Bhopal: The Madhya Pradesh Cabinet, chaired by Chief Minister Dr. Mohan Yadav on October 15, 2026, approved several major proposals aimed at accelerating the state’s industrial growth, strengthening agricultural support, improving irrigation facilities and expanding education and healthcare infrastructure. The Cabinet approved development proposals worth approximately ₹27,050 crore, covering multiple departments and public welfare initiatives.
Among the key decisions were the formation of a government-owned company for the integrated development of the Jabalpur-Indore Economic Corridor, implementation of the Bhavantar scheme to ensure fair prices for soybean farmers, and approval of ₹241.88 crore for student transportation at 94 Sandipani schools.
The Cabinet also approved ₹3,076.37 crore for the continued operation of four irrigation projects, along with funding for judicial infrastructure, the State Information Commission, AYUSH institutions and government schools.
Jabalpur-Indore Economic Corridor to Get a Dedicated Development Company
To accelerate industrial development and attract investment, the Madhya Pradesh Cabinet approved the formation of the Jabalpur-Indore Economic Corridor Development Company Limited.
The company will be a fully government-owned special purpose vehicle (SPV), with complete ownership and control remaining with the Madhya Pradesh government. The state government will provide an initial paid-up capital of ₹100 crore to establish a strong financial foundation for the company.
Powers and Responsibilities of the Economic Corridor Company
The company will be empowered to undertake several activities related to the planned economic hubs, including:
- Identification and management of land.
- Land acquisition and development.
- Zoning, master planning and layout preparation.
- Land allocation, leasing and sub-leasing.
- Monetisation of land and related assets.
- Development of basic and social infrastructure.
- Promotion of industrial and economic activities within designated hubs.
Government land may be made available to the company at concessional rates or under prescribed conditions, subject to approval by the competent authority.
If forest land is required for a project, it can be made available only after fulfilling the applicable central and state laws, obtaining prior approvals and meeting requirements such as compensatory afforestation and Net Present Value (NPV) payments.
Industrial Parks, Logistics Hubs and Technology Parks Planned
The company will focus on developing shared infrastructure and economic activities within designated hubs. The construction of the main road or corridor itself will remain outside its scope.
Planned facilities and projects may include:
- Industrial parks and sector-specific parks.
- Food parks and agricultural processing parks.
- Logistics parks.
- Technology and IT parks.
- Global Capability Centres (GCCs).
- Residential and social infrastructure facilities.
The projects may be implemented through various legally permitted models, including Public-Private Partnerships (PPP), Engineering, Procurement and Construction (EPC) contracts, concessions, leasing, joint ventures and development agreements.
The company will also be authorised as an appropriate Investment Region Agency under the Madhya Pradesh Investment Region Development and Management Act, 2013. Subject to the applicable legal requirements, it will be assigned the necessary powers and responsibilities as the nodal agency for notified economic hubs under the Madhya Pradesh Ease of Doing Business Act.
The Department of Industrial Policy and Investment Promotion has been authorised to coordinate with the Finance, Revenue, Urban Development and Housing, Panchayat and Rural Development, Water Resources, Energy, Public Works, Forest and Law departments to issue the necessary notifications, government orders and statutory documents.
Madhya Pradesh Cabinet Approves Soybean Bhavantar Scheme for Farmers
The Cabinet approved the implementation of the Bhavantar scheme to help soybean farmers receive a fair price for their produce during the 2026 kharif season.
The scheme will operate in accordance with the guidelines of the Price Deficiency Payment Scheme (PDPS) under the Central Government’s Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA).
Its primary objective is to protect soybean farmers when market prices fall below the Minimum Support Price (MSP).
Soybean Registration and Sale Dates
Farmers seeking benefits under the scheme must register on the Food Department’s e-Uparjan portal by October 17, 2026.
The key dates are:
- Registration deadline: October 17, 2026.
- Eligible sale period: October 22, 2026, to January 15, 2027.
- Commodity covered: Soybean produced during the 2026 kharif season.
- Payment method: Direct Benefit Transfer (DBT) to registered bank accounts.
The sale period in notified mandis may be revised if required.
Payments will be calculated based on the farmer’s registered cultivated area and the state-level average productivity determined by the department for the previous year. If a farmer sells soybean between October 1 and October 21, 2026, before the scheme’s designated sale period, the quantity sold will be deducted from the farmer’s overall eligible quantity. Bhavantar payments will be allowed only for the remaining eligible quantity.
How the Soybean Bhavantar Payment Will Be Calculated
The government will use a model rate to calculate compensation under the scheme. During the first 14 days of the season, the model rate will be determined using the weighted average of prices across mandis in the state. This rate will remain effective from October 22 for the following 14 days.
After the initial period, the model rate will be calculated daily using the weighted average of prices over the preceding 14 days and displayed on the e-Mandi portal.
