THIRVANANTHAPURAM: The Centre has approved an interest-free capital investment loan of Rs 529.5 crore for rehabilitation and reconstruction efforts in landslide-hit Wayanad under a special scheme for providing financial assistance to states. The loan, with a repayment period of 50 years, is earmarked for 16 projects, including township development, road infrastructure and construction of public buildings. It was was formally communicated to state govt on February 11.
The Centre has sought detailed expenditure estimates by March as the loan is sanctioned for the 2024-25 financial year. It also specified that the allocated funds should be fully utilised before March 31.
State finance minister K N Balagopal said the tight deadline would be a problem. “This is a loan, not a grant, and must be used before March 31. It’s an impractical solution as the funds are meant for infrastructure projects like roads,” he said, adding that the issue would be raised with the Centre.
The Centre has warned that any diversion of funds could result in the reduction or withdrawal of the sanctioned amount. The disbursal and utilisation of the loan will be closely monitored to ensure compliance with the outlined guidelines, it said.
The landslides that occurred in Punchirimattam, Mundakkai and Chooralmala villages in Meppadi panchayat of Wayanad on July 30 last year had claimed 298 lives (including 44 people reported missing), besides causing widespread destruction. State govt had sought a special package of Rs 2,000 crore for rehabilitation, but the request remains under judicial review.