Cabinet Clears Kerala Renaming Bill, Rail and Metro Projects, MSP for Jute Hiked

February 24, 2026 : The Union Cabinet on Wednesday approved a proposal to change the name of the State of Kerala to “Keralam”, setting in motion the constitutional process required for altering the name of a state.

Briefing the media after the meeting, Information and Broadcasting Minister Ashwini Vaishnaw said that following the Cabinet’s approval, the President will refer the proposed Kerala (Alteration of Name) Bill, 2026 to the Kerala Legislative Assembly to seek its views. After the Assembly conveys its opinion, the Union Government will obtain the President’s recommendation for introducing the Bill in Parliament.

The Kerala Legislative Assembly had earlier passed a resolution on June 24, 2024, seeking to rename the state as Keralam.

In another major decision, the Cabinet Committee on Economic Affairs approved three railway multitracking projects covering eight districts across Maharashtra, Madhya Pradesh, Bihar and Jharkhand. The projects, estimated to cost ₹9,072 crore, are targeted for completion by 2030–31.

The approved works include doubling of the Gondia–Jabalpur railway line, addition of third and fourth lines between Punarakh and Kiul in Bihar, and third and fourth lines between Gamharia and Chandil in Jharkhand. According to the Minister, the projects will expand the Indian Railways network by about 307 kilometres and are expected to ease congestion and improve freight and passenger movement.

The Cabinet Committee on Economic Affairs also cleared the development of a Civil Enclave at Srinagar International Airport at an estimated cost of ₹1,677 crore. The project, spread over 73 acres, includes construction of facilities as well as barracks for security personnel. The government said the development would significantly strengthen aviation infrastructure and connectivity in the Kashmir Valley.

In Gujarat, the Cabinet approved the extension of the existing North–South corridor of Gujarat Metro Rail Corporation Limited from GIFT City to Shahpur. The 3.33-kilometre stretch will have three elevated stations and is expected to be completed in about four years. The estimated cost of the project is over ₹1,067 crore.

The Cabinet also granted enhanced delegation of powers to POWERGRID by increasing the equity investment threshold for its subsidiaries from ₹5,000 crore to ₹7,500 crore. The move is aimed at enabling the company to expand investments in its core transmission business and facilitate evacuation of renewable energy, in line with the national target of achieving 500 gigawatts of non-fossil fuel-based capacity.

On the agriculture front, the Cabinet approved the Minimum Support Price for Raw Jute (TD-3 grade) for the 2026–27 marketing season at ₹5,925 per quintal. This marks an increase of ₹275 per quintal over the 2025–26 season. The government said the revised MSP ensures a return of 61.8 percent over the all-India weighted average cost of production.

The Cabinet also reiterated its commitment to citizen-centric governance during its meeting at Seva Teerth. Referring to the Seva Sankalp Resolution adopted at the first meeting held at the premises, Mr Vaishnaw said the government resolved that every decision taken there would be guided by a spirit of service to 1.4 billion citizens and aligned with the broader goal of nation-building. The Cabinet reaffirmed its resolve to position India among the world’s top three economies in the coming years, with a focus on reforms and accountable governance.