Kerala cabinet today approved an ordinance to make changes in the Kerala Infrastructure Investment Fund Board (KIIFB) to raise funds to the tune of Rs 50,000 crore outside the budget for taking up infrastructure projects.
The ordinance was in accordance with the proposal in the first budget of the government presented by the Finance Minister T M Thomas Issac in the assembly last month to raise funds under the 'anti-recession' package for taking various infrastructure projects.
There was also a proposal in the budget to make the Board a centralised agency to raise funds, review and implement basic infrastructure projects including those under PPP route.
As per the new law,Chief Minister would be the Chairman of the Infrastructure Board. There would be an executive committee headed by Finance Minister would function under the Board. The committee would review and implement the projects approved by the Board, an official release said here.
Government was formulating schemes for basic development projects to the tune between Rs 24,000 crore to Rs 50,000 crore, it said.
The funds would be augmented for land acquisition,building bridges, roads, Industrial parks and projects related to tourism sector. Government would provide guarantee to the funds raised by the Board.
Under the Board, an autonomous Funds Trustee and Advisory Commission, which would function as a regulatory body. The board also would be entrusted with the task of land acquisition for development projects.
The government has also approved schemes for issuing general obligation and revenue bonds to raise funds for short term needs, and also for augmenting resources for taking long term purposes under Alternate Investment Fund, Infrastructure Investment Trust and Infrastructure Debt Fund.
