Loan crisis leaves LIFE mission project in tatters

THIRUVANANTHAPURAM: The LIFE scheme won’t be resuscitated unless the central government comes up with a helping hand. The local bodies have failed in their duty to pay the share to the beneficiaries of the scheme.

The state government meanwhile has approached New Delhi with a request to avoid including the loan taken from HUDCO in the total loan limit of the state. This is impeding the development works in the state, according to the government.

Rs 1700 crores is due under the HUDCO loan. A few days ago Kerala Kaumudi reported the plight of 1,25,319 families who had started working on their dream home under the LIFE project but had to stop it midway due to lack of financial assistance. These families are now seeking shelter in tarpaulin sheds and in godowns.

Gram panchayats which are going through a severe financial crisis are only relying on the loan money given by the government for the LIFE mission projects. The government is taking a loan from HUDCO for the project through the Kerala Urban and Rural Development Financial Corporation under the Local Government Department. Since 2017, almost 56,108 houses have been completed in the project.

The lack of preparation for the project which covers crores is the mainspring for all crises. The government should have known that the loan taken on guarantee for this would be included in the state's borrowing limit. Leading economists also point out this fall from the government for the overall mess.