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Gujarat announces Rs 550 crore package for Surat flood victims

  • BY India News Newsdesk
  • July 15, 2026
  • 0 COMMENTS

Gandhinagar, July 15 (IANS) The Gujarat government on Wednesday announced a comprehensive relief package for residents, traders and businesses affected by the recent floods in Surat, with Deputy Chief Minister Harsh Sanghavi stating that the measures are expected to cost the state around Rs 550 crore over the next three years.

The package was approved at a Cabinet meeting chaired by Chief Minister Bhupendra Patel on Wednesday, a week after torrential rain from July 6 triggered extensive flooding across residential, commercial and industrial areas of Surat.

The city received around 20 inches of rainfall within two days, forcing large-scale rescue operations, disrupting businesses and damaging homes, shops and industrial units.

Thousands of people were evacuated from low-lying areas while schools remained closed and relief operations continued for several days.

Announcing the decisions, Sanghavi noted that the Chief Minister had directed officials during his visit to Surat to immediately undertake a comprehensive survey of residential, commercial and industrial losses, begin distribution of cash dole and household assistance, accelerate sanitation work across the city, deploy door-to-door health teams and organise medical camps in affected localities.

He said around 9,000 sanitation workers, including personnel sent from municipal corporations across Gujarat, had been working round the clock for the past week to restore normalcy.

“So far, cash dole and household assistance have been paid to more than 19,000 citizens. Assistance has also been provided to more than 19,800 people whose ground-floor homes were flooded, while around 36,000 people living in upper floors who could not attend work despite not suffering property damage have received special assistance,” Sanghavi said.

The government has also announced direct financial assistance for commercial establishments affected by flooding.

Owners of damaged handcarts and pushcarts will receive Rs 7,500, while owners of cabins up to 40 square feet will receive Rs 25,000.

Owners of cabins larger than 40 square feet will receive Rs 50,000. Permanent shops will receive Rs one lakh in assistance. For GST-registered traders operating permanent shops, the government has introduced an interest subsidy scheme under which it will bear seven per cent interest on business loans for three years.

Traders with annual GST turnover of up to Rs 7.5 lakh will be eligible for loans up to Rs 20 lakh with interest support worth up to Rs five lakh.

Those with turnover between Rs 7.5 lakh and Rs 15 lakh can obtain loans up to Rs 25 lakh with interest assistance up to Rs eight lakh, while businesses with turnover above Rs 15 lakh will be eligible for loans up to Rs 30 lakh with interest support of up to Rs 10 lakh.

“Eligible beneficiaries would have to choose between direct cash assistance and the interest subsidy scheme.

To simplify verification, affected traders and business owners had been asked from the first day to record photographs and videos of flood damage.

Application forms would begin being accepted within 48 hours under the supervision of the district administration to enable quick disbursal of assistance.

The Cabinet also approved a one-year exemption from municipal property tax for houses, shops and business establishments that suffered flood damage and whose losses are verified.

“This is the biggest package announced so far for rain-related damage by a municipal corporation or any area. We want to stand shoulder to shoulder with the affected people and help them restart their livelihoods,” Sanghavi said.

He said the government remained open to including any category of affected people that may have been left out after the survey.

Responding to questions, Sanghavi said he had personally visited affected residential and commercial areas over three days to assess the damage, along with elected representatives, Chief Minister Bhupendra Patel and Union Jal Shakti Minister C.R. Patil.

“The relief package had been prepared on the basis of those field assessments and preliminary surveys, while a detailed sector-wise assessment covering residential, commercial and industrial losses would be released after the survey exercise is completed,” he said.

Floodwaters have largely receded in Surat, and restoration work is continuing across the city after one of the most severe rain events in its recent history.

The state government has said it is working to restore normal civic services while continuing sanitation drives, disease prevention measures and financial assistance for affected families.

–IANS

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