GANDHINAGAR: Amid uncertainty over Ahmedabad-Gandhinagar metro rail, the Gujarat government has put the ambitious dedicated regional rail system project on the fast track. A special purpose vehicle to develop a rail network linking peripheral towns like Sanand, Viramgam, Dholka, Dhandhuka, Kalol, Kadi, Nadiad, Anand and Naroda has been floated last week with an initial authorized capital of Rs 200 crore.
First conceived in 2004, initial estimates pegged the project cost at Rs 2,500 crore. At current prices, it may cost Rs 5,000 crore. The state government has received the final feasibility report from government of India’s RITES.
“The SPV has been named as Ahmedabad Regional Rail Company (ARRC), which will closely work with Indian Railways, urban & rural local bodies as well as industries and mines department,” said a senior official. ARRC will be initially formed by the state government with an initial authorized share capital of the company of Rs 200 crore divided into two crore equity shares of Rs 10 each and the initial paid up capital of the company will be Rs 10 crore.
“The SPV will get approval from the Railway Board as well as Western Railway. The Railways will operate and maintain the tracks and provide access to commuter trains, besides leasing coaches,” he said.