Intelligence Bureau has got a boost in its anti-terror capabilities. In order to optimize intelligence flow and co-ordination between multifarious agencies at the Centre and in the States in the field of counter-terrorism and counter-intelligence, a Multi-Agency Centre and Joint Task Force on Intelligence have been created in the Intelligence Bureau at Delhi, supported by Subsidiary Multi-Agency Centres at almost all State capitals. For strengthening counter intelligence apparatus in the Intelligence Bureau, additional manpower has been given. The states have been advised to earmark up to 5% of the annual total allocations under the Modernization of State Police Forces Scheme towards strengthening training and technical capabilities of Special Branches.

During 2006-07, a total amount of Rs.1065.25 crore was released to various State Governments under the Modernization of State Police Forces (MPF) Scheme. This includes release of an additional amount of Rs.100 crore for purchase of equipment for fighting naxalism against the proposals received from the State Governments of Andhra Pradesh (Rs.15 crore), Bihar (Rs.15 crore), Chhatisgarh (Rs.24.75 crore), Jharkhand (Rs.15 crore), Maharashtra (Rs.6.75 crore), Orissa (Rs.15 crore) and West Bengal (Rs.8.50 crore).

Under the MPF Scheme, the States have been categorized into “A” and “B” Categories with 100% and 75% Central funding respectively. J&K and seven North Eastern States viz., Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura have been classified as “A” category States in view of problems of insurgency, militancy and terrorism faced by these states.