Kerala Flood Relief Funds to Be Released in Three Stages After 75% Utilisation: Centre

New Delhi: In a written reply to a question raised by Dr. John Brittas in the Rajya Sabha, the Union Government revealed a sharply limited financial package for the Wayanad landslide disaster, ignoring Kerala’s urgent appeal for over 2,221 crore rupees in recovery and reconstruction.

Minister of State for Home Affairs Nityanand Rai stated that the Centre has approved only 260.56 crore rupees under the National Disaster Response Fund (NDRF). The funds will be released in three tranches, 30%, 40%, and 30%, with further instalments conditional on Kerala utilising at least 75% of the previously released amount. The first tranche of 78.17 crore rupees was released on October 17, 2025.

The Centre has also provided 249.18 crore rupees as an interest-free loan under the "Special Assistance to States for Capital Investment' (SASCI), along with 72 crore rupees under the National Landslide Risk Mitigation Project (NLRMP), which is general in nature and not tailored to Wayanad’s critical needs.

The Centre has effectively strangled Kerala’s relief efforts, providing only a fraction of the required funds and making further aid conditional. By ignoring the state’s genuine needs and offering repayable loans instead of immediate support, despite having provided adequate funds to Assam and other flood-affected states, the government’s response has sparked outrage over its indifference, highlighting a pattern of political bias.