Ending prolonged uncertainty over funding for the proposed Sabari rail project, the Cabinet here on Wednesday decided that the State would bear 50% of the cost of the Angamaly–Erumely Sabari Railway Project and raise its share of ₹1,900 crore through the Kerala Infrastructure Investment Fund Board (KIIFB).
The State had earlier sought full exemption from the Centre for the debt incurred by the KIIFB for financing the project outside the State’s borrowing limits.
Previously, the State government had rejected the Union government’s proposal for a tripartite agreement involving the State, the Ministry of Railways and the Reserve Bank of India to implement the project.
With the State now expressing its willingness to meet its share of the cost through KIIFB without any conditions, the project — first proposed in the 1997-98 Railway Budget — has finally been set in motion after a hiatus of nearly three decades.
The project is expected to bring transformative changes to Kerala’s overall development, particularly boosting the economy of the hilly regions. The 110-km railway line will provide a safe and convenient route for Sabarimala pilgrims and significantly enhance connectivity and economic growth in the eastern highland regions of Ernakulam, Idukki and Pathanamthitta districts.
Once completed, Angamaly, situated on National Highway 66, will be directly connected to towns such as Perumbavoor, Muvattupuzha, Thodupuzha and Pala.
In the initial phase, land acquisition for an 8-km stretch had been completed, and nearly 90% of the construction work on the 7-km Angamaly–Kalady section was completed several years ago.
However, land acquisition notifications issued for the remaining stretches have since lapsed, necessitating a fresh (de novo) acquisition process.
The project has remained stalled for over 25 years due to multiple hurdles, including protests against land acquisition and the failure to allocate adequate funds in successive Railway Budgets.
While the project was originally estimated to cost ₹2,815 crore, the revised cost has risen to ₹3,800.9 crore, with the State now required to bear half of the expenditure. A total of 303.58 hectares will need to be acquired for the project.
Land acquisition alone is estimated to cost ₹1,361 crore, while construction expenditure is pegged at ₹2,439.93 crore. The required land will be acquired across Ernakulam, Idukki and Kottayam districts. Revenue authorities have been directed to initiate the land acquisition process, and the Cabinet has decided to formally inform the Union Ministry of Railways of its decision.
This marks the first instance in India where a State government has taken responsibility for funding a railway project. The State had previously contributed ₹5,580 crore through KIIFB towards land acquisition for National Highway development in Kerala.
Published – February 04, 2026 09:12 pm IST
