Alappuzha (Kerala) | Independent MLA G Sudhakaran, who left the CPI(M) and won from Ambalapuzha assembly seat with UDF support, on Saturday said that discarding KIIFB would not be an "intelligent move" as it has helped implement many projects across Kerala.
Sudhakaran said that it was turned into a parallel government by the bureaucrats who were at its helm as they were given too much freedom.
"That is what resulted in the current crisis in connection with it," he said, adding that the Kerala Infrastructure Investment Fund Board (KIIFB) ought to have been under the control of the government and the Finance Department.
Sudhakaran said that Chief Minister V D Satheesan should study all aspects of it and if required, reinvent it in accordance with the current times.
"But discarding it completely would not be an intelligent move," he contended.
He further said that the loans taken by KIIFB have to be only repaid over a period of 40 years.
"So, when new infrastructure development occurs, it will lead to an increase in commercial activity which in turn will generate revenue for the state. Therefore, the loans can be repaid without any difficulty," he further said.
Satheesan, in his Budget speech on Friday, had said that KIIFB's reliance on off-budget borrowings at higher interest rates has increased the state's debt burden and created macroeconomic concerns.
To address the issue, he had announced the constitution of an Expert Committee to recommend structural reforms and overhaul KIIFB's operational framework.
