Silverline: Choice of tracks, debt-based finance model raise questions

Standard gauge line for semi high-speed rail project may prevent integration of it into Indian Railways’ broad gauge line in future; state will also have to raise at least 60% of cost via borrowings
Silverline: Choice of tracks, debt-based finance model raise questions

THIRUVANANTHAPURAM: The proposed semi high-speed rail network in Kerala will have standard gauge (SG) tracks, while the Indian Railway network has almost entirely been converted into broad gauge (BG).

This has courted controversy as the first feasibility report prepared by Systra, Paris-based general consultant of Kerala Railway Development Corporation Ltd (KRDCL), had recommended that this decision must be reviewed. Those who argue for the BG line say this will help the KRDCL to integrate the line with the Indian Railways (IR) network when the latter upgrades its network to run trains at higher speeds. The semi high-speed tracks can then be integrated into the existing IR lines, making it possible to run the trains on the entire IR network.

Alok Kumar Verma, a former Indian Railway Service of Engineers (IRSE) officer, who was earlier the consultant of Systra, said if Kerala chooses to build the proposed rail line on SG, then the project would become a white elephant in the future. In a Twitter chat, he said the Indian Railways is on a mission to construct rail lines capable of operating trains at 200-250 km/h and feasibility studies for a number of such lines are under way.” The Kerala government’s decision will result in construction of standalone lines cut off from the existing IR network which will deprive the line of numerous benefits.

Further, the stations are to be located on the outskirts of main cities because of high cost of construction,” he said. Ajith Kumar V, managing director of KRDCL, said world over -- be it high-speed or semi high-speed -- the rail network is built on standard gauge and it is only in India the rail network is built on broad gauge.

“Even the recently announced Chennai-Mysuru High Speed Rail would be built on standard gauge. In future, a separate high speed rail network will come up parallel to the existing rail networks connecting various cities.

Then, our rail network can be linked with similar semi high-speed or high-speed rail networks in future,” he said. Further, the cars (coaches) used for semi- or high-speed rail networks are specially designed for the semi high-speed tracks, through which normal trains cannot be run, he said. He also said there wouldn’t be any change in the SG line plan.The critics of the project have also challenged the cost estimated by KRDCL.

In other parts of the country, high-speed rail lines are built at a cost of around Rs 260 crore per kilometre, while one kilometre of the SilverLine tracks can be built at a cost of Rs 121 crore. The KRDCL has estimated the total project cost at Rs 63,941 crore, while, as per the current market trend, at least Rs 1.3 lakh crore is required to complete the project. At least 60% of this amount will have to be sourced as term loans. As per the latest estimate, Kerala’s public debt is expected to touch Rs 3,27,000 crore in the current fiscal year.

The additional debt liability incurred by the semi high-speed rail will be a huge burden on the state which is already hit by the second wave of the pandemic resulting in a loss of Rs 1.65 lakh crore in GSDP. Technocrat and former planning board member G Vijayaraghavan, who is a proponent of major urban infra projects, is sceptical of the cost estimated for the project. “Instead of the state shouldering the project, it should seek viability gap funding for it. Normally, such projects would be heavily supported by the Centre,” he said. (To be continued...)

Technical features
Rail: Standard Gauge of 1.435m width
Route length: 529.45km
Type of structures
Tunnel: 11.53km (2.17%)
Bridges: 12.99km (2.44%)
Viaducts: 88.41km (16.61%)
Embankments: 292.73km (55.00%)
Cuttings: 101.74 km (19.12%)
Cut & cover: 24.79km (4.66%)
Cars requirement: 261 by 2025 and 492 by 2052
Train set:9 cars extendable to 12-15

Cost estimate
Total cost: Rs 63,941 cr
Cost of land and rehabilitation
and resettlement (R&R):Private land: Rs 6,100.3 cr;
Railway land: Rs 975 cr
Compensation of structures: Rs 4,460 cr
Cost of R&R: Rs 1,730 cr
Total cost of land, rehabilitation and compensation: Rs 13,265.3 cr

Resource mobilisation
Debt: Rs 33,700 cr (52.7%)
Equity (Ministry of Railways): Rs 3,125 cr (4.89%)
Kerala govt: Rs 3,253 cr (5.09%)
Other equities: Rs 4,252 Cr (6.65%)
Kerala govt (land, EIA and R&R): Rs 13,362 cr (20.90%)
Subordinated debt: Centre: Rs 3,189 cr (4.99%);
Kerala govt: Rs 2,896 cr (4.53%)
and balance in IDC (Interest
during construction): Rs 164 cr (0.26%)

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