Bhopal: The Madhya Pradesh government has formally begun its third term from 13 December, and the first cabinet meeting of this term was held on Tuesday, 16 December 2025, under the chairmanship of Chief Minister Dr. Mohan Yadav. In the meeting, the cabinet approved several important policy decisions aimed at accelerating development, improving employee welfare, strengthening infrastructure, and promoting employment across the state.
Major Relief for Government Employees
One of the most significant decisions taken by the cabinet was the removal of the distinction between permanent and temporary posts in state government services. Earlier, government employees were categorized under 10 different classifications, including regular, contractual, outsourced, part-time and others.
Due to this complex structure, many employees faced difficulties, especially after retirement. The cabinet has now reduced these classifications from 10 to 5, providing major relief to lakhs of employees. Going forward, only five essential categories—including regular, contractual, outsourced and part-time—will remain in government departments, while the remaining categories have been abolished.
Read also: MP CM Dr. Mohan Yadav Approves Major Development Projects to Transform Indore into Metropolitan Hub
Bhopal–Indore Metro Project
The cabinet approved a revenue expenditure proposal for the operation and maintenance of the Bhopal–Indore Metro Rail Project. For the financial year 2025–26, a provision of ₹90.67 crore has been made.
Deputy Chief Minister Rajendra Shukla stated that the state government often has to bear the gap between revenue and operational expenses. To reduce the burden on the state budget, this estimated allocation has been planned in advance.
Upper Narmada Multipurpose Project
The cabinet approved a special package of ₹1,782 crore for people affected by submergence due to the Upper Narmada Multipurpose Project at Basania and Raghavpur.
The project, being developed at a cost of ₹5,512 crore, will benefit the districts of Anuppur, Mandla and Dindori. Once completed, it will provide irrigation to 71,967 hectares of land and generate 125 megawatts of electricity, significantly boosting agricultural productivity and power availability in the region.
Mukhyamantri Udyam Kranti Yojana
Under the Mukhyamantri Udyam Kranti Yojana, the cabinet approved a budget of ₹905.25 crore, to be spent between 2026–27 and 2030–31.
The scheme aims to promote self-employment among youth aged 18 to 45 years, offering financial assistance ranging from ₹50,000 to ₹50 lakh. The scheme provides a 3 percent interest subsidy, loan guarantee for seven years, and fee subsidy. The cabinet has approved the continuation of this scheme for the next five years.
Establishment of Forest Science Centres
The cabinet approved the establishment of six Forest Science Centres in the state between 2025–26 and 2029–30, similar to Agricultural Science Centres. A budget of ₹48 crore has been sanctioned for setting up these centres.
These centres will focus on expanding forestry activities outside forest areas, improving forest land productivity, promoting non-timber forest produce, and creating additional income opportunities through awareness and training programs.
Mukhyamantri Gram Sadak and Infrastructure Scheme
Under the Mukhyamantri Gram Sadak and Infrastructure Scheme, the performance index has been increased from 2 to 3. As part of this initiative, 3,810 development works will be undertaken at a total cost of ₹693.76 crore, strengthening rural connectivity and infrastructure across the state.
