THIRUVANANTHAPURAM: The touted Sabari project was slowly on its way to becoming a reality but now, it seems like things have gone awry. The project said to benefit four districts of central Kerala and Vizhinjam port is back again in a quagmire.
A meeting chaired by the Chief Minister on Tuesday decided to reject the tripartite agreement proposed by the Centre. The agreement demands Kerala and the Central government sign an agreement with the Reserve Bank to bear half of the project cost. Kerala is ready to spend the money from KIIFB but demands the amount to be exempted from the borrowing limit of the state. Tuesday’s meeting reached a consensus to send a letter to the central government elucidating the same demand.
The Center has demanded that the agreement be signed without any conditions. The tripartite agreement empowers the Reserve Bank to pay the railways by charging the project funds allocated to the state by the central government, only if Kerala fails to pay their share in the project.
Out of the project cost of 3800.94 crores, Kerala has to pay 1900.47 crores. The money shall be paid in instalments over five years. However, Railways is steadfast not to start the project unless reaching an agreement with the state. Railways handed over the contract model to Kerala on the 13th of last month.
Minister in charge of Railways in the state V. Abdurahiman, Chief Secretary Sarada Muraleedharan, Collectors of the districts through which the line passes NSK Umesh, V. Vigneswari, John V. Samuel and others participated in Tuesday’s meeting.
If turned into a reality, the Sabari rail path can be the conduit for goods movement connecting Vizhinjam. Container movement to the north will be facilitated. Both sides of the railway line could establish logistics hubs and economic-commercial-agri-business zones. The port-centric blue economy will extend to central Kerala.
Events down the line:
Places going to benefit from Sabari project: