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Post-flood reconstruction: Punjab to give Rs 1.80 lakh compensation, highest ever, to 30,000 households for damaged houses

Rs 1.20 lakh will be given under PMAY, and Rs 60,000 under MGNREGA towards labour and reconstruction of house: official

3 min readChandigarhNov 19, 2025 06:48 PM IST

The Punjab government will give Rs 1.80 lakh each, reportedly the highest ever, compensation to 30,000 people for their houses damaged in recent floods before December 5, The Indian Express has learnt.

“Of the Rs 1.80 lakh, Rs 1.20 lakh will be given under the Pardhan Mantri Aawas Yojana (PMAY), and Rs 60,000 under the assured employment scheme MGNREGA towards the labour and reconstruction of the house, which will also act as an assured employment for house owners or the beneficiaries of the scheme,” said a senior government officer.

The government said as many as 35,000 claims were received, of which 30,000 people were selected for compensation that would be distributed through cheques at a mega state-level function organised before the Zila Parishad and Block Samiti elections.

As per provisions under the State Disaster Relief Fund (SDRF) rule, a compensation ranging from Rs 40,000 to Rs 1.20 lakh is to be given as compensation for damaged houses, depending on the magnitude of the loss. Sources said when the state was declared “severely hit” by the floods, the state government had initially sought from the Centre a compensation of Rs 1.20 lakh each for damaged houses irrespective of their extent.

Earlier, the state government had pegged the loss at Rs 12,905 crore for the damage caused by floods. However, the government claimed that it had as yet not received compensation.

The Rural Development and Panchayat Department reported the heaviest toll and pegged damage at Rs 3,554 crore. The Revenue Department, which is dealing with crop losses, degraded farmland and destroyed homes, raised a demand of Rs 2,782 crore.

The education sector, which reported damages to 7,213 schools, 153 block primary offices and 19 colleges, sought Rs 547 crore for partial and complete structural damage. The Health Department sought Rs 780 crore for wrecked dispensaries, hospitals, equipment and widespread damage to health infrastructure, disruption of services, and significant loss of medical supplies in flood-affected districts.

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The Animal Husbandry Department claimed that 1,371 buffaloes and milch cows, 1.75 lakh poultry, and other livestock perished, and sought Rs 129 crore.

The Public Works Department (PWD) demanded Rs 1,970 crore to restore 4,657.83 km of roads and bridges, stating the road infrastructure across the state needed urgent repairs as planned roads suffered the highest loss, followed by Pradhan Mantri Gram Sadak Yojna, link roads and national highways.

The Mandi Board sought Rs 1,022 crore to repair 3867.63 km of rural-link roads (pucca and kutcha). The Water Resources Department, citing climate change-driven damage to canals and rivers, sought Rs 1,520 crore for long-term flood mitigation. The Agriculture Department sought Rs 367 crore for desilting, field restoration under the Rashtriya Krishi Vikas Yojana (RKVY), procurement and distribution of seeds.

The Food and Supplies Department demanded Rs 7 crore for damaged warehouses. The Power Department sought Rs 139 crore for hydel projects and electrical infrastructure. The Local Bodies Department demanded Rs 77 crore, and the Forest Department Rs 4 crore.

Kanchan Vasdev

Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India. Professional Background Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state. Experience: She previously worked with The Tribune and has played a key role in launching various city editions. Special Projects: Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship. Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river. Recent Notable Articles (Late 2025) Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government: 1. Legislative & Governance Standoffs "Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA. "Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor. "Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas. 2. Political Analysis & Rural Polls "Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections. "AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections. "Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership. 3. Law Enforcement & Bureaucracy "Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government. "Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP. 4. Welfare & Economy "Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program. "Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025). Signature Beat Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens. X (Twitter): @kanchan99 ... Read More

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