Prime Minister Manmohan Singh Saturday announced interim assistance of Rs.1,000 crore each for Andhra Pradesh and Odisha for relief and rehabilitation after the states were hit by cyclone Phailin last month.
Manmohan Singh made this announcement when Andhra Pradesh Chief Minister N. Kiran Kumar Reddy and his cabinet colleagues met him in the national capital and sought an assistance of Rs.6,510 crore.
The prime minister assured Reddy that the centre would release Rs.1,145 crore as central assistance due to the state since 2009 towards drought and cyclone relief.
This assistance was already sanctioned but not released, said a statement from the chief minister's office in Hyderabad.
The chief minister requested Manmohan Singh to sanction Rs.6510.39 crore as relief as per National Disaster Response Force (NDRF) norms towards the damages caused by both Phailin and the recent heavy rains.
"The total quantum of assistance to the states will be finalised after consideration of the on-the spot assessment report of the inter-ministerial central team," said a statement issued by the Prime Minister's Office.
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Besides, an ex gratia of Rs.200,000 each to the next of kin of the deceased and Rs.50,000 each to the seriously injured people have been sanctioned from the Prime Minister's National Relief Fund.
Talking to reporters after the meeting, Reddy thanked the prime minister for announcing the immediate assistance of Rs.1,000 crore.
He submitted to Manmohan Singh a detailed report on the damages caused by the cyclone and the heavy rains.
According to the note, 58 people were killed due to heavy rains that lashed the state Oct 21 to Oct 27. The rains affected crops over 13 lakh hectares. The value of the crop loss was estimated at Rs.3,819 crore.
Pointing out that crops over 72.72 lakh hectares were damaged since 2010, Reddy sought total waiver of crop loans to the affected farmers.
He also demanded more procurement centres by Food Corporation of India and Cotton Corporation of India to procure discoloured paddy, cotton and other crops.