Kerala Infra Investment Fund Board shifts focus on project implementation

01 Jun 2021 CW Team

According to sources, KIIFB, which has cleared multiple proposals organised with 903 projects completed under its loop, will now have to slow down in taking up more projects. Besides, it should focus on the project implementation in the pipelines after uprooting the non-starters.

Till now, KIIFB has approved 903 projects with an expense of Rs 63,224.4 crore. The projects consist of both physical and social structures, which include hospitals, health care centres, schools, colleges, roads, bridges, communication network, water supply and sanitation, industrial parks, complexes, etc.

Out of the total, 488 projects costing Rs 21,309.7 crore have been quoted, and 27 projects costing Rs 732 crore and 160 projects of Rs 560.3 crore have been authorised.

The tensions between the Central Government and the state over KIIFB has reached a point where the comptroller and auditor general (CAG) has flagged KIIFB's method of raising funds from the overseas market. The Enforcement Directorate (ED) has filed a case against KIIFB citing disobeying the Foreign Exchange Management Act (FEMA) while making money through masala bonds from foreign.

In addition to the Rs 2,150 crore raised through masala bonds with an interest rate of 9.7%, KIIFB has also taken long-term loans from Nabard of Rs 565 crore at 9.3%, Rs 1,000 at 9.15% from State Bank of India (SBI), and Rs 500 crore at 8.95% from Union Bank of India. These loans were secured for 10 and 12 years with a reimbursement period of two years.

According to the KIIFB (amendment) act 2016, the government set apart 10% of motor vehicle tax in 2016-17, increasing 10% of it every year until it reaches 50% after five years.

Tax imposed on petrol and diesel is to be given to KIIFB before December 31 each year and paid on an escrow method from the state's treasury to the KIIFB's accounts automatically.

Image Source

Also read: Kerala hands over Rs 3,460 mn for industrial corridor

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Kerala Infrastructure Investment Fund Board (KIIFB), displayed by the LDF government as a prestigious and effective solution for the state's infrastructure woes, will shift its focus on project implementation as the government moves into its second tranche. According to sources, KIIFB, which has cleared multiple proposals organised with 903 projects completed under its loop, will now have to slow down in taking up more projects. Besides, it should focus on the project implementation in the pipelines after uprooting the non-starters. Till now, KIIFB has approved 903 projects with an expense of Rs 63,224.4 crore. The projects consist of both physical and social structures, which include hospitals, health care centres, schools, colleges, roads, bridges, communication network, water supply and sanitation, industrial parks, complexes, etc. Out of the total, 488 projects costing Rs 21,309.7 crore have been quoted, and 27 projects costing Rs 732 crore and 160 projects of Rs 560.3 crore have been authorised. The tensions between the Central Government and the state over KIIFB has reached a point where the comptroller and auditor general (CAG) has flagged KIIFB's method of raising funds from the overseas market. The Enforcement Directorate (ED) has filed a case against KIIFB citing disobeying the Foreign Exchange Management Act (FEMA) while making money through masala bonds from foreign. In addition to the Rs 2,150 crore raised through masala bonds with an interest rate of 9.7%, KIIFB has also taken long-term loans from Nabard of Rs 565 crore at 9.3%, Rs 1,000 at 9.15% from State Bank of India (SBI), and Rs 500 crore at 8.95% from Union Bank of India. These loans were secured for 10 and 12 years with a reimbursement period of two years. According to the KIIFB (amendment) act 2016, the government set apart 10% of motor vehicle tax in 2016-17, increasing 10% of it every year until it reaches 50% after five years. Tax imposed on petrol and diesel is to be given to KIIFB before December 31 each year and paid on an escrow method from the state's treasury to the KIIFB's accounts automatically. Image Source Also read: Kerala hands over Rs 3,460 mn for industrial corridor

Infrastructure Transport

01 Sep 2025

Indian Railways Marks New Milestone with 4.5 km Long ‘Rudrastra’ Trial

Indian Railways has successfully conducted the trial run of Asia’s longest freight train, named ‘Rudrastra’, achieving a new milestone in cargo transportation, as per news reports. The 4.5 km-long train began its trial from Ganjkhwaja railway station in Chandauli, Uttar Pradesh, and travelled to Garhwa in Jharkhand. Covering a distance of 209 km in 5 hours and 10 minutes, it maintained an average speed of 40.5 km per hour. The train was formed by combining three long-haul racks, with ..

Infrastructure Energy

01 Sep 2025

UltraTech Launches India’s First On-Site Hybrid RTC Renewable Energy Project

UltraTech Cement has operationalised a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at its Sewagram Cement Works in Gujarat. The first-of-its-kind solution combines bifacial solar modules with trackers, wind energy and battery storage, co-located on-site, to ensure uninterrupted power for cement manufacturing without grid reliance. The project was executed in collaboration with clean energy solutions provider Gentari. Installed as a behind-the-meter system, it is the country..

Infrastructure Transport

09 Sep 2025

Patna Metro Trials Successful, Red Line Priority Corridor to Launch This Month

Patna is set to roll out its first metro rail service later this month, with successful trial runs conducted on the Red Line priority corridor, the Patna Metro Rail Corporation announced.On 7 September, a metro train completed a test run between the Patna depot and Bhootnath station. Officials said the trials involved rigorous checks of rolling stock fitness, overhead electrification (OHE), and track alignment and stability to ensure operational safety and performance.The corridor from the New Pataliputra Bus Terminal to Bhoothnath has been designated as the priority stretch and will be the fi..