Union Cabinet Approves ₹2.79 Lakh Crore Package Covering Farmers, Renewable Energy and Delhi Traffic
The Union Cabinet has approved a major package of decisions worth ₹2,79,157 crore, covering three important areas — agricultural price support, renewable-energy infrastructure and technology-driven traffic management in Delhi. The decisions include higher Minimum Support Prices (MSPs) for six Rabi crops for the 2027-28 marketing season, a large-scale renewable-energy transmission programme and a new Intelligent Traffic Management System for the national capital.
The measures come at a time when India is simultaneously focusing on strengthening agricultural support, expanding clean-energy capacity and improving urban infrastructure through technology.
Higher MSP for Six Rabi Crops
The Cabinet Committee on Economic Affairs has approved revised MSPs for wheat, barley, gram, masur, rapeseed-mustard and safflower for the 2027-28 Rabi marketing season. The estimated financial implication of the revised Rabi Price Policy is around ₹90,962 crore.
Wheat MSP has been increased from ₹2,585 to ₹2,610 per quintal, while barley will now have an MSP of ₹2,286. The MSP for gram has been fixed at ₹5,958, masur at ₹7,390, rapeseed-mustard at ₹6,613 and safflower at ₹7,215 per quintal. Safflower has received the largest absolute increase of ₹675 per quintal.
The revised MSP structure maintains the government's stated approach of keeping MSP at least 1.5 times the all-India weighted average cost of production. The expected margin over production cost is 106% for wheat, 96% for rapeseed-mustard, 92% for masur, 59% for gram, 58% for barley and 50% for safflower.
The higher MSPs for pulses and oilseeds also form part of the broader effort to encourage farmers to diversify beyond traditional crop patterns. The revised prices will provide the pricing framework for the coming Rabi marketing season.
₹1.86 Lakh Crore for Renewable-Energy Infrastructure
The largest component of the package is the ₹1,86,405-crore PM DHARA programme, linked to the third phase of the Green Energy Corridor. The initiative is designed to strengthen intra-state transmission infrastructure and support the integration of large volumes of renewable electricity into the national grid.
The programme includes transmission infrastructure as well as battery energy storage systems. The combination is intended to strengthen the grid's ability to handle renewable electricity, particularly from sources such as solar and wind whose generation can vary during the day.
The expansion of transmission capacity is becoming increasingly important as India's renewable-energy sector grows. Stronger grid infrastructure can help electricity generated in renewable-rich areas reach consumption centres while reducing constraints on the integration of additional clean-energy capacity.
The Cabinet's decision therefore links renewable-energy generation with the infrastructure required to transmit and manage that electricity efficiently, making grid modernisation an important part of the country's broader energy transition.
Delhi to Get ₹1,789.52 Crore Intelligent Traffic System
The Cabinet has also approved ₹1,789.52 crore for an Intelligent Traffic Management System (ITMS) in Delhi. The project will be implemented by the Delhi Police and is intended to introduce a more technology-driven approach to traffic monitoring, signal management and enforcement.
The system will cover 42 identified traffic corridors and will be implemented in three phases over 24 months, followed by five years of operation and maintenance. It will combine adaptive traffic signals, real-time monitoring, automated enforcement and integrated command-and-control systems.
One of the important features will be the ability of traffic signals to respond to changing traffic conditions rather than relying entirely on fixed timings. The system is also expected to identify violations such as speeding, red-light jumping and wrong-side driving through technology-based enforcement. Emergency vehicles can receive priority movement through the network, helping improve response times.
The project is aimed at making better use of Delhi's existing road infrastructure by using real-time information to manage traffic flows. It represents a shift towards integrated, data-driven traffic management rather than relying only on conventional traffic-control methods.
A Broad Package Across Three Key Sectors
The three Cabinet decisions address different but significant areas of India's development agenda. The revised Rabi MSPs directly concern farmers and agricultural markets, while PM DHARA focuses on the infrastructure required to support the country's expanding renewable-energy system. The Delhi ITMS brings digital technology and automation into urban traffic management.
Together, the measures involve an estimated ₹2,79,157 crore, making the package significant in scale. The agriculture component is intended to provide a revised price-support framework for the coming Rabi marketing season, while the renewable-energy programme focuses on long-term grid infrastructure and storage. The Delhi project, meanwhile, is designed to improve the management of one of India's busiest urban transport networks.
The MGMM Outlook
The Union Cabinet’s approval of a ₹2.79 lakh crore package brings together measures aimed at strengthening three important areas of development—agriculture, renewable-energy infrastructure and urban mobility. The increase in MSPs for six Rabi crops provides farmers with a revised price-support framework for the 2027-28 marketing season, with particular emphasis on pulses and oilseeds alongside major crops such as wheat. At the same time, the ₹1.86 lakh crore PM DHARA programme is focused on expanding transmission infrastructure and battery storage to support the growing integration of renewable electricity into the national grid.
The approval of ₹1,789.52 crore for an Intelligent Traffic Management System in Delhi adds a technology-driven urban infrastructure component to the package. Covering 42 traffic corridors, the system is expected to use adaptive signals, real-time monitoring, automated enforcement and priority movement for emergency vehicles. Taken together, these decisions reflect a broad approach combining agricultural support with long-term energy infrastructure and smarter urban management, with the implementation of each initiative expected to determine its practical impact for farmers, electricity consumers and commuters.
(Sources: Moneycontrol, Business Today, Business Standard)
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