Defining the Future Volume 3 Issue 8.

KIIFB Approved Projects

Infrastructure
Amount Amount
Department Nos. Department Nos.
(Rs. in Cr.) (Rs. in cr.)
PWD 359 15,952.31 Culture 14 357.00
Power 15 5200.00 SC / ST Development 10 183.14
Water Resources 85 5,177.57 Fisheries & Ports 19 387.62
General Education 79 2,078.20 Devaswom 1 141.75
Health & Family Welfare 28 2,302.97 Registration 6 89.88
Information Technology 3 1412.86 Labour & Skills 5 82.50
Our Chairman
Coastal Shipping & Inland Tourism 8 226.67
Shri. Pinarayi Vijayan 1 566.51
Hon. Chief Minister Navigation
Home 1 50.14
Higher Education 38 807.22
Local Self Government 7 96.06
Sports & Youth Affairs 37 762.20
Agriculture 1 21.43
Transport 3 556.49
Revenue 2 32.62
Forest 4 451.68
Total 729 37031.21
Ayush 1 69.05

Total Outlay
Amount
Type of Project Nos.
(Rs. in Cr.)
Infrastructure 729 37,031.21

Our Vice Chairman Major Development Projects (Land Acquisition Pool)

Dr. T M Thomas Isaac i. Industrial Parks (3 nos: Rs. 13,988.63 Cr.)
Hon. Minister for Finance 1 20,000.00
ii. LA for NH-66 (1 no. Rs.5,374 Cr.)
iii. Kochi-Bangalore Industrial corridor (1 no. Rs.1030.80 Cr.)

Total 730 57,031.21

 
 
 


 
Kerala is still bravely battling its way through the covid war field. Understandably, there is a sense of
fatigue that has crept in. Nevertheless, we are holding well so far. But there is still so much uncertainty
about the future. The big question that troubles us is – when do we say that the pandemic has peaked
and that moving on one can expect a certain respite?
Many leading consultancy firms in the world have tried to analyse the covid impact on infrastructure
projects. Broadly we can identify five categories of challenges for companies in general – and that
holds true for infrastructure companies working in Kerala on KIIFB projects as well. The first pertains
to workforce - namely catering to the sustenance and welfare of workforce and their families residing
in pandemic affected areas. Kerala depends heavily on workers from outside the state who are mostly
people from the states north of India or from the north east. Thousands of these workers have returned
to their homes but are now looking for opportune time to return to Kerala. In some instances, in recent
times, workers have come back only to find themselves in the thick of a covid cluster or a containment
zone – where they have to necessarily undergo the prescribed quarantine. The second challenge relates
to the operations of the companies themselves. This manifests in reduced resilience in performance,
infrastructure and services needed. This also involves concerns related to project financing. Will the
projects under development be still viable and bankable given the sudden rupture witnessed in the
economic and social environment? Will the assets under construction or proposed to be taken up
generate enough revenue to cover the costs and risk of the investments given the possible changes in
user behaviour, demand patterns and constraints set on accessibility to the assets? Will Governments,
most of them facing considerable financial projects, revise their spending plans on new infrastructure
construction? The third category relates to challenges in ensuring the supply chain. The supply chain
will have to be revisited and new supply lines will have to be identified considering the nature of the
impact that the lockdown has on their specific set of customers. A location like (say) a quarry to supply
granite may suddenly become unavailable or inaccessible. There might sometimes be severe choking up
of the production from supply sources. The fourth category identified relates to travel. Movement across
rail, air and roads have been considerably impacted. Business and leisure related movements have been
severely impacted. Bringing material to the site from other places in Kerala and many a time from different
parts of the country poses a huge challenge to infrastructure companies. International travel is yet to
resume, and all modes domestic transport are still showing signs of very tardy recovery. While online
meetings and other digital means would provide some answer, these are no substitute to a face to face
meeting – especially given the need to develop trust and personal relations between the infrastructure
company and its clients. The fifth category is the increase in difficulty in compliance with regulations.
For instance, obtaining a construction permit from the concerned local body or a clearance on the Coastal
Regulations from the designated agency or even a simple thing like obtaining a road cutting permit will
be so difficult and a herculean task with most of the staff engaged in pandemic fighting in the districts.
Naturally, KIIFB must work in this environment – there is no escape from that reality. The KIIF Board
has already approved 730 projects of across 22 diverse sectors for a total of Rs. 57,031.21 crore. Prior to
the outbreak of the covid pandemic, it was our expectation in KIIFB that Kerala would be able to have the
happiness of seeing the launch of at least 250 infrastructure projects financed through KIIFB, both big
and small. That looks unlikely now. We are still in the process of estimating the number of projects in the
changed scenario. With luck and some respite from the covid lockdown restrictions, we hope to catch up
on lost time to the extent possible with the concerted efforts, goodwill and hard work of the participating
Government Departments, Special Purpose Vehicles and their contractors.
More in the next edition. Happy reading….
   !!"

