Cheque mate: The true story of Kosi aid

April 30:

Minutes after polling was over in the Kosi belt, the Bihar government received a letter from the disaster management division of the Ministry of Home Affairs. The letter, addressed to the chief secretary of Bihar R J M Pillai, asked the state government to refund Rs 1,000 crore provided to it for relief work in flood-affected Kosi region.

May 10: At the NDA rally in Ludhiana, Nitish raised the issue. Charging the Centre with not sanctioning Kosi relief package of Rs 14,808 crore, the chief minister slammed the Union government for asking it to refund Rs 1,000 crore okayed earlier.

May 11: The Prime Minister, during his Punjab visit, argued that what Nitish had been saying is false. “The fault of not spending the money is with the state government and not with the Centre,” said Manmohan Singh.

May 11: Hours after the PM charged Nitish with indulging in falsehood, the Bihar CM reacted strongly. “I am not telling a lie. It’s the Centre which has presented the facts wrong and made a mockery of constitutional provisions… how can we refund the money which we have already spent,” an angry Nitish shot back.

May 12: Manmohan talked to Nitish over phone and assured him to have a re-look over the entire issue.

The war of words over the relief package for Kosi victims was avoidable and totally uncalled for. After all, it was not a normal flood. It was a catastrophe. River Kosi had breached its embankment at Kusaha (in Nepal) on August 18 last, and started flowing along a new course creating large-scale devastation in Supaul, Saharsa, Madhepura, Purnia and Araria districts in Bihar. Lakhs of people were marooned.
The state government carried out one of the largest evacuation operations ever undertaken. Eventually, nearly 4.5 lakh people were kept in camps for more than two months. This was the largest chain of camps ever set up in the country. Manmohan Singh, who visited the flood-ravaged areas, declared it a national calamity.
After months of tireless effort by the government and non-government organisations, the restoration work in Kosi is nearing completion. But funds are still required to carry out the reconstruction and rehabilitation work.
Against this backdrop, the state government had sought an assistance of Rs 14,808 crore.

Big bargain

But the Centre assessed the total requirement for relief at only Rs 497.35 crore. For example, the requirement for re-construction of roads and bridges was Rs 1,533 crore. Against this, the Union government sanctioned a meagre amount of Rs 6.43 crore. Similarly, for restoration of electricity infrastructure an amount of Rs 126.7 crore was required. But the Centre granted only Rs 11.5 crore.
For reconstruction of school buildings in flood-affected areas, an amount of Rs 125.16 crore was sought for, but merely Rs 3.87 crore was sanctioned.
Chief Secretary Pillai, therefore, shot off a letter to Union Cabinet Secretary K Chandrashekhar stating how gross injustice had been done to Bihar while making assessment for relief package.
The chief secretary’s letter also questions the inaccurate accounting done by the AG. “The opening balance of the CRF account as on April 1, 2008 was Rs - (minus) 820.8 crore. It is not known as to how the Government of India arrived at a figure of Rs 905.24 crore as opening balance on April 1, 2008. The statement that the state government reported a balance of Rs 500.18 crore in the CRF account as on April 1, 2009 is also incorrect,” the letter said.
When Manmohan had a telephonic conversation with Nitish on Tuesday, he told the Bihar CM that he had been apprised of the letter written by the chief secretary. “The PM assured me that he will have a re-look into the entire issue. The Cabinet secretary has been issued necessary instructions in this regard,” said Nitish. Manmohan Singh has only a few days left of his government and he should take an appropriate decision quickly to meet Bihar’s rightful claim during one of its worst crises.