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April 30, 2002
New Delhi


Announcement by the Prime Minister Shri Atal Bihari Vajpayee's in the Lok Sabha

A Package for Economic Rehabilitation

Rehabilitation of all those who lost their homes, belongings and means of livelihood and the immediate revival of normal economic activities in all the riot-affected areas now remain primary national tasks. They need to be addressed with utmost expedition, understanding and sympathy. The spirit of spontaneous support and brotherhood demonstrated by all sections of the society in Gujarat in the aftermath of the devastating earthquake has to be kindled once again.

The rehabilitation package has to be comprehensive and cover all strata of society.

I announce an immediate package of assistance of Rs. 150 crore to Government of Gujarat to carry out its implementation. This package of assistance will primarily include:

reconstruction and repair of damaged houses and shops, both in rural and urban areas;

provision of assistance to all the self-employed categories who lost their earning assets;

financial support for recommencing business, commercial, and industrial activities;

revival of educational, medical and other institutions in the affected areas and

special programs to benefit widows and children.

This package will be fully supplemented by loans and assistance from banks and financial institutions on liberal and concessional terms as were extended following the earthquake of January 26, 2001.

The active involvement of HUDCO and the National Housing Bank for building and reconstruction of houses and shops would be enlisted. Similarly, financial institutions would be asked to catalyze industrial and economic activities. In this endeavor, the National Minorities Finance and Development Corporation would be enabled to play a supportive role.

Convergence of employment and welfare schemes like Prime Minister’s Rozgar Yojana and Sampurna Gramin Rozgar Yojana, would be promoted, where necessary by suitably augmenting the provisions under them.

It will be ensured that no one affected by the communal riots is left out of this relief and rehabilitation.

This rehabilitation package is in addition to a comprehensive relief package that I had announced when I visited Ahmedabad on April 4, 2002. Since March, relief in one form or another is already in hand. To enhance the vital need for immediate rehabilitation, the Government will ensure that the above package is implemented within four months. For this, the Cabinet Secretariat has been asked to monitor the work of implementation on a weekly basis.