The high-powered Cabinet Committee on Security (CCS), headed by Prime Minister Manmohan Singh, cleared the much awaited projected which will be implemented in five years beginning this fiscal.
CRPF, BSF, ITBP, CISF, SSB, NSG and Assam Rifles will benefit under the plan which was awaiting approval from CCS.
Sources said the standoff along the Sino-Indian border in Ladakh, which is being guarded by the Indo-Tibetan Border Police, is believed to have prompted the CCS to clear the project which is already delayed by a year.
The modernisation will ensure that the forces have better arms, ammunition, night vision devices, patrolling equipment, vehicles and other infrastructural upgradation.
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The CRPF is primarily deployed for internal security, law and order maintenance and anti-Naxal operations. The BSF guards the Indo-Pakistan and Indo-Bangladesh borders besides helping in internal security duties.
The ITBP guards the Sino-Indian border while SSB protects the Indo-Nepal and Indo-Bhutan frontiers. The CISF primarily guards country's civil airports and major installations, including in nuclear and aero space domain.
The combined strengthen of all central paramilitary forces is around eight lakh personnel.