The decision was taken at the cabinet meeting chaired by Chief Minister Arjun Munda, Cabinet Secretary N N Pandey told reporters here.
This allowance would be given up to 10 years from the date of surrender in the event of a Maoist not getting plot immediately on surrender, he said.
The allowance would be stopped if a plot was provided within that period, he added.
Besides several incentives to bring extremists back into the mainstream, the surrender policy also underlined provision for allotment of land by the government.
