The SilverLine semi-high-speed rail project came under stiff attack in the Assembly on Wednesday with the Opposition United Democratic Front (UDF) members questioning its financial viability, even as Finance Minister K. N. Balagopal staunchly argued that the fears were unfounded.
The topic came up during the Question Hour when the Opposition members said the project entailed unnecessary financial burden. Mr. Balagopal himself had admitted that the State was experiencing financial crunch, they said. The project would worsen the situation and engender a scenario where the State's revenues were earmarked solely for loan repayment in future, they alleged.
''The NITI Aayog had pointed out in 2018 that the project would cost ₹1.33 lakh crore. Revised estimates would set it as high as ₹1.6 lakh crore and by the time the project got completed, the cost would be even higher. The State government had mentioned ₹64,000 crore as the project cost without any clear idea about the alignments, cost estimates, requirement of natural resources, and cost per km,'' Leader of the Opposition V.D. Satheesan said.
Mr. Balagopal did not give a clear reply to Congress leader Ramesh Chennithala's question whether he had affixed his signature to the file pertaining to the State government guarantee for the project. Mr. Balagopal, however, maintained that the project would not plunge the State into debt. The economy was expected to pick up with the fading of the COVID-19 crisis and progress in vaccination. This, coupled with a rigorous policy of fiscal discipline, would guarantee smooth loan management, he said.
Mr. Balagopal said there was no direct liability on the State government as the loan would be mobilised by the project special purpose vehicle Kerala Rail Development Corporation Limited (K-Rail) from international financial institutions with State government guarantee, he said.
The detailed project report (DPR) was now before the Department of Economic Affairs, Mr. Balagopal said. Official discussions with international financial agencies would be taken forward once the DPR was cleared, he said.
Mr. Balagopal contended that the Left Democratic Front (LDF) proposal was more practical than the hi-speed rail project mooted by the previous UDF government. But Mr. Satheesan countered that the UDF had dropped its proposal after finding it impractical, unscientific and harmful to the environment.
