KIIFB NEWSLETTER - Vol 2. Issue 10.1

KIIFB NEWSLETTERVol 2. Issue 10.1

Our ChairmanShri. Pinarayi VijayanHon. Chief Minister

Our Vice ChairmanDr. T M Thomas Isaac

Hon. Minister for Finance

Defining the Future

KIIFB Approved ProjectsInfrastructure

Industrial Infra Total Outlay

Department Nos. Amount (Rs. in Cr.)

PWD 278 11936.43

Power 15 5200.00

Water Resources 80 4753.21

General Education 76 2037.91

Health & Family Welfare 24 2035.99

Information Technology 3 1412.86

Coastal Shipping & Inland Navigation 1 566.51

Higher Education 26 562.02

Sports & Youth Affairs 35 732.53

Transport 3 556.49

Forest 4 441.67

Department Nos. Amount (Rs. in cr.)

Culture 8 194.34

SC / ST Development 9 186.60

Fisheries & Ports 4 212.04

Devaswom 1 141.75

Registration 6 89.88

Labour & Skills 5 82.50

Tourism 3 72.47

Home 1 50.14

Local Self Government 3 31.69

Agriculture 1 14.28

Revenue 2 32.62

Total 588 31343.93

Type of Project Nos. Amount(Rs. in Cr.)

Industrial Park 2 1,565.17

Land for Industrial Infra 1 12,710.00

Total 3 14,275.17

Type of Project Nos. Amount(Rs. in Cr.)

Infrastructure 588 31,343.93

Industrial Infra 3 14,275.17

Total 591 45,619.10

From the CEO’s desk…

The subject of audit of KIIFB has been very much in the news in the past few weeks. Despite, clarifications from the Hon. Chief Minister and the Hon. Finance Minister, there have been persistent efforts to spread misinformation on the issue, though this has considerably abated in the last few days. Hence, it would only be appropriate that I use this edition of our newsletter to clarify the position and explain what KIIFB’s stand is regarding its audit. Since, practically all the documents, which are Government correspondence are already available in the public domain and have been extensively used, I am referring to these specifically.

Letters from the AG Kerala to Government available with KIIFB

On March 15, 2018, the AG had addressed the Chief Secretary, based on the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) (which I will refer to as the CAG-DPC Act), which interalia mentioned:

“Hence, CAG has the authority to conduct the audit of KIIFB by virtue of Section 14(1) of CAG’s DPC Act, 1971.”.

The letter further said that “Further as per Section 20(2) of the CAG’s DPC Act 1971, CAG has the right to propose to the President, or the Governor of the State ….., for the audit of the accounts of any body or authority which has not

FACTS ABOUT KIIFB AUDIT

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE2

been entrusted to the Comptroller and Auditor-General by law. Considering the substantial investment made by Government of Kerala in KIIFB, it is proposed that Government of Kerala may entrust the audit of KIIFB to the CAG under Section 20(2) of CAG’s DPC Act, 1971.”

The letter, however, does not refer to any limitation or restrictions on the scope of audit under Section 14(1). It concluded with a request for the entrustment of the audit of KIIFB under Section 20(2) of CAG’s DPC Act, 1971.

Thereafter, in December 2018, CEO KIIFB was intimated that an audit party would be visiting KIIFB with effect from 17.12.2018, in connection with the first Compliance Audit of KIIFB covering the period up to 31st March 2018. The letter also said that “The audit would be taken up under Section 14(1) of ” the CAG(DPC) Act, 1971.

Subsequently, in February 2019, the AG addressed the Chief Secretary that since Government had not responded to the request to entrust the audit of KIIFB u/s 20 of CAG-DPC Act, his office “took up the audit u/s 14(1) of the CAG’s DPC Act, 1971, from 12/12/2018, which is restricted to grants and loans. Audit u/s 20(2) of CAG’s DPC Act, 1971 would lead to a comprehensive audit.” (underline supplied). Thus, it was this letter from AG, which explicitly mentioned a limitation of Section 14(1) and that audit under it was restricted to grants and loans.

In April 2019, CEO KIIFB was further informed that the Audit Team, which was diverted for other audit works, would restart the audit work tentatively from May 7, 2019. The AG deputed a very competent team on both occasions. On both these occasions when the Audit party came to KIIFB, a senior officer deputed by the AG met me along with other officers in the audit party, and at no time did they express their inability to look beyond Government grants and loans in the scope of their audit.

