₹685 cr NABARD fund lie unused in Kerala as departments miss deadlines

Thiruvananthapuram: Even as the state government continues to blame the Centre for cuts in fund allocations, delays across various departments have left ₹685 crore — out of the ₹900 crore sanctioned by the National Bank for Agriculture and Rural Development (NABARD) — unutilised.

Warning that the unclaimed funds could lapse if not drawn immediately, NABARD’s Chief General Manager has written to the Finance Department. In response, Additional Chief Secretary (Finance) KR Jyothilal has directed department heads to urgently complete the required formalities to access the funds.

However, with many government projects moving at a sluggish pace, indications are that only a fraction of the remaining ₹685 crore can be availed in the coming days. NABARD had sanctioned funds for a wide range of initiatives, including the creation of Rapid Response Units under the Forest Department, infrastructure development, distribution of solar pumps under the Agriculture Department, irrigation and canal modernisation works, restoration of paddy fields and ponds, schemes under the Social Justice Department, establishment of smart Krishi Bhavans in 12 districts, and projects aimed at mitigating human–wildlife conflict.

Funds were also approved for construction, including bridges and agricultural produce godowns. NABARD had further expressed willingness to finance waste management projects under the Local Self-Government Department. Bills for all these projects were to be submitted by September 21, 2025. Of the ₹900 crore sanctioned, departments have so far submitted bills worth only ₹215 crore.

Meanwhile, some departments have not even initiated the approved projects. Despite repeated reminders, the failure to submit bills prompted NABARD to issue a letter to the government. Departments have attributed the delay to engagements related to the recently concluded local body elections.