The proposal will be taken up for discussion at tomorrow's Cabinet meeting, official sources said tonight.
The Cabinet will be meeting for the first time after the conclusion of three-phase Lok Sabha elections in the state.
In December 2012, the limit of contingency fund was extended from Rs 150 crore to Rs 550 crore. However, it was a temporary arrangement for drought relief.
A few months ago, a majority of districts in the state were hit by unseasonal rains and hailstorm.
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