Kerala governor's breakfast diplomacy helps state

Kerala Governor Rajendra Arlekar played an unexpected role in bridging the gap between the central and state governments, facilitating an increase in Kerala's borrowing limit by Rs 6,000 crore. The CPM-led Kerala government has had a tense relationship with the NDA government, particularly over the release of funds. Amidst a cash crunch, Kerala needed to borrow to meet its financial requirements, but the central government had set a Net Borrowing Ceiling (NBC) for states.

In a surprising move, Arlekar hosted a dinner for Kerala MPs in Delhi and accompanied Chief Minister Pinarayi Vijayan for a breakfast meeting with Union Finance Minister Nirmala Sitharaman. The fruitful interaction led to the approval of the increased borrowing limit the following day. Vijayan, who posted pictures of the meeting on social media, described the event as a "warm interaction."

KV Thomas, who was present at the breakfast meeting, told ET, "Oh yes; the governor said that he would accompany us for the meeting and together we will work for the development of Kerala. It is something new that has happened and was very nice on his part." However, Thomas also noted that while the increase in borrowing limit was a step forward, the state still faces time constraints and needs more funds for infrastructure projects.