Defining the Future - KIIFB

Our ChairmanShri. Pinarayi VijayanHon. Chief Minister

Our Vice ChairmanDr. T M Thomas Isaac

Hon. Minister for Finance

News letterKERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Volume 3 Issue 7.1Defining the Future

KIIFB Approved ProjectsInfrastructure

Total Outlay

Department Nos. Amount (Rs. in Cr.)

PWD 359 15,952.31

Power 15 5200.00

Water Resources 85 5,177.57

General Education 79 2,078.20

Health & Family Welfare 28 2,302.97

Information Technology 3 1412.86

Coastal Shipping & Inland Navigation 1 566.51

Higher Education 38 807.22

Sports & Youth Affairs 37 762.20

Transport 3 556.49

Forest 4 451.68

Ayush 1 69.05

Department Nos. Amount (Rs. in cr.)

Culture 14 357.00

SC / ST Development 10 183.14

Fisheries & Ports 19 387.62

Devaswom 1 141.75

Registration 6 89.88

Labour & Skills 5 82.50

Tourism 8 226.67

Home 1 50.14

Local Self Government 7 96.06

Agriculture 1 21.43

Revenue 2 32.62

Total 729 37031.21

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

Infrastructure 729 37,031.21

Major Development Projects (Land Acquisition Pool)

i. Industrial Parks (3 nos: Rs. 13,988.63 Cr.)ii. LA for NH-66 (1 no. Rs.5,374 Cr.)iii. Kochi-Bangalore Industrial corridor (1 no. Rs.1030.80 Cr.)

1 20,000.00

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.

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE2

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.

From the CEO’s Desk . . . . . .

Chief Executive Off icer, KIIFB

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 3

Projects Approved in 15th Meeting of Executive Committee and 39th Meeting of Board, KIIFB

Projects approved by the Executive Committee

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.

No Name of the Project Cost in Rs.Crore Department

1 Abdur Rahiman Sahib Cultural Complex at Malappuram 39.67 Culture

2 Strengthening of fish marketing Infrastructure in Thiruvananthapuram District - Phase I ; Puthenchanda, Nadukaadu and Panachamoodu Markets 8.92 Fisheries

3 Strengthening of fish marketing Infrastructure in Kollam District - Phase I; Thankassery, Kadappakada and Moonamkutty Markets 5.05 Fisheries

4 Betterment of Infrastructure Facilities in 446 Schools- Cluster 5 Kollam & Pathanamthitta 10.63 General Education

5 Betterment of Infrastructure Facilities in 446 Schools- Cluster 11 Palakkad District 17.23 General Education

6 Betterment of Infrastructure Facilities in 446 Schools- Cluster 12 Palakkad District 12.42 General Education

7 Development of Taluk Hospital Malayinkeezhu, Thiruvananthapuram 15.25 Health & Family Welfare

8 Development of Taluk Hospital, Peravoor, Kannur 22.16 Health & Family 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

12 Office Building -Kottarakkara Municipality and Erattupetta Municipality 12.93 Local Self Government

13 New Building For Municipal Office, Ramanattukara Municipality 12.40 Local Self Government

14 Construction of Cherikkal Kottam Bridge across Anjarakandy river in Kannur District 13.86 Public Works

15 Improvements to Hosdurg-Panathur road by providing BM and BC from 24/000 to 42/000 in Kasargode District 59.94 Public Works

16 Improvement to Ramakkalmedu-Cumbummedu Vannapuram Road- Part 1- Cumbummedu To Njondical- 28.1km 73.21 Public Works

The total outlay of projects approved by KIIFB till dateIn 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.


