Thiruvananthapuram: Although the Kerala Infrastructure Investment Fund Board (KIIFB), which served as the backbone of the state's development activities for a decade, cannot be dissolved abruptly, a government-appointed expert committee is set to review its resource mobilisation model. The panel was constituted following restrictions imposed by the Central Government on off-budget borrowings, tasking them with assessing KIIFB's current relevance and exploring alternative financial mechanisms. Chaired by retired IAS officer Sudha Pillai, the committee is mandated to submit its recommendations to the government within three months.

According to disclosures in the state government's white paper, KIIFB carries a debt liability of approximately ₹21,000 crore. Restructuring the entity remains a complex challenge, given that funds still need to be secured for ongoing projects valued at ₹35,000 crore.

11 terms of reference for the panel

The expert committee has been assigned 11 primary terms of reference. The initial assessment will evaluate whether KIIFB has successfully fulfilled its original objectives and role. The panel will also investigate whether project executions deviated from the frameworks approved by the government.

Furthermore, the committee will scrutinise the resource mobilisation strategies adopted by KIIFB through various borrowing channels to determine if the capital was directed into financially sustainable projects. A key task involves reviewing the issuance of Masala Bonds and other market-linked borrowing methods to identify whether they resulted in financial losses for the state exchequer.

The inquiry will also verify whether the redirection of state revenue to KIIFB aligned with constitutional provisions as well as financial and legal regulations. Ensuring that the mobilised funds were strictly utilised for development activities forms another core mandate, alongside evaluating whether there was equitable distribution of funds across various districts and developmental sectors.