New s letter

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Defining the Future Volume 3 Issue 7.1

KIIFB Approved Projects

Infrastructure
Amount Amount
Department Nos. Department Nos.
(Rs. in Cr.) (Rs. in cr.)
PWD 359 15,952.31 Culture 14 357.00
Power 15 5200.00 SC / ST Development 10 183.14
Water Resources 85 5,177.57 Fisheries & Ports 19 387.62
General Education 79 2,078.20 Devaswom 1 141.75
Health & Family Welfare 28 2,302.97 Registration 6 89.88
Information Technology 3 1412.86 Labour & Skills 5 82.50
Our Chairman
Coastal Shipping & Inland Tourism 8 226.67
Shri. Pinarayi Vijayan 1 566.51
Hon. Chief Minister Navigation
Home 1 50.14
Higher Education 38 807.22
Local Self Government 7 96.06
Sports & Youth Affairs 37 762.20
Agriculture 1 21.43
Transport 3 556.49
Revenue 2 32.62
Forest 4 451.68
Total 729 37031.21
Ayush 1 69.05

Total Outlay
Amount
Type of Project Nos.
(Rs. in Cr.)
Infrastructure 729 37,031.21

Our Vice Chairman Major Development Projects (Land Acquisition Pool)

Dr. T M Thomas Isaac i. Industrial Parks (3 nos: Rs. 13,988.63 Cr.) 1 20,000.00
Hon. Minister for Finance ii. LA for NH-66 (1 no. Rs.5,374 Cr.)
iii. Kochi-Bangalore Industrial corridor (1 no. Rs.1030.80 Cr.)

Total 730 57,031.21

KIIF Governing Body in progress

Shri. T. S. Vijayan, Former Chairman (IRDA)

and Chairman and Managing Director (LIC)
joins the Board of KIIFB.
From the CEO’s Desk ......
The fortnight that went by was a very busy one for all of us in KIIFB. On June 29, 2020. the Executive Committee
had its 15th meeting, chaired by Dr. Thomas Isaac, Hon. Minister for Finance. The next day on June 30, 2020, the
Governing Body met under the chairmanship of the Shri. Pinarayi Vijayan, Hon. Chief Minister of Kerala.
Through the fortnight that went by, we had to struggle hard to prepare the agenda. The Project Appraisal Division
of KIIFB did its best to place as many projects as possible in the Executive Committee and the Governing Body. The
Finance and Administration wing rose to the occasion and ensured that the agenda notes for both these meetings
were sent out in time. The Inspection Wings of KIIFB placed their work reports before the Executive Committee and
the Board.
Due to the Covid lockdown restrictions, both the Executive Committee and the Governing Body meetings were held
in mixed mode, a combination of online with local presence. For the Executive Committee Meeting, the official
members viz. Dr. Vishwas Mehta, Chief Secretary, Shri. P. K. Aravintha Babu, Law Secretary and Shri. R. K Singh,
Additional Chief Secretary (Finance) assembled in the KIIFB Conference Room. Dr. Thomas Isaac joined them
at KIIFB to chair the meeting. All the three independent members of KIIFB, viz. Prof. Sushil Khanna, Sri. Salim
Gangadharan and Sri. J. N. Gupta joined us online.
For the Board Meeting of KIIFB, we had to pull off almost a technological feat. The Hon. Chief Minister came to the
Conference Hall to chair the meeting, joined by the Hon. Finance Minister. The official members on the Board, the
Chief Secretary, Additional Chief Secretary (Finance) and the Law Secretary were present. The rest of the members
joined us from several cities of India.
KIIFB welcomed its new members to the Board. Dr. Vishwas Mehta, Chief Secretary also was present for both the
meetings of the Executive Committee and the Governing Body. During the brief period that he has been on the
Board as Chief Secretary, he has evinced keen interest in KIIFB projects and has promised all the support to KIIFB
to further the State’s development agenda. KIIFB is extremely grateful and obliged to him for his kind support. The
new member on the Board Sri. T. S. Vijayan, Former Chairman, Insurance Regulatory and Development Authority
(IRDA) came to the meeting venue, despite the lockdown restrictions to attend the meeting. This was his first meeting
to the Board after his induction. His expertise as Chairman, IRDA and as Chairman and Managing Director of LIC
that capped an impressive career of over three decades will stand KIIFB in good stead and standing. The Board
accorded him a very warm welcome.
The Board took many momentous decisions in its meeting. Besides approving projects worth over Rs.2000 crore,
the Board gave the nod to the proposal to engage with International Finance Corporation (IFC) is the private sector
lending counterpart of the World Bank for availing a loan of $150 million. The loan is likely to be supported by
other international financing institutions like the Asian Development Bank. KIIFB considers it a great opportunity
to broaden its international base, after its successful foray in the Masala Bond Market. Like the Masala Bond, this
will be also a first of its kind for any State institution to team up with IFC. IFC also has offered its technical support
to shape projects for Public Private Partnerships. With the growing development needs of the State, this facility will
help usher in at least a few major projects both from within India and from abroad as well very soon.
Reflecting the growing confidence and trust in KIIFB, Government entrusted us with the task of mobilizing funds
through a Diaspora Bond. More details have been given in the column of Finance and Administration elsewhere in
this edition.
The first set of proposals for land acquisition for the Kochi Bangalore Industrial Corridor was also approved by the
Board for an amount of Rs.1030 crore. Yet another important policy decision taken by the Board was to accept
projects only over Rs.100 crore in future. The Board Members unanimously felt that smaller projects should be done
inhouse in Government, while with the current level of expertise and experience, KIIFB should begin focusing on
large projects alone where its professional expertise can be best used.
This fortnight, the meeting of the Fund Trustee Advisory Commission has been scheduled on July 14, 2020. Our
team will now gear up for this very important oversight meeting.
More in the next edition. Happy reading.
Chief Executive Off icer, KIIFB

