Thomas Isaac said that if projects are sanctioned without restrictions, repayment of the loans availed for the purpose would be affected. File photoKollam: Kerala finance minister Thomas Isaac has written to all MLAs not to recommend projects for implementation under the KIIFB (Kerala Infrastructure Investment Fund Board) during the coming financial year. This follows the state government’s decision to refrain from making announcements regarding new projects under KIIFB in its upcoming budget.
Shortage of funds to implement projects which have already been cleared is cited as the main reason which led to the situation. Though it was planned to implement projects worth Rs 10,000 crore every year under KIIFB, proposals for works amounting to Rs 54,000 crore were submitted to the board. Of these projects, tender procedures are underway for works costing Rs 20,000 crore.
Isaac said that if projects are sanctioned without restrictions, repayment of the loans availed for the purpose would be affected. “The state would witness big changes even if projects worth Rs 50,000 crore are implemented over five years,” he said.
Problem of plenty
KIIFB has been set up to implement major infrastructure projects. The funds are to be sourced from various agencies as loan, motor vehicles tax and levy on petroleum projects.
Though only proposals which amounted to over Rs 100 crore were to be considered, there was a flood of requests for funds to implement even small projects. As a result, several crucial projects which needed big investments could not be launched. Tenders have been called for projects worth Rs 20,000 crore, but KIIFB has funds amounting to only Rs 3,000 crore, according to officials. The remaining amount has to be met by availing loans.
The financial crisis staring at the government has also contributed to the fund squeeze.
Proposals to be screened
Henceforth, projects submitted before KIIFB would undergo a thorough screening. Till now, it was the public works department that submitted the most number of proposals. A majority of the projects are yet to take off. To break the impasse, the department has been directed to make a list of 50 projects to be implemented on priority basis.
Major projects
The following are among the major projects which are to be implemented under KIIFB and the estimate:
• Kerala fiber optical network: Rs 823 crore
• 600-acre petrochemical and pharma park: Rs 1,264 crore
• 1,800-km coastal and hill highway project
• Transgrid power highway
• Lifescience park: Rs 301 crore
• High-tech school project: Rs 493.5 crore
Vizhinjam project, Light metro and Kannur airport are among the ongoing projects for which funds are to be sourced from KIIFB.
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