This, therefore, hopefully, should correct the misinformation that there is no CAG audit in KIIFB! Now let us look at the more important issue of the scope of Section 14(1) of the CAG-DPC Act itself.

Scope of Section 14(1) of the CAG-DPC ActIn the second letter (underlined above), the AG had pointed out that the audit of an institution under Section 14(1) is ‘restricted to grants and loans’ received from Government. Therefore, it would be instructive to look at the legal provisions. Section 14(1) of the Act is reproduced below:

“14(1) Where any body or authority is substantially financed by grants or loans from the Consolidated Fund of India or of any State or of any Union territory having a Legislative Assembly, the Comptroller and Auditor-General SHALL, subject to the provisions of any law for the time being in, force applicable to the body or authority, as the case may be, audit ALL receipts and expenditure of that body or authority and to report on the receipts and expenditure audited by him.” (Emphasis supplied)

Here, there are two operative words. The first operative word is the word SHALL (underlined above), whereby, the CAG-DPC Act enjoins on the CAG, the duty and powers to audit an institution like KIIFB. The second operative word is ‘ALL’ (underlined above). The CAG-DPC Act, 1971 unequivocally declares that all the receipts of any institution like KIIFB, whether it be from Government or any other source, borrowed or received as grants shall be audited by the CAG. This is further clarified beyond doubt by the CAG himself in the published Commentary on the Act. The portion in the Commentary explaining applicability of Section 14(1) reads as follows:

“The grant and/or loan must be to a body or authority.The grant or loan must have been paid out of the Consolidated Fund.The autonomous body must be “substantially financed” by grant or loan in accordance with the explanation of that term given in the Section.The audit will be of all receipts and expenditure of the body or authority.”

In other words, two conclusions follow from the above. (1) Firstly, there is no need for Government or KIIFB to entrust its audit to CAG, as the CAG, as the supreme auditor under

the Constitution of our country, already stands entrusted with such powers. (2) Secondly, there is absolutely no limitation on the scope of the audit by the CAG on an institution like KIIFB.

Applicability of Section 20(2) of the CAG-DPC ActSection 20(2) of the CAG-DPC Act is reproduced below:

“20(2) The Comptroller and Auditor-General may propose to the President or the Governor of a State or the Administrator of a Union territory having a Legislative Assembly, as the case may be, that he may be authorised to undertake the audit of accounts of any body or authority, the audit of the account of which has not been entrusted to him by law, if he is of opinion that such audit is necessary because a substantial amount has been invested in, or advanced to, such body or authority by the Central or State Government or by the Government of a Union territory having a Legislative Assembly, and on such request being made, the President or the Governor or, the Administrator, as the case may be, may empower the Comptroller and Auditor-General to undertake the audit of the accounts of such body or authority.” (Underline supplied)

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 3

Happy Reading

Chief Executive Officer, KIIFB

Sl. No Project Name/Description

Project Outlay approved by

KIIFB in Rs. Cr.

Sector/ Department

1 Cinema Theater Complex at Perambra 11.35 Culture

2 Improvements to Perambra - Cheruvannur - Vatakara road between Km 0/000 to 9/800 in Kozhikode District 24.40 PWD

3 Improvements to Kozhikode Balusserry road 88.92 PWD

4 Improvements to Easthill - Ganapathikavu - Karaparamba road 21.00 PWD

5 Payyoli Perambra road between Km 0/000 & 18/105 42.00 PWD

6 Improvements to Thamarasserry Varattiakkal road 36.00 PWD

7 Improvements to Muttungal - Nadapuram - Pakramthalam road between Km 0/000 to 11/855 41.50 PWD

8 Improvements to kallanthodu Koolimaud road Km 0/000 to 7/000 25.00 PWD

9 Construction of Koolimadu Bridge across Chaliyar river 21.50 PWD

10 Construction of Thorayilkadavu Bridge across Akalapuzha 14.90 PWD

5 Payyoli Perambra road between Km 0/000 & 18/105 42.00 PWD

A cursory reading of Section 20(2) would make matters amply clear. Section 20(2) applies (as seen in portion underlined above), to only an institution where its audit has not been entrusted to the CAG by “law”. But in our case, the paramount law governing audit of public institutions viz. the CAG-DPC Act, already gives the CAG unfettered powers to audit KIIFB, as discussed above. Therefore, Section 20(2) would not, legally, apply to KIIFB. In fact, if we look at the wording of Section 20(2), even more closely, it may even be ultra vires of law to proceed under Section 20(2) for its audit, as the main Act itself empowers the CAG to audit KIIFB and manifestly, such audit is in progress.

