Rs. 200 crore released as first installment Rs. 1,000 crore package announced by PM

FUNDS TO COVER RECONSTRUCTION OF SECRETARIAT, GOVT BUILDINGS, SCHOOLS, ROADS AND DAMAGED HOMES

GANGTOK, 16 Jan: Rs.200 crore out of the Rs. 1,000 crore package announced by the Prime Minister for post earthquake restoration and rebuilding efforts in Sikkim have finally been released. This amount was approved and released by the National Planning Commission on 06 January, 2012. The remaining Rs. 800 crore will depend on how soon and comprehensive the line departments are in preparing their detailed project reports for usage of the approved funds.
This is the first set of funds released under the Rs. 1,000 crore package and come with conditions which include that there should be no duplication of schemes and projects for which the funds have been released.
Complementing the release of this first installment is the Rs. 227.51 crore approved as financial aid under the National Disaster Relief Fund. This aid, as confirmed by the Prime Minister today and the Union Finance Minister yesterday at meetings with the Chief Minister, as earlier reported, had been provided as assistance for permanent reconstruction and mitigation measures in respect of government buildings, mines, minerals and geology and other important infrastructure in the state. In this regard the State had put up a memorandum seeking Rs. 7,400 crore as central assistance for permanent restoration and rebuilding measures.
As for the assured assistance of Rs. 1,000 crore, the state government was required to put up detailed project reports (DPRs) prepared by the line departments on how and where the funds would be utilized. Only DPRs for projects totaling Rs. 200 crore have been approved thus far.
It is informed that the DPRs submitted by the State government are vetted by the concerned central ministries and only on their satisfaction are they approved by the central government. Not all get passed and approved in their entirety and there are usually some cuts or rebuttal by the Centre to which the state has to respond. In this regard, officials inform that the departments are required to rework and reframe their proposals for the satisfaction of the central government for release of the remaining Rs. 800 crore.
The Rs.200 crore released by the Planning Commission is additional assistance released to the state on its request. This includes additional assistance of Rs. 100 crore as Special Plan Assistance and Rs. 100 crore as Special Central Assistance to Sikkim for post earthquake works under the Prime Minister’s Package (Rs. 1,000 crore) during 2011-2012.
The central assistance has come with conditions as well. The state government is to ensure “monitorable targets”, both physical and financial, against each project before the funds are released to the line departments; besides, a monitoring mechanism is also to be instituted to check progress. Significantly, the Centre has warned against duplication of schemes. In the words of the Planning Commission, the state government is to ensure that alternative sources of funding or funds through existing central schemes should not be availed for projects for which the funds have been released. There should be no overlapping of projects or funds. The funds have only to be utilized for which they have been released by the centre and should be passed on to the implementing agencies immediately.
The break-up of the Rs. 200 crore released is as follows: Rs. 30 crore is for reconstruction of the Secretariat for which the state had sought Rs. 193 crore; Rs. 45 crore for reconstruction of government building including schools, the STCS, police headquarters etc. The actual DPR for this had put up an estimate of Rs. 100 crores; For rehabilitation of roads and bridges, the state has received Rs. 15 crore out of Rs. 200 crore sought and for reconstruction of 7,972 damaged houses, the Centre has released Rs. 70 crore as of now out of the Rs. 453 crore put up by the State Government.