Madhya Pradesh cabinet approves ₹41,000 crore development projects package

The Madhya Pradesh cabinet, chaired by Chief Minister Dr. Mohan Yadav, approved major development projects worth over ₹41,000 crore at a meeting held on September 1. The decisions encompass infrastructure development, education, agriculture, and public welfare, aimed at strengthening the state's overall development and basic infrastructure.

The cabinet ratified the "Viksit Bharat (Gramin): VB G Ram G Viksit Bharat G Ram G Yojana Madhya Pradesh" scheme, which will come into effect from July 1, 2026. For its implementation, an estimated cost of ₹3,183 crore has been approved for the financial year 2026-2027. The total estimated cost for the scheme's continuation from 2026-27 to 2030-31 is ₹26,436 crore, bringing the total financial commitment to ₹29,619 crore. The Centre and state will share the financial burden in a 60:40 ratio, with the state's share amounting to ₹10,574 crore. Over these five years, ₹946 crore will be spent on administrative expenses, which the state government will bear.

Under the new scheme, adult members of families living in rural areas who are willing to work will now be provided a legal guarantee of 125 days of wage employment per financial year, increased from the current 100 days. This increase in employment days is expected to strengthen the rural economy and expand livelihood opportunities at the local level. The new scheme is based on aligning rural infrastructure with the national vision of "Viksit Bharat @2047." Each gram panchayat will now prepare a "Viksit Gram Panchayat Yojana" using GIS-based technology, PM Gati Shakti layers, and digital public infrastructure.

These plans will be integrated into the Viksit Bharat National Rural Infrastructure Stack through a digital portal. To effectively execute technical works such as water security, climate-adapted engineering, data science, and advanced livelihood models under the scheme, a dedicated state-level project management unit will be established in the Madhya Pradesh State Rural Employment Guarantee Council. To make the financial allocation received by the state transparent and need-based in accordance with the central government's guidelines, gram panchayats will be classified into A, B, and C categories based on development criteria. To ensure complete transparency in the scheme, biometric attendance, digital muster rolls, and social audits every six months have been made mandatory. Additionally, a 'Lokpal' will be appointed in each district for quick grievance redressal, who will resolve complaints through a digital platform. The council has authorized the existing Madhya Pradesh State Employment Guarantee Council to discharge all responsibilities of this new scheme under interim arrangements until the new council is fully constituted and registered.

In the interest of the state's milk producers, the cabinet approved ₹2,973 crore for upgrading the cooperative system and the Sanchi brand. Through the Dairy Development Scheme, cooperative milk societies will be expanded from 7,331 villages to 26,000 villages over the next five years. Milk collection will be increased from 12 lakh kilograms per day to 52 lakh kilograms per day. Milk processing capacity will be enhanced from 17.8 lakh litres to 63.3 lakh litres per day. Packaged milk sales will rise from 7 lakh litres per day to 35 lakh litres per day. Artificial insemination coverage will be increased from 15% to 50%. A collaboration agreement between the Madhya Pradesh government, M.P. State Co-operative Dairy Federation and affiliated milk unions, and the National Dairy Development Board (NDDB) was executed on April 13, 2025, for the operation and management of the M.P. State Co-operative Dairy Federation and affiliated milk unions. Under the executed collaboration agreement, NDDB has given in-principle approval to the proposed Dairy Development Scheme worth ₹2,973 crore. The state government approved a grant of ₹500 crore for infrastructure, along with an estimated state share of ₹241 crore in accordance with central government schemes and the implementation of various scheme components.

The cabinet gave revised approval for the construction of the West Bhopal Bypass 4-lane with paved shoulder, spanning 35.61 km, under the Hybrid Annuity Model (HAM) at a total project financial cost of ₹3,225.51 crore. Additionally, approval was granted for payment of ₹548.29 crore for pre-construction activities through the state budget. The construction of this bypass will mean that vehicles traveling from Jabalpur and Narmadapuram to Indore will not have to pass through Bhopal, reducing the distance by 21 kilometers. Previously, administrative approval of ₹2,981.65 crore was granted on September 4, 2023, for the West Bhopal Bypass 4-lane with paved shoulder under the Hybrid Annuity Model (40:60) for a length of 40.90 km. The alignment of the West Bhopal Bypass was to start from Itayakalan near Mandideep on the Bhopal-Jabalpur road and extend up to near village Fanda on the Bhopal-Dewas road, with a length of 40.90 km. Due to the declaration of Ratapani Tiger Reserve in the West Bhopal Bypass area, the impact of the Environment Department's notification in the catchment area of Bada Talab, the ancient heritage Shiv temple (Samasgarh) of the State Archaeology Department coming on the alignment, and connecting the bypass with the eastern bypass to create a complete ring road, changes were made to the alignment. Due to changes in the alignment, the project cost increased by 8.18 percent from the previous approval, necessitating revised administrative approval from the council. According to the decision, 40 percent of the project construction cost, amounting to ₹599.44 crore, will be paid in 10 installments upon achieving milestones specified in the concession agreement, and payment of the net positive cost amount will be made during the construction period according to the agreement's provisions through the State Highway Fund. The remaining 60 percent of the project construction cost, amounting to ₹1,910.42 crore, will be paid as six-monthly annuities over 15 years during the operation period, including annuity, O&M, and interest, through the state budget.

