UP cabinet approves MSP rise for paddy, Rs 647 crore in scholarships and new expressway plan

Finance Minister Suresh Kumar Khanna, Energy Minister Yogendra Upadhyay and Electronics and IT Minister Sunil Kumar Sharma briefed the media after the cabinet cleared the kharif procurement policy for 2025–26.

Paddy procurement in western Uttar Pradesh will run from October 1 to January 31, and in eastern districts from October 15 to February 28. The state has set a target of procuring 60 lakh metric tonnes of paddy.

Khanna said MSP for common paddy has been raised from Rs 2,300 to Rs 2,369 per quintal, while Grade A paddy MSP has been increased from Rs 2,330 to Rs 2,389. Some 3,100 procurement centres are already operational and the government plans to add 700 more; all centres will be equipped with moisture metres, electronic scales and other facilities.

The cabinet also approved a coarse-grain procurement policy effective October 1 to December 31. Maize MSP has been fixed at Rs 2,400 per quintal, up Rs 175 from last year, with procurement planned across 25 districts through 75 centres and a target of 15,000 tonnes.

Millet procurement has been set at Rs 2,775 per quintal, Rs 150 higher than a year ago, with purchases to be made through about 300 centres targeting 2.2 lakh tonnes across 33 districts. The MSPs for sorghum have been raised as well: hybrid sorghum at Rs 3,699 per quintal and Maldandi sorghum at Rs 3,749, with procurement to be carried out in 11 districts through 80 centres aimed at 50,000 tonnes.

The cabinet approved amendments to the District Mineral Foundation (DMF) Trust rules. Under the Third Amendment Rules, 70 percent of DMF funds will be spent on projects in directly affected areas, drinking water supply, environmental protection, healthcare, education and skill development, while the remaining 30 percent will be allotted to physical infrastructure, irrigation and alternative energy projects. Officials said the amendment imposes no additional burden on the state exchequer.

A major social sector decision allocates Rs 647.38 crore to reopen scholarship disbursals for students from backward communities who missed out in 2024–25. Funds will be transferred via Direct Benefit Transfer and are expected to benefit around 1 lakh Scheduled Caste students, 662 Scheduled Tribe students, 1.35 lakh Other Backward Class students and 2,52,882 students from minority communities.

In infrastructure, the cabinet approved construction of a 90-km greenfield link expressway connecting the Agra–Lucknow Expressway to the Ganga Expressway. The route will run from Etawah through Farrukhabad to connect with the Ganga Expressway in Hardoi.

Estimated project cost is Rs 7,488.74 crore, with an ambitious construction timeline of 548 days; the executing agency will also be responsible for five years of post-completion maintenance. Officials said the new corridor is expected to ease traffic and catalyse economic activity in the region.

To spur urban development, the government allocated Rs 3,000 crore under the Chief Minister’s urban expansion and new city promotion scheme for 2025–26. Of the projects approved so far, Rs 1,832.51 crore has been sanctioned and an initial Rs 970 crore will be released as seed capital to promote new cities including Rampur, Ayodhya, Lucknow, Baghpat and Baraut.

Additionally, the cabinet cleared the Sant Kabir Textile and Apparel Park scheme aimed at reviving traditional clusters and creating jobs. Each park will be allotted a minimum of 50 acres, officials said, as part of a broader push to position Uttar Pradesh as a major textile and apparel manufacturing hub.