V 2 ue 10 - :: KIIFB

KIIFB NEWSLETTERVol 2. Issue 10.2

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

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE2

More in the next edition. Happy Reading.

Chief Executive Officer, KIIFB

From the CEO’s desk…

In the last edition of our newsletter, I had used my column to discuss the controversy around KIIFB audit and had promised our readers that we would discuss the other internal processes that bring the rigor to our appraisal and quality control processes. Today, we will briefly outline the project appraisal cycle in KIIFB.

The processes in KIIFB in the approval and execution of projects start with the Project Appraisal Stage. Essentially a project is selected for financing by KIIFB in two ways. Government may either through the Budget Speech or as on order of the Council of Ministers take up projects for KIIFB financing. The Administrative Department issues the administrative sanction for the projects announced in the Budget Speech and for those approved by the Council of Ministers. An alternative mode of selection of projects is when the KIIF team proposes projects and they are approved by the KIIF Board chaired by the Hon. Chief Minister. Except for the inclusion of the Cycling Track into the Coastal Highway Project, all the other projects in the list of 591 projects approved by the KIIF Board are those that have been proposed by Government.

Once, the project is approved, the Administrative Department selects a Special Purpose Vehicle (SPV) for planning, design, estimation and execution of the projects. The Act refers to SPVs as public agencies and can be a central or state owned or controlled body. A tripartite agreement is executed between the concerned Government Department, the SPV and KIIFB. The SPV then prepares the Detailed Project Report (DPR) and submits it to the Project Appraisal Division (PAD) of KIIFB.

The PAD verifies the DPR with special reference to whether AS for the project has been issued, whether the DPR submitted is in KIIFB’s prescribed template and whether all related documents including Estimates have been provided etc. The entire processing is done through the online system PROJECT FINANCE AND MONITIRING system of KIIFB. PAD avail the technical services experts in the related sector through M/s Centre for Management Development (CMD) which is a body receiving grant-in-aid from Government. CMD’s scope of services include scrutiny, report and appraisal.

Once the experts from CMD vet the project, it provides Technical Appraisal Report (TAR-1) on the DPR to PAD in KIIFB (PAD). PAD reviews the TAR and forwards it to SPV, for rectification and compliance report. PAD forwards the compliance report provided by SPV to CMD for check the compliance achieved. If the Compliance report of SPV is satisfactory, CMD provides Detailed Appraisal Report (DAR) to PAD. Otherwise, CMD again provides Compliance Check Report (CCR) to the PAD for rectification by SPV. PAD forward the CCR, received from CMD, to SPV for compliance. The reply on CCR, received from SPV is forwarded to CMD for report (DAR). Depending on the expertise of the SPV and the quality of the DPR, there could be several iterations and even meetings arranged by PAD to bring this process to a successful completion.

PAD consolidates the DARs provided by CMD (recommending the project) and places the same before the Executive Committee chaired by the Hon. Minister (Finance) or the Governing Body of

KIIF chaired by the Hon. Chief Minister for consideration. At present, projects with an outlay of up to Rs.100 cr. go to the Executive Committee, while projects bigger in outlay are placed before the Governing Body for approval. Once the EC/Board approves the project, PAD issues Sanction orders (Proceedings) for the projects approved by the EC/ Board of KIIF. On approval from KIIFB, the SPV concerned shall initiate execution of the project (Technical Sanction – Tender – Work award – Supervision – submission of Bill to KIIFB etc.).

This process is completely done on an online system and typically takes between 2-6 months depending on the technical complexity of the project. In the next edition, I hope to continue the discussion on systems within KIIFB and the rigor and integrity of internal processes in KIIFB.

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 3

Sl. No Project Name/Description

Project Outlay approved by KIIFB in Rs.

Cr.

Sector/ Department

1 Parappanangadi fishing harbour 112.22 Fisheries & Ports

2 Modern Abbatoir at Perinthalmanna Municipality 10.26 Local Self Government

3 Construction of Olambakkadavu Bridge in Ponnani & Thavanur LACs 28.46 PWD

4 Construction of Chelari-Chettippady Railway Over Bridge 30.2 PWD

5 Thanur Town-Theyyala railway over bridge 31.31 PWD

6 Construction of Pookkaithakkadavu Bridge across Ezha puzha in Malappuram District 19.16 PWD

7 Flyover at Edappal Jn. Malappuram 11.27 PWD

8 Thirunavaya- thavanur River Bridge 53.38 PWD

9 Kottakkal- Kottapadi Road 18.85 PWD

10 Construction of Coastal Highway in Malappuram District Reach 1- Padinjarekkara to Unniyal Junction km0/000 to 15/000 52.78 PWD

