Thiruvananthapuram: Chief Minister V D Satheesan on Thursday urged MPs from the state to press the union government to increase Kerala’s borrowing limit.
The CM has already submitted a memorandum in this regard to Union Finance Minister Nirmala Sitharaman.
The move marks a departure from the UDF’s stance when it was in opposition, when it had criticised the LDF government’s demand for a higher borrowing limit and blamed the Left front for Kerala’s economic crisis, accusing it of “financial mismanagement and extravagance.”
Achieving these ambitious goals and sustaining welfare programmes would require enhanced Central assistance, including higher budgetary allocations and Kerala’s rightful share of Central taxes, the Chief Minister said. With the State facing a severe financial crunch due to reduced Central grants and restrictions on borrowing, he stressed the need for coordinated efforts by all MPs.
Borrowing cap
Mr. Satheesan also noted that the borrowing cap imposed by the Centre has adversely affected several infrastructure projects, including those in the power sector. Kerala has already contributed over ₹5,000 crore for national highway construction and is expected to raise over ₹3,000 crore for the outer ring road project to improve port connectivity in Thiruvananthapuram. Although the Union Finance Minister had, in principle, agreed to exclude these expenditures from the State’s borrowing limit during a recent visit, sustained follow-up would be required to secure this, he said.
The Chief Minister also said a Central team would soon visit Kerala to study the identification of environmentally sensitive areas. After the visit, the State would present Kerala’s unique ecological concerns to the team and brief MPs for further follow-up.
He said recently announced projects, including the Southern Kerala Economic Corridor and the Wayanad Tribal University, also require Central assistance. The Centre should additionally release ₹1,000 crore towards paddy procurement, for which Supplyco has already submitted audited accounts.
The meeting urged MPs to actively pursue major railway projects, including the Angamaly-Sabari Rail, Kanhangad-Panathur-Kaniyur, Thalassery-Mysuru and Nilambur-Nanjangud lines, besides further national highway development, restoration of Kerala’s PDS kerosene allocation, and greater Central support for port-rail connectivity, integrated maritime logistics, airport cargo infrastructure and airport expansion.
Stronger mechanism
To improve coordination, the Chief Minister announced that a stronger mechanism would be established in Delhi to facilitate communication between MPs and the State government. A special meeting on national highway projects will be held on Tuesday, while separate meetings will focus on railway projects and other infrastructure proposals to be submitted to the Centre. He also said discussions would soon be held with the Karnataka Chief Minister on the night traffic ban on forest roads and projects such as the Thalassery-Mysuru rail line, Kanhangad railway line, and Bairakuppa Bridge. A dedicated dashboard in the Chief Minister’s Office will be created to keep MPs updated on the progress of these initiatives.
The meeting was also marked by the absence of some MPs, including K.C. Venugopal and Jose K. Mani.
