Jairam scoffs at State's relief demand

Pouring cold water on Karnataka’s face, the Empowered Group of Ministers on Drought has asked to scale down “huge” fiancial demand from the Centre and come up with a realistic proposal outlining specific requisitions on short term and long term plans.

Union Rural Development Minister Jairam Ramesh and Union Agriculture Minister Sharad Pawar held a a two-hour-long meeting with Chief Minister Jagadish Shettar and his cabinet colleagues besides officials in the Vidhana Soudha in Bangalore on Thursday.

Pawar is touring all the four drought-hit states - Maharashtra, Gujarat, Rajasthan and Karnataka. Ramesh and 12 officers are accompanying Pawar. After the review meeting, when a reporter asked if Karnataka’s demand for financial aid was realistic, Ramesh did not give a direct reply. Instead, he quoted from a well known journalist’s book - “Everybody loves a good drought”  - and left the venue. The visiting team has asked the state government to submit the fresh proposals in next two to three days. All the proposals of Karnataka will be re-scrutinised in a meeting of the panel to be held on August 7 or 8. The state did not present any memorandum to the Centre but made power-point presentation on the drought situation.

The state is facing 39 per cent rainfall deficiency and 26 districts of the 30 are reeling under drought.

The team also kept mum on the state’s request to reimburse 75 per cent, about Rs 4,000 crore, it has waived as co-operative bank loans to help farmers.  In addition, the state also wanted the Centre to consider waiving the loan raised by farmers from the nationalised banks. The loan amount is about Rs 20,000 crore taken by 22.20 lakh farmers. But, the loan yet to be paid back by farmers is about Rs 18,306 crore, it is said. Even for this request, the visiting team just said it would look into the demand.

While Ramesh told reporters that  the memorandum submitted by the state, asking for a financial assistance of Rs 11,492 crore, has “little to do with drought and more to do with structural programmes”, Pawar said that Karnataka stood at a far comfortable position than what has been projected by Shettar.

Ramesh said that Karnataka should submit a revised proposal by segregating it into two segments – one proposing immediate financial assistance required to manage drought, which he said was the “worst in 40 years” and the second proposing measures to manage future droughts highlighting additional resources. The proposals should be indicated sector wise, he added. Ramesh said that his ministry had released Rs 286 crore, Rs 36 crore more than the State’s projection of Rs 250 crore.