11 Improvements and Providing BM & BC surfacing to Kadungallur- Vilayil- Chaliyapuram road in Kondotty LAC of Malappuram District 16.41 PWD

12 Widening and providing BM & Bc Surfacing tp Tirur- Kadalundi Road Km 0/000- 14/000 in Tanur and Tirur LAC 61.17 PWD

13 Pookottumpadam – Kalikavu – Kerala estate – Kizhakkethala Karuvarakundu - Chirakkal – Pulvetta – Karinkanthoni – Ponapara in Malappuram District 103.11 PWD

14 Pookkottumpadam- Thampurattikkaliu Munderi Seed Farm Gate Road- Nilambur LAC 115.38 PWD

15 Widening and Providing BM & BC to Pookottumpadam - Moolepadam bridge Road in Nilambur & Eranad LACs 49.5 PWD

16 Widening and Providing BM&BC surfacing to Manjeri - Olipuzha road between km 0/000 to 16/200 85.61 PWD

17 Construction of Panampalam bridge in Tanur LAC 12.9 PWD

18 Oradumpalam - Vylongara Bypass Road 12.62 PWD

19 Construction of Karma bridges across Canoli canal connecting with Ponnani port and Chamravattom regulator 33.46 PWD

20 Improvements and Providing BM&BC Works between km 4/350-11/900 of Poolamanna - Thaliyamkundu-Vaniyambalam Road 21.4 PWD

Focus District: MalappuramMalappuram located in northern part of

Kerala, is bordered by districts of Wayanad and Nilgiri (Tamilnadu) in northeast, Kozhikode in north, Palakkad to southeast, and Thrissur to the south. The district was formed in 16 June 1969 carving out areas from the then Kozhikode (Ernad Taluk and portions of Tirur Taluk) and Palakkad (portions of Perinthalmanna and Ponnani taluks) districts. According to 2011 census, the district has a population of about 41.13 Lakhs. For administrative purposes, the district is divided to eight taluks of Eranad, Tirur, Tirurangadi, Ponnani, Perinthalmanna, Nilambur and Kondotty. Ponnani, Thavanur, Kottakkal, Tirur, Thanur, Tirurangadi,

Valikkunnu, Vengara, Malappuram, Mankada, Perinthalmanna, Manjeri, Wandoor, Nilambur, Eranad and Kondotty are the sixteen Legislative Assembly Constituencies in the District. Along with several initiatives and projects being undertaken by Government of Kerala in the district, projects funded by KIIFB will significantly contribute in improving 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:


21 Improvements and Providing DBM & BC Works on Kondotty-Edavannappara - Areacode road between km 0/000 and 20/968 (excluding km 11/600 to 11/950) 22.48 PWD

22 Construction of ITI at Ponnani 2.08 SC/ST Development

23 Malapuram P.Moideenkutty Indoor Stadium 35.48 Sport & Youth Affairs

24 Nilambur Mini Stadium 18.3 Sport & Youth Affairs

25 Tanur Stadium Complex Kattilangadi GHSS 10.07 Sport & Youth Affairs

26 Construction of Municipal Stadium at Tirur 7.05 Sport & Youth Affairs

27 Comprehensive WSS to Ponnani & adjoining Panchayaths 74.4 Water Resources

28 CWSS to Thiruvali & Adjoining Villages-Phase I & II-Thiruvali and Wandoor Part-1 22.2 Water Resources

29 Water Supply Scheme to Tanur Municipality and adjoining 4 Panchayaths - phase 1 100 Water Resources

30 Replacement of Transmission Mains in Malappuram Circle 28.42 Water Resources

31 WSS to Edayur panchayath and service level improvement of existing WSS to Irambiliyam panchayath and Valanchery Muncipality 72.15 Water Resources

32 WSS to Ramanchadi- Aligar in Malappuram District 92.52 Water Resources

33 Comprehensive Water Supply Scheme to Edavanna panchayat in Malappuram District 47.21 Water Resources

34 Manjeri Suburban Drinking water project-Improvements and Augmentation of UWSS to Manjeri Muncipality including water supply arrangements to Payyanad and Thadapparamba 72.58 Water Resources

