Thiruvananthapuram | The UDF government has given a wide-ranging mandate to the committee headed by retired IAS officer Sudha Pillai to review the institutional, financial, governance and operational framework of the KIIFB.
The V D Satheesan-led government on Monday constituted the committee.
The review aims to strengthen Kerala Infrastructure Investment Fund Board's (KIIFB) long-term sustainability, improve governance standards and enhance its capacity to support the state's infrastructure development.
According to the Terms of Reference (ToR) issued by the government, the committee will examine the objectives, mandate and role originally envisaged for KIIFB under the project prepared by the Kerala State Planning Board with the assistance of SBI Capital Markets Ltd (SBI Caps) and approved by the state Cabinet.
The panel has also been asked to review any changes and deviations made subsequently to the original project, institutional framework and operational mandate approved by the government and assess their implications.
The committee will examine KIIFB's resource mobilisation strategy, including borrowings through Masala Bonds and other market instruments, and assess whether the borrowings were aligned with the objective of financing financially sustainable projects.
It will also review the cost of borrowings and examine whether the borrowing strategy resulted in avoidable financial costs or losses, including those arising from parking borrowed funds in lower-yielding deposits or investments.
Another key area of review is whether the mobilisation of resources by KIIFB complied with applicable constitutional, legal, financial and audit requirements.
The committee will also examine the propriety of assigning or diverting state revenues directly to KIIFB otherwise than through the Consolidated Fund of the State and identify any irregularities or systemic deficiencies, if any.
The panel will examine whether KIIFB funds have been directed towards addressing critical infrastructure gaps and whether the allocation of resources has been equitable across districts and sectors based on developmental priorities.
It will identify any expenditure, transaction or financial practice that, in its opinion, requires detailed examination from the perspective of audit, financial management or governance.
The committee has also been asked to examine the role of the Finance Department and the State Planning Board in the appraisal, approval, monitoring and oversight of KIIFB's inflows and outflows.
The review will include compliance with statutory and policy requirements, including allocations under the Scheduled Caste Sub Plan (SCSP) and Tribal Sub Plan (TSP), wherever applicable.
The panel will examine the relevance and sustainability of the continued functioning of KIIFB in the context of the Government of India's policy and regulatory framework governing off-budget borrowings by state governments and recommend an appropriate future institutional framework.
The committee will also review KIIFB's organisational structure, governance framework and human resource policies, including recruitment and appointment of officers and staff.
It has been asked to identify any improprieties or systemic deficiencies and recommend measures for restructuring the organisation, redeploying its institutional capacities within the government and deciding the future course of action regarding subsidiary or spin-off entities established by KIIFB.
The ToR also empowers the committee to examine any other matter incidental or consequential to its mandate, or any other issue it considers relevant for strengthening the institutional, financial and governance framework relating to KIIFB.