The Pinarayi Vijayan-led Left Front government in Kerala is tapping the cash-rich expats from the state to mop up Rs 10,000 crore to finance major infrastructure projects by launching an NRK bond called 'Pravasi Chitti' (chits for the expats).
The chits will be launched by the Kerala State Financial Services Enterprises (KSFE), a wholly-owned non-banking company of the government and interested non-resident Keralites (NRKs) spread across the globe can invest in it, which will have a government guarantee.
The government targets to get the chits subscribed by at least one lakh NRKs in the first year who can join the chit by giving a monthly remittance.
Chief Minister Pinarayi Vijayan will formally launch chit by the end of the month.
"We are adopting a two-pronged strategy to empower the returnees through financial support for their ventures in the state and also to raise funds from NRKs to develop key infrastructure in the state.
"The main target is to fund two highways--the 1,267 km-long Hill Highway and the 630-km-long Coastal Highway. We are planning to raise Rs 10,000 crore through the NRK chits," Vijayan told
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