Kerala should bear 50 pc of Railway project costs in the state: Gowda

Kerala should bear 50 pc of Railway project costs in the state: Gowda

Railways eyeing private players & foreign funding: Sadananda Gowda - Says new projects like Bullet trains and speed trains will require revenue mobilisation and it cannot be done by Railways alone

Ernakulam (ERS): Union Railway Minister Sadananda Gowda on Thursday said the State Government should bear 50 per cent of the combined costs, including the value of land, if the Railway projects of Kerala are to be implemented.   He said that in states like Karnataka, land was provided by the government to the Railways for free.  “In Kerala, however, we demand that the government bear 50 per cent of the total cost,  including the land value. Unless the State Government is willing to take initiative in this regard, the Railway Ministry will not be able to consider Kerala’s infrastructure needs. The issue has been brought before the notice of the Chief Minister,” he said.   The Minister was speaking to reporters at the Ernakulam Junction railway station on Thursday.

He said that it would not be possible to give exemption to Kerala on sharing the cost of Railway projects, in view of the constraints in the availability of land. He pointed out that even a small state like Jharkhand was willing to offer land for free, and also to bear 60 per cent of the project cost.

“In Karnataka, the government has willingly given free land for Railway projects. In Kerala, we are not asking the government to give away land for free. We only demand that the government should be willing to bear 50 percent of the combined cost of the project, including the value of land.” He further noted that though the State Government had initially promised to extend support to the suburban railway project it backtracked later. The government should provide 100 per cent funding to make it a reality.

“It is learned that the Chief Minister has said that 50 per cent of the cost of the project should be borne by the Railways. However, the request is that Kerala fund the project fully. An Onam special train from Pune will be launched, considering the demand of the public. He said that the four new trains that have been declared for the people of Kerala would be introduced by the end of the year. I have already cleared the files,” he said.

The Minister said that the Ernakulam Junction railway station would be upgraded to one with world class standards, and that at least 10 railway stations will be upgraded. “Private players can set up malls, theatres and five star hotels in the buildings attached to these stations. Only the ground floor will be used by the Railways,” he  added.  The Railways will observe ‘Swachata Abhiyan’ on Oct 2. As per the plan, railway stations and their premises across the country will be cleaned.

Replying to a media question Gowda further said that Railways is eyeing private players and foreign funding to mobilise more funds for its various projects, including bullet trains and speed trains.  ”We want to generate more funds. So I want to take private players inside railways and foreign funding as we are going for new projects like Bullet trains and speed trains. So I thought of going for revenue mobilisation and it cannot be from railways only’, he told reporters.

Railways is also keen to modernise railway stations with the help of private players. They are also prepared to lease out its properties for 30-35 years, but a share should be given to the Railways, he said.

Pointing out that 95% of total revenue generated was being spent for operational costs and maintenance, Gowda said he had refrained from announcing any new projects in his maiden budget this year as there were no sufficient funds. Projects announced earlier should be delivered, he said.

In the last three years, five ministers had announced Rs 5 lakh 60,000 crore projects while the ministry had only about Rs 60,000 crore in hand. Due to this, it had decided to priortise 30 projects, which would be taken care of this year.

Four committees have been constituted, which will go into various issues, including resource mobilisation, IT initiatives and ways to reduce operational costs and submit its report within three months. Railways would go ahead with the recommendations after they are submitted, he said.

Importance would be given to cleanliness, catering,safety and security, the minister said. Already some branded items have been introduced on a trial basis in some trains. For cleanliness,40% more allocation has been made,he said.

With regard to Kerala’s plea for a separate zone, he said “it may not be possible at this juncture. There is a big demand from Kerala. But it does’nt mean that Kerala will be deprived. When the appropriate time comes, it will be looked into”, he said.

Gowda today reviewed the railway issues of the state, in the two divisions- Palakkad and Thiruvananthapuram – to understand the constraints and problems and demands from railways and public.

The minister said he had earlier held detailed and in depth discussions with 20 MPs of the state with regard to the railway issues of the state.