THIRUVANANTHAPURAM: With Covid-19 affecting the overall revenue in the last financial year, the state government significantly reduced the share of funds to Kerala Infrastructure Investment Fund Board (KIIFB) for 2021-22, as against the funds sought by it.
As per top government sources, while KIIFB sought Rs 2,400 crore for 2021-22 for fulfilling its project commitments, the state government has cleared only Rs 1,560 crore till now. It is reliably learnt that the government has not yet taken a call on the remaining Rs 840 crore. “The state government’s income from motor vehicle tax and petroleum cess in the last financial year was hit due to the pandemic. The obligatory share to KIIFB had to be reduced correspondingly. KIIFB asked for Rs 2,400 crore to meet its expenses but the government has not taken a final call. There are chances that the balance amount may be sanctioned as a loan from the government,” sources said.
The KIIFB received Rs 1,921.11 crore, as its share from petroleum cess received by the state till March 31, 2020. As per KIIFB’s annual report of 2019-20, the government provided Rs 3,651.74 crore from motor vehicle taxes and Rs 2,634.52 crore as grants. As per KIIFB (Amendment) Act, 2016, government set apart 10% of motor vehicle tax in 2016-17 for KIIFB, increasing it by 10% every year until it reaches 50% in the fifth year. The cess levied on petrol and diesel is also given to KIIFB, before Dec 31 every year and paid on an escrow basis from state treasury to KIIFB accounts automatically. The government channelled Rs 8,207.07 crore to KIIFB under these three heads till March 31, 2020, as per the audit report.
Till May this year, KIIFB approved 903 projects with an outlay of Rs 63,224.42 crore. These projects comprise both physical and social infrastructure across a range of sectors, including hospitals and health centres, schools and colleges, roads and bridges, water supply and sanitation, electricity and communication networks, industrial parks, cultural complexes, etc. Of these, 488 projects worth Rs 21,309.68 crore were tendered and 27 projects, worth Rs 732 crore, and 160 project components worth Rs 560.29 crore have been commissioned.
In addition to Rs 2,150 crore raised through masala bonds at an interest rate of 9.723%, KIIFB availed long-term loans from Nabard (Rs 565 crore at 9.30%), State Bank of India (Rs 1,000 crore at 9.15%), Indian Bank (Rs 500 crore at 9.15%) and Union Bank of India (Rs 500 crore at 8.95%).
