The State government should furnish a fresh memorandum to the Centre detailing the damage caused by the flood and a final decision on the assistance would be taken only after an assessment by a Central team, Union Minister of State for Finance Pon Radhakrishnan has said.
Mr. Radhakrishnan, who attended a State-level Bankers’ Committee meeting along with Finance Minister T.M. Thomas Isaac, told reporters here on Wednesday that the latter had demanded immediate assistance to handle the crisis, but a final call would be made only after an assessment by a Central team. But the procedures for granting assistance would be expedited, he said.
Prime Minister Narendra Modi had asked his Cabinet colleagues to take a sympathetic view towards the State and was willing to give all support, he said.
State’s demand
Dr. Isaac said the Minister had taken a positive stance and the meeting was cordial. The State has voiced its demands to raise the borrowing limit from the current 3% of the SDP to 4.5%, impose a cess on SGST and such others and the response of Mr. Radhakrishnan was favourable. The Union Minister had agreed to take up the issues with the Centre, Dr. Isaac said.
The State government wanted the National Bank for Agriculture and Rural Development to enhance the rate of refinance from 45% to 65% so that farm loans could be distributed at 4% interest. This was also raised at the meeting, he said.
Banks have consented to disburse an interest-free consumer loan of ₹1 lakh, restructure existing loans, declared a one-year moratorium on existing loans, and ease KYC norms in the flood-affected districts. The government has mooted a credit guarantee scheme for those taking such loans. These announcements have come as a relief to the flood victims, he said.
Dr. Isaac also said the State would submit its memorandum to the Centre soon for securing its assistance at the earliest.