Exclusive | Kerala may rope in private players for semi-high speed rail project

Kerala may look to rope in private players or non-resident Indians (NRIs) to pick up a 40 percent stake in its ambitious 200-kilo meter per hour (kmph) semi-high speed rail project between Kasaragod and Thiruvananthapuram. The Rs 64,000-crore project, a joint venture between the government of Kerala and the Indian Railways, is expected to be complete by the end of 2025.

The project has already got a nod from the department of economic affairs for a $2.5 billion Japan International Cooperation Agency (JICA) loan. It is also in the process of securing $1 billion from the Asian Development Bank (ADB), $500 million from the Asian Infrastructure Investment Bank (AIIB) and $460 million from the German agency KfW.

V Ajith Kumar, Managing Director of Kerala Rail Development Corporation (K-Rail), told Moneycontrol that a detailed project report (DPR) is likely to be cleared by the Ministry of Railways soon. “We expect the project to be complete by the end of 2025. The department of economic affairs has given a go-ahead for the JICA aid,” Kumar said. The cost per kilometre of the project is expected to be Rs 120 crore.

While the state government will hold a 51 percent stake in the project, the remaining 49 percent will be coming under the ministry of railways. Kumar said that K-Rail may rope in private players for around 40 percent of the equity, similar to projects like Cochin International Airport and Kannur International Airport, in which even NRIs are partners.