The committee led by former bureaucrat Sudha Pillai tasked with reviewing the Kerala Infrastructure Investment Fund Board (KIIFB) has said it finds “no case” for the continuation of KIIFB as a body that raises funds and finances projects, and that its functioning has “significant detrimental impact on the future fiscal trajectory of the State.”
The original rationale for KIIFB – raising capital without using the State’s borrowing space – “has been extinguished” since its borrowing is now counted as direct borrowing by the State, said the panel’s 96-page report which Chief Minister V.D. Satheesan tabled in the State Legislative Assembly on Thursday (October 15, 2026).
Sharply critical of aspects such as KIIFB’s off-Budget borrowings, the ratio of revenue-generating projects in the total basket and the routing of motor vehicles tax and petroleum cess to KIIFB, the report has recommended a performance audit of KIIFB by the Comptroller and Auditor General of India or the Accountant General, Keralam, covering a 10-year-period from 2016-17 to 2025-26. Further, the KIIFB (Amendment) Act, 2016 should be amended to prevent KIIFB from, henceforth, raising funds through market borrowings, the report said.
It has asked the government to take over the repayment obligations arising from the bonds, debentures and loans of KIIFB by making adequate provisions in the Annual Budget. Once the government takes over the debt obligations, it should cancel the order routing a share of revenue from motor vehicles tax and petroleum cess to KIIFB, the report said.
Ongoing infra projects
Infrastructure projects already started by KIIFB and are at various stages of implementation should be completed by the government departments concerned with the support of implementing agencies. The funds required for completing these projects should be earmarked as capital expenditure in the Annual Budget over the next five years, starting 2026-27.
Comments
0 commentsNo comments yet — be the first.