New Delhi, Oct. 28 -- The Union cabinet has approved Rs.29,267 crore in new schemes to expand domestic manufacturing of shipping containers and sports goods, and strengthen rural local governments, as the government seeks to build industrial capacity and improve resource allocation at the grassroots.

The Cabinet also approved a 3% increase in dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners ahead of the festive season, entailing an expenditure of Rs.10,016 crore from the public exchequer, information and broadcasting minister Ashwini Vaishnaw said at a briefing on Wednesday. He called the increase "a Diwali gift from Prime Minister Narendra Modi".

The three schemes target distinct prioriti...