Cabinet Approvals on May 28, 2025

On May 28, 2025, the union cabinet chaired by Prime Minister (PM) Narendra Modi approved the following proposal schemes:

i.Approved continuation of Modified Interest Subvention Scheme (MISS) for Financial Year 2025-26(FY26) with existing 1.5% Interest Subvention (IS).

ii.Approved two multitracking projects across Indian Railways(IR) in Maharashtra and Madhya Pradesh (MP)

iii.Approved Rs.3,653 crore four-lane Badvel-Nellore National Highway in Andhra Pradesh (AP)

iv.Approved Minimum Support Price (MSP) for Kharif crops for Marketing Season 2025-26

Extension of MISS for FY26 with existing 1.5% IS:

The union cabinet has approved the continuation of the 1.5% Interest Subvention (IS) component under the Modified Interest Subvention Scheme (MISS) for FY26 to double farmers’ income, strengthen the rural credit system, and boost agricultural growth.

About Modified Interest Subvention Scheme (MISS):

i.MISS is a Central Sector Scheme (CSS) aimed at ensuring the availability of short-term credit to farmers at an affordable interest rate through Kisan Credit Card (KCC).

ii.Farmers received short-term loans of up to Rs.3 lakh through KCC at a subsidized interest rate of 7%, with 1.5% interest subvention provided by eligible lending institutions.

iii.Additionally, farmers repaying loans regularly are eligible for an incentive of up to 3% as Prompt Repayment Incentive (PRI) effectively reducing their interest rate on KCC loans to 4%

• For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to Rs.2 lakh

iv.There are more than 7.75 crores of KCC accounts in India. Institutional credit disbursement through KCC increased from Rs.4.26 lakh crore in 2014 to Rs.10.05 lakh crore by December 2024.

• Overall agricultural credit flow also rose from Rs.7.3 lakh crore in FY14 to Rs.25.49 lakh crore in FY24.

Approved two Railway projects in Maharashtra and MP:

The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of two multitracking projects across Indian Railways(IR), as part of Pradhan Mantri Gati Shakti National Master Plan (PMGS-NMP) in MP and Maharashtra, to ensure seamless and faster transportation of both passengers and goods.

• These infrastructure projects, with an estimated cost of Rs 3,399 crore, are planned to be completed by the Financial year 2029-30(FY30).

Key Points:

i.The multi tracking projects include Ratlam to Nagda (3rd and 4th line) of 41 Kilometre (Km) in MP and Wardha to Balharshah (4th line) of 135 km in Maharashtra.

ii.The two projects covering four districts across the states of Maharashtra and MP, will increase the existing network of IR by about 176 kilometre(km).

iii.The proposed multi-tracking project will enhance connectivity to approximately 784 villages, which have a population of about 19.74 lakh.

iv.These railway routes serve as vital corridors for transporting key commodities including coal, cement, clinker, gypsum, fly ash, containers, agricultural produce, and petroleum products.

Note: In the Union Budget for FY26, the Government of India(GoI) allocated Rs 2.52 lakh crore to the Ministry of Railways(MoR).

Approved Development of 4-lane Highway in AP:

The CCEA has approved the construction of 4- Lane Badvel-Nellore Corridor with a length of 108.134 km at a cost of Rs.3653.10 crore in Andhra Pradesh (AP) on National Highway (NH-67) on Design-Build-Finance-Operate-Transfer (DBFOT) Mode.

Key Points:

i.The approved corridor will provide connectivity to important nodes in the three Industrial Corridors of AP including, Kopparthy Node on the Visakhapatnam-Chennai Industrial Corridor (VCIC), Orvakal Node on Hyderabad-Bengaluru Industrial Corridor (CBIC).

ii.The Badvel Nellore Corridor starts from Gopavaram village, AP on the existing NH-67 in the YSR Kadapa District and terminates at the Krishnapatnam Port Junction on NH-16 (Chennai-Kolkata) in SPSR Nellore, AP.

• The corridor will also provide strategic connectivity to the Krishnapatnam Port, which has been identified as a priority node under CBIC.

iii.The proposed corridor is set to reduce the travel distance to Krishnapatnam Port by 33.9 km, bringing it down from 142 km to 108.13 km compared to the existing Badvel–Nellore route.

Approved MSP for Kharif Crops for Marketing Season 2025-26:

The CCEA approved the increase in the Minimum Support Prices (MSP) for 14 Kharif Crops for Marketing Season 2025-26, to ensure remunerative prices to the growers for their produce.

• Alongside the MSP revisions, the government has extended the facility for low-interest loans to farmers, further supporting agricultural financing and easing credit access.

i.The highest absolute increase in MSP over the year 2024-25 has been recommended for nigerseed (Rs.820 per quintal), followed by Ragi (Rs.596 per quintal), Cotton (Rs.589 per quintal) and Sesamum (Rs.579 per quintal).

ii.The expected margin for farmers over their cost of production is estimated to be highest in the case of bajra (63%), followed by maize (59%), tur (59%) and urad (53%), and for the rest of the crops, margin to farmers over their cost of production is estimated to be at 50%.

MSP for Kharif Crops for Marketing Season 2025-26:

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