The Kerala government is against the merger of State Bank of Travancore (SBT) with State Bank of India (SBI), Chief Minister Pinarayi Vijayan on Thursday said.
This is the first political opposition to the proposed merger of SBI associate banks with the parent.
“People of the state consider SBT as a bank of Kerala and the government also has the same view. We want SBT to remain as it is,” Vijayan said at a meet-the-press programme Thiruvananthapuram.
The state co-operative bank would then become “a big bank” with financial capacity equal to that of any scheduled bank in the state. “We are seriously considering it,” he added.
Last month, SBI cleared a proposal for merger of subsidiary banks and Bharatiya Mahila Bank. It sought the government’s approval for the same. The country’s largest lender has five associate banks — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Vijayan, who took over as chief minister on May 25, said the government is planning a two-pronged strategy — short-term and long-term — for economic development of the state.
Keeping intact the State Planning Board and steps for the preparation of the 13th Five-Year Plan is an indication of the government’s objective of long-term programmes, he said.
Even though the Centre decided to do away with the Planning Commission, the state government, considering the special circumstances of Kerala, has resolved to keep the State Planning Board.
Referring to the grim financial position of the state, he said that as per the latest Comptroller and Auditor General of India report, total debt stood at Rs.1.54 lakh crore. Arrears to the government contractors work out around Rs 1,230 crore, he said.
However, Vijayan added: “I am not saying that the state’s future is dark.”
He is hopeful that the LDF government will tackle the crisis with new development initiatives and resource mobilisation.
Listing the government’s priorities, he singled out infrastructure such as power, transport and roads in the state that needs improvement.
Apparently referring to local protest during land acquisition for projects, Vijayan spoke about “support and co-operation of people” as necessary for their execution.
Vijayan made it clear that the LDF government will not abandon the LNG terminal project, which has seen pipe-laying work getting delayed due to protest by local people.
“We will not abandon the project due to protest. It is required for the development of the state,” he said.
The government will take initiatives in implementing the project by resolving the problems connected with pipe laying work, he added.
As part of the Rs 4,200-crore LNG import terminal in Kochi, pipelines connecting Kochi to Mangalore and Bangalore are being built. Also, state-owned GAIL India plans to link this pipeline with Chennai.
Asked if the government will work out any compensation package for people whose land would be acquired, Vijayan replied that the government is ready to hold talks on the matter.
To a question on SmartCity IT park in Kochi, Vijayan said he would meet the authorities on June 23.
Source: Business-Standard