Kerala LoP Satheesan Critiques KIIFB's Viability
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Synopsis
In a fierce critique of the KIIFB, Kerala's Leader of Opposition V.D. Satheesan states during Assembly proceedings that the organization is on 'life support.' He emphasizes the need for transparency regarding the funding sources and the implications of imposing tolls.
Key Takeaways
- KIIFB's viability questioned
- Funding sources clarified
- Opposition's stance on tolls
- Investment figures highlighted
- Government's defense of KIIFB
Thiruvananthapuram, Feb 10 (NationPress) In a sharp critique of the Kerala Infrastructure Investment Fund Board (KIIFB), Leader of Opposition V.D. Satheesan remarked during the Assembly session that the organization is effectively on life support.
“The pressing question is when should we take it off life support?” Satheesan stated in response to State Finance Minister K.N. Balagopal’s assertion that KIIFB no longer requires assistance.
Established in 1999, KIIFB was intended to serve as the primary funding source for the Kerala government, facilitating significant public infrastructure initiatives.
The initiative was promoted in 2016 by former CPI-M Finance Minister Thomas Isaac as his “flagship project”, aiming to generate funds beyond the traditional budget.
Over the last decade, the Congress-led Opposition has consistently criticized KIIFB, labeling it as an unrealistic concept that is bound to fail.
Recent tensions surrounding KIIFB emerged last week when reports indicated that the Vijayan administration plans to impose tolls on all bridges and roads financed with KIIFB funds exceeding Rs 50 crore.
In an attempt to initiate an adjournment motion regarding KIIFB, Congress member Roji M. John highlighted that since 2016, only Rs 18,000 crore has been allocated to projects, proving this initiative to be a failed venture that now burdens the state’s finances.
However, Balagopal countered that despite challenges from the Centre, KIIFB has matured and achieved success.
“To act in the best interest, we must stop misleading people regarding tolls, as there’s no cause for alarm. KIIFB will continue to be a source of revenue. The opposition should refrain from collaborating with the Centre to hinder our state’s progress, and John should recognize that his own constituency has benefitted from successful KIIFB projects,” Balagopal stated.
In response to Balagopal’s blunt remarks, Satheesan reminded him that the funds being generated stem from the petrol cess and half of the vehicle tax collected.
“These funds do not originate from the ‘families’ of you individuals (Balagopal and others). Everyone understands the source, and every time someone purchases fuel, they pay a cess that contributes to KIIFB. Therefore, all development is funded by our own resources, and it’s the people’s entitlement,” Satheesan retorted.
Last week, Isaac faced backlash from multiple fronts after he changed his stance from 2016, when he stated that no tolls would be charged.
“Circumstances have evolved. We will need to implement tolls on roads and bridges built with KIIFB funding,” Isaac remarked last week.
