KIIFB restructuring ordinance approved by Cabinet

THIRUVANANTHAPURAM: The state cabinet has given approval for the Kerala Infrastructure Investment Board (KIIFB) amendment ordinance. The amendment has been brought in to restructure the board.

The chief minister will be the chairman and finance minister will be the vice-chairman of KIIFB, which has been revamped to execute major infrastructure project planned under anti-recession package announced in the budget. The board will have chief secretary, finance secretary, finance secretary-expenditure and resources will be the board members.

For the fund management an executive committee will be constituted with finance minister as chairman. This committee will have chief secretary, finance secretary, finance secretary (expenditure) and three independent members. Another committee comprising reputed banking heads and economists will be constituted to monitor and ensure transparency in fund mobilisation and utilisation.

As per the budget decision it will be ensured that 10% of the motor vehicle tax and 1% of the petrol cess will go to KIIFB. Apart from this other sources of fund mobilisation will be explored by the executive committee. Till now Rs 800 crore has reached the KIIFB account, according to finance department officials.

It was in 199 that KIIFB was formed and has been lying as defunct unit all these years. Now finance minister Thomas Isaac has come out with an anti-recession package for which KIIFB will be playing the crucial role of und mobilisation. It is expected to mobilise Rs 2000 crore by the KIIFB which would be utilised for various infrastructural projects in the state.

The government is planning to undertake the construction and maintenance of roads, construction of bridges and execution of various irrigation projects from the funds mobilised by KIIFB. The finance minister had said in the budget speech that since the state is going through a worst financial position, the government has no other option but to go for fund mobilisation like this to be utilised for projects under various departments.