The Cabinet today approved a proposal to condense 170 centrally sponsored schemes into 66 to improve their monitoring and provide greater flexibility to states. Briefing reporters after the Cabinet meeting in New Delhi, Deputy Chairman of Planning Commission Montek Singh Ahluwalia said now District Collectors would have to deal with fewer schemes.

He said the government has addressed the issue of flexibility which was demanded by the States. Mr Ahluwalia said that States may be allowed to have state specific guidelines recommended by an Inter-Ministerial Committee constituted to suit their requirements.

He said in addition to flexibility in guidelines, States will be allowed to spend up to 10 per cent of the allocated funds to promote innovation at the district level as long as project is within broad guidelines of a scheme.

On applicability of the decision, Mr Ahluwalia said that the decision will be implemented from now onwards but full restructuring of the schemes will be possible from the next financial year.

The Cabinet also approved a list 17 flagship schemes with significant outlays for major interventions required in key sectors including health, education, irrigation, urban development and infrastructure.

The schemes include Rashtriya Krishi Vikas Yojana, Nirmal Bharat Abhiyan, National Rural Drinking Water Programme, National Health Mission, Rajiv Gandhi Panchayat Sashaktikaran Yojana and Mahatma Gandhi National Rural Employment Guarantee Act.