Thiruvananthapuram: A major dispute has erupted between Kerala and the Centre over the branding of schemes funded by the latter, leading to a standstill in the implementation of several central schemes in the state. For example, the Centre has frozen the funds allocated to Kerala for 2023-24 under the National Health Mission (NHM), which includes incentives for ASHA workers, despite the state officially informing the Centre that the branding of health centres had been completed.

Union Health Minister J P Nadda informed Parliament on Tuesday that the amount of Rs 636.88 crore was withheld because the state had not submitted the Utilisation Certificate (UC). Union Minister from Kerala, Suresh Gopi, also told ASHA workers protesting in front of the Secretariat in Thiruvananthapuram that the state had failed to submit the UC. The state government later released the UC it had sent to the Centre, following which allegations were raised that the Centre was withholding the funds over branding.

Since 2018, the Centre has insisted that Kerala brand over 6,000 public and family health centres. The condition was to display boards reading "Ayushman Bharat Health and Wellness Centre" in front of these institutions. In January 2023, the Centre announced that the state would be denied NHM funds if branding was not completed. Initially, the state argued that the existing Malayalam names of the health centres should not be changed, a sentiment shared by other states such as Tamil Nadu, Andhra Pradesh, Punjab, and West Bengal.

In March 2023, the Centre sanctioned Rs 189.14 crore, but in June, the also informed state that the remaining funds would not be released without branding. Faced with severe pressure from Centre, Kerala began branding in July 2023. However, in February 2024, the Centre directed the state to implement a new brand name, which Kerala objected to. Despite this dispute, the state ultimately complied in July after the Centre took a firm stand that it would not release funds without the new branding.

Centre’s conditions
While Kerala accuses the Centre of withholding funds, the Union Government claims that the state is not cooperating. The Centre’s main condition for releasing funds is that the state display the name and logo of the Union Government for each programme. This dispute has led to delays in implementing several key initiatives, including the Pradhan Mantri Awas Yojana (PMAY) housing scheme, the Samagra Shiksha project, the PM Shri School project, and others. The Centre has delayed processing applications for PMAY and withheld funds for the Samagra Siksha program.

The Centre has also not responded to Kerala’s plea to waive the branding requirement in the housing scheme for nearly a year and a half. Similarly, it has not agreed to concessions on branding for the inclusion of 304 schools in the PM Shri program. Additionally, the Centre has not sanctioned grants amounting to Rs 687 crore for local bodies, allegedly due to branding issues.

Kerala is implementing the Life program alongside the PMAY scheme and has already spent Rs 18,288.27 crore on it. The Centre allocates Rs 72,000 for each house in villages and Rs 1.5 lakh in towns under the Life PMAY. Of the 5,44,109 houses allotted by Kerala under Life, the Centre has provided aid for 1,17,409 houses. Kerala has allocated funds without branding; however, the Centre insists that the logo of the scheme be displayed in front of the houses, which Kerala believes would undermine the dignity of the residents.

Both Kerala and Tamil Nadu have opted not to participate in the PM Shri programme, which offers Rs 1 crore annually to two government schools in each block over five years. These states are also required to raise Rs 40 lakh out of the Rs 1 crore, and implement the National Education Policy (NEP) in these schools. The Centre did not allocate Rs 845 crore to Kerala under the Samagra Siksha programme, and the state alleges that this decision is due to its reluctance to join the PM Shri scheme.
(With inputs from Jojy Simon & Manoj Kadambad.)