Punjab CM urges centre to release Rs 60,000 crore pending funds, seeks higher compensation for farmers

Chandigarh (Punjab) [India], August 31 (ANI): Punjab Chief Minister Bhagwant Singh Mann has urged Prime Minister Narendra Modi to immediately release Rs 60,000 crore in pending funds for the state, citing the grave flood situation that has devastated large parts of the state.
In a letter addressed to the Prime Minister, Mann described the disaster as the "most severe natural calamity in decades", which has already affected nearly 1,000 villages and lakhs of people.
The Chief Minister said that heavy rainfall and water released from dams have worsened the situation in Gurdaspur, Kapurthala, Amritsar, Pathankot, Ferozepur, Fazilka, and Hoshiarpur districts. He warned that the crisis could deepen further in the coming days.
According to his assessment, around three lakh acres of agricultural land, mostly under paddy cultivation, have been submerged. The loss of crops before harvest, combined with livestock deaths, has left rural families, who depend on farming and dairy, reeling under immense distress.
Mann also highlighted the financial strain Punjab has been facing due to past revenue losses. He pointed out that since the implementation of GST and the shift from VAT, Punjab has suffered a loss of Rs 49,727 crore in revenues without adequate compensation from the Union government. Additionally, a shortfall of over Rs 8,000 crore has been recorded in the Rural Development Fund (RDF) and Market Development Fund (MDF).
The Chief Minister further noted that projects worth Rs 828 crore under the Pradhan Mantri Gram Sadak Yojana were recently cancelled, impacting rural connectivity.
Calling the situation "extremely delicate", Mann pressed upon the Centre to release the pending Rs 60,000 crore immediately so that Punjab can manage the flood crisis effectively. The Chief Minister also raised concerns over the current guidelines of the State Disaster Response Fund (SDRF), stating that the compensation norms are "grossly inadequate".
He pointed out that under existing rules, farmers receive only Rs 17,000 per hectare (Rs 6,800 per acre) for crop losses exceeding 33 per cent. Terming it a "cruel joke" on farmers, Mann said that the Punjab government is already adding an additional Rs 8,200 per acre, raising the total to Rs 15,000 per acre.
However, he argued that this amount is still insufficient, as crops were on the verge of harvest when the floods struck. He appealed to the Prime Minister to revise the SDRF compensation norms and increase the relief amount to at least Rs 50,000 per acre, reflecting the ground realities.
Mann assured that the Punjab government would continue to contribute its mandatory 25 per cent share under SDRF provisions. (ANI)