Govt releases Rs 6 bn to flood-hit Kerala; waives duty on relief material

The central govt has also decided to waive off customs duty and IGST on the relief material being imported to aid the people in the flood-affected areas

The Centre on Monday released Rs 6 billion to flood-hit Kerala and decided to waive customs duty and GST on the relief material being imported for the affected people.

The announcement followed a meeting of the National Crisis Management Committee (NCMC), which met for the sixth consecutive day, even as news reports suggested the UAE has extended assistance of Rs 7 billion to the relief funds.

The central assistance of Rs 5 billion, announced by Prime Minister Narendra Modi, and Rs 1 billion announced by Union Home Minister Rajnath Singh for the state was released to the government of Kerala on Monday, an official spokesperson said. 

The central government has also decided to waive off customs duty and IGST on the relief material being imported to aid the people in the flood-affected areas. IGST refers to the Integrated Goods and Services Tax, which is a part of GST. It is charged on the goods and services supplied from one state to another. 

Insurance companies expect claims from the state to cross Rs 10 billion, as the Centre has declared the deluge as ‘calamity of severe nature’. Assessment of claims will take place with situation moving to normal, a senior executive of an insurance firm said, adding that a clear picture would emerge in the next 4-5 days, when claims are received.

Given the magnitude, a preliminary assessment points that claims for car, home and industry will be upwards Rs 10 billion, the executive said. Oriental Insurance Company Chairman and Managing Director A V Girijakumar said putting any number on expected claims would be pre-mature.  

Public sector general insurance companies — National Insurance, New India Assurance, Oriental Insurance and United India Insurance — under the aegis of GIPSA, have geared up to settle claims. These companies have system in place and will also make the insurance claim form simple, Girijakumar said.
 

It was decided that on August 22, technical department heads and general managers will be meeting to align the existing guidelines and make suitable adjustments to fit into the requirements and context of the floods, he added.

An aerial view shows partially submerged road at a flooded area in the southern state of Kerala. Photo: Reuters

In a related development, in view of the events in Kerala and coastal Karnataka, the Centre has proposed to set up a Cyclone Warning Centre in Thiruvananthapuram, said M Rajeevan, secretary in the Ministry of Earth Sciences (MoES), on Monday. The centre is expected to come up in one month, he said.At present, the India Meteorological Department (IMD) has cyclone warning centres in Chennai, Bhubaneswar, Visakhapatnam, Kolkata, Ahmedabad and Mumbai.

"South India was managed by the Chennai (Met) office. Now, the Thiruvananthapuram centre will cater to the needs of Kerala and Karnataka, and will be equipped with state-of- the-art infrastructure, including forecasting tools, to issue weather warnings and coastal bulletins," he said.
 

It will further strengthen the present forecasting activity in IMD’s existing office in Kerala, Rajeevan said, adding the decision was taken to de-centralise IMD's operations in the south.

The ministry is also planning to set up another C-Band Doppler Weather Radar at Mangaluru by end of 2019, which will cover the northern parts of Kerala, a statement by the MoES said.

At present, there are two Doppler Weather Radars, in Kochi and Thiruvananthapuram.

With these three radars, Kerala will be covered for monitoring of rainfall and severe weather events, and adequately warn the people well in advance.