Thiruvananthapuram: The Government of Kerala has expressed willingness to take up the financial liabilities of the proposed Thiruvananthapuram-Kasaragod semi high-speed rail corridor or the SilverLine Project.
Kerala expressed its readiness in a letter sent to the central government after the latter had refused to back the state's overseas loan bid for Rs 33,700 crore for the planned Rs 64,000-crore, 532-kilometre rail corridor.
The letter was sent by the Principal Secretary (Transport), K R Jyothilal, with the approval of the Finance Department.
For Chief Minister Pinarayi Vijayan the project is a prestigious one and he had stated in the Legislative Assembly earlier that it would be implemented at any cost.
The state government had approached the central government as the latter's permission is a prerequisite for taking loans from foreign agencies. Neck-deep in burgeoning debt, the state doesn't have the capacity to take on its shoulders the huge financial commitments to be borne for the SilverLine Project.
The Kerala government was expecting an assistance of Rs 2,150 crore from the Centre. With the Centre rejecting the state's request for standing guarantee for foreign loan, the question of allotment of Central fund is also uncertain. As a result, the state government has to start from scratch in order to raise resources for implementing the SilverLine Project.
The loan needed for the project is estimated to be Rs 33,700 crore. The Centre took a firm stand against the SilverLine Project on the ground that a small state like Kerala did not have the capacity to withstand such a huge financial liability. Moreover, various political parties and environmental groups came out openly against the project.
Apart from proving that the project will be profitable, the state government's other challenge is to find ways to put an end to the dissenting notes in order to get the central government's nod for the project.
The expected cost for the project is Rs 63,941 crore. But the Centre expects an expenditure of 2.10 lakh crore for the project.