2 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE

The total outlay of projects approved by KIIFB till date
In the KIIF Governing Body that met on June 30th chaired by Shri. Pinarayi Vijayan, Hon. Chief Minister, a key
decision was taken on major projects that involve substantial land acquisition. Many major projects that have
been approved, as well as those identified by Government for financing through KIIFB in future, has a substantial
component of land to be acquired as part of the Infrastructure project. Furthermore, when the Board approves
the Land Acquistion component of a project, the estimate approved is only an approximate expectation of the
cost. The actual cost will depend on the valuation done by the competent authority – District Collector or
Government. Moreover, land acquisition procedures generally takes anywhere between 18 to 36 months in
the State. So it does not stand to reason to separately show this in the value of approved projects and present
an unrealistic picture of the actual work in progress. As an alternative, to present a truer picture of the work in
progress, it was decided to allocate Rs.20,000 crores as the Land Acquisition Pool. Expenditure incurred on
land acquisition for major development projects approved will be debited against this pool. When the amount
is exhausted, the matter will be placed before the KIIF Board again for recouping the Land Acquisition pool.

Projects Approved in 15th Meeting of Executive

Committee and 39th Meeting of Board, KIIFB
Fifteenth (15th) meeting of Executive Committee chaired by Honourable Minister for Finance and 39th meeting
of General Body chaired by Honourable Chief Minister was held on 29th and 30th June 2020 respectively. The
Executive Committee and Board approved 52 projects totalling Rs. 1530.32 crores and 3 projects totalling Rs.
472.40 crores respectively.
Projects approved by the Executive Committee
Cost in
No Name of the Project Department
Rs.Crore
1 Abdur Rahiman Sahib Cultural Complex at Malappuram 39.67 Culture
Strengthening of fish marketing Infrastructure in Thiruvananthapuram District - Phase I ;
2 8.92 Fisheries
Puthenchanda, Nadukaadu and Panachamoodu Markets
Strengthening of fish marketing Infrastructure in Kollam District - Phase I; Thankassery,
3 5.05 Fisheries
Kadappakada and Moonamkutty Markets
General
4 Betterment of Infrastructure Facilities in 446 Schools- Cluster 5 Kollam & Pathanamthitta 10.63
Education
General
5 Betterment of Infrastructure Facilities in 446 Schools- Cluster 11 Palakkad District 17.23
Education
General
6 Betterment of Infrastructure Facilities in 446 Schools- Cluster 12 Palakkad District 12.42
Education
Health & Family
7 Development of Taluk Hospital Malayinkeezhu, Thiruvananthapuram 15.25
Welfare
Health & Family
8 Development of Taluk Hospital, Peravoor, Kannur 22.16
Welfare
9 Augmenting Infrastructure Facilities at University College Thiruvananthapuram 20.27 Higher Education
10 Augmentation of Infrastructural Facilities at MG University, Kottayam 50.28 Higher Education
11 Augmentation of Infrastructural Facilities at TM Memorial Govt. College Tirur 7.73 Higher Education
Local Self
12 Office Building -Kottarakkara Municipality and Erattupetta Municipality 12.93
Government
Local Self
13 New Building For Municipal Office, Ramanattukara Municipality 12.40
Government
14 Construction of Cherikkal Kottam Bridge across Anjarakandy river in Kannur District 13.86 Public Works
Improvements to Hosdurg-Panathur road by providing BM and BC from 24/000 to 42/000 in
15 59.94 Public Works
Kasargode District
Improvement to Ramakkalmedu-Cumbummedu Vannapuram Road- Part 1- Cumbummedu To
16 73.21 Public Works
Njondical- 28.1km

