Cabinet clears MSP hike for Kharif crops, farm credit score aid, and railway infra enlargement | Key particulars

The Union Cabinet on Tuesday authorized a spread of serious measures impacting agriculture and infrastructure, together with a contemporary hike within the Minimum Support Prices (MSP) for Kharif crops, continuation of the Interest Subvention Scheme for farmers, and inexperienced indicators for key street and rail initiatives throughout Andhra Pradesh, Madhya Pradesh, and Maharashtra.

MSP hike for Kharif crops ensures 50% revenue margin over price

Union Minister Ashwini Vaishnaw mentioned the Cabinet has authorized the MSP for Kharif crops for the 2025–26 season, based mostly on the suggestions of the Commission for Agricultural Costs and Prices (CACP). The estimated procurement outlay stands at Rs 2.07 lakh crore.

“In the past 10–11 years, there has been a major hike in Kharif crop MSPs. Prime Minister Narendra Modi has ensured that farmers receive at least 50% profit over their production cost. We have accordingly ensured that across all crops, this margin is protected,” Vaishnaw mentioned.

Subsidised farm loans below Interest Subvention Scheme to proceed

The Cabinet additionally cleared the continuation of the Interest Subvention Scheme, which gives short-term credit score to farmers at a concessional rate of interest. Farmers will proceed to get working capital loans as much as Rs 2 lakh at an efficient rate of interest of 4%.

Vaishnaw mentioned the Kisan Credit Card (KCC) initiative, first launched in the course of the tenure of former Prime Minister Atal Bihari Vajpayee, had made entry to working capital simpler for farmers. “Through this scheme, we have reduced the cost of credit and enabled easier access to loans for small and marginal farmers,” he added.

New 4-lane freeway in Andhra Pradesh below DBFOT mannequin

In a lift to street infrastructure, the Cabinet authorized the event of a 4-lane freeway connecting Badvel-Gopavaram on National Highway-67 to Guruvindapudi on NH-16 in Andhra Pradesh. The undertaking will comply with the Design-Build-Finance-Operate-Transfer (DBFOT) mannequin.

Giving particulars about it, Union Minister Ashwini Vaishnaw mentioned, “There is Krishnapatnam Port in Andhra Pradesh. Its last section, NH-67 was a bottleneck. Around 105 kilometres has been approved as a four-lane highway (Badvel Nellore 4-lane highway). This is being done at an expense of Rs 3,653 crores.”

Railway community enlargement in MP and Maharashtra

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, additionally authorized two key multitracking railway initiatives aimed toward rising line capability, enhancing connectivity, and guaranteeing quicker, extra environment friendly motion of each passengers and items.

The authorized initiatives are:

1. Ratlam–Nagda third and 4th line (Madhya Pradesh)
2. Wardha–Balharshah 4th line (Maharashtra)

Together, the initiatives are estimated to price Rs 3,399 crore and are anticipated to be accomplished by 2029–30. The enlargement will cowl about 176 km of further railway strains and profit 4 districts throughout each states. “These initiatives are part of the PM-Gati Shakti National Master Plan, aimed at integrated, multi-modal connectivity,” the federal government mentioned in an announcement. The multitracking is anticipated to enhance connectivity for round 784 villages, residence to almost 19.74 lakh individuals.

Highlighting the strategic worth of the Ratlam–Nagda undertaking, Vaishnaw mentioned: “This is an important project as it connects the Delhi–Mumbai corridor. Ratlam junction is a key node for rail movement in all four directions, and this upgrade will close long-standing infrastructure gaps.”

Speaking concerning the Wardha–Ballarshah railway line, Vaishnaw mentioned: “This project involves the four-laning of the Wardha–Ballarshah line, which lies on the busy trunk route between Delhi and Chennai. It is a highly congested section, and enhancing its capacity is essential. The project will span 135 km and will involve an investment of Rs 2,381 crore.”

(With inputs from company)