Cabinet clears Rs. 24,000 crore (US$ 2.79 billion) agriculture push, investments in green energy

The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY), a landmark Rs. 24,000 crore (US$ 2.79 billion) a-year scheme set to transform agriculture and allied sectors in 100 districts starting FY26. The scheme is designed to enhance farm productivity, promote crop diversification and sustainable practices, and improve post-harvest infrastructure at the panchayat and block levels. It also aims to expand irrigation coverage and increase farmers’ access to both short- and long-term credit. Based on the successful model of NITI Aayog’s Aspirational Districts Programme, PMDDKY will converge 36 existing schemes under one comprehensive framework. Districts will be selected using three key indicators: low agricultural productivity, low cropping intensity, and limited credit disbursement. Implementation will begin in August 2025, with an estimated 1.7 crore farmers expected to benefit in the next six years.
In tandem, the Cabinet also approved new investments to bolster India’s renewable energy sector. National Thermal Power Corporation (NTPC) Ltd has been granted enhanced financial autonomy to invest up to Rs. 20,000 crore (US$ 2.33 billion) through its subsidiary, NTPC Green Energy Ltd. In comparison, NLC India Ltd (NLCIL) will invest Rs. 7,000 crore (US$ 814.6 million) via its green arm, NLC India Renewables Ltd. These moves aim to accelerate the companies’ respective targets of 60 Gigawatt (GW) and 10 GW of renewable energy capacity by 2032 and 2030. The exemptions granted to NLCIL also enable greater operational flexibility, bypassing the 30% net worth cap. The announcements come as India celebrates achieving 50% non-fossil fuel-based power generation capacity, five years ahead of its 2030 target.

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