Kerala Government ready to bear entire debt of Silver Line Project

Thiruvananthapuram, India (Metro Rail Today): The Kerala Government informed the Indian Government that they are ready to take over the entire debt related to the Semi- High Speed Rail project also known as  Silver Line project. The state clarified their stand while replying to centre’s directive that they will not stand guarantee for the loan and the state itself should take over the entire liability, sources said.

The union railway minister Aswini Vaishnaw had clarified that the centre cannot take the liability of foreign loans in the meeting held with the chief minister Pinarayi Vijayan.

The centre recommended Kerala to take loan from agencies including Asian Development Bank (ADB) through the finance department, However, the centre objected citing the loan amount and the feasibility of the scheme.

Union Minister had asked the chief minister to bear Rs 33,700 crore that Kerala plans to borrow through foreign agencies. The total cost of the  project from Thiruvananthapuram to Kasaragod is estimated at Rs 63,941 crore. Out of this, the centre’s share is Rs 2,150 crore.

In October, 2021, the Central Government informed the Kerala State Government of its inability to bear the liability of the loans to be availed from international agencies from the implementation of their ambitious semi high speed rail project. Union Minister conveyed the decision of the central Government to Chief Minister who met in New Delhi last month with the request to give the final approval for the Thiruvananthapuram – Kasaragod Semi High Speed Rail Project. The Central Government’s decision to not bear the cost of the ambitious semi high speed rail project is very disappointing as the center is also supporting the Gujrat Government’s Ahmedabad-Rajkot Semi High Speed Rail Project. The railway ministry has major shares in this project.

The proposed 530.6km semi high speed rail corridor will connect Thiruvananthapuram to Kasaragod with 11 stations.

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