Government Schemes February 2026 — Budget & Cabinet Approvals for NDA, CDS, AFCAT & CAPF

February 2026 is the single largest source of scheme announcements in the whole window, because it contains the Union Budget. That also makes it the month where candidates lose the most marks: a Budget announcement is not a Cabinet-approved scheme. Several February items — the chemical parks proposal, India Semiconductor Mission 2.0, the Khelo India mission — reappear later in the year as fully approved schemes with different names and different outlays. Read the status pill on every entry before you memorise the figure next to it.

February 2026 schemes at a glance

PM-RAHAT Scheme

CABINET APPROVED · 13 Feb 2026

Ministry: Road Transport & Highways / National Health Authority

If you are in a road accident anywhere in India, hospitals treat you first and settle the bill later, with the government paying up to ₹1.5 lakh directly.

Why it is in the news: Launched nationwide on 13 February 2026 and formally named PM-RAHAT by notification dated 19 February 2026.

• Cashless treatment up to ₹1.5 lakh per victim, for a maximum of 7 days from the date of accident, on any category of road.
• Legal basis: Section 162, Motor Vehicles Act 1988. Covers all eligible victims regardless of income, insurance status or hit-and-run cases.

Startup India Fund of Funds 2.0 (FoF 2.0)

CABINET APPROVED · 13/14 Feb 2026

Ministry: DPIIT, Ministry of Commerce & Industry

The government does not pick startups itself. It gives money to other investment funds, and those funds pick the startups.

Why it is in the news: Cabinet approval in February 2026 brought the fund into current affairs.

• Corpus: ₹10,000 crore.
• Beneficiaries: Indian startups, especially deep-tech, technology-led manufacturing and early-growth-stage firms.

₹1 Lakh Crore Urban Challenge Fund

CABINET APPROVED · 14 Feb 2026

Ministry: Housing & Urban Affairs

The Centre pays only 25% of a city project’s cost. The city must raise the rest itself through bonds, loans or private partners.

Why it is in the news: Cabinet approval on 14 February 2026.

• Total Central Assistance ₹1 lakh crore, covering 25% of project cost; the city must raise a minimum 50% from the market.
• A dedicated ₹5,000 crore Credit Repayment Guarantee Scheme helps about 4,223 cities access market finance.

Agriculture Infrastructure Fund — Expanded Target

MAJOR EXPANSION

Ministry: Agriculture & Farmers Welfare

Banks lend money to build cold storages, warehouses and processing units for farm produce, and the government pays part of the interest.

Why it is in the news: The credit target was doubled in February 2026.

• Originally launched in 2020; loan target increased from ₹1 lakh crore to ₹2 lakh crore.
• Supports post-harvest management, storage, processing and community farming infrastructure.

Lakhpati Didi — Expanded National Target

TARGET REVISION

Ministry: Rural Development

This is a target, not a cash payout. Women in Self-Help Groups get training and support until their household income crosses a lakh a year.

Why it is in the news: A revised national target was announced in February 2026.

• The 3-crore milestone was stated to have been crossed ahead of the earlier timeline.
• New target: 6 crore Lakhpati Didis by March 2029.

PLI Scheme 1.2 for Specialty Steel

LAUNCHED · 9 Feb 2026

Ministry: Steel

The government pays a cash bonus to companies based on how much they actually manufacture and sell, not just for building a factory.

Why it is in the news: A fresh version of the PLI framework for specialty steel was launched on 9 February 2026.

• A fresh version of the Production Linked Incentive framework, specifically for specialty steel.
• Beneficiaries: eligible domestic specialty-steel manufacturers and investors.

Kisan e-Mitra

PLATFORM LAUNCH (PHASE I) · 17 Feb 2026

Ministry: Agriculture & Farmers Welfare

Earlier farmers had to visit different offices for crop insurance, income support or soil testing. Now it is all on one platform.

Why it is in the news: Phase I of the unified farmer assistance platform launched on 17 February 2026.

• Phase I integrates major Central agriculture schemes on one assistance platform: PM-KISAN, PMFBY, Soil Health Card, KCC, AIF, PMKSY and PM-AASHA.

CBDC-based Food Subsidy Pilot under PMGKAY

PILOT · 26 Feb 2026

Ministry: Dept of Food & Public Distribution

Normal subsidy money can be spent on anything. This pilot pays subsidy using India’s digital currency, which can be locked to specific uses.

Why it is in the news: India’s first CBDC-based PDS pilot began on 26 February 2026.