The payment mechanism will work as follows:
- When the sale price is equal to or above MSP: No compensation will be payable.
- When the sale price is below MSP but above the model rate: The farmer will receive the difference between MSP and the actual sale price.
- When the sale price is equal to or below the model rate: The farmer will receive the difference between MSP and the declared model rate.
The scheme will be monitored through implementation committees chaired by the Chief Secretary at the state level and district collectors at the district level.
The Mandi Board will transfer the Bhavantar amount directly to farmers’ registered bank accounts through DBT. Payments will initially be reimbursed through the Price Stabilisation Fund operated by the State Agricultural Marketing (Mandi) Board.
₹241.88 Crore Approved for Student Transport at 94 Sandipani Schools
The Cabinet approved ₹241.88 crore for transportation facilities for students attending 94 Sandipani schools operated under the Tribal Affairs Department.
Under the decision, the annual transportation allocation per student will increase from ₹10,000 to ₹21,000. The approved amount will also receive a 5% annual increase.
The transportation system will be managed through outsourcing, with an IT-based platform and monitoring arrangements to support implementation and oversight.
The decision is aimed at strengthening transportation facilities and improving access to education for students enrolled in these schools.
₹3,076.37 Crore Approved for Four Irrigation Projects
The Cabinet approved ₹3,076.37 crore for the continued operation of four irrigation projects in Burhanpur, Raisen, Mandsaur and Singrauli for the financial years 2026-27 to 2030-31.
The projects are expected to improve irrigation coverage, strengthen existing infrastructure and support agricultural activities across the districts.
The approved allocations and proposed irrigation coverage are as follows:
- Jhirmiti Medium Irrigation Project, Burhanpur: ₹922.91 crore approved to provide irrigation to approximately 17,700 hectares across 42 villages.
- Barna Major Irrigation Project, Raisen: ₹82.49 crore approved for the expansion, strengthening and modernisation of canals, with existing irrigation coverage of approximately 91,000 hectares.
- Kayampur-Sitamau Pressurised Micro-Irrigation Project, Mandsaur: ₹750.83 crore approved to provide irrigation facilities to approximately 1,12,000 hectares.
- Chitrangi Pressurised Micro-Irrigation Project, Singrauli: ₹1,320.14 crore approved to provide irrigation facilities to approximately 32,125 hectares.
- Total allocation: ₹3,076.37 crore approved for the continued operation of all four irrigation projects from 2026-27 to 2030-31.
Jhirmiti Medium Irrigation Project, Burhanpur
The Cabinet approved ₹922.91 crore for the continued operation of the Jhirmiti Medium Irrigation Project from 2026-27 to 2030-31. The project will provide irrigation to approximately 17,700 hectares of agricultural land across 42 villages in the Khandwa district’s neighbouring Burhanpur region?
Barna Major Irrigation Project, Raisen
An allocation of ₹82.49 crore was approved for the continued operation of the Barna Major Irrigation Project. The primary objective is to expand, strengthen and modernise the project’s existing canal network.
The project currently provides irrigation to approximately 91,000 hectares.
Kayampur-Sitamau Irrigation Project, Mandsaur
The Cabinet approved ₹750.83 crore for the continued operation of the Kayampur-Sitamau pressurised micro-irrigation project. The scheme is expected to provide irrigation facilities to approximately 1,12,000 hectares in Mandsaur district through a pressurised micro-irrigation system.
Chitrangi Irrigation Project, Singrauli
The Chitrangi pressurised micro-irrigation project received an allocation of ₹1,320.14 crore for continued operation. The project is designed to provide irrigation facilities to approximately 32,125 hectares through a pressurised micro-irrigation system.
₹15,557.35 Crore Approved for Law and Judicial Schemes
The Cabinet approved ₹15,557.35 crore for the continuation of various schemes under the Law and Legislative Affairs Department during the 16th Finance Commission period, covering April 1, 2026, to March 31, 2031. The approved amount includes funding for judicial administration, court computerisation, special courts, salaries and allowances, maintenance of departmental assets and construction of court buildings.
The allocation has been divided as follows:
- ₹1,624.69 crore: Continuation of 11 schemes, including administrative tribunals, court computerisation and special courts under the Registrar of the Madhya Pradesh High Court.
- ₹150 crore: Maintenance of departmental assets.
- ₹12,252.66 crore: Salaries, allowances and office expenses for judicial officers and court employees across subordinate courts, including district and sessions courts and civil courts.
- ₹1,530 crore: Schemes related to the construction of court buildings.
The funding is intended to ensure the continued operation of judicial services and support the maintenance and development of court infrastructure across Madhya Pradesh.
₹71.81 Crore Approved for State Information Commission
The Cabinet approved ₹71.81 crore for the continuation of schemes related to the establishment of the State Information Commission and the maintenance of departmental assets under the General Administration Department.
