Raj Cabinet Accepts OBC Commission's recommendations, Panchayat Raj and urban body elections to be held under One State-One Election

Jaipur: The Rajasthan Cabinet, chaired by Chief Minister Bhajan Lal Sharma, on Friday approved a series of major policy decisions aimed at synchronising local body and Panchayati Raj elections under the "One State-One Election" concept, strengthening the rural economy through new agriculture and food processing policies, expanding green cover outside forests, promoting renewable energy, introducing labour reforms and enhancing rural livelihoods. The decisions were taken at a meeting of the Cabinet and the Council of Ministers held at the Chief Minister's Office.

Addressing a press conference after the meeting, Deputy Chief Minister Prem Chand Bairwa, Industries and Commerce Minister Rajyavardhan Rathore and Parliamentary Affairs Minister Jogaram Patel announced the Cabinet's decisions.

Jogaram Patel said the state government had decided to conduct the forthcoming Panchayati Raj and Urban Local Body elections under the "One State-One Election" concept. He said holding Panchayati Raj and Urban Local Body elections at different times adversely affects the pace of development works. The decision has been taken to ensure uninterrupted development while saving financial resources, labour and time.

Chief Minister Bhajan Lal Sharma had announced the proposal to synchronise Urban Local Body and Panchayati Raj Institution elections in the 2024-25 State Budget.

Patel said the recommendations of the Rajasthan State Other Backward Classes (Political Representation) Commission were received by the state government on August 5, 2026. With the Cabinet accepting these recommendations, the way has been cleared for incorporating provisions relating to OBC reservation, along with SC and ST reservation, in the Urban Local Bodies and Panchayati Raj Acts. Following the approval, the lottery process for reservation of seats for these categories will now commence.

Industries and Commerce Minister Rajyavardhan Rathore said the Cabinet had approved the Rajasthan Agriculture and Food Processing Policy, 2026, to encourage investment in agriculture and horticulture. The policy aims to promote agriculture and food processing industries, encourage entrepreneurship in rural areas, increase farmers' income through value addition to agricultural produce, strengthen supply chains and ensure effective marketing of processed agricultural products.

He said the policy covers agriculture processing industries dealing with fruits and vegetables, spices, grains, oilseeds, pulses, medicinal products, minor forest produce, honey, dairy and animal feed units, besides infrastructure projects such as silos and cold storage facilities.
Rathore said a Shri Anna (Millets) Promotion Agency would also be established. Under the policy, agriculture and food processing industries, millet units and primary processing units will be eligible for capital subsidy at the rate of 60 per cent on loans up to Rs 50 lakh, 50 per cent on loans between Rs 50 lakh and Rs 1 crore, and 40 per cent on loans exceeding Rs 1 crore, subject to a maximum subsidy of Rs 1.50 crore. An additional 5 per cent capital subsidy has been provided to encourage the participation of Farmer Producer Organisations (FPOs), enterprises in Tribal Sub-Plan (TSP) areas, Scheduled Castes, Scheduled Tribes and women entrepreneurs. Subsidies for cold storage, silos and exports will be available under the Rajasthan Investment Promotion Policy, 2024, while agriculture and food processing projects will also be eligible to apply for capital subsidy under the MSME Standard Package of RIPS-2024.

The minister said the Cabinet had also approved the Rajasthan Food Park Development Policy, 2026, to promote processing, trade and export of agricultural commodities. Land has already been allotted for developing food parks at several locations across the state. The new policy has been formulated to facilitate the establishment, operation and management of world-class food parks. Under the policy, food parks will be developed in every district in a phased manner on a cluster basis.

He said the policy would provide integrated facilities for preservation, storage, processing and transportation of food products while connecting producer groups and farmers with processing units and markets through a strengthened supply chain. The initiative is expected to generate employment opportunities in rural areas and strengthen the rural economy.

