The Committee of Secretaries, which include Union Home Secretary R K Singh and Planning Commission Secretary Sindhushree Khullar, will also see whether the IAP, currently being implemented in 82 worst Maoist-affected districts should continue in the present form.
It will submit its report within a month, official sources said.
The Rs 5,350 crore special grant programme for development of backward regions was started from 2010-11. The funds are to be placed at the disposal of a Committee headed by the District Collector and consisting of the Superintendent of Police of the district and the District Forest Officer.
The district level committee have the flexibility to spend the amount for development schemes according to need, as assessed by it.
The Committee draws up plans consisting of concrete proposals for public infrastructure and services such as school buildings, aanganwadi centres, primary health centres, drinking water supply, village roads, electric lights in public places.
Though the IAP has been highly successful, Rural Development Minister Jairam Ramesh had said the development works under the plan should have more political involvement with active participation of elected representatives of local bodies.
"This 'Trimurti' (District Collector, Superintendent of Police and District Forest Officer) set up is not enough. There has been no active involvement of local elected representatives. Therefore, the money does not get spend where it should be spent," Ramesh had said.