Gujarat Cabinet Unveils ₹1 Lakh Relief for Surat Flood-Affected Traders
The Gujarat Cabinet on Wednesday approved a comprehensive rehabilitation package for traders and businesses affected by the flood-like situation in Surat earlier this month. The package includes financial assistance of up to ₹1 lakh, interest subsidies on business loans, and a one-year waiver of municipal property tax for affected residential and commercial properties.
The decision was taken at a cabinet meeting chaired by Chief Minister Bhupendra Patel. Deputy Chief Minister Harsh Sanghavi, who is from Surat, stated that the measures aim to help traders and businessmen rebuild their businesses after the heavy rains.
Under the package, lump-sum financial assistance will be provided to street vendors, handcart operators, and owners of small and large cabins to help resume business operations. According to an official release, lorry and handcart operators will receive ₹7,500. Owners of cabins up to 40 sq. ft. will receive ₹25,000, while those with larger cabins will get ₹50,000. Shop owners with permanent structures who have filed GST returns for the last quarter are eligible for assistance of ₹1 lakh.
The government will also facilitate loans through banks and financial institutions. The interest subsidy scheme offers a 7% subsidy for three years on term loans. For shops with monthly turnover up to ₹7.5 lakh, loans up to ₹20 lakh are eligible, with a maximum subsidy of ₹5 lakh. Those with turnover between ₹7.5 lakh and ₹15 lakh can get loans up to ₹25 lakh, with a maximum subsidy of ₹8 lakh. Businesses with turnover above ₹15 lakh can access loans up to ₹30 lakh, with a maximum subsidy of ₹10 lakh.
Eligible beneficiaries seeking lump-sum assistance must submit applications to the Surat Municipal Commissioner or concerned local authorities by September 30, 2026. Assistance will be based on damage assessment using surveys, photographs, and other evidence.
The state government has also waived municipal property tax for one year for flood-affected residential and commercial properties in Surat city. Mr. Sanghavi noted that sanitation work has been completed in all affected areas and medical camps have been organised to address health concerns.
According to the official release, 19,256 families have received cash dole assistance so far, and cash relief has been provided to 39,237 individuals, totalling ₹13.15 crore.
The flood-like situation was triggered by heavy rainfall on July 6 and 7, inundating shops and houses in Rander, Limbayat, Varaccha, and other areas around Surat creek.
Additionally, the government has authorised District Collectors to make immediate fodder arrangements for livestock in low-rainfall areas, bypassing usual administrative approvals. Collectors can now assess local conditions and arrange fodder for cattle in gaushalas and panjarapols as needed.
