Catch 22 situation: Railways and Maharashtra continue to be at loggerheads over the implementation of MUTP-2

State, Rlys fail to agree on MUTP-2. Govt demands explanation on project status, increase in cost.

MUMBAI: Indian Railways and state government continue to be at loggerheads over the implementation of Mumbai Urban Transport Project (MUTP) phase 2.

On September 4, the Urban Development department had sent a letter to the Mumbai Rail Vikas Corporation (MRVC) asking them to give detailed explanation on the increase in cost of MUTP-2, status of the projects under it and status of the land next to Bandra railway station. The government has stated that they shall make the payments for MUTP-2 once they get the reply.

As per understanding, the World Bank will pay 50 per cent of the cost and the remaining 50 per cent will be equally shared by the Railways and state. The cost of MUTP-2 has risen from Rs 5,400 crore to nearly Rs 8,000 crore now. Sources said that they have already sent a reply to the state government.

The railways downplayed the matter by saying that there was no issue with the funding from the state, and that as of now they have received around Rs 2,000 crore.

Meanwhile, the MRVC is struggling to get bidders for its prime plot at Bandra (E), worth over Rs 4,500 crore and the railways want to commercially exploit it.

The projects under MUTP-2 are yet to be fully completed as they are yet to construct 5-6 lines between Kurla-CSMT, Thane-Diva, Borivli-Mumbai Central 6th line and extension of Harbour line till Goregaon station. The MRVC sends the bills to the state government for reimbursements depending on the projects that are completed.