BANKS AND FINANCIAL INSTITUTIONS DIRECTED TO PROVIDE IMMEDIATE RELIEF IN EARTHQUAKE HIT AREAS

       The Union Finance Minister, Shri Yashwant Sinha held an emergency meeting to plan and review the action and measures taken to provide relief to the earthquake hit State of Gujarat, here today. While expressing deep anguish at the unprecedented misery caused by the earthquake, Shri Sinha expressed his fullest sympathies for the suffering people and instructed the departments/organisations under Ministry of Finance to take immediate measures to provide relief and rehabilitation assistance to the victims of earthquake on war footing.

        Shri Sinha directed that the branches of the banks and financial institutions located in affected areas should start functioning immediately, if necessary through temporary or tented accommodation. Bank employees from other regions of the country should be pressed into service in the State of Gujarat and it should be ensured that the necessary financial assistance and banking services are provided to the affected people in accordance with the standing instructions of Reserve Bank of India for people affected by the natural calamities, he instructed. The officials have been advised to go out to the people and ensure delivery of assistance to them. Public sector banks, including the National Housing Bank have been asked to put up a control room to provide and propagate information on the assistance available.

        The Finance Minister was informed by the Indian Banks’ Association(IBA) that the Public Sector Banks of the country have decided to make a donation of Rs.20 crore to the Prime Minister’s Relief Fund for victims of the earthquake.

        The National Housing Bank(NHB) has come out with two programmes comprising Rs. 500 crore for financing the repair and reconstruction of houses in Gujarat. Out of this, Rs.200 crore is to be given by way of refinance to banks and housing finance institutions and Rs.300 crore as direct finance to State Housing Boards and other agencies at State level.

The refinance scheme will be operated through the scheduled commercial banks and the housing finance institutions approved by NHB for extending loans upto Rs.2 lakhs to the needy, for new construction as well as for repair/upgradation at concessional rates.

Further, under a Special Fund, NHB has earmarked Rs.25 crore for loans upto Rs.50,000 to help the under-privileged category of affected persons for repair/upgradation at concessional refinance rate of 7% p.a.

1. Under direct finance scheme, long term loans will be sanctioned to public agencies like housing boards, development authorities, municipal corporations, improvement trusts, etc. under State Government guarantee under concessional rate to rehabilitate the earthquake victims of the State of Gujarat.

As instructed by the Finance Minister, an urgent meeting of the banks has been called by Banking Division of Ministry of Finance on 29^th January to chalk out relief and rehabilitation strategy including implementation of standing instructions of Reserve Bank of India and further necessary relief as required. A team of senior officials of banks and financial institutions is also being sent to Gujarat.

 

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CUSTOMS, EXCISE AND INCOME TAX EXEMPTION MEASURES FOR RELIEF AND REHABILITATION OF EARTHQUAKE VICTIMS

        The Union Finance Minister, Shri Yashwant Sinha today reviewed the situation arising consequent to the Gujarat earthquake with the Chairmen and Members of the Central Board of Direct Taxes and Central Board of Excise and Customs.

        The Central Government have already provided full exemption from excise duty to goods donated or purchased out of cash donations, for relief of and rehabilitation of persons affected by the earthquake.

        In addition, a similar exemption has been provided from customs duty to imported goods intended for donation for the same purpose. Necessary notifications for the purpose have been issued.

        The Central Government have also decided to extend the benefit of 100% deduction to donations made on or before 30^th June, 2001 to charitable institutions already registered with the Income-tax Department for providing relief to the victims of the earthquake. The specific guidelines to be followed by these institutions in respect of such donations are being issued separately.

        It may further be reiterated that donations made to Prime Minister's National Relief Fund or to the Chief Minister's Relief Fund of any State are already entitled to the benefit of 100% deduction from the income of the donor.

BHILAI STEEL PLANT SENDS DUMPERS, SHOVELS AND GAS CUTTERS TO HELP RESCUE OPERATION IN EARTHQUAKE AFFECTED AREAS

        The Steel Minister, Shri B.K. Tripathi has appealed to Steel Plants to extend all help and co-operation to the victims of the earthquake in Gujarat. Bhilai Steel Plant has already sent 3 shovels and one dumper to Ahmedabad to carry out rescue and relief operation. The Plant has already sent 10 gas-cutters along with staff and allied equipment. Six more gas cutters will be sent tomorrow. The crane at Ahmedabad Stock Yard is already in operation to clear the debris.

