THIRUVANANTHAPURAM: It will be too much to expect from a state government that does not have money to pay even welfare pensions to fund multi-crore big ticket infrastructure projects.
This impoverished condition has now prompted the state to think out of the box and, like any corporate entity, has decided to appoint a consultant or a consultancy agency to mobilise funds for infra projects.
The state government has approved a plan to issue general obligation bonds against unconditional government guarantee and revenue bonds with structured payment mechanism for medium term requirement.
This will involve meeting several procedural requirements including making necessary amendments in the rules and regulations governing the Kerala infrastructure investment fund board and Kerala road fund board so that they can act as sponsors.
“The government also intends to initiate steps to raise funds to meet long term requirements through alternative investment funds (AIF), infrastructure investment trust (InVIT), infrastructure development fund (IDF) and build the institutional framework needed for this,” a top finance department source said.
The process involved in realising these will have to be carried out by the consultant, who will be selected through a competitive bidding process.
The consultant will also have to serve as the advisor and consultant on financing projects of the government, local bodies and government-agencies.
It will have to provide objective comments for rectifying deficiencies in the project reports, if any, and hand-hold such agencies in submitting project reports.
Further, it will have to advise the government on the appropriateness of the investment vehicle based on an analysis and assessment of the investment vehicle, whether AIF or InVIT or bonds, to achieve goals.
