Thiruvananthapuram: The Kerala government has constituted an expert committee to conduct a comprehensive review of the institutional, financial, governance and operational framework of the Kerala Infrastructure Investment Fund Board (KIIFB) and recommend measures for its restructuring.

The decision was taken with the aim of strengthening KIIFB’s long-term sustainability, improving governance standards and capacity to support infrastructure development in the state, according to a government order issued by the Finance Department on Monday.

The five-member committee will be headed by former Finance Secretary Sudha Pillai, IAS. Other members include former Federal Bank MD and CEO Shyam Srinivasan, former chairman of the Institute of Chartered Accountants of India Nilesh Vikamsey, former Director of the Audit Board of the Comptroller and Auditor General of India H Shubhalakshmi Narayanan, and former Revenue Secretary of the Government of India Dr Tarun Bajaj.

The committee will examine KIIFB’s original objectives and review changes made to its 'institutional framework and operational mandate' over the years. It will also assess the resource mobilisation strategies adopted by KIIFB, including various borrowing instruments. The committee will also check whether these borrowings were aligned with the objective of financing financially sustainable projects.

The panel will also review the cost of borrowings, including funds raised through Masala Bonds and other market instruments, and examine whether it resulted in avoidable financial costs or losses. It will look into issues related to the utilisation of funds- including whether KIIFB investments addressed critical infrastructure gaps and whether allocations were equitable across districts and sectors.

The terms of reference also include examining whether KIIFB’s resource mobilisation complied with constitutional, legal, financial and audit requirements, including concerns related to the assignment of state revenues directly to KIIFB instead of routing them through the Consolidated Fund of the State.

The committee will further examine KIIFB’s governance structure, recruitment and appointment processes, human resource policies, and the future course of action regarding subsidiary entities established by KIIFB. It will also assess the relevance and sustainability of KIIFB’s continued functioning in the context of the Centre’s regulatory framework on off-budget borrowings by states.

For facilitating the committee’s work, an internal coordination and secretariat mechanism has been set up under the Additional Chief Secretary (Finance Department). The committee can also seek assistance from institutions, including the Centre for Development Studies (CDS), Thiruvananthapuram, and the Gulati Institute of Finance and Taxation (GIFT).

The committee will have a tenure of three months from the date of the government order.