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Jaitley asks financial players what flood-rehab steps they have taken

Holds talks with LIC, GIC, 27 PSBs, National Housing Bank and 17 private Banks

Bs_logoArun Jaitley, Finance Ministry
Finance Minister Arun Jaitley speaks during the 'HT Leadership Summit 2015' in New Delhi. Photo: PTI
BS Reporter Chennai
Last Updated : Dec 20 2015 | 7:50 PM IST
After writing to the Prime Minister and visits by high level senior government officials to Chennai, to take stock of the impact of recent rain and flood, Union Finance Minister Arun Jaitley today reviewed financial services in the flood-hit districts. He also held talks with Tamil Nadu Chief Minister J Jayalalithaa and senior state representatives.

The Finance Minister after meeting Chief Minister said the state had written to the Prime Minister highlighting situation created by the recent natural calamity in Chennai and some adjacent districts.

The Union Minister said he came with senior officers of financial services departments and today morning and had a meeting with Life Insurance Corporation of India and General Insurance Companies, 27 PSU Banks, National Housing Bank and 17 private Banks.

"We discussed on how in addition to what the state government and central government are giving how these financial institutions can help the people,".

While Tamil Nadu did not officially said anything about the meeting, AIADMK's mouth piece Jaya TV said that the state Government has asked the Centre to release Rs 2,000 crore immediately.

It may be noted, earlier Tamil Nadu Government submitted a Memorandum to sanction around Rs 8,440 crore to take up rehabilitation work, besides it also asked the Urban Ministry to release Rs 5,000 crore to construct new houses for the people who were staying on the banks of River Coovum and Adyar river. Prime Minister Narendra Modi already announced release of Rs 1,900 crore to Tamil Nadu in two occasions.

Earlier in the day the Finance Minister disbursed loans to the flood victims in a function held at the City. He also met insurers and bankers.

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LIC claims with regard to people who had suffered in terms of life and there are around already about 11,000 claims.

"What we discussed at the meeting is that about 2000 of the claims have already been settled. All balance claims will be settled in four weeks and if there are any disputes, rather than people going to courts, each insurance company will have an ombudsperson who would settle these claims," said the Finance Minister.

He added, people have to be rehabilitated in terms housing, housing articles, vehicles--there has been a huge amount of loss-- crops have been damaged, shops have been damaged, MSMEs. In some cases people need educational loans and these are the banking facilities which are available to people. so we have set high targets to the banks today.

Almost on a mission mode the bankers have been told that the loan applications for soft loans have to be considered and they must ensure that the people who have applied in these categories, start giving loans and there would be a moratorium period. He said there are about 2600 bank branches in the four districts, which have been significantly affected due to rain and flood.

Eventual target is that almost every legitimate claimant should be entertained. Banks have a sufficient amount of fiscal place for that and Delhi will constantly review the progress.

On whether he held talks on GST Bill with Jayalalithaa, he said "the principal purpose of the visit has been to assist in terms of the recent natural calamity and our emphasis has been on that".

It may be noted, the BJP Government has been struggling to pass the bill due to lack of numbers in Rajya Sabha. It was reported, BJP may seek AIADMK's help to pass the bill. The Jayalaithaa-led AIADMK has been extending constructive support to the Modi government in the Parliament. AIADMK is the third largest party in the Lok Sabha with 37 members and has 11 members in Rajya Sabha, where BJP lacks numbers.

On estimate on soft loans in Tamil Nadu, the Finance Minister said the banks have sufficient head room particularly in relation to the Mudra scheme. This Mudra scheme this year gives small loans upto 50,000, Rs 5 lakh and Rs 10 lakh.

"We have a large amount of headspace this year till March 31, 2016 and our target we have already helped 72 lakh people across the country. The target is that we can almost go upto three times that figure".

The number of people who are involved in this district is 28 lakh families. so even if a significant per centage of them apply in this category they would fill in the requirement as far as business and house loans are concerned.

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First Published: Dec 20 2015 | 5:36 PM IST

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