Maharashtra may go for overdraft

The Maharashtra government is likely to go in for an overdraft this year. This is largely due to the relief measures undertaken following the drought in the state in September. The government has spent Rs 925 crore on drought relief measures since July 2003.

The state government has also got little in terms of fund allocation from the Centre. According to a well placed official, the state has sought drought-related assistance to the tune of Rs 1,712 crore. However, little more than Rs 40 crore is likely to be sanctioned in the immediate future.

Chief Minister Sushilkumar Shinde said on Saturday: "Since I took charge as chief minister (in January 2003), the state has not resorted to the overdraft facility even once. However, there is no assistance forthcoming from the Centre for tackling the drought situation. We have already spent Rs 925 crore on relief measures so far."

Maharashtra has sought Rs 1712 crore and 10 lakh metric tonne of foodgrain from the Union government to meet the drought situation in the state. In September 2003, the state declared drought and sought an immediate assistance of Rs 500 crore and foodgrain from the centre.

"Many of my Cabinet colleagues are keen on picketing outside Union government offices in New Delhi for the release of drought relief funds. However, I am still hopeful that when the prime minister A B Vajpayee visits Mumbai on January 16 we will get a positive commitment from him," Shinde said.

A senior state official said: "Despite repeated meetings with Prime Minister Vajpayee and Deputy Prime Minister Lal Krishna Advani by Shinde and Nationalist Congress Party (NCP) chief Sharad Pawar since July 2003, Maharashtra has not got the much-needed funds. Even the central government team that visited the state to make a first-hand assessment of the situation has given a strong report favouring release of funds to the state."

According to the official, the procedure for seeking assistance from the Calamities Relief Fund (CRF) has been duly followed by the state. After the visit of the central team, continuous interaction was maintained so that relief could be got.

The Union government has taken the issue of the employment guarantee scheme (EGS) run by the state government and the incremental rate of fodder being disbursed by Maharashtra to the various cattle camps in the state.

"The Union government has said that the EGS scheme does not fall under relief works. However, under the EGS scheme, which is being undertaken in drought prone areas and people are being provided means of livelihood, the rate of payment is lower than in relief schemes. Similarly, while the support price for fodder announced by the Union government is Rs 6 for calves and Rs 12 for adult cattle, the fact that the state government has announced an incremental rate of Rs 15 and Rs 25 for calves and adult cattle, respectively, has been objected to by the centre. It is because of these two technicalities that the drought assistance to Maharashtra is being delayed," the official said.

He, however, conceded that most of the cattle camps being run in Maharashtra were being organised by politically connected people who will benefit from the higher fodder rate.