'What Will We Do With Rs 1,600 Crore?': Bhagwant Mann On Centre's Flood Aid

The initial assessment of damage from floods that have ravaged Punjab over the past weeks is around Rs 13,800 crore and the final figure will likely be higher, Chief Minister Bhagwant Mann told NDTV Friday.

New Delhi:

The preliminary evaluation of damages from floods that have devastated Punjab in recent weeks amounts to approximately Rs 13,800 crore, with the final figure expected to be higher, Chief Minister Bhagwant Mann revealed to NDTV on Friday, questioning why the federal government allocated only Rs 1,600 crore in aid.

He also responded to criticism from the opposition BJP and Prime Minister Narendra Modi, who claimed that the Punjab government had Rs 12,000 crore sitting unused in the State Disaster Response Fund (SDRF) account, which is intended for states to handle disasters such as floods.

"What can we accomplish with Rs 1,600 crore? Are they being serious? The initial assessment shows damages of Rs 13,800 crore... Rs 1,600 crore is merely a fraction of what's needed," he stated, also highlighting that the center had withheld Rs 8,000 crore for Punjab's Rural Development Fund.

The Punjab government utilizes the RDF, which is a three percent cess imposed on agricultural produce sales or purchases, to maintain roads and mandis (farmers' wholesale markets).

"The RDF payout was halted without justification... which typically happens to non-BJP administrations, meaning they stop providing funds to opposition governments," Mr. Mann explained to NDTV.

When questioned about the BJP's claim of Rs 12,000 crore, Mr. Mann informed NDTV that he had detailed records - debits and credits - for each year since 2010/11, showing that the current balance is less than Rs 2,000 crore.

"The SDRF account was established in 2010/11, when the state received Rs 84 crore. However, Rs 184 crore was expended that year. In 2011/12, Rs 171 crore was received and Rs 159 crore was spent. Similarly, in 2012/13, the center provided Rs 272 crore and Rs 10 crore was utilized. In 2013/14, Rs 194 crore was received and Rs 236 crore was spent..." Mr. Mann continued listing figures through 2025/26.

"In total, we received Rs 5,012 crore. From that amount, the SDRF spent Rs 3,820 crore. There's nothing concealed or illegal about this... so approximately Rs 1,200 crore remains. Where did this Rs 12,000 crore figure originate? The BJP simply added an extra zero to the actual amount!"

The Chief Minister further alleged that the center had also withheld about Rs 50,000 crore as Punjab's share of Goods and Services Tax revenue. "Just provide us with this... no need for any 'special package' from the center. We will handle our flood relief operations with this amount."

Punjab has been struck by the most severe floods to hit the border state in decades.

The flooding results from the overflowing Sutlej, Beas, and Ravi rivers, exacerbated by seasonal streams caused by heavy rainfall in catchment areas of Himachal Pradesh and Jammu and Kashmir. Additionally, heavy rainfall within Punjab worsened the flooding situation.

As of last week, 55 people have died, and statewide relief and rehabilitation efforts continue, with the constant threat of waterborne disease outbreaks. Over 2,000 villages and nearly four lakh people have been affected, according to Revenue Minister Hardeep Singh Mundian.

Furthermore, crops on 1.93 lakh hectares of land have been damaged, he reported.

A total of 14 Army columns, eight National Disaster Response Force teams, two State Disaster Response Force teams, and two Engineer Task Force teams have been deployed.

Last week, Mr. Modi announced financial assistance of Rs 1,600 crore and, in the statement Mr. Mann disputed to NDTV, claimed the state could also utilize Rs 12,000 crore from the SDRF account.

Before Mr. Modi's visit - he toured Gurdaspur district after completing an aerial survey - the state requested he announce a relief package of at least Rs 20,000 crore.