As emphasised by the Hon. Chief Minister who is also the Chairman of KIIFB and the Hon. Finance Minister who is its Vice Chairman, CAG audit is in progress in KIIFB.

To reiterate, KIIFB is, as subject to the CAG’s oversight and as liable to be audited by CAG - the highest audit authority created under the Constitution - as would be any department of the Government of Kerala.

KIIFB prides in its standards of transparency. I shall devote my column in the next edition, to explain the additional layers of institutional mechanisms that KIIFB has built up to ensure the highest standards of transparency in KIIFB.

Focus District: KozhikodeKozhikode located in mid Malabar region of

Kerala, is bordered by districts of Mahe (Puducherry) and Kannur in north, Wayanadu to the east and Malappuram to the south. The district was formed in 1 January 1957 carving out areas from the erstwhile Malabar district of British era. According to 2011 census, the district has a population of about 30.86 Lakhs. For administrative purposes, the district is divided to four taluks of Kozhikode, Vadakara, Koyilandy and Thamarassery. Balussery, Beypore, Elathur, Koduvally, Koyilandy, Kozhikode North, Kozhikode South, Kunnamamangalam, Kuttiady, Nadapuram, Perambra, Thiruvambady and Vatakara are the thirteen Legislative Assembly

Constituencies in the District. The district, with it headquarter at Kozhikode Municipal Corporation has a comparatively large rate of urbanisation and forms the second largest urban conglomeration in the state. Along with several initiatives and projects being undertaken by Government of Kerala in the district, projects funded by KIIFB will significantly contribute improve the physical and economic infrastructure of the district. The projects funded by KIIFB include development of Hill Highway, development of coastal highway, upgradation and improvement of existing roads, Water Supply Scheme, Stadiums. upgradation of school infrastructure, setting up of Dialysis units in Government Hospitals.

List of Infrastructure Projects in Kozhikode District approved by KIIFB are as follows:


6 Improvements to Thamarasserry Varattiakkal road 36.00 PWD

7 Improvements to Muttungal - Nadapuram - Pakramthalam road between Km 0/000 to 11/855 41.50 PWD

8 Improvements to kallanthodu Koolimaud road Km 0/000 to 7/000 25.00 PWD

9 Construction of Koolimadu Bridge across Chaliyar river 21.50 PWD

10 Construction of Thorayilkadavu Bridge across Akalapuzha 14.90 PWD

17 Construction of Nayarthodu Bridge at Thavannur LAC, Distt. Malapuram 38.61 KRFB

18 Construction of Kattilakkadavu Bridge Across T. S. Canal in Karunagappally Legislative Constituency, District Kollam 30.89 KRFB

19 Construction of Muttel bridge, Distt. Alappuzha 24.21 KRFB

20 Construction of Regulator cum Bridge across Thoothapuzha at Keezhmurikadavu, Moothikkayam in Moorkanad Panchayath, Distt. Malappuram 67.64 KIIDC

