New Delhi : Beginning next financial year, the Planning Commission will include performance on environmental concerns as one of the criteria for determining Central assistance to states.

In what takes green concerns several rungs higher in the ladder of governance priorities, around Rs 1,900 crore will be disbursed to states in 2010-11 based on environmental performance.

Environmental measures have now been accepted as one of the 'nationally important targets' apart from population control, elimination of illiteracy, land reforms and timely completion of externally-aided projects.

The Plan panel, in consultation with the Union environment and forests ministry, has prepared the blueprint for the disbursal of funds. The panel is also ready with an index for measuring the "green" performance of each state and ranking them.

As per this index, the hill states of Sikkim, Uttarakhand, Arunachal and Himachal along with UT Chandigarh fare the best. The index is based on review of the air and water quality in these states. Forest cover, size of national parks, along with changes in greenery pattern; have all been factored in.

Climate change concerns are also being integrated, and states will be assessed on the basis of their use of non-conventional energy and volume of methane emissions.

At present, the Planning Commission ranks states according to fiscal performance, income levels, tax collection and certain nationally important targets besides special considerations while deciding on the allocation of Central plan funds.

The index automatically pitches for those states that have seen little economic and industrial development but maintain a high green cover.