Karnataka was planning to mop up Rs. 2000 crore through imposition of a new tax in the next six months for relief and rehabilitation work in flood-ravaged areas, Chief Minister B. S. Yeddyurappa said here on Monday.

The modalities for the fresh tax is still being worked out with a decision expected in three to four days, he said at a meeting of ministers, principal secretaries and secretaries of various departments.

Mr. Yeddyurappa said the state government had to ensure that the Rs. 1000 crore central aid was utilised in 100 days in order to seek any additional aid.

He said directions had been given to begin issuing cheques for compensation for damaged houses. The government had decided to award compensation of Rs. 35,000 each for ‘pucca’ houses and Rs. 10,000 for ‘kaccha’ ones.

He said the government has begun releasing Rs. two crore to each district for land acquisition for constructing houses for flood victims.

Around 22 lakh hectares of agricultural crop had been damaged by rains, he said adding compensation to the affected farmers would be distributed immediately.

A nodal officer would be appointed to monitor whether relief and rehabilitation work was being expedited at taluk level.

Development area funds could be diverted for flood relief, he said.

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