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Kerala to rely on Shariah-based funds to develop roads

Kerala government is planning to utilise Shariah based funds from Islamic countries to develop its roads in the entire state. The budget for 2011-12 earmarked Rs 40000 crore for the road development project for the next 10 years.

Out of the total amount, Rs 1000 crore is to be generated from the Shariah based funds. This amount is to be raised from the Shariah based Islamic non-banking financial institute, Al Barakh Financial Services Limited.

Kerala Finance Minister Thomas Issac said, “Once the interest-free financing institution, Al Barakh, comes into operation, the state government would permit the SRDB and KRBC to levy a fixed percentage as service charges for their construction work. A share of the profit will be given to Al Barakh.” Finance Minister also said that State Road Fund Board and Kerala Road and the Bridges Development Corporation have been permitted to borrow from the open market

This article appeared in The Milli Gazette print issue of 16-31 March 2011 on page no. 18

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