Rathore said food parks have been categorised into four categories based on land ownership and development criteria. Preference will be given to developers who have signed Memorandums of Understanding for food park development under the Rising Rajasthan Global Investment Summit-2024 or those willing to establish anchor food processing units with a minimum investment of Rs 10 crore in the proposed food parks.

Parliamentary Affairs Minister Jogaram Patel said the Cabinet had approved the issuance of the Code on Wages (Rajasthan) Rules, 2026, to safeguard workers' interests while ensuring orderly functioning of commercial and business establishments. The rules introduce a transparent framework for determining minimum wages and working hours. A scientific formula and skill-based classification will now be adopted for fixing minimum wages. Dearness allowance will be linked to the Consumer Price Index and revised twice every year on April 1 and October 1 to maintain parity with inflation.

The rules also prescribe fixed working hours for a normal working day, mandatory rest intervals and adequate provisions for the safety of employees working night shifts.

Patel said the rules fix the weekly working hours at 48. In a six-day working week, the maximum daily working period, including rest intervals, will be ten-and-a-half hours, while the seventh day will be a paid holiday. A mandatory half-hour break has been provided after five continuous hours of work. Employees working on weekly holidays will be entitled to overtime wages. Employers will also be required to issue salary slips, while the limits on statutory deductions from wages and rules relating to digital registers have been clearly defined.

Rajyavardhan Rathore said the Cabinet had approved the Rajasthan Industrial Relations Rules, 2026, to simplify and modernise the state's labour framework. Under the new rules, all labour compliance and industrial dispute complaints will be shifted completely to online portals. Time limits have been prescribed for speedy resolution of industrial disputes, while secret ballot voting has been made mandatory for the fair election of negotiating unions.

He said clear guidelines would also be issued regarding workplace grievance redressal mechanisms and the constitution and functioning of Works Committees. To facilitate ease of doing business, legal procedures and forms relating to retrenchment of employees and closure of factories have been simplified and made more transparent.

Rathore said that inspired by Prime Minister Narendra Modi's "Ek Ped Maa Ke Naam" campaign, Chief Minister Bhajan Lal Sharma had launched "Mission Hariyalo Rajasthan" in the state. Under the mission, a target has been set to plant 50 crore saplings over five years, of which nearly 20 crore saplings have already been planted in about two years. A target of planting another 10 crore saplings has been set during the current monsoon season. To further expand green cover outside forest areas, the Cabinet approved the implementation of the Tree Outside Forest Policy.

He said the policy would help increase tree cover on barren and fallow land, irrigated areas, and land along railways and roads. It would contribute to biodiversity conservation, water conservation and prevention of soil erosion while facilitating the achievement of targets under the Rajasthan Forest Policy, 2023. The policy is also expected to promote carbon sequestration, employment generation and entrepreneurship opportunities related to non-timber forest produce and agro-forestry products.

Patel said the Cabinet had approved two important amendments to the Rajasthan Land Revenue (Allotment of Land for Setting up Power Plants Based on Renewable Energy Sources) Rules, 2007, relating to land allotment for solar, wind, biomass and other non-conventional renewable energy projects. Developers will now be required to reserve 10 per cent of the allotted land for plantation activities.

He said land allotment norms have also been revised, permitting allotment of two hectares per megawatt for solar and wind power projects and 2.5 hectares per megawatt for hybrid projects. The amendments have been made in compliance with the State Budget announcement for 2026-27 to maintain a balance between development and environmental protection.

Rajyavardhan Rathore said the Cabinet had also approved amendments to the Rajasthan Integrated Clean Energy Policy, 2024, to further accelerate renewable energy generation in the state. The amendments propose capacity-based slab-wise registration fees for battery storage projects instead of a fixed registration fee. Projects incorporating battery storage of 50 per cent or more of their installed capacity will also be eligible for exemption from registration fees.

He said the maximum timeline for power evacuation through the transmission network has been reduced from three years to two years to ensure timely and optimum utilisation of transmission infrastructure. Rajasthan currently ranks first in the country in installed solar energy capacity, with renewable energy projects exceeding 49,000 MW already commissioned. Under the policy, the state has set a target of achieving 125 GW of clean energy generation by 2030.

