From correspondents in Delhi, India, 04:30 PM IST

In order to arrest the increasing dropout rate from schools after class 8, the government Friday decided to allocate Rs.30.04 billion as scholarship to poor students.

Finance Minister P. Chidambaram said here that the Cabinet Committee on Economic Affairs (CCEA) in its meeting Friday morning had sanctioned the amount and had decided that the money would be spent during the Eleventh Five Year Plan (2007-2012).

Chidambaram expected the scholarships would encourage students to complete school.

According to the scheme, the government will provide at least 100,000 scholarships of Rs.6,000 each for students from class 9 to class 12.

The scholarships are meant for students in government schools, whose parents' income is not more than Rs.150,000 per year.

To win the scholarship, class 8 candidates will have to appear in an examination, to be conducted by the state governments under the guidance of the National Council for Educational Research and Training.

(Staff Writer, © IANS)