Satheesan meets PM & FM; discusses Centre-state issues

Thiruvananthapuram/Delhi: Chief minister V D Satheesan called on Prime Minister Narendra Modi in the capital on Tuesday. This was Satheesan’s first meeting with the PM after assuming office following the Congress-led UDF’s victory in the assembly polls.

“Chief Minister of Keralam, Shri @vdsatheesan met Prime Minister @narendramodi,” the Prime Minister’s Office said in a post on X. The CM presented Modi with a statuette of a Kathakali dancer. Satheesan also met Union finance minister Nirmala Sitharaman.

After the meetings, Satheesan said the state was facing a financial crisis and state govt would release a white paper on the state’s financial situation in the first week of June.

The CM said the state sought higher central allocations and support for major development projects. He said issues concerning Centre-state relations and financial matters were discussed in the meetings, with both sides exchanging suggestions on project implementation and fiscal management.

The CM said Kerala requested that the Rs 5,580 crore spent on land acquisition linked to national highway development be excluded from borrowing limits. The state also sought relaxation in borrowing restrictions and efforts would continue to secure pending central funds and allocations under various schemes. Technical issues raised by the Centre regarding the implementation of projects would also be examined, he said.

On the future of KIIFB, Satheesan said a report has been sought on the institution’s financial liabilities and a decision regarding its future borrowing and continuation would be taken after an assessment by the board.

Referring to the Mahatma Gandhi Employment Guarantee Scheme, he said the proposal requiring states to bear 40% of the expenditure would impose an additional financial burden on Kerala.

Satheesan said remittances from Gulf countries remain the backbone of the state’s economy and that Iran conflict had affected the inflow of funds. Rising crude oil prices would have a greater impact on Kerala as a consumer state dependent on supplies transported from distant regions, he added. The CM said the Centre was informed about this peculiar situation faced by the state.

The CM further stated that the cabinet would examine the legal aspects related to the PM SHRI scheme.