The cash-strapped state government is now looking at KSFE Pravasi chit funds to finance the ₹10,000-crore hill and coastal highway projects in the state.

A senior official of KSFE said the new chit funds catering to NRI customers would commence in June by launching a range of products worth ₹12,000 crore through a special campaign in the Gulf markets.

The reference on these two projects in the Finance Minister’s budget speech shows the government’s commitment to make it a reality by tapping NRI customers through the KSFE Pravasi chits.

‘Good initiative’ Terming the decision as a very good initiative, CJ George, Managing Director, Geojit Financial Services, said the move is expected to improve the transportation infrastructure of the state, particularly in the bottleneck areas of high ranges as well as coastal lines.

“However, the success of the proposal depends on how successful the government would be in getting NRI customers to KSFE chit funds,” he said.

On the hill highway project, the government has envisaged an investment of ₹3,500 crore and the roads will be constructed in a length of 1,267 km linking nine districts starting from Kasargodu to Kottayam. For the 630 km coastal highway, the state government has earmarked an investment of ₹6,000 crore.

Highways & minor ports Deepak L Aswani, Co-Chair, FICCI Kerala State Council said that for accelerating the economic growth, the government should give prominence to develop highways and minor ports for which the state needs massive investments. The government should also ensure the completion of these projects in a time-bound manner.

Describing the government's initiative a timely move, Shaji Varghese, President of Cochin Chamber of Commerce and Industry said that the allocation of ₹25000 crore under KIIFBI shows that the government is committed to improve the State's infrastructure.

Related Topics
comment COMMENT NOW