Govt Moots SPV for Rail Line Project

KALPETTA: The State government would explore the possibility of forming a project-specific Special Purpose Vehicle (SPV) to implement the proposed Nilambur-Sulthan Bathery-Nanjangud rail line project by bringing in private sector and foreign partners with requisite expertise, Minister for Industries and Information Technology P K Kunhalikutty has said.

The minister, who held a meeting with the office-bearers of the Nilgiris-Wayanad National Highway and Railway Action Committee (NWNHRAC) here the other day, further stated that he would take the initiative of convening a meeting of people’s representatives from the region to discuss the proposal with the chief minister.

The government would also consider the possibility of entrusting the task of conducting a feasibility study on the project to the Kerala State industrial Development Corporation (KSIDC), the minister said.

Though the state governments of Kerala, Karnataka and Tamil Nadu were directed to pool 50 per cent of the total project cost, only Kerala responded to the call positively. In such a scenario, the NWNHRAC has put forth the proposal to form a company to raise capital for execution of the project, action committee convener Adv T M Rasheed said, adding that the NWHRAC had handed over the minister a detailed project report on the proposed `642 crore railway line. The committee observed that the proposed rail line project would act as a catalyst for the overall development of the region and it would also function as a connecting link among the major IT cities of Kochi, Hyderabad and Bangalore. The new rail line would also help increase supply of essential goods and commodities from neighbouring states, thus resulting in lower prices for consumers, they added.

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