The Central government has sanctioned a Special Assistance (Loan) of Rs 529.50 crore for 16 projects, including township development, in the landslide-affected areas of Central government and Mundakkai in Wayanad.
Photo: ANI
The Central government has sanctioned a Special Assistance (Loan) of Rs 529.50 crore for 16 projects, including township development, in the landslide-affected areas of Central government and Mundakkai in Wayanad.
The funds allocated for the financial year 2024-25 must be utilised before March 31, 2025.
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The repayment of the loan in 50 years was formally communicated to the Additional Chief Secretary of the Finance Department, Kerala.
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The allocated fund will be used for rebuilding essential public infrastructure such as roads, bridges, schools, and government buildings in the resettlement townships for disaster-affected people. It has been mandated that the fund be utilised by March 31. However, state Finance Department officials have raised concerns over the deadline, arguing that providing funds so late in the financial year and expecting immediate expenditure is impractical.
The Centre has warned that any diversion of funds from the approved projects would lead to a reduction in the loan amount. The state should also ensure that there is no duplication in funding of capital projects approved under the special assistance scheme.
The Kerala government had initially sought a special financial package of Rs 2,000 crore for landslide ravaged Wayanad’s reconstruction. Against this backdrop, the Centre provided the funding as a capex loan.
State Finance Minister K N Balagopal told media persons on Friday that it is not practical to spend the money completely within the time limit. “We had requested assistance as a grant to solve the loss caused by the landslides in Mundakkai and Chooralmala. However, the centre has sanctioned loans, instead of grants. Anyway, we are moving forward with the activities, this amount could have been allocated a little earlier, ‘’ he said.
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