THIRUVANANTHAPURAM: Six months after the devastating landslides in Wayanad killed nearly 300 people, the Centre has sanctioned an interest-free, long-term loan of Rs 529.50 crore to Kerala to implement 16 projects for the rehabilitation of the victims, albeit on a strict and “impractical” spending deadline.
The loan, to be repaid in 50 years, has been granted under the Scheme for Special Assistance to States for Capital Investment (SASCI). A note dated February 11, received by additional chief secretary (finance), said the fund was allocated for the 2024-25 fiscal and should be utilised before March 31, 2025.
Finance Minister K N Balagopal said spending the money by the stipulated date would be challenging. The sanction is based on the state government’s proposal of 16 infrastructure development projects worth Rs 535 crore. The proposed projects include construction of public buildings in the new rehabilitation townships and reconstruction of the Chooralmala bridge and the Vellarmala and Mundakkai schools that were washed away in the landslides.
The Union government is yet to take a call on the state’s request for a Rs 2000-crore special package. The money was sought for scientific rehabilitation and reconstruction works. A case in this regard is sub judice in the Kerala High Court.
The strict conditions on spending, mainly the March 31 deadline, is a concern for the Kerala government. Only payment of funds to actual beneficiaries will be treated as expenditure, fund release to intermediaries will not, said the note.
State hopeful of getting grant, says Min Balagopal
Saying that spending the money before the deadline would be a challenge, Finance Minister K N Balagopal added that consultations were being held on its utilisation. The state will communicate the impracticality in meeting the deadline, he told reporters.
“The state is still hopeful of getting a grant. We decided to go for a loan as we could not wait for the grant. If the loan amount is deducted from the grant, it would be good,” he said.