Kerala seeks Rs 4,700 Cr compensation from Centre for flood damage

New Delhi: The Kerala government on Thursday sought Rs 4,700 crore as compensation from the central government for the damage caused by the recent floods, termed as the worst in a century, officials said.

At least 488 people have died in Kerala due to the rains and flood this monsoon, which hit 14 districts of the state.

The Kerala government has sent a memorandum to the Home Ministry giving details about the loss of human life, properties, infrastructure and crops and sought about Rs 4,700 crore as compensation, a senior government official said.

In case of any natural calamity beyond the coping capacity of a state, the state government submits a detailed memorandum indicating sector-wise details of damage and requirement of funds for relief operations of immediate nature. Accordingly, the Kerala government sent the memorandum, the official said.

As per the existing guidelines, the central government will soon send an Inter-Ministerial Central Team (IMCT) for on-the-spot assessment of damage and additional requirement of funds.

The IMCT report will be considered by the Sub-Committee of National Executive Committee (SC-NEC) headed by the Union home secretary in conformity with the norms and then by a high-level committee, chaired by the home minister for approving the quantum of additional assistance from the NDRF.

The financial mechanism to meet the rescue and relief expenditure during any notified disaster event is governed by guidelines on State Disaster Response Fund (SDRF) and National Disaster Response Fund (NDRF), another official said.

State Disaster Response Fund has been constituted in each state in which the Centre contributes 75 per cent for general category states and 90 per cent for special category states of hilly regions every year according to the award of the successive Finance Commissions.

According to the guidelines, the Centre provides its allocation to SDRF of each state in advance in two instalments. In case of any natural calamity, the state meets the expenditure of relief and rescue from the State Disaster Response Fund already available at its disposal.

On August 21, the central government had released Rs 600 crore to flood-hit Kerala as promised by Prime Minister Narendra Modi (Rs 500 crore) and Home Minister Rajnath Singh (Rs 100 crore) during their visits to the state.

This was in addition to Rs 562.45 crore already made available in State Disaster Relief Fund of the state.