The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal for establishment of medical colleges and implementation of the rural water supply and sanitation project.

The proposal for setting up 58 new medical colleges was put forward by the Ministry of Health & Family Welfare. This will lead to the establishment of medical colleges by upgradation of existing district hospitals in deficient states with a capacity of 100 MBBS seats in each medical college.

The Central assistance share for the project will be Rs 8,457.40 crore, the while state share will be Rs 2,513.70 crore.

Meanwhile, CCEA has also approved the proposal for implementation of the rural water supply and sanitation project for low income states of Assam, Bihar, Jharkhand and Uttar Pradesh, with World Bank assistance over a period of six years, till 2019-20.

The project will entail an investment of Rs 6,000 crore. Of the total, 33 per cent of the project cost will be borne by the government of India from the National Rural Drinking Water Programme (NRDWP) allocation - 33 per cent; 16 per cent will be shared by the state government; one per cent will be funded through beneficiary contribution, and 50 per cent will be borne through World Bank-IDA funds.

In addition, CCEA has approved the Central Sector Scheme Indian Leather Development Programme (ILDP) for implementation during the 12th Plan period, with a total outlay of Rs 990.36 crore.