Among them is a Rs 33,660 crore scheme to set up 100 plug-and-play industrial parks across the country, alongside a key highway project in Uttar Pradesh, MSP funding support for cotton farmers, and a new small hydro power scheme.
The industrial parks scheme — Bharat Audyogik Vikas Yojna (BHAVYA) — aims to boost manufacturing by creating ready-to-use industrial ecosystems with pre-approved land, infrastructure and single-window clearances. The programme will be implemented in partnership with states and private players, and is expected to reduce entry barriers for investors.
Under the scheme, parks ranging from 100 to 1,000 acres will be developed with financial support of up to Rs 1 crore per acre for core, value-added and social infrastructure. Additional support of up to 25% of project cost will be provided for external connectivity. Projects will be selected through a challenge-based process.
The government said the parks will be aligned with PM GatiShakti principles, focusing on multimodal connectivity, green energy use and integrated infrastructure. The scheme is expected to generate large-scale employment and boost domestic supply chains by enabling cluster-based industrial development.
In a separate decision, the Cabinet Committee on Economic Affairs (CCEA) approved the construction of a 101.5-km, four-lane access-controlled stretch of NH-927 from Barabanki to Bahraich in Uttar Pradesh at a cost of Rs 6,969 crore under the hybrid annuity model.The project aims to ease congestion, improve road safety and cut travel time to about an hour. It will also enhance connectivity to economic, social and logistics nodes, and facilitate cross-border trade with Nepal via the Rupaidiha land port. The corridor is expected to support regional economic activity, including agriculture, tourism and trade.
The Cabinet also approved MSP-related support for cotton for the 2023–24 season, including Rs 1,718.56 crore in funding to the Cotton Corporation of India (CCI) to cover procurement losses.
Overall, the government approved Rs 11,712 crore as MSP support for cotton during the season, benefiting around 7.25 lakh farmers, as it stepped in to cushion growers from falling market prices.
Also Read: Cabinet approves Rs 11,712 crore MSP support for cotton in 2023-24; 7.25 lakh farmers benefit
CCI, the nodal agency for cotton procurement, purchased nearly 33 lakh bales during the 2023–24 marketing season when prices fell below MSP levels. Cotton prices remained under pressure through the season, prompting large-scale procurement to prevent distress sales and ensure remunerative returns.
India produced about 325 lakh bales of cotton during the period, with MSP operations playing a key role in stabilising prices and supporting farmer incomes. CCI continues to procure fair average quality cotton without any quantitative ceiling across major cotton-growing states whenever market prices dip below MSP.
Additionally, the Cabinet approved the Small Hydro Power (SHP) Development Scheme for FY27–FY31 with an outlay of Rs 2,584.60 crore to support installation of around 1,500 MW of capacity.
The scheme will support projects between 1–25 MW, with a focus on hilly and North Eastern states. Central financial assistance of up to Rs 3.6 crore per MW or 30% of project cost (capped at Rs 30 crore per project) will be provided in these regions, while other states will receive up to Rs 2.4 crore per MW or 20% of project cost (capped at Rs 20 crore per project).
The government has earmarked Rs 2,532 crore for project support and expects the scheme to attract around Rs 15,000 crore in investments. It will also incentivise preparation of detailed project reports for about 200 future projects.
The scheme is expected to generate around 51 lakh person-days of employment during construction and additional jobs in operations and maintenance, particularly in rural and remote areas. Officials said it will also promote clean energy adoption and local manufacturing, with plant and machinery to be sourced domestically.