Which government schemes were approved in May 2026?
The Union Cabinet approved four schemes in May 2026: the Mission for Cotton Productivity (₹5,659.22 crore, 2026-27 to 2030-31), ECLGS 5.0 targeting ₹2.55 lakh crore of additional credit, the Surface Coal/Lignite Gasification Promotion Scheme (₹37,500 crore, supporting the 100 MT-by-2030 gasification goal), and SARTHAK-PDS, an umbrella continuation with a Central share of ₹25,530 crore over five years.
May 2026 was a four-approval month, but an unusually clean one to revise: each Cabinet decision sits in a different sector — agriculture, credit, energy and food distribution. Two of the four carry outlays examiners like (₹37,500 crore for coal gasification, ₹25,530 crore as the Central share of SARTHAK-PDS), and one, ECLGS 5.0, contains the single most-tested trap of the month: the split between a 100% guarantee and a 90% guarantee.
May 2026 schemes at a glance
| Scheme / initiative | Status | Ministry / department |
|---|---|---|
| Mission for Cotton Productivity | CABINET APPROVED · 5 May 2026 | Agriculture & Farmers Welfare (Textiles-linked) |
| Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0) | CABINET APPROVED · 5 May 2026 | Dept of Financial Services |
| Surface Coal/Lignite Gasification Promotion Scheme | CABINET APPROVED · 13 May 2026 | Coal |
| SARTHAK-PDS | CABINET APPROVED (UMBRELLA CONTINUATION) · 27 May 2026 | Dept of Food & Public Distribution |
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Mission for Cotton Productivity
CABINET APPROVED · 5 May 2026
Ministry: Agriculture & Farmers Welfare (Textiles-linked)
Indian cotton farms produce less per hectare than competitors like China or the US, and quality issues hurt export prices. This mission funds better seeds and cleaner harvesting to fix both.
Why it is in the news: Cabinet/CCEA approval during the Feb-Jul 2026 window brought the scheme into current affairs.
- Outlay: ₹5,659.22 crore. Period: 2026-27 to 2030-31.
- Focus: HYV seeds, disease/pest resistance, improved crop technologies, reduced contamination.
- Implementation partners: State Governments, Krishi Vigyan Kendras (KVKs), State Agricultural Universities.
Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0)
CABINET APPROVED · 5 May 2026
Ministry: Dept of Financial Services
When a crisis hits, banks get scared to lend to small businesses. Under ECLGS, if a bank lends anyway, the government promises to cover most of that loan if the business cannot repay.
Why it is in the news: Cabinet/CCEA approval during the Feb-Jul 2026 window brought the scheme into current affairs.
- Response to liquidity stress from West Asia-related disruption.
- Target additional credit flow: ₹2.55 lakh crore, including ₹5,000 crore for airlines.
- Guarantee: 100% for eligible MSME credit, 90% for specified eligible non-MSMEs/airlines.
Surface Coal/Lignite Gasification Promotion Scheme
CABINET APPROVED · 13 May 2026
Ministry: Coal
Burning coal directly is very polluting. Turning it into gas first lets it be converted into cleaner fuels and chemicals that India currently imports. This scheme funds building those plants.
Why it is in the news: Cabinet/CCEA approval during the Feb-Jul 2026 window brought the scheme into current affairs.
- Outlay: ₹37,500 crore.
- Supports the national goal of gasifying 100 MT coal by 2030.
- Reduces dependence on imported LNG, methanol, ammonia, urea.
SARTHAK-PDS
CABINET APPROVED (UMBRELLA CONTINUATION) · 27 May 2026
Ministry: Dept of Food & Public Distribution
Running ration shops involves transporting grain and paying shopkeepers a margin. SARTHAK-PDS merges the overlapping schemes that funded this into one and adds technology reform.
Why it is in the news: Cabinet/CCEA approval during the Feb-Jul 2026 window brought the scheme into current affairs.
- Full umbrella name: Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS.
- Central share: ₹25,530 crore over 5 years, under the 16th Finance Commission cycle.
- Integrates assistance for intra-State foodgrain movement/FPS dealer margins under NFSA with SMART-PDS technology reforms.
Frequently asked questions
How many schemes did the Cabinet approve in May 2026?
Four: the Mission for Cotton Productivity, ECLGS 5.0, the Surface Coal/Lignite Gasification Promotion Scheme and SARTHAK-PDS.
What does SARTHAK-PDS stand for?
Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS. It merges assistance for intra-State foodgrain movement and fair price shop dealer margins under the NFSA with SMART-PDS technology reforms, with a Central share of Rs 25,530 crore over five years.
What is the guarantee structure under ECLGS 5.0?
A 100% guarantee for eligible MSME credit and 90% for specified eligible non-MSMEs and airlines. The scheme targets Rs 2.55 lakh crore of additional credit flow, including Rs 5,000 crore for airlines.
Which ministry runs the Mission for Cotton Productivity?
The Ministry of Agriculture and Farmers Welfare, with textile-sector linkage. The outlay is Rs 5,659.22 crore covering 2026-27 to 2030-31, delivered through State Governments, Krishi Vigyan Kendras and State Agricultural Universities.
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