KIIFB and the promise
Kerala Infrastructure Investment Fund Board [KIIFB] has been drawing news headlines for a long time. It was mostly for all the good that it was doing. But recently it is all for the wrong reasons. Kerala Infrastructure Investment Fund Board [KIIFB] has been existing since 1999. In 2016, the current government reconstituted the organisation to a corporate body enabling it to attract investments to the state to fund infrastructure development projects. Kerala government is guaranteeing most part of the payments to KIIFB. It’s like, if KIIFB funds a road project, Kerala government will return the money to KIIFB in instalments over the years. KIIFB will attract investments globally at competitive rates making the cost of funds to the government much better than what is otherwise available from financial institutions in India. The need for such a novel financial intervention was the debt pile Kerala was carrying. The fiscal norms in India were not allowing the Kerala government to take more...