Speaking during the 11th Inter-State Council meet, chaired by Prime Minister Narendra Modi here, Vijayan said the state government is handling the matter "legally with due sensitiveness".
Among other issues, Vijayan also expressed his reservation over dismantling of Planning Commission, terming the move as "unfortunate" and insisted that the dispensation of the erstwhile body should be restored.
"Dispensation of Planning Commission should be restored so that even the remote areas too will figure in the comprehensive and planned development of the nation," he said.
During the Council meet, the Kerala CM demanded a discussion in the Standing Committee over the Punchhi Commission report which had recommended for an effective restructuring of Centre-State relations.
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Kerala has also demanded grant to start Coastal Police Training School, Marine IR Battalion and a Counter Insurgency and Anti-terrorism school in the state considering internal security issues and the state's strategic position.
Pinarayi Vijayan also met Railway Minister Suresh Prabhu in the evening and discussed various issues pertaining to the development of railways in the state and suggested floating a State-Railways joint venture to expedite the development of railways in Kerala.