2 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE

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Kerala is endowed with a rich heritage of culture. One of the important recommendations of the working group
on Art and Culture set up by the Government is to create a network of public/common space with modern
amenities for cultural activities in urban and rural areas. In line with the recommendation, Government of
Kerala in its budget 2016-17 declared development of cultural renaissance centres at 14 districts with KIIFB
funding. Of the 14 renaissance centres proposed, the following cultural centres with a total outlay of Rs. 219.19
crore were approved by KIIFB:

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1 Subrahmanian Thirumunpu Cultural Complex, Distt. Kasargod 36.20

2 Vakbhatanandan Cultural Complex – Land Acquisition only, Distt. Kannur 3.23

Vaikkom Muhammad Basheer Cultural Complex, Indo Sharjah Cultural Centre –

3 35.00
Land Acquisition only, Distt. Kozhikode

4 V T Bhattathiripad Cultural Complex, Distt. Palakkad 56.48

5 Abdur Rahiman Sahib Cultural Complex, Distt. Malappuram 39.67

6 Lalithambika Antharjanam Cultural Complex, Land Acquisition Distt. Kottayam 4.20

7 Sree Narayana Guru Cultural Complex, Distt. Kollam 44.41

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Among other art forms, Malayalam films also play a significant role in weaving the cultural fabric of the state.
Kerala is the most film literate state in the country. The Malayalam film industry has registered robust growth
in recent years, when the country is witnessing more than 14% annual growth in entertainment industry. This
calls for massive investment in infrastructure in the film industry. In this direction, KIIFB has approved the
following project. Revenue generated from the project will be utilised by the SPV Kerala State Film Development
Corporation (KSFDC) to repay the loan.
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1 Modernisation of Chitranjali Film Studio to a Film City, Distt. Thriuvananthapuram 66.88