35 Improvement to WSS of Kondotty Municipality 108.7 Water Resources

36 Construction of Regulator cum Bridge Across Kadalundi river at Puzhamkavu in Manjeri Municipality 12.07 Water Resources

37 Construction of Regulator cum Bridge across Thoothapuzha, Keezhmurikkadavu, Moothikkayam in Moorkanad panchayat 67.64 Water Resources

Total 1672.80

Under Protection of Public Education (PPE) Mission, and the state-wide Project “Upgradation of One school in each constituency” the infrastructure in following 16 (sixteen) schools in the district are upgraded to higher standards with KIIFB funding of Rs. 5 crore each:

Under the state-wide project “Betterment of Infrastructure in 229 schools, physical infrastructure in the following 36 (thirty six) schools in the district are improved with a KIIFB funding of Rs. 3 crore each:

Sl. No. Name of School

Legislative Assembly

Constituency

1 Purathur Govt. H.S. Thavanur

2 Nannamukku Mookkuthala P.C.N. Govt. H.S. Ponnani

3 Vengara Govt. Boys V.H.S.S Vengara

4 Parappanangady Neduva Govt. H.S.S Tirurangadi

5 Thanur Devathar Govt. H.S.S Thanur

6 Perinthalmanna Govt. Model H.S.S Perinthalmanna

7 Kalppakanchery Govt. H.S.S Tirur

8 Pandikkad Govt. H.S.S Manjeri

9 Thuvur Govt. H.S.S Wandoor

10 Kondotti Govt. V.H.S.S Kondotty

Sl. No. Name of School

Legislative Assembly

Constituency

1 Chelari G.V.H.S.S Vallikunnu

2 Vengara G.G.V.H.S.S Vengara

3 Nellikkuth G.V.H.S.S Manjeri

4 Vandoor G.G.V.H.S.S Wandoor

11 Makkarapparambu Govt. H.S.S Mankada

12 Malappuram Govt. G.H.S.S Malappuram

13 Kuttippuram Perassannur Govt. HSS Kottakkal

14 Peruvallur Govt. H.S.S. Vallikunnu

15 Kuzhimanna Govt. H.S.S Ernad

16 Govt. Manavedan VHSS, Nilambur Nilambur


Sl. No Name of Hospital Facility

Installed

1 General Hospital Manjeri Cathlab & CCU

2 Taluk Headquarters Hospital, Tirurangadi Dialysis Unit

3 Taluk Headquarters Hospital, Perinthalmanna Dialysis Unit

Sl. No Description

KIIFB Approved

amount in Rs. crore

1 Pookoya Thangal Memorial (P.T.M.) Gov-ernment College, Perinthalmanna 7.45

2 Govt. Arts and Science College Kondotty (GASCK) 6.13

3 Government College, Malappuram 5.04

4 Government College, Thavanur 10.24

Total 28.86

Sl. No Description

KIIFB Approved

amount in Rs. crore

1 Sub-Registrar Office, Malappuram 1.287

2 Sub-Registrar Office Parappanangadi 1.376

3 Sub-Registrar Office, Tanur 0.992

4 Sub-Registrar Office, Kuttipuram 1.285

5 Sub-Registrar Office, Kalpakanchery 0.881

6 Sub-Registrar Office, Thenhipalam 0.735

Total 6.556

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 higher education project “Augmentation of Infrastructure facilities in Government Colleges”, the following college in the district is upgraded:

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:

