Sanjeev Pargal
JAMMU, Jan 30: Union Home Minister Rajnath Singh today approved fresh assistance of Rs 1122.56 crores for Jammu and Kashmir Government for immediate restoration of public infrastructure damaged by September 2014 floods and said that the Union Ministry of Home Affairs (MHA) will be Nodal Authority for all further decisions in regard to schemes proposed by the State for taking final decisions on Rs 41,000 crores worth Special Package for flood victims, which has been submitted by the State Government.
Rajnath assured Governor NN Vohra after an hour long meeting in New Delhi this afternoon that he would take up with Prime Minister Narendra Modi the issue of early concurrence for entire available funds being utilized to suitably compensate owners of several and partially damaged pucca and kucha houses in the floods, official sources told the Excelsior.
Vohra also met Union Finance Minister Arun Jaitley and apprised him of grave financial crisis in Jammu and Kashmir and was likely to meet Prime Minister Narendra Modi tomorrow.
Sources said after the discussions between Rajnath and Vohra, the Home Minister approved Rs 1122.56 crores from National Disaster Response Fund to meet expenditures incurred by the State Government for immediate restoration of public infrastructure consequent to the devastation caused by September 2014 floods.
He also sanctioned Rs 20 crore from National Rural Drinking Water Programme for restoration of drinking water system in the flood affected areas of the State.
Sources said the MHA has already released Rs 634.99 crores for the State Government for providing immediate rehabilitation of flood victims including Rs 144.85 crores towards food subsidy, Rs 35.67 crores for restoration of National Highways and roads, Rs 25.41 crores towards petroleum products, Rs 2.52 crores for milk products and Rs 1.54 crores for medicines.
“This entire amount has already been spent,” sources said.
The MHA today also examined the proposals for several States based on the visits of the Central team to the States affected by severe natural disasters during last year and decided to release assistance from NDRF in respect of the States including Jammu and Kashmir.
Sources said the Home Minister and the Governor discussed the latest status of utilization of funds announced by the Prime Minister including a grant of Rs 765 crores from the Prime Minister’s National Relief Fund and Rs 1000 crores as Special Assistance for reconstruction of damaged public infrastructure in Jammu and Kashmir.
“During the course of discussion, it was decided that for final decisions with regard to Special Package of Rs 41,000 crores, which has been submitted by the Jammu and Kashmir Government, the Union Ministry of Home Affairs shall be the Nodal Authority for all further decisions in regard to the schemes proposed by the State Government,” sources said.
They added that the State Government will forward detailed proposals/Detailed Project Reports (DPRs) to the concerned Central Ministries with copied to the Home Ministry, which shall exercise overall co-ordinations.
“As regards the grant of Rs 570 crores, which the Prime Minister had announced during his visit to Srinagar last Diwali, it was noted that after disbursing compensation at Rs 1 lakh and Rs 50,000 respectively for fully damaged pucca and kucha houses respectively, certain funds of this grant would remain for utilization.
“After hearing the difficulties voiced by the Governor, the Home Minister readily agreed to discuss the matter with the Prime Minister and get an early concurrence for entire available funds being utilized to also suitably compensate the owners of severely and partially damaged pucca and kucha houses,” sources said.
Rajnath Singh and Vohra also reviewed utilization of the Special Plan Assistance of Rs 1000 crores announced by the Prime Minister, sources said, adding the Governor informed the Home Minister that well-considered project reports were being prepared and funds were being promptly released for the execution of approved projects. He also mentioned that this entire activity was being closely monitored by him.
The Home Minister and the Governor also had an extensive discussion on issues related to Border Management. The Home Minister directed Union Home Secretary Anil Goswami to visit Jammu next week for comprehensive review of all border development related schemes.
Earlier, the Governor called on Union Finance Minister Arun Jaitley seeking to bail out the State from grave financial crisis. The meeting comes in the wake of the State facing unprecedented financial crunch with liabilities soaring all time high to hundreds of crores, treasuries running dry and development works suffering very badly in the absence of cash flow from the Government of India including funds under annual place and Centrally Sponsored Schemes.
Sources said Vohra in his meeting with Jaitley observed that there was an unfunded gap of over Rs 5000 crores in overall resources in Jammu and Kashmir Government, a result of which the level of pending liabilities across the treasuries in Jammu and Kashmir has crossed over Rs 2000 crores.
The Governor sought immediate Central assistance for providing relief to the people, who had been badly affected by the floods in the State in September last year.
“The Governor will be calling on Prime Minister Narendra Modi tomorrow morning after which it was expected that an in-principle nod for a package for the State could be given,” sources said.
Vohra’s visit comes in the backdrop of his separate communications to Jaitley and Rajnath on the grave financial crisis in the State and delay in rehabilitation of the flood victims.
The Governor’s meeting with Jaitley was aimed at securing early release of funds from the Centre to bail out the State from worst ever financial crisis while the meeting with Rajnath Singh was meant to get package and funds for September flood victims.
During his meeting with Jaitley, the Governor stressed upon removing bottlenecks for release of funds for Jammu and Kashmir immediately as the State was passing through a critical stage because of accumulating liabilities on account of temporary restoration of the public infrastructure due to floods
The Governor apprised the Union Finance Minister that the State Government continues to reel under the burden of huge structural negative Balance in Current Revenues (BCR) which has grown over the years.
“The situation has been further aggravated by the unprecedented floods that had struck the State in September 2014 resulting in colossal losses to life, private property and public infrastructure,” the Governor said.
He added that the damages have adversely impacted the pace of economic activity in the State also leading to erosion of State Government revenues. He highlighted an unfunded gap of over Rs 5000 crores in the overall resources of the State Government as a result of which the level of pending liabilities across the treasuries has crossed over Rs 2000 crore.
The Union Finance Minister assured the Governor that the State Government’s financial difficulties will be immediately looked into with all sensitivity and sympathy on an emergent base.
It was decided in the meeting between Jaitley and Vohra that a team of senior officers of Planning, Finance and other Departments from the State Government will meet the Secretary (Expenditure) in the Union Finance Ministry so that the State Government’s requirements are addressed in a time-bound manner.
Mr Vohra urged for immediate release of balance amount of about Rs 1160 crores under Special Plan Assistance (SPA) to ensure timely completion of ongoing development projects in the State.
The State Government had earlier been assured Rs 11,900 crores worth Central funding for current financial year of 2014-15 including Rs 7300 crores worth annual plan, Rs 600 crores under Prime Minister’s Re-construction Plan (PMRP) and Rs 4000 crores under Centrally Sponsored Schemes.
However, with majority of funds pending, the Government had run into major financial crisis with liabilities piling up in the Government treasuries, employees and pensioners waiting for 17 per cent DA of last year and development works taking a back seat.
Mr Vohra sought early release of funds by the Centre in all sectors as just two months were left for the current financial year to end.
It may be mentioned here that Vohra had few days back sent a detailed communiqué to Mr Jaitley seeking his immediate intervention in the matter.
He had sought immediate release of Plan and other funds from the Central Government, which couldn’t be released earlier on one pretext or the other. At the Central level, there was confusion about the fate of Planning Commission and at the State level, the situation got complicated first with the massive floods, imposition of Model Code of Conduct and subsequently, due to lack of Government formation.
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