• Launched in Puducherry, using the RBI’s Central Bank Digital Currency for subsidy delivery.
• Objective: programmable, targeted and traceable subsidy delivery.

Biopharma SHAKTI

BUDGET ANNOUNCEMENT

Ministry: Department of Biotechnology

Medicines like insulin, vaccines and cancer drugs are mostly imported today. This funds Indian companies to build the facilities to make them here.

Why it is in the news: Announced in the Union Budget 2026-27.

• Full form: Strategy for Healthcare Advancement Through Knowledge, Technology and Innovation.
• Outlay: ₹10,000 crore over five years.

Regional Medical Hubs Scheme

BUDGET ANNOUNCEMENT

Ministry: Health & Family Welfare

Instead of patients flying abroad for treatment, this builds hospitals in India with private partners aimed at medical value travel.

Why it is in the news: Announced in the Union Budget 2026-27.

• 5 Regional Medical Hubs proposed, developed by States in partnership with the private sector.
• Each hub combines medical treatment, medical education and research under one roof.

Buddhist Circuits Development Scheme

BUDGET ANNOUNCEMENT

Ministry: Tourism

North-East India has many Buddhist pilgrimage sites that are hard to visit because of poor roads and facilities. This funds better access.

Why it is in the news: Announced in the Union Budget 2026-27.

• Covers Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura.
• Components: preservation of temples and monasteries, pilgrimage interpretation centres and improved connectivity.

Tourist Guide Upskilling Pilot Scheme

BUDGET PILOT

Ministry: Tourism

Tour guides vary widely in quality. This gives 10,000 guides the same 12-week training at 20 major sites.

Why it is in the news: Announced in the Union Budget 2026-27.

• Target: 10,000 guides across 20 iconic sites, with 12-week standardised training.
• Delivered in hybrid mode in collaboration with an Indian Institute of Management.

Seaplane VGF Scheme

BUDGET ANNOUNCEMENT

Ministry: Civil Aviation

Seaplane routes to islands or hilly areas often lose money for airlines, so the government pays the difference.

Why it is in the news: Announced in the Union Budget 2026-27.

• Viability Gap Funding for seaplane operations and connectivity.
• Purpose: improve remote connectivity and tourism, and encourage indigenous seaplane manufacture.

India Semiconductor Mission 2.0 — Budget Stage

BUDGET ANNOUNCEMENT

Ministry: MeitY

This was only the Budget’s first mention with a placeholder amount. The fully funded scheme came in July as Semicon 2.0.

Why it is in the news: The Budget carried the first mention of a larger chip-making plan.

• Budget-stage FY27 provision highlighted: ₹1,000 crore.
• Objectives: produce semiconductor equipment and materials, develop full-stack Indian IP and fortify supply chains.

Electronics Components Manufacturing Scheme — Expansion

MAJOR EXPANSION

Ministry: MeitY

This pays companies that make the small parts inside gadgets — chips, circuit boards, connectors — not the finished device.

Why it is in the news: The Budget proposed raising the outlay after commitments exceeded the original target.

• Existing scheme launched April 2025 with an original outlay of ₹22,919 crore.
• Budget 2026-27 proposed raising the outlay to ₹40,000 crore.

Veterinary Infrastructure Loan-linked Capital Subsidy Scheme

BUDGET ANNOUNCEMENT

Ministry: Dept of Animal Husbandry & Dairying

If someone builds a veterinary college or hospital using a bank loan, the government repays part of that loan later.

Why it is in the news: Announced in the Union Budget 2026-27.

• Supports private veterinary colleges, hospitals, diagnostic labs and breeding facilities.
• Target: over 20,000 additional veterinary professionals.

SME Growth Fund

BUDGET ANNOUNCEMENT

Ministry: MSME / Finance

Equity support for promising MSMEs, announced alongside faster payment cycles and easier credit.

Why it is in the news: Announced as part of a three-pronged Champion MSME strategy.

• Equity support: SME Growth Fund of ₹10,000 crore, plus a ₹2,000 crore top-up to the Self-Reliant India Fund.

Textile Parks Initiative

BUDGET ANNOUNCEMENT

Ministry: Textiles

The National Fibre Scheme secures raw fibre supply while the Textile Expansion Scheme upgrades capacity.

Why it is in the news: Announced as part of the Integrated Programme for the Textile Sector.

• Part of the new Integrated Programme for the Textile Sector, with five sub-components.
• National Fibre Scheme targets self-reliance in silk, wool, jute, man-made and new-age fibres.

Mahatma Gandhi Gram Swaraj Initiative

BUDGET ANNOUNCEMENT

Ministry: Traditional industries ecosystem

Khadi and handicraft artisans usually cannot sell beyond their local area. This helps with branding and market linkages.

