Wayanad rehabilitation: Centre releases ₹529 crore special assistance for Mundakkai-Chooralmala recovery

THIRUVANANTHAPURAM: The central government has finally handed over ₹529 crore for the rehabilitation of the Mundakkai and Chooralmala disaster-hit areas of Wayanad. The assistance was provided under the capex scheme as special financial assistance and is repayable after half a century without interest. This central assistance arrived on March 9, shortly after Chief Minister Pinarayi Vijayan inaugurated the township for the rehabilitation of the disaster victims on March 1. This timeline aligns with the central directive to complete the project phases before March 31, 2026.

The state had reported that the disaster, which killed about 400 people and left 1,600 people homeless, caused a loss of ₹1,202 crore and that total rehabilitation would cost approximately ₹2,221 crore. Although the state demanded that the event be classified as a special disaster to receive direct grants, the centre remained adamant that funds be released as a long-term loan, based on a detailed report. The state's demand for a federal loan waiver for the victims was also not accepted by the centre or commercial banks.

The township project gained momentum after the centre agreed in principle to allocate ₹529.50 crore based on the detailed report provided by Kerala. In the first phase, administrative approval was given for ₹351 crore and technical approval for ₹324 crore, with final approval settling on a ₹299 crore project value for the initial construction. The contract was awarded to the Uralungal Labour Contract Cooperative Society (ULCCS) under the supervision of KIFCON, a subsidiary of KIIFB. A total of 410 houses were built on 64.47 hectares of land in the Nedumbala and Elstone estates. To support the survivors, the state government took on the responsibility of ₹18.75 crore to waive their personal loans. Additional survival assistance was provided from the Chief Minister’s Distress Relief Fund (CMDRF), which received ₹773.98 crore in contributions specifically for Wayanad.

Central Assistance

(Amount in crores)

For construction of public buildings-111.32

Employment facilities- 15

Water supply facilities- 72.98

Hospital- 5.83

For Vellarmala School- 5.34

For houses, roads, etc.- 330.94