Discussion with Nirmala Sitharaman; Kerala seeks consensus for financial aid from centre

THIRUVANANTHAPURAM: The state is looking for a consensus for financial assistance despite going to a case against the Centre's financial approach.

After submitting a petition for a special package of 24,000 crores, Finance Minister K N Balagopal met Union Minister Nirmala Sitharaman and requested. The Supreme Court has left the petition filed by Kerala against the central positions, including reducing the loan limit, to the Constitution Bench.

Despite filing the case, there is no change in the central approach. The loan limit of the state has also been reduced this time on account of KIIFB and Social Security Company loans. There is no re-examination of central grant or scheme assistance. There is also no favourable decision on sanctioning capex loan for Vizhinjam project. The annual loan limit of more than 46,000 crores has been reduced by a third this time as well. In this situation, Minister K N Balagopal changed his political interests and went to Delhi for discussion.

It is hoped that political discrimination will not be shown in the state where BJP has won a seat in the Lok sabha elections. The third Modi government is about to present its first budget.

4710 crores each in this year and next year should be allowed to make up the shortfall due to the change in lending policy. State had to bear 25% of the land acquisition cost for the National Highway. This is due to the high cost of land in Kerala. Kerala has to pay 6769 crores for this. 5580 crore was paid. This amount was found through KIIFB. The reduction of the loan limit is a double blow. To solve this, special permission is required to take a loan of 6000 crores.

Kerala did not get capex loan for the last two years. This is an interest free loan with a repayment period of 50 years. 5000 crore capex loan should be sanctioned for infrastructure development at Vizhinjam port and construction of Kozhikode-Wayanad tunnel. 586.95 crore as health aid of the withheld 15th Finance Commission and 616.28 crore as this year's allocation are to be released.