India, Feb. 15 -- The Centre has sanctioned an interest-free loan of Rs.529.50 crore to the Kerala government towards various landslide rehabilitation projects in Wayanad under the Scheme for Special Assistance to States for Capital Investment (SASCI), officials aware of the matter said on Friday.

The financial assistance by the Centre in the form of a loan to be repaid in 50 years came months after the Kerala government requested a special financial package to meet the rehabilitation costs, which are estimated to be Rs.2,262 crore. The Centre had earlier labelled the July 30 landslide in Wayanad as a "disaster of severe nature".

The letter from the Union ministry of finance, declaring the allocation of Rs.529.5 crore under the scheme, ...