Kerala stuck in PM SHRI scheme MoU trap, says Minister
Education Minister N Samsudheen clarifies Kerala is bound by an MoU regarding the PM SHRI scheme and reveals ₹1,607 crore in withheld central funds.

Kerala Education Minister N Samsudheen has informed the State Assembly that the state government is legally unable to unilaterally withdraw from the central PM SHRI scheme due to the terms of a Memorandum of Understanding (MoU) signed by the previous administration.
Addressing the Assembly during Question Hour on Thursday, the Minister highlighted a complex legal and financial deadlock. He explained that the agreement entered into by the previous government does not grant the state the right to exit the scheme on its own accord.
The Legal Bind of the MoU
Citing the specific provisions of the agreement, Samsudheen noted that while the Union Ministry of Education reserves the right to terminate the agreement with a 30-day notice in the public interest, any modifications or changes to the terms require mutual consent from both parties.
“The present government is facing a situation created by the previous government's decision to agree to implement the PM SHRI scheme and sign the MoU, which does not provide for unilateral withdrawal by the state,” the Minister stated.
Despite the legal constraints, the Minister maintained a firm stance on educational autonomy. He clarified that the Kerala government will not permit any curriculum other than the one prescribed by the state to be taught within its government schools.
Massive Financial Impact: ₹1,607 Crore Withheld
The refusal to implement the PM SHRI scheme has resulted in a significant financial blow to the state. Minister Samsudheen revealed that the Central Government has withheld substantial funds across various schemes because Kerala has not moved forward with the PM SHRI implementation.
The total amount withheld by the Centre currently stands at ₹1,607 crore. The breakdown of these withheld funds is as follows:
- Samagra Shiksha Kerala (SSK):
- ₹280 crore (2023–24)
- ₹513 crore (2024–25)
- ₹357 crore (2025–26)
- ₹433 crore (2026–27)
- PM JANMAN: ₹5.5 crore
- Tiles of Excellence scheme: ₹12.8 crore
- DAJGUA: ₹3 crore
Cabinet Subcommittee to Decide Next Steps
To navigate this impasse, the state has constituted a Cabinet subcommittee led by the Minister for General Education. This committee is tasked with examining the legalities and the potential paths forward regarding the PM SHRI scheme. The Minister emphasized that all future decisions will be contingent upon the findings and recommendations of this subcommittee.
In a comparative analysis, the Minister cited Punjab as a precedent. He noted that Punjab had signed the MoU in October 2022, withdrew in July 2023, but eventually decided to re-implement the scheme in July 2024. Currently, the scheme is active in 419 schools in Punjab.
Samsudheen concluded by noting that almost all Indian states, with the exception of Tamil Nadu, have signed the PM SHRI MoU, leaving Kerala in a difficult position regarding its educational policy and central funding.