(1) Monies from the fund may be advanced by the Government as grants, on such terms and conditions as the Government may determine, to the planning authorities or the local authorities or the Government agencies or the parastatal organizations or such other organizations, as the case may be, for implanting the infrastructure and amenities projects;, which may include-
(a) preparation of infrastructure investment plans;
(b) execution of the infrastructure investment plans in full or part;
(c) any purpose incidental to the preparation or execution of infrastructure investment plans.
2. The fund shall be utilised for translating the proposals of the respective development plans prepared in accordance with the provisions of the Act, into specific action programmes.
3. Projects to be funded from the fund shall comprise essential infrastructure schemes. The committee shall decide the scheme to be implemented.
4. The Committee may sanction funds to the implementing agencies or planning authorities or the local authorities or the Government agencies through the planning authorities or the local authorities, as the case may be, up to five crore Rupees per scheme on capital expenditure and up to twenty lakh rupees on other items. The committee shall approach the Government for sanction of proposals beyond this limit. For sanction of funds exceeding the said limits, the committee shall obtain the precious approval of the Government.
5. Expenditure for administration, establishment or contingency all put together shall not exceed 5% of the total corpus of the fund available at any given time.