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 3

 Hill highway-Improvements to Hill Highway from Vallithod to Ambayathod between Km 36/506 to
17 50.47 Public Works
45/000,58/450 to 60/480 and 64/700 to 90/000 in Kannur District
18 Improvements to Kaniyaram- Arattuthara Road between km. 0/00 to 10/450 in Wayanad district 20.90 Public Works
19 Improvements to Pathanad Edayirikkappuzha road in Kottayam District 29.20 Public Works
Improvement works to Thiruvambadi-Pulloorampara-Edathara-Marippuzha road in Kozhikode
20 77.11 Public Works
District
21 Improvements to Karuvannur Katttoor road ch 0/000 to 11/750 km 43.68 Public Works
Improvements to Sreekandapuram-Chempanthatty-Naduvil road Km 0/000 to 9/760 in Kannur
22 31.91 Public Works
District
Improvements to Ammanappara-Pacheni-Thiruvattoor-Therandi-Chapparappadavu road km 0/000 to
23 44.24 Public Works
14/000(1st reach) and Vimalasseri to Eruvatty road km 5/700to 10/700
24 Construction of Pattambi Bridge in Palakkad District 30.86 Public Works
Land Acquisition - Reconstruction of vayalar Bridge and Muttombazar Ettupurackal road in
25 10.00 Public Works
Alappuzha District
26 Construction of Chendamangalam - Mattupuram bridge in Ernakulam District 11.36 Public Works
27 Consrtuction of Kulathupuzha Sreeshastha Ambalakadavu Bridge across Kallada river in Kollam 11.22 Public Works
Construction of RoB in lieu of LC 291 in between Railway KM 868/800-900 at Manjeshwar in
28 40.40 Public Works
Kasaragod District
Construction of ROB in lieu of LC 189 in between Railway KM 669/700-800 at Temple road in
29 36.84 Public Works
Kozhikode
30 Construction of ROB in lieu of LC 28 near Kallumala junction in Mavelikkara 38.22 Public Works
31 Construction of RoB in lieu of LC 33 in between Railway KM 51/600-700 at Alathur in Thrissur 21.87 Public Works
32 Construction of ROB in lieu of LC 11 in between Railway KM 13/500-600 at Kureekad in Ernakulam 36.89 Public Works
33 Construction of ROB in lieu of LC 156 at Moru Glass Gate in Palakkad 33.19 Public Works
34 Construction of ROB in lieu of LC 266 in between Railway KM at Thrikkaripur in Kasaragod 53.09 Public Works
Construction of RoB in lieu of LC 554 in between Railway KM 168/400-500 (Ollal) near Ayyappa
35 36.75 Public Works
temple in Kollam
36 Construction of ROB in lieu of LC 543 at Railway KM 157/200-300 near SN College in Kollam 44.66 Public Works
Construction of RoB in lieu of LC 204 in between Railway KM 690/600-700 at Nelliyadi Kadavu in
37 28.39 Public Works
Kozhikode
38 Construction of ROB in lieu of LC 224 in between Railway KM 728/300-400 at Punnol in Kannur 38.56 Public Works
39 Construction of ROB in lieu of LC 211 between Railway KM 701/700-800 at Payyoli in Kozhikode 28.57 Public Works
40 Improvements of Ezhamkulam Kaipatoor Road in Pathanamthitta 41.18 Public Works
41 Improvements to Pallikkunnu-Chimmini Dam Road from km 0/000 to 8/500 in Trissur District 39.49 Public Works
Construction of Anjudi - Kundungal Bridge across Canoli Canal in Tanur LAC in Malappuram
42 22.16 Public Works
District
43 Construction of Parakkottam bridge and connecting road in Chalakudy LAC in Thrissur district 35.15 Public Works
44 Improvements to Ettumanoor Town Ring Road in Kottayam District 21.84 Public Works
Land Acquisition_Improvements to Puliyarakonam Kuzhakkad Temple Road in Thiruvanathapuram
45 7.40 Public Works
District
46 Construction of Ponnani Nilatheeram indoor and aquatic complex 14.09 SPORTS
47 Development of Chethy Beach at Alappuzha 21.36 Tourism
48 Alappuzha Heritage Project - Phase V: Canal Development 14.38 Tourism
49 Thalassery Heritage Project- Phase 1 40.95 Tourism
50 Construction of a Regulator with Lock across Konothupuzha River at Puthenkavu 25.76 Water Resources
Construction of Regulator with Lock across Anjarakandy River at Parapuram in Pinarai
51 46.37 Water Resources
Panchayath,Kannur District
Construction of Regulator across Chittur Puzha at Vadakarapally Palathulli in Peruvembu Grama
52 19.84 Water Resources
Panchayat in Palakkad District
Total 1530.32