5 Keezhuparambu Govt. V.H.S.S Eranad

6 Idavanna S.H.M.V. V.H.S.S Eranad

7 Thrikkavu Govt.H.S.S Ponnani

8 Idappal Govt.H.S.S Tavanur

9 Kottakkal G.R.H.S.S Kottakkal

10 Kattilangadi Govt.H.S.S Tanur

11 Thiroorangadi Govt.H.S.S Thirurangadi

12 Puthupparamba Govt.H.S.S Thirurangadi

13 Calicut University Campus G.M.H.S.S Malappuram

14 Othungal Govt.H.S.S Vengara

15 Malabar Special Police H.S.S Malappuram

16 Pookkottur Govt.H.S.S Malappuram

17 Pulamanthol Govt.H.S.S Perinthalmanna

18 Kunnakkavu Govt.H.S.S Perinthalmanna

19 Karakkunnu Govt.H.S.S Manjeri

20 Manjeri G.B.H.S.S Manjeri

21 Vaniyambalam Govt.H.S.S Wandoor

22 Thiruvali G.H.S.S Wandoor

23 Karuvakkundu G.H.S.S Wandoor

24 Pullangode G.H.S.S Nilambur

25 Pookkottumpadam G.H.S.S Nilambur

26 Moothedath G.H.S.S Nilambur

27 Idakkara G.H.S.S Nilambur

28 Areekkode G.H.S.S Eranad

29 Kavanur G.H.S.S Eranad

30 Kottappuram G.H.S.S Kondotty

31 Vazhakkad G.H.S.S Kondotty

32 Mannancheri Govt. H.S Ponnani

33 Karippol G.M.H.S Tirur

34 Thrikkulam Govt. H.S Thirurangadi

35 Anchachavadi Govt. H.S Wandoor

36 Chaliyappuram Govt. H.S Kondotty


A. Parappangadi Fishing HarbourThe proposed harbour at Parappanangadi is

located 1.5 km west of Chettipadi junction. The site is located about 7 km west of NH17 and only 4.5 km away from Parappanangadi railway station. Fishermen community and fishery industry in Parappanangadi are currently affected with lack of enough infrastructure in the fisheries sector. The yield is comparatively less due to this. Also, absence of hygienic standards and HACCP certification restricts the growth of sector in the region. The proposed fishing harbour is expected to fill the fisheries infrastructure deficit in Malappuram. The key components proposed in the Harbour are 2 Rubble mound breakwaters (1375 m and 785 m long), Wharf (2 x 150 m), Auction halls, Fish loading area, Administrative building, Gear & net mending shed, Quay wall and Shopping complex. The fishery harbour is designed to accommodate 80 mechanised fishing vessels of length up to 18 m with a loaded draft of about 2.5m. 88 large size marine motorized plywood traditional crafts and 400 medium sized motorized traditional crafts will also operate from proposed harbour. Facilities are provided inside auction hall for washing, hygienic handling, better sanitation and for introduction of a centralized fish market facility with a transparent auction system.

The SPV, Kerala State Coastal Area Development Corporation (KSCADC) is currently in the process of finalising the tender after issue of Technical sanction.

B. Construction of 15 Km Integrated Coastal Highway and Cycle Track between Padinjarekara and Unniyal, Malappuram District

Considering the imperative benefits of the Coastal Highway and its impact in the life of coastal community, Government of Kerala in budget 2017-2018 announced the ambitious plan of developing Coastal Highway with KIIFB funding. As per the alignment study conducted by Public Works Department, GoK, total route length of Highway is 655.6 Km with a cost estimate of Rs. 6048 crore. Tourism has been one of the most vibrant and dynamic sectors of the Kerala

Economy. Its contributions to GDP, employment, income and foreign exchange earnings are significant. To Position Kerala as a preferred destination for cycle tourism and thereby enhancing the tourism related economic activities of the state, Board of Governors, Kerala Development and Innovation Council (K-DISC) in its first meeting held on 02nd March 2018, discussed and approved Coastal Cycling Tourism Destination Project (CCTDP). For the effective implementation of both the projects, both needs to be integrated. The development improvement of the coastal highway is to be expanded further for overlaying proper Cycle Tracks with Standard Dimension.

A 15 Km road stretch between Padinjarekara and Unniyal , Malappuram District will be the first road reach to be taken up for construction in the project “Integrated Development of Coastal Highway and Cycle Track”. The Proposed road improvement works starts from Padinjarekkara (Northern bank of proposed Ponnani bridge) and ends at Unniyal Junction. The stretch forms part of the historic Tippu Sulthan road, which traverse through the coastal belt of Malappuram. The existing road is an intermediate carriage way with the average width of pavement. On development the carriage way will increased to 7.0 m. Dedicated and segregated Cycle Tracks with 2.00 m width will be provided across the length. 1 m or 1.5m paved shoulders on both sides and 1.5 m wide drain on both sides of the road (as applicable) will be provided. Average RoW for the stretch will be 14m to 15.6m, adhering Coastal Highway Standards of KIIFB Planning and Design Manual.

As the first project to be approved under the scheme of Integrated Development Coastal Highway and Cycle Track, the project will pave way for all future development works in coastal highway. The project would not only of great economic importance, but also position the State as a destination for Activity based tourism. The project is implemented by the SPV Kerala Road Fund Board. Construction work of the project are in active progress with works being executed by the contractor M/s ULCCS Limited.

