Ending long uncertainty over funding for the proposed Sabari railway project, the Cabinet here on Wednesday decided that the state will bear 50% of the cost of the Angamaly-Erumela Sabari railway project and raise its share of ₹1,900 crore through the Kerala Infrastructure Investment Fund Board (KIIFB).
The state had earlier asked the center for a complete waiver of the debt incurred by KIIFB for financing the project beyond the state’s borrowing limits.
Earlier, the state government rejected the Union government’s proposal for a tripartite agreement involving the state, the railway ministry and the Reserve Bank of India to implement the project.
With the state now expressing its willingness to bear its share of the cost through KIIFB without any conditions, the project — first proposed in the 1997-98 railway budget — was finally set in motion after nearly three decades.
The project is expected to bring transformational changes in the overall development of Kerala, especially boosting the economy of the hill regions. The 110-km rail line will provide a safe and comfortable journey to Sabarimala pilgrims and will significantly boost connectivity and economic growth in the eastern hilly areas of Ernakulam, Idukki and Pathanamthitta districts.
Once completed, Angamaly, located on National Highway 66, will be directly connected to towns like Perumbavoor, Muvattupuzha, Thodupuzha and Pala.
In the initial phase, land acquisition for the 8-km stretch was completed and nearly 90% of the construction work on the 7-km Angamaly-Kalady stretch was completed a few years ago.
However, the land acquisition notifications issued for the remaining sections have since lapsed, necessitating a fresh (de novo) acquisition process.
The project remained stalled for more than 25 years due to many obstacles, including land acquisition protests and non-allocation of adequate funds in subsequent railway budgets.
While the project was initially estimated to cost ₹2,815 crore, the revised cost has risen to ₹3,800.9 crore, with the state now having to bear half of the expenditure. A total of 303.58 hectares will need to be acquired for the project.
The land acquisition alone is estimated at ₹ 1,361 crore, while the construction expenditure is pegged at ₹ 2,439.93 crore. The required land will be acquired in Ernakulam, Idukki and Kottayam districts. The revenue authorities have been directed to start the land acquisition process and the government has decided to formally inform the Union Ministry of Railways about its decision.
This is the first time in India that a state government has taken responsibility for financing a railway project. The state had earlier contributed ₹ 5,580 crore through KIIFB for land acquisition for the development of the National Highway in Kerala.
Published – 04 Feb 2026 21:12 IST
