KIIFB nod for 64 more projects worth ₹5,681.98 cr.

The Kerala Infrastructure Investment Fund Board (KIIFB) has approved funding for 64 more projects worth ₹5,681.98 crore. This takes the total funding approvals by KIIFB to ₹80,352.04 crore and the total number of approved projects to 1,057.

The decision to clear the 64 projects was taken at the 45th board meeting of KIIFB chaired by Chief Minister Pinarayi Vijayan on Monday and the executive committee meeting held on February 25, Finance Minister K.N. Balagopal said.

The list includes 36 projects under the Public Works department worth ₹3,414.16 crore, six projects under the Health department worth ₹605.49 crore, nine under the Higher Education department worth ₹600.48 crore, and three projects under the Water Resources department worth ₹467.32 crore.

Major individual projects are the following: construction of educational complex in Pinarayi village (₹232.05 crore), Elamkulam sewage treatment plant (₹341.97 crore), woman and child block at the Government Medical College Hospital, Thrissur (₹279.19 crore), nine projects that are part of the hill highway (₹582.82 crore), land acquisition for the Aluva-Perumbavoor road development (₹262.75 crore), and land acquisition for the Trivandrum Engineering Science and Technology (TrEST) Research Park at Vilappilsala (₹203.93 crore).

As per the Asset-Liability Management (ALM) model of KIIFB, it need to raise ₹9,000 crore from financial markets in the 2023-24 fiscal.

KIIFB has ₹6,959 crore in its possession in various accounts and ₹3,632 crore in approved loans that are yet to be availed.

Mr. Balagopal said only the most important initiatives had been added to the KIIFB basket. On how the KIIFB proposal to raise fresh loans would impact the State’s borrowing limit, the Finance Minister said the government expected a favourable stand from the Centre on the matter. Of the projects approved by KIIFB so far, projects worth ₹12,089.29 crore had been completed, he said.

The Centre had insisted that KIIFB borrowings were direct liabilities of the State, a stand that had affected the State’s borrowing power. ‘‘We have written to the Prime Minister asserting the State’s stand on the issue. the arguments cannot be ignored and we expect a favourable stand,’‘ Mr. Balagopal said.

At the same time, the State cannot take a ‘‘defensive approach’‘ on account of the Centre’s decision.

Meanwhile, KIIFB CEO K.M. Abraham pointed out that KIIFB did not face any restrictions from raising funds from the markets. However, the Centre’s stand on KIIFB borrowings was an element which put pressure on the State government.