Cabinet Approves Highest Wheat MSP Hike Since 2014, Increases Dearness Allowance By 4%. Top Points

Besides increasing MSP for Rabi crops, the Cabinet hiked dearness allowance by four percentage points to 46 per cent for Central government employees.

The decisions were taken at a Cabinet meeting chaired by PM Narendra Modi

Source : PTI

Ahead of the festive season, the Union Cabinet on Wednesday approved Minimum Support Prices (MSP) for six Rabi crops, including wheat, for 2024-25 and hiked dearness allowance by four percentage points to 46 per cent for Central government employees and pensioners. Addressing a press briefing, Union Minister Anurag Thakur also announced that the Cabinet approved Rs 20,773 crore for a 13 GW renewable energy project in Ladakh. The project will entail setting up of 713 km transmission lines and will benefit Leh and Jammu and Kashmir.

The decisions were taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Modi. The announcements come ahead of Assembly elections in key wheat growing states and months ahead of the Lok Sabha election.

Cabinet Decisions Today: Highlights

• Dearness allowance for Central govt employees and dearness relief for pensioners increased by 4 per cent. The DA hike will be implemented from July 1, 2023.
• The move will benefit 48.67 lakh central government employees and 67.95 lakh pensioners.
• The increase is based on the recommendations of the 7th Central Pay Commission.
• In the highest increase since the BJP government came to power in 2014, the Cabinet has hiked wheat MSP by Rs 150/quintal to Rs 2,275/quintal for 2024-25.
• Currently, the MSP on wheat is Rs 2,125 per quintal for the 2023-24 marketing season (April-March).
• The MSP of rapeseed and mustard has been increased by Rs 200 per quintal, masoor by Rs 425 per quintal, barley by Rs 115 per quintal, sunflower by Rs 150 per quintal, and gram by 105 per quintal.
• The Cabinet also gave nod to set up a 13 GW renewable energy project in Ladakh. The project is targeted to be set up by FY 2029-30.
• The transmission line for evacuating this huge quantum of power will pass through Himachal Pradesh and Punjab up to Kaithal in Haryana, where it will be integrated with the National Grid.
• An interconnection line is also planned from this project in Leh to the existing grid in Ladakh. This will ensure uninterrupted power supply to Ladakh. It will also be connected to Leh-Alusteng-Srinagar line to provide power to Jammu & Kashmir.