Deputy Chief Minister Prem Chand Bairwa said the Cabinet had approved the launch of the Viksit Bharat – Guarantee for Employment and Livelihood Mission (Rural) Scheme to strengthen employment security, livelihoods and rural development. The scheme is aligned with the Vision 2047 objectives of Viksit Bharat and Viksit Rajasthan and seeks to make the rural economy self-reliant, inclusive and sustainable. Besides creating better employment opportunities, it will support water conservation, infrastructure development and disaster management works.

He said the scheme provides a statutory guarantee of 125 days of employment per financial year for rural families. Digital monitoring mechanisms have been incorporated to ensure transparency and accountability, while encouraging greater participation of women and weaker sections.

Bairwa said the Cabinet had also approved amendments to the Rajasthan Government Employees Insurance Rules, 1998, with effect from April 1, 2026. Under the existing system, the State Insurance Policy of an employee matures on April 1 of the financial year in which the employee retires, resulting in the employee losing insurance coverage before the actual date of retirement. The amendment removes this anomaly by ensuring continuous insurance coverage up to the employee's actual retirement date.

Rajyavardhan Rathore said the Cabinet had approved revision of disturbance charges for relocating 198 salt mines affected by the refinery project at Pachpadra in Balotra district to the remaining saline areas. Owing to increased excavation costs, the previously approved amount of Rs 7.85 crore has been enhanced by 25 per cent, and approval has been granted for payment of Rs 9.81 crore. The decision is expected to safeguard the livelihoods of salt mine holders while generating revenue for the state government.

He said the Cabinet had also approved allotment of industrial land for two cement plants to promote industrial development. M/s Star Cement North East Limited has been allotted approximately 254 hectares of industrial land in villages Joga and Sonu in Ramgarh tehsil of Jaisalmer district for a project involving an investment of about Rs 6,200 crore. Similarly, M/s UltraTech Cement Limited has been allotted approximately 107 hectares of industrial land in village Leela Parewar in Jaisalmer district.

Rathore said that after the Cabinet meeting, the Council of Ministers discussed in detail the implementation of the nationwide "Har Ghar Tiranga-2026" campaign in Rajasthan as a mass public movement. This year's campaign has been dedicated to commemorating 150 years of the national song "Vande Mataram." The campaign will be observed across the state from August 9 to August 17 with enthusiasm and public participation. The national flag will be hoisted at homes, schools, colleges and workplaces, while collective singing of "Vande Mataram" will also be organised during Har Ghar Tiranga events. Tiranga Yatras, rallies and other programmes will be organised from the block level to Gram Panchayats to celebrate the national spirit.

Patel said the Cabinet had also approved land allotment proposals for three solar power projects with a combined capacity of 922 MW to promote renewable energy generation. Under the proposals, conditional land allotment has been approved for approximately 44 hectares in village Bhanipura in Pugal tehsil of Bikaner district for a 22 MW project, 324 hectares in village Randha in Fatehgarh tehsil of Jaisalmer district for a 200 MW project, and 1,678 hectares in village Bodana in Nachna Colonisation Tehsil of Jaisalmer district for a 700 MW project. The projects are expected to strengthen Rajasthan's energy self-reliance while generating employment opportunities in these regions.

Deputy Chief Minister Prem Chand Bairwa said the Council of Ministers also reviewed the monsoon situation and the conditions arising from it. It was decided that all ministers would visit their respective assigned districts to review arrangements relating to electricity, drinking water, roads, healthcare and disaster management. They will also ensure that heavy rainfall does not cause inconvenience to the public and that essential public services continue uninterrupted.

He further said the Council of Ministers discussed measures to ensure uninterrupted, timely and adequate availability of fertilisers, certified seeds and all other essential agricultural inputs for farmers. During their district visits, ministers in charge will also review these arrangements to ensure that farmers receive all required resources at every stage of crop production without disruption.