J&K to seek Rs 44,000-cr assistance from Centre | india | Hindustan Times
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J&K to seek Rs 44,000-cr assistance from Centre

The Jammu and Kashmir government is to seek Rs 44,000 crore assistance from the Centre for restoration of damaged infrastructure and rehabilitation of people affected by the September floods. The cabinet which met in Srinagar on Friday approved the financial package which will be sent to the Centre.

india Updated: Oct 13, 2014 16:00 IST
Toufiq Rashid

The Jammu and Kashmir government is to seek Rs 44,000 crore assistance from the Centre for restoration of damaged infrastructure and rehabilitation of people affected by the September floods. The cabinet which met in Srinagar on Friday approved the financial package which will be sent to the Centre.

The Jammu and Kashmir government also decided to approach the union home ministry for releasing funds of Rs 1947.20 crore under the NDRF besides requesting the Centre to declare tax holiday for the state for a period of 10 years to help in the revival of the state's economy.

The state government was to submit a report about the devastation caused by the September floods to the Centre for release of funds for rehabilitation and relief in the state.

The delay in submitting the report was being questioned as the rehabilitation work was being delayed in the process.
Speaking to Hindustan Times, chief minister Omar Abdullah, however, said that the state government was not to submit any report but a memorandum outlining the losses and the proposed package for relief and rehabilitation.

"The cabinet has approved the package to be submitted to the Centre,'' Abdullah said.

Regarding the delay in submission, Abdullah said correct assessment took time. "We were consulting various stakeholders and also waiting for the waters to recede to make assessments. Now we are sending the memorandum to the Centre for consideration,'' Abdullah said.

Besides the financial package, the state government has also recommended that the Centre should issue directions to all banks and financial institutions for re-scheduling of loans. The state also wants that moratorium and remission of interest during the moratorium period and providing of fresh loans in favour of flood-affected people.

The state government has also pleaded that banks and financial institutions should waive loans upto Rs 3 lakh to those affected by the floods.

The state government also proposes to increase the ex-gratia to those who have lost their property in the floods --Rs 9 lakh for fully damaged pucca house, Rs 6 lakh for fully damaged kuccha house, Rs 4 lakh for partially damaged kuccha/pucca house, including boundary walls and Rs 1 lakh for other structures.

The state also wants that the people who have lost houses in the floods should be given housing loan upto Rs 20 lakh at 4% interest only, the balance interest to be charged by the banks shall be borne by the government. The re-payment shall be worked out upto 10 years with a moratorium of two years initially. Moreover, those people whose houses are fully damaged can shift to a hired accommodation nearly for one year till they rebuild their houses. The rent of this one year shall be reimbursed to them by the government.

The state has also proposed that for small shopkeepers not registered under VAT, loan facility upto Rs 5 lakh to be provided at 2% interest per annum only. For the registered dealers with the sales tax authority, loan upto Rs 20 lakh at 4% and loan upto Rs 50 lakh at 6% per annum interest has been proposed.

The proposal includes financial support and concessions for business community, agriculture and horticulture sector, transport sector, tourism sector, industrial sector, artisans, and other sectors. The proposal also includes compensating the affected people for the loss of land due to flash floods and landslides.