Keralam Assembly: Opposition walks out over alleged bid to sink KIIFB; CM says ongoing projects will continue

The Chief Minister said that the works worth ₹ 31,761 crore started under KIIFB, which are in various stages of implementation, will continue. | Photo credit: The Hindu

The opposition Left Democratic Front (LDF) walked out of the Kerala Legislative Assembly on Wednesday after Speaker Thiruvanchoor Radhakrishnan rejected its proposal to postpone several ongoing development projects that were stalled after the state government reviewed the functioning of the Kerala Infrastructure Investment Fund Board (KIIFB).

The Speaker refused to allow the motion for adjournment based on Chief Minister VD Satheesan’s statement that all ongoing works as well as works awarded under KIIFB will continue as per schedule. The Chief Minister said that the works worth ₹ 31,761 crore started under KIIFB, which are in various stages of implementation, will continue.

“Even if the government changes, we have a legal obligation to continue with these projects. The government is saddled with repayments of ₹ 70,000 crore due to KIIFB. This will be factored into the state’s borrowing limits. The government will be in trouble in the fourth quarter. Even former finance minister KN Balagopal, who moved the proposal, is aware of this fact. That is why he was against giving a guarantee to KIIFB Mr. Satheesan.

Leader of the Opposition Pinarayi Vijayan accused the Congress-led UDF government of using the Sudha Pillai Committee to “repeat the allegations leveled by the Union government” to destroy the KIIFB.

The panel report is a political document: Pinarayi

“The previous LDF government legally fought the Union government’s act to include KIIFB’s extra-budgetary borrowings under the state borrowing limit. Legal experts noted that the Union government’s action was unconstitutional. The case is currently being heard by the Constitution Bench of the Supreme Court. However, the Chief Minister’s stand as well as Sudha Pillai’s will not weaken the stand of our political committee. to speak a single word against the Union government’s wrong stand on KIIFB More than 1,500 projects development of basic infrastructure will end if KIIFB is destroyed,” he said.

He said the LDF government decided to activate KIIFB at a time when the state government was facing shortage of money for development works for years. The council also unanimously approved this move. The state’s capital expenditure increased from 7.6% in 2013-16 to 11% after the projects started being implemented under KIIFB.

“The committee has counted the money spent on construction of hospitals and schools as losses. It is trying to create a smoke screen over land acquisition expenditure, even though all the land acquisition was done under the Land Acquisition Act, 2013 under the Congress-led UPA government (at the Centre). However, comparing the value of land in this area with the market value, as the committee is doing, is illogical. The K2IF chief minister claimed that the projects they did not generate any revenue. ₹ 18,396 crore in revenue out of which the government received more than ₹ 4,000 crore in the previous financial year,” Mr. Vijayan said.

Published – 28 Oct 2026 14:52 IST