Uttarakhand yet to make financial assessment of its losses

Though business chambers have called for immediate aid of Rs 10,000 crore for the disaster-hit Uttarakhand, the state government is yet to make a financial assessment of the colossal loss caused by the June 16-17 devastation in the hill state.

 

“We are working to make an assessment of the losses. But right now, our focus is on the relief work,” said state disaster management minister Yashpal Arya. A central team of experts is expected to tour the flood-hit areas of the state shortly to make an assessment of the financial losses, official sources said.

 

Prime Minister Manmohan Singh had already announced a relief package of Rs 1000 crore after making an aerial survey of the state last month along with Congress president Sonia Gandhi. In addition to this, the centre has also sanctioned Rs 300 crore to the Border Road Organizaiton (BRO) for the restoration of the road networks.

 

Although top government officials are not speaking much on the financial losses, the sources said the hill state may get a total package of over Rs 8000 crore from various agencies including the World Bank and Asian Development Bank (ADB).  The government is expecting a loan of Rs 3000 crore from both World Bank and the ADB after holding discussions with top officials of the two financial agencies. This loan will be in the shape of 90% grant by the central government.

 

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) has suggested the central government for a special aid of Rs. 10,000 crore for the rehabilitation and reconstruction activities in the wake of the deluge in the state. A paper prepared by ASSOCHAM asserted the cost of damages occurred to housing properties, crops, livestock, tourism -- the prime livelihood in the affected area, destruction of transport and communication systems and breakdown of public and rural extension services. The chamber Secretary General D S Rawat said that the report has been prepared on the basis of feedback provided by the two member’s team from ASSOCHAM to affected areas in three districts – Chamoli, Rudraprayag and Uttarkashi.  

 

The tourism and Industry departments have yet to make a report regarding the overall losses suffered to the two key sectors considered to be the growth drivers. The tourism industry was the worst affected in the wake floods since it crippled the Chardham yatra, the mainstay of the Garhwal’s economy.

 

However, the tourism department in its report had stated that it suffered a loss of Rs 57.80 crore due to the damage caused to its properties like tourism bungalows, parking facilities and others, said its deputy director A K Dwivedi.  

 

After holding talks with various departments, chief secretary Subhash Kumar stated that PWD department alone suffered a loss of Rs 733.44 crore. The total losses of all the departments are expected to be in the range of Rs 1000 -1500 crore.