KERELA, INDIA (Metro Rail News): The central government has told the Kerala government of its inability to bear the loan to be obtained from international organizations for a high-speed train project – SilverLine – that will be able to travel from Thiruvananthapuram to Kasaragod in four hours.
Union Railway Minister Ashwini Vaishnaw conveyed this to Chief Minister Pinarayi Vijayan, who met in Delhi on Friday with a request to speed up the final approval of the project. While clarifying the position of the Center, the union minister urged the state to provide more clarity on how loans will be repaid. Pinarayi reportedly told the Union Minister that the state would assess whether it could handle the problem independently.
A detailed report of the SilverLine project of Rs 63,941-crore by Kerala Rail Development Corporation Limited (K-Rail) is presented before the Union railway department, finance department and central Cabinet for final approval.
The Pinarayi government has submitted a proposal to a review committee of the Union’s finance department seeking a loan of Rs 33,700 crore. The proposal will be forwarded to institutions like Japan International Cooperation Agency, ADB, Asian Infrastructure Investment Bank and German development bank KfW.
However, NITI Aayog approved the project based on two critical conditions. Loan repayment and overdrafts will be the sole responsibility of the state.