4 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE

Projects approved by Board
Cost in
No Name of the Project Department
Rs.Crore
1 Construction of Azhikode - Munambam Bridge, Thrissur 140.01 Public Works
Comprehensive drinking water supply schemes to Perumatty, Pattenchery,
Water
2 Elappully, Nallepilly panchayaths in Palakkad district -Phase III to benefit 77.21
Resources
end users
Water
3 Extension of Moolathara Right Bank Canal from Korayar to Varattayar 255.18
Resources
Total 472.40
Beside the Board also approved Rs.1030.80 crore for acquisition of land for the project “Kochi-Bangalore
Industrial Corridor”. The approval is within the outlay of Rs.12710 crore earlier approved for the project “Land
for Industrial Infra”

Salient Features of some of the projects

i. Kochi Bangalore Industrial Corridor
Kochi Bangalore Industrial Corridor forms extension and part of the Bangalore Chennai Industrial Corridor
Project approved by Government of India. For acquiring land totalling 1350 acre in Puthussery and Ozhalpathy
area of Palakkad district, Board of KIIFB sanctioned an amount of Rs. 1030.80 crore. This approval is within
the outlay of Rs.12710 crore earlier approved by Board for the project “Land for Industrial Infra” . Establishment
of this Industrial Corridor will substantially contribute to develop manufacturing industries in the region and
transform Kochi -Palakkad region into a major manufacturing hub of South India.
ii. Azhikode Munambam Bridge, Thrissur District
Azhikode -Munambam bridge is proposed to be constructed across Munambam Kayal connecting Azhikode in
Kaipamangalam LAC, Thrissur District and Munambam in Vypin LAC, Ernakulam District. The bridge forms
part of the Coastal Highway Alignment connecting 9 coastal districts of the state. The bridge follows standard
width of 15.10 m and have functional units like carriageway, footpath and cycle track. The proposed bridge will
ease the traffic congestion in NH-66 & NH-544. The bridge will connect ports and harbours beside providing
boost to cycling based tourism destination project. The project at an approved cost of Rs.140.01 crore will be
implemented by the SPV Kerala Road Fund Board (KRFB).
iii. Extension Of Moolathara Right Bank Canal From Korayar To Varattayar, Palakkad District
The proposal is to provide irrigation water supply from Korayar to Varattayar by extending the Moolathara
Right Bank Canal. The project will be largely benefitting the villages of Kozhippathy and Eruthiampathy village
in Chittoor Taluk, Palakkad district. Currently the area suffers on account of acute drought and low average
rainfall of below 100 cm. The project envisages laying of 2.8m dia MS pipe line for conveyance of water for a
length of 5770m which includes construction of an aquaduct across Korayar River, Other functional elements
of the project include a 660m tunnel, regulating mechanisms, improvements to 14 public ponds and a lift
irrigation scheme to feed an additional ayacut of 3575 hectares. The project at an approved cost of Rs.255.18
crore will be implemented by the SPV, Kerala Irrigation Infrastructure Development Corporation (KIIDC)
iv. Improvements of Ezhamkulam Kaipatoor Road in Pathanamthitta District
The road is a 10.208 Km MDR (Main District Road) starting from Ezhamkulam junction in SH 5 ( Kayamkulam-
Pathanapuram) and joins NH 183 A at Kaipatoor. Total length of the road is 10.208 Km and is having an
average carriage way of 5.50 m. Along with the improvements of road, a bridge having a span of 25 m will also
be constructed after dismantling the existing one. 22 Nos of Box Culverts after dismantling the existing one are
also proposed along with necessary protection works. On completion of the project, traffic from NH 183A to

