Kerala borrowing limit exemption sought for national highway spending in meetings with Modi and Sitharaman

Kerala Chief Minister VD Satheesan said Centre-state issues were raised in meetings with Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman. Satheesan also asked for national highway project spending to be kept outside Kerala’s borrowing cap. Satheesan said Kerala is under financial strain and needs more room to raise funds.

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At a media briefing in the national capital, Satheesan said Kerala would publish a white paper on state finances. Satheesan said the government would also review blocks affecting central project funds. Satheesan mentioned issues like missing utility certificates or the lack of audited accounts. Satheesan said these hurdles would be examined.

Kerala borrowing limit and national highway spending

Satheesan said Kerala has spent Rs 5,580 crore on national highway projects. Satheesan said Kerala has been seeking an exemption for this amount. Satheesan linked the request to the state’s overall borrowing limit. That ceiling is 3.5 per cent of the Gross State Domestic Product GSDP.

Satheesan said 0.5 per cent of the borrowing limit is conditional. Satheesan said this part depends on use for the power sector. Satheesan said Kerala can now borrow only a smaller amount. Satheesan said this was why the Centre was asked to grant the exemption.

Centre-state issues and meetings with PM Modi

Satheesan said the meetings covered several Centre-state matters. Satheesan said these topics were discussed with Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman. Satheesan said the state expects a positive response from the Centre. Satheesan did not list every issue raised during the discussions.

Silverline project and land notification in Kerala

On the Silverline semi-high speed rail project, Satheesan said the Centre and the previous Kerala government had scrapped it. Satheesan said the current government only withdrew the notification used for land takeover. Satheesan said this change would ease hardship for landholders. Satheesan said it helped people unable to sell or buy land.

Satheesan, who took over as Chief Minister on May 18, linked the requests to Kerala’s financial crisis. Satheesan said the state is trying to clear pending issues that slow project support. Satheesan said the borrowing exemption could ease pressure on state funding. Satheesan said the government will place more details in the white paper.

With inputs from PTI