On May 13, 2025, the Kerala government, led by General Education Minister V. Sivankutty, announced plans to approach the Supreme Court to recover Rs 1,500 crore in education funds allegedly withheld by the Centre. The funds, part of the Samagra Shiksha Abhiyan (SSA), are critical for sustaining Kerala’s educational programs, particularly universal elementary education for children aged 6–14. The Centre’s decision to block these funds stems from Kerala’s refusal to sign the Memorandum of Understanding (MoU) for the Pradhan Mantri Schools for Rising India (PM-SHRI) Scheme, which Kerala views as an imposition of the National Education Policy (NEP) 2020. This escalating Centre-State tussle, amplified by Kerala’s alliance with Tamil Nadu, is a must-know for UPSC 2025 aspirants, blending federalism, education policy, and governance. Here’s your engaging dive into the issue!
Key Points:
- Legal Action Announced: May 13, 2025
- Funds Withheld: Rs 1,500 crore under SSA
- Reason: Kerala’s refusal to sign PM-SHRI MoU
- Alliance: Kerala coordinating with Tamil Nadu
🏫 Understanding the PM-SHRI Scheme
Launched in June 2022, the PM-SHRI Scheme is a flagship initiative by the Union Ministry of School Education and Literacy to transform 14,500+ government schools into model institutions showcasing NEP 2020 principles. With a budget of Rs 27,360 crore (Centre’s share: Rs 18,128 crore) from 2022–2027, it aims to foster innovative pedagogy, modern infrastructure, and inclusivity. The funding model is 60:40 (Centre:State) for most states, 90:10 for North-Eastern/Himalayan states, and 100% central for UTs without legislatures. States must sign an MoU committing to NEP 2020 implementation, including prefixing “PM-SHRI” to school names.
Key Points:
- Objective: Upgrade 14,500+ schools into NEP-aligned exemplars
- Budget: Rs 27,360 crore (2022–2027)
- Funding Ratio: 60:40 (general), 90:10 (NE/Himalayan), 100% (UTs)
- MoU Requirement: Full NEP adoption, “PM-SHRI” branding
📊 PM-SHRI Implementation: Who’s In, Who’s Out?
As of May 2025, 12,400 schools across 670 districts have joined the PM-SHRI scheme, including Kendriya Vidyalayas and Jawahar Navodaya Vidyalayas. States like Uttar Pradesh (1,865 schools), Maharashtra (910), and Andhra Pradesh (900) lead the pack. However, Kerala, Tamil Nadu, and West Bengal—all Opposition-ruled—have opted out, citing concerns over NEP 2020 and state autonomy. Delhi and Punjab initially resisted but signed MoUs in 2024 under financial pressure, while Kerala remains steadfast, escalating the issue to the judiciary.
Key Points:
- Adoption: 12,400 schools in 670 districts
- Top States: UP, Maharashtra, Andhra Pradesh
- Holdouts: Kerala, Tamil Nadu, West Bengal
- Pressure Tactics: Centre withheld SSA funds to coerce participation
🚫 Why Kerala Opposes PM-SHRI
Kerala’s resistance to the PM-SHRI Scheme is rooted in its opposition to NEP 2020, which it perceives as promoting a “saffronised” education agenda that undermines linguistic and cultural diversity. Education being a State subject under the Constitution, Kerala argues that the Centre’s linkage of SSA funds to PM-SHRI MoUs is an “unconstitutional overreach” violating cooperative federalism and the Right to Education (RTE) Act, 2009. Minister Sivankutty has accused the Centre of “discriminatory practices,” citing a Supreme Court ruling in a Tamil Nadu petition that states are not legally bound to adopt NEP 2020.
Key Points:
- Core Issue: NEP 2020 seen as saffronised, anti-federal
- Constitutional Stand: Education is a State subject
- Legal Backing: Supreme Court’s Tamil Nadu ruling
- Allegation: Centre’s fund withholding is coercive
🌟 Kerala’s Education Achievements
Despite forgoing PM-SHRI, Kerala boasts a robust education system, often outperforming national averages. With a Gross Enrolment Ratio (GER) above the national benchmark, the state has invested heavily in infrastructure, including 40,000 smart classrooms with broadband connectivity. Programs under Samagra Shiksha Kerala (SSK) support teacher training, inclusive education, and RTE entitlements. The withheld Rs 1,500 crore (including Rs 859.63 crore in SSA funds) threatens these initiatives, impacting salaries, infrastructure, and student support.
Key Points:
- Smart Classrooms: 40,000 with broadband
- High GER: Above national average
- SSA Role: Funds teacher salaries, RTE programs
- Impact of Funds Crunch: Risks stalling educational progress
🏛️ Legal Rationale: Kerala’s Case Against the Centre
Kerala’s decision to approach the Supreme Court is bolstered by a Parliamentary Standing Committee report (March 2025), chaired by Congress MP Digvijaya Singh, which deemed the Centre’s withholding of SSA funds “unjustifiable.” The panel noted that SSA, predating PM-SHRI, enforces the RTE Act—a fundamental right—while NEP 2020 is an executive policy. With Rs 1,000 crore owed to West Bengal, Rs 2,152 crore to Tamil Nadu, and Rs 859.63 crore to Kerala, the states argue that linking SSA funds to PM-SHRI violates federal principles. Kerala’s coordination with Tamil Nadu, which also plans legal action, strengthens its case.
Key Points:
- Pending Funds: Kerala (Rs 859.63 crore), Tamil Nadu (Rs 2,152 crore), West Bengal (Rs 1,000 crore)
- Parliamentary Support: Digvijaya Singh panel calls withholding “unjustifiable”
- Legal Argument: SSA tied to RTE, not NEP/PM-SHRI
- Tamil Nadu Alliance: Joint legal strategy
🌍 Broader Implications and UPSC Relevance
This dispute highlights critical issues for UPSC 2025 aspirants, particularly in General Studies Paper 2 (Governance, Federalism) and Paper 3 (Social Development):
- Centre-State Relations: The Centre’s coercive tactics challenge cooperative federalism.
- Education Policy: NEP 2020’s implementation sparks debates on autonomy vs. uniformity.
- RTE Act: SSA’s role in enforcing fundamental rights takes center stage.
- Political Dynamics: Opposition-ruled states like Kerala, Tamil Nadu, and West Bengal resist perceived BJP-led centralization.
Social media, especially X, reflects polarized sentiments. Posts from @INCIndia and @Pawankhera criticize the Centre’s “coercion,” while others like @shashank_ssj argue states are “playing politics” at students’ expense.
Key Points:
- UPSC Topics: Federalism, education policy, RTE Act
- Essay Potential: “Balancing National Education Goals with State Autonomy”
- Public Sentiment: X shows divided views on Centre vs. states
- Prep Tip: Study SSA, NEP 2020, and Centre-State disputes
🚀 What’s Next for Kerala and PM-SHRI?
Kerala’s Supreme Court petition, expected to leverage the Tamil Nadu precedent, may force the Centre to release SSA funds without PM-SHRI conditions. The case could set a landmark precedent for federalism and education funding. Meanwhile, Tamil Nadu (facing a Rs 2,152 crore shortfall) and West Bengal (Rs 1,000 crore) may join the legal fray, amplifying pressure. The Parliamentary Committee has urged transparent funding mechanisms and flexibility for states to adopt local education models. If unresolved, protests planned by Kerala and Tamil Nadu could escalate tensions.
Key Points:
- Legal Outcome: Could redefine SSA funding norms
- Allied States: Tamil Nadu, West Bengal may follow suit
- Committee Push: Calls for transparency, flexibility
- Risk: Protests if funds remain withheld
