BHOPAL: The Madhya Pradesh government on Tuesday approved a sweeping package of development measures involving around ₹41,000 crore, combining major road and infrastructure projects with an expansion of rural employment, dairy development, healthcare maintenance and higher technical education.
The decisions, taken at a meeting of the state Cabinet chaired by Chief Minister Mohan Yadav, seek to address infrastructure bottlenecks, strengthen the rural economy and expand access to specialised higher education across the state.
At the centre of the Cabinet’s rural development agenda is the implementation of the Viksit Bharat (Rural): VB-G RAM G Viksit Bharat G RAM G Scheme, under which adult members of rural households willing to undertake unskilled manual work will now be entitled to a statutory guarantee of 125 days of wage employment in every financial year, up from the existing 100 days.
The scheme will come into effect in Madhya Pradesh from July 1, 2026, with the state government estimating expenditure of ₹3,183 crore during 2026-27 and a total outlay of ₹26,619 crore between 2026-27 and 2030-31.
The Centre and the state will share the expenditure in a 60:40 ratio, with Madhya Pradesh’s share estimated at ₹10,574 crore over the five-year period. A further ₹946 crore will be required for administrative expenditure, which will be borne by the state government.
The increase in guaranteed employment days is expected to provide an additional income cushion to rural households while creating demand for labour within villages. The government has also linked the programme more explicitly to long-term rural infrastructure, rather than treating it merely as an employment-support measure.
Under the new framework, every Gram Panchayat will prepare a Viksit Gram Panchayat Plan using GIS-based technology, PM Gati Shakti layers and Digital Public Infrastructure. These village-level plans will subsequently be integrated through a digital portal into the Viksit Bharat National Rural Infrastructure Stack.
The state will also establish a dedicated Project Management Unit under the Madhya Pradesh State Rural Employment Guarantee Council. The unit will oversee technical interventions involving water security, climate-resilient engineering, data science and newer livelihood models.
In another move aimed at improving accountability, Gram Panchayats will be classified into A, B and C categories on the basis of development parameters. The classification is intended to make financial allocations more transparent and ensure that funds are distributed according to local needs.
The scheme will also introduce tighter monitoring mechanisms. Biometric attendance, digital muster rolls and social audits every six months will be mandatory. An Ombudsperson or Lokpal will be appointed in every district to handle complaints and facilitate faster grievance redressal through a digital platform.
Until a new council is formally constituted and registered, the existing Madhya Pradesh State Employment Guarantee Council will discharge the responsibilities associated with the new programme.
Road projects to strengthen connectivity
The Cabinet also cleared administrative approvals for two major road projects with a combined estimated cost of more than ₹7,000 crore.
The four-lane West Bhopal Bypass has been approved at a cost of ₹3,774 crore, while ₹3,272 crore has been sanctioned for the Mehluwa-Bina-Khimlasa-Malthone road.
The government expects the projects to improve connectivity, facilitate the movement of goods and people and boost industrial activity in the regions they serve. Better road links are also expected to strengthen access to markets and reduce transportation bottlenecks.
Three technology universities proposed
In a significant higher education reform, the Cabinet approved the reorganisation of Rajiv Gandhi Proudyogiki Vishwavidyalaya (RGPV) and the establishment of three separate technology universities in Bhopal, Ujjain and Jabalpur.
The move is being positioned as a step towards achieving greater regional balance in higher and technical education. Instead of concentrating specialised technical education in a single institutional structure, the proposed universities are expected to create stronger regional centres for technology and professional education.
For a state seeking to expand its industrial and services base, the government sees wider access to technical education as an important component of its longer-term development strategy.
Dairy sector gets ₹2,973 crore push
The Cabinet also approved a ₹2,973 crore Dairy Development Scheme in collaboration with the National Dairy Development Board.
The programme aims to increase the economic returns to milk producers while upgrading the Sanchi dairy brand, one of Madhya Pradesh’s prominent cooperative dairy brands. The focus is expected to extend beyond milk procurement to strengthening the broader dairy ecosystem and improving the income prospects of producers.
Healthcare, farmers and administration
The state has additionally approved more than ₹1,400 crore for maintenance of medical equipment and departmental assets, a move aimed at improving the functioning of existing healthcare infrastructure.
For farmers, the Cabinet ratified an increase in the procurement limit for summer moong from registered farmers. The permissible procurement level has been raised from 25 per cent to 60 per cent of a farmer’s produce, potentially providing greater market support to growers.
The Cabinet also approved the creation of new posts in the Social Justice and Empowerment of Persons with Disabilities and AYUSH departments to strengthen administrative arrangements in the newly formed districts of Maihar, Mauganj, Pandhurna and Niwari.
Tuesday's Cabinet decisions reflect the Madhya Pradesh government’s attempt to combine immediate welfare support with long-term infrastructure creation. The expansion of guaranteed rural employment, in particular, gives the state’s development programme a dual focus: putting more purchasing power into rural households while using public expenditure to build water infrastructure, climate-resilient assets and village-level connectivity.
The government’s broader objective is to align these investments with the national vision of Viksit Bharat @2047, while using infrastructure, education, agriculture and rural employment as parallel drivers of economic growth.