News Railways

Panvel-karjat Rail Project Stuck In Cost-sharing Row, Infra News, ET Infra


<p>Representative Image</p>
Representative Image

NAVI MUMBAI: The state government has asked the City and Industrial Development Corporation (Cidco) to bear 50% of the Panvel-Karjat railway work project costs. However, Cidco has objected to the directive, stating that the Maharashtra State Road Development Corporation (MSRDC) has to share the cost proportionately, as, being the special planning authority (SPA), a majority of the benefits will go to MSRDC.

The Panvel-Karjat railway work is estimated to cost Rs 2,783 crore. The Mumbai Metropolitan Region Development Authority (MMRDA) and Cidco were asked to equally bear the state’s share of 50% as per the agreement signed with the union government.

The state’s urban development department on January 7, 2017, issued a government resolution (GR) asking its agencies to provide funds for various projects under the Mumbai Urban Transport Project-phase III (MUTP-III). The GR says that the state government and the railway ministry each share 50% of project costs under MUTPs.

Out of the Rs 2,783-crore Panvel-Karjat railway work, the state has to share Rs 1,391.5 crore. Accordingly, both MMRDA and Cidco have to share Rs 695.75 crore each. The Cidco area will benefit under the project as per the GR.

Some of Cidco’s planned areas like vicinity of New Panvel, and Navi Mumbai Airport Influence Notified Area (NAINA) residents will benefit from the railway network with improved connectivity.

The land and property prices of these areas will see an exponential rise among other factors. There will be massive public demand for improved connectivity influencing other factors like business.

Cidco PRO Priya Ratambe said, “The area under Cidco will benefit from the doubling of the railway line between Panvel and Karjat. Instructions have been issued to MMRDA and Cidco to bear 50% each as a share of financial participation of the state government.”

A Cidco source said, “The MSRDC should bear the proportionate cost as part of the benefit sharing module. Hence we have requested the state government to seek the funds from MSRDC also but have not yet heard from them. The government has to revert through the MSRDC as they are a separate government agency.”

MSRDC planning department official said, “A letter has been received from the UD department about cost sharing of the Panvel-Karjat railway project based on the communication made by Cidco. However, there have been discussions on the same but no decision has been taken yet.”

  • Published On Dec 18, 2023 at 08:04 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Get updates on your preferred social platform

Follow us for the latest news, insider access to events and more.


Source link