Why it is in the news: Announced in the Union Budget 2026-27.

• Purpose: strengthen Khadi, handloom and handicrafts.
• Focus: global market linkages, branding, training, skilling and quality.

Scheme for Revival of 200 Legacy Industrial Clusters

BUDGET ANNOUNCEMENT

Ministry: Commerce & Industry / DPIIT

Old industrial towns often have outdated roads, power and waste systems. This funds upgrading that shared infrastructure.

Why it is in the news: Announced in the Union Budget 2026-27.

• Target: 200 legacy industrial clusters whose shared infrastructure has fallen behind.
• Objective: improve cost competitiveness and operational efficiency.

Self-Reliant India Fund — Additional Allocation

BUDGET EXPANSION

Ministry: MSME

Like the Startup Fund of Funds but for very small businesses, with government money flowing through investment funds.

Why it is in the news: The Budget provided an additional top-up to the existing fund.

• Originally set up in 2021; this Budget adds a ₹2,000 crore top-up.
• Continues providing equity-style risk capital to micro enterprises.

Infrastructure Risk Guarantee Fund

BUDGET ANNOUNCEMENT

Ministry: Finance

Infrastructure projects often stall because investors fear delays or cost overruns. This fund covers part of that risk.

Why it is in the news: Announced in the Union Budget 2026-27.

• Provides partial credit guarantees to lenders covering the development and construction phase.
• That construction-phase risk has historically been largely unbankable for Indian lenders.

Coastal Cargo Promotion Scheme

BUDGET ANNOUNCEMENT

Ministry: Ports, Shipping & Waterways

Most goods in India move by road or rail, which is costly and congests highways. This makes sea and river freight cheaper.

Why it is in the news: Announced in the Union Budget 2026-27.

• Target: raise inland-waterway and coastal-shipping modal share from 6% to 12% by 2047.
• Announced with a new Dedicated Freight Corridor from Dankuni to Surat and 20 new National Waterways.

CCUS Programme

BUDGET ANNOUNCEMENT

Ministry: Energy and heavy-industry ministries

Factories release CO2 that heats the planet. CCUS captures it before it escapes and either reuses or stores it.

Why it is in the news: Announced in the Union Budget 2026-27.

• CCUS stands for Carbon Capture, Utilisation and Storage.
• Outlay proposed: ₹20,000 crore over five years across power, steel, cement, refineries and chemicals.

City Economic Regions (CER) Programme

BUDGET ANNOUNCEMENT

Ministry: Housing & Urban Affairs

Instead of funding one city at a time, this groups nearby cities that share an economic strength and funds them together.

Why it is in the news: Announced in the Union Budget 2026-27.

• Allocation proposed: ₹5,000 crore per CER over five years.
• Implementation: challenge mode with reform-cum-results-based financing.

Girls’ Hostel in Every District

BUDGET ANNOUNCEMENT

Ministry: Education

Many girls drop out of college because there is no safe place to stay nearby. This funds a hostel in every district.

Why it is in the news: Announced in the Union Budget 2026-27.

• Capital support with a coverage ambition of one girls’ hostel in every district.
• Aimed specifically at girl students in higher-education STEM institutions.

Khelo India Mission — Budget Announcement

BUDGET ANNOUNCEMENT

Ministry: Youth Affairs & Sports

This was the Budget’s first announcement of a decade-long sports plan. The funded scheme arrived in July as the revamped Khelo India Scheme.

Why it is in the news: The Budget announced a decade-long sports plan ahead of the July scheme.

• Decade-long sports-development mission building on the existing Khelo India programme.
• Five areas: talent pathway, coaches and support staff, sports science, competitions and infrastructure.

Bharat-VISTAAR

BUDGET INITIATIVE

Ministry: Agriculture & Farmers Welfare

Farmers often do not get advice suited to their own soil or region. This AI platform combines farm data with expert advice.

Why it is in the news: Announced in the Union Budget 2026-27.

• VISTAAR stands for Virtually Integrated System to Access Agricultural Resources.
• A multilingual AI tool integrating AgriStack portals and ICAR packages with AI systems.

Divyangjan Kaushal Yojana

BUDGET ANNOUNCEMENT

Ministry: Dept of Empowerment of Persons with Disabilities

This trains persons with disabilities for real jobs, matched to what they can do and what employers need.

Why it is in the news: Announced in the Union Budget 2026-27.

