Kerala Chief Minister V.D. Satheesan on Tuesday, 26 May made his first official visit to New Delhi after assuming office, holding back-to-back meetings with Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman to press the Centre on the state's deepening financial crisis, stalled infrastructure projects, and a long-term development blueprint for Kerala.

Key Discussions with the Centre

Addressing reporters after the meetings, Satheesan said the Centre had been fully briefed on Kerala's priorities and the urgent need for support on the state's flagship projects and rebuilding plans. He sought greater flexibility in state borrowing limits and requested the Union government's intervention to ease restrictions hampering Kerala's financial mobilisation.

'We have briefed the Centre about our vision for building a new Kerala,' Satheesan said, adding that all departments would soon be directed to conduct a comprehensive audit of funds due from the Centre and the utilisation status of amounts already received.

Fiscal Crisis and the White Paper

Satheesan acknowledged that Kerala was passing through a severe financial crisis but declined to elaborate, saying the state government's white paper on finances would be released on 1 June. The document, he said, is being prepared to present the actual fiscal condition inherited by the new Congress-led United Democratic Front (UDF) administration from the outgoing Left Democratic Front (LDF) government.

He said major infrastructure and development projects would first be placed before the upcoming state budget and subsequently taken up formally with the Centre. This sequencing, he indicated, was deliberate — to ensure proposals arrive in New Delhi with full budgetary backing.

Gulf Remittances, Oil Prices, and Inflation Risk

Satheesan raised the spectre of global West Asia tensions, warning that rising oil prices and Kerala's structural dependence on Gulf remittances could severely compound the state's economic stress and worsen inflation — which, he said, was already among the highest in the country. These concerns, he confirmed, were placed before the Centre during Tuesday's meetings.

PM SHRI Scheme, KIIFB, and Police Action

On the controversial PM SHRI scheme agreement signed by the previous Left government, Satheesan said the new administration was examining the matter. He also noted that a Kerala Infrastructure Investment Fund Board (KIIFB) meeting was expected shortly, after which the state government would decide its future course.

The Chief Minister also touched on the suspension of five police personnel attached to former Chief Minister Pinarayi Vijayan over the alleged assault on Youth Congress workers during the Nava Kerala Yatra. He said the Special Investigation Team had submitted its report and that the first phase of action had begun, with further steps to follow if required.

What Comes Next

Satheesan described Tuesday's visit as largely a courtesy call and said future meetings would focus on specific demands and concrete proposals. On Wednesday, he is likely to call on Union Home Minister Amit Shah. The release of the state's white paper on 1 June is expected to set the tone for Kerala's formal negotiations with the Centre on fiscal relief and project funding.