Maharashtra to hike contingency fund limit to Rs 1,000 cr

Maharashtra Government proposes to increase the limit of contingency fund to Rs 1,000 crore from current from Rs 150 crore to enable it to extend adequate financial relief at the time of natural disasters.

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.