2 Development of Film Theater Complex, Payannur Distt. Kannur 11.35
3 Development of Film Theater Complex, Tanur, Distt. Malappuram 13.68
4 Development of Film Theater Complex, Perambra, Distt. Kozhikode 11.35
5 Development of Film Theater Complex, Alagappa Nagar, Distt. Thrissur 9.40
6 Development of Film Theater Complex, Kayamkulam, Distt. Alappuzha 15.03
+
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KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 3
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Salient features of some of the culture sector projects are detailed below:
A. V T Bhattathiripad Cultural Complex at Palaghat
The project site is in a land measuring 5.76 acres at Yakkara village area in Palakkad municipality. The site is at
8 km from Palakkad town and 5 km from town railway station. The cultural centre would serve the community
as a venue for cultural events with focus on recreation, training and education. It is envisioned as a facility for
use during daytime and evening hours with a variety of activities and experiences offered to a diverse group of
users.
The key components proposed in the centre are i) Performance block, ii) Exhibition block, and iii) Open Air
theatre. The performance block has an area of 5550.27 sqm. The ground floor having an area of 3740.61 sqm
includes workshop, black box theatre, auditorium, Rehearsal hall, mixing lab, toilet etc. The first floor having
an area of 1809.66 sqm includes three class rooms, seminar hall, AV theatre, projector room, toilet etc. The
capacity of black box theatre is 100, AV theatre is 200, Seminar hall is 70 and classroom (4 Nos) is 30 each.
The exhibition block has an area of 5056.92 sqm. The lower ground floor having an area of 510.7 sqm consist
of toilet and lobby and corridor. The ground floor having an area of 2651.75 sqm includes Corridor, Front
office, Memorial hall, Exhibition, Cafe seating, Kitchen, Utility, Store, Art gallery, toilet etc. The first floor having
an area of 1499.68 sqm includes administration, exhibition, temporary exhibition, toilet, art gallery, folklore
Centre etc. The second floor having an area of 394.79 sqm consist of a library. The centre will be provided with
ramps for differently abled persons. Scheme for Sewage Treatment and Rainwater Harvesting forms part of the
cultural complex.
B. Subrahmanian Thirumunpu Cultural Complex at Kasaragod
The project site is in a land measuring 3.77 acres at Ambalathara village near Kanhangad town. The site is at 3
km from NH-66 and 5.5 km from Kanhangad railway station. The cultural centre would serve the community
as a venue for cultural events with focus on recreation, training and education.
The key components proposed in the centre are i) Admin block, ii) Auditorium block, iii) Cafeteria block, iv)
Exhibition block and iv) Open Air theatre. The proposed admin block has an area of 1542.75 sqm. The ground
floor has an area of 705.35 sqm including entrance porch, memorial hall, souvenir shop, toilet etc. The first floor
has an area of 384.4 sqm including maintenance staff area, electrical room etc. The second floor having an area
of 453 sqm, includes conference room, administration, cabin, reception etc. Auditorium block proposed has an
area of 982.8 sqm and has a seating capacity of 294.
A total area of 1341.9 sqm is proposed for the cafeteria block. The ground floor is having an area of 747.2 sqm
consist of kitchen service, toilets and cafeteria. The first floor is having an area of 594.7 sqm consist of folklore
centre, congregation area. The exhibition block proposed is having an area of 2873.13 sqm. The ground floor
has an area of 1621 sqm includes three workshop space, exhibition space etc. The first floor is having an area of
1252.13 sqm consist of 3 classrooms, a black box theatre, library, seminar hall, theatre etc. The capacity of class
1 is 30, class 2 is 28, class 3 is 30 and seminar hall is 108.
The proposed open-air theatre block is having an area of 1480.3 sqm. The ground floor has an area of 102 sqm
includes a store, shop, green room, toilets etc. The upper floor has an area of 1378.3 sqm including stage and
seating. The centre will be provided with ramps for differently abled persons. Scheme for Sewage Treatment
and Rainwater Harvesting forms part of the cultural complex.
C. Sree Narayana Guru Cultural Complex at Kollam
The project site is in a land measuring 3.82 acres near to Ashramam ground, Kollam. The site is at 0.5 km
from Kollam Bus Stand and 1.1 km from Kollam railway station. The cultural centre can provide domestic and
international tourists an experience of the art and culture of Kollam. The demand for proposed facilities in
the cultural complex can be corelated with the other ongoing cultural activities in Kollam district and tourist
footfalls in the district.
4 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE
The key components proposed in the centre are i) Entrance and cafeteria block (3602.14 Sq.M) ii) Exhibition
block (2159.46 Sq.M) iii) Performance block (3643.81Sq.M) and iv) Open Air theatre (Capacity 975 Nos.). The
entrance and cafeteria block include a rehearsal hall, green room& toilet, toilet block, entrance porch, lobby
& corridor, administration, memorial hall, staircase & lift lobby, cafeteria, kitchen, retail shops, craft museum,
art gallery. The exhibition block includes reception, staircase & lift lobby, exhibition space, toilet block, MV
panel room, temporary exhibition, Black box theatre, sound control room, classrooms. The performance block
(G+1) includes entrance porch, staircase, waiting & lift lobby, toilet block, ticket counter, corridor, auditorium,
greenroom & toilet, AV theatre, AV projection room, warehouse, VIP Box/ PH challenged room, OAT projection
room, sound control room, viewing gallery, rehearsal hall, performance studio, mixing studio, seminar hall, ante
space.
Current Status
Construction work of all the three above cultural complexes were awarded to contracting agencies and
construction were commenced at site. Recently on 23rd July 2020, Honourable Minister for Cultural Affair, Shri
A K Balan inaugurated through video conference, the construction of Subrahmaniyan Thirumunpu Cultural
Centre, Kasaragod. Shri E Chandrasekharan Honourable Minister for Revenue presided the function.


