MP cabinet approves Rs 10,800 crore development push; major boost for urban infra, farmers
Bhopal, July 14
In a cabinet meeting held at the Mantralaya on Tuesday, the Madhya Pradesh Council of Ministers, chaired by Chief Minister Mohan Yadav, gave its nod to multiple development proposals worth Rs 10,800 crore aimed at strengthening infrastructure and enhancing public welfare across the state, a press note issued here on Tuesday said.
The Cabinet approved a massive Rs 8,445 crore for urban infrastructure development over the next five years. This funding, sourced from additional charges on registration and stamp duty under the Municipalities Act, will be transferred to a dedicated fund under the Commercial Taxes Department. The resources will be utilised by municipal corporations, councils, and Nagar Parishads for city rejuvenation projects and repayment of loans taken for urban development works.
In a major relief to farmers, the cabinet decided to provide a free government guarantee of Rs 1,587 crore for the procurement of "Moong" (green gram) under the Government of India's price support scheme for the Rabi season 2023-24 (marketing year 2024-25), the press note said. The guarantee covers Rs 396 crore from Punjab National Bank (for six months) and Rs 1,191 crore from State Bank of India (for one year).
Another key decision was the approval of Rs 245.45 crore for the continuation of the Kundalia Major Irrigation Project in Rajgarh district during the 16th Central Finance Commission period (2026-2031). The project aims to create irrigation potential for 1,39,600 hectares in Rajgarh and Agar-Malwa districts through dam construction and micro-irrigation systems.
In a significant administrative shift, the cabinet decided to transfer the production and supply of 'Take-Home Ration' for children from the Madhya Pradesh State Livelihood Forum to the Women and Child Development Department. As an interim measure, the department will procure nutritional supplements through SHGs (Self-Help Groups) and later operate through short-term tenders until new central guidelines are issued.
Also, the Cabinet approved Rs 521.04 crore for the operational expenses of the Commercial Taxes Department over the next five years (2026-27 to 2030-31). This includes allocations for headquarters (Rs 60.81 crore), district offices (Rs 434.81 crore), and zonal offices (Rs 25.42 crore) to cover salaries, office expenses, and maintenance.
— IANS
Reader Comments
Rs 8,445 crore for urban infrastructure over 5 years sounds impressive, but I'm concerned about accountability. As a resident of Indore, I see potholes every monsoon despite crores being spent. The Kundalia irrigation project for 1.39 lakh hectares in Rajgarh and Agar-Malwa could be transformational for farmers there - micro-irrigation is the need of the hour with depleting groundwater. Hope timelines are met. 🤞
The Take-Home Ration transfer to Women and Child Development is a sensible move - SHGs have better reach and transparency at grassroots. My mother works with an NGO in Bhopal and says local SHGs are often more efficient than large forums. However, short-term tenders as interim measure might create supply chain issues. Hope the transition is smooth for children who depend on this nutrition. 🙏
Interesting to see state-level infrastructure planning in action. The registration stamp duty funding model is quite innovative - creating dedicated urban development funds from transaction taxes. In Western countries, similar models exist through development impact fees. The moong procurement guarantee is crucial given farmer protests elsewhere. Good to see Madhya Pradesh taking proactive steps.
As someone from Rajgarh district, I can tell you irrigation projects are badly needed. Our area faces severe water scarcity and farmers struggle every summer. Rs 245 crore for Kundalia project is good, but why only till 2031? Such projects need long-term commitment beyond Finance Commission cycles. Also, 1.39 lakh hectares is huge - let's see if it actually materializes. 😕
D Deepak U The We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.