State loses Rs 3,400 cr every year due to natural disasters

Surjit Kumar Dhal,Bhubaneswar, May 20: On an average Rs.3,400 crores of financial loss is incurred every year due to natural calamities in Odisha which has been weakening the economy of the State to a large extent.

Latest estimate of financial losses to the State due to various natural calamities during the last 25 years reveals a sad state of affairs.

Due to severe natural calamities regularly faced by the State has resulted in financial loss of more than Rs.85,000 crore during the past 25 years, reveals official statistics.

The magnitude of the problem can be imagined as flood, cyclone, drought and rain triggered by cyclones have wreaked havoc in the State on unfailing regularities.

During the past 25 years Odisha has experienced as many as 17 floods, six super storms and 11 droughts which has impacted the State’s economy harshly.

The total financial loss incurred due to natural calamities since 1994-95 to 2019-20 stands at Rs.85,313 crore.

During 2019-20 alone, by May 18 the State has incurred a loss of Rs 13,167. 26 crore due to extremely severe cyclonic storm Fani.

State Government has spent more than Rs 12,000 crore on relief management for the people devastated by natural calamities during the last 24 years and it requires Rs 6767.56 crore for relief to Fani hit people.

This amounts to a total of Rs 18,767.56 crore.

According to official estimates Odisha faced financial loss of Rs.6243.96 crore due to the super cyclone in 1999 and it spent Rs.827.64 crore for relief operations in 1999-2000.

Due to super cyclone nearly 9866 people were killed and 1.30 crore people affected in 20,000 villages in 128 Blocks in 12 districts.

The total spending on relief during 25 years is accounted at Rs 18,767.56 crore, reveals latest estimate of Special Relief Organization.

A state with around 33 per cent of the population is below poverty line (BPL) is left in dire straits due to the loss in natural calamities and the disaster management mechanism is constantly under severe strain, say officials.

Further, the State is incurring huge expenditure on repair and restoration work out of its own resources from general Budget provision, which could have been utilized for other developmental purposes.

State government is also funding Disaster Mitigation activities from own resources as funds are not available from other sources like Central Grants, officials admit.

Officials admit that from 2007-08 to 2018-19, State has incurred expenditure of Rs.6000 crore for flood control out of its own resources and loan from NABARD.

In the meantime, State Government has also planned to build disaster resilient power infrastructure to minimize the loss in cyclones and floods.

For this an investment of Rs.10,000 crore is required and the State Government has urged the Union Government  to come to its rescue.

In the absence of Union Government support, the State government will have to utilize its own  resources and borrow funds from both domestic and external sources for reconstruction of damaged infrastructure.

The State government needs special support being a natural disaster zone and accordingly Chief Minister Naveen Patnaik has demanded Special Category Status for Odisha, feel experts.