Sections 8 and 9 of the amending Act: how Kerala's infrastructure fund board was allowed to borrow

Background

The Kerala Infrastructure Investment Fund Board raises money outside the State budget and lends it to infrastructure projects. Its power to raise market borrowings comes from Sections 8 and 9 and other provisions of the KIIFB (Amendment) Act, 2016; the committee reviewing KIIFB has recommended that those provisions be omitted so that the Board stops borrowing from the market. The committee has also recommended that the government cancel the order that routes a share of motor vehicle tax and petroleum cess revenue to KIIFB once the State takes over its debt, and that prioritised projects be completed through government departments as capital expenditure over five years from 2026-27.