MP Cabinet clears ₹24,500 crore proposals, okays 105-km Damoh-Katni highway

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MP Cabinet clears ₹24,500 crore proposals, okays 105-km Damoh-Katni highway

Synopsis

In its second major spending clearance within a week, the Madhya Pradesh Cabinet approved ₹24,500 crore in proposals — anchored by a ₹4,470 crore Damoh-Katni highway and expanded medical college capacity. Combined with the ₹13,790 crore cleared on 22 September, CM Mohan Yadav's government has committed over ₹38,000 crore in a single week, signalling an aggressive pre-budget infrastructure push.

Key Takeaways

The Madhya Pradesh Cabinet approved proposals worth ₹24,500 crore on 29 September under CM Mohan Yadav .
The 105-km Damoh-Katni highway was sanctioned at ₹4,470 crore , boosting Bundelkhand connectivity.
Singrauli medical college hospital received a revised estimate of ₹372 crore , adding 150 MBBS seats to the existing 150 .
Chhindwara Institute of Medical Sciences outlay raised from ₹768 crore to ₹953 crore for early project completion.
High-quality uniforms approved for 58 lakh students in Classes 1 to 8 ; nearly 900 compassionate appointments cleared by the School Education Department.
Combined with the ₹13,790 crore cleared on 22 September , total Cabinet commitments cross ₹38,000 crore in one week.

The Madhya Pradesh Cabinet, chaired by Chief Minister Mohan Yadav, on 29 September approved development proposals worth approximately ₹24,500 crore, covering revised estimates, ongoing schemes, and new infrastructure works across the state. The package spans road connectivity, medical education, and school welfare initiatives.

Key Infrastructure Push

The single largest outlay in the package is the 105-kilometre Damoh-Katni road project, sanctioned at ₹4,470 crore. The highway, which had been listed in the ruling party's election manifesto, is expected to significantly strengthen connectivity across the Bundelkhand region and adjoining areas. Officials said the corridor will ease freight movement and reduce travel time between the two districts.

Health Sector Allocations

In the health sector, the Cabinet cleared a revised estimate of ₹372 crore for the Singrauli medical college hospital. The enhanced allocation will fund additional beds and create capacity for 150 new MBBS seats, doubling the institution's existing intake of 150 seats.

Separately, the revised cost estimate for the Chhindwara Institute of Medical Sciences was approved, with the outlay raised from ₹768 crore to ₹953 crore. According to officials, the enhanced funding is intended to meet all pending construction requirements and enable early completion of the project.

School Uniforms and Compassionate Appointments

The Cabinet also approved the distribution of high-quality uniforms to 58 lakh students enrolled in Classes 1 to 8 across government schools in the state. Earlier uniform distribution plans have been upgraded to ensure improved quality standards, officials said.

In a notable administrative measure, the School Education Department has completed nearly 900 long-pending compassionate appointments following a special drive. The Cabinet has directed all other state departments to clear similar pending cases without delay.

Context: Second Major Package in a Week

This is the second significant Cabinet-level financial clearance in quick succession. On 22 September, the Madhya Pradesh Council of Ministers — also chaired by CM Mohan Yadav at the Mantralaya — had approved proposals worth approximately ₹13,790 crore, targeting infrastructure development, agricultural expansion, and administrative strengthening. Together, the two rounds amount to over ₹38,000 crore in state-level commitments within a single week.

The cumulative approvals signal an accelerated spending push as the state government looks to move key projects off the drawing board ahead of the next budget cycle.

Point of View

000 crore in a single week is a pace that demands scrutiny of execution capacity, not just headline ambition. The Chhindwara medical college revision — from ₹768 crore to ₹953 crore, a jump of nearly 24% — raises questions about the quality of initial cost estimation. Madhya Pradesh has a mixed record on project delivery timelines, and the Damoh-Katni highway's manifesto origins mean political optics are baked in. The real test will be whether disbursements match approvals and whether the new MBBS seats translate into operational faculty and infrastructure, not just sanctioned numbers.
NationPress
29 Sept 2026

Frequently Asked Questions

What did the Madhya Pradesh Cabinet approve on 29 September?
The Madhya Pradesh Cabinet, chaired by Chief Minister Mohan Yadav, approved development proposals worth approximately ₹24,500 crore on 29 September, covering road infrastructure, medical college expansion, school uniforms, and compassionate appointments.
What is the Damoh-Katni road project?
The Damoh-Katni road project is a 105-kilometre highway sanctioned at ₹4,470 crore, aimed at strengthening road connectivity across the Bundelkhand region. It was a commitment listed in the ruling party's election manifesto.
How will the Singrauli and Chhindwara medical colleges be affected?
The Singrauli medical college hospital received a revised estimate of ₹372 crore to add beds and create 150 new MBBS seats, doubling its current intake. The Chhindwara Institute of Medical Sciences saw its budget raised from ₹768 crore to ₹953 crore to meet pending requirements and fast-track completion.
Who benefits from the school uniform decision?
Approximately 58 lakh students studying in Classes 1 to 8 in government schools across Madhya Pradesh will receive high-quality uniforms under the upgraded distribution plan approved by the Cabinet.
How does this approval compare to the previous week's Cabinet decisions?
On 22 September, the Madhya Pradesh Cabinet had separately cleared proposals worth ₹13,790 crore. Combined with the latest ₹24,500 crore package, the state government has committed over ₹38,000 crore in two Cabinet sittings within a single week.
Nation Press
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