Government Allocates Rs 54,926 Crore to Boost Key Sectors in Latest Funding Push
Cabinet Clears ₹54,926 Crore Package to Power Industry, Highways, Hydropower and Cotton Support
The Union Cabinet has approved a ₹54,926 crore multi-sector package aimed at accelerating industrial development, improving transport connectivity, expanding hydropower capacity and supporting cotton farmers. The decisions, cleared on March 18, 2026, form part of the government’s latest push to strengthen manufacturing and infrastructure while extending targeted relief to the farm sector.
The biggest component is the BHAVYA scheme, which received ₹33,660 crore to develop 100 plug-and-play industrial parks across India. These parks are meant to offer ready infrastructure to manufacturers, shorten project setup time and attract fresh domestic and global investment. Reuters reported the broader plan as a 336.60 billion rupee industrial parks programme, while Indian media identified it as the BHAVYA initiative approved by the Cabinet.
Another major approval is linked to cotton farmers, with the Cabinet sanctioning ₹1,718.56 crore for minimum support price-related funding to the Cotton Corporation of India for the 2023-24 cotton season, a move aimed at supporting farmer incomes.
The rest of the package includes approvals tied to highway development in Uttar Pradesh and a hydropower push, reflecting the government’s emphasis on logistics and cleaner energy alongside manufacturing expansion. While the detailed project-wise breakup was not fully spelled out in the Reuters summary, multiple reports said these sectors were included in the Cabinet’s ₹54,926 crore decisions announced by Union Minister Ashwini Vaishnaw.
The industrial parks plan is expected to cover around 33,000 acres over six years, with support for core and social infrastructure, making it one of the government’s larger recent manufacturing interventions. The move aligns with New Delhi’s wider strategy to deepen domestic production, improve industrial readiness and create jobs at scale.
Overall, the package signals a coordinated attempt to push growth on several fronts at once: manufacturing through industrial clusters, rural support through cotton funding, mobility through highway expansion, and energy diversification through hydropower investment.
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