The Planning Commission seems to be divided over the issue of raising the number of Naxal- infested districts from 35 to 60, which will be covered under the integrated action plan (IAP) being formulated by the panel.

One school of thought in the Commission is of the view that such a move will result in reduced funds for each of these districts, while the other thinks that improvement in governance is the first requirement for capacity-buidling so that the allocated money can be absorbed properly.

In an internal meeting yesterday, the panel discussed the proposal of increasing the number of Naxal-hit districts from the original 35 to 60 under the IAP being formulated for these Naxal-affected districts spread across nine states.

"The improved governance and capacity to absorb funds for development hold the key. Money will be provided on the basis of performance," panel member Mihir Shah pointed out.

"The already-allocated fund is not being used properly as there is no capacity to absorb it. First we need to develop the capacity for fund absorption through improved governance," Shah argued.

He further said fund allocation will be at the back-end.

First we have to ensure implementation of the Panchayats Extension (to Schedule Areas) Act of 1996 so as to give the tribals the right to use minor forest produce.

Under the IAP, fund allocation comes at the later stage which will be given on the basis of improved performance in the select districts covered under the programme, he said.

However, member secretary Sudha Pillai argues that such a move will not be of any particular help."There is a proposal from some members that the number of Naxal-hit districts under the IAP be increased from 35 to 60. But in that case, each district would get less money. Also, the Commission is yet to finalise the proposal. Once it is done, only after that the IAP will be sent to the Cabinet."

The Commission is working on the IAP that will include a financial package of Rs 13,742 crore for the 35 Naxal-affected districts. This special package came to the Commission from the Cabinet Committee on Security. The three-year package aims at infrastructure development in these districts like roads, drinking water and electrification.

The package assumes special significance in the backdrop of the government's flagship programmes such as the Bharat Nirman and Mahatma Gandhi National Rural Employment Scheme not achieving much success in these areas.

Many parts of as many as nine states -- Andhra Pradesh, Chhattisgarh, Bihar, Jharkhand, Madhya Pradesh, Maharashtra, Orissa, Uttar Pradesh and West Bengal -- are in the grip of Naxalism.