K-rail gets approval to generate ₹33,700-cr from global financers

The National Institution for Transforming India (NITI Aayog), Department of Expenditure under the Union Finance Ministry, and the Ministry of Railways have approved Kerala Rail Development Corporation Ltd. (K-rail) for mobilizing funds from multilateral and bilateral agencies for the 529.45-km semi-high speed rail SilverLine from Kochuveli to Kasaragod. With this, K-rail, the joint venture between the State and Railways for cost-sharing rail projects, can pose the loan request for availing itself of ₹33,700 crore as per guidelines of Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), German Development Bank (KfW) and Japan International Cooperation Agency (JICA). All funding agencies, except KfW, had informally confirmed their willingness to provide loan for the SilverLine and the ADB has offered to make available loan in two tranches of US $ 4,500 million and US $ 499.50 million (₹7,533 crore), AIIB US $ 500 million and JICA US $ 2.5 billion (₹18,892 crore). KfW is expected to make available a loan of US $ 460 million (₹3,476 crore) for the ambitious project estimated to cost ₹63,941 crore as per current estimates. K-rail is hoping that it can secure US $ 4.46 billion (₹33,700 crore) from these four lending agencies for the project. HUDCO loan Housing and Urban Development Corporation (HUDCO) has sanctioned a loan of ₹3,000 crore. The Railway Board said that the project is under its appraisal and that any loan agreement with JICA, ADB, AIIB and KfW should be entered into by K-rail only after approval by the Centre.