No drought of funds for flood relief in Karnataka as government hikes compensation for victims

BENGALURU: Karnataka has decided to provide higher compensation to flood victims than what is required by the central government, notwithstanding its deteriorating finances. The state has revised both the amount of initial compensation as well as the relief fund provided to rebuild houses.

While the Centre allows states to give 3,800 as compensation to flood-affected families to buy essential items and resume their lives, the state will give an additional 6,200 from the exchequer in initial relief.

It will also give 5 lakh for houses that has over 75% damage. The Centre has fixed an upper limit of 95,100 for home damage.

Karnataka has also revised and fixed a new slab for houses with damages ranging between 15% and 75%. The compensation amount for these categories has been fixed at between 50,000 and 5 lakh.

Flood relief amounts are either released from the National Disaster Response Fund or the State Disaster Response Fund.

Karnataka is experiencing torrential rain and floods for a second consecutive year. Last year, floods had caused severe damage in 15 districts and the state had pegged the loss at 38,000 crore. The flood had caused huge stress on the state’s finances, prompting chief minister BS Yediyurappa to remind Prime Minister Narendra Modi to release the relief package in a farmers’ rally in Tumkur that both had attended.

Yediyurappa had informed the Assembly in February that the state was in a serious financial crisis. The situation has deteriorated since then, government sources said, due to the Covid-19 pandemic and the resultant lockdown that has slowed the economy to a crawl.

The state government’s initial estimate of the flood damage seen by ET reveal that nearly 2,400 houses were damaged from August 1 to 9.

The heavy rain has led to agriculture crop loss in 31,541 hectares and horticulture crop loss in 34,530 hectares. The state has yet to announce the compensation for crop loss this year.

An official from the revenue department said that the state will place its flood damage report before the prime minister in a video conference on Monday.