Stories
Panel Recommends Ending KIIFB Role As Borrowing Agency
- •A review committee headed by retired IAS officer Sudha Pillai recommended ending KIIFB's role as a separate fund-raising and project-financing body.
- •The panel noted that KIIFB's original rationale of raising funds without affecting the state's borrowing space has lost relevance as its loans are now counted against that limit.
- •The committee recommended that the Comptroller and Auditor General conduct a performance audit of KIIFB covering the 10-year period from 2016-17 to 2025-26.
- •The report proposed that the state government take responsibility for KIIFB's existing debt and fund the completion of prioritized projects through the annual Budget.
Key Questions Answered
The committee recommended ending KIIFB's role as a separate fund-raising and project-financing body because its borrowings are now counted against the state's borrowing space. It proposed that the state government take direct responsibility for KIIFB's existing debt and fund prioritized project completions through the annual Budget.
The panel recommended that the Comptroller and Auditor General (CAG), through the Accountant General's office in Keralam, conduct a performance audit of KIIFB under Section 14(1) of the CAG's DPC Act, 1971. This audit would cover the ten-year period from 2016-17 to 2025-26.
The committee noted that the project's estimated cost could rise from Rs 12,727 crore to around Rs 15,000 crore. It also flagged the lack of a detailed project report when the board approved it and questioned whether the final locations were chosen after a comprehensive assessment.
