Government today decided to increase the development funds allocated to Members of Parliament under Local Area Development Scheme from the existing two crore to five crore rupees from the current financial year. The decision was taken by the Cabinet which met under the chairmanship of Prime Minister, Dr. Manmohan Singh in New Delhi this morning. Briefing newsmen after the meeting, the Information and Broadcasting Minister, Mrs. Ambika Soni said, this will entail an increase of 2370 crore rupees from the previous 1580 crore rupees. The enhanced total expenditure will amount to 3950 crore rupees. The government also decided to go ahead with the expansion of private FM networks in the country. The third phase of expansion policy extends FM radio services to about 227 newcities, in addition to the present 86 cities, with a total of 839 new FM radio channels in 294 cities.It will result in coverage of all cities with a population of one lakh and above with private FM radio channels. Broadcast in certain categories like information pertaining to sporting events, traffic and weather, coverage of cultural events,festivals, coverage of topics pertaining to examinations, results,admissions, career counselling and availability of employment opportunities will be treated as non-news and current affairsbroadcast and will be permissible.Public announcements pertaining to civic amenities like electricity, water supply, natural calamities and health alerts as nprovided by the local administration can also be carried by private FM radio.It has also been decided to allow the private FM channels to carry All India Radio news bulletins. Talking to All India Radio, Mrs. Ambika Soni said that it is upto All India Radio to decide whether any fee will be charged for this service. The Minister said, there are special incentives for the north-east region and Jammu and Kashmir and island territories. Private FM radio broadcasters in these regions will be required to pay half the rate of annual licence fee for an initial period of three years from the date from which the annual licence fee becomes payable and the permission period of 15 years begins. The Cabinet today approved the proposal to renew the long-term agreements and has authorised Minerals andMines Trade Corporation (MMTC) to supply iron ore to Japanese Steel Mills and POSCO of South Korea for another three years. The Cabinet also approved amending the title of the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 to Inter State Migrant Workers (Regulation of Employment and Conditions of Service) Act, 1979. The Act provides for regulating the employment of inter-state migrant workmen and their conditions of service.