Cabinet clears Assam, Tripura development packages, Rs 4,200 cr MERITE scheme & LPG relief; check key highlights

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The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a set of major policy decisions spanning higher technical education reforms, relief to public sector oil companies for LPG losses, and continued targeted subsidies for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries.

Announcing the decisions, Union Minister Ashwini Vaishnaw said the measures would improve education quality, ensure energy affordability, and safeguard the financial stability of critical state-run enterprises.

Special development packages for Assam and Tripura

The Cabinet also approved four new components under the existing Central Sector Scheme of Special Development Packages (SDPs) for Assam and Tripura with a total outlay of Rs 4,250 crore from the Centre, alongside Rs 3,000 crore support from the Assam government.
The approved components are:

  • Rs 500 crore for infrastructure development in Adivasi-inhabited areas of Assam under the 2022 MoS signed with Adivasi groups.
  • Rs 500 crore for infrastructure development in North Cacher Hills Autonomous Council areas inhabited by Dimasa National Liberation Army (DNLA) and Dimasa People’s Supreme Council (DPSC) groups, as per the 2023 MoS.
  • Rs 3,000 crore for infrastructure in Assam under the 2023 MoS with ULFA groups.
  • Rs 250 crore for development of tribals in Tripura under the 2024 MoS with NLFT and All Tripura Tiger Force (ATTF).

The Assam components will receive Rs 4,000 crore from the Centre over five years (2025-26 to 2029-30), while the Tripura component will get Rs 250 crore over four years (2025-26 to 2028-29).
According to the government, these projects will create employment, benefit youth and women through skill development and entrepreneurship, and help mainstream affected communities. The packages aim to improve socio-economic conditions of marginalised groups, boost education and health services, and promote tourism in the North Eastern Region.
Lakhs of people across Adivasi and Dimasa communities in Assam, residents in other districts of Assam, and tribal communities in Tripura are expected to benefit. The move follows earlier MoS-based packages for Bodo and Karbi groups, which officials said have delivered positive outcomes in peace-building and development.
Also read: Cabinet approves support of Rs 30,000 crore for affordable LPG in households

MERITE scheme approved by Cabinet

The Cabinet cleared the Multidisciplinary Education and Research Improvement in Technical Education (MERITE) scheme to enhance quality, equity and governance in 275 technical institutions — 175 engineering colleges and 100 polytechnics — across all States and Union Territories.

The initiative, aligned with the National Education Policy 2020, will run from 2025-26 to 2029-30 with a total outlay of Rs 4,200 crore, including a Rs 2,100 crore loan from the World Bank. It is a Central Sector Scheme that will be implemented through a Central Nodal Agency, with eminent institutions such as IITs and IIMs, as well as regulatory bodies like AICTE and NBA, playing key roles.

An estimated 7.5 lakh students are expected to benefit, alongside State and UT technical education departments. The scheme will fund digitalisation strategies, develop guidelines for multidisciplinary programs, strengthen research and innovation, improve employability through labour market-aligned curricula, and boost accreditation and quality assurance mechanisms.

Employment-oriented interventions include internships, industry-relevant curriculum updates, faculty development programmes, research hubs, innovation centres, skill labs and language workshops. “The aim is to ensure higher placement rates for graduates and reduce unemployment among engineering students,” the government said.

Compensation to PSU OMCs for LPG losses

In a move to offset heavy losses from the sale of domestic LPG at regulated prices, the Cabinet approved Rs 30,000 crore in compensation to state-run oil marketing companies — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).

The amount will be disbursed in twelve tranches by the Ministry of Petroleum and Natural Gas. Officials said that high international LPG prices in 2024-25, which remain elevated, had not been passed on to consumers, leading to significant under-recoveries for the companies.

The compensation will enable the OMCs to meet essential expenses such as crude and LPG procurement, debt servicing and capital investments, thereby ensuring uninterrupted supplies across the country. The government stressed that this measure underscores its commitment to insulating consumers from global price volatility while protecting the financial health of PSU oil firms and ensuring the widespread availability of clean cooking fuel.



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