The Union Cabinet, at a meeting chaired by Singh, decided that Rs. 710 crores -- at 2013-14 prices -- would be released in two tranches to the state government under the PMGSY.
The Cabinet also approved the change in the nomenclature 'Hill States' under the PMGSY to 'Special Category states'.
This would include Assam on par with other north eastern states and would increase the central share from 75% to 90% for the state, an official release said.
The Cabinet also approved an expenditure of Rs. 2,866 crore for implementation of these proposals, it added.
Singh had announced Rs. 710 crore grant to Jammu and Kashmir at a meeting with the Council of Ministers of the state during his visit to Srinagar last week.