MP Boosts Farmer Compensation 4x & Approves ₹34K Crore for Development

The Madhya Pradesh cabinet, chaired by Chief Minister Mohan Yadav, has approved a major policy hike, increasing compensation for acquired rural agricultural land to four times the market value. It also sanctioned nearly ₹34,000 crore for a wide range of infrastructure and development works across sectors. Key allocations include over ₹25,000 crore for road and bridge projects and significant funding for health, education, and irrigation schemes like the Chhindwara Irrigation Complex. These decisions aim to accelerate state development while providing enhanced support to farmers and displaced families.

Key Points: MP Hikes Land Compensation, Approves ₹34K Crore for Projects

  • 4x compensation for rural land
  • ₹33,985 crore infra push approved
  • Major irrigation & road projects funded
  • Health & education schemes get boost
3 min read

MP Cabinet approves major spending push, farmers to get four times compensation for land acquisition in rural areas

MP cabinet raises rural land acquisition pay to 4x market rate & sanctions ₹33,985 crore for irrigation, health, education, and road infrastructure.

"farmers will now receive four times the market rate - State Cabinet"

Bhopal, April 22

Madhya Pradesh Chief Minister Mohan Yadav chaired a cabinet meeting held at the state secretariat in Bhopal on Wednesday, with the council of ministers giving nod to the various key decisions.

In a key policy decision aimed at benefiting farmers, the cabinet approved an increase in compensation for the acquisition of agricultural land in rural areas, ensuring that farmers will now receive four times the market rate. The decision comes after the Cabinet doubled the multiplication factor to 2.0 under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules, 2015.

With this revision, compensation for rural agricultural land will rise from double to four times the market value, while the existing compensation structure in urban areas remains unchanged.

The Cabinet also approved approximately Rs 33,985 crore for infrastructure construction and development works such as irrigation, health, education, and roads.

Among the approved proposals, the council of ministers granted administrative approval of Rs 157.14 crore for the Indaukh-Rudhahera Micro Irrigation Project in Ujjain district, which will cover a catchment area of 10,800 hectares and benefit 35 villages in Jharda tehsil.

The Cabinet also cleared a revised rehabilitation package of Rs 969 crore for the Chhindwara Irrigation Complex Project, replacing the earlier approved Rs 840.80 crore. The enhanced package, aligned with the Ken-Betwa river linking project, aims to ensure better support for displaced families. The project includes four proposed dams and is expected to provide irrigation to 1.9 lakh hectares across Chhindwara and Pandhurna districts, benefiting a total of 628 villages.

Similarly, the Council of Ministers approved Rs 25,164 crore for road, bridge, and infrastructure development works under the Public Works Department. This includes allocations for road construction, rural road upgradation, bridge works, and maintenance of government assets through the MP Road Development Corporation over the next five years.

Additionally, the Cabinet approved Rs 2,190 crore for education-related initiatives, which include Rs 990 crore for continuation of the Free Bicycle Scheme for students in classes 6 and 9 in rural government schools, and Rs 1,200.44 crore for strengthening educational institutions and teacher training systems.

In the health sector, a total outlay of Rs 5,479 crore was approved to enhance advanced medical services in the state. This includes Rs 3,628 crore under the CM CARE 2025 scheme to strengthen tertiary healthcare infrastructure such as oncology, cardiology, and organ transplant facilities. An additional Rs 1,503 crore has been allocated for upgrading medical colleges, along with revised approval for a new government medical college in Mandla.

The Cabinet also approved the establishment of family rest houses within government medical college campuses through charitable organisations. These facilities aim to provide affordable accommodation to relatives of patients, reducing pressure on hospital infrastructure.

Furthermore, approval was given for the creation of 15 posts for the Sixth State Finance Commission for a fixed tenure. The Cabinet also sanctioned Rs 23.9 crore for the third phase of the Chief Minister's Young Professionals for Development Program for a period of three years.

- ANI

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Reader Comments

P
Priya S
While the increased compensation is welcome, I'm more impressed by the holistic approach. ₹33,985 crore for irrigation, health, education, and roads? That's development planning. The focus on tertiary healthcare and medical colleges is much needed for MP.
R
Rohit P
Good decisions on paper. But the real test is on the ground. We've seen big announcements before where funds get stuck or delayed. Hope the CM ensures timely execution, especially for the irrigation projects. Farmers have waited long enough.
S
Sarah B
The family rest houses in medical colleges is a brilliant and humane idea. Anyone who has had a relative in a hospital knows the struggle and cost of staying nearby. This small step can make a huge difference to patient families.
V
Vikram M
₹25,164 crore for roads and bridges! This is the infrastructure push MP needs. Better connectivity will boost everything - agriculture, tourism, business. Hope they focus on quality construction, not just laying new roads.
K
Kavya N
As a teacher, I'm very happy to see ₹2,190 crore for education. The free bicycle scheme is great for girl students in rural areas. But I hope a significant part of the teacher training budget is used effectively, not just on seminars.
M
Michael C
This seems like a comprehensive budget allocation

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