The Kerala cabinet Tuesday gave its nod to avail Rs 3,500 crore loan from the World Bank towards the state's rebuilding efforts after it was devastated last year by the worst deluge there in a century.
A detailed UN report had earlier stated that Kerala would need Rs 31,000 crore for rebuilding, post the August floods.
The Disaster Needs Assessment report, prepared by a UN team, was submitted to Chief Minister Pinarayi Vijayan in October last year.
On the basis of the report, the state government had prepared a Rebuild Kerala initiative, as part of which the World Bank's first development loan of about Rs 3,500 crore received the cabinet nod Tuesday.
The loan would be in the ratio of 70:30.
When the World Bank provides the Rs 3500 crore loan, the state will be able to utilise projects worth over Rs 5,000 crore for its development, a government press release said.
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A high-power committee headed by the state chief secretary has been entrusted the task of coordinating the work to make available the loan by June-July this year.
The state cabinet also decided to allocate Rs 7.94 crore from the Chief Minister's relief fund to the Ockhi fund for purchasing 120 FRP (fibre-reinforced plastic) boats for fishermen who lost their livelihood during the Ockhi cyclone that hit the Kerala coast.