THIRUVANANTHAPURAM: The state cabinet has decided to bear half the expenses for constructing the Angamaly-Erumeli Sabari rail project, that has an estimated project cost of Rs 2,815 crore.
The funds will be made available through Kerala infrastructure investment fund board (KIIFB). The project was originally announced in the railway budget of 1997-98. The project was envisaged considering the convenience of devotees visiting Sabarimala from various parts of the country and the need for developing south-western part of the state. The project, when announced, had an estimated cost of Rs 517 crore, that has now touched Rs 2,815 crore.
Railways, which originally was not keen on implementing the project, later took a stand that half the estimated cost should be borne by the state government. In this backdrop, the state government decided to bear half the project cost. The state cabinet has also put forward some conditions before the railways for sharing the project cost. The operation and maintenance of the project should be by the railways, and the development of stations on the route should be on public-private partnership model.
The state government had entered into an agreement with ministry of railways for the formation of a joint venture company for development of railway infrastructure in the state in September 2016. The company was formed with an aim to identify projects and possible financing avenues and form special purpose vehicles (SPVs) for each project. The Sabari rail project was one of the priority projects of the company.
The state cabinet on Wednesday also considered the factor that if the project is extended to Punalur in Kollam, the railway line can be extended to Tamil Nadu in future. The total length of Angamaly-Erumeli project is 111km, of which only 7km has been completed.