MMTS P2 in trouble, Telangana not to pay more
SCR had revised cost of project upwards after study.
Hyderabad: The future of the second phase of the Multi Model Transport System (MMTS) hangs in the balance with the Telangana state government expressing its inability to provide the increased funding for the project. Phase-2 costs Rs 999 crore, up from the original estimate of Rs 641 crore.
MMTS is a joint project between South Central Railway and the state government. The project is to upgrade existing rail infrastructure and augment the capacity of the suburban transport system in the twin cities.
Phase-1 was completed in 2004 at a cost of Rs 98 crore, with an additional investment of Rs 92 crore for rolling stock (MMTS trains) on cost sharing basis.
The project report for Phase-2 was prepared and sent to the Railway Board. The cost was Rs 641 crore, of which Rs 632.68 crore was sanctioned by the Railway Board.
Rail Vikas Nigam Limited (RVNL) was to make detailed estimates and execute the project. The state government agreed to bear two-thirds of the cost for Phase-2 and agreed to pay Rs 324.80 crore.
RVNL’s detailed estimates increased the project cost to Rs 816.55 crore, or by 29 per cent more. Contracts were finalised and work began. But during the execution, SCR needed Rs 182.99 crore for material modification and synchronising the execution of work. SCR asked the state government to arrange for the additional funds, but the government has refused to do so.
Chief Secretary S.P. Singh will hold a meeting with SCR and state government officials on Wednesday to discuss railway projects, including MMTS phase 2. SCR has sought more money to purchase trains to run on MMTS Phase-2.