The Chief Minister said that works worth ₹31,761 crore taken up as part of KIIFB, which are under various stages of implementation, will continue.
| Photo Credit: The Hindu
The Opposition Left Democratic Front (LDF) staged a walkout from the Kerala Legislative Assembly on Wednesday after Speaker Thiruvanchoor Radhakrishnan disallowed its notice for an adjournment motion on several ongoing developmental projects coming to a standstill after the State government’s rethink on the functioning of Kerala Infrastructure Investment Fund Board (KIIFB).
The Speaker declined to admit the adjournment motion based on Chief Minister V.D. Satheesan’s statement that all the ongoing works as well as tendered work under KIIFB will go ahead as planned. The Chief Minister said that works worth ₹31,761 crore taken up as part of KIIFB, which are under various stages of implementation, will continue.
“Even if the government changes, we are under legal obligation to continue these projects. The government is saddled with ₹70,000 crore of repayments due to KIIFB. This will be counted in the State’s borrowing limits. The government will struggle in the fourth quarter. Even former Finance Minister K.N. Balagopal who moved this motion is aware of this fact. This is why he had opposed the government providing sovereign guarantee for KIIFB borrowings,” said Mr.Satheesan.
Leader of the Opposition Pinarayi Vijayan accused the Congress-led UDF government of using the Sudha Pillai Committee to “repeat the allegations levelled by the Union government” to destroy KIIFB.
Panel report is a political document: Pinarayi
“The previous LDF government had fought legally against the Union government’s act of including KIIFB off-Budget borrowings under the State government’s borrowing limit. Legal experts have observed that the Union government’s move was unconstitutional. The case is currently under the consideration of the Supreme Court’s Constitution Bench. However, the Chief Minister’s as well as the Sudha Pillai committee’s stand will weaken our stand in the Supreme Court. The committee report is a political document that does not even utter a single word against the Union government’s wrong stand regarding KIIFB. Over 1,500 basic infrastructure development projects will end if KIIFB is destroyed,” he alleged.
He said that the LDF government decided to activate KIIFB at a time when the State government had for years been facing a shortfall of money for developmental works. The Assembly had unanimously approved the move too. The State’s capital expenditure increased from 7.6% in 2013-16 to 11% after projects began to be implemented under KIIFB.
“The committee has counted the money spent for building hospitals and schools as losses. A smokescreen is being attempted to be created over the land acquisition expenditure even though all land acquisition was done as per the Land Acquisition Act 2013 under the Congress-led UPA government (at the Centre). To compare the land value under this to the market value, as the committee does, is illogical. The Chief Minister claimed that no revenue-making projects were created under KIIFB. However, 22 projects worth ₹18,396 crore are revenue generating, from which the government received over ₹4,000 crore revenue in the previous financial year,” said Mr. Vijayan.
Published – October 28, 2026 02:52 pm IST
