7. Union Cabinet Approvals: Infrastructure, Agriculture, and Federal Reforms

The Cabinet Committee on Economic Affairs (CCEA) has sanctioned a comprehensive package worth ₹12,236 crore, focusing on multimodal connectivity, agricultural support, and strategic power sector reforms. These decisions aim to lower logistics costs, support the \'Golden Fibre\' industry, and address regional aspirations, reflecting a holistic approach to national development. Key Highlights of the Cabinet Decisions • MSP Hike for Raw Jute: The Minimum Support Price (MSP) for raw jute has been increased to ₹5,925 per quintal for the 2026-27 season, a hike of ₹275. This move supports India’s position as the world\'s largest jute producer (50-70% global share) and offsets rising input costs for farmers in the eastern states. • Railway De-congestion: Three major railway projects spanning 307 km across Maharashtra, Madhya Pradesh, Bihar, and Jharkhand were approved at a cost of ₹9,072 crore. These projects, including the doubling of the Gondia-Jabalpur line, aim to enhance freight capacity and reduce the carbon footprint of the logistics sector. • Power Sector Equity Expansion: The investment ceiling for Power Grid Corp. of India (PGCIL) has been raised from ₹5,000 crore to ₹7,500 crore. This enables the PSU to participate in high-value transmission bids, crucial for achieving the National Electricity Plan’s target of adding 191,000 circuit km by 2032. • Aviation and Urban Mobility: A new Civil Enclave at Srinagar International Airport (₹1,677 crore) was approved to bolster Kashmiri tourism. Additionally, a 3.33 km metro extension in Gujarat will connect GIFT City to Shahpur, strengthening the commercial ecosystem of India’s first operational smart city. • Renaming of Kerala: The Union Cabinet has initiated the process to rename the state of Kerala to \'Keralam,\' aligning with the linguistic and cultural identity of the Malayalam-speaking population as requested by the state assembly. Important Definitions • Minimum Support Price (MSP): A \'floor price\' set by the Government of India to protect farmers against any sharp fall in agricultural prices, based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). • Circuit Kilometre (ckm): A unit of measurement for the length of electrical transmission lines; it represents the total length of the conductors regardless of the number of circuits on a single tower. • Civil Enclave: An area at a military or defense airport allotted for the usage of civil aircraft and passenger terminals. • Cabinet Committee on Economic Affairs (CCEA): A high-level committee chaired by the Prime Minister that reviews economic trends and makes decisions on integrated economic policies and investment proposals. Constitutional and Legal Provisions • Article 3: Grants Parliament the power to form new states and alter the areas, boundaries, or names of existing states. The proposal to rename Kerala to \'Keralam\' follows this constitutional path, requiring the President to refer the matter to the State Legislature. • First Schedule: The renaming will necessitate an amendment to the First Schedule of the Constitution, which lists the names of all States and Union Territories. • State List (Schedule VII): Agriculture is a state subject, but the Centre intervenes through MSP and price support mechanisms under the \'Economic and Social Planning\' entry in the Concurrent List. Additional Key Insights • Jute Sector Significance: Jute is highly labor-intensive and eco-friendly. With global shifts away from single-use plastics, the \'Golden Fibre\' is strategic for India’s \'Green Economy\' goals. • Logistics Efficiency: The railway projects are part of the PM Gati Shakti National Master Plan, focusing on \'Last Mile Connectivity\' to bring down India\'s logistics cost from 13-14% of GDP to single digits. • Power Grid\'s Role: Raising the equity cap is vital as India transitions toward renewable energy, which requires a robust, flexible, and high-capacity national grid to handle intermittent power loads. Conclusion The latest CCEA approvals demonstrate a strategic alignment between infrastructure growth and social security. By simultaneously boosting the jute industry, expanding the national power grid, and improving regional connectivity in Gujarat and Jammu & Kashmir, the government is addressing both sectoral bottlenecks and regional aspirations. The procedural nod for renaming Kerala further emphasizes the \'Cooperative Federalism\' model by respecting state-led cultural identity shifts. UPSC Relevance • GS Paper II: Federalism (Renaming of states, Centre-State relations); Government policies and interventions. • GS Paper III: Infrastructure (Railways, Airports, Energy); Agriculture (MSP and farmer welfare); Economics (PSU investment caps). • Prelims: Article 3 procedures, Jute producing states, CCEA composition, and National Electricity Plan targets.