Mumbai Rail Vikas staring at zero vikas
MRVC seeks Rs 2,000 crore from the state government to remain afloat
The cash-strapped Mumbai Railway Vikas Corporation (MRVC), on Sunday, asserted that there is no way to bail out the agency, looking after the ambitious Mumbai Urban Transport Project (MUTP), sans the Maharashtra government releasing Rs 2,000 crore funds.
Railway Board chairman, VK Tripathi, said that they are hopeful that funds would soon be provided by Maharashtra government. If the MRVC's financial crises continues, it could affect the MUTP-3 and MUTP-3A, which includes procuring 238 AC locals as well. The state government needs to give Rs
2,000 crore in two years, while MRVC hasn't paid contractors more than Rs 500 crore.
According to the MRVC sources, the situation is dire as officers are looking at going back to the parent organization within railways who were here on deputation. "The projects have stopped. We have no money to pay contractors,"
said a rail official.
The Indian Railways have paid Rs 700 crore extra and so they have refused to disburse additional funds until the state government doesn't contribute. "We are in touch with the Maharashtra government and have started receiving part funding," Tripathi stated, warning that any more freebies and reduction in fares would take us to the path of financial crises as seen in Sri Lanka.
The railways said that the requirement of coal has gone up tremendously hence they have increased the loading of coal. They have cancelled nearly 450 long distance trains for running coal special trains. There is a 20 per cent rise in demand and consumption for coal.
The railways has stated that they are doing everything to mitigate the coal demand in Maharashtra. "We have transported 15 per cent more coal in this April as compared to April last year. We are running coal special trains on priority. We are also transporting imported coals as well," added Tripathi.