21 Improvement to Kulangarath Nambithankund Valook Vilangad road KM 0/000 to 21/000 41.31 PWD

22 Improvement to Thottilpalam Kunduthode road from km 0/00 to 6/200 14.25 PWD

23 Kuttiyadi Bypass 37.96 PWD

24 Construction of Punoor Town Bridge 4.79 PWD

25 Improvements to Mannur - Chaliyam Road in 45.54 PWD

26 Land Acquisition for Improvements to Beypore – Cheruvannur road 11.50 PWD

27 Improvements to REC Koodathai Road 45.22 PWD

28 LA- Improvements to Arayadathupalam Karanthur Road 205.00 PWD

29 Development of CREST Campus at Cyberpark, Kozhikode - Phase 1: Academic Block 16.00 SC/ST Welfare

30 Construction of Model Residential School At Kozhikode Chakkittappara 16.48 SC/ST Welfare

31 Volleyball Academy, Naduvannoor 9.26 Sport & Youth Affairs

32 Construction of Vadakara Indoor Stadium and Sreenarayana Nagaram Indoor Stadium 16.29 Sport & Youth Affairs

33 Construction of Indoor Stadium at GGVHSS Feroke 6.71 Sport & Youth Affairs

34 WSS to Koyilandy Municipality 85.00 Water Resources

35 Improvements to Ramanattukara Water Supply Scheme by interlinking with WSS to Cheekode and adjoining villages 26.00 Water Resources

36 Construction of Regulator cum Bridge at U/S of Perincheri Kadavu 68.37 Water Resources

Total 1740.38

Under Protection of Public Education (PPE) Mission, and the state-wide Project “Upgradation of One school in each constituency” the infrastructure in following 13 (thirteen) schools in the district are upgraded to higher standards with KIIFB funding of Rs. 5 crore each:

Sl. No. Name of School

Legislative Assembly

Constituency1 Meppayur Govt. H.S.S Perambra

2 Naduvannur Govt. H.S.S Balusseri

3 Kuravathur Payyambra Govt. H.S.S Elathur

4 Chathamangalam R.E.C. Govt. H.S.S Kunnaman-galam

5 Kozhikode Medical College Campus Govt. H.S.S

Kozhikode North

6 Ferok Govt. Ganapath V.H.S.S Beypore

7 Kuttyadi Govt. H.S.S Kuttiadi

8 Valayam Govt. H.S.S Nadapuram

9 Govt. HSS, Pannur, Koduvally Koduvally

10 Neeleshwaram Govt. H.S.S, Mukkam Thiruvambady

11 GVHSS Meenchanda Kozhikode South

12 GVHSS Koilandy Koyilandy

13 JNM GHSS Vadakara Vadakara


Sl. No Description

KIIFB Approved

amount in Rs. crore

1 Registration Complex, Kozhikode 2.767

2 Sub-Registrar Office, Azhiyur 1.103

3 Sub-Registrar Office Chathamangalam 1.055

4 Sub-Registrar Office, Chelannur 1.103

5 Sub-Registrar Office, Feroke 1.198

6 Sub-Registrar Office, Nadapuram 1.103

7 Sub-Registrar Office, Naduvannoor 1.112

8 Sub-Registrar Office, Payyoli 1.152

9 Sub-Registrar Office, Perambra 1.087

10 Sub-Registrar Office, Thiruvalloor 1.094

11 Sub-Registrar Office, Villyappalli 1.145

12 Sub-Registrar Office, West Hill 1.564

Total 15.483

Sl. No Name of Hospital Facility

Installed1 Taluk Hospital Feroke Dialysis Unit2 Taluk Hospital, Balussery Dialysis Unit

3 Taluk Headquarters Hospital, Koyilandy Dialysis Unit

Sl. No. Name of School

Legislative Assembly

Constituency1 Cheruvannur G.V.H.S.S Beypore

2 Payyanakkal G.V.H.S.S Kozhikode South

3 Atholi G.V.H.S.S Balusseri

4 Payyoli G.V.H.S.S Koyilandy

5 Madappalli G.V.H.S.S Vadakara

6 Koduvally G.H.S.S Koduvally

7 Narikuni G.H.S.S Koduvally

8 Kuttikkattur G.H.S.S Kunnaman-galam

9 Beppur G.H.S.S Beypore

10 Chalappuram G.H.S.S Kozhikode South

11 Kozhikode NGO Quarters H.S.S Kozhikode North

12 Poonoor G.H.S.S Balusseri

13 Balusseri G.G.H.S.S Balusseri

14 Kokkallur G.H.S.S Balusseri

15 Koyilandi G.G.H.S.S Koyilandy

16 Maniyur Panchayat H.S.S Perambra

17 Madappalli G.G.H.S.S Vadakara

18 Cheruvadi Govt. H.S Thiruvambady

19 Aazhchavattom Govt. H.S Kozhikode South

20 Nallalam Govt. H.S Kozhikode South

21 Kavilampara Govt. H.S Kuttiyadi

22 Kolathur GHSS Elathur

23 Kallachi GHSS Nadapuram

Under the state-wide project “Betterment of Infrastructure in 229 schools, physical infrastructure in the following 23 (twenty three) schools in the district are improved with a KIIFB funding of Rs. 3 crore each:

