THIRUVANANTHAPURAM: The state wanted the Centre to raise the ceiling on borrowing to 4.5 per cent.
“Going by the way the Centre has been maintaining its fiscal deficit, it’s unlikely to hike the borrowing limit as per our request. That’s why the state has been thinking of other ways of fund generation. Accepting sponsorships will let individuals and organisations to adopt a region for reconstruction. However, the government will have strict control. The sponsorships will be accepted only as per guidelines,” said sources in the state government.
The sponsorships will be mainly for constructing houses, livelihood means and basic infrastructure.
“A mission will be set up with a convener for coordinating and implementing the projects. They can be implemented either directly or through sponsorships, which can be accepted from individuals and organisations,” said Industries Minister E P Jayarajan, who chaired the Cabinet meeting on Wednesday.
KPMG’s preliminary report focuses on ways and means for funding.
Asked whether the firm will have a role in the reconstruction phase or the mission set up for the same, Jayarajan said details have not been worked out till now.