The first meeting of the newly-constituted Kerala Infrastructure Investment Fund Board (KIIFB) here on Monday approved as many as 48 projects costing Rs.4,004.86 crore. It also decided to set up an Infrastructure Fund Management Corporation (IFMC) to mobilise resources through advanced financial instruments approved by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI).
For the 48 projects under six departments, Rs.1,740.63 crore was provided as the first tranche. KIIFB Vice Chairman and Finance Minister T.M. Thomas Isaac told reporters that the executing agencies could immediately commence work on the projects once the minutes got approval.
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A sum of Rs.2,000 crore will be collected for Phase I projects through General Obligation Bonds, while SBICAPS will be roped in as market bank. NABARD will be approached for the Rs.4,000 crore needed for completing the remaining projects. Rs.1,600 crore is needed in the current fiscal, Dr. Isaac said.
The Rs.400 crore accruing from the annual petrol cess will go to the KIIFB. This will lend confidence to investors. “The second phase of the Vizhinjam project will come under the KIIFB,” the Minister said, adding that the KIIFB was a giant stride forward, and that the decisions of the board were the answers to its critics.
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Additional Chief Secretary (Planning) V.C. Senthil has been posted as Special Officer to submit a report on the setting up of the IFMC that will bring out Alternative Investment Fund, Infrastructure Debit Fund, and Infrastructure Investment Trust.
Additional Chief Secretary (Finance) K.M. Abraham, who is also the CEO and Member Secretary, said the project management had been made online, and that funds would be transferred online on completion of targets to avoid delays. The board members will have access to the projects for regular monitoring. The new projects will need project-specific special purpose vehicles for execution.
The Finance Minister said NRI (Non-Resident Indian) chits in association with the Kerala State Financial Enterprises (KSFE) and land bonds for land acquisition would come up before the next board meeting in January next. The board has also decided to work out the scenario for 10 and 20 years as the government gears up to mobilise Rs.50,000 crore in the next five years through the KIIFB for developing infrastructure.