NRI proposes bond-based funding for Kerala's high-speed rail corridor

K.V. Shamsudheen, a long-standing Non-Resident Keralite, has urged Chief Minister V.D. Satheesan to fast-track the Thiruvananthapuram-Kasaragod high-speed rail corridor project. He proposed a new financing model to fund it through secured, redeemable, tax-free, non-convertible bonds targeted at Non-Resident Keralites. Shamsudheen suggested issuing bonds similar to those used for the Konkan Railway, which he had previously promoted among NRIs in the UAE. His plan aims to channel expatriate savings into productive sectors like infrastructure, industries, and job-creating projects. This aligns with the Chief Minister’s Budget policy to turn remittances into investments rather than non-productive assets like gold and real estate.

He highlighted Kerala’s potential as a land of untapped resources, calling for an investor-friendly environment to attract global Malayalis. Shamsudheen noted that Malayalis remit Rs 2.3-2.5 lakh crore annually, with over Rs 3 lakh crore already held in NRE deposits in Kerala banks. He also proposed exploring bond-based financing for other major infrastructure projects in the state.

The high-speed rail corridor, led by E. Sreedharan, the 'Metro Man', is one of Kerala’s most ambitious infrastructure initiatives. Shamsudheen believes his proposal could transform the state’s economy by redirecting expatriate wealth into long-term development. The proposal seeks to mobilise NRI funds for Kerala’s growth through structured financial instruments. If adopted, it could provide a sustainable funding model for the high-speed rail project and other key developments. The state government has yet to respond to the suggestion.