Kerala govt plans to create two SPVs for SilverLine
ROADS & HIGHWAYS

Kerala govt plans to create two SPVs for SilverLine

The Kerala state government is planning to create two special purpose vehicles (SPV) for executing the Kerala Railway Development Corporation (KRDCL) project, executive summary of the SilverLine semi-high-speed railway project DPR.

One SPV will be responsible for the execution of the project and the other for land bank development past the station areas by further land acquisition. Generating a high non-ticketing revenue with the help of these extra land parcels will be the purpose of the SPV 2.

As per reports, the execution, operation, and maintenance will be done by the SPV K-Rail for the state and Central governments, independent from Indian Railways.

According to the document, the SPV K-Rail will execute the project and operate and maintain the network on behalf of the state and Central governments totally independent of the Indian Railways. For the purpose of value capturing and risk ring-fencing, the two SPVs are mandatory.

The SPV will be used for the generation of surplus funds via land bank development which can be further merged with the SPV project for the SilverLine project cash flow improvement. There is an aim of attaining 40% non-ticketing revenue. After which the state will be able to provide a subsidised ticket fare.

The extent of land acquisition past the stations for land bank creation and non-ticketing revenue has not been finalised by the corporation.

According to the proposed alignment, approximately 33% of land comes under municipal and corporation areas. This will give more scope to the corporation for land bank creation and non-ticketing revenue in the urban areas.

Image Source

The Kerala state government is planning to create two special purpose vehicles (SPV) for executing the Kerala Railway Development Corporation (KRDCL) project, executive summary of the SilverLine semi-high-speed railway project DPR. One SPV will be responsible for the execution of the project and the other for land bank development past the station areas by further land acquisition. Generating a high non-ticketing revenue with the help of these extra land parcels will be the purpose of the SPV 2. As per reports, the execution, operation, and maintenance will be done by the SPV K-Rail for the state and Central governments, independent from Indian Railways. According to the document, the SPV K-Rail will execute the project and operate and maintain the network on behalf of the state and Central governments totally independent of the Indian Railways. For the purpose of value capturing and risk ring-fencing, the two SPVs are mandatory. The SPV will be used for the generation of surplus funds via land bank development which can be further merged with the SPV project for the SilverLine project cash flow improvement. There is an aim of attaining 40% non-ticketing revenue. After which the state will be able to provide a subsidised ticket fare. The extent of land acquisition past the stations for land bank creation and non-ticketing revenue has not been finalised by the corporation. According to the proposed alignment, approximately 33% of land comes under municipal and corporation areas. This will give more scope to the corporation for land bank creation and non-ticketing revenue in the urban areas. Image Source

Next Story
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Real Estate

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?