Title - Mamata’s walkout puts railway projects off track

NEW DELHI: West Bengal chief minister and Trinamool Congress chief Mamata Banejee may have scored a political point by walking out of the UPA coalition but experts say her action has put in jeopardy several projects planned by the railways and could also have serious implications on efforts to restore the health of the state's finances.The feisty Bengal leader had used her position as a key ally of the government to get several projects to be executed by the railways in her state. Her 19 MPs were also a bargaining tool for getting some help from the Centre to tide over hard times.While the Centre had rejected her demand for a moratorium on loan repayment saying it was unable to help as the state government had borrowed the funds from the public. Despite several rounds of negotiations, Banerjee failed to arrive on any compromise on a package from the Centre.West Bengal's interest payment on loans is estimated at around Rs 25,000 crore annually and Banerjee had demanded that the Centre impose a moratorium on this for at least three years.Finance ministry officials had said that the centre was willing to assist the state by providing cash through several programmes rather than a moratorium on loan repayment which is difficult to implement against the backdrop of stringent fiscal consolidation measures. While some funds were provided to bring relief to the state, the Centre would have gone ahead and provided the cash package. It would have worked out to over Rs 20,000 staggered over a few years.

Experts say the Centre is unlikely play the villain's role and block all financial relief for the state after Trinamool Congress's separation from the Centre but the pace was likely to slow down.

"Now it is going to be much more difficult for the state government to really get help in strengthening the financial health of Bengal," said N R Bhanumurthy, a professor at the National Institute of Public Finance and Policy.

The biggest casualty of her action would be the numerous projects that were expected to be implemented by the railways to jumpstart investments and boost employment in the state. Lack of jobs could stoke anger against Banerjee's administration which the fiery TMC chief would like to avoid as she plots her next big move.

"Going by the past experience and given the strained relationship between the UPA and the TMC, the change in the railway ministry would hamper the projects that have already been announced," Bhanumurthy said.

Several projects announced by Banerjee in her 2011-12 railways budget could face delays. Among the major ones are the move to up grade and expand the Kolkata Metro railway network, set up the Kolkata Rail Vikas Corporation on the lines of the Mumbai Rail Vikas Corporation aimed at transforming the suburban railway network in the state and introduce 15-car trains to cater to heavy passenger load.

Coach and railway equipment units at Kanchrapara, Dankuni, Budge Budge and several projects under the public-private partnership and joint ventures could face scrutiny. Railway staff training facilities at Kharagpur and Kurseong may also be impacted while the "izzat scheme", which aimed to create low-cost housing for people living near the railway tracks could be reworked.

The Centre may also seek a fresh review of the large number of projects announced for the state by Banerjee and her successors from the Trinamool.