Modi Cabinet Approves Major Proposals Worth ₹2.79 Lakh Crore

In a pivotal cabinet meeting on September 30, 2026, Prime Minister Narendra Modi's government approved three major proposals totaling ₹2.79 lakh crore. This includes an increase in the minimum support price (MSP) for six key rabi crops, aimed at enhancing farmers' income. Additionally, the PM DHARA program was greenlit to bolster renewable energy infrastructure, while an Intelligent Traffic Management System was approved for Delhi to improve urban traffic flow. These decisions reflect the government's commitment to agricultural support and urban development.

By Narendra Chaudhary Sep 30, 2026, 17:50 IST

Key Decisions from the Cabinet Meeting

On September 30, 2026, a significant cabinet meeting led by Prime Minister Narendra Modi approved three crucial proposals related to agriculture, energy, and urban transport. The total financial implication of these decisions is estimated at ₹2,79,157 crore. This includes an increase in the minimum support price (MSP) for six major rabi crops for the marketing season 2027-28.

Increase in MSP for Six Rabi Crops

The cabinet has sanctioned an increase in the MSP for wheat, barley, chickpeas, lentils, mustard, and kusum. The new rates will be applicable for the marketing season 2027-28. Notably, the MSP for kusum has seen the highest increase of ₹675 per quintal, while wheat's MSP has been raised by ₹25 per quintal.

MSP Increase Details

Crop	New MSP	Increase
Wheat	₹2,610/quintal	₹25
Barley	₹2,286/quintal	₹136
Chickpeas	₹5,958/quintal	₹83
Lentils	₹7,390/quintal	₹390
Mustard	₹6,613/quintal	₹413
Kusum	₹7,215/quintal	₹675

According to government estimates, the profit margins compared to the production costs for these crops are 106% for wheat, 96% for mustard, 92% for lentils, 59% for chickpeas, 58% for barley, and 50% for kusum.

Financial Impact of MSP Increase

The increase in MSP for rabi crops is expected to have a financial impact of approximately ₹90,962 crore on the government. This is a significant component of the total ₹2,79,157 crore package approved by the cabinet.

Approval of PM DHARA Program

The cabinet also approved the PM DHARA program, which aims to develop the necessary transmission and smart-grid infrastructure to connect renewable energy to the power grid. A budget of ₹1,86,405 crore has been allocated for this initiative.

The goal is to enhance the infrastructure required to integrate the growing solar and wind energy capacities into the main electricity grid.

Intelligent Traffic Management System for Delhi

Another significant decision from the cabinet pertains to traffic management in Delhi. The implementation of an Intelligent Traffic Management System (ITMS) has been approved, focusing on improving traffic monitoring and management through technology. An estimated budget of ₹1,790 crore has been approved for this project.

This system is proposed to be utilized for managing traffic congestion, road safety, and vehicle movement.

Total Financial Package Overview

The total value of the three proposals approved by the central cabinet amounts to ₹2,79,157 crore. This includes ₹90,962 crore for the MSP of rabi crops, ₹1,86,405 crore for the PM DHARA program, and ₹1,790 crore for the ITMS in Delhi.

Thus, the recent cabinet decisions encompass support for farmers through MSP, infrastructure for renewable energy, and modern traffic management for Delhi.