MUTP Phase II hits a roadblock
The Rs 5,000 crore Phase II Mumbai Urban Transport Project has a roadblock with Railways over Re 1 surcharge.
By PTI |
MUMBAI: The Rs 5,000 crore Phase II Mumbai Urban Transport Project that proposes to widen suburban rail network has hit a roadblock with Railway Ministry not agreeing with Maharashtra government's proposal to levy Re 1 surcharge on suburban rail tickets to raise funds.
The Re 1 surcharge per stage would enable the state government garner as much as Rs 3,000 crore, equivalent to 60 per cent of the cost, but the Railway Ministry is against the proposal as this would go against the uniform fare policy for suburban traffic in the entire country.
"We believe that people would not mind paying an extra Re 1 when they would get benefits because of MUTP Phase 2," Maharashtra Special Projects Secretary Sanjay G Ubale said.
Also, there was nothing wrong in separating Mumbai from rest of the country as far as fare structure for suburban rail traffic as Re 1 additional charge was affordable in a city like Mumbai unlike elsewhere in the country, he said.
As per the memorandum of understanding signed between the Maharashtra government and Railway ministry, one-third income would come from commercial development of railway land.
The Maharashtra government, therefore, expects to earn revenue of Rs 700 crore from commercial development of railway land in Bandra (East) to bring down the cost of MUTP Phase II.
The balance would be Rs 1,300 crore, which could be split between the Maharashtra government and Railway ministry at Rs 650 crore each respectively, Ubale said.
The Re 1 surcharge per stage would enable the state government garner as much as Rs 3,000 crore, equivalent to 60 per cent of the cost, but the Railway Ministry is against the proposal as this would go against the uniform fare policy for suburban traffic in the entire country.
"We believe that people would not mind paying an extra Re 1 when they would get benefits because of MUTP Phase 2," Maharashtra Special Projects Secretary Sanjay G Ubale said.
Also, there was nothing wrong in separating Mumbai from rest of the country as far as fare structure for suburban rail traffic as Re 1 additional charge was affordable in a city like Mumbai unlike elsewhere in the country, he said.
As per the memorandum of understanding signed between the Maharashtra government and Railway ministry, one-third income would come from commercial development of railway land.
The Maharashtra government, therefore, expects to earn revenue of Rs 700 crore from commercial development of railway land in Bandra (East) to bring down the cost of MUTP Phase II.
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The balance would be Rs 1,300 crore, which could be split between the Maharashtra government and Railway ministry at Rs 650 crore each respectively, Ubale said.
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