Under state-wide health sector projects, the following hospital in the district are installed with the following facility with KIIFB funding for providing affordable healthcare to the citizens:

Under state-wide Registration Department project for “Setting up of new office complex”, the following new office complex is constructed in the district with KIIFB funding:

Project ShowcaseKozhikode:A. Elathur Korapuzha Bridge on NH 66, Kozhikode

The proposed river bridge is to be constructed on NH66 (old NH17) at Korapuzha in Kozhikode district, reconstructing an existing bridge along the alignment of NH66. The present Passenger Car Unit (PCU) at the location is reported to be 39,491. The existing bridge is in a dilapidated condition, requiring early renovation.

The newly proposed bridge has a width of 12m with 7.5m carriage way and 1.5m footpath on both sides. The total length of the bridge is 224m with 7 spans of 32m each.

The project will be implemented by the SPV Kerala Road Fund Board at an approved outlay of Rs.28.00 crore. The project is in active construction and scheduled to be commissioned by December 2020.


Elements of Road Design

B. Water Supply Scheme to Koyilandy Municipality and adjoining PanchayatsThe project involves construction of gravity mains linking the tapping point near Kayanna Junction

to 6 nos. of service reservoirs to be built at Kottur, Naduvannur, Arikkulam and Koyilandy (Valiyamala, Koyilandy town and Kottakunnu). Treated water from the existing transmission main of JICA Kozhikode Scheme will be the water source for this project.

The Koyilandy Municipality (including coastal areas), Kottur, Naduvannur and Arikkulam Panchayaths are facing an acute scarcity of drinking water. With inadequate water supply and dearth of a safe water source, most of the houses currently depend on open wells which dry up during summer. Once this project is implemented, it is expected to benefit a target population of 1.74 lakhs by 2035.

The project was approved at an estimated cost of Rs.85.00 crore at the KIIFB Board meeting in September 2016. The execution of works by Kerala Water Authority, Water Resources Department, is in progress and all major contract packages under the project have been awarded. The project is scheduled to be commissioned by March 2020.

IntroductionSustainable Development of Roads demands prime

attention in present time of lack of natural resources and increasing traffic as well as population density. So, Prior to design or finalisation of a road alignment it needs to be ensured to cause minimum interference to People ,Economy and Environment. Adequate engineering surveys need to be carried out to arrive at the forecasted traffic likely to use the road, topography along the alignment, material surveys and environmental impact assessment studies if required. After reconnaissance of the area, we need to proceed to concept design/Feasibility stage where various engineering design options are evaluated such as various alignment options and type of pavement to name a few.

Various Feasibility Studies after considering forecasted traffic really benefits our economy, since it is costly to improve already existing roads owing to land acquisition and shifting of utilities and more importantly demolition of infrastructure adjoining these roads. If we were to think about upgradation of these existing roads to enhance their design life, there is a need to capture the site information accurately to make optimum utilisation of the facility. The various aspects related to any design upgradation project are listed below.

The surveys mainly considered for roads include topographic surveys, traffic surveys and road condition and material surveys.

While topographic surveys as the name suggests captures topography of the area along the length and width of the road and include details such as elevations of road centrelines, edges, shoulders, drainage system,

Surveys and Investigations

Figure 1 Topo Survey using Drone

utilities such as light poles anddetails of Cross Drainage Structures. This can be done in various forms by using various instruments like total station or Drone Surveys else we can make use of Lidar Survey (Both mobile Lidar and Vehicle Mount).Topo Surveys helps us to make digital terrain models which can be used for the geometric design of the road.

The road condition surveys need to be done to classify the stretches for required treatment and this also leads to accurate estimation of material quantities required for upgradation of the road. Condition surveys such as BBD or FWD tests are normally done to record and evaluate existing surface conditions.

