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Nomura Holdings, a leading global investment bank, is investigating its India fixed-income operations amid concerns that reported profits in its rates division may have been inflated in recent years. The review is being conducted by the bank's compliance department and focuses specifically on how

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Kerala Freezes PM SHRI Scheme After CPI’s Strong Opposition, Rift With LDF Widens

Posted By: Hemant Kumar Posted On: Oct 29, 2025Share Article
Kerala Freezes PM SHRI Scheme After CPI’s Strong Opposition
File photo of CM Pinarayi Vijayan. (PTI)

Kerala Freezes PM SHRI Scheme After CPI’s Strong Opposition, Rift With LDF Widens

The Kerala government has put on hold all procedures related to the implementation of the Pradhan Mantri Schools for Rising India (PM SHRI) scheme following strong opposition from the Communist Party of India (CPI), a key ally in the ruling Left Democratic Front (LDF).

A seven-member cabinet subcommittee has been constituted to examine the matter in detail. Further proceedings related to the project will remain frozen until the committee submits its report.

The state will write to the Centre seeking relaxations in the scheme's conditions, arguing that certain provisions are “unacceptable." Chief Minister Pinarayi Vijayan has reportedly instructed the Education Department to halt preparations for finalising the list of schools to be brought under the project.

The decision was taken at a CPI(M) secretariat meeting held at the AKG Centre on Wednesday, attended by Chief Minister Pinarayi Vijayan, CPI(M) national secretariat member MA Baby, state secretary MV Govindan, and LDF convener TP Ramakrishnan. However, an official announcement from the government or the party is still awaited.

The move came after four CPI ministers — K Rajan, P Prasad, GR Anil Kumar, and J Chinchurani — boycotted Wednesday's cabinet meeting to protest the state's decision to sign the PM SHRI MoU without consulting the cabinet or coalition partners. The CPI has demanded that the government officially freeze the agreement and inform the Centre in writing, with the letter made public.

However, reports indicate that Kerala may not be able to withdraw from the project since state representatives have already signed the Memorandum of Understanding (MoU) with the Union government. Under the scheme's guidelines, the Centre can seek to recover funds if a state violates the terms of the agreement.

Efforts to defuse the crisis have so far failed. Chief Minister Vijayan met CPI state secretary Binoy Viswam and CPI ministers earlier this week, but the talks ended without a breakthrough. The CPI maintains that the PM SHRI initiative is an attempt to “communalise, centralise, and commercialise" education under the National Education Policy (NEP).

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The rift widened after documents revealed that the MoU was signed without cabinet approval or consultation with LDF allies. CPI's Binoy Viswam questioned the “unusual haste" behind the move and wrote to LDF convener TP Ramakrishnan seeking an immediate discussion.

Amid the escalating tension, the LDF is expected to convene an emergency meeting to address the issue, with senior CPI(M) leader MA Baby likely to intervene to broker peace. Discussions between Chief Minister Vijayan, CPI(M) state secretary MV Govindan, and CPI leadership are continuing as the standoff threatens to disrupt the government's functioning.

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