KV Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, has submitted a formal appeal to the Honorable Chief Minister of Kerala, Shri Pinarayi Vijayan, urging the state government to consider mobilising funds for the proposed high-speed rail corridor through diaspora and public bonds, drawing inspiration from the Konkan Railway funding model.
The appeal follows recent reports that the Kerala government has decided to construct a 583-kilometre high-speed railway line from Thiruvananthapuram to Kasaragod. While welcoming and congratulating the government on the landmark decision, Shamsudheen expressed concern over the plan to rely heavily on foreign borrowings for financing the project.
Referring to the Konkan Railway project, executed under the leadership of E. Sreedharan through the Konkan Railway Corporation, the appeal highlighted how a significant portion of the project’s funding was raised through railway bonds, with active participation from Non-Resident Indians (NRIs). At the time, both the Central and State governments contributed 20 percent each, while the remaining funds were mobilised through bonds and external loans.
The representation cautioned that excessive dependence on foreign debt carries risks, particularly in the context of a weakening Indian rupee, citing past instances where several Indian states faced difficulties in servicing external loans.
Shamsudheen also recalled the Chief Minister’s statement during his Dubai visit that Malayali expatriates remit nearly ₹2 lakh crore to Kerala annually, noting that no structured mechanism has yet been developed to channel these funds into productive development projects.
On behalf of the Pravasi Bandhu Welfare Trust, Shamsudheen proposed that at least 30 percent of the capital required for the Kerala high-speed rail project be raised through bonds offered to expatriate Malayalis and residents of the state. He added that successful implementation of this model could enable Kerala to finance future large-scale infrastructure projects through public participation.
