Govt to finalise Rs 2,500cr fund for state reforms

NEW DELHI: The government is expected to finalise the modalities of utilising the proposed Rs 2,500 crore fund for state reforms next week as part of centre''s efforts to boost economic reforms in the country.
Finance Minister Yashwant Sinha, who met Planning Commission Deputy Chairman K C Pant on Monday, also discussed in detail ways of utilising the Rs 500 crore Urban Reform Incentive Fund announced in the budget.
"We discussed the funds intended for state reforms. We will meet again next week to finalise the details," Sinha said after the meeting.
Pant said there was a broad agreement between the Commission and the Finance Ministry on the modalities for the fund which would go towards the development of backward states like Bihar and Orissa.
He pointed out that the Rs 2,500 crore fund would also cover existing schemes being implemented by various agencies like Nabard in states like Bihar and backward districts of Orissa.
In addition to the existing schemes, today''s meeting also discussed new ideas which would be discussed next week, he said while declining to divulge any details.
Pant said some agencies had been asked to identify specific projects which could be taken up under the scheme. The report of these agencies would be considered next week, he added.
Asked about the Rs 500 crore Urban Infrastructure Development Fund, Pant said details of the fund was discussed. "The discussions are in advanced stages and will be finalised shortly."