Kerala to request Centre for extension on ₹529-crore loan for Wayanad rehabilitation

Kerala Finance Minister seeks extension for ₹529.5 crore loan allocated for Wayanad rehabilitation, facing criticism over time limit.

Kerala Finance Minister K.N. Balagopal on Tuesday (February 18, 2025) said the State government would approach the Centre to request an extension for utilising its conditional loan of ₹529.5 crore allocated for Wayanad rehabilitation.

The State government had already termed the Union government's stipulation to utilise the amount by March 31, as a "huge practical problem."

Addressing reporters here, the Minister said the Centre's directive to spend the loan amount within one and half months has triggered widespread criticism. It is normal to seek an extension in such a circumstance, he said.

Mr. Balagopal further said the State government is making all efforts to speed up necessary procedures and a high-level meeting has already been convened in this regard.

Chief Minister Pinarayi Vijayan is also making direct interventions to augment things, he said.

“We are making efforts to complete requisite things on one side. We will also try to get an extension of time (to utilise the loan amount) on the other side,” he said.

Stressing that the Union government has provided the amount not as a grant but as a loan with conditions, the Finance Minister said there are restrictions to spending the amount.