The funding will cover the financial years 2026-27 to 2030-31.
The allocation includes:
- ₹69.61 crore: Salaries, allowances and other expenses for officers and employees of the State Information Commission.
- ₹2.20 crore: Maintenance of departmental assets.
The approval will support the continued functioning of the commission and the maintenance of the department’s infrastructure during the 16th Finance Commission period.
₹1,697.62 Crore Approved for National AYUSH Mission
The Cabinet approved ₹1,697.62 crore for the continued operation of the National AYUSH Mission during the 16th Central Finance Commission period, from April 1, 2026, to March 31, 2031.
The National AYUSH Mission, launched by the Ministry of AYUSH, Government of India, aims to integrate AYUSH systems of medicine into mainstream healthcare. In Madhya Pradesh, the programme supports the development and establishment of AYUSH hospitals, dispensaries and colleges.
Construction work on seven approved Ayurveda colleges and one additional Ayurveda college funded through the District Mineral Foundation is underway in Dindori district.
₹3,535 Crore for AYUSH Colleges and Hospitals
The Cabinet also approved ₹3,535 crore for the continuation of the AYUSH Department’s umbrella scheme covering AYUSH colleges and hospitals during the period from April 1, 2026, to March 31, 2031.
The approved allocation includes:
- ₹3,072.54 crore: Schemes related to Ayurveda colleges.
- ₹280.05 crore: Government Homeopathy College.
- ₹182.20 crore: Unani College.
- ₹31 lakh: Late Pandit Uddhavdas Mehta Vaidya Shastri Ayurveda Award.
The umbrella scheme supports the establishment and operational expenditure of seven Ayurveda colleges, one Homeopathy college and one Unani college, along with the construction of their buildings.
₹2,875.20 Crore Approved for Government School Infrastructure
The Cabinet approved ₹2,875.20 crore for the continued implementation of a scheme covering the construction and expansion of government schools, hostels, libraries and residential sports buildings from FY2026-27 to FY2030-31.
Madhya Pradesh currently has 7,122 government high schools and higher secondary schools under the School Education Department.
The scheme will support the development of classrooms, laboratories, libraries, computer rooms, principals’ offices, staff rooms and school campuses. It will also provide facilities such as student furniture, green boards, interactive panels and security cameras.
The investment aims to improve educational infrastructure and provide better facilities for students and school staff across the state.
24 New Posts Approved for Women and Child Development Department
The Cabinet approved the creation and adjustment of posts for the District Programme Officer offices of the Women and Child Development Department in four newly formed districts: Niwari, Mauganj, Pandhurna and Maihar.
The decision covers 24 new posts and the adjustment of 12 posts through redeployment.
The Cabinet also approved human resources through outsourcing, in accordance with central government approvals, for programmes including the Integrated Child Protection Scheme and Saksham Anganwadi and POSHAN 2.0.
The move is aimed at strengthening departmental administration and supporting the implementation of women and child welfare programmes in the newly formed districts.
Key Decisions Taken by the Madhya Pradesh Cabinet
The major decisions announced by the state government include:
- ₹27,050 crore: Approval for proposals aimed at accelerating the state’s overall development.
- Jabalpur-Indore Economic Corridor: Formation of a fully government-owned special purpose vehicle (SPV) for integrated development of the corridor’s economic hubs.
- Soybean Bhavantar Scheme: Approval to implement the price difference payment scheme for soybean farmers during the 2026 kharif season.
- ₹241.88 crore: Approval for transportation facilities for students of 94 Sandipani schools.
- ₹3,076.37 crore: Approval for the continued operation of four irrigation projects in Burhanpur, Raisen, Mandsaur and Singrauli.
- ₹15,557.35 crore: Approval for the continuation of various schemes under the Law and Legislative Affairs Department for the 16th Finance Commission period.
- ₹1,697.62 crore: Approval for the continuation of the National AYUSH Mission.
- ₹3,535 crore: Approval for the continuation of the umbrella scheme for AYUSH colleges and hospitals.
- ₹2,875.20 crore: Approval for the continued development and expansion of government schools, hostels, libraries and residential sports buildings.
Madhya Pradesh Cabinet’s Focus on Development and Public Welfare
The decisions taken at the October 15 Cabinet meeting cover industrial development, agricultural price support, irrigation, education, healthcare and judicial infrastructure.
The proposed Jabalpur-Indore Economic Corridor Development Company is intended to strengthen industrial investment and develop integrated economic hubs. Meanwhile, the soybean Bhavantar scheme aims to protect farmers against market price fluctuations, while allocations for irrigation and school infrastructure are expected to support agriculture and public services.
With approvals spanning several departments, the Cabinet’s decisions represent a broad development agenda for Madhya Pradesh during the 2026-27 to 2030-31 period.
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