The Madhya Pradesh Cabinet, chaired by Chief Minister Dr. Mohan Yadav, has approved an increase in compensation for rural agricultural land acquisition to four times the market rate, along with clearing infrastructure and development proposals worth ₹33,985 crore.
The decisions were taken at the Cabinet meeting held in Bhopal on Wednesday, 22 April
As per the official release, the State Cabinet increased the multiplication factor for rural land acquisition to 2.0 under the Madhya Pradesh Land Acquisition, Rehabilitation and Resettlement Rules, 2015. This raises compensation from twice to four times the market value.
The decision applies to rural areas across the state, while the compensation factor for urban areas remains unchanged at one.
The revised compensation framework will apply to land acquired for projects such as irrigation, roads, railways, bridges and dams.
Separately, as part of the ₹33,985 crore worth infrastructure and development approvals cleared in the same meeting, administrative approval of ₹157 crore 14 lakh was granted for the Indokh-Rudaheda micro irrigation project in Ujjain district, covering 10,800 hectares and benefiting 35 villages.
A revised special rehabilitation package of ₹969 crore was approved for the Chhindwara irrigation complex project, replacing the earlier approved ₹840 crore 80 lakh.
The project includes four dams and is planned to provide irrigation to 1,90,500 hectares across 628 villages in Chhindwara and Pandhurna districts.
Under public works, projects worth ₹25,164 crore were approved for the period from 1 April 2026 to 31 March 2031.
This includes ₹7,212 crore for road construction and maintenance through the state road development corporation, ₹6,150 crore for rural and district roads, ₹1,087 crore for road and bridge upgrades, ₹765 crore for maintenance of departmental assets, and ₹9,950 crore for major bridge construction.
In education, ₹2,190.44 crore was approved for continuation of the free bicycle distribution scheme and institutional strengthening. This includes ₹990 crore for the scheme from 2026-27 to 2030-31 and ₹1,200.44 crore for teacher training and institutional development.
The State Cabinet also approved ₹5,479 crore for healthcare-related works. This includes ₹3,628 crore under the CM CARE 2025 scheme for strengthening tertiary healthcare services, ₹1,503 crore for medical college upgradation, and a revised ₹347 crore 39 lakh for establishment of a new government medical college in Mandla.
Additionally, approval was granted to establish accommodation facilities for attendants in selected government medical colleges through charitable institutions, with user charges to be determined by a government-constituted committee and without direct state funding.
The Cabinet also approved creation of 15 posts for the Sixth State Finance Commission and sanctioned ₹24 crore for the third phase of the Chief Minister Young Professional for Development Programme.
