Former CAG Vinod Rai FTAC Chairman of Kerala

CPI-M led LDF government in Kerala has ropped in former Comptroller and Auditor General Vinod Rai as the Chairman of Fund Trustee Advisory Commission, which would ensure proper use of resources under the Kerala Infrastructure Investment Fund Board (KIIFB).

The decision to appoint Vinod Rai as Chairman was taken at the first meeting of KIIFB chaired by Chief Minister Pinarayi Vijayan, State Finance Minister T M Thomas Issac said.

Former Reserve Bank of India deputy governor Usha Thorat and former NABARD Chairman Prakash Bakshai are the other two members of the Commission, that would have a two-year tenure.

Making a major step forward in attracting private investments, the LDF government had brought in an amendment to the KIFB Act, among other things to mobilise funds outside the budget to boost investment in infrastructure sector.
 

Talking to reporters after the meeting, Issac said the Board gave sanction to 48 projects with a total outlay of Rs. 4004.86 crore and an amount of Rs.1740.63 crore would be released as first instalment for the projects.

Resources for the first phase to a tune of Rs.2000 crore would be raised through General Obligation Bond, he said.

'Definitely the present decision is a strategic shift to attract private investments to boost infrastructure. Changes have taken place in the country. The objective is to tap the opportunities', Issac said in reply to a question.

The plan was to have investments to a tune of Rs.50,000 crore in various sectors in the next five years through KIIFB, he said.

Infrastructure Fund Management Corporation would be formed to work out details of products for raising funds from the market, he said.

New resource mobilisation mechanism, that has the approval of RBI and SEBI, such as Alternative Investment Fund, Infrastructure Debt fund and Infrastructure Investment Trust would also be formed, he said.

It was decided to start an 'NRI Chit' fund under the Kerala State Financial Enterprises as part of resource mobilisation, he said.

To a question on GST, Issac said Kerala would introduce the new tax regime in the next Finance Bill in February as GST would be rolled out from April next.

Asked whether state assembly would ratify the GST Bill passed by the Parliament, Issac said there was no need for it now as the bill had been approved by President.