Thiruvananthapuram | Keralam Chief Minister V D Satheesan on Tuesday refuted the opposition LDF's allegations that KIIFB projects have been sabotaged or stalled, claiming that the government was going ahead with works of over Rs 31,000 crore initiated by that organisation.
Satheesan, at the same time, said that loans taken by the Kerala Infrastructure Investment Fund Board (KIIFB) pushed the state into economic crisis where plan funds were cut short by 50 per cent by the fourth quarter of three financial years.
He also claimed that repayment of KIIFB loans resulted in leakage of funds from the treasury, which amounted to "looting" of taxpayers' money, which would be investigated and those responsible for it will be punished.
The CM was responding to an adjournment notice moved by opposition MLAs K N Balagopal and G R Anil, claiming that various KIIFB projects were stopped or stalled and seeking to discuss the report against its functioning.
Satheesan termed the allegations as "baseless", claiming that works initiated by KIIFB as well as projects where no agreement or contract was entered into, all totalling over Rs 31,000 crore, were going to be taken forward by the current government.
He also said that the KIIFB borrowings for these projects and others for which approvals were granted during LDF rule, would put an additional burden of Rs 70,000 crore on the government.
"This in turn will further reduce the state's borrowing limit, which has already been cut short by Rs 12,500 crore as compared to the previous year. This is due to the KIIFB borrowings," he contended.
In view of the stand taken by the CM, Speaker Thiruvanchoor Radhakrishnan denied permission to the adjournment notice, leading to the opposition staging a walkout from the House.
Moving the motion, Balagopal defended KIIFB, claiming that KIIFB-backed funding has been crucial for major infrastructure projects across Keralam, including national highways, industrial corridors, and public buildings.
Countering criticisms over debt and financial management, he compared long-term infrastructure funding to taking a home loan to build vital assets for the future.
Expressing concern that political opposition and legal challenges could stall ongoing developmental works, he called for constructive discussions instead of attempts to undermine the scheme.
