PM announces Rs 1,000 cr interim assistance to Andhra

Promises he would talk to the insurance companies to expedite the process of settlement of farmers' claims

Prime Minister Narendra Modi on Tuesday announced interim assistance of Rs 1,000 crore towards relief and rehabilitation measures in the cyclone-affected areas of Andhra Pradesh. He assured further assistance would be provided after a detailed survey of the devastation caused by cyclone Hudhud.

The PM, who visited Visakhapatnam on Tuesday, said the kin of the deceased would be given Rs 2 lakh each, while each of the injured would be provided Rs 50,000 from the Prime Minister’s Relief Fund.

The PM added he would talk to insurance companies to expedite the settlement of farmers’ claims, as the standing crop in the region had been destroyed.

Earlier, Andhra Pradesh Chief Minister N Chandrababu Naidu had sought Rs 2,000 crore as interim assistance from the Centre. He had also urged the cyclone be declared a national calamity.

On Tuesday, Naidu told the media the damage caused by the cyclone was huge. Eastern Power Distribution Company is estimated have incurred a loss of Rs 40,000 crore. About 6,000 transformers and 16,000 electric poles have been uprooted by gales.

Naidu said preliminary estimates showed the loss suffered by Visakhapatnam Steel Plant would be Rs 1,000 crore, Indian Navy Rs 2,000 crore and the Visakhapatnam airport Rs 500 crore. Losses to the state’s roads stood at Rs 800 crore.

Revenue officials said due to the cyclone, the industrial sector in the three coastal districts of Visakhapatnam, Srikakulam and Vizianagaram would see a daily production loss of Rs 170 crore. For 2013-14, gross domestic industrial production in the three districts was worth Rs 60,000 crore; of this, Visakhapatnam accounted for Rs 35,000 crore.

Owing to disruption in power supply, industrial activity in the three districts has come to a standstill. A Hindustan Petroleum Corporation refinery, NTPC’s 2,000-Mw power plant and all pharmaceutical units in Visakhapatnam, as well as hundreds of small and medium enterprises in the region, have suspended production. The services sector in the three districts is said to be incurring daily losses of Rs 20-25 crore. The South Central Railway has said it incurred a revenue loss of about Rs 15.6 crore through the past three days — Rs 4.6 crore in the passenger segment and Rs 11 crore in the freight segment. The entity started restoring train services on Tuesday.

While the Kakinada port has resumed operations, the ports at Visakhapatnam and Gangavaram have been partially reopened. It is expected the Visakhapatnam airport will commence operations soon.