0/0 eigenvalue problem in income fluctuation problem with stochastic volatility

I am trying a income fluctuation problem with stochastic volatility in income and CRRA preferences. The income process is as:
Y = (1-rhoy)* muy + rhoyY(-1) + voly(-1) ey;
voly= (1-rhovoly)
muvoly + rhovoly
voly(-1)+ svoly*evoly;

When I change the value of risk aversion to higher values like 30 or above, I keep running into 0/0 eigenvalue problem. Model diagnosis shows:
MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations
Colinear variables:
Colinear equations
MODEL_DIAGNOSTICS: The presence of a singularity problem typically indicates that there is one
MODEL_DIAGNOSTICS: redundant equation entered in the model block, while another non-redundant equation
MODEL_DIAGNOSTICS: is missing. The problem often derives from Walras Law.

I looked at the timings of Saving and interest rate. The Euler equation is the only place where the risk aversion parameter enters and equation is very standard. I have tried the model with first order perturbation as well and the same issue persists. Not sure what is going wrong here! Attached is the mod file. Thanks for any insights.cs_sv.mod (944 Bytes)

See Risk aversion and generalized Schur (QZ) decomposition

Thanks for sharing the post, its very helpful!