New Delhi, Nov 19 (IANS) The union cabinet Thursday approved a Rs.7,266 crore package for drought relief and agricultural development of the Bundelkhand region, that spans Uttar Pradesh and Madhya Pradesh, and has suffered a sustained drought for the past four years.

'The scheme will be implemented over three years in seven districts of Uttar Pradesh and six districts of Madhya Pradesh,' Information and Broadcasting Minister Ambika Soni told reporters after a cabinet meeting presided over by Prime Minister Manmohan Singh.

'A central team had submitted its report, recommending a Rs.8,316 crore package. The cabinet has approved a Rs.7,266 crore package,' she added.

According to Soni, 'the prime mover of the package is optimization of water resources through rainwater harvesting and through proper utilization of the river systems'.

Under the package, intensive and diversified agriculture will be promoted to improve productivity of crops and encourage a higher sowing area in the Kharif (summer crop) season.

'Animal husbandry and dairy activities will be expanded as an ancillary activity to enhance farmers' incomes to cope with the drought conditions,' Soni pointed out.

Soni said the emphasis on watershed development and irrigation facilities 'will equip the region in coping with drought with resilience'. This apart, the promotion of drought resistant arid-horticulture as well as animal husbandry activities will diversify the farmers' incomes to more assured sources.

Congress MP Rahul Gandhi had met Prime Minister Manmohan Singh in July to press for the implementation of the central government report on Bundelkhand. He had also demanded the setting up of a separate Bundelkhand Development Authority under the central government to route all funds for the region's speedy development, a proposal Uttar Pradesh Chief Minister Mayawati opposed.

The Congress-led United Progressive Alliance government and the Mayawati government have been at loggerheads over Bundelkhand, each blaming the other for the region's backwardness.