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 5

Pathanapuram can easily be diverted at Kaipatoor thereby reducing traffic block at Adoor Town. The project at
an approved cost of Rs. 41.18 crore will be implemented by the SPV KRFB.
v. Improvement to Ramakkalmedu- Cumbummedu Vannapuram Road- Part 1- Cumbummedu To Njondical.
Idukki District.
The proposed road provides interconnection with some of the important tourist destinations of Ramakkalmedu,
Kallar, Cumbummedu and Nedungandam in Idukki District. It offers connectivity with and among State
Highways 19, 41, 42 and 43. Total length of the road is 28.1 km with a RoW of 10m. The project road will be
having 5.5m wide carriageway, 0.75m wide CC shoulders on both sides and 1.5m wide drain cum footpath on
both sides wherever applicable. The project at an approved cost of Rs. 73.21 crore will be implemented by the
SPV KRFB.
vi. Construction Of Ponnani Nilatheeram Indoor And Aquatic Complex, Malappuram District.
The proposed project aims to develop an indoor stadium, swimming pool, open air Gym and Kabadi court for
conducting tournaments and training facility for coastal area of Malappuram District. On implementation of
the proposal, sports enthusiasts will be benefited by improved facilities and environment, which will help in
their physical and skill development. The stadium has a play area of 25mx40m with gallery (550) on 3 sides &
guest rooms below gallery, change rooms for players, office rooms, VIP lounge, etc. The play area is proposed for
badminton, volleyball, basketball, taekwondo, judo, table tennis, air rifle, squash and wrestling. A Kabbadi court
of size 13mx10m for men and 11mx8m for boys & women are proposed. The proposed open air gym is having a
size of 8mx8m in which outdoor fitness equipments are considered to exercise in an open air environment and
a practice swimming pool of size 25mx12.5m. Approved cost of the project is Rs. 14.09 crore.
vii. Development of Chethy Beach, Alappuzha District
The main objective of the project is to develop the existing 3km long Chethy beach as the new destination beach
in the South coast of Kerala with all modern facilities required for tourists since the neighbouring beaches of
Alappuzha and Marari are very crowded during weekends and holidays. Chethi Beach is closely located to SH
66 Alappuzha- Arthunkal- Cherthala in Alappuzha. Chethi Beach Development has mainly 3 zones, namely,
Sports zone, Activity zone and Family zone apart from the local zones that are currently in use in north and
south ends. Approved cost of the project is Rs. 21.36 crore.
viii. Augmentation of Infrastructure facilities At MG University, Kottayam
The proposal is for development of Mahatma Gandhi University as International Centre of Excellence in
Academics & Research. The project involves construction of a multi storied (B+G+5) building with a built-
up area of 1,55,375 sqft accommodating the facilties of Instrumentation Lab, Computer Science Lab, Pure &
Applied physics Lab, Environmental Lab, Bio Science Lab and Chemical Science Lab. Approved cost of the
project is Rs. 50.28 crore.
ix. Construction Of ROB In Lieu Of LC 291 In Between Railway km 868/800-900 at Manjeshwar In Kasaragod
District
The proposed Road Over Bridge is in between Manjeshwar & Ullal railway stations and along Manjeswar –
Hosangadi old Highway. Total length of ROB comes to 480.30 m. Footpath is considered only on one side and
RCC crash barrier is proposed on both sides. For railway portion 1.50 m foot path is proposed on both sides
and Railway span of the bridge is 36 m. 141 Cents land will be acquired for the project. Approved cost of the
project is Rs. 40.40 crore.
x. Thallasseri Heritage Project Phase - I
The objective of the project is protection of heritage sites and structures in Kannur, Kozhikode and Wayanad
district. With Thalassery as focal point, the project aims at presenting these rich cultural heritage for the benefit
of future generation and tourists. The key components of the project are Harbour Town Circuit, Pazhassi
Circuit, Folklore Circuit and Cultural Circuit. In the first phase development of the project 14 historical sites
are included for preservation and development. Approved cost for the phase 1 of the project is Rs 41.38 crore.

6 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE

Innovative Technologies for Bridges and Elevated
Structures : Steel & Steel-concrete composite bridges

Traditionally, the material used for construction One of the promising options is to use steel as an
of Bridges in Kerala is predominantly Concrete. alternative construction material. Steel has always
As a construction material, Concrete scores on been used in bridge constructions in Kerala from the
several counts, especially when it comes to ease of British times. Post-independence the usage of steel in
construction, use of local materials and economy bridges has been reduced due to short supply. Hence
when compared to several other materials. However, there was a migration to concrete more of convenience.
concrete construction requires significant amount of Here we look at the possibility of using steel and
natural materials like cement, sand and aggregates. steel – concrete composite construction as a major
Within a short span of time, both Coarse and Fine technology for construction of bridges and elevated
aggregates have become very scarce, putting severe Structures in Kerala.
strain on the construction industry resulting in keeping
several developmental activities on hold. Thus, there is Advantages of steel over concrete:
an urgent requirement of intervention to remedy this The following table gives a comparison between the
situation. While there are several methods in reducing two materials, Steel and Concrete:
the use of aggregates by increasing the strength,
The biggest advantage of steel or steel concrete
using manufactured aggregates and recycling the
composite construction is the short construction
Construction and Demolition wastes, a time has
time and recyclable nature of the materials. This
come to restrict use of concrete to the bare essential
technology has been proved to be sustainable as it
works only and bring in alternative technologies and
has been considered as a grave-cradle material. Steel
materials for use in construction.

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 7

can be salvaged and recycled at the end of its service
life. This puts lesser load on earth’s resources in the
long run. Also concrete at the end of its life becomes
an environmental liability and steel is a grave to cradle
material. The grave to cradle concept of construction
material is shown in the adjoining figure 1.
The advantages of Steel and Concrete can be combined
to create Steel Concrete Composite Structures. In such
cases, the main girders shall be made of steel and
the deck can be cast in concrete and connected with
girders using Shear Connectors. In the next step it is
possible to use Precast Concrete for Deck Elements.
The substructure can also be done in steel which
means Pier caps and Piers too can be fabricated in
factory and erected on foundations by bolting.

Steel Concrete
Steel construction is invariably prefabricated. The Manufacturing concrete involves collection and
structure will be fabricated in a factory / Workshop, stacking of the constituent materials like cement
transported and erected at construction site. aggregates, etc. mixing, transportation, laying,
finishing, vibration, curing, de shuttering. Requires
large areas and more time for various operations
discussed above.
The dead load of the superstructure will considerably The Dead Load is relatively very high, requiring
be reduced leading to savings in foundations. heavier foundations.

With reduced dead loads active mass of the The Structures made of concrete will have enhanced
superstructure is also reduced resulting in substantial mass resulting in higher lateral loads due to
reduction in earthquake response. Thus, saving cost earthquake. This will require heavier substructure
of substructure and foundations. and foundations
Steel is hundred percent recyclable which practically Technologies for recycling of concrete are yet to be
makes it virtually an indestructible material. So, the developed resulting in disposal of the material after
major advantage of steel is in terms of Sustainability. service life is over.

It is easier to maintain the quality of construction as Practically the entire process of making concrete and
the entire structural elements are factory made and laying are done at site, hence the quality assurance is
only very little site work is involved. quite difficult.

There is considerable savings in time of construction The construction of a Bridge using concrete is a time-
and the structure be can put to use by the public at consuming process.
the earliest. The monetisation of the time saved and
early starting of usage of a facility will easily offset the
higher initial capital cost of steel.

8 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE

Steel-concrete composite bridges represent an This goes a long way toward minimizing negative
alternative to prestressed reinforced concrete bridges environmental impact.
especially in railway bridges. They are particularly
suited for spans ranging from 30 m to 80 m, when The key benefits of steel structures can be summarised
using standard composite solutions. as below:

Economic Environmental Benefits to

Benefits Benefits Society
Faster The ability to Steel bridges
construction recycle and are generally
reduces traffic reuse steel safer to build
and business bridges reduces and less likely
disruption. environmental to fall
Steel allows impacts
longer spans to
be built, which
limits impact
on habitats
below.
Steel bridges Steel produced Steel bridges
lasts longer in controlled are visually
manufacturing lighter and
environments more attractive
Figure.2
limits waste. than other
bridge types
Steel Steel is highly Steel
Steel also has broad architectural possibilities. Steel components adaptable components
bridges can be made to look light or reassuringly require less to different are used to
solid and can be sculptured to any shape or form. The maintenance climates and transmit critical
high surface quality of steel creates clean sharp lines and don’t need geographic utility services
and allows attention to detail. Modern fabrication to be replaced conditions across bridges.
methods can easily provide curvature in plan and as often.
elevation. The painting of steelwork introduces color The lighter The relative Steel
and contrast, and repainting can change or refresh the weight of steel lightness of components
appearance of the bridge. Bracing, stiffeners, utilities means smaller, steel compared are less likely
and other components are typically hidden within the less costly with other to be damaged
box, resulting in a smooth, uncultured form. equipment — materials during extreme
When a steel bridge reaches the end of its useful including lifts reduces energy events like
life, the girders can be cut into manageable sizes to — can be used use during hurricanes and
facilitate demolition, and returned to steelworks for on construction delivery and earthquakes.
recycling. sites. construction

Way Forward:
Steel is the most recycled construction material and choosing it for bridge represents
a sustainable management of natural resources. With all these innovations, it will be
possible to reduce the time substantially for construction, while saving considerable
amount of scarce materials.

