Thiruvananthapuram | Kerala Finance Minister K N Balagopal on Monday dismissed concerns over the Kerala Infrastructure Investment Fund Board toll issue, stating that there was no need to create unnecessary worries among the public.
However, the opposition UDF walked out of the House over this issue.
The Minister's response came when there were reports of a proposed move to impose tolls on roads built using funds from KIIFB.
While responding to an adjournment motion notice issued by the Congress-led UDF opposition in the State Assembly to discuss the current status of projects being implemented by KIIFB, Balagopal avoided addressing reports which suggest that the government was planning to introduce tolls for the roads constructed by KIIFB.
He, however, said that more revenue-generating projects would be implemented through KIIFB.
"There is no such situation where KIIFB is on drip support, as alleged by the opposition," he said.
The Finance Minister pointed out that the National Highways Authority of India (NHAI) collects tolls for its projects outside Kerala and will implement the same within the state as well.
Balagopal said that KIIFB would undertake economically viable projects in 100 to 200 locations, adding that there are multiple plans for revenue generation.
"An investment of Rs 1 lakh crore will be achieved," he said.
Highlighting KIIFB's contributions, Balagopal claimed that over Rs 33,000 crore has already been spent through the agency.
He accused the opposition of attempting to undermine KIIFB and of creating unwarranted concerns over toll collection, calling their stance politically motivated and baseless.
The minister also asserted that there has been no reduction in funds allocated for Scheduled Caste (SC) and Scheduled Tribe (ST) community projects. He claimed that scholarships to the tune of Rs 1,400 crore were distributed to students from these marginalised sections
Considering the minister's response, Speaker A N Shamseer declined permission to discuss the matter. In protest, the opposition staged a walkout from the Assembly.
Earlier, Congress MLA Roji M John, who moved the notice to discuss the issue, said that projects under KIIFB are progressing at a snail's pace.
He argued that KIIFB has become a burden on Kerala, as projects that would typically be funded through the state's plan allocation are instead being executed via masala bonds.
He alleged that revenue from motor vehicle taxes and the petroleum cess, which would usually go directly into the state treasury, is now being diverted to KIIFB.
"The government had promised to implement projects worth Rs 1 lakh crore under KIIFB within 10 years, but so far, only Rs 18,000 crore worth of projects have been completed," he said.
"When we raised concerns about KIIFB, then Finance Minister Thomas Isaac defended it as a new economic model," John said, adding that recent reports suggest tolls may be introduced on roads built by KIIFB.
"After K-FON and K-Roads, the government is now set to introduce K-Tolls," he alleged, citing reports that toll charges would be imposed on roads built at a cost exceeding Rs 50 crore.
He further claimed that only 25 per cent of the projects under KIIFB are economically viable.
Isaac, in his speech on September 26, 2016 in the Assembly, had assured that no tolls would be charged for roads and bridges. However, Roji alleged that the government is now backtracking on this promise and questioned how KIIFB could be considered an alternative economic model.
He also alleged that the government has cut 50 per cent of the funds allocated for SC and ST community projects.
Leader of the Opposition V D Satheesan alleged that KIIFB is now on ventilator support.
"This is a serious issue affecting the state, and KIIFB's funds are not anyone's ancestral property," he said before walking out of Assembly.
