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Tuesday, December 8, 1998

States want crores from penniless calamity fund

B S Nagaraj  
NEW DELHI, DEC 7: Flood-hit States have petitioned the Centre for Rs 11,500 crore from the Rs 700-crore National Calamity Relief Fund (NCRF). That is not the problem. The problem is that the fund is penniless. And both the States and Centre know this, but are participating in a charade, nevertheless.

The NCRF was set up in 1995 to aid States hit by natural calamities, on the recommendation of the Tenth Finance Commission and was to last till 2000. But it emptied out last year. An additional Rs 120 crore was pumped into it but to no avail.

This year, 16 disaster-hit States sent detailed memoranda with a total demand of Rs 11,485.19 crore. The Agriculture Ministry's stock reply on what is being done on the issue is: ``The requests for assistance from NCRF are under various stages of processing.''

However, the ministry is not to blame. It can do little unless the Finance Ministry replenishes the fund. ``The States are putting pressure on us and we in turn have taken up the matter with the Finance Ministry,'' said a senior Agriculture Ministry official.

The National Calamity Relief Committee (NRCR), headed by Prime Minister A.B. Vajpayee (he has deputed ministerial colleague Jaswant Singh to preside over its meetings) is yet to meet to discuss the States' requests. Calamity relief is a major political issue in States with ruling parties under intense Opposition pressure to get Central aid. States also vie with one another for assistance and a chief minister's political clout is determined by the sum he is able to wangle. This competition often leads to States exaggerating the extent of damage in the hope of wresting more from the Centre. ``If you look at some of the memoranda, you will see the amount requested is half the State's annual Plan size. NCRF is not some kind of insurance... it is only first-aid,'' said a Krishi Bhavan official.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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