Is the NSE planning to launch futures and options on the Mid-Cap index?

That is absolutely correct. SEBI has approved the launch of futures and options on the Nifty Mid-Cap Select Index. These contracts will go live on 24th of January. Nifty Mid-Cap Select index is a focused portfolio of 25 stocks within the Nifty Midcap 150 index, with all of them present in F&O. NSE will offer F&O with a trading cycle of 7 weekly expiration contracts excluding the monthly expiration contract.