Demanded Rs 5000 crores; Centre grants permission to Kerala to borrow 3000 crores

THIRUVANANTHAPURAM: The central government has granted permission to Kerala to borrow Rs 3000 crores. The Centre gave the state prior permission to borrow Rs 3,000 crore from the borrowing limit. The state had earlier demanded Rs 5000 crores in advance.

Earlier, the state had rejected the Centre's offer that it would provide Rs 5000 crore to the state. The state was of the stand that it needs Rs 10000 crore and not Rs 5000 crore. While making its stand clear in the Supreme Court on allowing additional loan to Kerala, the central government said that it was ready to provide Rs 5,000 crores to Kerala and that this amount would be reduced from the next year's limit. It also said that the state should find a way to solve the financial crisis.

The state government, which rejected the Centre's offer, stood firm in its demand of Rs 10,000 crores. Kerala also pointed out that the Centre's position was infringing on the rights of the state. The court then asked Kerala if it did not want to take the money offered by the Centre. With this, Kerala demanded a detailed hearing on the matter. The Centre also took the same stand.