      


       

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 5

 
       


      

6 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE

 The damage to a structure depends not only on
)
 its position relative to the fault outcrop in the free
field, but also on whether and by how much such a
1#
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 diversion may occur. Also the presence of a structure
23#"24 on top of the soil deposit may further modify the
path of the rupture, as the latter propagates from
the base rock to the ground surface. Depending on
During past earthquakes, surface rupture has caused the rigidity of the foundation and the transmitted
devastation of numerous structures like buildings, weight of the superstructure, even complete diversion
bridges, pipelines etc. Generally, the damages of the fault path may take place. Thus in case of new
induced by surface rupture are considered due to structures a rigid and continuous foundation system
discontinuous deformations of
overlying soil resulting in vertical
or lateral offset at the ground
surface. Ground differential
movements due to faulting have
caused damage to engineered
structures and facilities in strong
Earthquakes. Fault setbacks or
avoidance of construction in the
proximity of seismically active
faults, are usually supposed as
the first priority. Also most of
the seismic design codes prevent
construction across, or in the
immediate vicinity of seismically
active faults. Determination of fault setback is very
difficult and only in a few regions, a trustful mapping or using geogrid can easily be applied as safeguard or
of seismically active faults can be found. In addition prevention, but it is not that simple for the retrofitting
to the uncertainty related to the mapping of active of existing structures. Especially for historic buildings
faults, in many cases there exist secondary faults and monuments, these methods may be practically
with the associated ruptures located at relatively large impossible. To protect a structure, a thick diaphragm-
distances from the main trace of the faults. Therefore, type soil bentonite wall (SBW) is installed in front
in cases where there is a significant degree of of and near the foundation, at sufficient depth to
uncertainty in the fault mapping, and the risk induced intercept the propagating fault rupture.
by secondary ruptures cannot be avoided. Also it is The rupture deviation can be made possible using
difficult to infer reliably, which of the numerous a weak vertical element in soil to localize fault
geologic faults encountered in engineering practice displacement in a pre-determined narrow zone.
is potentially active. Especially for long structures, The free-field surface fault displacement and the
such as bridges and tunnels, which often cannot avoid corresponding shear band propagate in alluvium
crossing of faults. E.g. in the Wenchuan earthquake depending on the type, dip, and displacement of
in China, three parallel seismic faults emerged on fault. By constructing a wall with lower shear strength
the ground surface for a total length of 280 Km, one compared to the alluvium, the rupture is localized in
of the longest in record with up to 6 m of permanent the weak zone. In other words, downstream of the
vertical ground displacement. So even when the fault wall is protected. Soil bentonite wall can be a proper
and its seismic activity are well defined, the prediction candidate in this regard.
of the exact location of fault outcropping is not at all
straightforward Although surface fault rupture is not a Soil-bentonite wall is constructed by backfilling a
new problem, there are only a few potential mitigation trench with a mixture of soil, bentonite, and water.
schemes in the world for reducing the risks. Trench is stabilized while being filled with slurry.
KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 7
 
