Kerala eyes to cash in on Centre's favourable stance, seeks to borrow another ₹6,000 cr
New Delhi: Following the central government's approval for Kerala to take an additional loan of ₹12,000 crore for this financial year, the state is now seeking permission to borrow an additional ₹6,000 crore for reforms in the energy sector. The state's request for permission to borrow ₹6,000 crore is currently under active consideration by the Ministry of Finance. The process for borrowing will proceed by next Tuesday.
It was after the meeting in Delhi between Governor Rajendra Arlekar, Chief Minister Pinarayi Vijayan, and Union Finance Minister Nirmala Sitharaman that the central government granted Kerala permission to borrow the additional funds. This stand of the Ministry of Finance, which acknowledges the state's demands, brings relief to Kerala as the financial year comes to a close.
Post-meeting, steps to be taken regarding files related to Kerala, which were under consideration by the Union Finance Ministry located at North Block, have been expedited. After Kerala approached the Supreme Court regarding the debt ceiling issue, many of the state's demands were treated with indifference and were allegedly delayed. However, sources related to the Ministry have pointed out that there has been a marked change in the Ministry's stance towards Kerala after the meeting between the CM and FM.
At the end of the previous financial year, Kerala was involved in legal battles against the Union Finance Ministry. The petition filed by the state government was referred to a constitutional bench by the Supreme Court. Senior advocate Kapil Sibal, on behalf of the state government, had earlier requested an urgent hearing of the petition before a bench led by Chief Justice Sanjiv Khanna.
The Principal Secretary to the Chief Minister, Dr. K.M. Abraham, had travelled to Delhi to meet with Kapil Sibal. However, with the changed circumstances, the state's legal battle against the Union Finance Ministry might now proceed at a slower pace.
Brittas and Premachandran are excellent MPs: Nirmala Sitharaman
Finance Minister Nirmala Sitharaman expressed the view that some MPs from Kerala have been presenting the state's demands effectively in Parliament. She acknowledged the excellent work of Rajya Sabha member John Brittas and Lok Sabha member N.K. Premachandran in Parliament. The Governor brought to the attention of the Union Finance Minister the recent meeting held with MPs from Kerala.