Cabinet Clears ₹10,000 Crore Container Manufacturing Scheme, Approves 3% DA Hike

The Union Cabinet has approved a series of initiatives aimed at strengthening domestic manufacturing, promoting sports goods production and improving rural governance. It has also sanctioned a 3% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2026.

Under the newly approved Container Manufacturing Promotion Scheme, the government will invest ₹10,000 crore over 13 years, extending up to the financial year 2039-40. The initiative seeks to boost India’s container manufacturing capacity through four forms of assistance: interest subsidies, testing and certification support, land leasing assistance and operational expenditure support.

The Cabinet has also approved the Khelo India Sports Goods Manufacturing Scheme, designed to establish India as a global centre for producing high-quality sports equipment. The programme will have a financial allocation of ₹1,856 crore over eight years, covering the period from 2026-27 to 2033-34.

Another major decision is the approval of the Pradhan Mantri Viksit Gram Swaraj Yojana (PMVGSY) as a Centrally Sponsored Scheme. With a budget of ₹7,395 crore, the initiative will run for five years, from 2026-27 to 2030-31.

The scheme aims to strengthen Panchayati Raj institutions and other rural local bodies by making them more capable, self-reliant, accountable and efficient. It will be implemented across all States and Union Territories, including rural governance institutions in areas not covered under Part IX of the Constitution.

More than 2.78 lakh rural local bodies and traditional institutions are expected to benefit from the programme. Around 32 lakh elected representatives, along with Panchayat functionaries, are likely to gain directly from the initiative.

The decisions were announced by Information and Broadcasting Minister Ashwini Vaishnaw during a media briefing in New Delhi.