Successful implementation of reforms within energy sector; additional loan of 2924 crores to Kerala

THIRUVANANTHAPURAM: The Central Government has authorised an additional loan of ₹2,924 crore for Kerala this month, a move attributed to the state’s successful implementation of substantive reforms within the energy sector. This latest approval brings Kerala's total borrowing for the current fiscal year to ₹46,623 crore.

State Electricity Minister K. Krishnankutty welcomed the decision, noting that the state anticipates securing a further similar amount in additional loans upon the submission of remaining documentation related to ongoing reforms in the electricity sector.

Under current fiscal guidelines, the state is permitted to borrow up to 3% of its Gross State Domestic Product (GSDP). With Kerala’s GSDP currently estimated at ₹14,27,145 crore, the standard borrowing limit stands at approximately ₹42,814 crore. The federal framework allows for ₹29,529 crore of this total to be accessed by December, with the remaining balance scheduled for the subsequent months of the financial year.