New Kerala has to be built, UAE to give $100 mn: Vijayan

The United Arab Emirates has pledged $100 million to support relief and reconstruction efforts in flood-ravaged Kerala, Chief Minister Pinarayi Vijayan said on Tuesday, as the state began assessing the enormous task of rebuilding infrastructure destroyed by the worst floods in nearly a century.

Vijayan said the UAE had conveyed its decision to Prime Minister Narendra Modi. He thanked the Gulf nation for its support, particularly highlighting the contribution of the large Kerala diaspora living and working in the UAE and other Middle Eastern countries.

"The UAE rulers informed our Prime Minister about their contribution for Kerala," Vijayan said, adding that the information was conveyed to him by M.A. Yusuf Ali, chairman of Lulu Group International.

With large parts of the state devastated by floods and landslides, Vijayan said the immediate focus would be on relief, followed by a comprehensive reconstruction programme.

"A new Kerala has to be built," the Chief Minister said after a Cabinet meeting. He added that the state government would prepare and submit a detailed assessment of the damage to the Centre.

The government is looking at several sources to finance the reconstruction. Vijayan said Kerala would seek permission from the Centre to raise its market borrowing limit from 3 per cent to 4.5 per cent of the state's total revenue. If approved, the move could provide the state with an additional Rs 10,000 crore.

The state also plans to approach agencies such as NABARD for assistance with infrastructure development and drinking-water projects. Vijayan said Kerala would seek a special financial package from the Centre to help meet the massive reconstruction costs.

The scale of the humanitarian crisis remains immense. More than one million people were staying in 3,274 relief camps across Kerala following the devastating monsoon floods. The death toll since the rains began on May 29 had risen to around 370.

Financial assistance has also started reaching the Chief Minister's Distress Relief Fund. By Monday, around Rs 210 crore had been received, while another Rs 160 crore had been pledged.

The floods have caused extensive damage to homes, roads, bridges, power infrastructure and other public facilities, leaving the state facing a long and expensive recovery process.

To discuss the destruction and decide on the road ahead, the Kerala Assembly will hold a special session from August 30. The session is expected to focus on the scale of the damage, relief measures and the state's long-term reconstruction strategy.