Kerala seeks Central share for SilverLine project

THIRUVANANTHAPURAM: The state government has taken steps to soften the central government's stand that it will not guarantee or share the debt of Rs 33,700 crore of foreign loans required to implement the Rs 63,941 crore SilverLine. The government had initiated the move to expedite the project by requesting central allocation after the Railways told the high court that it does not need special permission for land acquisition.

If the Centre does not provide support, Kerala's debt burden will worsen. The Centre is a partner in the K-Rail implemented by SilverLine. The SilverLine went ahead with the assurance of the Centre. The state and railway share of the scheme is Rs 10,300 crore and the private sector share is Rs 4352 crore.

In October 2020, the project document was submitted to the Centre. Four months later, the Centre asked to expedite land acquisition and contact the Japan International Cooperation Agency for costs. In May 2021, the Housing and Urban Development Corporation sanctioned Rs 3,000 crore for land acquisition. However, in October 2021, the Centre announced that it is withdrawing its support for foreign funding.

According to the state budget, the debt liability for the current year is Rs 3.27 lakh crore. With the completion of the KIIFB projects, loans of Rs 63,224 crore and Rs 33,700 crore through the SilverLine will increase.

86% support for Silver Line

In a 2017 opinion poll conducted by K-Rail Corporation, 86 percent of the people supported the SilverLine project. According to a 2019 study by French consultancy Sistra, the project will be profitable by connecting Kochi and Thiruvananthapuram airports.

Economic Situation of Kerala

8.76 lakh crore: Total revenue

Loans should not exceed 23% of income

Yet at present the loan is 37.3 per cent

It can exceed 50 percent after new loans

5,000 crore monthly loan for salaries and pensions

For Rs 100

Rs 75.60 for salary

Rs 20.55 to repay the debt

Rs 3.85 for development

'Have requested Central share for SilverLine. Once the project is completed, the economy will be active. Jobs will increase. This will not be a financial liability for Kerala. '

-K.N. Balagopal, Finance Minister

Inflation in Kerala

Year ...... General Debt ...... Domestic Debt .... Total Debt. (Amount in crores)

2017-18 ........ 1,42,985 ............... 67,778 ................ 2,10,763

2018-19 ........ 1,58,234 ................ 77,397 ................ 2,35,631

2019-20 ......... 1,78,222 ............... 84,088 ................ 2,62,310

2020-21 ........... 2,05,140 ............... 91,678 ................. 2,96,818

2021-22 .......... 2,29,560 ................ 98,095 ................ 3, 27,655

Land acquisition hasn't begun: Centre

The land acquisition for the SilverLine project hasn't begun, Union Minister of State for Railways Raosaheb Patil Danve informed K Muraleedharan MP. about the finances of the project. The financial and technical feasibility of the project need to be taken into consideration. No decision has been taken on alignment, construction method, and land acquisition. K-Rail is a joint venture between the railways and the Kerala government. A detailed project report has been prepared after a survey, the minister informed.