Thiruvananthapuram: In addition to denying the Kerala Government permission to raise funds by availing loans via the Kerala Infrastructure Investment Fund Board (KIIFB) and other public sector institutions, the Centre has now decided not to disburse its share of UGC salary arrears totalling Rs 750 crores. The amount is cruicial for state to pay arrears of College and University teachers.

In a letter to Kerala's Higher Education Department, the Union Education Ministry is reported to have cited the delay in filing a report on the UGC arrears as the reason for not allocating the funds to the state. 

As per revisions under the 7th Pay Commission, there have been total arrears totalling Rs 1,500 crores between January 1, 2016, and March 31, 2019. In 2019, the Kerala Government issued an order allowing the UGC pay scales recommended by the Pay Commission to teachers of state varsities and colleges. However, the state failed to disburse wage arrears and pension benefits to the teachers, including those who retired between January 2016 and July 2019.

The amount is supposed to be borne by the Centre and the respective state governments. The decision by the Centre not to allocate its part of Rs 750 crores is a tremendous blow to the state, which is already struggling with financial constraints.

Kerala is eligible for additional loans of Rs 600 crores this fiscal year. The state presented a report detailing the requirement in November. However, the Centre has yet to approve the state's request. 

Earlier, the Centre approved Rs 1,925 crores out of Rs 2,088.50 crores projected by the state for raising capital investment. However, the Centre froze the funds, saying that the state has failed in branding the projects funded by them. 

Following this, the state government agreed to brand all the projects except the LIFE Housing Mission. However, the union government has not responded positively yet.

“We had submitted the reports pertaining to UGC arrears on time. We also held discussions with the Union Education Minister regarding the matter twice. But still, we are denied funds. The concern will be raised in the Supreme Court,” said Higher Education Minister R. Bindu.