Farmers to receive four times market rate for land acquisition of agricultural land in rural areas

Approval of Rs. 33,985 crore for development of infrastructure irrigation, health, education, and roads
Approval of Rs. 157 crore 14 lakh for the Indokh-Rudhahera Micro Irrigation Project
Approval of a special rehabilitation package of Rs. 969 crore for rehabilitation in Chhindwara Irrigation Complex Project

April 2026 : In a historic decision in the interest of farmers, the State Cabinet meeting held at the Secretariat on Wednesday under the chairmanship of Chief Minister Dr. Mohan Yadav doubled the multiplication factor for agricultural land acquisition to 2.0. Consequently, farmers will receive four times the market rate for compensation for acquired agricultural land, instead of double. This decision will apply to the acquisition of agricultural land in rural areas across the state. The Cabinet has kept the compensation multiplication factor unchanged within urban limits. The Cabinet also approved approximately Rs. 33,985 crore for infrastructure construction and development works such as irrigation, health, education, and roads.  Farmers will immensely benefit from receiving compensation four times the market rate upon land acquisition.

The Cabinet, in a historic decision in the interest of farmers, has increased the multiplication factor for rural areas to 2.0 under the “Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules, 2015″ (Madhya Pradesh Land Acquisition, Rehabilitation and Resettlement Rules), paving the way for farmers to receive compensation four times the market rate for their agricultural land.

This decision will enable farmers to receive higher compensation for agricultural land acquired by the Central and State governments for important projects such as irrigation projects, road, bridge, railway, and dam construction. This will not only accelerate development projects but will also significantly improve the economic condition of the farmer families who provide their land.

It is noteworthy that this recommendation was made by a sub-committee comprising Ministers Shri Tulsiram Silawat, Shri Rakesh Singh, and Shri Chaitanya Kumar Kashyap.  The subcommittee prepared this report after studying the policies of other states and discussing with various farmer organizations, including CREDAI, CII, and FICCI. This transparent and farmer-friendly government decision will directly benefit thousands of families in the state.

Approval of ₹157 crore 14 lakh for the Indaukh-Rudhahera Micro Irrigation Project

The Cabinet has decided to grant administrative approval for the Indaukh-Rudhahera Micro Irrigation Project in Ujjain district, costing Rs. 157 crore 14 lakh and with a catchment area of 10,800 hectares. The project will benefit 35 villages in Jharda tehsil.

Approval of a special rehabilitation package of ₹969 crore for rehabilitation under Chhindwara Irrigation Complex Project

The Cabinet approved a special rehabilitation package of approximately Rs. 969 crore, replacing the approved amount of Rs. 840 crore 80 lakh for rehabilitation under the Chhindwara Irrigation Complex Project. This special package has been decided to be equivalent to the Ken-Betwa Interstate River Linking Project, for speedy implementation and to provide the necessary support to the displaced people.

  Under the Chhindwara Irrigation Complex Project, a total of four dams are proposed: Sangam 1 Dam, Sangam 2 Dam, Ramghat Dam in Chhindwara district, and Balancing Reservoir (Pandhurna) in Pandhurna district. This will provide irrigation facilities to 1,90,500 hectares of Chhindwara and Pandhurna districts. The project will benefit 369 villages in Chhindwara district and 259 villages in Pandhurna district, thus totaling 628 villages.

Rs. 25,164 crore approved for development works under Public Works Department

The Cabinet has approved Rs. 25,164 crore for development works under the Public Works Department. Through Mp Road Development-Corporation Approval has been given for Rs 7,212 crore for continuation and operation of construction of roads through Road Development Corporation from April 1, 2026 to March 31, 2031, Rs 6,150 crore for continuation of construction and upgradation of rural roads and other district roads, Rs 1,087 crore for upgradation of bridges and roads, Rs 765 crore for repair of buildings and maintenance of departmental assets and Rs 9,950 crore for continuation and operation of the scheme of construction of major bridges during the period of Sixteenth Finance Commission (April 1, 2026 to March 31, 2031).

Rs. 2191 crore for free cycle distribution

The Cabinet has approved Rs. 990 crore for the continuation of the Free Bicycle Scheme, which provides bicycles to students in grades 6 and 9 in government schools in rural areas under the School Education Department, from the financial year 2026-27 to 2030-31, and Rs. 1,200 crore 44 lakh for the operation of eight schemes related to salary payments, office expenses, and strengthening of teacher training institutions.

The Free Bicycle Scheme has been in operation in Madhya Pradesh since 2004-05.  As per the criteria set under the Free Cycle Distribution Scheme, students residing in rural areas who are studying in class 6th and class 9th in government schools, and in the village where they are residents, there is no government secondary/high school and they go to a government school in some other village or city for studies, are benefited under the Free Cycle Distribution Scheme.

Rs. 5,479 crore approved for advanced medical services

The Cabinet has approved Rs.5,479 crore for the provision of advanced medical services in the state, upgrading medical colleges, and establishing a new government medical college in Mandla under the Public Health and Medical Education Department.

As per the approval, Rs. 3,628 crore has been approved for the five-year continuous operation of the Chief Minister’s Comprehensive and Advanced Tertiary Healthcare Institution Strengthening Scheme (CM CARE 2025).  The scheme will strengthen super-specialty healthcare services in government and autonomous medical colleges and the private sector, creating a strong hub for tertiary healthcare services, including the establishment of oncology (surgical, medical, and radiation), cardiology, cardiac surgery, and organ transplant units. This will ensure improved quality and availability of services by leveraging government investment, as well as the expertise, latest technology, and capital investment of private partners.

In addition, Rs. 1,503 crore has been approved for upgrading medical colleges. As per the approval, this scheme will expand medical facilities in medical colleges for the next five years.

For the construction of a new Government Medical College in Mandla, a revised administrative approval of Rs.347.39 million has been granted, replacing the previously approved Rs.249.63 million. The revised administrative approval was granted due to cost overruns due to technical reasons, including the site change. The establishment of a new Government Medical College in Mandla will provide easy access to tertiary care facilities for the people of the surrounding area.

Approval for Establishment of Family Rest Houses in Government Medical Colleges

The Cabinet has approved the establishment of Family Rest Houses through charitable organizations on the campuses of selected medical colleges in the state. These institutions will establish such Family Rest Houses using their own financial resources, with no government financial assistance. The fees charged by the institutions for services will be determined by a committee constituted by the government. The proposed arrangement will provide patients’ families with better care at lower rates and a better mental well-being, which will directly benefit the hospital’s facilities and streamline operations.

  Patients come to the hospitals affiliated with the medical college from far and wide. They are accompanied by their family members. Many of these family members, unable to afford the expense of arranging accommodation outside the hospital premises, sleep on the hospital premises. This puts additional pressure on the hospital’s sanitation system, and the family members also lack comfortable accommodation. This indirectly impacts the hospital’s administrative system and the interactions between patients and hospital staff, thereby affecting hospital operations.

Approval for creation of 15 posts to carry out the functions of the Sixth State Finance Commission

The Council of Ministers has approved the creation of 15 posts for a fixed term to carry out the functions of the Sixth State Finance Commission. The Sixth State Finance Commission has been constituted by the State Government.

Approval of Rs.24 crore for the Chief Minister’s Young Professionals for Development Program

The Cabinet has approved Rs.23.9 crore for the third phase of the Chief Minister’s Young Professionals for Development Program for three years. The Public Service Management Department has been authorized to implement the program by determining further action and procedures and issuing rules and guidelines.