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Two SPVs planned for SilverLine, one for land bank development

While one SPV would be handling the project execution, the second is for land bank development beyond the station areas by acquiring more land.

Published: 30th December 2021 06:43 AM  |   Last Updated: 30th December 2021 06:43 AM   |  A+A-

Kerala Chief Minister Pinarayi Vijayan. (File | EPS)

Kerala Chief Minister Pinarayi Vijayan. (File photo| EPS)

Express News Service

THIRUVANANTHAPURAM: The executive summary of the detailed project report (DPR) prepared for the SilverLine semi high-speed rail project reveals that the state government plans to form two special purpose vehicles (SPV) for the execution of the project under the Kerala Railway Development Corporation (KRDCL). 

While one SPV would be handling the project execution, the second is for land bank development beyond the station areas by acquiring more land. The purpose of the second SPV is to generate maximum non-ticketing revenue by using these acquired extra plots of land.

According to the document, the SPV K-Rail will execute the project and operate and maintain the network on behalf of the state and Central governments totally independent of the Indian Railways. The two separate SPVs are necessary for value capturing and to ring fence the risk.

The SPV to generate surplus fund through land bank development can merged with the project SPV to improve the cash flow of the SilverLine project, said the executive summary. V Ajithkumar, MD of KRDCL, said: “Like Delhi airport or other metro train projects, the company has plans to generate non-ticketing revenue through various means.” 

‘Focus on generating 40% non-ticketing revenue’

K-Rail MD said the corporation has not decided the extent of land to be acquired beyond the stations or along the railway tracks as part of creating the land bank and generating nonticketing revenue. “Our focus is that if 40% of the revenue is collected through non-ticketing avenues, the state can offer subsidised ticket fare to passengers,” he said.

As per the alignment proposed, around 33% of the land required for the project falls in municipal and corporation areas. This offers big scope for KRDCL to generate non-ticketing revenue through land bank creation in urban centres.

This is apart from the total land required for the alignment and for stations together which work out to 1,383 ha, including 185 ha of railway land between Tirur and Kasaragod and between Kochuveli and Murukkumpuzha of Southern Railway and the balance 1,198 ha of private land.

In addition, temporary land will be required for casting depots and movement of materials and machinery vehicles during the construction period. It indicates that the actual extent of land required for the project will be much higher than the 1,383 ha. The state government may soon freeze all developments along the corridor suggested to avoid further construction within 30m from the central line of the proposed alignment.

Land required

As per the proposal, land required for the alignment including viaducts, embankments and cuttings and stations would be 1,383 ha (3,417.47 acres) 

1,383 ha includes 185 ha of railway land between Tirur and Kasaragod and between Kochuveli and Murukkumpuzha and the balance 1,198 ha of private land. In addition, land will have to be taken on a temporary basis for casting depots and for movement of material and machinery vehicles during construction 

67% of land falls under panchayat, 15% in municipal and 18% in corporation areas


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