Achuthanandan sticks to stand on ADB loan

The controversy over accepting ADB loan in Kerala refuses to die down with Chief Minister V S Achuthanandan today saying that some of the conditions set by the bank were "dangerous" and the government was exploring options to raise funds from other sources.

He also admitted that the CPI(M) central leadership had "warned" him and other leaders for making public statements on the sensitive issue as it reflected poorly on the collective responsibility of the government and dented the image of the LDF ministry.

"If we promptly collect sales tax arrears from private lotteries and manage to get pending central funds, we will be able to tide over the financial crisis. Besides, the people of Kerala are willing to give loans to the state government," he told reporters here.

He said the government was also exploring the option of accepting loans from expatriates and approaching the Housing Development Corporation (Hudco).