Cabinet clears Rs 50,000 crore boost for agriculture and renewable energy

The Union Cabinet has approved a major funding push across agriculture and renewable energy, with a combined outlay exceeding Rs 50,000 crore. The approval covers three flagship initiatives, including the Prime Minister Dhan-Dhaanya Krishi Yojana, and aims to improve productivity in 100 low-performing districts while enabling infrastructure that supports clean energy adoption.

Under the scheme, Rs 24,000 crore has been earmarked for agricultural transformation over six years starting 2025–26. The programme will enhance irrigation, crop diversification, and post-harvest storage at the panchayat and block levels. These components are expected to drive demand for energy-efficient systems and solar-powered infrastructure in rural areas, especially in cold storage and water pumping.

The plan draws from NITI Aayog’s Aspirational Districts model and converges 36 central schemes across 11 departments. Each selected district will develop its own Agriculture and Allied Activities Plan, focused on sustainable farming, natural inputs, and water conservation.

Officials noted that energy applications are embedded in the implementation. Decentralised solar pumps can support improved irrigation, while renewable-powered storage systems can reduce post-harvest losses and diesel reliance. The government also aims to engage private partners and local stakeholders to deliver solutions at scale.

A digital dashboard will track progress monthly across 117 key performance indicators. NITI Aayog and Central Nodal Officers will provide oversight and planning support.

By promoting clean energy integration into rural infrastructure, the scheme is expected to boost farm productivity, cut fossil fuel use, and expand green livelihoods. It also aligns with India’s broader climate targets, 500 GW of non-fossil capacity by 2030 and net-zero emissions by 2070.