Centre to provide more aid to Kerala as per mechanism: Jaitley

New Delhi, Sep 5: Finance Minister Arun Jaitley said Wednesday that the Rs 600-crore aid extended to Kerala for flood relief was interim in nature and that more funds would be released after assessment of the damage by central teams.

Refusing to respond to certain issues flagged by Kerala ministers, he said that Rs 500 crore has been provided by the Home Ministry, while Rs 100 crore has been allocated from the Prime Minister's fund.

He said the aid is interim and more funds would be provided for rehabilitation. Jaitley asserted that the Centre is working as per the framework provided by the 14th Finance Commission in dealing with natural calamities.

He said insurance companies have been directed to settle claims and banks asked to give loans so that people can rebuild lives.

Kerala had asked for a special package and stated that loss and damage could be much more than its plan outlay of Rs 37,272.90 crore for 2018-19.

PTI