Cabinet clears ₹2.79 lakh crore package: Rabi MSP hike, PM DHARA and Delhi traffic system

The Union Cabinet on Wednesday approved three major measures spanning agriculture, renewable energy and urban transport, with the combined value of the decisions put at ₹2,79,157 crore. Union Minister Ashwini Vaishnaw announced the decisions after the Cabinet meeting.

The largest allocation, ₹1,86,405 crore, has been approved for PM DHARA (Developing Harmonized and Accelerated Renewable Energy Access), a programme aimed at developing and accelerating access to renewable energy. The Cabinet also cleared ₹1,790 crore for an Intelligent Traffic Management System (ITMS) in the National Capital Territory of Delhi.

Separately, the government approved the Rabi Price Policy for the 2027-28 marketing season, with an estimated payout of ₹90,962 crore to farmers. The decision covers six Rabi crops — wheat, barley, gram, lentil (masoor), rapeseed-mustard and safflower — and sets new Minimum Support Prices (MSPs) based on projected costs of production and the margin over those costs.

Rabi MSP 2027-28

The MSP is the government-announced minimum price at which eligible crops are procured under the applicable procurement mechanism. The latest revision comes ahead of the Rabi sowing cycle.

For comparison, MSPs for the previous Rabi Marketing Season 2026-27 were ₹2,585 per quintal for wheat, ₹2,150 for barley, ₹5,875 for gram, ₹7,000 for masoor, ₹6,200 for rapeseed-mustard and ₹6,540 for safflower.

The Cabinet presentation estimated the financial payout under the Rabi Price Policy at ₹90,962 crore. The cost estimates and margins used for the six crops form the basis of the revised MSPs.

Meanwhile, the ₹1,86,405-crore PM DHARA allocation is aimed at expanding renewable-energy access and clean-energy infrastructure. The ₹1,790-crore ITMS project for Delhi is intended to use technology-based traffic management tools to improve monitoring and management of traffic movement across the capital.

Together, the three decisions cover farm prices, renewable energy and urban traffic management, with the Rabi MSP decision directly affecting farmers growing the six notified crops for the 2027-28 marketing season. The measures combine farmer support through MSPs with major allocations for renewable-energy development and technology-led traffic management.