Title - Land row set to derail suburban rail upgrade

MUMBAI: The Mumbai Rail Vikas Corporation (MRVC) has threatened to halt upgradation of the suburban rail network under the Mumbai Urban Transport Project-II next year due to a lack of funds caused by the state revenue minister's slowness in resolving a land dispute. MRVC's managing director Rakesh Saksena spelt out the warning in letters to the urban development department's principal secretary Manu Kumar Srivastava and to MMRDA chief Rahul Asthana on November 12. The threat to the project, officials maintained , stems from revenue minister Balasaheb Thorat's delay in settling a land conflict. The Rs 5,300-crore MUTP-II was sanctioned in 2008 under the arrangement that nearly half the outlay, Rs 2,333 crore, will be generated from commercial exploitation of a Bandra plot admeasuring 45,000 sq m; the land "was owned by Western Railway" . Another Rs 1,056 crore was to be given by the railways and the state government in 50:50 ratio.Any stoppage of work by the rail corporation is likely to hit projects under MUTP-II : Procurement of 72 new rakes Extension of Harbour Line up to Goregaon Augmentation of fifth and sixth lines between Thane and Diva AC-DC conversion of Central Railway Will lead to project delays and push up costs 'MMRDA can provide funds to prop project'The remaining Rs 1,910 crore was to be raised through a loan from the World Bank.

But when the Rail Land Development Authority began the process for commercial exploitation of the Bandra land in September 2008, the railways' ownership was disputed. The Mumbai suburban collector stayed the process and ruled that 20,000 sq m of the land belonged to the state government. The railways disputed the collector's order. The matter went back and forth between the collector and a superior authority , the additional commissioner of Konkan division. The commissioner, officials said, found merit in the railways' stake. Yet, the status quo remained.

"Eventually, on January 19, 2012, the state revenue minister intervened and issued a stay order, reinforcing the status quo," an MRVC official said. "Although the minister has concluded the hearing, he has not found the time to announce his decision."

Without the money earned from the land, another official noted, MUTP-II can be in peril. "The process of commercial exploitation take time," added the official. "Further, we fear that private parties, apprehending legal tangles over the land, may not quote a fair price for it. In that case, we will not be able to generate sufficient funds for the project."

A solution suggested by MRVC is that MMRDA provide it with funds until the proceeds from Bandra land are realized. "This is the only way the project can be salvaged. Otherwise, the rail system is doomed to suffer," said the official.

But not everyone is hopeful. "Thus far in the fiscal year 2012-13 , the railway minister has released more than Rs 300 crore. In contrast, MMRDA has contributed merely Rs 44.5 crore on behalf of the state government. This displays the priority the state gives to the railways."