Yet another Kerala Government entity is grappling with a severe financial crisis, casting a shadow over the ambitious Kerala Optical Fibre Network (K-FON) project. This visionary endeavor aimed at delivering high-speed internet connectivity now finds itself embroiled in a financial quagmire, with the Kerala State IT Infrastructure Limited (KSITIL), its promoter, failing to settle outstanding bills owed to the Bell Consortium, the contracted executor of this digital initiative.
Despite a government allocation of Rs 100 crore in the budget for K-FON, a distressing reality looms as not a single bill from the Bell Consortium has been settled over the past three months. The repercussions are palpable as the consortium begins withdrawing its officials due to delayed payments.
Compounding this crisis, the government has withheld Rs 24 crore out of the Rs 85 crore sanctioned by the Central Government for the K-FON project, incorporating it into the PM Gati Shakti scheme designed to consolidate infrastructure projects across ministries.
The K-FON project remains mired in stagnation three months after its launch, chiefly due to the government’s financial woes. Even an authorized allocation of Rs 10 crore for the project remains undispersed.
The total expenditure for K-FON stands at Rs 1,168 crore, exclusive of annual maintenance costs. The State Government is obligated to contribute 30% of this expenditure, with the remaining funds secured as loans from the Kerala Infrastructure Investment Fund Board (KIIFB), a debt that K-FON’s promoter is responsible for repaying.
Bills submitted by the Bell Consortium are routed through K-FON to both the KIIFB and the State Government. Disbursement from the KIIFB only occurs upon receipt of the State Government’s share for each invoice.
The Bell Consortium has invested approximately Rs 950 crore into the project, but only Rs 550 crore of the Rs 750 crore in submitted bills have been sanctioned thus far, with only smaller invoices approved this fiscal year.
Allocating Rs 85 crore under the PM Gati Shakti scheme in response to Kerala’s request for Rs 300 crore, the Central Government earmarked a portion of these funds exclusively for K-FON but saw it held back by the State, unspent.
Complicating matters further, K-FON has failed to fulfill work for which funds were already disbursed, notably providing free internet connections to 14,000 Below Poverty Line (BPL) households. Despite a year passing, only 4,000 connections have been established, with K-FON shifting responsibility onto the contracted company.
Post Your Comments