<p>The suburban rail project could kick-off with an initial investment of Rs 1,000 crore, but it is yet unclear if the Cabinet will approve it soon.</p>.<p>Union Minister of State for Railways Suresh Angadi was vague about the timeframe as he addressed a press conference after inaugurating the Chunar-Chopan electrified railway line in Uttar Pradesh.</p>.<p>After Finance Minister Nirmala Sitharaman reiterated the Centre’s commitment to the suburban project in last week’s Budget speech, railway board chairman V K Yadav said he expects the Cabinet Committee on Economic Affairs (CCEA) to approve the project soon, paving the way for work to begin this financial year.</p>.<p>Asked if the project would get CCEA’s nod this time, Angadi shot back: “Why’are you doubting us?” </p>.<p>To the explanation that the project was cleared two years ago in 2018-19, but did not take off, the minister said: “During that time Karnataka had a coalition government and nobody pursued the project. Since I became minister, I’m taking it forward.” </p>.<p class="CrossHead Rag">Initial boost</p>.<p>While the project’s total cost is estimated at Rs 18,600 crore, the state and the Centre would fund 20% each in equity. The other 60% will be sourced through loans.</p>.<p>Responding to a question, Karnataka Railway Infrastructure Development (K-RIDE) Limited managing director Amit Garg said<br />Rs 1,000 crore is required to kick-start the work on the ground.</p>.<p>“In the first financial year, we propose to invest 5% of the construction cost and 50% of the land cost. So, an estimated Rs 1,000 crore is required,” he said.</p>.<p>Garg said they are in talks with several international agencies to get the loan. Funding is key since K-RIDE will require 15% of the project cost next year and 20% the year after.</p>.<p>Asked about private investment, he said investors are unlikely to put money in large infrastructure projects oriented towards social welfare.</p>.<p>“Though the rate of return for the suburban project is a healthy 11%, large infra projects like this have several risks, besides delay in land acquisition, construction, funding, technical risks and risks of land acquisition.</p>.<p>“Once the project takes off, they may show interest,” he said.</p>
<p>The suburban rail project could kick-off with an initial investment of Rs 1,000 crore, but it is yet unclear if the Cabinet will approve it soon.</p>.<p>Union Minister of State for Railways Suresh Angadi was vague about the timeframe as he addressed a press conference after inaugurating the Chunar-Chopan electrified railway line in Uttar Pradesh.</p>.<p>After Finance Minister Nirmala Sitharaman reiterated the Centre’s commitment to the suburban project in last week’s Budget speech, railway board chairman V K Yadav said he expects the Cabinet Committee on Economic Affairs (CCEA) to approve the project soon, paving the way for work to begin this financial year.</p>.<p>Asked if the project would get CCEA’s nod this time, Angadi shot back: “Why’are you doubting us?” </p>.<p>To the explanation that the project was cleared two years ago in 2018-19, but did not take off, the minister said: “During that time Karnataka had a coalition government and nobody pursued the project. Since I became minister, I’m taking it forward.” </p>.<p class="CrossHead Rag">Initial boost</p>.<p>While the project’s total cost is estimated at Rs 18,600 crore, the state and the Centre would fund 20% each in equity. The other 60% will be sourced through loans.</p>.<p>Responding to a question, Karnataka Railway Infrastructure Development (K-RIDE) Limited managing director Amit Garg said<br />Rs 1,000 crore is required to kick-start the work on the ground.</p>.<p>“In the first financial year, we propose to invest 5% of the construction cost and 50% of the land cost. So, an estimated Rs 1,000 crore is required,” he said.</p>.<p>Garg said they are in talks with several international agencies to get the loan. Funding is key since K-RIDE will require 15% of the project cost next year and 20% the year after.</p>.<p>Asked about private investment, he said investors are unlikely to put money in large infrastructure projects oriented towards social welfare.</p>.<p>“Though the rate of return for the suburban project is a healthy 11%, large infra projects like this have several risks, besides delay in land acquisition, construction, funding, technical risks and risks of land acquisition.</p>.<p>“Once the project takes off, they may show interest,” he said.</p>