Mudra (Micro Units Development and Refinance Agency ltd) Yojana, a new financial system launched by the Narendra Modi Government at the Centre, would help the victims of the recent flood which devastated the lives of thousands of people in Chennai and four other districts in Tamil Nadu. This was declared by Union Finance Minister Arun Jaitley after his hour-long meeting with Chief Minister J Jayalalithaa and her Cabinet colleagues at Fort Saint George, the State secretariat on Sunday.
Speaking to newspersons after the meeting, the Union Finance Minister said financial assistance would be offered under the Mudra Yojana to the flood victims of Tamil Nadu. “Talks are on between the Centre and the State Government with regard to extending loans under the Mudra Yojana. Efforts will be taken to provide financial assistance in the form of loans to flood victims,” said Jaitley.
Mudra Yojana has been set up to offer financial assistance to non-corporate small business sector in the country. Jailey said the insurance companies have received 11,000 claims from IT companies and other business establishments which suffered losses in the floods. “We have extended help to 2,000 claims. A team from New Delhi will visit Tamil Nadu soon to settle the remaining claims. Orders have been issued to complete all formalities within four weeks,” he said.
Jaitley also said that 2,600 branches of various nationalised banks spread across the flood-affected Chennai and other districts have been instructed to provide loans and financial assistance to flood-affected people in the concerned areas.
A Government of Tamil Nadu Press release said that the Chief Minister told the Union Finance Minister that her Government was busy preparing a supplementary memorandum detailing the devastation caused in the State after November 23. An earlier memorandum had requested the Centre to release Rs8,481 crore as relief towards the rescue and relief operations. The Chief Minister has sought an additional Rs2,000 crore from the Centre to enable the State Government to sustain the relief operations.
Jaitley’s visit to Chennai is being seen as a follow up to the visit by Prime Minister Narendra Modi, who undertook an aerial survey of the flood-affected regions. Union Minister for Urban Development M Venkaiah Naidu also toured the State for two days last week. Naidu, who held a 45-minute long meeting with the Chief Minister later called on the Prime Minister and Jaitley and informed them about the seriousness of the state of affairs in the flood-affected regions. The Prime Minister has declared the floods in Chennai as a calamity of severe nature.
Saturday saw Kalraj Mishra, Union Minister for Micro, Small and Medium Enterprises, touring the industrial parks in Chennai and neighbouring districts. It is reported that 14,000 MSME units employing 50,000 workers have been hit by the recent floods.
After disbursing loans and financial assistance to those affected by floods, Jaitley asked the insurance companies to ‘expeditiously dispose of all the claims. “The insurance companies have set up 176 centres in flood-affected districts and all claims have to be settled expeditiously,” the Minister told the officials. Jaitley wanted the bankers to be on a mission mode to extend soft-loans to those affected by the flood.
Earlier, the Minister met representatives of Reserve Bank of India, Chennai, senior officials of public sector banks and insurance companies to chalk out an action plan to help floods-affected people. The report is that he told the bankers and insurance companies to offer maximum help in minimum time to all those who seek financial assistance and concessions in repayment of loans.
A release issued after the Minister’s meeting with bankers said Jaitley disbursed Rs 42.07 crore as assistance to 1,223 people affected in the flood. A total of 129 people received financial aid of Rs 3.25 crore for renovating houses while 420 women received benefits worth Rs 5 crore. Insurance compensation of Rs 5.93 crore was given to 154 beneficiaries, while 659 people were presented financial aid of Rs 9.02 crore under Prime Minister’s ‘Mudra Yojana’. Eighty-five severely damaged MSME units received Rs 26.95 crore worth of loans while 350 people whose homes were either washed away or completely submerged by the floods received financial assistance of Rs 2.84 crore.