• Customised, industry-relevant training for Divyangjan.
• Focus sectors: IT, AVGC (animation, VFX, gaming, comics), hospitality, and food and beverages.

Integrated Development of 500 Reservoirs and Amrit Sarovars

BUDGET INITIATIVE

Ministry: Fisheries and water-resource convergence

Many old water bodies in India have silted up and gone unused. This funds reviving them for irrigation and fisheries.

Why it is in the news: Announced in the Union Budget 2026-27.

• Target: 500 reservoirs and Amrit Sarovars developed as fisheries hubs under the PMMSY framework.
• Beneficiaries: reservoir fishermen, fish farmers, women SHGs and Fish Farmer Producer Organisations.

Construction & Infrastructure Equipment (CIE) Enhancement Scheme

BUDGET ANNOUNCEMENT

Ministry: Heavy Industries

Heavy machines used for building roads and metros are mostly imported. This funds Indian manufacture of that equipment.

Why it is in the news: Announced in the Union Budget 2026-27.

• Full name: Scheme for Enhancement of Construction and Infrastructure Equipment.
• Objective: strengthen domestic manufacturing of high-value construction and infrastructure equipment.

Container Manufacturing Scheme

BUDGET ANNOUNCEMENT

Ministry: Ports, Shipping & Waterways

Nearly every shipping container India uses is imported. India makes only about 30,000 a year on its own.

Why it is in the news: Announced in the Union Budget 2026-27.

• Allocation: over ₹10,000 crore for five years for a domestic container-manufacturing ecosystem.
• Longer-term target: build toward 1 million TEU of annual domestic manufacturing capacity over ten years.

PM Surya Ghar: Muft Bijli Yojana — Budget Boost and Progress Update

BUDGET OUTLAY INCREASE + IMPLEMENTATION UPDATE

Ministry: New & Renewable Energy (MNRE)

This pays households to put solar panels on their own roof so their electricity bill drops. It is separate from PM Surya Sarovar Yojana.

Why it is in the news: The Budget raised the allocation and PIB reported installation progress.

• Budget 2026-27 allocation raised to ₹22,000 crore, up from ₹17,000 crore revised estimate in FY26.
• Progress as of 19 March 2026: 26.19 lakh rooftop solar installations completed.

PM-SETU — Skilling and Employability Transformation through Upgraded ITIs

MAJOR 2026 IMPLEMENTATION UPDATE

Ministry: Skill Development & Entrepreneurship

ITIs train India’s electricians, fitters and welders, but many run on old equipment. This upgrades them on a hub-and-spoke model.

Why it is in the news: 2026 news concerns accelerated implementation and State-level rollout.

• Approved in 2025; the 2026 development is accelerated implementation of the hub-and-spoke model.
• 1,000 Government ITIs upgraded: 200 Hub ITIs and 800 Spoke ITIs.

Rare Earth Corridors

BUDGET ANNOUNCEMENT

Ministry: Mines

Rare-earth elements go into magnets used in EV motors, wind turbines and defence electronics, and China dominates global supply.

Why it is in the news: Announced in the Union Budget 2026-27.

• Budget proposed support to Odisha, Kerala, Andhra Pradesh and Tamil Nadu for dedicated Rare Earth Corridors.
• Focus: mining, processing, research and manufacturing.

Dedicated Sports Goods Initiative

BUDGET ANNOUNCEMENT

Ministry: Sports and manufacturing ecosystem

India imports much of its sports equipment despite having a domestic manufacturing base. This pushes Indian production.

Why it is in the news: Announced in the Union Budget 2026-27.

• Purpose: promote domestic sports-goods manufacturing, research and innovation.
• Focus areas: equipment design and material sciences.

Foreign Assets of Small Taxpayers — Disclosure Scheme (FAST-DS), 2026

BUDGET TAX SCHEME

Ministry: Finance / Income Tax Department

If a small taxpayer forgot to declare a foreign bank account or asset, this gives them a one-time window to come clean.

Why it is in the news: Announced in the Union Budget 2026-27.

• A one-time, time-bound six-month disclosure window for specified small taxpayers with foreign assets below prescribed thresholds.
• Two taxpayer categories proposed, with differing thresholds and settlement conditions.

Divyang Sahara Yojana

BUDGET ANNOUNCEMENT

Ministry: Dept of Empowerment of Persons with Disabilities

The companion scheme to Divyangjan Kaushal Yojana: that one covers skilling and jobs, this one covers assistive devices.

Why it is in the news: Announced in the Union Budget 2026-27 alongside Divyangjan Kaushal Yojana.

