CM Vijayan, Sitharaman meet signals LDF-Centre thaw amid fund crunch
Kerala CM Pinarayi Vijayan met Union Finance Minister Nirmala Sitharaman over breakfast in Delhi, signaling a shift in the state’s stance toward the Centre. This move comes amid Kerala’s ongoing financial struggles and its demands for increased borrowing limits, pending central funds, and aid for Wayanad landslide victims.
Vijayan, aiming for a third term, appears to be easing tensions with the BJP-led central government. His Cabinet had earlier protested in Delhi over financial discrimination claims. However, this meeting suggests a strategic shift as the LDF government seeks economic relief.
The discussion covered Kerala’s demand for Rs 817.80 crore in Viability Gap Funding (VGF) for the Vizhinjam seaport and a relaxation on conditions attached to a recent Rs 529.50 crore loan. Vijayan also pushed for clarity on funding for national highway expansion and the semi-high-speed railway project.
Sitharaman assured the CM that Kerala would receive its rightful share of funds and promised further discussions with finance ministry officials. This meeting comes as Vijayan also proposes private investment in loss-making public sector units, a significant policy shift for the Left.
