In an effort to tackle the threat of Naxalism the government is working on a new policy which offers financial assistance to those who surrender.

According to NDTV sources the Union Home Ministry is finalising a financial package for Naxalites who may want to come overground and talk to the government.

The Home Ministry is likely to offer rupees 2,500 per month as a stipend and put in rupees three lakh as a fixed deposit for three years for those who give up arms.

The financial package may cost over rupees 400 crore if 10,000 Maoists and Naxalites take the Centre's bait.

The new scheme is being drawn up after Prime Minister Manmohan Singh suggested that a national policy for rehabilitation of Naxalites was necessary since individual surrender plans by states like Andhra Pradesh, Chhattisgarh, Jharkhand and even Maharashtra have not met with much success in the past.

Sources say, the Prime Minister may unveil the policy on August 17 when he meets all the chief ministers here in Delhi.