Wayanad rehabilitation: Kerala mulls options to bypass Centre's condition on Rs 529.50 cr loan

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Thiruvananthapuram: The state government is mulling over three options to bypass Centre’s condition for receiving interest-free loan of Rs 529.50 crore for rebuilding landslide-affected areas in Wayanad. The Centre has set a deadline of March 31 for the state to spend the funds. A meeting of top officials from finance, revenue, and disaster management has finalised the options.
The first option is to transfer the funds for each activity to the respective department, which would then allot it to implementing agencies as deposits before March 31. This could fulfill the Centre’s requirement of spending the money. The government believes there will be no delay in starting the work, as estimates for 16 projects are already completed. However, the Centre’s condition against parking funds with agencies and beneficiaries not receiving money could hinder this option.
The second option is to request the Centre for an extension of the deadline.
The third option is to seek legal recourse. With the high court already considering a case on a Rs 2,000-crore rehabilitation package, the state may approach the court over the Centre’s decision to offer a loan instead of a grant.
Grant, not loan: BJP
Meanwhile, BJP state president K Surendran stated that the Rs 529.50 crore loan, with a 50-year repayment period, is effectively a grant. "An interest-free loan with a 50-year repayment term is actually a grant. There is no need for concern for the Pinarayi Vijayan Government and the LDF," he said.