Project Showcase : Malappuram


AN OVERVIEW OF BASE ISOLATION TECHNIQUE IN EARTHQUAKE RESISTANT ENGINEERING

Buildings or structures are usually designed to bear only vertical loads. However, in the event of an earthquake, the ground shakes to & fro. This motion of the ground, imposes an additional horizontal load on the building which it is unable to withstand unless specifically so designed; hence the damage. Surprisingly, the additional cost to make a building/structure earthquake resistant is very low, usually about 5% of the structural cost of the building which comes out to be not more than 1-2% of the total cost of the building. A number of methods have been developed to build earthquake-resistant structures. These techniques range from extremely simple to fairly complex. For small- to medium-sized buildings, the simpler reinforcement techniques include making the structure ductile when subjected to earthquake. This ductility is achieved using properly placed reinforcement and providing support walls called shear walls. Shear walls, made of reinforced concrete help strengthen the structure and help resist rocking forces. Sometimes, the buildings are protected using medium-sized devices that act like shock absorbers between the building and its foundation. These devices called base isolators, are usually bearings made of alternate layers of steel and an elastic material such as synthetic rubber. Also base isolators absorb some of the sideways motion that would otherwise damage a building. Seismic base isolation, also known as base isolation or base isolation system is one of the most popular means of protecting a structure against earthquake forces It is a collection of structural elements which should substantially decouple a superstructure from its substructure, resting on a shaking ground thus protecting a building or non-building structure’s integrity.

The isolation can be obtained by the use of various techniques like rubber bearings, friction bearings, ball bearings, spring systems and other means. It is meant to enable a building or non-building structure to survive a potentially devastating seismic impact through a proper initial design or subsequent modifications. In some cases, application of base isolation can raise both a structure’s seismic performance and its seismic sustainability considerably.

There are Six major types of base isolation devices which are widely adopted for seismic base isolation.

• Elastomeric Bearings.• High Damping Bearings.• Lead Rubber Bearings• Flat Slider bearings• Curved Slider Bearings or Pendulum Bearings.• Ball & Roller Bearings.

Working of base isolatorsA fixed-base building (built directly on the ground)

will move with an earthquake’s motion and can sustain extensive damage as a result. When a building is built away (isolated) from the ground, resting on flexible bearings or pads known as base isolators, it will only move a little or not at all during an earthquake. The isolators work in a similar way to car suspension, which allows a car to travel over rough ground without the occupants of the car getting thrown around. Base isolation technology can make medium-rise masonry (stone or brick) or reinforced concrete structures capable of withstanding earthquakes, protecting them and their occupants from major damage or injury. It is not suitable for all types of structures and is designed for hard soil, not soft.

Advantages of Base Isolation• Apart from protecting structures from seismic

activities, base isolation also protects them from blast loads as the ability to move reduces the overall impact of the blast on the structures.


• Base isolated structures are predictable, hence reliability of them is very high as compared to conventional structural components.

• Need of strengthening measures such as frames, bracing and shear walls in cut down by reducing the earthquake forces transmitted to the building.

• Simplification of seismic analysis as compared to the conventional structures by allowing reduction in structural elements.

• In case of large unexpected seismic activities, damage is only concentrated in isolation system, where elements can be easily substituted.

• Base isolation can also be retrofitted to suitable existing structures. Moreover, the building can remain serviceable throughout the construction.

Disadvantages of Base Isolation• Base isolation can’t be done on every structure,

for example: it is not suitable for structures resting on soft soils.

• Becomes less efficient for high rise buildings.• Unlike other retrofitting base isolation cannot

be applied partially to the structure.• Implementation in efficient manner is difficult and

often requires highly skilled labours and engineers.

Application of Base Isolation• Though the technology is still developing it has

already been used in interminable number of structures.

• It was firstly implemented in New-Zealand in 1974 and was first enforced in India in 2001 after Gujrat earthquake.

• LA city hall (height 138m) in Los Angeles is the tallest base isolated building in the world.

• It has found numerous applications in modern times such as retrofitting it in residential

buildings, buildings of historical importance, monuments, bridges, etc.

BASE ISOLATION IN INDIAThe 300 bed Bhuj hospital has claimed 176 lives

when it is collapsed during the major earthquake of Gujarat 2001. This catastrophic incident has made the engineers to build up a new hospital building which can withstand earthquake of higher magnitude than 2001 earthquake. This was the first building in India to be fitted with earthquake – resistant base isolation technology. This building has equipped with 280 lead rubber bearing pads, each at the column head of basement floor.

