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Healthcare Leadership, Policy & Digital Health News India > Blog > Govt Health > MP Government Approves ₹29,540 Crore Mega Infrastructure Plan with Strong Healthcare Push

MP Government Approves ₹29,540 Crore Mega Infrastructure Plan with Strong Healthcare Push

Published: May 12, 2026
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The Madhya Pradesh government has approved a massive ₹29,540 crore development package focused on infrastructure, healthcare expansion, irrigation, and social welfare schemes. The decision was taken during a cabinet meeting chaired by Chief Minister Mohan Yadav in Bhopal. Multiple reports confirmed that the investment is aimed at accelerating long term public infrastructure and welfare development across the state.

A significant portion of the allocation around ₹15,598 crore has been approved for finance department linked public programmes and projects under the 16th Finance Commission period from 2026 to 2031. The package includes funding for treasury modernization, pending liability settlements, IT infrastructure upgrades, asset maintenance, and accounts training systems.

Urban infrastructure emerged as one of the biggest focus areas in the cabinet decisions. The state sanctioned ₹6,900 crore for construction, strengthening, and upgradation of municipal and city roads. Reports indicate that ₹2,100 crore will support new road construction and upgrades, while ₹4,800 crore will be used to reinforce existing urban roads across Madhya Pradesh.

Healthcare expansion was highlighted as a major priority under the plan. The cabinet approved a revised healthcare infrastructure sanction of ₹763.40 crore for establishing a new medical ecosystem in Budni, Sehore district. The project includes a 100-seat MBBS medical college, a 500-bed teaching hospital, a nursing college, and a paramedical institute. Officials stated that the initiative is expected to improve access to advanced healthcare and medical education in central Madhya Pradesh.

The government also approved ₹6,115.99 crore for continuation of the Indira Gandhi National Old Age Pension Scheme under the National Social Assistance Programme (NSAP). The scheme supports senior citizens living below the poverty line through monthly pension assistance.

In the agriculture and irrigation sector, the cabinet cleared ₹163.95 crore for the Khumansingh Shivaji Reservoir Micro Irrigation Project in Neemuch district. According to official reports, the project will provide irrigation facilities to nearly 5,200 hectares of farmland across 22 villages.

The cabinet additionally approved administrative changes related to road construction projects, ministerial discretionary grants, and infrastructure cost adjustments for engineering and public works projects. Experts say the large scale investment package reflects Madhya Pradesh’s growing focus on balancing welfare schemes with infrastructure driven economic growth.

Some public discussions on social platforms have raised concerns regarding execution efficiency, governance accountability, and long term financial sustainability despite the large announcements. However, official government statements emphasize that the projects are designed to strengthen healthcare, infrastructure, and public services over the next five years.

“Several historic decisions were taken towards overall development and public welfare.”

By

HB Team

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