TS Govt keeps Railways waiting on joint venture

Cost of long-pending rail line projects has escalated sharply

May 08, 2017 12:21 am | Updated 12:22 am IST - HYDERABAD

TS Government might be lobbying for more railway investments across the State yet progress of several key rail works could be in jeopardy unless it gets going on the proposed joint venture with the South Central Railway (SCR).

There are at least six works which have been suggested to be taken up jointly by both parties for speedier construction where some of them need the Government to pitch in with at least one-third funding or half the project cost funding of the overall estimates along with providing land.

“We have proposed six projects costing ₹4,873 crore for a length of 755 km through the joint venture with the TS Government here. Papers are ready from our side and we are waiting for the Government to give its opinion for approval,” revealed senior railway officials, pleading anonymity.

Changed estimates

Among the works under this pipeline are: Manoharabad-Kothapalli 151.36 km link initially proposed in 2006-07 when the cost was estimated to be ₹671.82 crore and which has now escalated to ₹1,160.48 crore. Thus far, ₹30 crore was allotted by the railways and Government, respectively, last year.

In the case of Manuguru-Ramagundam 200 km line, the Government had in fact agreed to 50% funding besides providing land free of cost. Here too the costs have escalated from ₹1,112 crore in 2013-14 to ₹1,545 crore.

The Government had even allocated ₹485.02 crore for the project

SCCL project

Bhadrachalam Road to Sathupalli 56.25 km line was also proposed to be taken up at a cost of ₹337.5 crore in 2010-11 and the same has now got increased to ₹792.01 crore where the Singareni Collieries Company Ltd (SCCL) is to pick up the entire cost. Here too a mere ₹25 crore was allocated last year.

While there is no progress in Gadwal-Mancherial 184.2 km rail link estimated to cost ₹919.78 crore in 2007-08, situation is no different in two other projects where cost sharing is yet to be worked out like — Bodhan-Bidar 100 km rail link that was estimated to cost ₹1029.14 crore way back in 2010-11 and Secunderabad-Zaheerabad 63.5 km railway line work which was estimated to cost ₹456.39 crore in 2010-11.

AP gets going

In sharp contrast, AP Government has been quick off its feet and signed the JV with the Indian Railways recently to get seven of its projects on track this year estimated to cost ₹16,125 crore for a length of 1,431 km. Cost sharing for these projects has been in in the ratio of 20% to 50% and also providing land free of cost.

Works are: Nadikudi-Srikalahasti 309 km line where cost is ₹2,299.11 now up from ₹1,313 crore in 2011-12 with ₹90 crore each allocated last year, Kakinada-Pithapuram 21.50 km line estimated to cost ₹220.29 crore up from ₹125.68 crore in 2010-11 with ₹25 crore allotted by each party last year, Guntur-Guntakal 443 km line costing ₹3,631.07 crore and Kadapa-Bangalore 255.4 km line to cost ₹2,050 crore up from ₹197.49 crore in 2008-09 - all under 50% cost sharing ratio.

Kotipalli-Narsapur 57.21 km line proposed in 2000-01 at an initial cost of ₹1,045.20 crore in 2000-01 to ₹2,000 crore now is to be taken up under 20% cost sharing. Gudur-Vijayawada 239 km line costing ₹3,246.25 crore up from ₹2,423 crore in 2015-16 has also been proposed though the sharing ratio is yet to be finalised. Same goes with work on Vijayawada-Guntur via Amaravati where survey work is on.

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