Material Surveys mainly relates to the sources with which constructions are to be done. Mandatory approvals need to be taken from authorities concerned with regards to quality and gradation requirements. Quarry and mixing plants facilities need to be strategically located


Geometric Design

Figure 2 Paver Block Pavement

Pavement Design

to optimise project estimates. Further the existing crust along the alignment need to be tested to propose improvements and optimise pavement designs. Sieve Analysis, CBR (California Bearing Ratio) Test need to be performed as per codal provisions. These tests need to be done as laboratory tests and evaluated to obtain pavement design options.

Traffic Surveys are essential to evaluate existing traffic flow and recommend required steps in line with future traffic forecast. The requirements primarily based on the category of road in question such as NH,SH,MDR,ODR/Village Roads. Origin & Destination Surveys, Classified Traffic Volume Surveys, Turning Movement Surveys, Spot Speed Studies etc are the various traffic survey methods available. Axle Load Surveys are done to evaluate possible/existing damage done to the pavement. Even the Speed Limits of a road are arrived based on the traffic spot speed(85 percentile speed).These ensure that the traffic flow is as per required rate and if not suitable improvements such as widening or alternate alignments need to be worked out.

Once the type of pavement is agreed upon considering economy and design life of the facility, the

design of pavement crust can be done.

Flexible pavement (Bituminous) if done will have low capital cost and high maintenance cost. The design for the same is done as per IRC 37:2018.Rigid Pavement (Concrete) requires high initial cost but lowest maintenance cost and has a higher design life .The design for the same is done as per IRC 58:2015. Interlock Pavement Construction has lowest capital cost and high maintenance cost. The design for the same is done as per IRC SP 63:2004. However ,the material characteristics pertaining to any layer of pavement must Confirm to MoRTH Specifications.

The inputs for design of a pavement are the Commercial Traffic Count , Design life , CBR

(California Bearing Ratio) of soil ,ESWL(Equivalent Standard Wheel load) etc.

Hydraulic design involves estimation of storm water likely to interfere along the stretch be it directly on the road

surface or from a watershed. However , the quantitative values vary from time to time with varying rainfall intensity and duration. Rainfall data over a continuous period of time (at least 25years) should be obtained for arriving design of storm water drains which in itself is a part of the road cross section. Critical Characteristics of Drainage Alignment like invert level of existing drainage facility and outfall points should be properly studied and recorded. Storm Water Drains (SWD) are designed in conjunction with the pavement geometrics so that the flow direction is maintained without much earthwork. Design of Bridges (Major/minor) or Culverts requires fixing of extend of waterway to handle a 50-year design flood period.

Road geometrics includes a host of inputs mainly horizontal and vertical geometry with design speed nature of terrain and land use as the main criteria. Horizontal Alignment of design upgradation projects occasionally may need to be restricted owing to space constraints due to low roadway Width (ROW).Alternate alignments or curve improvements may become necessary if black spots are identified to offset faulty designs. Super elevation and curve widening needs to be worked out for smooth flow along transition curves on the alignment.

Vertical Alignment for design of gradients and vertical curves (summit and valley)and associated


tangents are proposed for proper sight distance (Stopping, Intermediate, Overtaking) and managing storm water drainage slopes as well as cross drainage works. IRC:73-1980 and IRC:86-2018 provides the guidelines for working out Horizontal and Vertical Alignments along Rural and Urban Highways respectively.

The cross-sectional elements such as median, Footpath and crash barriers ensure safety of the road users and shoulders accommodate vehicles that break down (emergency).Structural components such as

retaining wall may be necessary to retain roadway at a higher elevation adjoining a low-lying area.

Signage along the roadway provides a means of communication for the road users which may be Informative , warning or mandatory signs. These are placed at critical junctions of the roadway as per provisions laid down in IRC :67-2012. Some of them are Speed limit signs , Facility boards (such as Bus bay, Hospital) , Intersection boards to name a few. Physically they may be mounted on posts within the ROW or gantry type such that these are visible at night as well with the help of reflective coating.

Road Markings complement Signage Boards and mainly demarcates travel lanes, edge lines, Chevron Markings and pedestrian crossings to name a few. The specifications for these are laid down in IRC:35-2015.Moreover, object markings are also required on kerbs

Signage and Road Marking

Traffic Signal and Junction Designs

Way Forward

and signages for easy identification of these structures even at night.

