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Though KIIFB has announced projects worth Rs82,283 crore so far, only an amount of Rs26,926 crore has gone into the KIIFB projects as real disbursements
THIRUVANANTHAPURAM: The Government of Kerala (GoK) owes Rs9,436.26 crore to the Kerala Infrastructure Investment Fund Board (KIIFB) as on September 30, 2023.
However, KIIFB is hopeful of receiving the amount from the government. In its note to the latest financial statements, KIIFB has stated that “the balances shown under statutory contribution receivable from GoK of Rs9436.26 is considered good and recoverable by the management. “
Transfers from state government to KIIFB are as provided as part of the KIIF Act (as amended in 2016). As per Section 7 of the KIIFB Act, the government shall make budgetary allocations equivalent to share of the motor vehicle tax (MVT) and the entire quantum of fuel cess collected in the state in the previous year.
Moreover, as per the KIIF Act 2016, all the borrowings made by the Board are guaranteed by Government of Kerala (GoK). But the Centre’s stand that the borrowings guaranteed by the state government will be regarded as the off-balance sheet borrowings of the government has put the government in a fix.
Already the government’s borrowing wings have been clipped by the Centre by pruning the borrowing ceiling for the financial year 2023-24 (FY24) on account of the debt raised by KIIFB using the government guarantee. The chief minister, Pinarayi Vijayan and the finance minister, KN Balagopal, have lashed out at the Centre against cutting down the state’s borrowing limit.
Though KIIFB has announced projects worth Rs82,283 crore so far, only an amount of Rs26,926 crore has gone into the KIIFB projects as real disbursements . According to market experts, raising the remaining huge amount to fund the projects still unfunded could be challenging.
Curiously, KIIFB has disbursed only Rs3298 crore during the past eight months since March this year. This doesn’t mean that KIIFB has exhausted all its funds.
KIIFB has maintained Rs5925 crore as cash and cash equivalent and Rs 600 crore as investments with mutual funds (MFs) as of September 30, 2023.
“Also, with Rs2498 crore corpus fund along with fixed deposits and debt service reserve account (DSRA), there is adequate liquidity maintained,” explained KIIFB,”
The total borrowings of KIIFB have increased from Rs17,772 crore as in March 2023 to total Rs18,827 crore as of September 30, 2023, meaning that KIIFB’s borrowings in the first six months of the current financial year have grown only by Rs1054 crore
