Kerala has sought a special assistance of ₹5,000 crore as grant from the Centre, apart from a 10% hike in the allocation under various Centrally-sponsored schemes and an additional assistance of ₹4,796 crore from the National Disaster Response Fund (NDRF) to help the State tide over the devastation caused by the floods last month.
Chief Minister Pinarayi Vijayan raised the demand during a meeting with Prime Minister Narendra Modi in New Delhi on Tuesday. Briefing the media after the meeting, he said the special assistance of ₹5,000 crore was aimed at reviving the flood-battered economy and rebuilding damaged assets.
Mr. Vijayan highlighted the demand to raise the State’s market borrowing limit from 3% of the gross state domestic product (GSDP) to 4.5% this financial year and fix it at 3.5% next year as part of the resource mobilisation for post-flood reconstruction.
Pointing out that the World Bank-ADB team had assessed the flood damages at ₹25,000 crore, he said Kerala needed a generous dose of Central aid for rehabilitation and reconstruction. Mr. Vijayan sought the Prime Minister’s intervention for an additional loan of ₹16,000 crore over the next two years and ₹2,500 crore as assistance to take up housing projects for families displaced by the floods. He also flagged the need to raise another ₹3,000 crore from the Central road fund to repair flood-damaged roads.
Revised memorandum
“While the short-term projects include the repair of damaged roads and other infrastructure, housing and restoration of livelihood, the long-term projects will focus on the reconstruction of the worst-affected areas in Kuttanad, Idukki and Wayanad,” he said. The State would submit a revised memorandum to the Ministry of Finance by October seeking funds for post-flood reconstruction.
Terming his meeting with Mr. Modi as a good interaction, Mr. Vijayan said the Prime Minister had promised all help for the State. He urged Mr. Modi to re-examine the policy on accepting flood relief assistance from other countries. However, there was no problem in accepting funds from the Indian diaspora, he added.
During the meeting, he sought Mr. Modi’s help to operate international flights from the new airport in Kannur. “The Prime Minister directed his secretary to look into the matter and keep in touch with the Chief Secretary,” he said.