Recent calamities in India demand steps for controlling the damage triggered by earthquakes. Amongst the various alternatives, the use of base isolation technique is the most cost-effective, having technical advantages and reliability. Researches are on in exploring the possibility of reducing the cost of base isolators for promoting wider use of this technology in earthquake prone areas.


PRAVASI DIVIDEND SCHEMEA major concern faced by majority of the Non

Resident Keralites (NRKs) belonging to the lower income group is an absence of savings to cater to their needs on returning from abroad. An average NRK belonging to this section of society, toils all through his life to meet the basic needs of housing, education and marriage of their children. Towards the time, he returns to settle in his home state, he finds himself in deep financial crisis, which might even literally cripple him psychologically as well.

The Government of Kerala, keeping this pressing need of the NRK in mind has been aspiring to devise a solution to this problem faced by the NRKs. The Pravasi Dividend Scheme was designed with the main intent of addressing this vexing issue.

The Kerala Non-Resident Keralites’ Welfare Board is constituted under the Non-Resident Keralites’ Welfare Act, 2008 for the purpose of carrying out activities for the welfare of the Non-resident Keralites (NRKs). Among its activities, the Board, with the approval of the Government of Kerala, has formulated the scheme for providing assured income namely Dividend to the NRKs working outside Kerala or returned NRKs, so as to help them to set apart a portion of their savings and to earn returns there from to sustain their livelihood on returning to Kerala.

Though the word ‘Dividend’ is used to denote the assured income provided under the Scheme, it does not bear the original meaning of share of profit since the scheme does not envisage to carry out any activities for generating profit.

The 37th meeting of the General Body of KIIFB has approved the Pravasi Dividend scheme. It is proposed that the deposits mobilised in this regard from the Non Resident Keralites (NRKs) be invested in KIIFB and the monthly interest earned on the deposit along with the interest for the initial lock-in period (first 3 years) be added to the principal and paid as dividend to the depositor/spouse and on their demise the principal amount with the initial lock-in period interest amount be disbursed to the depositor’s legal heirs and payment of dividend discontinued thereafter.

The scheme will be made operational for one year to begin with. Extension of the scheme beyond this will be after a thorough review of the scheme and seeking permission from the Government & General Body of KIIFB.

The salient features of the scheme are as follows; • This scheme is applicable to all Pravasis. • Any Pravasi can become member of the Scheme

by giving Contribution which shall not be less than Rs. 300000/- (Rupees three lakh only) or more than Rs. 51,00,000/- (Rupees Fifty One lakh only) into the scheme.

• There shall not be any payment of the dividend for the first three years of the Contribution.

• The member shall be paid monthly dividend for his/her life time from the month succeeding the completion of three years from the date of contribution, at the rate of 10% per annum of the amount standing to the credit of each member comprising of one time contribution and the dividend accrued there on as at the end of the first three years.

• Upon the demise of the member/ beneficiary, the dividend shall be paid to the spouse of the beneficiary for his/her life time.

• The Contribution together with the accrued dividend of the initial three years shall be returned to the nominees/legal heirs of the member/ beneficiary after the death of the member/beneficiary or his/her spouse, whichever is later and the payment of monthly dividend shall cease thereafter.

• The Contribution shall not be offered as security for any loans by the member and it shall not be available for any type of attachment.

• The Contribution shall not be withdrawn during the life period of the member/ beneficiary or his/her spouse, whichever is later.

Through this scheme, the NRI Malayali community across the globe gets to participate in rolling out landmark infrastructural development in their home state while simultaneously saving a portion of their earnings and creating a revenue stream to support them on returning back to India.


Economy & Market WatchOver the past decade, we have seen that INR/USD and NIFTY move in tandem on many occasions. All

these years, an event of INR crash seemed to correlate with a significant fall in NIFTY. To get a better picture of the relative movements of both, we have plotted the INR/USD exchange rate with the movement of the NIFTY over the past one year using Bloomberg terminal.

As it seems intuitively, if we look at the relationship between the NIFTY and the INR/USD over a short period, the relationship appears to be quite strong and positively correlated. We have obtained a correlation coefficient of 0.2, which indicates a more pronounced correlation between the two variables.

