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Cabinet Clears PM Dhan-Dhaanya Krishi Yojana & ₹27,000 Cr Green Energy Investment.

National | Dated: 18 Jul 2025

On July 16, 2025, the Union Cabinet, chaired by Prime Minister (PM) Narendra Modi, approved a series of landmark proposals including a mega agriculture scheme named PM Dhan-Dhaanya Krishi Yojana (PM-DDKY), major renewable energy investments by NTPC Limited and NLCIL, and a resolution celebrating the space achievement of Group Captain Shubhanshu Shukla. These decisions reflect the government’s multi-sectoral push in agriculture, green energy, and space science.

🎯 Key Highlights:

  • - The Cabinet approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PM-DDKY) for a six-year period from 2025–26 to 2031–32, with an annual outlay of Rs. 24,000 crores. The scheme consolidates and merges 36 existing agricultural schemes across 11 central departments, thereby bringing synergy, avoiding duplication, and improving farmer outcomes. This marks a major step in rationalising public expenditure in the agri-sector and ensuring targeted support.
  • - The Cabinet Committee on Economic Affairs (CCEA) also approved investment exemption for NLC India Limited (NLCIL), a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Coal, enabling it to invest Rs. 7,000 crores in its wholly owned subsidiary NLC India Renewables Limited (NIRL). This exemption allows NLCIL and NIRL to bypass the 30% net-worth cap mandated by the Department of Public Enterprises (DPE), under the Ministry of Finance (MoF), thereby facilitating faster and larger investments in renewable energy.
  • - In another key green energy move, CCEA cleared enhanced delegation of powers to NTPC Limited, allowing the company to invest up to Rs. 20,000 crores in its green energy arm NTPC Green Energy Limited (NGEL) and its subsidiaries. This will significantly aid in the setting up of new Renewable Energy (RE) capacity across India. NTPC, a Maharatna CPSE under the Ministry of Power, has been taking the lead in India’s clean energy transition.

💡 Other Important Facts:

  • (i) The Union Cabinet also passed a special resolution to honour Group Captain Shubhanshu Shukla, the Indian astronaut and IAF officer, for the successful completion of the Axiom-4 space mission, a historic 18-day mission aboard the International Space Station (ISS). His participation marked India’s growing role in international space collaboration and human spaceflight. This is the first time an Indian Air Force officer has been officially recognised by the Cabinet post an international manned mission.
  • (ii) The PM-DDKY scheme will integrate schemes from ministries such as the Ministry of Agriculture & Farmers Welfare (MoAFW), Ministry of Rural Development, Ministry of Jal Shakti, and Ministry of Food Processing Industries, among others. It will offer components like infrastructure support, climate-smart farming, irrigation enhancement, and post-harvest management—all under a unified administrative framework.
  • (iii) These decisions reflect the government's focus on triple front advancement—boosting agriculture productivity, accelerating renewable energy investments, and promoting India’s global leadership in space technology. The cumulative approved investment across green energy sectors on this date alone touches Rs. 27,000 crores, marking one of the most financially significant cabinet meetings of the year.

📚 Test Your Knowledge:

As per the recent Union Cabinet approval in July 2025, the total annual budget allocated under the PM Dhan-Dhaanya Krishi Yojana (PM-DDKY) scheme for agriculture development is?

Correct Answer: ₹24,000 crore

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