THIRUVANANTHAPURAM: The Centre has informed the state of its inability to bear the liability of the loans to be availed from international agencies for the ambitious semi high-speed rail project — SilverLine — that would enable travel from Thiruvananthapuram to Kasaragod in four hours.
Union Railway Minister Ashwini Vaishnaw conveyed this to Chief Minister Pinarayi Vijayan who met him in Delhi on Friday with the request to hasten the final approval for the project. While clarifying the Centre’s position, the Union minister urged the state to bring more clarity on how the loan would be repaid. Pinarayi reportedly told the Union minister that the state will examine whether it can bear the liability on its own.
The detailed project report of the Rs 63,941-crore SilverLine project by the Kerala Rail Development Corporation Limited (K-Rail) is currently before the Union railway ministry, finance department and Central cabinet for final approval.
The state government had submitted a proposal to the screening committee of the Union finance ministry seeking a foreign loan of Rs 33,700 crore. The proposal will be forwarded to foreign money-lending institutions like Japan International Cooperation Agency, ADB, Asian Infrastructure Investment Bank and German development bank KfW.
However, NITI Aayog had given nod for the project based on two main conditions. The repayment of loans and cost overrun will be the sole responsibility of the state, it had clarified.