Kerala Finance Minister K N Balagopal Requests Immediate Centre Support for Wayanad Rehabilitation Package

Kerala's Finance Minister, K N Balagopal, has urged the central government to promptly grant a special package for Wayanad's rehabilitation after July's landslides. During a meeting in the national capital with Union Finance Minister Nirmala Sitharaman, Balagopal also requested the withdrawal of retrospective cuts on the state's borrowing limit.

Representative image

Kerala is seeking a relief package of Rs 2,000 crore from the Centre for Wayanad. "We hope that a positive decision will be taken instantly for granting a special package for the disaster-related rehabilitation of Wayanad," Balagopal stated in a memorandum submitted to Sitharaman.

Relief Package and Borrowing Limit

Balagopal expressed optimism that the Centre would make a favourable decision regarding the relief package. He mentioned this during a press conference, indicating that the central government is considering the request. The state hopes for an immediate positive response.

The minister also highlighted Kerala's contribution to national highway expansion. The state covered 25% of land acquisition costs, amounting to Rs 5,580 crore out of an approved Rs 6,769 crore. Balagopal requested this expenditure be classified as additional capital expenditure.

National Highway Development Costs

In his memorandum, Balagopal urged that Kerala should be permitted to borrow Rs 6,000 crore this financial year without conditions. He argued that the land acquisition costs should not reduce the state's overall borrowing limit but instead be considered as additional capital expenditure for highway development.

The state government is hopeful that these requests will be met favourably by the central government. The focus remains on securing necessary funds and adjustments to support Wayanad's recovery and infrastructure projects.