Thiruvananthapuram: Kerala’s new chief minister, Pinarayi Vijayan whose Left Democratic Front government has inherited an “alarming” financial situation from the preceding United Democratic Front, is keen to mobilise funds from the large non-resident Indian community.
Vijayan informed the state assembly on Thursday that NRI investments would be mobilised for infrastructure development by offering an interest rate higher than the basic bank rate.
The chief minister said talks would be held with NRIs regarding this, and that investments could be made in areas in which the NRIs had an interest. He did not specify the rate of interest NRIs would be paid.
The state is pressed for funds given that the LDF government is keen on realising a number of infrastructure projects, including the four-laning of National Highways. The chief minister had asserted last month that Kerala would not make a compromise on the width of the highways and would go for 45 metre-wide highways.
State finance minister, T.M. Thomas Isaac informed the House that the state faced an “alarming” financial situation. The finance minister tabled a white paper in the assembly on the financial status, which pointed out that the state had immediate liabilities amounting to Rs63 billion (Dh3.42 billion) and unbudgeted short-term liabilities of Rs43 billion.
The Opposition, however, dismissed Isaac’s white paper on the state finances as a “political document”. Former finance minister K.M. Mani who had to resign in the wake of corruption allegations against him, said the white paper presented by Isaac was “intended to show the development measures undertaken by the UDF government in bad light”.
