To revive economy, Kerala govt to initiate Rs 500-bn worth infra work soon

FM Isaac said the setback the state had due to GST was expected to be over in the coming days

The CPI(M) led LDF government in Kerala has lined up Rs 500 billion worth infrastructure work for the current financial year to revive the economy, badly hit by demonetisation and implementation of GST, State Finance Minister T M Thomas Isaac said today.

Of this amount, administrative sanction had already been accorded to works worth Rs 200 billion and approval for the remaining would also be given soon, he said.

Stating that Kerala as well as the nation was in the grip of a financial year crisis after the note ban and implementation of GST, Isaac claimed this state government initiative was one of the biggest packages ever announced in the country.

He said the financial year problem faced by the state would not affect the proposed investments.

Finance Minister Isaac was replying to a calling attention in the assembly on the need to solve the financial year crisis faced by many sectors in Kerala due to demonetisation and GST implementation.

Rejecting the opposition UDF's charge that the state government has not taken any steps to rejuvenate the economy, he announced that Rs 500 billion worth infrastructure work had been lined up for this financial year.

"Actual work for these projects will start this year itself", he said, adding this would definitely give a fillip to the state's financial status.

Isaac said the setback the state had due to GST was expected to be over in the coming days.

Demonetisation had badly affected the co-operative sector in the state, he said and alleged that the Centre attempted to 'destroy' the sector under the cover of the note ban.

As LDF was committed to safeguard this sector, the process of setting up the Kerala Bank was on, he said.

The government plans to set up the bank by merging district Co-operative banks with state Co-operative banks.

The three-tie society would become a two-tier system with the formation of Kerala Bank, he said.