Thiruvananthapuram | Kerala Finance Minister K N Balagopal on Tuesday said the state government would approach the Centre to request an extension for utilising its conditional loan of Rs 529.50 crore allocated for Wayanad rehabilitation.

The state government had already termed the union government's stipulation to utilise the amount by March 31, as a "huge practical problem." Addressing reporters here, the FM said the Centre's directive to spend the loan amount within one and half months has triggered widespread criticism.

It is normal to seek an extension of time in such a circumstance.

Balagopal further said the state government is making all efforts to speed up necessary procedures and a high level meeting has already been convened in this regard.

Chief Minister Pinarayi Vijayan is also making direct interventions to augment things, he said.

"We are making efforts to complete requisite things on one side. We will also try to get an extension of time (to utilise the loan amount) on the other side." Stressing that the union government has provided the amount not as a grant but as a loan with conditions, the Finance Minister also said that there are restrictions to spending the amount.

The Centre's conditional loan of Rs 529.50 crore for Wayanad rehabilitation has stirred up the political waters of Kerala with the ruling LDF and opposition UDF criticising the stipulations, while the BJP said the amount given was "in effect a grant".

CM Pinarayi Vijayan had said that when a state like Kerala, which has been number one in various areas and was a proud part of India, suffered a disaster, the Centre only gave a loan to be repaid and did not give it the financial assistance that it deserved.

Over 200 lives were lost in the landslides that wiped out three villages in Wayanad district in July last year.