Taking note of the severe flood situation in the States of Tamil Nadu and Andhra Pradesh, the Centre has taken immediate steps to release funds to the two States to augment their liquidity position.
A total sum of ₹ 939 crore (under various heads including State Disaster Relief Fund (SDRF)) has been released by the Centre to the State of Tamil Nadu.
For Andhra Pradesh, a sum of ₹ 700 crore was released on Monday as part of certain commitment made on the reorganisation of the erstwhile composite State. This is in addition to the entire SDRF share for the year 2015-16 amounting to ₹ 350 crore released earlier.
Meanwhile, a central team will visit Tamil Nadu on November 26 to make a first-hand assessment of the damages caused by the recent floods.
A central team will also be sent to Andhra Pradesh as soon as its memorandum is received.
Further assistance, if any, beyond the SDRF available to the States will be decided by the central government after examining the assessment made by the central team, an official release said.
The framework for financial assistance in the case of natural disasters is based on the recommendations of successive finance commissions.
Under the present framework, every State has a State Disaster Relief Fund (SDRF). As much as 75 per cent of the resources in this fund are provided by the central government each year in two instalments. The balance 25 per cent is provided by the State Government.
If a disaster is of a magnitude which cannot be met from the SDRF, then States may make claim from the National Disaster Relief Fund (NDRF). Release of resources from NDRF for floods is based on an assessment made by the Central Government, the Ministry of Home Affairs being the lead ministry.
Srivats.kr@thehindu.co.in