17 Hill highway-Improvements to Hill Highway from Vallithod to Ambayathod between Km 36/506 to 45/000,58/450 to 60/480 and 64/700 to 90/000 in Kannur District 50.47 Public Works

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

20 Improvement works to Thiruvambadi-Pulloorampara-Edathara-Marippuzha road in Kozhikode District 77.11 Public Works

21 Improvements to Karuvannur Katttoor road ch 0/000 to 11/750 km 43.68 Public Works

22 Improvements to Sreekandapuram-Chempanthatty-Naduvil road Km 0/000 to 9/760 in Kannur District 31.91 Public Works

23 Improvements to Ammanappara-Pacheni-Thiruvattoor-Therandi-Chapparappadavu road km 0/000 to 14/000(1st reach) and Vimalasseri to Eruvatty road km 5/700to 10/700 44.24 Public Works

24 Construction of Pattambi Bridge in Palakkad District 30.86 Public Works

25 Land Acquisition - Reconstruction of vayalar Bridge and Muttombazar Ettupurackal road in Alappuzha District 10.00 Public Works

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

28 Construction of RoB in lieu of LC 291 in between Railway KM 868/800-900 at Manjeshwar in Kasaragod District 40.40 Public Works

29 Construction of ROB in lieu of LC 189 in between Railway KM 669/700-800 at Temple road in Kozhikode 36.84 Public Works

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

35 Construction of RoB in lieu of LC 554 in between Railway KM 168/400-500 (Ollal) near Ayyappa temple in Kollam 36.75 Public Works

36 Construction of ROB in lieu of LC 543 at Railway KM 157/200-300 near SN College in Kollam 44.66 Public Works

37 Construction of RoB in lieu of LC 204 in between Railway KM 690/600-700 at Nelliyadi Kadavu in Kozhikode 28.39 Public Works

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

42 Construction of Anjudi - Kundungal Bridge across Canoli Canal in Tanur LAC in Malappuram District 22.16 Public Works

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

45 Land Acquisition_Improvements to Puliyarakonam Kuzhakkad Temple Road in Thiruvanathapuram District 7.40 Public Works

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

51 Construction of Regulator with Lock across Anjarakandy River at Parapuram in Pinarai Panchayath,Kannur District 46.37 Water Resources

52 Construction of Regulator across Chittur Puzha at Vadakarapally Palathulli in Peruvembu Grama Panchayat in Palakkad District 19.84 Water Resources

Total 1530.32


Projects approved by BoardNo Name of the Project Cost in

Rs.Crore Department

1 Construction of Azhikode - Munambam Bridge, Thrissur 140.01 Public Works

2Comprehensive drinking water supply schemes to Perumatty, Pattenchery, Elappully, Nallepilly panchayaths in Palakkad district -Phase III to benefit end users

77.21 Water Resources

3 Extension of Moolathara Right Bank Canal from Korayar to Varattayar 255.18 Water 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. KochiBangaloreIndustrialCorridor

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. AzhikodeMunambamBridge,ThrissurDistrictAzhikode -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. ExtensionOfMoolatharaRightBankCanalFromKorayarToVarattayar, PalakkadDistrictThe 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. ImprovementsofEzhamkulamKaipatoorRoadinPathanamthittaDistrictThe 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


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. ImprovementtoRamakkalmedu-CumbummeduVannapuramRoad-Part1-CumbummeduToNjondical.IdukkiDistrict.

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. ConstructionOfPonnaniNilatheeramIndoorAndAquaticComplex ,MalappuramDistrict.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. DevelopmentofChethyBeach,AlappuzhaDistrictThe 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.AugmentationofInfrastructurefacilitiesAtMGUniversity, KottayamThe 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 . ConstructionOfROBInLieuOfLC291InBetweenRailwaykm868/800-900atManjeshwarInKasaragodDistrict

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 . ThallasseriHeritageProjectPhase-IThe 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.


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

Traditionally, the material used for construction of Bridges in Kerala is predominantly Concrete. As a construction material, Concrete scores on several counts, especially when it comes to ease of construction, use of local materials and economy when compared to several other materials. However, concrete construction requires significant amount of natural materials like cement, sand and aggregates. Within a short span of time, both Coarse and Fine aggregates have become very scarce, putting severe strain on the construction industry resulting in keeping several developmental activities on hold. Thus, there is an urgent requirement of intervention to remedy this situation. While there are several methods in reducing the use of aggregates by increasing the strength, using manufactured aggregates and recycling the Construction and Demolition wastes, a time has come to restrict use of concrete to the bare essential works only and bring in alternative technologies and materials for use in construction.

One of the promising options is to use steel as an alternative construction material. Steel has always been used in bridge constructions in Kerala from the British times. Post-independence the usage of steel in bridges has been reduced due to short supply. Hence there was a migration to concrete more of convenience.

