Shimla, June 4 (IANS): The Himachal Pradesh Cabinet at a meeting held here on Thursday gave its consent to constitute sixth state Finance Commission.

The commission will review the financial position of panchayats and urban local bodies and make recommendations to the Governor on measures needed to improve their financial position with determination of taxes, duties, tolls and fees and grants in aid.

The Cabinet, presided over by Chief Minister Jai Ram Thakur, also decided to increase the honorarium of Jal Rakshaks, Para Fitters and Para Pump Operators in Jal Shakti Vibhag by Rs 300 per month.

With this increase, now Jal Rakshaks would get Rs 3,300 per month, while Para Fitters and Para Pump Operators would get an honorarium of Rs 4,300 per month.

It accorded approval for procurement, supply and distribution of school bags under Atal School Vardi Yojna to school students of Class I, III, VI and IX on e-tender basis through Himachal Pradesh State Civil Supplies Corporation Ltd for the year 2020-21.

This would benefit 256,514 students.

It also decided to create a state disaster mitigation fund and approved the guidelines for the administration of the fund under Disaster Management Act, 2005, and Rules 2011 to meet the expenses on mitigation.

Under this fund, 20 per cent of the state disaster risk management fund would be used for mitigation, which comes to Rs 90.80 crore for the current financial year.

Besides, funds worth Rs 50 crore have also been recommended for managing seismic and landslide risks from the National Disaster Mitigation Fund to the state.

It gave its consent to establish a Silkworm Seed Production Centre at Thunag in Mandi district along with creation and filling of four posts of different categories to man this Centre.