PMO seeks report on Multi Model Transport System phase-2

Hyderabad: Prime Minister’s Office (PMO) has directed the state government to send the latest progress report of the Multi Model Transport System (MMTS) phase-II and a note to this effect has been written to the TS Chief Secretary S.P. Singh. PMO said that the Prime Minister Narendra Modi is likely to discuss the MMTS phase-II project on 9th June 2017 through a video conference. The state government has taken on this project with financial assistance from the central government.

MMTS phase-II project was proposed in 2005 with an estimated cost of Rs 324.80 crore. The state government had agreed in principle for a 2/3 cost sharing basis of the project that would cover 107 km. Subsequently the project cost was revised by the railways to Rs 641 crore.  In 2010, SC Railway requested the state government to approve the revised project cost and release Rs 150 crore to commence the work on priority.

Accordingly an amount of Rs 632.68 crore was sanctioned. But on 21st November 2016, Rail Vikas Nigam Limited (RVNL) which was entrusted with the execution of the project put forward another estimate of Rs 816.65 crore. The RVNL stated that there would be some more material modification due to certain changes in the original design plan, thereby escalating the total cost to Rs 999.56 crore.  However this proposal was rejected by the state government.

The commitment of the state government is to bear 2/3 of the cost of the project of Rs 632.68 crore as sanctioned by ministry of railways which is Rs 421.78 crore. But so far the state government has released Rs 82.90 crore. Moreover, in the current financial year the state government has so far provided only a token provision of Rs 1 lakh.