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Deccan Herald » National » Detailed Story
Rs 769-crore Central aid for Karnataka
From Utpal Borpujari, DH News Service, New Delhi:
Karnataka is likely to get a minimum of Rs 769 crore as additional Central assistance for long-term reconstruction of infrastructure affected by natural calamities during 2005.


A high-level committee recommended that Karnataka should be given Rs 769.09 crore, as against the State’s demand for Rs 1,447.37 crore. The final amount to be given to Karnataka and several other states would be decided by the government in consultation with the Planning Commission, official sources said.

However, the amount at the minimum is likely to be what has been recommended by the committee.

The assistance to the State will be part of a total package of Rs 5,368.37 crore that will be given to nine states as Central assistance for reconstruction of infrastructure damaged in natural calamities during 2005.

The reconstruction plan, to be implemented over a period of two years, was approved by the Union Cabinet at its meeting chaired by Prime Minister Manmohan Singh here on Friday.

The plan will come with a net grant of Rs 763.99 crore to the affected states as an addition to the Gross Budgetary Support, Information & Broadcasting Minister P R Dasmunsi said after the meeting.

“The plan will enable the affected states to undertake long-term reconstruction of the damaged infrastructure.”

“The states will implement the reconstruction plan in a period of two years from 2007-08 to 2008-09,” he said.

As part of the plan, Gujarat is likely to get the highest amount and Kerala the lowest, if one goes by the recommendation of the high-level committee that looked into the matter, on the basis of which the Cabinet took the decision.

Gujarat has been recommended for an amount of Rs 1,307.9 crore (as against demanded Rs 2,936.26 crore), AP for Rs 582 crore (demanded amount Rs 1,679 crore), Himachal Pradesh for Rs 129.94 crore (demand Rs 159.82 crore), Kerala for Rs 58.44 crore (demand Rs 84.2 crore), Madhya Pradesh for Rs 63.41 crore (demand Rs 63.41 crore), Maharashtra for Rs 999.60 crore (demand Rs 5,573.32 crore), Tamil Nadu for Rs 1,077.72 crore (demand Rs 6,441.87 crore) and Uttar Pradesh for Rs 335.10 crore (demand Rs 427.40 crore).

In another decision, the Cabinet approved a proposal to release India’s voluntary contribution of 100  million dollars and another 38.47 million dollars as assessed contribution for the social window of the SAARC Development Fund.

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