In a high-stakes push to address Kerala’s mounting economic and developmental woes, Chief Minister Pinarayi Vijayan met Prime Minister Narendra Modi and key Union ministers in New Delhi on Friday, October 10, 2025, to lay bare the state’s dire financial straits and plead for transformative interventions. Topping his agenda: securing immediate approval for an All India Institute of Medical Sciences (AIIMS) in Kozhikode and unlocking critical funds for the rehabilitation of Wayanad, ravaged by calamitous landslides earlier this year. The marathon of meetings, which included sit-downs with Finance Minister Nirmala Sitharaman, Home Minister Amit Shah, and Road Transport Minister Nitin Gadkari, underscored Kerala’s desperate bid to bridge a crippling fiscal gap and revive stalled welfare and infrastructure projects.

Vijayan, speaking to reporters after the talks, emphasized that Kerala has pinpointed a prime 200-acre plot at Kinalur in Kozhikode for the long-sought AIIMS, urging the Centre to greenlight the prestigious healthcare facility without delay. “This isn’t just about a hospital; it’s about elevating healthcare access for millions in northern Kerala,” he stressed, framing the project as a lifeline for a state grappling with uneven medical infrastructure. Equally pressing was his call for a Rs 2,221 crore grant from the National Disaster Response Fund (NDRF) to rebuild Wayanad, where July’s twin landslides killed over 200, displaced thousands, and obliterated livelihoods. “This aid must not be treated as a loan,” Vijayan insisted, arguing that saddling disaster-struck communities with debt would deepen their despair.

The chief minister didn’t shy away from highlighting Kerala’s fiscal chokehold, pointing to a Rs 5,100 crore shortfall in the state’s borrowing limit that’s paralyzed welfare schemes and development works. He pressed Sitharaman to relax stringent borrowing caps, requesting an additional 0.5% borrowing capacity to inject liquidity into the state’s coffers. Vijayan also flagged a staggering Rs 9,765 crore GST revenue gap and Rs 965 crore in pending Integrated GST recoveries, alongside unpaid dues for paddy procurement, as evidence of the Centre’s fiscal neglect. “These are not mere numbers; they’re barriers to our people’s progress,” he said, urging swift action to alleviate Kerala’s cash crunch.

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On a brighter note, Vijayan revealed that Home Minister Shah offered assurances that the state’s demands would be “seriously considered,” signaling potential relief on the horizon. Meanwhile, Gadkari lauded Kerala’s strides in national highway development, promising that all stretches of the vital NH66 corridor would be completed by December 2025. The Union minister’s planned visit to review progress has sparked cautious optimism, with Vijayan noting that infrastructure gains could bolster Kerala’s economic recovery. Yet, with opposition parties accusing the Left Democratic Front (LDF) government of mismanaging funds and the Centre of playing favorites with BJP-ruled states, the talks carry high political stakes ahead of looming state elections.

For Kerala, reeling from natural disasters and financial strain, Vijayan’s Delhi offensive is a clarion call for equity in a federal system where southern states often feel shortchanged. Whether Modi’s government delivers on AIIMS, Wayanad aid, or fiscal relief will test the Centre’s commitment to cooperative federalism—and determine if Kerala’s beleaguered citizens get the lifeline they’ve been banking on.

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