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IANSAshwini Vaishnaw
The Union Cabinet on Wednesday approved a set of proposals worth about Rs 1.74 lakh crore, spanning fertiliser support, energy infrastructure, urban transport and hydropower projects, according to official inputs. The decisions include major allocations for the upcoming Kharif season nutrient subsidy, expansion of the HPCL Rajasthan refinery, metro rail development in Jaipur, and two large hydropower projects.
Officials noted that DAP (Di-Ammonium Phosphate) prices have surged in international markets in the post-Covid period. However, the government has kept retail prices stable at Rs 1,350 per 50 kg bag to protect farmers.
The subsidy will cover phosphatic and potassic (P & K) fertilisers and will be applicable from 1 April 2026 to 30 September 2026.
The refinery, located in Pachpadra, Balotra district, Rajasthan, is expected to be one of the key energy infrastructure projects, with a capacity of 9 MMTPA. Commercial operations are scheduled to begin in July 2026.
The refinery is projected to generate significant economic impact, including around 1 lakh jobs during construction and 10,000 direct jobs during operations, along with multiple indirect employment opportunities. It is also expected to contribute approximately Rs 21 crore per year to the Centre and state exchequer.
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Fertiliser subsidy for Kharif 2026
The Cabinet approved a nutrient-based subsidy (NBS) scheme for the Kharif 2026 season, with a total support of Rs 41,534 crore. The government said the move is aimed at insulating farmers from global price volatility in fertilisers.Officials noted that DAP (Di-Ammonium Phosphate) prices have surged in international markets in the post-Covid period. However, the government has kept retail prices stable at Rs 1,350 per 50 kg bag to protect farmers.
The subsidy will cover phosphatic and potassic (P & K) fertilisers and will be applicable from 1 April 2026 to 30 September 2026.
HPCL Rajasthan Refinery expansion
The Cabinet also approved a revised cost of Rs 79,459 crore for the HPCL Rajasthan Refinery Ltd project. It also cleared HPCL’s equity contribution of Rs 19,600 crore.
The refinery, located in Pachpadra, Balotra district, Rajasthan, is expected to be one of the key energy infrastructure projects, with a capacity of 9 MMTPA. Commercial operations are scheduled to begin in July 2026.
The refinery is projected to generate significant economic impact, including around 1 lakh jobs during construction and 10,000 direct jobs during operations, along with multiple indirect employment opportunities. It is also expected to contribute approximately Rs 21 crore per year to the Centre and state exchequer.
Jaipur Metro Phase 2
Urban transport expansion also featured in the Cabinet decisions, with approval for Jaipur Metro Phase 2, estimated at Rs 13,038 crore. The project will cover the Prahladpura to Todi Mod corridor (41 km), aiming to expand urban mobility in the Rajasthan capital region.Hydropower projects cleared
The Cabinet gave the green light to two major hydroelectric projects:- Kamala Hydro Electric Project (1,720 MW) worth Rs 26,070 crore
- Kalai-II Hydro Electric Project (1,200 MW) worth Rs 14,106 crore
- These projects are expected to strengthen India’s renewable energy capacity and support peak power demand management.
Overall
Together, the approved proposals reflect a broad push across agriculture support, energy security and infrastructure development, with cumulative investments aimed at boosting employment, industrial capacity and regional connectivity.Add 
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