Cabinet approves Rs 41,000crore development package
   Date :02-Sep-2026

Cabinet approves 
 
Staff Reporter :
 
THE Madhya Pradesh Cabinet, chaired by Chief Minister Dr Mohan Yadav, approved financial proposals and welfare measures worth more than Rs 41,000 crore at a meeting held at the State Secretariat on Tuesday. The decisions cover rural employment, road connectivity, higher education, dairy development, healthcare and administrative expansion across the State. Rs 29,619 crore rural scheme cleared:The Cabinet ratified the implementation of the Viksit Bharat (Rural) VB-G RAM-G Viksit Bharat Scheme in Madhya Pradesh with an estimated financial outlay of Rs 29,619 crore. The scheme will be effective from July 1, 2026, with Rs 3,183 crore estimated to be spent during 2026-27 and Rs 26,436 crore proposed for continuation from 2026-27 to 2030-31. Under the scheme, eligible adult members of rural households will receive a statutory guarantee of 125 days of wage employment in every financial year, up from the existing 100 days. The Centre and state will share expenditure in a 60:40 ratio, with the state’s share estimated at Rs 10,574 crore over five years. The state will separately bear Rs 946 crore towards administrative expenditure. Digital planning for rural development: The scheme will focus on developing rural infrastructure in line with the Viksit Bharat@2047 vision. Every gram panchayat will prepare a Viksit Gram Panchayat Plan using GIS technology, PM Gati Shakti layers and digital public infrastructure. These plans will be integrated through a digital portal into the Viksit Bharat National Rural Infrastructure Stack.
 
A dedicated State-level project management unit will also be established under the Madhya Pradesh State Rural Employment Guarantee Council to support technical work related to water security, climate-resilient engineering, data science and modern livelihood models. Rs 2,973 crore dairy plan approved: The Cabinet approved a Rs 2,973-crore dairy development plan aimed at strengthening the co-operative dairy system and upgrading the Sanchi brand. The plan, developed with the National Dairy Development Board, will be implemented over five years. The Government plans to expand co-operative milk societies from 7,331 villages to 26,000 villages. Daily milk procurement is targeted to rise from 12 lakh kg to 52 lakh kg, while processing capacity is expected to increase from 17.8 lakh litres to 63.3 lakh litres a day. Daily packaged milk sales are projected to rise from seven lakh litres to 35 lakh litres, while artificial insemination coverage is proposed to increase from 15% to 50%. West Bhopal bypass gets approval: The Cabinet granted revised administrative approval for construction of a 35.61-km four-lane West Bhopal Bypass with paved shoulders under the Hybrid Annuity Model. The total project financial cost has been approved at Rs 3,225.51 crore, while Rs 548.29 crore will be spent on pre-construction activities. The bypass is expected to provide a direct route for traffic between Jabalpur and Narmadapuram and Indore, allowing vehicles to bypass Bhopal and reducing the travel distance by about 21 km. The project alignment was revised following the declaration of the Ratapani Tiger Reserve, environmental restrictions concerning the Upper Lake catchment, the presence of the ancient Shiv Temple at Samsgarh and plans to connect the bypass with the eastern bypass.
 
Mehlua-Bina road gets Rs 3,272 crore: Administrative approval was also granted for the 67.116-km Mehlua-BinaKhimlasa-Malthone four-lane road with paved shoulders under the Hybrid Annuity Model. The total project financial cost has been approved at Rs 2,776.83 crore, along with Rs 428.94 crore for pre-construction activities and Rs 65.77 crore for supervision charges. The proposed route will begin at Mehlua crossing on NH-346, pass through Bina and connect with NH-44 at Malthone. The road is expected to improve regional, interstate and industrial connectivity, particularly around Bina, where the BPCL refinery, thermal power plant, railway yard and other major industries generate substantial heavyvehicle traffic. Three new technology universities: The Cabinet approved the restructuring of Rajiv Gandhi Proudyogiki Vishwavidyalaya (RGPV) and the establishment of three separate technology and skill universities in Bhopal, Ujjain and Jabalpur. The existing Bhopal university will be reorganised as Madhya Bharat Technology and Skill University, while the autonomous engineering colleges in Ujjain and Jabalpur will be developed as Malwa Technology and Skill University and Mahakaushal Technology and Skill University respectively. At present, RGPV has 13 programmes, 585 affiliated institutions and more than 3.83 lakh students. Technical institutions across the state will be divided among the three universities on a divisional basis. Separate legislation will be enacted for the functioning of the three institutions.
 
Healthcare maintenance gets Rs 1,404 crore: The Cabinet approved Rs 488.41 crore for continued maintenance and repair of medical equipment in government healthcare institutions from April 1, 2026, to March 31, 2031. A further Rs 915.77 crore was approved for maintenance of departmental assets in medical institutions during the same period. The programme will cover repair and maintenance of facilities including modular kitchens and modular operation theatres. New district offices get staff: The Cabinet approved 21 positions for running district offices of the Social Justice and Disabled Persons Empowerment Department in the newly created districts of Maihar, Mauganj and Pandhurna. The approval includes 15 regular positions and six outsourced Class-IV personnel across the three districts. It also approved creation of 20 posts for district Ayush offices in Niwari, Mauganj, Pandhurna and Maihar. Moong procurement limit raised:The Cabinet ratified the decision to increase the procurement limit for summer moong from registered farmers from 25% to 60% of their produce under the Price Support Scheme. The decision applies to the procurement of moong and urad from July 1, 2026, during the 2026-27 marketing year. The move follows the earlier Cabinet decision of February 24, 2026, which had limited procurement of summer moong from registered farmers to 25% of their produce.