Ahead of budget, Kerala CM V.D. Satheesan seeks support of banking sector for flagship programmes

Ahead of his first Budget, Chief Minister V.D. Satheesan on Monday sought the support of the banking sector in Kerala for the flagship programmes of the United Democratic Front (UDF) government, including the Indira Guarantees and the “dream projects”.

Addressing a State-level review meeting of the State Level Bankers’ Committee (SLBC) here — his first after taking over as Chief Minister — Mr. Satheesan, who also handles the finance portfolio, urged banks to become ‘’development partners” of the government for taking forward programmes aimed at stimulating the economy and creating a ‘Puthuyuga Keralam’ (a new age Kerala).

Stating the government’s intention to start at least 10,000 micro, small and medium enterprises (MSME) in Kerala, Mr. Satheesan sought enhanced credit support for the manufacturing sector and MSME, food processing and agro-based industries, logistics, tourism and renewable energy and start-ups. The government is also eyeing more investment in the health and education sectors, he said. Kerala, he said, stands at a “defining moment” in its development journey and the success of the UDF government’s mission to create a ‘new age Kerala’ will significantly depend on the partnership between the government and the banking sector.

Dream proposals

He outlined the government’s “dream proposals” to harness the full potential of the State’s 600-km coastline and also transform the State into an aviation hub of south Asia. For coastal development, the government plans to develop coastal shipping networks in the first phase and cruise shipping in the second. In the third stage, all of these will be integrated with the development of the canals, rivers and waterbodies in the interior areas. “I call upon the banking sector to actively partner with the government in implementing these transformative commitments through inclusive banking, accessible credit and innovative financial products,” he said.

Further, the Chief Minister pointed to a need to assess how the phenomenon of ‘reverse remittance’ — the outflow of capital — is impacting the State’s economy. This is important for developing strategies to stimulate the economy and stabilise it. The banking sector in the State, Mr. Satheesan said, has crossed an important milestone with the total business exceeding ₹18 lakh crore. Deposits have crossed ₹10.62 lakh crore, and advances have reached ₹7.74 lakh crore. Priority sector advances account for nearly 46% of the total. Chief Secretary A. Jayathilak, SLBC officials spoke.