Bhubaneswar, Nov. 9: Prime Minister Manmohan Singh today announced an interim relief of Rs 1,000 crore to the state for relief and restoration due to Phailin and floods.

Chief minister Naveen Patnaik, who was scheduled to leave for New Delhi to meet the Prime Minister, the home minister and others to impress upon the need for immediate financial assistance, today cancelled his visit. Yesterday, governor S.C. Jamir wrote a letter to the Prime Minister, urging him to extend assistance to the state.

Union minister of state for fertilisers and chemicals Srikant Jena said he had met the Prime Minister on the issue two days ago. “I am thankful to him for releasing the money to the state. But, the assistance should be utilised properly. The amount must be used for overall development of the people affected by the twin calamities and not be limited to the Biju Janata Dal workers only.”

Demanding proper utilisation of the central assistance, Jena said: “The chief minister should convene an all-party meeting and constitute a committee of officials to ensure that the money meant for relief and restoration is spent judiciously and not used for partisan gains.”

On October 28, an inter-ministerial team of officials of the Centre, led by ministry of home affairs joint secretary Rashmi Goel, had visited the state to make an on-the-spot assessment after the twin calamities.

“We expect more money after the Centre gets the team’s report,” said an official.

The state government had sought an assistance to the tune of Rs 5,832 crore from the Centre. Official sources said that pending the final sanction of funds, the Prime Minister had sanctioned Rs 1,000 crore assistance. He has also sanctioned Rs 2 lakh each for the family members of the deceased and Rs 50,000 for those seriously injured in Phailin and floods.

In another development, state revenue and disaster management minister Surjya Narayan Patro today met Union rural development minister Jairam Ramesh in New Delhi and demanded immediate release of funds for three lakh houses under the Indira Awas Yojana.

The minister handed over copies of the two memoranda, in which the state had demanded Rs 4,242.41 crore for the damage caused by Phailin and floods in 18 districts and another Rs 1,590.09 crore for the second spell of floods in 13 districts.

Reacting to the Centre’s decision, panchayati raj minister and BJD vice-president Kalpataru Das said: “For the moment, we are relieved. However, the Centre must initiate steps to release more money to the state.”