Punjab Seeks Immediate Release of Funds from Centre
Chandigarh, August 31: Punjab Chief Minister Bhagwant Singh Mann on Sunday wrote to Prime Minister Narendra Modi, seeking urgent release of Rs 60,000 crore worth of state funds stuck with the Government of India.
In his letter, CM Mann highlighted the severe flood situation in Punjab, describing it as one of the worst in decades. About 1,000 villages across seven districts—Gurdaspur, Kapurthala, Amritsar, Pathankot, Ferozepur, Fazilka, and Hoshiarpur—have been affected, impacting lakhs of residents.
“The state is facing extensive flooding due to heavy monsoon rains and release of water from dams,” Mann wrote. “The situation remains critical and may further worsen in coming days.”
Extensive Damage to Crops and Livelihoods
CM Mann’s letter stressed that roughly three lakh acres of farmland, primarily paddy fields, remain submerged under floodwaters, leading to devastating crop losses weeks before harvest.
In addition to crop losses, he highlighted widespread livestock casualties, severely affecting rural households dependent on dairy and animal husbandry.
“The ongoing floods have not only destroyed crops but also caused permanent revenue losses for the state due to GST implementation and transition from the VAT regime,” Mann added. He noted that Rs 49,727 crore of revenue remains uncompensated by the Centre.
Punjab Faces Financial Strain
The Chief Minister pointed out additional financial challenges faced by the state:
- Reduction in RDF and MDF funds, which has accumulated to over Rs 8,000 crore.
- Scrapping of pMcsy projects, impacting Rs 828 crore, affecting rural connectivity.
Mann warned that these issues, combined with the ongoing floods, pose a serious threat to the state’s economy and rural development.
Call for Revision of SDRF Compensation Norms
CM Mann emphasized that while substantial funds are available in the State Disaster Response Fund (SDRF), the existing guidelines prescribed by the Ministry of Home Affairs are grossly inadequate.
Currently, compensation for crop loss exceeding 33% is fixed at Rs 17,000 per hectare, translating to Rs 6,800 per acre, which Mann called “a petty amount” insufficient for farmers.
To mitigate the losses, Punjab government currently contributes an additional Rs 8,200 per acre, paying Rs 15,000 per acre to affected farmers. However, Mann demanded that at least Rs 50,000 per acre be paid, citing that crops are nearly ready for harvest.
“The notified SDRF norms are unrealistic and do not match the scale of losses faced by farmers, livestock owners, and vulnerable communities,” Mann stressed in the letter. He also reiterated that the state government will continue to contribute 25% as per SDRF guidelines.
CM Appeals for Urgent Intervention
Bhagwant Singh Mann urged the Prime Minister to intervene immediately, releasing funds and revising SDRF compensation norms to ensure relief reaches affected communities promptly.
“The people of Punjab are facing one of the most challenging flood crises in decades,” Mann wrote. “Immediate support from the Centre is crucial to safeguard livelihoods, crops, and the rural economy.”