Kerala: Centre sanctions Rs 529.50 cr interest-free loan for Wayanad rehabilitation

Thiruvananthapuram: The central government has approved an interest-free loan of Rs 529.50 crore for rehabilitation efforts in Wayanad, covering 16 projects, including township development. The loan, which must be repaid over 50 years, was formally communicated to the Additional Chief Secretary of the Finance Department.

The allocated funds will be used for rebuilding essential public infrastructure such as roads, bridges, schools, and government buildings in the resettlement townships for disaster-affected people. The government has mandated that the funds be utilized by March 31. However, finance department officials have raised concerns, arguing that providing funds so late in the financial year and expecting immediate expenditure is impractical.

Wayanad Gets ₹750 Crore in Kerala Budget to Boost Landslide Relief | Watch

Kerala Finance Minister K. N. Balagopal earlier allocated Rs 750 crore for the rehabilitation of those affected by the 2024 Wayanad landslide.

During his budget speech, Balagopal described the Mundakkai-Chooralmala landslides as a catastrophic disaster. The tragedy, which occurred on July 30, 2024, claimed 254 lives, while 44 people remain missing. Additionally, 2,007 houses were destroyed, and thousands of residents lost their means of livelihood.

The total estimated loss from the disaster stands at Rs 1,202 crore. Balagopal further stated that Rs 2,201 crore would be required for comprehensive rehabilitation and rebuilding efforts.