In light of the stringent conditions attached to the Rs 529.50 crore loan for the rehabilitation of landslide-affected areas in Wayanad, the Kerala government is set to request an extension from the Centre. The loan, which is earmarked for 16 rehabilitation projects, must be utilized by March 31, 2025. However, state officials have expressed concerns over the tight timeline.
Finance Minister K.N. Balagopal voiced criticism of the practical challenges posed by the loan’s conditions, particularly the requirement to forward the funds to implementing agencies within 10 working days. These stringent terms have added to the urgency, making it difficult for the state to meet the deadlines.
In addition to the extension request, the Kerala government plans to seek additional funds through a central grant to ensure that the rehabilitation efforts are comprehensive and effective.
The Centre had announced the interest-free loan on February 15, 2025, marking a crucial step toward the rehabilitation of Wayanad’s landslide-affected regions. However, with the clock ticking and tight conditions in place, the state is actively engaging with the Centre to address these concerns and ensure timely completion of the projects.
