Title - Rly project stuck in funds puzzle

Mumbai: The ambitious Panvel terminal complex project seems to have gone off track. For, City and Industrial Development Corporation Ltd (Cidco) and the railways have not been able to find a common ground on the issue of generating funds for the project.
    Former railway minister Dinesh Trivedi had, in his budget speech, proposed the creation of a terminal complex in Panvel and a coach maintenance centre in nearby Kalamboli in partnership with the Maharashtra government through Cidco.
    A senior railway official said: “We have asked Cidco to share 2/3rd of the project cost. However, there has been no commitment so far.” Another senior official said Cidco had proposed that funds be generated for the project based on the public-private partnership (PPP) model. The total cost of the project was estimated to be around Rs 850 crore, he said, adding that the first phase would cost Rs 130 crore.”
    “We do not have any objection if Cidco goes ahead with plans to generate funds on its portion of land using the PPP model. However, Indian Railways does not have a policy on the commercial exploitation of land through the PPP model to execute a project of this nature,” the official said.
    Asked about the controversy over funds, a Cidco official said: “We are willing to share the cost on 50:50 basis, excluding the land that will be made available to execute the project.”
    Meanwhile, a senior government official said all was not lost yet as the state had set up a committee to iron out the differences. “The demand by the railways on Cidco sharing 2/3rd of the cost can be considered as the project is in the interests of the city,” the official added.
    However, a senior railway official asserted that “work on the Panvel coaching and terminal complex was unlikely to take off in the near future”.
    Shifting some long-distance trains (from CST and LTT) to Panvel was expected to allow the authorities to run more local services in the suburban sector. It would have also helped improve track- and OHE-maintenance work.
    PANVEL TERMINAL

• The railways has asked Cidco to share 2/3rd of the cost for the Panvel coaching and terminal complex

• Cidco has proposed that funds for the project be generated using the publicprivate partnership project

• Work unlikely to take off in the near future, says a senior railway official