Kerala Finance Minister KN Balagopal announced on Tuesday that the state government would request the Centre for an extension to utilize the conditional loan of Rs 529.5 crore allocated for the rehabilitation of landslide-affected areas in Chooralmala and Mundakkai, Wayanad.
Addressing the media, Balagopal highlighted that the Centre’s directive to spend the loan amount within one and a half months presents significant practical challenges.
Given the circumstances, the state government plans to seek an extension for utilizing the funds and implementing the associated projects.
Meanwhile, the state government has assigned the responsibility of rehabilitation-related construction activities to a committee led by the Chief Secretary.
A 16-member coordination committee has been formed to oversee the process, reviewing sponsorship and construction costs for the proposed township.
The committee has also been directed to hold discussions with stakeholders, including those who pledged assistance, the construction company, and beneficiaries.
It has been agreed that land acquisition for the township will be completed, and construction will commence in March.
The committee will prioritize projects funded by the central loan and formally request additional time from the Centre for fund utilization once project activities are underway.
The Central government sanctioned the Rs 529.5 crore Special Assistance Loan for 16 projects, including township development, in Wayanad’s landslide-affected areas.
The funds, allocated for the financial year 2024-25, must be utilized by 31 March 2025. The Centre has warned that any diversion of funds from the approved projects will result in a reduction of the loan amount.