Thiruvananthapuram: In a way admitting to deficiencies in the detailed project report (DPR) of the SilverLine semi-high speed railway project in Kerala, the implementing agency K-Rail has decided to entrust a new international consulting agency with the task of suggesting measures for earning non-ticket revenue.
K-Rail authorities said that SYSTRA, the agency which prepared the DPR, dealt with transportation sector and was no expert in financial matters. Incidentally, NITI Aayog had earlier pointed out that while similar transportation projects abroad earned 40 per cent of their revenue from non-ticket sources, the figure was a mere 5 per cent of SilverLine.
Non-ticket income
As per the present DPR of SYSTRA, non-ticket revenue include real estate business around the SilverLine railway stations with the cooperation of private parties, additional tax on people residing near the stations, advertisements on the station premises and nearby spots, rent from operating tourist trains, catering licence fees, rent from kiosks, rent from commercial complexes built near stations and parking fees. However, the DPR is vague on how these suggestions could be implemented and the revenue expected from each of them.
Income, expenses
According to SYSTRA’s report, the financial success of the SilverLine project depends entirely on the number of passengers. The DPR estimates the daily number of passengers during 2025-26 as 79,934 and the annual revenue as Rs 2,276 crore. A six-per cent annual increase in passengers could be expected, says the DPR.
The SilverLine project would have to find sufficient sources of income to repay a foreign debt estimated at Rs 33,700 crore along with meeting operational costs. During the first 10 years, maintenance expenses alone would be Rs 542 crore every year, which would subsequently increase to Rs 694 crore. Annual salary payments will be Rs 271 crore during the first year and an annual hike of 8 per cent is suggested. In addition, money has to be found to purchase the trains and meet other operational costs.
Levy, tax on local people
The present DPR has suggested a ‘value capture finance system’ as the main non-ticket revenue. Under this system, a levy and tax will be imposed on the owners of land and property near the stations. Moreover, they will be charged a one-time tax which would be proportional to the rise in land value considering the implementation of the project. Similarly, un-utilised land would also be taxed. A special fee too is recommended on all development work at a specific distance from the project area.
Kochi airport station plan dropped
In another major development related to the SilverLine project, the authorities have decided to withdraw the plan for a station adjacent to the Kochi airport at Nedumbassery. The new decision is based on objections from the Cochin International Airport Limited (CIAL) which pointed out that the proposed SilverLine station was located on the flight path of the runway.
As a result, the number of SilverLine stations is now 10 and the lone station in Ernakulam district would be at Kakkanad. Authorities would have to arrange feeder services between Kakkanad and the airport to attract air passengers, said experts.
