The sanction was accorded by the state Cabinet at its meeting chaired by Chief Minister Shivraj Singh Chouhan, official sources said.
The Cabinet also decided to constitute Bamboo Art Development Board for the welfare of a large number of people engaged in bamboo trade.
With an aim to help wards of those employees who died in service, the Cabinet decided to relax rules of appointment to be made on compassionate grounds and also decided to provide last pay drawn minus pension contribution to the dependents of such employees till they attain the age of 21.