In a striking policy reversal, the CPI(M)-led government of Kerala has finally agreed to participate in the Pradhan Mantri Schools for Rising India (PM SHRI) initiative launched by the Central Government.

The PM SHRI scheme is a flagship programme designed to upgrade existing schools and improve the quality of education nationwide. This decision marks a complete turnaround from Kerala’s previous stance, as the state had earlier accused the Centre of trying to “saffronise education” through the initiative.

The new decision brings relief to teachers and students across the state, as it opens the way for much-needed central funding that had been frozen due to the earlier refusal. By joining PM SHRI, Kerala aligns itself with most other Indian states that have already accepted the scheme as part of a broader effort to modernise school education under the National Education Policy (NEP) 2020.

Kerala’s initial rejection of PM SHRI

For nearly a year, the Government of Kerala refused to sign the memorandum of understanding (MoU) required to participate in the PM SHRI scheme. The state leadership claimed that the initiative, closely tied to NEP 2020, would weaken Kerala’s autonomy over its education system. Chief Minister Pinarayi Vijayan even described the NEP as “a danger to the nation”, while Education Minister V Sivankutty warned that it might cause “central interference” in syllabus design.

Due to the state’s refusal, the Centre withheld ₹1,000 crore in education funds allocated for Kerala. This freeze placed financial strain on the state’s education sector, especially when most other states and Union Territories had already signed the MoU and started benefiting from central assistance.

What prompted the turnaround

On 19 October, Kerala’s Education Minister V Sivankutty publicly admitted that there was no valid reason for the state to remain outside a scheme aimed at national educational progress. He stated, “Funds worth Rs 1,466 crore belong to our children. Many of our education-related expenses, including salaries of the teachers and student grants, depend on this support. The Centre’s funds belong to every citizen of the country.”
He further said that the state government would adopt a “practical approach.”

The admission reflected a shift from ideological rigidity to administrative realism. Mounting salary arrears and a growing need for infrastructure upgrades reportedly made the government reconsider its position. By signing the MoU, Kerala can now claim funds pending since 2023 and secure resources to sustain its public-school system.

Student movements and ABVP’s persistent campaigns

For months, student organisations—most notably the Akhil Bharatiya Vidyarthi Parishad (ABVP)—had been urging the Kerala government to join the PM SHRI scheme. The ABVP, affiliated with the Bharatiya Janata Party (BJP), spearheaded campaigns across the state demanding that Kerala end its boycott. The group argued that ideological resistance by the Left government was depriving students of essential resources.

ABVP activists submitted memoranda, organised rallies, and even faced violent pushbacks during their protests. Their persistence eventually paid off. ABVP’s Kerala State Secretary E. U. Eswaraprasad hailed the move, saying, “This is a big victory for students who stood for educational progress. Around 336 schools in Kerala will benefit from PM SHRI, reaching standards comparable to Kendriya Vidyalayas.”

Consequences of the funding freeze

The Central Government implements an umbrella programme known as Samagra Shiksha, through which states and Union Territories receive education-related grants. The release of these funds became conditional upon signing the PM SHRI MoU. Because Kerala, Tamil Nadu, and West Bengal initially refused, they were excluded from 2024-25 allocations. In contrast, states such as Madhya Pradesh, Uttar Pradesh, and Rajasthan received funds amounting to several thousand crores.

This freeze placed Kerala’s education sector under immense pressure. Teacher salaries, infrastructure works, and student scholarships began to face delays, forcing the state to reassess its decision.

Central Government’s firm stand brings results

The Union Government maintained a clear position that all states must align with NEP 2020 and the PM SHRI framework to uphold consistent national standards in school education. It refused to release funds to states that failed to meet administrative requirements.

In the Lok Sabha on 21 July, Union Education Minister Dharmendra Pradhan responded to a joint query from MPs Bapi Haldar and Kodikunnil Suresh regarding funds released, withheld, or delayed under Samagra Shiksha Abhiyan (SSA) and PM SHRI between 2023 and 2025. They had also sought clarification on school upgradation proposals from West Bengal’s Mathurapur constituency and on whether the withholding of over ₹1,500 crore had affected teacher training and ICT programmes in Kerala.

Pradhan explained that education lies in the Concurrent List of the Constitution, meaning both Centre and states share responsibility. He added that centrally sponsored schemes require states to comply with fiscal and administrative conditions such as matching state shares, audited accounts, and utilisation certificates. He reaffirmed that alignment with NEP 2020 is an essential part of both Samagra Shiksha and PM SHRI.

The ministry informed Parliament that 33 of 36 states and Union Territories had already signed the PM SHRI MoU, while Kerala, West Bengal, and Tamil Nadu were still pending. Kerala had received ₹141.66 crore under Samagra Shiksha in 2023-24 but nothing in 2024-25. Similarly, Tamil Nadu received ₹1,876 crore in 2023-24 but no funds in 2024-25. In contrast, Uttar Pradesh obtained ₹6,264.79 crore under SSA and ₹246.86 crore under PM SHRI, while Madhya Pradesh received ₹3,434.71 crore under SSA and ₹145.32 crore under PM SHRI.

The minister said the Centre had consistently urged the non-signatory states to join so that their schools could also serve as models of NEP-driven excellence. Kerala’s final decision to sign, therefore, represents a broader understanding that progress cannot be obstructed by ideology.

Politics versus pragmatism

Even as some CPI leaders such as Binoy Viswam continued to denounce NEP, calling it “reflecting the RSS agenda”, the state government chose to prioritise practical governance. Minister Sivankutty stated that Kerala would continue to maintain its educational traditions while availing of central support. He added that the funds would be used for crucial areas such as textbook printing, exam preparation, student grants, hostel facilities for SC and ST students, and inclusive education initiatives.

This shift demonstrates how administrative necessity can override political confrontation when public interest is at stake.

Earlier in May, Kerala had even threatened to take legal action against the Centre for withholding funds. The state also attempted to coordinate with Tamil Nadu to form a united front against NEP 2020. However, the move did not succeed, leaving Kerala isolated as other states continued to collaborate with the Union Government.

Kerala’s claim of already fulfilling PM SHRI targets

Despite its earlier refusal, Kerala had repeatedly claimed that it had already implemented major features of PM SHRI. Officials pointed out that over 40,000 smart classrooms equipped with broadband connectivity were functional in government and aided schools. But these efforts lacked further expansion and funding opportunities that come only through the PM SHRI framework.

Under the new agreement, between 260 and 336 schools in Kerala will now be upgraded as PM SHRI model institutions, joining 12,400 others across 670 districts in India.

Inside the PM SHRI scheme

The Pradhan Mantri Schools for Rising India (PM SHRI) is a central initiative announced by Finance Minister Nirmala Sitharaman in the 2022 Union Budget. Its main aim is to convert existing government and government-aided schools into model centres of excellence. A total of 14,500 schools have been targeted under the plan, with at least two from every block in each district.

PM SHRI schools are expected to act as benchmarks for quality education, leading other institutions by example in infrastructure, teaching standards, and learning outcomes. The scheme embodies the spirit of NEP 2020 by promoting holistic learning, modern technology, and skill-based education.

Funding is shared between the Centre and the states in a 60:40 ratio. Each selected school will receive roughly ₹1 crore per year for five years, meant for infrastructure upgrades, digital learning tools, and teacher training. The overall financial outlay is around ₹27,000 crore—making PM SHRI one of the most ambitious education-modernisation drives in Indian history.