Also, the correlation of 10 Year G-Sec yields with NIFTY and INR/USD exchange rate were analysed and we obtained a negative correlation for the time period of 1 year in consideration. The correlation co-efficient of G-Sec with NIFTY and INR/USD exchange rate were -0.035 & -0.219 respectively for the period.

Theoretically, the equity markets index (NIFTY) should be negatively correlated with bond yields. As higher cost of capital on account of higher rates in the country, suggested by 10-year G- Sec yield, leads to lower equity valuations and lower market capitalizations (captured by NIFTY).

Global cues of a slowing economy have resulted in an overall negative trend for G-sec yields during the past year. However, G-Sec yields have hardened, after a fall in yields to 6.4% in July 2019, since the union budget and subsequent stimulus measures by GoI. RBI’s rate cut of 60 basis points to repo rate since July 2019 has kept yields muted.

Conclusion: The INR/USD and the NIFTY do tend to correlate positively and on the other hand, the G-Sec yield has a negative correlation with NIFTY.


Administrative Inspection Wing notes...The Administrative Inspection Wing (AIW)

reviewed the progress of implementation of the sub-project “Replacement of Transmission Mains in Kollam Circle (WRD005-122)” by Kerala Water Authority in the last fortnight.

In this Sub-Project Kottrakkara Division office of KWA is carrying out 10 works. Of this, only one work viz., “Replacement of transmission main from Pallimukku to Hospital Junction” has been completed and six are ongoing. Revision of estimate is required for the remaining three. In the case of the completed work, certificate of completion is not seen issued though final bill prepared.

It is further observed that Agreement execution is lagging mainly due to the non-receipt of clearance/ permission for road cutting from various

Departments/Agencies such as PWD/NHAI/KSTP/Railway/LSGIs etc. In some works, road digging permission has been sought from PWD only after the supply of pipes and permission has been sought from Railway after five months of agreement. Another reason for delay is the estimate revision. It is seen that estimate for road restoration was prepared without considering the actuals from the concerned Departments/Agencies. It has also observed that the Project Documents in the post approval phase are not uploaded in the KIIFB portal and the WBSs are not prepared as mandated in KIIFB guidelines in line with the detailed process specified in Circular No. FA-5/352/2018/KIIFB dt. 18.06.18 and No. APM-A3/2516/2018/. The PMU of KWA has been directed to rectify the deficiencies observed on inspection.

A KIIFB Project under Kerala Water Authority

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE12Printed and Published on 15/10/2019, 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 25248 5607 7107

2 Albania 7 1 13 Austria 8 1 14 Australia 37 4 45 Belgium 5 3 36 Bahrain 1539 354 4307 Canada 188 Switzerland 4 3 39 China 1

10 Costa Rica 1

11 Christmas Island 1

12 Czech Republic 6

13 Germany 45 13 1514 Denmark 115 Spain 716 Finland 317 France 12 1 120 Croatia 121 Hungary 122 Ireland 104 18 2323 Israel 4 1 124 Italy 38 7 725 Jordan 426 Japan 2 1 127 Kenya 228 Kuwait 2250 478 572

29 Kazakhstan 3 1 130 Lebanon 2 1 231 Luxembourg 232 Latvia 333 Malta 46 10 1734 Maldives 10 1 135 Malaysia 4 1 136 Nigeria 237 Netherlands 18 6 6

KSFE Chitty goes globalProgress Report as of 15th October 2019

[email protected]

Total Monthly sala 15.55 Cr

KIIFB Security Bond Subscribed 15.93 Cr

No of Prize Money Deposited 1280

Total Amount of Prize Money Deposited 41.50 Cr

No of Prize Money Disbursed 438

Total Amount of Prize Money Disbursed 13.79 Cr

Total Amount Collected (in Crore) 78.95 Cr

Total Leads 121293

KYC Approved Customers 26079

Chit Subscriptions 10789

KIIFB Deposit Bond Subscribed 42.1 Cr

Statistics as on 15.10.2019

38 Norway 8 3 439 Nepal 140 New Zealand 7 2 341 Oman 2156 496 57442 Philippines 143 Poland 1244 Portugal 445 Qatar 4397 824 97146 Romania 147 Russia 448 Saudi Arabia 3982 831 95249 Sweden 5 1 150 Singapore 10 2 751 Slovenia 152 Thailand 353 Turkey 1 1 154 Uganda 2 1 1

18 United Kingdom 362 62 73

55 United States of America 20 3 4

56 South Africa 4Total 40420 8738 10788