Bhopal (Madhya Pradesh): Taking a farmer-friendly decision, the Cabinet gave its nod to revised conditions for providing short-term loans to farmers at 0% interest during 2026–27.
Instead of separate due dates for kharif and rabi crops, a single annual credit limit will now be issued with separate sub-limits for cash and commodity loans. The due date will be fixed at 12 months from the first withdrawal.
Farmers will receive a 1.25% interest subsidy, while those repaying on time will get an additional 4% interest incentive subsidy from the state government.
The zero-interest crop loan scheme through Primary Agriculture Cooperative Committees of district cooperative banks has been in place since 2012–13, covering loans up to Rs 3 lakh on timely repayment.
Continuation of schemes & public welfare works worth Rs 5,960 crore
The Cabinet approved continuation of schemes and public welfare works worth Rs 5,960 crore.
Rs 1,740.57 crore was sanctioned for continuation of Mukhyamantri Kanya Vivah Yojana for five years. The scheme has been in operation since April 1, 2006.
Approval was also given for upgrading government middle schools to high schools and high schools to higher secondary schools. In 2026–27, 75 middle schools will be upgraded to high schools and 100 high schools to higher secondary schools.
In the next two years, another 75 middle schools and 100 high schools will be upgraded. An estimated Rs 635.24 crore will be spent. To achieve 100% enrolment by 2047, 315 high schools and 214 higher secondary schools are required.
No upgradation will be done in the catchment area of Sandipni Schools. The gross enrolment ratio is 75% at high school level and 55% at higher secondary level, with distance being a major factor in dropouts.
Other Cabinet decisions
The Cabinet approved a new government law college in Shujalpur with 17 posts, including nine teaching posts, at a cost of over Rs 2.39 crore.
It also approved Rs 3,580.7 crore for transportation and commission reimbursement under the Targeted Public Distribution System from April 1, 2026 to March 31, 2031, covering the 16th Central Finance Commission period.
