Vidhi Codex

section 3

Kerala Infrastructure Investment Fund Scheme.

The Kerala Infrastructure Investment Fund Act, 1999
Infrastructure199934 sections
Read full ActSections
Statutory text
  1. (1) The Government may, by notification in the Gazette, frame a scheme to be called the 'Kerala Infrastructure Investment Fund Scheme' for the establishment of a fund under this Act for investments in the infrastructure projects of the State and there shall be established, as soon as may be after the framing of the scheme, a fund in accordance with the provisions of this Act and the scheme. 2[(1A) The fund corpus shall comprise of the net total of the amounts specified in sub-section (2) hereunder.] 7;]
  2. (2) There shall be credited to the fund,3[(a) the amounts released to the Board from the budget allocation under section
    • (b) the amount borrowed by the Board under section 8;
    • (c) grants or loans or advances made by 4[xxx] any institution;
    • (d) any amount raised by the Board from other sources to augment the resources of the Board; 1 Inserted by Act 15 of 2016 (w.e.f. 19.08.2016). 2 Inserted by Act 15 of 2016 (w.e.f. 19.08.2016). 3 Substituted by Act 15 of 2016 (w.e.f. 19.08.2016). 4 Omitted by Act 15 of 2016 (w.e.f. 19.08.2016).
    • (e) any other amount which, under the provisions of the scheme, shall be credited to the fund.
  3. (3) The fund shall vest in, and be administered by the Board constituted under section 4 1[in such manner as may be specified in the scheme.]
  4. (4) The fund may be utilised for all or any of the following purposes namely:—
    • (a) to finance 2[or leverage] investments in infrastructure projects in the State;
    • (b) to provide financial assistance to public sector undertakings and other undertakings for their investments in infrastructure projects; 3[(c) to redeem the bonds or debentures or any other financial instrument used to raise resources for the Fund and to repay the loans availed from co-operative banks, other commercial banks and any institution to implement the infrastructure project;] 4[(ca) to finance or leverage investments and financial instruments relating to land acquisitions for infrastructure projects and other Government purposes;
    • (cb) to provide funding for projects that face significant funding barriers because of the need to combine resources across multiple sectors or parts thereof;
    • (cc) to provide direct loans advances and loan guarantees to eligible projects, programmes of any legal entity or instrumentality including public or other undertaking for their investments in infrastructure projects identified by the State;]
    • (d) for implementation of any other purpose specified in the scheme. 5[(5) All moneys specified in sub-section (2) other than money contributed by Government under section 7, shall be deposited with the approval of the Board in a Nationalized Bank or in such other prudent investment: Provided that any portion of the money contributed by the Government under section 7 may be deposited or invested in any Nationalized Bank or in sovereign bonds of the Union or States or in such other prudent investment other than in the State Treasury. Explanation:— For the purpose of this sub-section, 'prudent investment' shall mean those investments which carry the highest rating from the appropriate regulatory body or credit rating agency for that class of investment;]
  5. (6) Subject to the provisions of this Act, the scheme framed under sub-section 1 Added by Act 15 of 2016 (w.e.f. 19.08.2016). 2 Inserted by Act 15 of 2016 (w.e.f. 19.08.2016). 3 Substituted by Act 15 of 2016 (w.e.f. 19.08.2016). 4 Inserted by Act 15 of 2016 (w.e.f. 19.08.2016). 5 Substituted by Act 15 of 2016 (w.e.f. 19.08.2016).
  6. (1) may provide for all or any of the matters specified in sub-section (4) and in the 1[first schedule;] 2[(6A) The accounts of the Board shall be operated by the Fund Manager: Provided that the Board may delegate the powers for operation of accounts to one or more officers of the Board and may set appropriate financial limits as it deems fit.]
  7. (7) The scheme shall be laid, as soon as may be, after it is framed, before the Legislative Assembly while it is in session for a total period of fourteen days which may be in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly makes any modification in the scheme, the scheme shall thereafter have effect only in such modified form, so however that any such modification shall be without prejudice to the validity of anything previously done under the scheme; 3[(8) The Government shall lay before the State Legislative Assembly along with the presentation of the Annual budget the following documents,(a) a statement of the sources and application of the funds of the Board; (b) a certificate from the Fund Trustee and Advisory Commission to the effect that the funds of the Board have been deployed for the purposes intended and that surplus funds have been managed as laid down under the provisions of this Act.]

Study data processing for this section.

PDF: pending for this language.