Cabinet clears ₹30,000 cr LPG relief for PSUs, approves ₹4,200 cr MERITE scheme and North-East packages
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a set of major policy measures covering higher technical education reforms, financial relief to public sector oil companies for LPG sales losses, and targeted subsidies under the Pradhan Mantri Ujjwala Yojana (PMUY).
Union Minister Ashwini Vaishnaw said the decisions would help improve the quality of education, keep energy affordable for households, and safeguard the stability of critical state-run enterprises.
A significant part of the Cabinet’s agenda was the clearance of four new components under the existing Central Sector Scheme of Special Development Packages (SDPs) for Assam and Tripura.
The Centre will contribute ₹4,250 crore, with an additional ₹3,000 crore from the Assam government.
These include ₹500 crore for infrastructure development in Adivasi-inhabited areas of Assam under the 2022 Memorandum of Settlement (MoS) with Adivasi groups.
The government also approved ₹500 crore for infrastructure in North Cacher Hills Autonomous Council areas linked to the 2023 MoS with Dimasa National Liberation Army and Dimasa People’s Supreme Council groups.
Assam got an infrastructure boost with ₹3,000 crore sanctioned for projects under the 2023 MoS with ULFA groups while ₹250 crore was approved for tribal development in Tripura under the 2024 MoS with NLFT and All Tripura Tiger Force.
The Assam components will be funded with ₹4,000 crore from the Centre over five years from 2025-26 to 2029-30, while the Tripura project will receive ₹250 crore over four years from 2025-26 to 2028-29.
According to the government, the initiatives are expected to generate employment, promote skill development and entrepreneurship among youth and women, and help integrate marginalised communities into the economic mainstream.
They will also target improvements in education, healthcare and tourism in the North Eastern Region.
Officials noted that lakhs of Adivasi, Dimasa and other tribal residents stand to benefit, following the example of earlier MoS-based packages for Bodo and Karbi groups that have aided peace-building and regional development.
The Cabinet also approved the Multidisciplinary Education and Research Improvement in Technical Education (MERITE) scheme aimed at enhancing quality, equity and governance across 275 technical institutions — 175 engineering colleges and 100 polytechnics — in all States and Union Territories.
Running from 2025-26 to 2029-30, the ₹4,200 crore Central Sector Scheme includes a ₹2,100 crore loan from the World Bank.
Implementation will be overseen by a Central Nodal Agency with key participation from IITs, IIMs, the All India Council for Technical Education (AICTE), and the National Board of Accreditation (NBA).
Around 7.5 lakh students, as well as State and UT technical education departments, are expected to benefit.
MERITE will support digitalisation strategies, the creation of guidelines for multidisciplinary programmes, enhanced research and innovation, and the strengthening of accreditation and quality assurance.
It will also address employability through industry-aligned curricula, internships, skill labs, faculty training, innovation centres and language workshops.
The government said the initiative is intended to raise placement rates for graduates and reduce unemployment among engineering students.
In a separate decision, the Cabinet sanctioned ₹30,000 crore in compensation to public sector oil marketing companies — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — to cover losses from selling domestic LPG at regulated prices.
The funds will be disbursed in twelve tranches by the Ministry of Petroleum and Natural Gas. Officials said that international LPG prices remained high in 2024-25 and were not passed on to consumers, resulting in substantial under-recoveries.
The government said the compensation will help OMCs meet essential needs such as crude and LPG procurement, debt servicing, and capital investment, ensuring uninterrupted nationwide supplies.
It underscored that the move reflects its commitment to shielding consumers from global price volatility while protecting the financial health of PSU oil firms and guaranteeing the availability of clean cooking fuel.
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