Kerala’s ₹529 Crore Loan for Landslide Rehabilitation

The Government of India has approved a ₹529 crore interest-free loan for the rehabilitation of landslide-affected areas in Wayanad, Kerala. This decision follows devastating landslides in July 2024, which resulted in over 300 fatalities and destruction of infrastructure. The loan is aimed at restoring critical facilities such as roads, bridges, and water supply systems. However, the Kerala government faces tight spending deadlines and stringent conditions, leading to widespread criticism from both ruling and opposition parties.

Wayanad Landslides

In July 2024, Wayanad district experienced catastrophic landslides triggered by heavy rainfall. Villages like Mundakkai and Chooralmala were severely affected. The disaster resulted in extensive loss of life and property.

Loan Approval and Conditions

The Union Finance Ministry sanctioned ₹529 crore under the ‘Scheme for Special Assistance to States for Capital Investment 2024-25.’ Kerala must utilise the funds by March 31, 2025. If not, the state will incur interest at market rates. This short deadline has raised concerns about feasibility.

Criticism of the Central Government

Critics argue that the loan’s conditions are impractical and do not meet the urgent needs of the affected population. They claim that the Centre has shown negligence in providing adequate financial support and has ridiculed the state’s plight by offering a loan instead of a comprehensive rehabilitation package.

Future Steps for Rehabilitation

Despite the challenges, the Kerala government plans to commence rehabilitation work promptly. Initial projects include constructing a new township. The state aims to convey its practical difficulties to the Centre regarding the loan’s utilisation timeline.

Federal Relations and Financial Obligations

The ongoing situation marks tensions in Centre-State relations. Critics argue that the Centre’s actions undermine the federal structure of India. They assert that the government has a constitutional obligation to provide adequate support to disaster-hit states.

Month: Current Affairs - February, 2025

Category: Government Schemes Current Affairs