Cabinet decision highlights: From LPG support to northeast development packages and highway project

Cabinet decision highlights:

The decisions include the approval of a ₹30,000-crore compensation package for state-run oil marketing companies (OMCs) to offset losses incurred on the sale of domestic liquefied petroleum gas (LPG) in 2024-25.

The amount will be distributed among Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) by the Ministry of Petroleum and Natural Gas in 12 tranches, the government said in a statement.

The compensation will help the firms meet crude and LPG procurement needs, service debt and sustain capital expenditure, while ensuring continued availability of clean cooking fuel to households across the country, including those under flagship schemes like Pradhan Mantri Ujjwala Yojana (PMUY).

The Cabinet approved the continuation of targeted LPG subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries in 2025-26 at an expenditure of ₹12,000 crore.

The subsidy will provide ₹300 per 14.2 kg cylinder for up to nine refills a year (proportionately for 5 kg cylinders) to over 10.33 crore beneficiaries, the government said.

The targeted subsidy was introduced in May 2022 at ₹200 per cylinder and increased to ₹300 in October 2023 to shield consumers from international LPG price volatility.

The Cabinet also cleared 4,200-crore ‘Multidisciplinary Education and Research Improvement in Technical Education’ (MERITE) scheme aimed at improving quality, equity and governance in technical education.

The scheme will support 175 engineering institutions and 100 polytechnics across all states and Union territories over 2025-26 to 2029-30. It includes ₹2,100 crore external assistance from the World Bank.

About 7.5 lakh students are expected to benefit through interventions such as curriculum upgrades, faculty training, research support, digitalisation and employability-focused programmes aligned with the National Education Policy 2020.

The other Cabinet decision was related to special development packages in Assam and Tripura. The Cabinet approved four new components under the existing Central Sector Scheme of Special Development Packages for Assam and Tripura with an outlay of ₹4,250 crore.

The projects include ₹500 crore for Adivasi-inhabited areas in Assam, ₹500 crore for North Cacher Hills Autonomous Council areas, ₹3,000 crore for infrastructure development under agreements with ULFA groups, and ₹250 crore for tribal development in Tripura.

The packages, part of peace accords signed between the Centre, state governments and various ethnic groups, aim to improve socio-economic conditions, generate employment and promote stability in affected areas.

The Assam government will contribute an additional ₹3,000 crore from its own resources for ULFA-related projects.

Meanwhile, the Cabinet Committee on Economic Affairs approved the construction of a 4-lane Marakkanam–Puducherry section of NH-332A in Tamil Nadu at a total cost of ₹2,157 crore.

The 46-km stretch will be developed on Hybrid Annuity Mode (HAM) and is aimed at decongesting the existing 2-lane corridor, improving road safety and catering to rising traffic demand between Chennai, Puducherry, Viluppuram and Nagapattinam.

Part of the Chennai–Kanyakumari Economic Corridor, the upgraded section will integrate with two major national highways (NH-32, NH-332) and two state highways (SH-136, SH-203).

It will also connect to two airports (Chennai and Puducherry) two railway stations (Puducherry and Chinnababusamudram) and Cuddalore minor port.