Though the detailed project report (DPR) of the SilverLine semi-high-speed railway project reveals generation of 5% non-ticketing revenue through other means, the Kerala Rail Development Corporation Ltd (K-Rail), a joint venture company for implementing the project, has plans to generate around 15-20% non-ticketing revenue by acquiring more land beyond station areas.
Speaking to The Hindu, a senior officer close to the K-Rail said after vetting the DPR, the Niti Ayog, the Centre government’s apex think-tank, stressed the need to generate 15-20% of non-ticketing revenue as per international standard to make the project economically viable. In countries such as Japan, the non-ticketing revenue accounts for around 40% of the total revenue.
“In Kerala, we have limitations to raise non-fare revenue beyond a certain limit, but K-Rail is hopeful of raising non-fare revenue by around 15-20% in the initial stage by creating a land bank, acquiring more land beyond the station area. The K-Rail authorities have recently floated a tender for assessing the feasibility of generating non-fare revenue. Though the company was selected, the awarding of the contract was not carried out in view of the current protest. But this is a part of the project and we will carry out the assessment once the social impact assessment is over,” said the source.
In fact, as per the DPR of the SilverLine, around 1,383 ha of land has to be acquired for the project, including 1,198 ha of private land and 185 ha of railway land. However, the actual extent of land required for the project will be much higher than the projected 1,383 ha at the end of the day, as acquiring land beyond stations in 11 districts is not enough for the K-Rail to generate 15-20% non-ticketing revenue in the preliminary analysis.
The K-Rail authorities plan to form two special purpose vehicles (SPV) for the execution of the project. The first SPV would be handling the project execution, while the mandate of the second SPV to generate maximum non-ticket revenue by acquiring more land beyond station areas. The K-Rail is of the view that if 15-20% of the total revenue is collected through non-fare means, the tickets for passengers in the semi-high-speed trains could be offered at subsidised rates.
