian Railways. The project traverses through Varanasi and Chandauli districts in Uttar Pradesh,” a Government statement said.
It added, “Varanasi Railway Station, a crucial hub in Indian Railways, connects key zones and serves as a gateway for pilgrims, tourists and the local population.”
Reacting to the decision, Modi said his government has been leaving no stone unturned for the welfare of people of Varanasi.
“The project will not only provide better connectivity to pilgrims, tourists and local residents but also create new employment and business opportunities,” he said in a post on X in Hindi.
According to the Government statement, the Varanasi-DDU Junction route, vital for both passenger and freight traffic, faces heavy congestion due to its role in transporting goods like coal, cement, and food grains, 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,” the statement said.
“Apart from relief in congestion in the stretch, 27.83 MTPA (million tonnes per annum) freight is anticipated on the proposed stretch,” it added.
Highlighting the enhancement of employment/self-employment opportunities, the official release stated that the project is result of PM-Gati Shakti National Master Plan for multi-modal connectivity which has been possible through integrated planning and will provide seamless connectivity for movement of people, goods and services.
According to the Government, the project, covering two districts in Uttar Pradesh, will increase the existing network of Indian Railways by about 30 kilometres.
“The Railways being an environmentally friendly and energy efficient mode of transportation, will help both in achieving climate goals and minimizing logistics cost of the country and lower CO2 emissions (149 crore kg) which is equivalent to plantation of six crore trees,” the statement said. (PTI)
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