MUMBAI, January 15: The formation of the proposed Mumbai Rail Development Corporation (MRDC), part of the World Bank-aided Rs 5,000 crore Mumbai Urban Transport Project (MUTP)-II, is likely to be delayed further. Both the railways and state government have failed to reach a consensus on the issue of levy of surcharge on suburban rail commuters. And given the government's reluctance to take a decision before the parliamentary elections, the Memorandum of Understanding (MOU) between the Indian Railways and Maharashtra state might now be signed only after mid-March.At a meeting held on January 8 at Mantralaya, Chief Minister Manohar Joshi and railway officials failed to thrash out a solution. Government officials are now awaiting a note from the railways ``on the benefits to accrue to rail commuters'' before deciding on the surcharge.
A surcharge on rail travel was considered necessary to mop up funds for the implementation of various rail projects under MUTP-II. It was first approved by the state cabinet
and was to be imposed from April 1, 1998, but the CM beat a hasty retreat after criticism from MPs and MLAs. The cabinet has now approved the MRDC's formation without mentioning either the amount of the levy or its date of imposition. The levy will now be implemented only after a cabinet discussion.
Said K Nalinakshan, principal secretary, Urban Development, the Department of Economic Affairs has insisted that all matters involved with MUTP-II be resolved before the final signature is put on the dotted line between the state and WB officials.
A delay in the MRDC's formation also implies a delay in finalising MUTP-II with WB officials. A WB mission scheduled for January has now been postponed to mid-March. Senior railway officials are sceptical about the MOU being signed at all, and fear that the WB might just ``withdraw itself from financing the project.'' To offset such an event, an official of the Western Railway commented that Mumbaiites would have to accept the additional burden of the surcharge.
Added senior officials of the Metropolitan Transport Project (Railways), a surcharge on passengers after the MRDC is formed is `inevitable', considering the magnitude of revenue which will have to be repaid to prospective investors.
Compounding the confusion is the disinterest shown by the Railway Board in New Delhi. A proposal to float a public issue for generating revenue under the aegis of the MRDC is pending, as officials here are yet to receive definite guidelines from the Board. Also, the board's new chairperson V K Agarwal is reportedly yet to come to terms with his new position. Except for a formal announcement about the formation of the new corporation, he is yet to be appraised on its further progress, officials disclosed.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
