NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a series of decisions with a combined financial implication of over Rs 1.74 lakh crore, including an increase in Nutrient Based Subsidy (NBS) on fertiliser rates for the Kharif season by Rs 4,317 crore.
The cabinet also approved two Hydroelectric projects in Arunachal Pradesh worth Rs 40,000 crore, the second phase of Jaipur Metro (42 Kms) with an outlay of Rs 13,000 crore and an upward cost revision to Rs 79,459 crore from Rs 43,129 crore for the HPCL Rajasthan Refinery project at Pachpadra in Balotra district.
Briefing media after the meeting of the Union Cabinet and Cabinet Committee on Economic Affairs (CCEA), Information and Broadcasting Minister Ashwini Vaishnaw said the government has approved a subsidy outlay of approximately Rs 41,533.81 crore for phosphatic and potassic (P&K) fertilisers for the Kharif 2026 season. The decision has been taken with an aim to protect farmers from volatile global input costs and ensure adequate nutrient availability.
“The decision pertains to the fixing of NBS rates for the Kharif season (April 1, 2026 to September 30, 2026). The approved outlay marks an increase of around Rs 4,317 crore compared to the Rs 37,216.15 crore allocated for Kharif 2025, reflecting higher global fertiliser prices and input costs, particularly in view of the West Asia conflict, the Minister said.
Vaishnaw noted that the ongoing situation in West Asia has had a direct bearing on fertiliser supply chains, particularly with key inputs such as potash and sulphur-based fertilisers sourced from the region. “The impact of the war has been taken into consideration in today’s decision,” he noted.
The Minister also asserted that both the Centre and states have been closely monitoring fertiliser availability across the country and “micro-monitoring” supplies to ensure smooth distribution during the Kharif season.
The CCEA also approved an investment of Rs 40,000 crore to set up two hydropower plants in Arunachal Pradesh. They include Rs 14,105.83 crore for the construction of the Kalai-II Hydro Electric Project (HEP) on the Lohit river in Anjaw district and Rs 26,069.50 crore for the construction of the Kamala HEP in Kamle, Kra Daadi and Kurung Kumey districts, the Minister said, adding that the estimated completion periods for the two projects are 78 months and 96 months, respectively.
The Kalai-II project will be set up with an installed capacity of 1,200 MW and is expected to generate 4,852 million units (MUs) of power annually. As the first hydro project in the Lohit basin, it will strengthen power supply in the state, support peak demand management and contribute to balancing the national grid.
The Kamala HEP will be set up with an installed capacity of 1,720 MW and is expected to generate 6,870 MUs of energy every day. The power generated from the project, apart from strengthening the supply position in the state, will also provide flood moderation benefit in the Brahmaputra valley.
“In addition to Kamala HEP, other hydropower projects — Subansiri Lower (2,000 MW) and Dibang Multipurpose (2,880 MW) — are under construction, and Etalin (3,097 MW) is planned for development by NHPC Limited in Arunachal Pradesh,” the government said in an official statement.
Meanwhile, the second phase of Jaipur Metro, which is going to be a 41 km-long corridor, will have 36 stations with an estimated cost of Rs 13,037.66 crore, the Minister said, adding that it would be implemented by the Rajasthan Metro Rail Corporation Limited (RMRCL), a 50:50 joint venture of the government of India and the state government.
The Phase-2 north-south corridor will provide seamless connectivity to major activity nodes such as Sitapura Industrial Area, VKIA, Jaipur Airport, Tonk Road, SMS Hospital and Stadium, Ambabari and Vidhyadhar Nagar, the government said in the statement, adding that the corridor includes underground stations in the airport area and will integrate with the operational Phase-1 through planned interchanges and feeder systems, ensuring a unified and continuous metro network across the city.
The CCEA also cleared an increase in the cost of the HPCL Rajasthan Refinery project at Pachpadra in Balotra district to Rs 79,459 crore, which is up from Rs 43,129 crore earlier. The refinery, which is a joint venture between Hindustan Petroleum Corporation Ltd (HPCL) and the Rajasthan government, is a 9 million tonnes per annum greenfield refinery-cum-petrochemical complex with a high petrochemical intensity.
The project is scheduled for commissioning by July 1, 2026 and it is expected to reduce import dependence in the petrochemical sector and strengthen India’s refining capacity.
