Express News Service
KOCHI: The Centre has given the inexperienced gentle to Silverline, the state’s Rs 64,000-cr semi high-speed rail challenge. Finance Minister Nirmala Sitharaman has despatched a letter to Chief Minister Pinarayi Vijayan, asking the state authorities to expedite land acquisition after acquiring essential clearances for the challenge.The letter, dated January 5, additionally directed the challenge implementing company (PIA)/state authorities to have interaction with Japan International Cooperative Agency (JICA) to finalise the funding facet.
“In the meanwhile, land acquisition and other clearances may be expedited by the PIA,” mentioned the letter signed by Sitharaman.
The letter insists the state to finish ongoing tasks value Rs 43,200 crore earlier than going forward with Silverline. With Rs 1,10,055 crore set to be allotted for the general improvement of the Railways beneath the National Rail Plan-2030, Kerala Rail Development Corporation Ltd (Okay-Rail) officers hope to begin executing the Silverline challenge at once.
“Silverline is already part of the National Rail Plan-2030. With the funds insisting on implementing the plan in a time-bound method, we really feel the Silverline challenge too will be carried out at once.
The FM’s letter on land acquisition and path to provoke dialogue with JICA are all constructive developments so far as the challenge is worried,” a Okay-Rail official instructed TNIE.“We are looking at a co-financing model. JICA has already evinced interest to provide $4.46 billion (Rs 33,000 crore) as loan.”
Fund: Okay-Rail in contact with worldwide businesses
“We are also in talks with Asian Development Bank, Asian Infrastructure Investment Bank and KfW. We have requested $1 billion from ADB, $500 million from AIIB and $2.5 billion from remaining agencies,” mentioned a Okay-Rail official.“The entire loan amount will be delivered in tranches. All the agencies are awaiting the approval of the Department of Economic Affairs to take a final decision and have demanded at least 80% of required land to be in possession with the implementing agency for funding,” mentioned the official.
The worldwide foreign money fluctuation is more likely to influence the borrowing price of the challenge. “Though we receive the loans at an interest of 0.2 to 1.5%, we will have to consider the dollar fluctuations up to 3-4%. So, the final interest rate will come to around 4-5%. Compared to commercial banks, it’s still a competitive rate,” the official mentioned.
Finance Minister T M Thomas Isaac, whereas presenting the state funds speech in January, had clarified that the state authorities was transferring forward with land acquisition. “The land acquisition activities for the Silverline Semi High-Speed Rail Project will be started in 2021-22 after completing necessary environmental assessment and clearance,” he had mentioned.
The 530.6-km-long hall contains 185 hectares of railway land and 1,198 hectares of personal land.In the Rs 63,941-crore challenge, Rs 11,535cr has been earmarked for compensation. Of this, Rs 6,100 crore will likely be for buying non-public land, Rs 975 crore for taking on railway land and Rs 4,460 crore to pay compensation to buildings that undergo harm. Another Rs 1,730 crore has been put aside for resettlement and rehabilitation.
