State government plans major KIIFB reforms, may end row with Centre and CAG

THIRUVANANTHAPURAM: The Kerala government may soon end its long-standing clash with the Central Government and the CAG over KIIFB by introducing major overhauls to the institution. As demanded by the Centre and the CAG, KIIFB's expenditure is likely to be included as part of the state budget. Until now, KIIFB has functioned largely as an independent entity with limited direct government control. The government now plans to bring it under full administrative oversight.

The revised policy is expected to prevent KIIFB from taking up non-revenue-generating construction projects. Instead, priority may be given to projects that can generate income, such as toll roads, bridges, and revenue-earning buildings. At a KIIFB board meeting held in the presence of the Chief Minister on Saturday, officials were directed to prepare proposals for a complete restructuring of the institution with a focus on increasing revenue.

The government also plans to conduct a comprehensive audit of KIIFB's past activities and assess all future financial liabilities. The new UDF government reportedly disagrees with KIIFB's previous method of raising funds, arguing that it affected the state's borrowing limits.

An expert committee will study how KIIFB should be restructured in the future. A separate white paper on KIIFB is also expected to be prepared. The committee currently examining Kerala's financial condition may review this report as well.

KIIFB is expected to repay around Rs 16,600 crore in debt over the next five years. The UDF had previously criticised the use of KIIFB funds for publicity campaigns during the LDF government's tenure. The new government also believes that employees receive high allowances, and there is a possibility that these benefits could be reduced. Following the change in government, former KIIFB CEO K M Abraham had resigned from his position. Currently, Additional Director Mini Antony is serving as the interim CEO. KIIFB was revived in 2016 during the first government led by Pinarayi Vijayan.