Six months after the devastating landslides in Wayanad, which tragically claimed nearly 300 lives, the Indian government has stepped in with a significant loan amount. Kerala has been granted a long-term, interest-free loan of Rs 529.50 crore to help rebuild the region.
The loan is meant to fund 16 rehabilitation projects, including the construction of public buildings in new townships, and the reconstruction of key infrastructure like the Chooralmala bridge and schools that were washed away in the disaster.
However, there’s a catch. The funds come with a strict deadline—everything must be spent by March 31, 2025. This deadline has sparked concern from Kerala’s Finance Minister, K N Balagopal, who said that meeting such a timeline would be challenging.
“We are still consulting on how best to use the funds,” he said, expressing doubts about whether the state can realistically meet the deadline.
Additionally, the funds will only count as expenditure when they’re directly allocated to victims, meaning payments to intermediaries won’t be counted.
This loan is part of the Union government’s Scheme for Special Assistance to States for Capital Investment, and the state government had initially proposed projects worth Rs 535 crore. There’s also still uncertainty surrounding Kerala’s request for a Rs 2,000 crore special grant for more extensive rebuilding efforts. The request is currently under review by the Kerala High Court.
“The state is still hopeful of getting a grant. We decided to go for a loan as we could not wait for the grant. If the loan amount is deducted from the grant, it would be good,” says the minister.