KIIFB to raise Rs 9,000 cr to fund 64 more projects
The Kerala Infrastructure Investment Fund Board (KIIFB), the State Government’s funding agency, will raise Rs 9,000 crore in additional loans to fund 64 new projects worth Rs 5,681 cr. The decision was taken at an executive meeting of the KIIFB, presided by Kerala Chief Minister Pinarayi Vijayan .
With this, the KIIFB is tasked with implementing a total of 1,057 projects worth Rs 80,352 cr. So far, the agency has spent Rs 23,095 cr for various development schemes. It so far completed projects worth Rs 12,089 cr, Finance Minister K N Balagopal said. The State Government has decided to let KIIFB borrow more money despite the Central Government deciding to deduct its market borrowings from the loans allowed for the State.
As reported earlier the Central Government has decided to include the Rs 12,562 crore loan availed by the KIIFB and other institutions in 2021-22 in the borrowings of the State. Rs 12,562 crore will be deducted from the amount that the State Government is eligible to borrow. The sum will be deducted in four years in four equal installments of Rs 3,140 crore, restricting the borrowing limit by the state.
Though this deduction will place the treasury under tremendous strain, the State Government feels that the loans are essential to continue the functioning of KIIFB. The State hopes that the Centre will take a favourable decision on the letter sent to it by the chief minister requesting it not to consider the loan taken by KIIFFB as the loan of the State Government.
With this, the KIIFB is tasked with implementing a total of 1,057 projects worth Rs 80,352 cr. So far, the agency has spent Rs 23,095 cr for various development schemes. It so far completed projects worth Rs 12,089 cr, Finance Minister K N Balagopal said. The State Government has decided to let KIIFB borrow more money despite the Central Government deciding to deduct its market borrowings from the loans allowed for the State.
As reported earlier the Central Government has decided to include the Rs 12,562 crore loan availed by the KIIFB and other institutions in 2021-22 in the borrowings of the State. Rs 12,562 crore will be deducted from the amount that the State Government is eligible to borrow. The sum will be deducted in four years in four equal installments of Rs 3,140 crore, restricting the borrowing limit by the state.
Though this deduction will place the treasury under tremendous strain, the State Government feels that the loans are essential to continue the functioning of KIIFB. The State hopes that the Centre will take a favourable decision on the letter sent to it by the chief minister requesting it not to consider the loan taken by KIIFFB as the loan of the State Government.
