THIRUVANANTHAPURAM: The central government has sanctioned an interest-free capital investment loan of ₹529.5 crore to support rehabilitation and reconstruction efforts in landslide-affected Wayanad. The loan, granted under a special financial assistance scheme for states, has a 50-year repayment period and is allocated for 16 projects, including township development, road infrastructure, and public building construction.
The approval was formally communicated to the Kerala government on February 11. However, the Centre has mandated that the funds must be fully utilised by March 31, as the loan is sanctioned for the 2024-25 financial year. Additionally, the state has been asked to provide detailed expenditure estimates by March.
State Finance Minister K.N. Balagopal expressed concerns over the tight deadline, calling it impractical. “This is a loan, not a grant, and we are required to use it before March 31. Infrastructure projects like roads cannot be completed within such a short timeframe,” he said, adding that the issue would be discussed with the Centre.
The Centre has also warned that any diversion of funds could lead to the reduction or withdrawal of the sanctioned amount. It has emphasized that the loan’s disbursal and utilisation will be closely monitored to ensure compliance with the prescribed guidelines.
The devastating landslides that struck Punchirimattam, Mundakkai, and Chooralmala villages in Meppadi panchayat on July 30 last year claimed 298 lives, including 44 individuals reported missing, and caused extensive damage. While the Kerala government had requested a ₹2,000 crore special rehabilitation package, the proposal remains under judicial review.
