“Will it actually get done?”
People used to wonder whenever a new public project was announced in Kerala.
But times have changed. Projects are no longer paper promises. Major initiatives such as the Cochin Cancer Care Research Centre, Perumbalam bridge, Amburi Kumbichal Kadavu bridge, Malabar Cancer Centre, the Thalassery court complex, and the Kundannoor and Vyttila flyovers have already been completed and opened to the public.
Behind these projects operates a system that functions like a well-oiled machine — the Kerala Infrastructure Investment Fund Board (KIIFB).
KIIFB is now involved in implementing or supporting projects across almost every sector of infrastructure development in Kerala. The recently announced Sabari rail project will also be funded through KIIFB.
Initially, KIIFB set out with a target of implementing projects worth ₹50,000 crore. Today, it has approved 1,237 projects worth ₹98,836.83 crore.
More than ₹38,000 crore has already been spent on projects. Around ₹9,000 crore worth of major projects have received in-principle approval. Projects worth about ₹10,000 crore are under review. These include seven land acquisition projects worth ₹23,190 crore.
Of the total approved projects, 1,230 belong to infrastructure development, with an investment of about ₹78,836.83 crore.
The “Kerala model” has long been known for prioritising public health, education and social welfare. As a result, a large share of the state’s revenues historically went into these sectors.
While Kerala achieved high human development indicators and strong social outcomes, the state lagged behind in infrastructure development.
Recognising that a modern society required equally modern infrastructure, and that budget allocations alone were insufficient to bridge the gap, the government adopted a new development approach.
Although KIIFB had been established in 1999, it remained largely inactive for years. A major transformation came with amendments to the KIIFB Act in 2016, which restructured the institution to meet contemporary development needs.
While preparing the 2016 amendments, the government examined several global models.
By then, innovative financing mechanisms had already been permitted in India by regulators such as the Reserve Bank of India and the Securities and Exchange Board of India. The amended KIIFB Act enabled Kerala to use these opportunities to mobilise resources for development.
The new framework introduced greater transparency, efficiency and quality control in project implementation, while also strengthening investor confidence.
KIIFB’s governance structure is another distinguishing feature. The board is chaired by the Chief Minister, with the Finance Minister serving as vice-chairman. Other members include the chairperson of the Kerala Planning Board, the Chief Secretary, Finance Secretary, Law Secretary, Finance (Resources) Secretary and the CEO of KIIFB.
In addition, seven independent experts from the financial and economic sectors serve on the board, playing a crucial role in key decisions related to financing and project implementation.
Another important mechanism introduced in 2016 is the Fund Trustee and Advisory Commission (FTAC), which functions both as a trustee for investors and an advisory body for KIIFB.
The commission is chaired by former Comptroller and Auditor General Vinod Rai, with former RBI Deputy Governor Uma Shankar and former banking executive Shankar Narayanan as members.
Several milestones mark KIIFB’s journey. On March 26, 2019, KIIFB successfully issued masala bonds worth ₹2,150 crore. This made Kerala the first Indian state to enter the international bond market through such an instrument.
The first phase of the Chellanam coastal protection project, worth ₹362.64 crore, has been completed, providing relief to residents who had faced coastal erosion for years. A second phase worth ₹404 crore has received in-principle approval.
To revive Hindustan Newsprint Ltd, which was on the verge of closure after being abandoned by the central government, the state approved its revival as Kerala Paper Products Ltd. While ₹200.60 crore was sanctioned, ₹145.60 crore has been spent so far.
As part of strengthening the healthcare system after the Covid pandemic, the government announced isolation wards with ten beds in health centres across the state’s 140 assembly constituencies. KIIFB has approved 90 such wards, of which 54 have been completed.
The board has also supported Kerala’s IT sector with approvals worth ₹2,535.80 crore, including the KFON project.
Through the Kerala Fibre Optic Network (KFON), the state is ensuring high-speed internet connectivity for households across Kerala, bridging the digital divide and expanding access to online education, healthcare, government services and economic opportunities.
Few sectors in Kerala remain untouched by KIIFB’s support. In transport infrastructure alone, KIIFB is involved in projects such as the Hill Highway, Coastal Highway, Kannur airport connectivity roads, the Anakkampoyil–Kalladi–Meppadi tunnel road, the Aluva–Munnar road, and the Kalamassery–Aluva Seaport-Airport road.
In addition, it has funded numerous bridges, railway overbridges, flyovers, bypasses and junction improvement projects.
KIIFB also supports projects addressing drinking water shortages, irrigation needs and coastal erosion. The healthcare sector has received major investments, including infrastructure upgrades and advanced medical equipment.
The upcoming Organ and Tissue Transplantation Institute at Chevayur in Kozhikode is expected to be a pioneering facility.
Support has also extended to education, industry, sports and tourism.
Finance Minister K N Balagopal says KIIFB will remain a pillar of Kerala’s infrastructure development.
He notes that while KIIFB receives grants such as 50 percent of vehicle tax revenues and the petroleum cess, loans raised by KIIFB are its own liabilities.
However, policy changes by the central government have now brought KIIFB borrowings under the state’s borrowing limits.
As a result, KIIFB is likely to prioritise projects with revenue potential in the future, enabling it to gradually reduce dependence on government grants and operate more independently.
Over the past decade, Kerala has witnessed unprecedented progress in infrastructure development. Projects that remained stalled for decades — including national highway expansion, the GAIL pipeline, the Idamon–Kochi power highway, and the coastal and hill highways — have moved forward through strong planning and execution. KIIFB has played a decisive role in driving this transformation, says Chief Minister Pinarayi Vijayan.
Today, it stands as the backbone of Kerala’s infrastructure development, having approved projects worth more than ₹1 lakh crore, he notes. From schools and hospitals to bridges and stadiums, KIIFB’s imprint is visible across sectors that directly affect people’s lives.
For investors and the Malayali diaspora, KIIFB also offers a transparent and secure platform to participate in Kerala’s development and reconstruction.
