Centre asks Kerala to settle Rs 205 cr for rice allotted during floods

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New Delhi: The central government has issued an ultimatum to the Kerala government warning of action over non-payment of Rs 205.81 crore for the rice allotted as flood relief during 2018-19. If the state fails to settle the amount, the centre will recoup the amount from SDRF in the coming year, reads the ultimatum. Following this, the Kerala government has decided to settle the amount.

According to reports, Chief Minister Pinarayi Vijayan has approved the file related to the payment.

When floods ravaged Kerala in 2018, the centre allotted rice as flood relief. Now, the centre has issued an ultimatum to recover the fund spent on the rice. Earlier also, the centre served notice to Kerala asking to settle the fund. The Centre and the state also communicated through letters on the same matter.

When Kerala faced pressure from the Food Corporation of India over the fund settlement, Chief Minister Pinarayi Vijayan had written to Prime Minister Narendra Modi seeking his intervention. At the same time, union minister for commerce and industry Piyush Goyal also asked Kerala to settle the amount.

In a letter dated January 6, 2020, the FCI has asked the state to settle the bill towards the cost of 89,450 tonnes of rice provided during flood relief during the 2018-19 floods.

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