Lucknow: The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath at his official residence on Tuesday, approved 23 important proposals covering infrastructure, education, agriculture, employment, industrial development, healthcare, security and rural and urban development.
The decisions include the construction of the ₹1,008.67-crore Chitrakoot Link Expressway, enhancement of financial powers of engineers, development of government primary schools as smart schools, concessional loans of up to ₹6 lakh for small and marginal farmers, reservation for ex-Agniveers in government recruitment, increased duty allowance and cashless healthcare for Provincial Rakshak Dal (PRD) volunteers, and the Uttar Pradesh Toy Manufacturing Promotion Policy-2025.
Finance and Parliamentary Affairs Minister Suresh Kumar Khanna briefed the media about the Cabinet decisions.
Higher Financial Powers for Engineers
The Cabinet approved an increase in the delegated financial powers of engineers working in Uttar Pradesh’s engineering departments to speed up construction and development works.
The existing financial powers, governed by provisions under the Financial Rules Compilation, Volume-I, have remained substantially unchanged for more than three decades. The limits were revised from time to time, with the prevailing framework based on a Finance Department order issued more than 31 years ago.
The government noted that rising costs of construction materials, labour and services had made it increasingly difficult to execute even relatively small projects within the existing financial limits. As a result, engineers frequently had to seek approval from higher authorities, causing delays.
The revised powers will cover engineers in departments including Public Works, Irrigation, Minor Irrigation and Rural Engineering, among other engineering departments. The move is expected to reduce procedural delays, strengthen decision-making at the departmental level and accelerate road, irrigation, rural development and other construction projects.
Chitrakoot Link Expressway Gets ₹1,008.67 Crore Approval
The Cabinet approved the revised proposal for the 15.172-kilometre Chitrakoot Link Expressway, a six-lane, access-controlled greenfield road to be constructed under the Engineering, Procurement and Construction (EPC) mode.
The entire estimated cost of ₹1,008.67 crore will be borne by the Uttar Pradesh government, with no proposed financial participation from the Centre.
Following Cabinet approval, global bids will be invited for selection of the construction agency. The project is expected to significantly improve connectivity between Bundelkhand and Chitrakoot Dham, reduce travel difficulties for visitors from remote areas and strengthen the region’s tourism economy.
Chitrakoot Dham is an important religious and tourism destination, and the new expressway is expected to facilitate travel for pilgrims and tourists while supporting wider economic development in Bundelkhand.
PRD Volunteers Get Higher Allowance and Cashless Healthcare
The Cabinet approved two major welfare measures for Provincial Rakshak Dal volunteers.
The daily duty allowance has been increased from ₹500 to ₹600. A volunteer completing 30 days of duty will therefore receive an additional ₹3,000 a month.
The revised allowance will benefit 27,794 PRD volunteers, with an additional annual financial burden of approximately ₹101.44 crore on the state government. The total estimated annual expenditure on PRD volunteers will rise to around ₹608.68 crore. For the remaining period of the 2026-27 financial year, ₹45 crore has been provided through supplementary grants.
The Cabinet also approved the Mukhyamantri PRD Cashless Chikitsa Yojana, under which cashless medical treatment will be available to registered PRD volunteers and their dependent family members during their period of service.
At present, around 31,130 volunteers and dependents are expected to benefit. With an estimated annual premium of ₹3,000 per volunteer, the scheme will involve an annual expenditure of approximately ₹9.34 crore. The government has provided ₹5 crore through supplementary grants for the remaining period of 2026-27.
The scheme will be implemented through the State Agency for Comprehensive Health Integrated Services (SACHIS).
Volunteers and dependents already covered under government-sponsored health schemes such as Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana or Mukhyamantri Jan Arogya Abhiyan will not be covered under the new scheme.
₹6 Lakh Loans for Small and Marginal Farmers
The Cabinet approved concessional long-term loans under the Mukhyamantri Krishak Samriddhi Yojana for small and marginal farmers.
Through the Uttar Pradesh Cooperative Gram Vikas Bank Limited, eligible farmers will be able to obtain loans of up to ₹6 lakh at an annual interest rate of 6 per cent.
The measure is aimed at improving access to affordable institutional credit and supporting agricultural and rural economic activities.
20% Reservation for Ex-Agniveers
The government approved measures to facilitate the entry of former Agniveers into state government employment.
The Cabinet approved 20 per cent reservation in direct recruitment to Uttar Pradesh Jail Wardens. It also approved 20 per cent horizontal reservation along with age relaxation for ex-Agniveers in direct recruitment to Enforcement Constable posts in the Transport Department.
The measures are intended to create additional employment opportunities for youth completing their military service under the Agnipath system.
Chhata Sugar Mill to Get 120 KLPD Ethanol Plant
The Cabinet approved the establishment of a 120 KLPD ethanol production plant at the closed Chhata Sugar Mill in Mathura through a concession-cum-lease arrangement by Chhata Sugar Company Limited of the Uttar Pradesh State Sugar Corporation Limited.
