Maharashtra still owes Rs195 crore for railway projects

The state government may end up derailing suburban railway expansion if it doesn’t pay up soon. Due by December, it is yet to release an outstanding of Rs195 crore to Mumbai Railway Vikas Corporation (MRVC), a joint venture between the ministry of railways and the state government, for the execution of various projects announced under the Mumbai Urban Transport Project.

Various important projects currently underway, including the fifth and sixth metro line between Kurla and Thane, procurement of the new Siemens-made EMU rakes, and conversion of traction from direct to alternate current will get held up due to the delay.

“Procurement of EMU rakes itself runs into crores as one 9-car rake costs Rs20 crore. At the rate these are being manufactured at the Integral Coach Factory — four a month — around Rs80 crore is required in a single month,” said a senior railway official.

The budget grant for 2009-10 was Rs858 crore, of which half, Rs429 crore, was expected from the state government. It has already paid Rs234 crore, which includes Rs194crore in cash, and a Rs40-crore surcharge payable by the railways to the government.

Currently, MRVC has reserves of Rs108 crore. “But this is emergency amount saved by us while executing the earlier projects. It has been set aside to fund some urgent projects.

However, if we do not receive the due sum from the government, we will be compelled to dig into our own reserves,” the official added.