Keralam Govt Not Discontinuing All KIIFB Work: CM Satheesan

Thiruvananthapuram: Keralam Chief Minister VD Satheesan on Wednesday refuted the opposition LDF's allegations that KIIFB projects have been sabotaged or stalled, claiming that his government was going ahead with works of over Rs 31,000 crore initiated by that organisation.

Satheesan, at the same time, claimed that loans taken by the Kerala Infrastructure Investment Fund Board (KIIFB) have pushed the state into an economic crisis and planned funds were cut short by 50 per cent by the fourth quarter of three financial years during LDF rule.

Rejecting his claims, Leader of Opposition in the state assembly, Pinarayi Vijayan, said that Keralam set an example of public development through KIIFB funds and the current administration was trying to sabotage that in favour of the corporatisation and privatisation agenda of the Centre.

Vijayan also accused the UDF government of "surrendering" before the Centre's encroachment into the state's financial freedom through its various economic policies, including cutting short Keralam's borrowing limits.

He made the claims in his walkout speech after Speaker Thiruvanchoor Radhakrishnan denied permission to the adjournment notice moved by opposition MLAs KN Balagopal and G R Anil contending that various KIIFB projects were stopped or stalled and seeking to discuss the expert panel report against its functioning.

In his address, Vijayan also termed the report as "retrograde" and said the panel analysed KIIFB's functions based on the yardstick of profit-oriented commercial entities.

The Marxist veteran said that money spent on developing schools, hospitals, roads and other basic infrastructure was not for making profit, but "an investment in public welfare".

"Shutting down KIIFB will result in the ending of 1,500 basic infrastructure development projects. I urge the government and the CM not to view it from the point of profit generation as it is an investment in public welfare," he said.

Regarding Vijayan's corporatisation agenda remark, Satheesan hit back by questioning whether the bell that the Marxist veteran rang at the London Stock Exchange (LSE) was that of socialism.

Vijayan was the first sitting Indian Chief Minister to ring the ceremonial opening bell of the LSE on May 17, 2019, to mark the official listing of masala bonds issued by KIIFB.

Earlier, Satheesan, declining to discuss the notice, claimed that repayment of KIIFB loans resulted in leakage of funds from the treasury, which amounted to "looting" of taxpayers' money, which would be investigated and those responsible for it will be punished.

He termed the allegations as "baseless", claiming that works initiated by KIIFB as well as projects where no agreement or contract was entered into, all totalling over Rs 31,000 crore, were going to be taken forward by the current government.

He also said that the KIIFB borrowings for these projects and others for which approvals were granted during LDF rule would put an additional burden of Rs 70,000 crore on the government.

"This in turn will further reduce the state's borrowing limit, which has already been cut short by Rs 12,000 crore as compared to the previous year. This is due to the KIIFB borrowings," he contended.

The CM also said that there was no "corporatisation agenda" behind the expert panel report, which revealed "shocking facts" about how KIIFB operated as a "separate empire" while all its loans were guaranteed by the state.

He said that model will no longer be allowed to continue as the entity will now function under the Finance Department of the state government.

Satheesan also pointed out that major infrastructure projects like Kochi Metro, Infopark, Technopark, Cochin International Airport, Kannur Airport and Vizhinjam port were all built without any KIIFB support.

He also claimed that according to another expert panel report submitted before the Kerala High Court regarding the land acquired by KIIFB in Kannur, a large portion of it was quarried areas where huge amounts of construction waste and plastic had been dumped, making them unfit for any kind of construction.

On this issue, Vijayan said that land around Kannur airport was acquired with a long term view as land may not be available there in future, as is the situation now near Cochin, Thiruvananthapuram and Calicut airports of the state.

Moving the motion, Balagopal defended KIIFB, claiming that KIIFB-backed funding has been crucial for major infrastructure projects across Keralam, including national highways, industrial corridors, and public buildings.

Countering criticisms over debt and financial management, he compared long-term infrastructure funding to taking a home loan to build vital assets for the future.

Expressing concern that political opposition and legal challenges could stall ongoing developmental works, he called for constructive discussions instead of attempts to undermine the scheme.