Kerala seeks Rs 24,000 cr special financial package from Centre

Kerala has sought a Rs 24,000 crore special financial package from the Centre, Minister of State for Finance Pankaj Chaudhary said in a written reply in Rajya Sabha on Tuesday. He also said that Andhra Pradesh has sought Rs 15,000 crore for developing state capital Amravati and Rs 17,144.06 crore for various sectors, including Polavaram irrigation projects.

In addition, he said Bihar has also requested for about Rs 785 crore for various projects.

"A letter dated 27th June 2024 was received from the Finance Minister of Kerala in which the State Government of Kerala has requested for a special financial package of Rs 24,000 crore for the state," the minister said.


In addition, a request for a special capital investment support of Rs 5,000 crore was also made for developing the Vizhinjam Port region in Kerala.

Chaudhary further said request has also been received from Andhra Pradesh for financial support for various sectors, including Polavaram irrigation projects (Rs 17,144.06 crore) and assistance for development of capital city of Amravati (Rs 15,000 crore), incentives for industrial development, infrastructure investment etc.

Bihar has also requested for special financial assistance for infrastructure projects, enhancement of borrowing ceiling, funds for social welfare (Rs 375.35 crore), airports, health infrastructure, education, sports (Rs 410.35 crore), water resource development and rural development etc, Chaudhary said.

The minister further said the Centre provides substantial resources to states, including Kerala in the form of Finance Commission Recommended Grants, Central Sector Schemes, Centrally Sponsored Schemes, Special Assistance (Grant) schemes for Special Assistance to States for Capital Investment, additional borrowing permission etc.

In addition, Department of Economic Affairs (DEA) has approved Viability Gap Funding (VGF) grant of Rs 817.80 crore for the development of Vizhinjam International Multipurpose Seaport Terminal Project under the VGF Scheme of DEA.

In the 2024-25 Budget speech, Finance Minister Nirmala Sitharaman had said the Centre will facilitate special financial support through multilateral development agencies for building the capital of Andhra Pradesh.

In the current financial year, Rs 15,000 crore will be arranged, with additional amounts in future years.