Union Cabinet Approves Key Economic and Infrastructure Initiatives on May 28, 2025.
National
On May 28, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, sanctioned several significant proposals aimed at bolstering India's infrastructure, agriculture, and technological advancements. These decisions encompass a range of sectors, reflecting the government's commitment to holistic national development.
- The Cabinet approved two major railway multitracking projects in Maharashtra and Madhya Pradesh, with a combined investment of ₹3,399 crore. These projects aim to enhance rail capacity and efficiency in these regions.
- A 4-lane highway connecting Badvel and Nellore in Andhra Pradesh received approval, with an estimated cost of ₹3,653.10 crore. This project is expected to improve regional connectivity and boost economic activities.
- The Cabinet approved an increase in the MSP for 14 Kharif crops for the 2025-26 marketing season. Notably, the MSP for paddy was raised by ₹69 per quintal, aiming to provide better financial returns to farmers.
Main Point :- (i) The Cabinet approved the development of a major port at Vadhavan in Maharashtra's Palghar District, with a total project cost of ₹76,220 crore. Upon completion, this all-weather, Greenfield deep draft port is expected to rank among the top 10 ports globally.
(ii) A Viability Gap Funding (VGF) scheme for offshore wind energy projects was sanctioned, with an outlay of ₹7,453 crore. This includes ₹6,853 crore for the installation and commissioning of 1 GW of offshore wind energy projects and ₹600 crore for upgrading ports to meet logistics needs.
(iii) The Pradhan Mantri Fasal Bima Yojana and Restructured Weather-Based Crop Insurance Scheme were extended till 2025-26, with an overall outlay of ₹69,515.71 crore. Additionally, a one-time special package on Di-Ammonium Phosphate (DAP) beyond the Nutrient-Based Subsidy (NBS) was approved to ensure affordable fertilizers for farmers.
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