New Delhi, Aug 4 (IANS): Denying reports of Maoists getting foreign funds, Home Minister P. Chidambaram Wednesday said an integrated development plan is being made by the Planning Commission for the left-wing insurgency-affected areas.

"The Naxals get bulk of their money from extortion, but no foreign funds are coming," Chidambaram said during Question Hour in the Rajya Sabha.

He, however, said arms were being smuggled cross-border from Myanmar and Bangladesh.

Giving the details of the strategy being adopted by the government to deal with the Maoist menace, the home minister said development was the first concern of the two-pronged strategy being adopted.

"The planning commission is working on an integrated development plan for the affected districts. It will be final in a few more days. Once it is approved we will have more funds for the Naxal-affected areas," he said.

Chidambaram added that so far nearly 66 percent of the funds allotted to the states for affected districts has been spent.

A two-pronged strategy of accelerated development and calibrated police action has been prepared to curb Maoist insurgency.