Flood hit Kerala seeks hike in borrowing limit to 4.5% to raise Rs 10,500 crore

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Flood hit Kerala seeks hike in borrowing limit to 4.5% to raise Rs 10,500 crore

Battling its worst flood in nearly a century, Kerala is planning to raise an additional Rs 10,500 crore debt for rehabilitation and rebuilding. To achieve this, the Chief Minister Pinarayi Vijayan today said that his government will ask Centre to raise the ceiling on borrowing for the state to 4.5 per cent of the GDP. The borrowing limit is currently capped at 3 per cent.

Calling for mobilisation of resources in a large way, Kerala CM said, “Cabinet decided to submit to the Central Govt a comprehensive plan that will enable the rehabilitation of the affected people and the rebuilding of Kerala. Our aim is not merely a restoration of the state to pre-flood times but the creation of a new Kerala.”

Flood hit Kerala seeks hike in borrowing limit to 4.5% to raise Rs 10,500 crore

With several roads and highways facing the brunt of flooding, Kerala CM said the state needs a special package for central schemes. “The State will demand Centre for a Rs 2,600 crore MGNREGA special package,” the chief minister said.

The state will also request NABARD for a special scheme to implement long-term projects for infrastructure development in agriculture, irrigation and associated areas and social sectors, tweeted the chief minister’s official Twitter handle.

To facilitate rehabilitation efforts, the CM said he will request the Hon’ble Governor to call a special session of the assembly on August 30 to discuss on relief, rehabilitation and reconstruction.

The Kerala government also announced a moratorium for bank loans in the flood affected areas, which will be applicable to both commercial and cooperative banks.

source: businesstoday