A New ‘Kerala Model' For Infra Growth

The cash-rich Kerala Infrastructure Investment Fund Board is well-placed to deal with challenges arising out of Covid-19

- S Adikesavan

Even as States have been struggling to come to terms with the financial impact of COVID-19, Kerala has been first off the block with a financial package of ₹20,000 crore. Although questions can be asked about where the money will come from, Kerala need not worry much at least with respect to one area — funds for infrastructure spend, after the lockdown ends.

The Kerala Infrastructure Investment Fund Board (KIIFB), floated by the State government in 2009, is right now sitting on cash — just when it might be required.

Though the KIIFB lay low for a few years since 2009, an amendment to the Kerala Infrastructure Investment Fund Act in 2016 gave the much-needed elbow room for State government guarantees, and the idea then took wings. The famed “Kerala model” of social development has been universally acknowledged as distinctive, with indicators comparable to that of the developed countries. The KIIFB is the “new Kerala model for infra development”.

In 2016, the KIIFB spread its wings with the State’s Finance Minister Thomas Isaac and former Chief Secretary, KM Abraham, steering it for resource mobilisation, with good structures in place.

Among State Finance Ministers, Thomas Isaac has stood out for his pragmatism, anti fiscal fundamentalists stance, and clarity of views, even among those who may differ with his politics. The CEO of KIIFB, Abraham, cut his financial teeth in the Sahara issue while being Director of SEBI, withstanding threats for the sake of duty.

The KIIFB has been turned into an instrument which can be used by the State, no matter who is in power, for development. Chief Minister Pinarayi Vijayan’s recent plea that the KIIFB should not be seen only through a political prism is therefore valid.

Infra push needed