I am sensitive to Kerala's problems, says PM

New Delhi: Prime Minister Manmohan Singh has said for states like Kerala, which get fewer allotment from the Centre due to its high social development indices, alternative methods will have to be devised to address their grievances.

"Adequate central funds do not go to states like Kerala that have solved social problems long ago. We must find other ways for compensating such states," Dr Singh told a Malayalam TV channel.

He said the government was trying to address the problems of regional imbalances. "This does not mean that the Centre does not have any interest on development activities in Kerala, which has already taken huge strides in fields like health, education and population control," he added.

Admitting that he was sensitive to Kerala's concerns, Dr Singh said new equations will have to be found to ensure that the state does not have any serious grievances.

The state government must come up with innovative schemes for enterprising Non-Resident Indians who wish to return to the state, he said adding the Reserve Bank of India must ask the banks in the state to lend more for the purpose.