Surat flood relief: Gujarat approves Rs 147 crore grant for 3.54 lakh properties

Surat flood relief: Of the total affected properties, around 3.04 lakh are residential properties, accounting for tax and user charges worth Rs 73 crore.

The amount will be transferred from the Chief Minister's Relief Fund to the civic body, ensuring the municipal corporation does not have to absorb the financial burden of the tax waiver.

The decision is expected to benefit owners of around 3.54 lakh residential and commercial properties affected by flooding in Surat, the textile hub of Gujarat. The state government communicated its approval to the SMC through a letter on Friday.

According to The Indian Express, the relief covers property taxes and user charges for the 2026-27 financial year. Of the total affected properties, around 3.04 lakh are residential properties, accounting for tax and user charges worth Rs 73 crore. The remaining 50,500 are commercial properties, with dues amounting to Rs 74 crore.

The waiver follows a month-long survey conducted by the SMC across flood-affected areas. Several parts of the city, including Limbayat, Udhna A and B, and Varachha A and B zones, were severely affected by the flooding. More than 30 people died in the floods.

SMC seeks state assistance for Rs 147 crore tax waiver

The Surat Municipal Corporation had sought financial assistance from the state government after deciding to waive property taxes and user charges for affected properties.

The proposal was first cleared by the municipal corporation's Standing Committee and subsequently approved by the SMC General Board. It was then forwarded to the state's Urban Development and Housing Department for consideration.

The Gujarat government has now approved the relief sought by the civic body, agreeing to transfer the amount as a grant.

The state government's letter said heavy rainfall in July had caused widespread inundation in Surat, leaving residents and businesses facing significant difficulties. It confirmed that property taxes and user charges amounting to Rs 147 crore had been approved for waiver.

State grant to shield civic body from revenue loss

Speaking to The Indian Express, SMC Deputy Commissioner Swati Desai said the approval marked the first instance of the state government accepting such a proposal to waive property taxes and user charges for properties affected by floods.

She said the grant would be transferred to the municipal corporation in the coming days, adding that the financial assistance would ensure the SMC did not have to bear the burden arising from the waiver.