Here we look at the possibility of using steel and steel – concrete composite construction as a major technology for construction of bridges and elevated Structures in Kerala.

Advantages of steel over concrete: The following table gives a comparison between the two materials, Steel and Concrete:

The biggest advantage of steel or steel concrete composite construction is the short construction time and recyclable nature of the materials. This technology has been proved to be sustainable as it has been considered as a grave-cradle material. Steel


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 ConcreteSteel construction is invariably prefabricated. The structure will be fabricated in a factory / Workshop, transported and erected at construction site.

Manufacturing concrete involves collection and stacking of the constituent materials like cement 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 be reduced leading to savings in foundations.

The Dead Load is relatively very high, requiring heavier foundations.

With reduced dead loads active mass of the superstructure is also reduced resulting in substantial reduction in earthquake response. Thus, saving cost of substructure and foundations.

The Structures made of concrete will have enhanced mass resulting in higher lateral loads due to earthquake. This will require heavier substructure and foundations

Steel is hundred percent recyclable which practically makes it virtually an indestructible material. So, the major advantage of steel is in terms of Sustainability.

Technologies for recycling of concrete are yet to be developed resulting in disposal of the material after service life is over.

It is easier to maintain the quality of construction as the entire structural elements are factory made and only very little site work is involved.

Practically the entire process of making concrete and laying are done at site, hence the quality assurance is quite difficult.

There is considerable savings in time of construction and the structure be can put to use by the public at 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.

The construction of a Bridge using concrete is a time-consuming process.


Steel-concrete composite bridges represent an alternative to prestressed reinforced concrete bridges especially in railway bridges. They are particularly suited for spans ranging from 30 m to 80 m, when using standard composite solutions.

Steel also has broad architectural possibilities. Steel bridges can be made to look light or reassuringly solid and can be sculptured to any shape or form. The high surface quality of steel creates clean sharp lines and allows attention to detail. Modern fabrication methods can easily provide curvature in plan and elevation. The painting of steelwork introduces color and contrast, and repainting can change or refresh the appearance of the bridge. Bracing, stiffeners, utilities and other components are typically hidden within the box, resulting in a smooth, uncultured form.

When a steel bridge reaches the end of its useful life, the girders can be cut into manageable sizes to facilitate demolition, and returned to steelworks for recycling.

This goes a long way toward minimizing negative environmental impact.

The key benefits of steel structures can be summarised as below:

Economic Benefits

Environmental Benefits

Benefits to Society

Faster construction reduces traffic and business disruption. Steel allows longer spans to be built, which limits impact on habitats below.

The ability to recycle and reuse steel bridges reduces environmental impacts

Steel bridges are generally safer to build and less likely to fall

Steel bridges lasts longer

Steel produced in controlled manufacturing environments limits waste.

Steel bridges are visually lighter and more attractive than other bridge types

Steel components require less maintenance and don’t need to be replaced as often.

Steel is highly adaptable to different climates and geographic conditions

Steel components are used to transmit critical utility services across bridges.

The lighter weight of steel means smaller, less costly equipment — including lifts — can be used on construction sites.

The relative lightness of steel compared with other materials reduces energy use during delivery and construction

Steel components are less likely to be damaged during extreme events like hurricanes and earthquakes.

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.

Figure.2


Economy and Market WatchIn 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 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.

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 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.


RESURGENT KERALA BONDDiaspora Bond - AboutDiaspora 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 FUTURE12 Printed and Published on 01/07/2020, 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

Pravasi Dividend Scheme

Total number of customers 57509

Total number of subscribers 13068

Total amount collected INR 229.86 Cr

KIIFB Deposit bond subscribed INR 136.9 Cr

KIIFB Security bond subscribed INR 25.636 Cr

Total number of registrations 7582

Total no. of depositors 727

Total amount deposited INR 87.78 Cr

PRAVASI Chitty Statistics as of 30th June 2020

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pravasikerala.org

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.

Notes from the Administrative Inspection Wing. . . . . .

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.

Physical Progress Updating of the Project using Project Monitoring and Alert System (PMAS)

Documents

Defining the Future - KIIFB