The SilverLine semi-high-speed rail project is not on the funding list of the foreign funding agency Japan International Cooperation Agency (JICA) since the Centre has not given final approval for the project. In 2018, the project was included in the JICA ODA rolling plan, which includes projects to be implemented with JICA funding, for an amount of ₹33,202 crore. Now, the project has been reportedly excluded from the rolling plan.
However, during a discussion between JICA and the Department of Economic Affairs (DEA) in 2020, JICA had suggested co-financing the project along with other agencies. Accordingly, K-Rail, the joint venture company with Union Railway Ministry and the State government, which executes the project, forwarded new loan proposal documents, also including Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and KfW (German financial cooperation programme). The move had the approval of the Department of Expenditure, NITI Aayog, and Railways.
However, a screening committee meeting held in February 2021 sought an undertaking from the State government regarding debt repayment that the entire debt for the project will be serviced by the project’s special purpose vehicle (SPV).