 !   "#  $ 

The other end of the trench is backfilled with soil-

bentonite while the excavation proceeds along one
end of the trench. From various physical model tests
& finite element model tests conducted, it is seen
that the weak bentonite wall deviates the fault line,
keeping the downstream side of the wall safe. The
rupture which is meant to be formed is deviated to the
weak bentonite wall keeping whatever structures on
the downstream safe.
The magnitude of fault offset is another important
parameter in fault rupture problems. With bigger
deformation occurring, a secondary rupture often
happens downstream to the bentonite wall. Thus a
wider wall or may be two walls is required to tackle
the situation. This could be helpful when fault occurs
due to after quakes as well. As precise determination
of fault break is difficult in many situations, analyses
are repeated for a range of postulated possible fault
break positions and thus a suitable wall depth can
subsequently be determined according to different
possible fault position. Wall’s material property is
selected on the basis of surrounding alluvium to
deviate the faulting path inward the wall appropriately.
FEM (finite element model) software like Abaqus
& Plaxis
Way can be employed to determine the fault
Forward:
behaviour and determine fault break position.
The concept of green buildings though
Waypopular
Forward among professionals, has not yet
Withreached
modernthe construction
common man methods andThis
properly. advanced
is
analysis new buildings can be planned
because there are several misconceptions to prevent
fault regarding
rupture inthe case of a seismic
viability of greenevent by using
buildings
geosynthetics etc. But for many historical
which needs to be clarified. The main idea monuments
and other
behind oldthis
buildings, providing
article is to makegeosynthetics
the green is
practically difficult. Therefore, in cases where there is a
concept assessable to the common man
significant degree of uncertainty in the fault mapping,
so that they can appreciate its importance.
and the risk induced by secondary ruptures cannot be
avoided, soil bentonite walls are a suitable solution.

8 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE



562
In this edition of economy and market watch, we look at the primary market activity for Corporate bonds in
India with CRISIL rating in the range (AA, AAA) using data compiled from Bloomberg. We also look at the yield
spreads between AAA, AA and BBB corporate bonds in India currently.
Of the outstanding corporate bonds currently, the following is a compilation of data from Bloomberg for bonds
issued since 2018 with a tenor of 10+ years, with a CRISIL rating of the issuer in the range (AA,AAA) and with
the amount issued greater than 100 Cr.

For all the current outstanding corporate bonds of 10+ year tenor, we also looked at the current yields for AA
and AAA bonds against years to maturity.

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 9

In the above chart, the blue dots indicate outstanding AAA corporate bonds with 10+ year tenors and the
green dots indicate AA corporate bonds with 10+ year tenors. As seen from the chart, there have been fewer
issuances for AA corporate bonds and the yield spreads have been more or less consistent between AA and
AAA corporate bonds across years to maturity.
We also compared the yields of BBB, AA and AAA rated corporate bonds for 1-year and 5-year maturities. As
noticed from the below charts, yields have been falling consistently since March 2020 for the corporate bonds
till July. Since July, we notice a strengthening of the yields for corporate bonds of higher maturities.

10 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE

55 
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895,:,:

In July, RBI published the Financial Stability Report. Here we summarize the key takeaways from the report
regarding risks and resilience in the financial system.

1. Macro Financial Risks: There is an unprecedented uncertainty about global growth, though in India the
financial markets have broadly stabilized in response to unprecedented fiscal and monetary stimulus.
Subdued bank credit shows clear signs of risk aversion. Adequate levels of foreign exchange reserves
provide a buffer. The pandemic has the potential to amplify financial vulnerabilities, including corporate
and household debt burdens in the case of severe economic contraction.

2. Financial Institutions - Soundness and Resilience: Bank credit growth moderated across constituent bank
groups during the second half of 2019-20. The profitability ratios of Scheduled Commercial Banks (SCBs)
have declined in the second half of FY 2019-20 and the outlook is weighed down by the moratorium’s
implications for loan classification.

