Centre exempts Bihar from Rs1,000-crore relief repayment

Bihar government has been exempted from paying back the Rs1,000-crore emergency relief extended to it by the centre during the devastating Kosi river flooding that ravaged the state last year.

Finance minister Pranab Mukherjee made the announcement in response to JD(U) leader Sharad Yadav's attack on the centre for sending a letter to the state, stating that the centre would recover the amount.

Yadav raised the issue during Zero Hour on Thursday, citing a letter dated 27April, 2009 written to the chief secretary and saying that it was injustice. He said that the letter went against the assurances given by home minister, P Chidambaram against discrimination towards the state.

He was joined by other members from the JD(U) and BJD members. Yadav said the money was sought to be recovered despite the floods being declared as a national calamity by the prime minister.

He added that following chief minister Nitish Kumar's discussion with the prime minister when the prime minister said that matter would be looked into, nothing had happened over it though two-three months had passed.

The issue had become a sore point between the center and the state government, with chief minister Nitish raising it during the Lok Sabha elections, citing it as the centre's insensitive attitude towards Bihar.