This document summarizes a response to a parliamentary question regarding central assistance provided to the State of Kerala for the rehabilitation of landslide victims in the Wayanad district.
On February 11, 2025, the Government of India released ₹529.50 crore to Kerala under the Special Assistance to States for Capital Investment (SASCI) 2024-25 scheme, specifically for the reconstruction of disaster-affected infrastructure. The deadline for utilization of these funds was subsequently extended to December 31, 2025, following a request from the State Government.
The conditions of the sanction require the State Government to designate a SASCI Nodal Agency (SNA) for project implementation and to transfer the central funds to the SNA's bank account within 30 days of receipt. According to data from the Public Financial Management System (PFMS), the Government of Kerala transferred the full ₹529.50 crore to the SNA account of the Disaster Management Department, Kerala. However, as of August 12, 2025, no expenditure had been incurred from this account.
Regarding the potential write-off of bank loans for landslide victims, the Reserve Bank of India (RBI) has existing guidelines for relief measures in areas affected by natural calamities. These guidelines include restructuring existing loans, sanctioning new loans at concessional rates with potential interest subvention, and waiving penal interest. Individual banks are responsible for writing off non-performing assets according to their board-approved policies and RBI guidelines. The government does not interfere in these commercial decisions made by banks.
Key Entities Referenced
Ministry of Finance: A ministry of the Government of India, responsible for financial matters.
Department of Expenditure: A department under the Ministry of Finance, Government of India.
Lok Sabha: The lower house of the Parliament of India.
Wayanad district, Kerala: A district in the state of Kerala, India, affected by landslides, the subject of the question.
Adoor Prakash: Member of Parliament who raised the unstarred question.
Pankaj Chaudhary: Minister of State for Finance who answered the question.
Special Assistance to States for Capital Investment SASCI 202425: A scheme by the Government of India to provide financial assistance to states for capital investment, specifically for reconstruction of disaster-affected infrastructure.
Reserve Bank of India RBI: The central bank of India, which issues guidelines on relief measures for areas affected by natural calamities.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
LOK SABHA
UNSTARRED QUESTION No. 4040
TO BE ANSWERED ON MONDAY, AUGUST 18, 2025/SRAVANA 27, 1947 (SAKA)
Central Assistance for Landslide Victims of Wayanad
4040. Adv. Adoor Prakash:
Will the Minister of FINANCE be pleased to state:
(a) Whether the Government has extended the deadline for utilisation of the sanctioned
loan to the State of Kerala for rehabilitation of the landslide victims in Wayanad
district;
(b) if so, the details thereof along with the conditions;
(c) the details of amount utilised by the State Government from the central loan; and
(d) whether the Government has taken any decision to write off the bank loans of the
landslide victims, if so, the details thereof ?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (b): Yes. An amount of Rs. 529.50 crore was released to Kerala on 11.02.2025 under
the scheme for Special Assistance to States for Capital Investment (SASCI) 2024-25 for
reconstruction of disaster affected infrastructure. Subsequently, on request of the State
Governments, guidelines of SASCI 2024-25 were amended and the date for utilization of the
amount released was extended to 31.12.2025. As per the conditions of the sanction, the State
Government has to notify a SASCI Nodal Agency (SNA) for implementing the projects. The
funds released by the Government of India to the State Government shall be transferred by
the State Government to the bank account of the SNA within 30 days.
(c): As per data available in the Public Financial Management System (PFMS), Government
of Kerala has transferred Rs. 529.50 crore released by the Central Government to the SNA
account of Disaster Management Department, Kerala. As on 12.08.2025, no expenditure has
been incurred from this account.
(d): The Reserve Bank of India (RBI) has issued standing guidelines on relief measures to be
provided by respective lending institutions in areas affected by natural calamities. The
measures/directions, inter alia, include restructuring of the existing loans, sanctioning of fresh
loans on sympathetic consideration without insisting for personal guarantee, even withoutadditional fresh security, at concessional rate of interest, no penal interest and even with
benefit of Interest Subvention. Moreover, banks write-off non-performing assets as per their
Board-approved policies and within the extant guidelines issued by RBI. The banks take all
commercial decisions in the best interest of the organization and government does not
interfere in such decisions.
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