• Macro-stress tests for credit risk indicate that under the baseline scenario, SCBs’ gross nonperforming
assets (GNPA) ratio may increase from 8.5 per cent in March 2020 to 12.5 per cent (14.7 per cent in
a very severe stress scenario) by March 2021. Further, in the case of public sector banks, the GNPA
ratio of 11.3 per cent as of March 2020 might increase to 15.2 per cent by March 2021 in the baseline
scenario. Besides, in the case of private sector banks and foreign banks, the GNPA ratio may surge
from 4.2 per cent and 2.3 per cent in March 2020 to 7.3 per cent and 3.9 per cent, respectively in
March 2021.
• The system-level1 capital to risk-weighted assets ratio (CRAR) may fall from 14.6 per cent in March
2020 to 13.3 per cent (11.8 per cent in a very severe stress scenario) by March 2021. Stress test results
indicate that, five banks may fail to meet the minimum capital level by March 2021 in a very severe
stress scenario.
• The common equity Tier I (CET 1) capital ratio of SCBs may decline from 11.7 per cent in March 2020
to 10.7 per cent under the baseline scenario and to 9.4 per cent under the very severe stress scenario
in March 2021. Under these conditions, three banks may fail to meet the minimum regulatory CET
1 capital ratio of 5.5 per cent by March 2021
• For NBFC sector, system wide stress tests (increase in GNPA by 1 SD,2SD and 3SD)indicate that
the sector’s CRAR would decline from 19.4 per cent to 17.2 per cent in the first scenario, to 16.4 per
cent in the second scenario and to 15.2 per cent in the third scenario. under the above-mentioned
three scenarios, 11.2 per cent, 14.0 per cent and 19.5 per cent of the companies would not be able to
comply with the minimum regulatory capital requirements of 15 per cent.
• The impact of the moratorium on private NBFCs/HFCs can be substantial, with proportion of assets
under the moratorium for NBFCs averaged between 39-65 per cent based on underlying assets with
approximately 50 per cent of the aggregate assets under moratorium as on end April 2020.

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD - DEFINING THE FUTURE 11

%
 
 (!)
21
During the last quarter, the Administrative Inspection Wing (AIW) has received contract documents of 53 sub
projects/packages from 14 SPVs under the Sectors Public Works, Health, Education, Water Resource, Sports,
Power, Forest, SC/ST, Registration, Fisheries and Agriculture etc for scrutiny and out of which approval/
confirmation for 31 sub projects were given on rectification of the deficiencies pointed out by AIW. Out of
the remaining sub projects 17 are returned to SPVs for re-submission after rectification and 5 are under the
scrutiny of AIW. The cumulative total of the contract documents received as on 2.08.2020 is 214 and out of
which approval/ confirmation granted for 137. Out of the total documents received, major chunk ie. 61 % from
General Education Department for the School Projects implementing by KITE INFRA.
The routine inspections in the office of SPVs could not be conducted during the last fortnight due to the closure
of offices and travel restrictions as part of the strict imposition of Covid-lock down.

&*(;(#! 5#

<-=>95?@?@

Total number of customers 59917

Total number of subscribers 13977

Total amount collected INR 256.64 Cr

pravasi.ksfe.com
pravasi@ksfe.com KIIFB Deposit bond subscribed INR 155.8 Cr

KIIFB Security bond subscribed INR 28.598 Cr

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Total number of registrations 9008

Total no. of depositors 906

pravasikerala.org

Total amount deposited INR 100.57 Cr

12 KERALA
PrintedINFRASTRUCTURE INVESTMENT
and Published on 01/08/2020, byFUND BOARD
the Chief - DEFINING
Executive THEKIIFB,
Officer for FUTUREFelicity Square, 2nd Floor, Opp. AG’s Office,
M G Road, Thiruvananthapuram 695 001 Tel: +91 471 278 0900 financeadmin@kiifb.org, www.kiifb.org