After the flood of offers, Gujarat faces drought of funds
JANYALA SREENIVAS

AHMEDABAD, MARCH 25: Former South African President Nelson Mandela donated his entire Gandhi Peace Prize money -- $106,698 -- to the quake-affected. The Netherlands pledged to send across Rs 20 crore as immediate relief for quake victims. The West Bengal Government said it would give Rs 5 crore, Kerala Rs 2 crore. The Kolkata Gujarati Samaj promised Rs 4 crore to the Chief Minister's Relief Fund while Cognizant Technology Solutions said it would contribute Rs 13 lakh.

The list of donations that were promised from across the world for victims seems endless. About 700 organisations -- NGOs, social groups, voluntary bodies and foreign agencies -- have contributed or had promised to do their bit. If the promises were kept, the donations would have run into several hundred crores.

But where has all the money gone? Apparently the State Government never received most of it.

It is almost two months after the Kutch temblor battered the state, and all the Chief Minister's Relief Fund has is a paltry Rs 116 crore and 95 lakh. The Gujarat Earthquake Relief Fund had Rs 500 crore -- Rs 300 crore have already been spent on compensations, cash doles and house rebuilding advances. And the much-awaited foreign assistance is even more pitiable -- $11,117, 2,270 pounds and 1,000 Oman riyal.

With this in hand, the Gujarat Government is supposed to deliver a relief package of cash doles -- Rs 25,000 each to quake-affected people and compensation of Rs 1 lakh each to over 20,000 families whose kith and kin perished.

It may somehow manage, but the rehabilitation package -- likely to exceed Rs 10,000 crore -- seems a formidable task.

``Yes, the kind of grants and donations that were promised by various agencies and Governments were mind-boggling. However, what we actually received was a mere pittance,'' says Relief Commissioner P Paneerval, who heads the unenviable task of rehabilitating Kutch. ``Expectations were high when so many international agencies pledged monetary support. But now you can see the figures for yourself. It is embarrassing,'' he adds.

With coffers virtually empty, the government is banking on the World Bank (WB) and Asian Development Bank (ADB), which have jointly agreed to give a Rs 7,000 crore loan. ``We are lucky that the agencies have agreed to provide 30 per cent of this as a grant,'' says Principal Secretary to Chief Minister P K Laheri.

Laheri, however, is quick to point out that there is no need to be disappointed if the Chief Minister's fund is ``broke.'' ``From this we have to provide only cash doles and compensation and around Rs 150 crore are needed,'' he says. Sachivalaya sources say the State is also planning to raise several hundred crores as loans from banks.

Meanwhile, due to the cash crunch rehabilitation work is still under various stages of planning.

``The WB and ADB loans may take a couple of months but that doesn't mean work will stop in Kutch. The government will make arrangements. We dont have to depend on external aid,'' says Laheri.

The Gujarat Government remains hopeful. C K Koshi, Revenue Secretary, says the Chief Minister's fund is not the sole source. ``It is just a drop in the ocean. Besides Rs 500 crore from the Centre, we will get loans from ADB and WB and revenue will start flowing from the 2 per cent surcharge also. Since we are spending the money in phases, I don't think there will be a dearth of funds.''

Chief Minister Keshubhai Patel says the government's rehabilitation package will be put up as a separate budget head ``but still much of the revenue is expected through the 2 per cent surcharge, which is expected to raise Rs 250 crores.''

But all that Relief Commissioner P Paneerval has to say is: ``There are no other resources. Where do we raise the money from?''

Education Secretary Varesh Sinha, who is handling rebuilding of schools, hits the nail on the head. ``Agreed the money is still to come and may take some time. So we have a preparatory mechanism: Voluntary agencies, which want to rebuild on their own, have already been given permission. Progress is being made where agencies required 50 per cent government help. In cases where the government has to do 100 per cent work we have only completed the survey.''

Meanwhile, surpluses from various departments, including Union Water Supply Department (Rs 100 crore), Indira Awas Yojna (Rs 150 crore) and Education Department (Rs 150 crore), are being drawn to assist Gujarat immediately.

Cash doles for quake relief
Donations received from individuals: Rs 52.52 crores

Donations received from district collectors: Rs 3.34 crores

Miscellenous cash donations: Rs 16.18 lakhs

Amount received from PM National Relief Fund: Rs 60 crores

Total amount received in rupees: Rs 116. 95 crores.

Donations received from other countries in foreign exchange

US dollars: 11,177

UK Pounds 2,270

Oman 1,000

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.