Road Intersections often have 3 or more legs and majority of travel time is lost as a result of long queues. However, through proper geometric design aided with designed Traffic signal installations (if required) we can have organised flow of traffic and reduce collisions at

busy intersections.

Vehicle swept paths are drawn and analysed for design vehicles such as tractor or buses as per category of roads and a balanced geometry may be achieved with channelizing islands. Pedestrian safety is given due consideration in Junction designs in the form of pedestrian crossings and sufficient green time in traffic signal cycle.

However, if the estimated traffic obtained form the turning movement surveys and classified traffic volume surveys, are higher than those laid down in codal standards for traffic capacity (IRC:64-1990 ,IRC:106-1990) Interchanges may be necessary (designed as per IRC 92:2017).

It may be noted that roadway accidents may cause loss of life and property even on a smooth straight stretch, but it should not be due to a faulty design which may be costlier to correct. A road traffic safety audit needs to be conducted by an appropriate authority before and after construction of any road so that adverse impacts or shortcomings are captured. Road user behaviour may affect the traffic flow, but strict traffic law enforcement follows strong suite in providing overall traffic safety. KIIFB , a major partner in the development works of Kerala is keen on executing the roads fulfilling all the possible design requirements and trying to be distinct from all.


India’s recently announced corporate tax cuts to bolster growth in the medium term, however the deficits may widen in the near term..

Government of India has been coming up with measures to prop up the slowing economy including measures to aid exports, measures to boost FDI and consolidation of state-owned banks. Amid growing concerns of economic slowdown, Union Ministry also announced a slew of tax exemptions at the GST Council Meet last week. The announcements came in the wake of a downturn in the economy, with India’s GDP growth slowing to a six-year low of 5% in the last quarter.

As a major fiscal booster, the Government of India, on 20th September 2019, slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies with the new tax rate being applicable from the current fiscal which began on April 1st, 2019.This is being done to promote investment and growth in the country and the revenue foregone on reduction in corporate tax and other relief measures is estimated to be Rs 1.45 lakh crore. The changes in the Income Tax Act and Finance Act will be made effective through an ordinance.

GoI, through this Tax concession, expects to bring investments to India, boost employment and economic activity, leading to more revenue. Also the changes are expected to boost economic growth, which slipped to a six-year low of 5% in the April-June quarter.

In contrast to the growth impact of tax cuts, the fiscal impact will be felt in this fiscal year . As per reports, the cuts will cost around 0.7%

of GDP in lower revenue - about two-thirds to the central government and one-third for state governments. Revenues this year are already behind target although the record annual transfer announced of USD 24.8 billion from the Reserve Bank of India will help mitigate the hit to GoI finances to some extent.

Subsequent to the tax cuts, the yield on the 10-year government bond surged as much as 22 basis points, its biggest jump in past few years due to concern of higher fiscal slippage after the cut in corporate tax rates for domestic companies. The 10-year G-Sec yield rose 23 basis points, to 6.849% from its previous close of 6.638% on the very next day of the announcement by Union Minister for Finance.

To sum up, the recent Tax cuts can potentially impact the bond market negatively, as the revenue forgone due to the tax rate reduction will adversely affect the GoI fiscal deficit targets. Higher sustained investment and growth rates without the creation of macroeconomic imbalances could be positive for any economy, while a rise in the government debt burden could be negative.


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Economy & Market WatchIn the backdrop of the recent surprise corporate tax cut by the Government of India, an analysis was

conducted to assess the impact of revenue foregone on account of the tax cut on the 10 Year G-Sec rates.

Historical rates for 10 Year G-Sec Index in the past few years and corresponding Repo rates pertaining to the same period were extracted using Bloomberg terminal to aid the analysis.

The study proved a strong correlation between Repo rate and the 10 Year G-Sec Index rates historically, However, on account of the surprise tax cut, the spread between Repo & G-sec Index widened to the highest since April 2019.

The negative correlation is evident in the chart during the period starting July 2019, where G-Sec yields hit the near-term low of around 6.33% (mid-July).


Administrative Inspection Wing notes...During the last fortnight the AIW inspected

two Projects “Replacing of Transmission lines in Thiruvananthapuram (WRD005-121)” and “Hi-Tech lab for LP&UP Schools (GED001-01)”.