• Supports ALIMCO to scale up production, invest in R&D and integrate AI into assistive devices.
• Strengthens PM Divyasha Kendras and sets up Assistive Technology Marts.

AVGC Content Creator Labs in Schools and Colleges

BUDGET ANNOUNCEMENT

Ministry: Information & Broadcasting / IICT

India’s animation, gaming and VFX industry is projected to need about 2 million professionals by 2030, with no large-scale training pipeline.

Why it is in the news: Announced in the Union Budget 2026-27.

• Target: AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
• Implementing anchor: the Indian Institute of Creative Technologies, Mumbai.

Carbon Credit Trading Scheme (CCTS) — 2026 Operationalisation

EXISTING SCHEME — 2026 OPERATIONALISATION

Ministry: Power / Bureau of Energy Efficiency

Companies that cut emissions below target earn tradable carbon credits and can sell them; those that exceed targets must buy credits.

Why it is in the news: The Indian Carbon Market reached operational maturity in 2026.

• Compliance mechanism: greenhouse gas emission intensity targets notified for seven energy-intensive sectors.
• Offset mechanism: approved methodologies put in place.

PLI Scheme for Textiles — Registration Extension

EXISTING PLI SCHEME — WINDOW EXTENDED

Ministry: Textiles

This existing incentive scheme for man-made-fibre apparel and technical textiles was not attracting enough mid-sized applicants.

Why it is in the news: PIB reported on 10 February 2026 that the application deadline was extended.

• PIB reported on 10 February 2026 that the application deadline was extended to 31 March 2026.
• Earlier amendments reduced the minimum investment requirement by 50%.

Vibrant Villages Programme (VVP-I and VVP-II) — 2026 Update

EXISTING FLAGSHIP PROGRAMME — 2026 UPDATE

Ministry: Home Affairs

Villages on India’s international border often empty out as people move to cities. This programme funds roads, jobs and services to keep them populated.

Why it is in the news: PIB gave a fresh implementation update on 3 February 2026 with village counts under both phases.

• VVP-I approved 15 February 2023 as a Centrally Sponsored Scheme; VVP-II approved 2 April 2025 as a Central Sector Scheme.
• VVP-I covers 662 villages across 5 northern-border States and UT; VVP-II covers 1,954 villages across 15 States and 2 UTs.

Scheme for Dedicated Chemical Parks

BUDGET ANNOUNCEMENT

Ministry: Dept of Chemicals & Petrochemicals

The original Budget-stage idea: three plug-and-play chemical parks with shared infrastructure so companies do not each build their own.

Why it is in the news: The Budget-stage proposal that became BHAVYA-Rasayan in July.

• Budget proposed support to States for 3 dedicated Chemical Parks through a challenge route on a cluster-based model.
• Purpose: increase domestic chemical production and reduce import dependence.

Self Help Entrepreneur Marts (SHE-Marts)

BUDGET INITIATIVE / DAY-NRLM MEASURE

Ministry: Department of Rural Development

Rural women’s Self-Help Groups often make good products but struggle to sell beyond their own village. These are community-owned retail outlets.

Why it is in the news: Announced in Union Budget 2026-27, with implementation discussed March to June 2026.

• SHE stands for Self Help Entrepreneur; implementation strategy discussed under DAY-NRLM.
• Marts are envisaged as community-owned retail outlets within Cluster Level Federations.

Frequently asked questions

Is a Budget announcement the same as a Cabinet-approved scheme?

No, and this distinction is deliberately tested. A Budget announcement signals intent and a provisional allocation. Cabinet approval makes a scheme operational with a confirmed outlay and period. Several February 2026 Budget announcements were only approved later in the year, sometimes under different names and different figures.

What is PM-RAHAT?

A cashless treatment scheme for road accident victims, launched nationwide on 13 February 2026 and formally named by notification on 19 February 2026. It provides up to Rs 1.5 lakh per victim for a maximum of 7 days, on any category of road, under Section 162 of the Motor Vehicles Act 1988.

What does VISTAAR stand for in Bharat-VISTAAR?

Virtually Integrated System to Access Agricultural Resources. It is a multilingual AI advisory tool integrating AgriStack portals and ICAR packages of practices, announced in the Union Budget 2026-27.

Which schemes had a Rs 10,000 crore figure in February 2026?

Three separate ones, which is why they are confused: Startup India Fund of Funds 2.0 under DPIIT, the SME Growth Fund under the MSME and Finance ecosystem, and Biopharma SHAKTI under the Department of Biotechnology. The Container Manufacturing Scheme also carried an allocation of over Rs 10,000 crore.

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