Kerala CM VD Satheesan meets PM Modi; seeks central support for state’s mega projects

NEW DELHI: Kerala Chief Minister V.D. Satheesan on Tuesday met with Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman to seek the Centre’s backing for the state’s flagship development projects. Speaking to reporters in the national capital following the high-level meetings, the Chief Minister described the discussions as "detailed and productive," noting that the Union government has assured a favourable approach toward Kerala's developmental priorities.
In a significant policy announcement, Chief Minister Satheesan revealed that his newly formed government will publish a comprehensive white paper on Kerala's financial status in the first week of June. The document is expected to outline the current economic health of the state and guide fiscal corrections.
Addressing long-standing Centre-State financial friction, Satheesan raised the issue of borrowing ceilings and the funding of joint welfare programs. "We have requested the Centre to exclude expenditures allocated for National Highway development from the state's net borrowing ceiling," he said. The Chief Minister also highlighted the shifting fiscal burden of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), pointing out that while the Centre previously funded the program entirely, the state is now required to bear 40% of the cost—a liability that weighs heavily on the new administration.
Furthermore, the Chief Minister clarified his government's stance on the controversial SilverLine semi-high-speed rail project. He emphasised that the decision to shelve the project was made by the preceding administration, yet the land acquisition notifications had remained in place, freezing property transactions for ordinary citizens.
"Ordinary landowners were unable to sell or utilise their property due to the pending notification. We have officially withdrawn it to relieve the public," Satheesan explained.
Among other administrative decisions, the Chief Minister stated that the legalities surrounding the PM SHRI schools scheme are under review and were discussed in the recent cabinet meeting. Additionally, the government has sought a detailed report on the outstanding liabilities of the Kerala Infrastructure Investment Fund Board (KIIFB) to assess the state's off-budget borrowings.