Modi Cabinet Approves New Highway; DA Decision Awaited

India's Union Cabinet, chaired by Prime Minister Narendra Modi, has cleared several key proposals, ranging from a major highway project in Bihar to discussions on the dearness allowance (DA) for central government employees.

Among the most notable approvals was the go-ahead for a four-lane expressway connecting Muzaffarpur, Sitamarhi, and Sonbarsa, forming part of National Highway 22. The 82-kilometer stretch is expected to cost approximately ₹3,590 crore.

Once completed, the highway will significantly reduce travel time between Muzaffarpur and the Nepal border, officials said, easing both passenger movement and freight transport. The improved connectivity is also expected to strengthen bilateral trade with Nepal.

Government representatives noted that the project aligns with broader infrastructure goals aimed at boosting economic activity in Bihar, one of India's less industrially developed states. The construction is likely to generate employment opportunities during the building phase and improve long-term access to markets in the region.

Alongside the highway approval, the cabinet meeting also addressed the sensitive issue of dearness allowance, a periodic adjustment made to the salaries of central government employees to offset the effects of inflation. Millions of employees and pensioners across the country have been awaiting an update on this matter.

While the summary did not specify the exact revised DA percentage, the fact that it featured prominently in cabinet discussions signals its importance to policymakers. DA revisions are typically announced twice a year and are closely tied to changes in the consumer price index.

Analysts suggest that pairing infrastructure spending with employee welfare measures reflects the government's dual focus on economic growth and public sector satisfaction. Large-scale projects such as the Muzaffarpur-Sitamarhi-Sonbarsa highway are often seen as symbols of regional development, particularly in states seeking greater investment.

Further details regarding the implementation timeline for the highway, as well as the finalized DA figures, are expected to be released by the relevant ministries in the coming weeks.