Govt can refuse ADB loan if conditions harmful: LDF

Thiruvananthapuram, Jan 15 (UNI) The ruling Left Democratic Front (LDF) in Kerala today said the state government had the privilege to refuse the Asian Development Bank loan for urban development if the conditions put forth by the bank were harmful.

Addressing mediapersons after an LDF meeting here, its convenor Vaikom Viswam said a decision on the ADB issue would be taken only after discussions in the Front. 'Though the issue was taken up in the two-day meeting, the discussions could not be completed for lack of time and it would be discussed in detail in the next Front meeting.' Asked if the agreement with the ADB was signed without discussion in the LDF, Mr Viswam said the agreement, brought in by the previous United Democratic Front (UDF) was signed as there was a cut off date and if it was not signed, the state could have lost it.

The government had time till March and a final decision could be taken after looking into aspects of the agreement. 'It should be seen if changes brought by the previous UDF government were enough or more were needed. A decision would be taken only after discussing it.' The controversy over the ADB loan had been boiling in the CPI(M) for sometime with the Chief Minister and Ministers making contrary statements. Chief Minister V S Achutanandan said yesterday in New Delhi that some of the bank's conditions were dangerous and that the government was exploring options to raise funds from other sources.

CPI(M) secretary general Prakash Karat had said procedures were violated in the way the agreement was signed. He supported the Chief Minister on the issue that the latter was unaware of the agreement.

It was contrary to Finance Minister Thomas Issac and Local Administration Minister Paloli Mohammed's statement that the Chief Minister was aware of the agreement. The CPI, the second biggest ally in the LDF, had also raised certain doubts about taking the ADB loan.

Asked if government could not think of other sources of revenue, Mr Vishwam said it could not go forward without taking loans.

UNI