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 9

Economy and Market Watch
In the backdrop of the global Covid 19 pandemic, an analysis was conducted to assess where the yields are from
a historical perspective and how would the yields be going forward.
20 years Historical data on yields of US and India 10-year bonds were compared as the first part of the analysis.
Subsequently, we looked at the consensus forecasts of the yields, given by Bloomberg, for major economies till
Q3 2022.

The chart on the right-hand side indicates the US

10-Yr index (red coloured) and India 10-Yr index
(green coloured) in the top panel. The spread (purple
coloured) between them is indicated in the bottom
panel. As evident from the charts, the spreads post
hitting a low of less than 100 bps in 2004, have
been more or less range bound in the last 5 years i.e.
between 400 to 600 bps. The high of around 700 bps
was registered in 2012.

The analysis of yield forecasts for various 10 year

benchmark sovereign bonds suggests that the 10 year
India bond yield is expected to marginally weaken
from current levels till Q1 2022. The consensus view is
that subsequent to Q1 2022, the yields will strengthen
by around 100 bps in the following 2 quarters.

The yield forecasts for the 10 Year G-Sec and

corresponding forecasts for Repo rates pertaining to
the same period (till Q3 2022) were also extracted
using the Bloomberg terminal to study the trends
over the next 10 quarters. This study revealed a strong
correlation between Repo rate and the 10 Year G-Sec
yields. It may be noted that though the expected fall
in repo rate to 3.5% immediately affects the shorter
maturities of the yield curve, the same, however, gets
priced into G-sec yields only after a systemic lag as
evident from the chart on the right-hand side.
10 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE
RESURGENT KERALA BOND
Diaspora Bond - About
Diaspora bond is a debt instrument issued by a country – or potentially, a sub-sovereign entity or a private corporation –
to raise finance from its overseas diaspora.
For an NRI, the purchases of Diaspora bonds issued by their country of origin is likely to be driven by a sense of patriotism
and the desire to contribute to the development of the home country. Thus, there is often an element of charity associated
with a Diaspora Bond investment. The placement of bonds at a premium allows the issuing country to leverage the charity
element into a substantially larger flow of capital.

Israel and India examples..

The Jewish diaspora in the United States has been supporting the development of Israel by subscribing to bonds issued by
the Development Corporation for Israel (DCI) since 1951. The DCI was established with the express objective of raising
foreign exchange for the state from Jewish diaspora abroad through issuance of non-negotiable bonds. This financial
vehicle acts as a stable source of overseas borrowing as well as an important mechanism for maintaining Israel’s ties with
its diaspora. Worldwide issuances of Diaspora Bonds by Israel have surpassed USD 44 Billion as yet.
The Indian government has also tapped its diaspora base of non-resident Indians (NRIs) for funding on three separate
occasions – India Development Bonds (IDBs) following the balance of payments crisis in 1991 ($1.6 billion), Resurgent
India Bonds (RIBs) following the imposition of sanctions in the wake of the nuclear explosions in 1998 ($4.2 billion), and
India Millennium Deposits (IMDs) in 2000 ($5.5 billion). The conduit for these transactions was the government-owned
State Bank of India (SBI). The IDBs and subsequently the RIBs and IMDs paid retail investors a higher return than they
would have received from similar financial instruments in their country of residence. India also benefited because the
diaspora investors did not seek as high a country risk premium as markets would have demanded. The diaspora bonds
issued by Government of India are in USD, GBP and EUR and DM.

Resurgent Kerala Bond..

