Centre conveys to Kerala its incapacity to bear SilverLine mortgage burden
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By Express News Service
THIRUVANANTHAPURAM: The Centre has knowledgeable the state of its incapacity to bear the legal responsibility of the loans to be availed from worldwide companies for the formidable semi high-speed rail undertaking — SilverLine — that will allow journey from Thiruvananthapuram to Kasaragod in 4 hours.
Union Railway Minister Ashwini Vaishnaw conveyed this to Chief Minister Pinarayi Vijayan who met him in Delhi on Friday with the request to hasten the ultimate approval for the undertaking. While clarifying the Centre’s place, the Union minister urged the state to carry extra readability on how the mortgage can be repaid. Pinarayi reportedly informed the Union minister that the state will study whether or not it could bear the legal responsibility by itself.
The detailed undertaking report of the Rs 63,941-crore SilverLine undertaking by the Kerala Rail Development Corporation Limited (Ok-Rail) is at present earlier than the Union railway ministry, finance division and Central cabinet for remaining approval.
The state authorities had submitted a proposal to the screening committee of the Union finance ministry looking for a overseas mortgage of Rs 33,700 crore. The proposal can be forwarded to overseas money-lending establishments like Japan International Cooperation Agency, ADB, Asian Infrastructure Investment Bank and German growth financial institution KfW.
However, NITI Aayog had given nod for the undertaking based mostly on two important circumstances. The reimbursement of loans and value overrun would be the sole accountability of the state, it had clarified.
