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Clash in Kerala Assembly over PM Shree scheme, government expressed fear of stoppage of funds!
Samira Vishwas | June 30, 2026 4:24 PM CST

The ongoing political controversy over the Centre’s PM Shree School Development Scheme took a new turn in the Kerala Assembly on Monday. State General Education Minister N. Shamsuddin said the state has no legal option but to remain a part of the program. Also, he accused the previous LDF government of signing one-sided agreements, due to which Kerala is no longer left with much scope.

Answering questions in the Assembly, the Minister said that under the agreement with the Central Government, only the Center can unilaterally cancel the agreement, due to which the state has no legal right to get out of it.

Shamsuddin said, “The previous government was forced to make this agreement because it feared that Kerala would lose the huge assistance it gets from the Centre. Today, despite political differences over this scheme, it is not possible for the state to get out of it.”

According to the minister, Kerala will suffer a loss of around Rs 2,000 crore if it exits the PM SRI scheme.

He said that apart from losing about Rs 1,000 crore earmarked for the development of 304 government schools selected in 152 blocks under the PM Shri programme, the state may also lose Rs 1,151.48 crore received under the ‘Samagra Shiksha’ scheme.

“The Center has stopped Kerala’s due funds in the past as well. There is every possibility that if the state backs out of the agreement, other grants may also be affected,” he told the House.

Education Minister N. Shamsuddin said that the previous LDF government had finally made this agreement because they were afraid that if they did not do so, other funds from the Center would also be stopped. He alleged that despite the scheme having far-reaching implications, no meaningful talks were held before finalizing the agreement.

“There is nothing on record to show that the previous government had any discussions with the stakeholders or made any preparations before signing the agreement. Even the ministerial sub-committee formed by the LDF government to examine the scheme did not meet even once,” he said.

Shamsuddin also reiterated the UDF government’s objections to some provisions of the PM Shree scheme, especially those to curriculum and academic freedom.

He said, “It should be the state’s right to decide what is taught in schools. There was a need for extensive dialogue before reaching any firm agreement on such issues.”

The minister said the present government is suffering the consequences of the decisions of the previous government and is now looking for ways to protect the interests of Kerala without losing the much-needed support from the Centre.

Shamsuddin said, “Whatever our political differences on this scheme, we will ensure that not a single rupee of Kerala’s public education sector is wasted. Our priority is to get every legitimate grant from the Center and use it to strengthen government schools.”

After hearing the minister’s statement in the Assembly, former education minister and senior CPI(M) leader V. Shivankutty accused the Muslim League and the Congress party of implementing a scheme which was stopped by the previous Left government in view of potential threats to the educational autonomy of the state.

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