In the Project “Replacing of Transmission lines in Thiruvananthapuram (WRD005-121)”, the AIW verified the progress of three packages. Agreement for the package “Replacing of Transmission lines from Bharathannur to Kottayappankavu and at Iyermukku”- (WRD005-121-06), was executed on 5.02.19 with completion period of 6 months. But the work completed is below 50% due to delayed supply of pipes and delay in utility shifting along Kallara-Pangode road. The laying of pipes completed for 1052 meter out of 3465 meter proposed and the supplied quantity of pipes is 1619 meter only. No supplementary agreement was executed for the extended period and no fine was imposed. In the case of other two inspected packages viz. replacing of transmission lines from “Camavila to Nellimukku (WRD005-121-04)” and “Nellimukku to Iyermukku (WRD005-121-05)”, revised estimates are under preparation. The increase in estimate is mainly on road restoration, cost of materials and working

charge. The KIIFB will review the project in its periodical meetings.

The Project “Hi-Tech lab for LP&UP Schools (GED001-01)” aims to provide ICT Equipment to 9941 Lower Primary and Upper Primary Schools (Govt & Aided) in the State benefitting 20.86 lakh students and 72,033 teachers. The supply of Laptops, projectors, Multi-function Printers, LED TVs and USB Speakers to LP/UP Schools and to provide Broadband Internet Connection are envisaged. The distribution of equipment has been completed up to 97% and ICT training provided to 98% teachers in the above Districts. A few schools were visited to confirm and assess the school level implementation. Though the teachers and students are satisfied with the project, some deficiencies were observed. Due to the lack of proper instruction for mounting of projectors and due to the shortage of space for screening facility, the equipment kept idle in some locations and the broad band connection provided by BSNL and Rail-Tel frequently interrupted in some areas. The issues found on inspections were brought to the notice of the SPV for rectification.

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KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE12Printed and Published on 01/10/2019, by the Chief Executive Officer for KIIFB, Felicity Square, 2nd Floor, Opp. AG’s Office,

M G Road, Thiruvananthapuram 695 001 Tel: +91 471 278 0900 [email protected], www.kiifb.org

Sl. No. Country Registered Subscribed

CustomersSubscribed

Chittals

1 United Arab Emirates 24612 5445 6883

2 Qatar 4270 778 9083 Saudi Arabia 3850 778 8894 Kuwait 2197 458 5405 Oman 2093 476 5526 Bahrain 1486 337 411

7 United Kingdom 345 57 66

8 India 1559 Ireland 100 17 18

10 Germany 44 11 1211 Malta 43 9 1512 Italy 38 7 713 Netherlands 18 6 614 France 12 1 115 Poland 1116 Norway 8 3 317 Albania 7 1 118 Austria 7 1 119 Canada 720 Spain 7

21 Czech Republic 6

22 Sweden 523 Belgium 4 3 324 Switzerland 4 3 325 Jordan 4

KSFE Chitty goes globalProgress Report as of 30th September 2019

[email protected]

Total Monthly sala 14.94 Cr

KIIFB Security Bond Subscribed 15.06 Cr

No of Prize Money Deposited 1172

Total Amount of Prize Money Deposited 39.25 Cr

No of Prize Money Disbursed 367

Total Amount of Prize Money Disbursed 12.23 Cr

Total Amount Collected (in Crore) 70.82 Cr

Total Leads 119824

KYC Approved Customers 25490

Chit Subscriptions 10688

KIIFB Deposit Bond Subscribed 38.5 Cr

Statistics as on 30.09.2019

26 Portugal 4

27 Russia 428 Finland 329 Kazakhstan 330 Latvia 331 Maldives 3

32 New Zealand 3

33 Singapore 334 Israel 235 Luxembourg 236 Malaysia 2 1 1

37United States of America

2 1 2

38 China 139 Costa Rica 140 Denmark 141 Croatia 142 Hungary 143 Japan 144 Kenya 145 Nigeria 146 Philippines 147 Romania 148 Slovenia 149 Thailand 150 Turkey 1 1 1

Total 39380 8394 10323

KIIFB NEWSLETTER - Vol 2. Issue 10.1

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Transcript of KIIFB NEWSLETTER - Vol 2. Issue 10.1