CONTINGENCY FUND UNDER IAY FOR NATURAL CALAMITIES

 

5% of the total allocated funds under IAY are kept apart to meet the exigencies arising out of natural calamities and other emergent situations like riot, arson, fire, rehabilitation under exceptional circumstances etc with a district-wise ceiling of 10% of annual allocation (including State share) or Rs.70.00 lakh whichever is higher.

Proposals for this purpose have to come from State Governments/Admn. of UTs showing the extent of damage and the estimated fund requirement in respect of the proposed IAY houses provided assistance for construction of a house has not been obtained from any other source. The upper limit shall be 10% of the district’s annual allocation or Rs.70.00 lakh, whichever is higher. However, this will be within the overall ceiling of 5% funds kept apart for natural calamities. The relief will be as per the norms with regard to per unit ceiling of assistance for an IAY house prescribed under the scheme.

In order to facilitate timely relief to victims in the case of fire, riots and arson and enable immediate reconstruction of damaged houses, District Collectors/District Magistrates/ Deputy Commissioners at the district level are authorized to first incur the expenditure and extend assistance to victims of such calamities. The expenditure may be from their own resources or from the district’s IAY allocation. The ceiling of assistance to the beneficiaries will be as per IAY norms and the limits mentioned in the above para. The central share of the expenditure so incurred by the DRDA will be reimbursed by the Ministry of Rural Development. The DRDA will submit the proposal for reimbursement of central share along with details of families assisted and Utilization Certificate for the amount spent, duly signed by the Collectors. The Collector will also certify the occurrence & extent of the damage and also provide a certificate to the effect that no assistance for construction of house has been extended to the said victims of fire/riots/arson from any other source. The Ministry of Rural Development will meet such reimbursement expenditure from the 5% IAY funds earmarked for calamities.

The unutilized amount, if any, of this provision of 5% of the funds of the scheme, will be utilized for allocation to the better performing States/Districts. The Ministry of Home Affairs or any other Ministry/Department handling the natural calamity or other emergent situation will also be informed about the allocation of these funds, in order to avoid any duplication in relief work. Physical and financial progress reports of the funds so spent have to be furnished by the State Governments concerned on the work done within the provision of the allocation made for these contingencies.

 
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