The project, estimated to cost more than ₹200 crore, is expected to operate for around 11 months a year. Its annual ethanol production capacity will be approximately 3.96 crore litres.
Sugarcane will be the primary feedstock, while maize and paddy will also be used for ethanol production after the sugarcane crushing season.
The plant is expected to create direct and indirect employment for thousands of people and generate additional economic activity in the region. Its location, around 40 minutes from Noida International Airport, is also considered advantageous for developing warehousing and related infrastructure.
Uttar Pradesh Toy Manufacturing Promotion Policy-2025
The Cabinet approved the Uttar Pradesh Toy Manufacturing Promotion Policy-2025, aimed at positioning the state as a major centre for toy manufacturing while creating employment and supporting traditional artisans.
Finance Minister Suresh Kumar Khanna said Uttar Pradesh has a significant position in the country’s toy and festival-related product ecosystem and contributes around 50 per cent of India’s exports of articles associated with Indian festivals and festivities under HS 9505.
Varanasi, Jhansi and Chitrakoot are known for GI-tagged lacquerware and handmade wooden toys. The government expects the policy to create greater economic opportunities for artisans, women and rural communities while encouraging skill development and technological upgradation.
The policy will provide incentives to MSMEs as well as large and higher-category toy manufacturing units and toy cluster enterprises. Existing industries will be supported in expansion, diversification and technological upgradation, while new enterprises will receive assistance for establishing manufacturing facilities.
Special incentives will be offered for setting up toy industries in Eastern Uttar Pradesh, Bundelkhand and Madhyanchal, with the objective of spreading industrial activity and employment beyond established manufacturing centres.
Eligible MSME units will receive incentives under the Uttar Pradesh MSME Promotion Policy-2022 or the subsequent policy in force after its expiry. Large and higher-category units undertaking new projects, expansion or diversification will receive incentives under the proposed toy policy.
The policy will be implemented for five years from the date of its promulgation or until a new policy is introduced, whichever is earlier. Projects receiving incentives under the policy will not be eligible for incentives under another state government policy, although applicable schemes of the Government of India can be availed.
The MSME Department will implement the policy, while incentives for large and higher-category industries will be administered through Invest UP.
Government Schools to Be Developed as Smart Schools
The Cabinet approved a proposal to develop council primary schools under the Basic Education Council as smart schools.
The initiative is aimed at improving government school infrastructure and providing students with modern educational facilities and technology-enabled learning environments.
NSG Regional Centre in Ayodhya
In a decision related to national security, the Cabinet approved the free allocation of approximately 65 acres of barren government land in Pure Lal Khan village of Milkipur tehsil in Ayodhya to the Government of India for establishing a Regional Centre of the National Security Guard (NSG).
The Cabinet also approved exemption from effective stamp duty and registration fees on tenancy and lease deeds for a period of up to 10 years.
WorldFish Project for Purvanchal
The state government approved a Memorandum of Understanding between the Uttar Pradesh Department of Fisheries and WorldFish for implementing a WorldFish project in the Purvanchal region.
The initiative is expected to strengthen fisheries-related development and support livelihoods in eastern Uttar Pradesh.
Automated Testing Stations
The Cabinet approved amendments to the policy governing the establishment of Automated Testing Stations (ATS) for testing the technical fitness of vehicles in Uttar Pradesh.
The changes are intended to strengthen vehicle fitness testing and improve the state’s transport safety framework.
Margin Money for Fair Price Shop Dealers
The Cabinet approved an additional ₹25 per quintal margin money for fair price shop dealers in the state, calculated on the basis of the quantity of foodgrains distributed.
The decision is expected to provide additional financial support to dealers involved in the public distribution system.
Urban Expansion in Lucknow, Unnao and Raebareli
The Cabinet approved funding proposals for the development of Lucknow, Unnao and Raebareli under the Mukhyamantri Shahari Vistarikaran/Naye Shahar Protsahan Yojana.
The move is aimed at supporting planned urban expansion and infrastructure development in areas surrounding the three districts.
The Cabinet also approved a proposal concerning the completion of the already sanctioned Hi-Tech Township project in Lucknow.
Broader Development Push
The Cabinet decisions collectively reflect the Uttar Pradesh government’s focus on speeding up infrastructure execution, decentralising administrative decision-making, strengthening welfare support and attracting industrial investment.
The enhanced financial powers for engineers are expected to reduce approval bottlenecks in construction departments, while the Chitrakoot Link Expressway will strengthen connectivity and tourism in Bundelkhand. The ethanol plant at Chhata is expected to create employment and add value to the state’s agricultural and sugar economy.
At the same time, the PRD allowance and cashless healthcare measures seek to strengthen the welfare framework for volunteers, while the ex-Agniveer reservation will open additional avenues for government employment.
The Toy Manufacturing Promotion Policy is designed to combine industrial investment with traditional craftsmanship, particularly in Eastern Uttar Pradesh, Bundelkhand and Madhyanchal. Together with measures for farmers, government schools, fisheries, urban expansion and national security infrastructure, the 23 Cabinet decisions represent a wide-ranging package aimed at accelerating development and improving delivery of government programmes across the state.
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