Briefing reporters on Cabinet meeting here, he said about 80,000 Adivasi families would benefit.
Mr Achuthanandan said the government would organise agitation against auctioning rice stored in FCI godown, instead of releasing it to the States.
Though the Centre said agricultural loans would be waived, not even a single rupee was released on the account to the State so far, he alleged and said more than 500 co-operative banks in the State were facing closure.
The Cabinet also decided to reserve 20 per cent seats to Backward Class students in government colleges and University Departments, he said.
Besides, three per cent of the total seats would be reserved for physically handicapped students.
UNI CGV SY AS1745