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

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