Reform KIIFB, Don't Scrap It, Says Independent MLA G. Sudhakaran

Independent MLA G. Sudhakaran on Saturday defended the Kerala Infrastructure Investment Fund Board (KIIFB) , saying that scrapping the institution would not be an "intelligent move" despite concerns over its functioning.

The former CPI(M) leader, who won the Ambalapuzha Assembly seat with UDF support, said KIIFB had played a crucial role in implementing infrastructure projects across Kerala. However, he alleged that excessive freedom given to bureaucrats had effectively turned it into a " parallel government ", contributing to the current crisis surrounding the agency.

Sudhakaran argued that KIIFB should have remained under the direct control of the state government and the Finance Department. He urged Chief Minister V.D. Satheesan to study all aspects of the institution and introduce reforms if necessary.

"If required, it can be reinvented in accordance with the current times. But discarding it completely would not be an intelligent move ," he said.

Defending KIIFB's borrowing model, Sudhakaran noted that its loans are repayable over a period of 40 years. He said infrastructure development boosts commercial activity and state revenues, enabling the government to repay the loans without major difficulty.

His remarks came a day after Satheesan, in his Budget speech , criticised KIIFB's reliance on off-budget borrowings at higher interest rates, saying it had increased Kerala's debt burden and raised macroeconomic concerns.

To address these issues, the state government has announced the formation of an Expert Committee to recommend structural reforms and an overhaul of KIIFB's operational framework .

The comments underscore the ongoing debate over KIIFB's future, with Sudhakaran advocating reform rather than abolition while the government reviews its financial and administrative structure.