Kerala Assembly erupts over KIIFB as CM Satheesan blames previous Left government for financial mess
Thiruvananthapuram: The Kerala Legislative Assembly witnessed heated scenes on Wednesday after Chief Minister V.D. Satheesan accused the previous Left-led government of damaging the state’s finances through the Kerala Infrastructure Investment Fund Board (KIIFB).
Responding to an adjournment motion moved by former Finance Minister K.N. Balagopal over alleged delays in KIIFB projects, Satheesan said work worth Rs 70,000 crore was still pending, with no clear plan for raising the funds needed to complete it.
The Chief Minister said KIIFB had completed projects worth Rs 25,000 crore, while work valued at Rs 31,761 crore was currently under way.
He assured the House that the government would finish projects that had already begun. However, he argued that KIIFB lacked revenue-generating projects to meet its future financial commitments.
Satheesan also claimed that Kerala had lost Rs 12,000 crore in borrowing capacity after its borrowing limit was reduced.
The Chief Minister alleged that KIIFB had operated like an independent authority, recruiting staff and raising loans without sufficient oversight from the Finance Department.
He said the Board would now be brought under the department’s control.
Satheesan rejected the Opposition’s claim that an expert committee’s recommendations reflected a corporate agenda. He pointed out that Balagopal had himself raised concerns over KIIFB borrowing while serving as Finance Minister.
“How can an expert committee report be described as a corporate agenda?” he asked, challenging Balagopal to explain his earlier objections.
Balagopal strongly defended KIIFB, saying the agency had transformed Kerala’s infrastructure over the past decade.
He cited land acquisition for national highways, road development in hilly areas, and the proposed Wayanad tunnel road as examples of projects made possible through KIIFB funding.
Calling the UDF the “Chathiyan Chanthu” that had destroyed KIIFB, Balagopal rejected the government’s claims about stalled projects and demanded a detailed discussion on the expert committee report.
Leader of the Opposition Pinarayi Vijayan accused Satheesan of pursuing a corporate agenda and said the Chief Minister became uncomfortable whenever KIIFB was raised.
The confrontation has put KIIFB’s finances and the fate of pending infrastructure projects at the centre of Kerala’s political debate.
While the government pledged to complete ongoing works, it also questioned how the remaining Rs 70,000 crore in commitments would be funded without a sustainable revenue model.
(Inputs from IANS)