New Delhi: To counter the allegations of Bihar Chief Minister Nitish Kumar against the UPA government of having a biased approach towards the state while allocating development funds, the Centre has decided to target him through the Member of Parliament Local Area Development (MPLAD) fund issue.

The Centre has not only ignored the terms and conditions raised by Kumar over the implementation of MPLAD fund, but has also reminded the Bihar  government that ignorance of allotted fund of Rs 1,400 crore for five years would adversely affect the state government.

Kumar had written a letter to Union Statistics and Programme Implementation Minister MS Gill in April mentioning that the state government will not be able to implement the MPLAD schemes unless the Union Government forms dedicated implementation machinery or give five percent of the fund to the state for implementing the schemes.

However, both the demands had left the Centre in a piquant situation as it was neither in a position to appoint separate machinery for the process nor pay the state government for schemes.

According to the sources, Gill in his letter reminded the CM about the hike in MPLAD fund from Rs 2 crore to Rs 5 crore.

He pointed out that under MPLAD fund Bihar will get Rs 280 crore per annum which amounts to  Rs 1400 crores in five years. In a strong response, Gill maintained that the whopping amount would prove beneficial in the state’s development and progress.

Taking Kumar’s demand into consideration, the Centre has given 0.5 per cent increment in the administrative expenses. Singh has categorically mentioned in his letter that it was impossible to further extend the limit of expenditure.