Cabinet Greenlights 2% DA Hike for Central Staff and ₹24,815 Cr Rail Projects in UP & AP

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NEW DELHI: The Centre on Saturday increased dearness allowance (DA) and dearness relief (DR) by two per cent, over the existing rate of 58 per cent of the basic pay/pension. The decision will benefit about 50.46 lakh Central employees and 68.27 lakh pensioners. The combined impact would be Rs 6,791.24 crore per annum and will take effect from January 1, 2026.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Saturday approved two projects of the railway ministry, one in UP and another in AP, with a total cost of `24,815 crore.
Briefing the media, information and broadcasting minister Ashwini Vaishnaw said that the projects were third and fourth lines of the 403-km Ghaziabad-Sitapur route in Uttar Pradesh and the 198-km Rajahmundry-Visakhapatnam stretch in Andhra Pradesh.

The Ghaziabad-Sitapur is an existing double-line section forming a key part of the Delhi-Guwahati high-density network which will transverse through Ghaziabad, Hapur, Amroha, Moradabad, Rampur, Bareilly, Sahjahanpur, Lakhimpur Kheri and Sitapur districts of Uttar Pradesh, the project route passes through some major industrial centres – Ghaziabad, Moradabad, Bareilly, Shahjahanpur and Roza.

The Rajahmundry-Visakhapatnam section forms part of the Howrah-Chennai high-density network, and the proposed project is part of a quadrupling initiative for the route. The government said the project passes through East Godavari, Konaseema, Kakinada, Anakapalle and Vishakapatnam districts of Andhra Pradesh.

“Visakhapatnam is identified as an aspirational district. It provides connectivity to some major ports along the east coast, such as Visakhapatnam, Gangavaram, Machilipatnam and Kakinada,” a government statement said.

The Cabinet also gave its nods for the continuation of Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) beyond March 2025 upto March 2028. It involves consolidation of “Through Routes and Major Rural Links” connecting habitations to gramin agricultural markets, higher secondary schools and hospitals. The revised outlay of the scheme will be Rs 83,977 crore now.

The two projects covering 15 districts across Uttar Pradesh and Andhra Pradesh will increase the existing network of Indian Railways by about 601 km.

According to the statement, the increased line capacity will significantly enhance mobility, resulting in improved operational efficiency and service reliability for the Indian Railways.

“These multi-tracking proposals are poised to streamline operations and alleviate congestion. The projects are in line with PM Modi’s vision of a new India, which will make people of the region ‘Aatmanirbhar’ (self-reliant) by way of comprehensive development that will enhance their employment/self-employment opportunities,” the statement said.
“The projects are part of the PM-Gati Shakti National Master Plan with a focus on enhancing multi-modal connectivity and logistical efficiency through integrated planning and stakeholder consultations. They will provide seamless connectivity for the movement of people, goods and services,” it added.

Outlining the benefits of the two projects, the government said they are essential routes for transportation of commodities such as coal, foodgrains, cement, iron and steel, containers, fertiliser, sugar, chemical salts, limestone, etc.
The construction of these new lines will also provide a boost to the tourism sector as they will improve rail connectivity to several prominent destinations, including the Dudheshwarnath temple, Garhmukteshwar Ghat, Dargah Shah Wilayat Jama Masjid (Amroha), Naimisharanya (Sitapur), Annavaram, Antarvedi, Draksharamam, etc, the statement said.

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