Bhubnaneswar, Dec. 17: The state government today sanctioned Rs 1,000 crore to develop rural infrastructure with an eye on the upcoming panchayat elections scheduled for March 2017.

The funds will be spent under the Gopabandhu Gramin Yojana.

Chief minister Naveen Patanaik today reviewed rural infrastructure at the secretariat. Following the meeting, he said that since the Centre had stopped payment of the Backward Regions Grant Fund for development programmes in the past financial year, the state government expanded the Gopabandhu Gramin Yojana to all the 30 districts.

"Under the scheme, the state government will spend around Rs 1,000 crore during the financial year," Naveen said.

The state had introduced the programme in 2006-07 to provide additional development assistance to Odisha's 11 targeted districts not covered under the Backward Regions Grant Fund. The scheme lays stress on rural connectivity with improved road infrastructure and enhancing the quality of life by providing steady supply of drinking water and electricity.

Naveen also asked officials to ensure that a 2,000km road network was built by March, 2017 under the rural connectivity scheme. Directing officials to chalk out a plan accordingly, Naveen asked the officials to emphasise on the construction of roads to the Particularly Vulnerable Tribal Group hamlets and the scheduled tribe areas. They have been directed to chalk out proposals and ensure that the work was done on time.

Last night, chief minister held a review meeting of the state's government efforts to provide power connection to villages. After the meeting, he asked the energy department to ensure that all villages got electricity by the end of this financial year. The state government has set a deadline of 2019 to provide power connection to every household in the state.

Energy minister Pranab Prakash Das said: "Our department has, so far, powered more than 2,000 villages. We hope to provide power connections to the remaining villages, which are yet to be electrified."

The state government today also announced a 7 per cent hike in dearness allowance for 3.5 lakh government employees.

Employees of the state government employees would get the money with retrospective effective from last July. Pension holders will also benefit from the allowance.

Chilika boat tragedy

The state's commerce and transport department has amended the Odisha Boat Rules after chief minister Naveen Patnaik had expressed his anguish over the tragedy in the Chilika lake, in which four people died earlier this month.

The Ganjam district administration today sprang to action and directed all passenger boats to register with the state government. All passengers will be insured for Rs 1 lakh. Taking the safety aspect into consideration, the base of all boats will be covered by aluminium sheets.