Cabinet approves ₹2.79 trillion for Rabi MSP, green energy, Delhi transport system | Today’s news

New Delhi: The Union Cabinet on Wednesday raised the minimum support prices (MSP) for all mandatory rabi crops for the 2027-28 (April-March) marketing season, with safflower seeing the biggest increase, while approving ₹1.86 trillion plan to expand the power grid aa ₹1,790 crore project to overhaul Delhi’s traffic management system.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved higher MSPs, which the government says should lead to a payout ₹90,962 crore for farmers who grow wheat, barley, gram, canola and mustard and safflower, among other crops, Union Information and Broadcasting Minister Ashwini Vaishnaw said at a press briefing.

MSP push

The largest increase was recorded by safflower ₹675 per cent, followed by canola and mustard at ₹413 per 100 kg. The government said higher MSPs aim to provide profitable returns to farmers and promote crop diversification.

Quick answers to key questions

•5 QUESTIONS

MSPs for rabi crops in 2027-28 include wheat at ₹2,610 per 100 kg, barley at ₹2,286, gram at ₹5,958, masur at ₹7,390, canola and mustard at ₹6,613 per 105.1 kg saf.

The government has increased MSP to provide profitable returns to farmers and promote crop diversification to move beyond cereals and encourage pulses and oilseeds.

ITMS uses real-time traffic data and adaptive signal control to dynamically adjust signal timing, improving traffic management and reducing delays at busy intersections.

The increased MSP is expected to boost farmers’ incomes by ensuring that prices are well above production costs, providing a margin that will increase their economic sustainability.

Yes, the new MSP for wheat is set at ₹2,610 per quintal, which is more than double the cost of production, leading to higher profits for wheat farmers.

The MSP for wheat, the largest food grain grown during the rabies season, has been increased ₹25 to ₹2,610 per 100 kg from ₹2,585 this marketing season and beyond ₹2,425 in the 2025-2026 marketing season. The wheat economic year begins in April. According to the government’s third advance estimate, wheat production was estimated at 120.6 million tonnes for the 2025-26 crop year.

The MSP for barley was increased by ₹136 to ₹2,286 per 100 kg, while for gram it was increased by o ₹83 to ₹5.958. The MSP for the lens, or masur, has been increased by ₹390 to ₹7,390 per 100 kg. The MSP for rapeseed and mustard was increased to ₹6,613 while the MSP flare was pegged at ₹7,215 per 100 kg.

The increase comes as the government tries to encourage farmers to shift acreage from cereals to pulses and oilseeds. The government said the revised MSPs are in line with the Union Budget 2018-19 decision to fix MSPs at least 1.5 times the all-India weighted average cost of production.

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Sharper increases in oilseeds and pulses, along with a relatively modest increase in wheat, reflect a calibrated policy shift towards crop diversification, import substitution and a broader shift away from a food security approach to nutrition security, said Satyam Shivam Sundaram, partner, strategy and transactions, EY LLP.

“Stronger incentives for crops such as rapeseed, safflower and masur are well aligned with India’s long-term goal of increasing self-sufficiency in edible oils and pulses, reducing import dependence and strengthening farm income resilience,” Sundaram said, commenting on the cabinet’s decision to raise the rabi MSP for the 2027-28 season.

Some argued that the increase in MSP for key rabi crops remains below the rise in input costs.

“The increase in MSP for rabi crops, ranging from 0.96% to 10.32%, is less than the increase in input costs for several major crops. For wheat, gram and lentil, the increases are only 0.96%, 1.41% and 5.57%, respectively. This also raises questions about the Panhir state government’s commitment to provide input margin over input margins,” said former member Panhir. Uttar Pradesh Planning Commission.

Grid and traffic

The Union Cabinet also approved the Green Energy Corridor Phase III scheme, which, according to a cabinet statement, is to set up 50 GWh of Battery Energy Storage Systems (BESS) and enable India’s national transmission system to evacuate up to 135 GW of renewable energy.

The plan is completed by fiscal year 2033 (FY33) and has a total project cost of ₹1.86 trillion, inclusive ₹1.36 trillion for the development of national transmission systems under GEC-III and ₹50,000 crore for 50 GWh BESS. The scheme includes total central financial support ₹54,082 million crowns.

Mint announced on August 11 that the Ministry of New and Renewable Energy (MNRE) will seek the Union Cabinet’s approval for ₹The third phase of India’s Green Energy Corridor with a volume of 50,000 crores.

The pressure comes as India’s rapid addition of solar and wind capacity outstrips the grid’s ability to evacuate electricity, forcing production cuts and becoming a key obstacle to achieving the country’s 2030 clean energy goals.

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“The scheme will bring together the Ministry of Power, Ministry of New and Renewable Energy, PowerGrid, state transmission companies and state governments,” Vaishnaw said during a press conference.

“GEC-III is a forward-looking scheme. Today’s constraint is largely on the ISTS grid, but once the ISTS exemption expires in June 2028, the economy is shifting towards national renewable energy and the state’s grids are not built for this load. Without national evacuation preparedness, we would simply shift this state’s congestion from central aggregation stations to this scheme. 50.0 GWh grid-connected storage is the smarter part,” said Sanjeev Aggarwal, founder and executive chairman of Hexa Climate, a renewable energy developer.

“Transmission solves distance and storage solves time and BESS commissions in months against four flights per line. The Ministry’s own principle that transmission must precede RE is correct,” he added.

CCEA has also approved a ₹1,790 crore proposal to overhaul Delhi’s traffic management system to reduce congestion on the capital’s roads.

The project will cover 42 identified transport corridors and will be implemented in three phases over a period of 24 months, followed by five years of operation and maintenance.

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The project assumes importance as vehicle growth has substantially outpaced the expansion of road infrastructure, while traffic regulation continues to rely heavily on fixed signal timing and manual intervention, the CCEA statement said.

The new system will include smarter traffic signals, timely information for commuters and a faster response to congestion and accidents.

“Delhi Police will implement the project through a lead system integrator selected through a tender process. C-DAC will provide technical support as a project management consultant, including technical review, monitoring, verification and acceptance during implementation, operation and maintenance,” the CCEA said in a statement.

C-DAC, which stands for Center for Development of Advanced Computing, is a government body under the Ministry of Electronics and Information Technology.