KOCHI: The Kerala Infrastructure Investment Fund Board (KIIFB) is here to stay. At least, that’s the message the government has given. In a move indicating its plans to have a permanent presence, KIIFB has announced that it is establishing its own big office building near the secretariat in Thiruvananthapuram. The move comes at a time when the Union government has made attempts to clip its wings.
In an expression of interest (EoI) last week, KIIFB said it proposes to acquire office space/building with a space of 65,000-100,000 sq ft with “clear and unambiguous title deeds” in the state capital on outright purchase basis or on long lease. The space/building should be situated within 1km of the secretariat, said the EoI. Currently, KIIFB functions from a rented space in Felicity Square on MG Road, Statue.
The premises should have the facility for parking 25-30 cars and 150-200 two-wheelers at once. The EoI comes at a time when the infra-funding agency’s future was under a cloud after the Centre said loans taken by KIIFB would come under the state’s overall borrowing limit.
Earlier, the Comptroller and Auditor General (CAG) said KIIFB’s ways of raising funds were unconstitutional and an encroachment by the state on the powers of the Union government. KIIFB had raised Rs 2,150 crore through rupee-denominated ‘masala bonds’ and listed the bonds on the London Stock Exchange in March 2019.
KIIFB, which was established with the main objective of providing investment for critical and large infrastructure projects in Kerala, received Rs 2,470 crore from the government from motor vehicle tax and petroleum cess (levy) in the 2022-23 financial year. It is expected to receive Rs 2,810 crore in the current fiscal year, according to rating agency S&P Global.
Meanwhile, Kerala continues to seek clarity on the open market borrowing limit of Rs 20,500 crore imposed on it for fiscal 2024, said S&P Global. “If maintained, this cap may begin to limit KIIFB’s future borrowing programme,” it said.
Top KIIFB officials told TNIE that the move to establish its permanent office space showed the state government’s confidence in the agency to deliver the goods, and on its long-term existence notwithstanding recent uncertainties.
A2,470 cr from motor vehicle tax and petroleum cess in the 2022-23 financial year was given to KIIFB by the state government. It is expected to receive D2,810 crore in the current fiscal year.