Central govt's severe loans restriction: Supreme Court intervention provides no solace

THIRUVANANTHAPURAM: The Kerala government's move to approach the Supreme Court to counter the severe restriction imposed by the central government in taking loans has failed miserably. As per the direction of the court, several discussions were held with the central government during these times and as a result, the Kerala government was allowed a loan of Rs 13609 crores. Demand for additional loans or even temporary loan sanctions was not considered.

The Supreme Court did not issue an interim order with just two days to end the financial year. As March ends, the project cost is at a record low. Only 65.59% of the project cost of 38629.19 crores has been completed till yesterday. Last year it was 85.67%. In 2021-22 it was 93.98% and in 2020-21 it was 99.97%.

Delays in allotment of allocations and problems in payment to contractors have resulted in this, which will adversely affect project implementation in the years to come. Only 59% of progress has been presently attained in central government projects. A favourable Supreme Court verdict in the coming days would be of little help since Kerala will not be able to borrow as Tuesday was the final day of borrowing as per the norms of the financial year. As of now, Kerala has only received permission to borrow Rs 4866 crore as part of the implementation of the reforms in the power sector.