Cabinet meeting, chaired by Chief Minister Dr Mohan Yadav on Tuesday, approved a series of landmark decisions totalling nearly Rs 13,800 crore. From expanding Bhopal’s urban mobility network to slashing trade fees for the textile industry, the Cabinet cleared multiple proposals. Metro gets a massive Rs 13,565 crore outlay In a bid to significantly expand the State capital’s urban transportation network, the Cabinet approved a revised outlay of Rs 13,565.84 crore for the Bhopal Metro Rail Project. This comprehensive package comprises the revised project cost and additional financing requirements. Specifically, the original cost of Rs 6,941.40 crore has been revised to Rs 10,033.62 crore to accommodate an additional expenditure of Rs 3,092.22 crore. In addition, the Cabinet sanctioned Rs 3,532.22 crore towards additional financing requirements in accordance with approved industry norms. This financial restructuring includes an additional equity contribution of Rs 995.09 crore from the Government of India and the State Government, along with subordinate debt for central taxes and land acquisition costs, internal loans against banking funds, and dedicated grants for state taxes and Interest During Construction. Driving digital transformation through IT and AI To accelerate the State’s digital transformation agenda, the Cabinet approved Rs 235.63 crore under the Department of Science and Technology for the continued implementation of the State IT Cadre Consultancy Services Scheme and the Information Technology Action Plan during the five-year period from April 1, 2026, to March 31, 2031. Out of this allocation, Rs 180.20 crore has been sanctioned for the consultancy scheme to provide technical expertise to various government departments, corporations, and authorities.

 

This initiative will strengthen preparedness in emerging fields such as Artificial Intelligence, Big Data Analytics, Blockchain Technology, and Cyber Security through the engagement of experts, training, and capacity building. The remaining Rs 55.43 crore will fund the Information Technology Action Plan, enabling regular training for government officers at the VBTC Training Centre, support grants to nodal agencies like MPSEDC, and departmental awareness workshops. Relief for cotton mills to protect local jobs Considering the immediate requirements of cotton ginning mills, the Cabinet approved a reduction in the Mandi fee on cotton from 1 per cent to 0.5 per cent. Madhya Pradesh houses approximately 158 cotton ginning mills with a processing capacity of around 13 lakh metric tonnes. This reduction is strategically designed to encourage mills to continue their operations within the state rather than shifting their business activities to neighbouring states. The decision will effectively reduce input costs for ginning mills, improve their financial viability, and enhance their competitiveness in the market, ultimately contributing to increased local employment generation and higher GST collections. General Mandi fee revised to boost rural infrastructure For broader farmer welfare, the general Mandi fee has been increased from Re 1 to Rs 1.50, a move expected to generate an estimated additional annual revenue of approximately Rs 500 crore. This additional 50 paise will be utilised directly through the Marketing Development Fund to give a significant boost to cold storages, warehouses, processing units, and logistics facilities across various districts.

 

The generated revenue is strictly budgeted to allocate 20 paise to the Farmer Road Fund under the Rural Road Development Authority, 10 paise for basic infrastructure within Mandi premises, 12 paise for the Cow Conservation and Promotion Fund, 2 paise for the Chief Minister Farmer Life Welfare Scheme, and the remaining fractions for publicity campaigns, farmer conferences, agricultural research, and infrastructure development, while the existing 20 paise Nirashrit Fee remains completely unchanged. Multi-crore Government guarantees ensure smooth crop procurement To ensure hassle-free crop procurement operations during the upcoming cycles, the Cabinet approved a free government guarantee of Rs 8,600 crore to the MP State Civil Supplies Corporation and MARKFED for the period from April 1, 2026, to March 31, 2027. This guarantee will facilitate smooth borrowing from scheduled banks, nationalised banks, District Central Co-operative Banks, NABARD, and other public financial institutions for wheat procurement during the Rabi Marketing Season 2026, as well as paddy and coarse grain procurement during the Kharif Marketing Season 2026-27. The approval also supports the timely repayment of the Reserve Bank of India’s food credit limits to ensure continuity of existing financing arrangements.