High-speed rail with our money

Metro Man E. Sreedharan has submitted a proposal to the Kerala government for a 473-km high-speed rail corridor from Poojappura in Thiruvananthapuram to Mundayad in Kannur. A special committee appointed by the state government is currently examining the proposal, and no final decision has been taken yet. The biggest attraction of the project is that it would reduce travel time between Thiruvananthapuram and Kannur to just 3.5 hours. The trains would have a maximum speed of 200 kmph. Each train would initially have eight coaches with seating capacity for 560 premium-class passengers, and the number of coaches could later be increased to 12. The proposal includes 23 stations along the route. The estimated cost of the project is Rs 60,000 crore. Under the proposal, the central and Kerala governments would share the funding in a 51:49 ratio.

However, this contribution would cover only about 60% of the total project cost. The remaining amount would have to be raised through loans. Countries such as Japan are expected to be willing to provide long-term loans at low interest rates. Kerala Kaumudi had recently reported, in a story titled 'Kerala high-speed rail project: ₹24,000 crore to be raised through public shares and NRI investment' by staff reporter M.H. Vishnu, that the state government is considering an alternative plan to raise Rs 24,000 crore by collecting investments from the people of Kerala through a shareholding model. If the project can be funded from within Kerala rather than depending on foreign countries or international lending institutions, it would be the most desirable approach. Kerala is home to a larger number of expatriate entrepreneurs with the capacity to invest in major infrastructure projects than any other state.

The state has around 25 lakh Non-Resident Keralites (NRKs), nearly 80% of whom live in Gulf countries. In 2025, they reportedly sent home more than Rs 2 lakh crore in remittances-around one and a half times Kerala's annual revenue. A large share of this money remains in banks instead of being invested in productive sectors. If the government invites expatriates and wealthy residents to invest in the high-speed rail project, it could bring significant economic benefits to the state. With sufficient capital already available within Kerala, there may be less need to depend heavily on external funding. The number of people returning from Gulf countries is increasing due to localisation policies in those countries.

Many of those returning are skilled workers with modern training in fields such as electrical work, fabrication and welding. They could also be involved in the construction of the proposed high-speed rail project. This would allow the state to make use of both the financial resources and technical expertise of expatriates. Cochin International Airport, which operates profitably, has around 30,000 shareholders. Similarly, 24% of Kannur International Airport is owned by private investors, including Malayalis from more than 30 countries. This successful crowdfunding model should also be adopted for the proposed high-speed rail project. Implementing the project with public participation would not only help raise the required funds but also reduce public opposition to such a large infrastructure project.