Wayanad : After state government raising the issue of central government not allotting funds towards Wayanad rehabilitation, the central government has finally sanctioned a Special Assistance (Loan) of Rs 529.50 crore for 16 projects in the landslide-affected areas of Chooralmala and Mundakkai in Wayanad. The funds allocated for the financial year 2024-25 must be utilized before March 31, 2025.
The Scheme for Special Assistance to States for Capital Investment (SASCI) is a program that provides interest-free loans to state governments for capital investment projects. It provides financial assistance to state governments in the form of interest-free loans for 50 years.
Approved projects and allocated funds towards Wayanad
1) Construction of public buildings for resettlement in townships of Nedumpala and Elstone estates – Rs 111.32 crore.
2) Construction or roads in the township – Rs 87.24 crore
3) River training of Punnappuzha river – Rs 65 crore
4) Fire and rescue station – Rs 21 crore
5) Renovation of Muttil–Meppadi road – Rs 60 crore
6) Construction of Chooralmala bridge – Rs 38 crore
7) Reconstruction of schools in Vellarmala and Mundakkai – Rs 12 crore
8) Construction of buildings for inpatients – Rs 15 crore
9) Construction of 110 kV substation in Elstone township – Rs 13.50 crore
10) Karapuzha water treatment plant – Rs 22.50 crore
11) Construction of six helipads, including approach roads – Rs 9 crore
12) D-block construction, including DDMA complex, at Kalpetta civil station – Rs 30 crore
13) Construction of multi-purpose shelters in the district – Rs 28 crore
14) Chooralmala–Attamala road – Rs 9 crore
15) Punchirimattom–Vanarani bridge and approach road – Rs 7 crore
16) GLPS Eighth Number bridge and approach road – Rs 7 crore
The release of funds to intermediate agencies without actual payment to the final recipient will not be treated as expenditure, according to a February 11 note by the Finance Ministry to the additional chief secretary of the finance department. The funds will be released to the state government in 10 working days.
Meanwhile, political parties expressed mixed reactions towards the delayed allocation of funds. While the state BJP unit welcomed the central government allocation, the Congress said that allocation of funds to Wayanad in the form of loans is unacceptable and said that the central government has been averse towards the plight of the thousands of families who became homeless following the massive landslides that hit Mundakkai and Chooral Mala in August 2024.
Meanwhile, the centre has warned that any diversion of funds from the approved projects will lead to a reduction in the loan amount. The state should also ensure that there is no duplication in funding of capital projects approved under the special assistance scheme.
Meanwhile, the CPM has not commented on the allocation of funds towards Wayanad.
The Kerala government had initially sought a special financial package of Rs 2,000 crore for Wayanad’s reconstruction, a request that is currently under judicial review. Against this backdrop, the Centre provided the funding as a capex loan.
