New Delhi: Taking a dig at the state governments over their demands of hiking the fund allocation for internal security, Union Home Minister P Chidambaram said that how can the states demand increase at a time when they are unable to utilize the funds properly and have to return the unused money back to the Centre.

“Chief Ministers of all the states stood together in demand for more Central funds, but most of the states have failed to utilize the allocated money for the purpose properly and have returned the unused money to the Centre,” said Chidambaram.

Underlining the funds granted to the states for modernizing the police, he said, “Several states had to return Rs 311 crore allocated to them to the Central government after they failed to utilize the amount”.

After facing flak from the state governments over the National Counter Terrorism Centre (NCTC) during the Chief Ministers’ meet on internal security, the Central government is trying hard to build trust by expressing confidence in resolving the matter between both the parties.

Talking over the much-hyped NCTC row, Chidambaram said that almost every state present during the crucial meet on internal security on Monday have agreed that terrorism and naxalism are the major challenges for the nation’s security and joint efforts by Centre-states can only check the issue.

“I have full confidence that both the parties will come to a consensus over NCTC issue and key controversial points will be resolved on the scheduled meet on May 5,” he asserted.

With the aim of resolving differences with the Chief Ministers especially from the non-Congress ruled states, the Centre is banking upon the proposal of standard operating procedures (SOP) in the agency.

“We are circulating the SOP drafts to the Chief Ministers before the May 5 meeting (on NCTC) and we are hopeful of resolving the matter with some states,” said Chidambaram.

Meanwhile, Prime Minister Manmohan Singh batted for strong Centre-state relations and said that combined effort of both the parties will help improve internal security. In a diversified country like India, it is really important that the interest of both the Centre and the states are looked after, PM said.