Ample funds, investment nod: Kerala's hopes from Centre

PM Modi inaugurates two-lane Kollam bypass
Prime Minister Narendra Modi and Kerala Chief Minister Pinarayi Vijayan at the inaugural ceremony of Kollam bypass. Photo: R S Gopan

New Delhi: Even though he missed the swearing-in ceremony of the new National Democratic Alliance government, Kerala Chief Minister Pinarayi Vijayan was one of the first chief ministers to congratulate Prime Minister Narendra Modi for his second term at the Centre.

The state government expects a similar cordial response from the Centre, especially since the state is staring at several development hurdles.

The relationship between the state and the first Modi government had run into many obstacles. The state had taken on Centre over various projects such as the handing over of the Thiruvananthapuram airport operations to a private company.

It remains to be seen how the state government would approach the new government at the Centre.

Rebuilding Kerala

Around Rs 32,000 crore is needed to rebuild Kerala that was ravaged by one of the worst floods in a century in August 2018. Not just central funds and projects, the new government would have to take a more lenient approach if the state has to garner the required funds. The final approval for taking loans from the World Bank and German Development Bank KfW has to be given by the central government. Talks on the first phase of loans were already held in Delhi.

With the new government coming to power at the Centre, new projects too would be envisioned. Kerala would have to make extra effort to benefit from these projects. The state also needs the Centre to continue investing in some of the high-end projects.

Foreign investments

Though the state benefitted from the Chief Minister's efforts to improve ties with foreign agencies and countries, if the investments have to reach Kerala shores, the Centre too has to give the nod. There continues to be a bar on accepting the Rs 700-crore aid offered by the UAE. It is crucial for Kerala that this situation changes.

The Centre's approach on the development of railways and national highways is also of paramount importance.

The first Modi government had removed the Thiruvananthapuram-Kasaragod national highway expansion from the high priority list I earlier this month, triggering a controversy. The decision was later revoked due to political pressure. The state needs Centre's support to complete the Rs 26,973-crore project.

The Kanjikode coach factory, and the development of rail routes including Thalassery-Mysuru, Angamaly-Erumely and Nilambur-Najancode are depended on the central government.

Other projects that await central nod are airport at Sabarimala, Thiruvananthapuram-Kasaragod high-speed rail, light metro projects in Thiruvananthapuram and Kozhikode. Kerala would have to be persistent in its demand for the setting up of All India Institutes of Medical Sciences (AIIMS) in the state.

The state government had also sought Rs 483 crore for endosulfan package and Rs 128 crore for trauma care project.

The first Modi government allotted only one-third of the funds Kerala had sought for a comprehensive education project. Taking this into consideration, Kerala hopes the Centre would allocate Rs 2,000 crore for the development of education sector.

Other demands from the state include policy to aid rubber farmers, and ensuring the maximum benefits of setting up a fisheries ministry.

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