Cabinet Approves Historic Land Acquisition Reform in Madhya Pradesh
Chief Minister Dr. Mohan Yadav today addressed a press conference at the CM House, elaborating on the landmark Cabinet decision to double the multiplication factor for rural land acquisition. This reform aims to ensure farmers receive a dignified and fair price for their land.
- The multiplication factor has been increased from 1.0 to 2.0, guaranteeing that farmers receive compensation totalling four times the market rate for agricultural land.
- The new structure is designed to protect rural interests by keeping the rate higher than in urban areas.
- The decision follows an extensive study of land acquisition rates in three other states and consultations with over 400 stakeholders, including farmer organisations, CREDAI, and FICCI.
The Chief Minister highlighted the financial scale of this commitment, noting that while approximately Rs 5,300 crore was previously paid annually as compensation, these new measures will provide a massive boost to farmer income.
Major state bodies like the Madhya Pradesh Road Development Corporation (MPRDC) and the Narmada Ghati Vikas Nigam have compensation outlays of Rs 2,500 crore and Rs 1,000 crore respectively. The state expects to significantly speed up pending infrastructure projects that were previously stalled due to acquisition issues.
The Chief Minister also emphasised that the state is on a path to double its economic growth rate within the next five years.
Key Decisions and Projects
- Indokh-Rudahera Micro Irrigation Project: An administrative sanction of Rs 157.14 crore was granted for this project in Ujjain district, aiming to cover a command area of 10,800 hectares and provide irrigation facilities to 35 villages.
- Chhindwara Irrigation Complex Special Package: A special rehabilitation package worth approximately Rs 969 crore was approved for the Chhindwara Irrigation Complex, surpassing the previously sanctioned Rs 840.80 crore.
- Council of Ministers' Investment: The Cabinet has greenlit a massive investment of Rs 33,985 crore for critical infrastructure and development projects spanning the irrigation, health, education, and road sectors.
Infrastructure Development
- Public Works Department: Rs 25,164 crore was sanctioned for various connectivity projects, including Rs 7,212 crore for road construction and operations from April 2026 to March 2031.
- Road Development Corporation: Rs 6,150 crore is set aside for upgrading rural and district roads, while Rs 1,087 crore will focus on bridge and road enhancements.
- Bridge Construction Scheme: Rs 9,950 crore was approved for a large-scale bridge construction scheme aligned with the 16th Finance Commission period.
Healthcare and Education
- Advanced Medical Services: Rs 5,479 crore was approved for advanced medical services, including the establishment of super-speciality hubs in oncology, cardiology, and organ transplantation.
- Government Medical College in Mandla: The budget for the new Government Medical College in Mandla was revised to Rs 347.39 crore to accommodate technical requirements due to a site change.
- Free Cycle Distribution Scheme: Rs 990 crore was allocated to continue the Free Cycle Distribution Scheme for rural students in classes 6 and 9 through 2030-31.
Administrative Functions
15 new posts were created for the Sixth State Finance Commission to streamline administrative functions.
Chief Minister's Initiatives
The Cabinet sanctioned Rs 23.90 crore for the third phase of the 'Chief Minister Young Professional for Development Program,' aimed at integrating youth expertise into governance.