During a significant closed-door meeting with Prime Minister Narendra Modi in New Delhi on Friday, October 10, 2025, Kerala Chief Minister Pinarayi Vijayan made a fervent appeal for the Centre’s intervention. His aim was to secure the state’s financial stability and ensure the fulfillment of its ambitious developmental and social welfare goals.
Addressing reporters in Delhi after the meeting, Mr. Vijayan downplayed any perceived political rifts between the Central and Kerala governments. He characterized their interaction as “positive, healthy, hopeful, and optimistic,” highlighting a constructive dialogue.
The Chief Minister affirmed that both Kerala and the Centre are committed to maintaining “a constant mode of productive engagement” for the greater good of national development and public welfare. He acknowledged that while challenges may arise, their relationship would remain “open and robust.” Mr. Vijayan underscored Kerala’s unwavering commitment to presenting its needs to the Centre, expressing enduring optimism.
Among the key requests, Mr. Vijayan reiterated Kerala’s urgent demand for a one-time grant of ₹2,221.03 crore from the National Disaster Response Fund (NDRF). This crucial funding is intended for the rehabilitation of communities devastated by landslides in Mundakkai and Chooralmala, located in the Wayanad district.
He specifically appealed to Prime Minister Modi to categorize this assistance as a non-repayable, one-time endowment, rather than a loan, recognizing the severity of the disaster and the state’s recovery needs.
Chief Minister Vijayan also brought to the Prime Minister’s attention Kerala’s pressing financial challenges. He highlighted how the Centre’s decision to lower the state’s borrowing limit has severely restricted its capacity to raise essential funds for critical infrastructure projects.
A crucial point of discussion was his request to the Centre to exclude off-Budget borrowings, particularly those made by special purpose vehicles like the Kerala Infrastructure Investment Fund Board (KIIFB), from being counted as part of Kerala’s total public debt. This change is vital to prevent further handicapping the state’s ability to finance crucial infrastructure, especially in the health and education sectors. Furthermore, he urged PM Modi to establish Kerala’s borrowing limit at 0.5% of its Gross State Domestic Product (GSDP).
Mr. Vijayan pointed out that the Central government had also reduced various financial allocations and significantly cut Kerala’s share from the divisible pool of taxes, compounding the state’s fiscal strain.
Additionally, Kerala formally requested an exemption from bearing 25% of the land acquisition costs for national highway development projects within the state, seeking further financial relief.
Kerala Renews Call for AIIMS in Kozhikode
During the discussions, Mr. Vijayan reiterated Kerala’s long-standing demand for the establishment of an All India Institute of Medical Sciences (AIIMS) at Kinaloor in Kozhikode, where land has already been designated by the state government for this purpose.
He also informed Prime Minister Modi about Kerala’s rapid trajectory towards complete urbanization, emphasizing the urgent need for future-proof urban planning. To address this, he stressed the necessity of establishing a National School of Planning and Architecture within the state.
The Chief Minister also reminded PM Modi of outstanding dues, noting that the Centre owed Kerala ₹221.5 crore for paddy procurement subsidies and an additional ₹254 crore for “transportation charges.”
Concluding his remarks, Mr. Vijayan articulated that Kerala’s priorities—including relief efforts, upholding fiscal federalism, ensuring health and educational equality, promoting food security, and fostering sustainable urban development—are entirely aligned with India’s overarching national objectives.