        The Steel Minister has also asked all steel plants to rush medical aid for the victims. He has urged the staff of his Ministry and all the Public Sector Undertakings to contribute one day’s salary for the victims of the earthquake.

WATER RESOURCES MINISTRY CONTRIBUTES TO EARTH QUAKE RELIEF

        The Minister for Water Resources, Shri Arjun Charan Sethi has contributed 10 lakh rupees from the Member of Parliament Local Area Development Fund for the earthquake victims of Gujarat. In a message to the Gujarat Chief Minister, Mr. Sethi said that the employees of his Ministry have also decided to contribute one day’s salary to the Prime Minister’s Relief Fund for the purpose.

The Ministry for Tribal Affairs has announced a grant of Rs. one crore for the relief operations in the quake-hit areas of Gujarat. In a message expressing grief and sorrow at the natural calamity, the Union Minister for Tribal Affairs, Shri Jual Oram also called upon the people to come forward to contribute generously for the people affected in the tragedy.

 

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 INSURANCE COMPANIES TO PROVIDE IMMEDIATE RELIEF TO EARTHQUAKE VICTIMS

  The Union Finance Minister, Shri Yashwant Sinha held an emergency meeting to consider immediate relief measures for earthquake affected people of Gujarat, here today. The meeting was attended by, among others, the Finance Secretary, the Revenue Secretary, Special Secretary (Insurance & External Finance), Special Secretary(Banking), Chairman, LIC of India, Chairman, IBA and Chairman, National Housing Bank.The Life Insurance Corporation of India has announced the following as immediate relief measures to provide relief to the earthquake affected people of the State of Gujarat.

1. Death Certificate issued by any authority will be accepted for settlement of claim which means a substantial relaxation in procedure.

2. In case of non-availability of Death Certificate certification by an LIC agent would be enough for payment of claims.

3. Special cells have been set up in the city of Ahmedabad and other places in Gujarat for expeditious settlement of claims.

4. Remission of interest for a period of three months for policyholders who are not able to pay their premiums in time.

5. Duplicate policies would be issued free of cost in case of policyholders that may have lost their policies only on the basis of Letter of Indemnity.

6. Revival of policies would be done on the basis of just Declaration of Good Health with remission upto 50% of interest.

7. Relief Camps are being set up in various places to provide relief and food packets to the individuals/families affected by earthquake.8. Agents and employees are being mobilised to fan out in affected areas for participation in relief measures.

9. Set up tents for people who have been rendered homeless in cities like Ahmedabad, Rajkot, Bhuj etc. that are more severely affected by the earthquake.

10. LIC Housing Finance Ltd. will act as an agency of the National Housing Bank for initiatives that have been taken for individuals whose houses have been affected.

  The Chief Executives of National Insurance Company, United India Assurance Company, New India Assurance Company and Oriental Insurance Company are reaching Ahmedabad this evening to take stock of the situation. On 29.1.2001, in consultation with the local staff, they will devise a strategy for quick settlement of insurance claims like motor cars, homes, medical etc. Among the action proposed for quick claim settlement are –

1. the four insurance companies will function as a single coordinated unit;
2. surveyors and other staff strength will be augmented by their induction from areas within and outside Gujarat;
3. temporary arrangements for operating the branches, wherever, necessary will be made;
4. claims settlement procedure will be, wherever required streamlined; and
5. efforts will be made to reach out to policy holders to complete procedural formalities.

TELECOM LINKS TO BHUJ RESTORED

  The Department of Telecommunications has stepped up its massive efforts in the restoration and rectification operation in the quake-hit areas of Gujarat. 120 more channels have been added from Bhuj to Rajkot and Ahmedabad bringing the total number of channels now available to 240. A 2000 line exchange has been made functional at Gandhidham and PCOs have also been provided outside the exchange. People are now making calls from these PCOs free of cost. In Bhuj 7 PCOs have been provide at two locations with similar facilities.  The BSNL staff is atttempting to enter the main exchange building at Bhuj and Ghandidham. But this will depend upon clearance by a team of civil engineers regarding the safety of the building.

    A total of 20 satellite telephones and 8 small size C-DOT exchanges have reached Bhuj along with a party of technical staff from Rajasthan. The satellite terminals will be used to connect major taluka headquarters. After the restoration of transmission systems, the small exchanges will also be commissioned. Parties are fanning out towards rural areas, to restore the functioning of the exchanges and transmission systems.