The Government of Kerala (GoK) intends to issue diaspora bonds to raise Rs 2,000 crores (approximately $280 million)
for financing the rebuilding efforts after the damaging floods of 2018. The GoK has established a Rebuild Kerala Initiative
(RKI) towards the rebuilding efforts as well as to prevent occurance of such natural disasters in the future. In addition to
mobilization of domestic resources, financing the RKI involves a collaboration with the World Bank.
Recognizing the significant contributions of the Non-Resident Keralites (NRKs) to Kerala’s economy, GoK, through the
proposed diaspora bonds, intends to establish regular channels of interactions with the diaspora, especially those in the
GCC countries, to harness their goodwill and engage them in the Rebuild Kerala Development Program. These diaspora
bonds can be purchased by the NRKs not only to aid efforts to rebuild Kerala better, but also to earn an attractive rate of
interest.
In the near-term, the diaspora bond would support infrastructure development undertaken by the GoK and its affiliates.
In the medium to long term, the bond would build a long-term “bridge” to the diaspora for sustained engagement in
Kerala’s development. Moreover, the proposed diaspora bond would also directly address the recurring question of how
to make remittances more productive for the development of the state, by mobilizing diaspora savings that are currently
held overseas.
The diaspora bond would be denominated in INR at a face value of INR 25,000 and marketed to Non-Resident Keralites
(NRKs) across various international geographies. Other Non-Resident Indians (NRIs) and institutional investors would
also be eligible to purchase the bond.
Considering the exposure and goodwill KIIFB has garnered in the bond market on account of the successful issuance of
the Masala Bonds in March 2019, the GoK has appointed KIIFB to issue the Resurgent Kerala Bond on its behalf. Unlike
the earlier Masala Bonds issued by KIIFB, which was subscribed by institutional investors, the Diaspora Bond will be a
retail bond to be subscribed by NRKs.
At KIIFB, we are all geared up to take up this crucial responsibility entrusted by GoK, recognizing the tremendous role
the NRK community would be playing in the infrastructure development of our home state through the Resurgent Kerala
Bond.
Source: Development Finance via Diaspora Bonds – Track record and potential, Suhas L. Ketkar & Dilip Ratha

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 11

Notes from the Administrative Inspection Wing......
During the last quarter, the Administrative Inspection Wing (AIW) was primarily engaged in processing the
contract files received from various SPVs. The contract documents of 62 sub projects/packages under the
sectors like Public Works, Health, Education, Water Resource, Sports, Power, Forest, Scheduled Castes &
Scheduled Tribes Development Departments and Registration etc were received from 13 SPVs for scrutiny and
out of which approval/confirmation for 20 sub projects were given after rectification of the deficiencies pointed
out by AIW. The remaining documents were returned to SPVs for re-submission after rectification. Major share
of the contract files received was from KITE, KWA and KRFB on a relative basis, for approval. Since the SPVs
had not uploaded all the documents mandated as per KIIFB guidelines issued in GO(Ms) No. 69/2018/Fin dt.
24.02.2018, the approval process gets delayed in most of the cases. As a result of repeated instructions, the SPVs
are now on track and the completeness of documents in files now being received is much more satisfactory.
The verification of remittance of statutory deductions by various SPVs, started last quarter in KRFB,KSITL and
KMSCL could not be completed due to the delay in getting the proforma details from the SPVs and some other
inspections were postponed on the request of the SPVs due to further restrictions imposed on the functioning
of Govt. Offices. The above SPVs are directed to furnish the bill wise remittance details in a prescribed proforma
for verification.
The inspection in SPVs will continue in the coming weeks as soon as the Covid-19 restrictions relaxed.

Physical Progress Updating of the Project using

Project Monitoring and Alert System (PMAS)
As per the Circular No. FA-5/661/2020/KIIFB dated 8-5-2020 it was instructed that Project Monitoring and
Alert System (PMAS) application shall be used for the physical progress update of the Projects of KIIFB.
Necessary training was also arranged by KIIFB to all those users suggested by the SPVs. The training material
was made available to the participants of the training programme. Accordingly, it was decided to make the
Progress Reporting compulsory from First of July 2020. Bills will be checked against the Physical Progress in
PMAS and if the physical progress is not matching with the Bills, same will be returned to the SPVs. Instructions
has been issued to all the CEOs and Admins of the SPVs to make arrangements for updating the Physical
Progress of the Projects in PMAS.

PRAVASI Chitty Statistics as of 30th June 2020

Total number of customers 57509
Total number of subscribers 13068
Total amount collected INR 229.86 Cr

pravasi.ksfe.com
KIIFB Deposit bond subscribed INR 136.9 Cr
[email protected]
KIIFB Security bond subscribed INR 25.636 Cr

Pravasi Dividend Scheme

Total number of registrations 7582
Total no. of depositors 727

pravasikerala.org Total amount deposited INR 87.78 Cr

12 PrintedINFRASTRUCTURE
KERALA and Published on 01/07/2020,
INVESTMENT byFUND
the Chief Executive
BOARD Officer for
- DEFINING THEKIIFB,
FUTUREFelicity Square, 2nd Floor, Opp. AG’s Office,
M G Road, Thiruvananthapuram 695 001 Tel: +91 471 278 0900 [email protected], www.kiifb.org