Thiruvananthapuram: The Union Government has granted permission for Kerala to borrow an additional ₹605 crore from the open market, raising the state's total borrowing limit for this year to ₹41,257 crore.

The borrowing limit was determined after deducting the loans taken last year by the Kerala Infrastructure Investment Fund Board (KIIFB) and the Welfare Pension Company. However, the state government maintains that Kerala remains eligible for further borrowing.

To press its case, Additional Chief Secretary (Finance) Dr A Jayathilak and other officials recently visited Delhi to hold discussions with the Union Finance Ministry. Following this, the Centre approved the additional ₹605 crore.