The cabinet approved the establishment of three separate technology and skill universities in the state in place of the current Rajiv Gandhi Proudyogiki Vishwavidyalaya (RGPV) Bhopal, keeping in mind the promotion of technical education, regional balance, and availability of infrastructure. These universities will be established in Bhopal, Ujjain, and Jabalpur. Under this arrangement, the current Bhopal-based university will be established as 'Central India Technology and Skill University,' the autonomous engineering college in Ujjain as 'Malwa Technology and Skill University,' and the autonomous engineering college in Jabalpur as 'Mahakaushal Technology and Skill University.' Currently, RGPV has 13 courses, 585 institutions, and over 3.83 lakh students studying under it. Under the approved arrangement, all technical colleges in the state have been divided division-wise and assigned to the jurisdiction of the three newly formed universities. Under the Bhopal-based Central India Technology and Skill University, Bhopal, Narmadapuram, Chambal, and Gwalior divisions will come. Under the Ujjain-based Malwa Technology and Skill University, Ujjain and Indore divisions will be included. Similarly, under the Jabalpur-based Mahakaushal Technology and Skill University's jurisdiction, technical institutions from Jabalpur, Rewa, Sagar, and Shahdol divisions will be included. Separate acts will be implemented for the operation of all three universities. For the administrative operation of both newly established universities in Ujjain and Jabalpur, positions of Vice-Chancellor, Registrar, Controller of Examinations, Deputy Registrar, and Finance Officer have been approved at the initial level. Other supporting and technical positions will be filled through outsourcing as per rules. The salaries for these positions will initially be drawn from the available funds of the universities, and these institutions will operate on a self-financing basis. The council also approved the formation of a high-level 'Madhya Pradesh Technology University Empowered Committee' under the chairmanship of the Chief Secretary to expedite the establishment of the three universities and subsequent actions. This committee includes secretaries from Technical Education, Skill Development and Employment, Finance, Higher Education, and General Administration departments, along with the Vice-Chancellor of Central India Technology University and the Commissioner of Technical Education as member secretary.

The cabinet gave administrative approval for the construction of the Mehlua-Bina-Khimlasa-Malthon road, spanning 67.116 km, as a 4-lane with paved shoulder under the Hybrid Annuity Model (HAM), at a total project financial cost of ₹2,776.83 crore. Additionally, approval was granted for payment of ₹428.94 crore for pre-construction activities (land acquisition and other works) and ₹65.77 crore for supervision charges through the state budget. The Mehlua-Bina-Khimlasa-Malthon project construction cost is ₹1,151 crore. Forty percent of the total project construction cost, amounting to ₹543.27 crore (including GST), will be paid during the construction period through loans taken by M.P. Road Development Corporation, and the remaining 60 percent of the total project construction cost, amounting to ₹1,738.85 crore (including GST), will be paid as six-monthly annuities over 15 years during the operation period through the state budget. The proposed road starts from Mehlua Chauraha on N.H.-346 Vidisha-Chanderi and, crossing N.H.-934 Heerapur-Bina at Bina, connects to N.H.-44 North South Corridor at Malthon. This road is extremely important for regional, inter-state, and industrial traffic. Due to the presence of BPCL Refinery, Thermal Power Plant, railway yard, and major industries in the Bina urban area, the number of heavy vehicles is high. This road has high potential to develop as a strong economic and logistics corridor in the future.

The council approved ₹488.41 crore for the continuous operation of the scheme related to maintenance of machines and equipment in health institutions from April 1, 2026, to March 31, 2031. Under this scheme, maintenance and repair work of machines and equipment supplied to medical institutions in the state will be carried out. The council approved ₹915.77 crore for the continuous operation of the scheme related to maintenance of departmental assets from April 1, 2026, to March 31, 2031. Under the scheme, repair work of modular kitchens, modular OTs, etc., in medical institutions of the state is carried out. The council approved the creation of 15 new regular posts, including one post of Deputy Director, one post of Assistant Grade-2, and three posts of Assistant Grade-3 in each district for operating district offices of the Social Justice and Divyang Empowerment Department in the newly formed districts of Maihar, Mauganj, and Pandhurna, along with approval for two human resources per district through outsourcing, totaling 6.

The council approved the creation of 20 posts for operating district AYUSH offices in newly formed districts Niwari, Mauganj, Pandhurna, and Maihar. According to the approval, four posts of District AYUSH Officer with pay scale ₹15,600-39,100-6,600 grade pay, four posts of Assistant Grade-1 Head Clerk with pay scale ₹5,200-20,200-2,800 grade pay, four posts of Accountant with pay scale ₹5,200-20,200-2,800 grade pay, and four posts of Assistant Grade-2 with pay scale ₹5,200-20,200-2,400 grade pay have been approved for the four district offices. The council ratified the Chief Minister's decision for procurement of moong and urad in the Rabi marketing year 2026 starting from July 1, 2026. Notably, in Rabi year 2025-26 (marketing year 2026-27), the council's decision of February 24, 2026, which stipulated procurement of only 25 percent of production from registered farmers under the Price Support Scheme for summer moong procurement, was partially amended, and a decision was taken to procure up to 60 percent of production from registered farmers for moong.