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

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Bhopal (Madhya Pradesh) | April 22, 2026 11:53:22 PM IST
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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