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Financial Daily from THE HINDU group of publications Tuesday, July 03, 2001 |
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`Funds paucity delays railway projects'
G.K. Nair
KOCHI, July 2
IF a State Government wanted to expand/develop the railway network in the State it could get it done at a faster pace by sharing the cost of the project with the Railways.
Non-availability of funds has become a major constraint for the Indian Railways to implement its sanctioned developmental projects. Speaking to Business Line here, the Union Minister of State for Railways, Mr O. Rajagopal, said ``Availability of funds i
s the problem. Rs 30,000 crore is required for completing the works already sanctioned. As against this, now the Railways is in a position to provide something like Rs 1,000 crore''.
The State Governments used to send proposals to the Centre for the development of railways in the respective States. But, given the present fragile resources position, the Railways was not in a position to fund the proposed projects and hence ``we are t
elling the States to come forward to play a participatory role, he said.
Citing the example of Tamil Nadu, where the State Government had come forward to participate financially in the implementation of the Cuddalore Port - Salem guage-conversion project, and the Chennai urban rail transport system, in which the State Governm
ent was meeting two-third of the total expenditure of the project, he said similarly, the Kerala Government should also come forward.
He said the Ernakulam-Kayamkulam section via Kottayam was running at 138 per cent of its capacity while that of via Alapuzha 105 per cent. Because of the high density, it was necessary to double both the lines. But acquisition of the land alone would cos
t Rs 290 crore for doubling this section. Initially, the Ernakulam-Kottayam section up to Mulanthuruthiy would be doubled and funds had been allocated for it, he said. By March 2002 the doubling of Mangalore-Kozhikode section was expected to be completed
and in another three years time it could be done up to Shornur, he said.
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