Union Cabinet Approves Major Decisions Including Additional Budget for Ujjwala Scheme & Technical Education

National News: An important meeting of the Union Cabinet was held today, during which five significant decisions were approved by the government. One of the key approvals includes an additional budget allocation of ₹12,060 crore for the Ujjwala scheme, which is expected to benefit over 10.33 crore people across the country. Additionally, the government has allocated ₹30,000 crore to ensure affordable LPG cylinders, offering significant relief to the general public.

The Cabinet also approved a budget of ₹4,200 crore for the development of technical education institutions. Furthermore, ₹4,250 crore has been allocated as a special development fund for Assam and Tripura. Another important decision is the approval of ₹2,157 crore for the development of the four-lane Marakkanam-Puducherry highway.

Key Approvals from the Cabinet Meeting:

• Additional budget of ₹12,060 crore for the Ujjwala scheme.
• ₹30,000 crore allocated for affordable LPG cylinders.
• ₹4,200 crore budget approved for technical education institutes.
• ₹4,250 crore special development fund for Assam and Tripura.
• ₹2,157 crore approved for Marakkanam-Puducherry four-lane highway.
• ₹30,000 Crore Compensation for LPG Subsidy

The Cabinet has approved an LPG subsidy of ₹30,000 crore to compensate state-owned oil companies—Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL)—for the losses incurred over the past 15 months due to selling LPG below cost price. According to an official statement, this compensation will be disbursed to the oil marketing companies (OMCs) in 12 installments.

Impact of International LPG Price Fluctuations

International LPG prices remained high throughout 2024-25 and are expected to continue at elevated levels. To shield domestic consumers from these price fluctuations, the government chose not to pass on the increased costs to LPG users, resulting in substantial financial losses for the public sector oil companies. Despite these challenges, these companies have ensured an uninterrupted supply of LPG to households at affordable rates.

₹4,200 Crore for Enhancing Technical Education

Union Minister Ashwini Vaishnav informed that the Cabinet approved the implementation of the Multi Disciplinary Education and Research Improvement in Technical Education (MERITE) scheme across 275 technical institutes. This includes 175 engineering colleges and 100 polytechnic institutes. The scheme is a centrally sponsored initiative with an estimated total cost of ₹4,200 crore for the period spanning 2025-26 to 2029-30. Of this amount, ₹2,100 crore will be provided as external assistance in the form of a loan from the World Bank.