Kerala   

LDF nod for talks with World Bank

THIRUVANANTHAPURAM: The State committee of the ruling Left Democratic Front (LDF) has given the green signal to the State government to hold talks with World Bank representatives on taking a Rs.500-crore loan to strengthen local bodies.

Briefing reporters after an LDF State panel meeting here on Saturday, Front convener Vaikom Viswan said the government had been asked to examine the conditions attached to the loan offer and take an appropriate decision at the level of the State Cabinet. The loan carries a 0.25 per cent interest and is repayable in 40 years. The loan amount could ultimately rise to Rs.1,000 crores, he added.

Mr. Viswan said the loan was sought to be secured on account of the low interest burden and the Central government’s policy that State governments must explore availability of funds from other sources to support local self-government institutions. What the decision implies is a shift from the earlier position that there should be no such discussion with the World Bank, he said.

The LDF convener said the Front State committee had also decided to permit the government to sign the State Support Agreement with the Centre for upgrading and maintenance of National Highways within the State borders. The State government had so far refused to sign the agreement taking exception to the norms that permitted levying of heavy toll on roads constructed using Central funds under the agreement.

However, a review of the stand has become necessary in view of the heavy damage sustained by roads and public outcry for repair and maintenance of the roads regardless of the costs.

The Centre, he pointed out, had withheld assistance for road repair and maintenance to Kerala citing the State’s refusal to sign the agreement. Kerala is the only State which has not fallen in line with the Central directive.

This could not continue and efforts will have to be made to construct and maintain roads on Build-Operate-Transfer (BOT) basis as is being insisted by the Central government.

The LDF panel, he said, viewed with serious concern the import of palmolein through the Kochi port despite the Central government barring its import. The Central decision has lost its value following a stay granted by the Kerala High Court.

The LDF committee is of the view that the Central government must go in appeal against the High Court decision and the State government must widen the scope of its copra procurement programme and make optimal efforts for manufacture and marketing of coconut-based products.

Mr. Viswan said the LDF committee had also adopted a resolution condemning the rising tide of Bharatiya Janata Party-Rashtriya Swayamsevak Sangh sponsored violence in different parts of the State and calling upon all democratic sections to come out against the BJP-RSS combine’s campaign of violence.

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