Tuesday, August 16 2005 18:13 Hrs (IST) - World Time -

Belgaum: Prime Minister Manmohan Singh today (Aug 16, 2005) announced an interim relief of Rs 300 crore from the National Calamity Contingency Fund to Karnataka Government to take up relief measures in the flood-ravaged areas of the state.

Quoting the 'remarks' of the Prime Minister who cancelled his aerial survey of the flood-hit areas and review meeting with officials here due to inclement weather, Union Agriculture Minister Sharad Pawar made the announcement.

In his remarks read out by Pawar, Singh said he had asked the Home Ministry to release the fund from the National Calamity Contingency Fund and added, "We will provide all possible assistance to restore normalcy in affected areas".

Asked when the amount would be released, Pawar said it would be done tomorrow (Aug 17, 2005)or the day after. The interim relief is in addition to Rs 100 crore already released by the Center.

Pawar said Singh had taken off from Panaji for Belgaum but due to bad weather, could not proceed beyond the Western Ghats and had to return to the capital of Goa.

The Prime Minister, he said, waited for four hours in Goa and Avro aircraft was requisitioned from Baroda and Bangalore but even they could not proceed to and land in Goa.

The Prime Minister also said in his remarks that he has directed the central team to visit the state from tomorrow to assess the damage caused by floods.

A special relief package by NABARD

He also announced that the National Bank for Agriculture and Rural Development (NABARD) had been asked to give a special relief package for the affected families and lend the second crop loan.

The Prime Minister said the existing short-term loan up to Rs 50,000 would be converted into long-term loan for seven years with a two-year moratorium. It would carry zero percent interest rates.

For the medium and small entrepreneurs, he announced that the working capital and loans would be re-phased for seven years. Loans up to Rs 50,000 would carry no interest, besides which fresh working capital would be provided to them.

An amount of Rs one lakh from the Prime Minister's National Relief Fund to each family, which had lost a person, was also announced by the Prime Minister.

Pawar said it would take eight to 10 days for submission of the report on the extent of damage caused by the floods and the Government would thereafter take a decision after studying it.

Karnataka Chief Minister N Dharam Singh said the state had sought Rs 3,272 crore relief from the Center to meet the flood situation.

Union Minister of State for Planning M V Rajasekharan, Deputy Chief Minister M P Prakash and Water Resources Minister and KPCC President Mallikarjun Kharge were also present.