The Kerala government has sought the Union government’s support to make key projects in the State a reality, Chief Minister V.D. Satheesan has said.

Speaking to the media after meeting Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman in New Delhi on Tuesday, Mr. Satheesan said the government would first release a White Paper on Kerala’s financial situation by the first week of June. Following this, the government would prioritise projects to be undertaken and earmark funds for them in the upcoming Budget. This would be followed by meetings with various Central ministries to expedite the projects’ implementation, he said.

He declined to comment on the specific projects discussed with the Centre during the meeting, terming it a courtesy call following his assumption of Chief Minister’s office.

Borrowing limit

He also expressed confidence that the Centre would adopt a favourable stance on the financial issues affecting Centre-State relations. During the meeting, the Chief Minister requested the Prime Minister to exclude from the State’s borrowing limit its share of around ₹5,600 crore spent on land acquisition for national highways in the State.

The borrowing limit is currently 3.5% of the Gross State Domestic Product (GSDP), of which 0.5% has been earmarked for implementing reforms in the power sector. The Chief Minister pointed out that liabilities incurred by the Kerala Infrastructure Investment Fund Board (KIIFB) and the Pension Fund are also included in this limit, which has also seriously affected the State’s borrowing limit.

Mr. Satheesan said a report on KIIFB’s liabilities had been sought and the board’s current position was being examined. More details would be shared with the Centre after the release of the White Paper. The ongoing West Asian crisis, including fluctuations in crude oil prices and an anticipated shortfall in NRI remittances, could have an impact on Kerala’s economy, and the issue was raised during the meeting, he said.

Munambam row

The Chief Minister also asserted that no one would be evicted from the contentious land at Munambam in Ernakulam. He said that political appointments to the Kerala State Waqf Board had compounded the problem since the land concerned was registered in the Unified Waqf Management, Empowerment, Efficiency and Development (UMEED) portal before the new government assumed office.

He said a mechanism would be established to enable residents to pay land tax as soon as possible and they would be granted full rights over the land. The circumstances leading to the registration of the land on the portal would be examined.

The Chief Minister clarified that disciplinary action initiated against police personnel involved in the controversial ‘rescue act’ during the 2023 Navakerala Sadas in Alappuzha would be followed by further action based on the report of the Special Investigation Team. He added that the move was not politically motivated.