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Railways mull using land in Bombay for commercial gain

The railway ministry is contemplating using railway land and airspace in the metropolis for commercial benefits and is thinking of floating bonds for the Mumbai Railway Vikas Corporation, according to Railway Minister Nitish Kumar.

Kumar, in an informal chat with reporters after sigining the Memorandum of Understanding with the Maharashtra government for setting up of MRVC, said that to raise funds for the MRVC and the implementation of the Mumbai Urban Transport Project-Phase II, the railway ministry and the state government will have to sit together and device concepts and instruments to raise the money.

During the discussions held so far, the ministry has mooted a proposal to utilise the railway land and its airspace for commercial purposes. With such a concept in the metropolis, especially Bombay, the Indian railways could generate a significant amount of money to implement the railway component of the MUTP-II.

He further said that apart from this, he had also held discussions with the Maharashtra Chief Minister Manohar Joshi and other top officials about floating bonds for raising funds.

The MRVC is being set up with an initial corpus fund of Rs 250 million, of which 51 per cent will come from the Indian railway, while the balance 49 per cent will be arrranged by the state government.

The MUTP-II will implement rail and road development projects across this metropolis and its suburban areas. The estimated cost of the project is about Rs 64 billion with rail component of Rs 47.4 billion. The World Bank assistance is likely to be 65 per cent of the total cost.

Kumar declined to comment in detai on the fate of the World Bank component in wake of the sanctions imposed by the United States and some other countries following the nuclear blasts. He, however, said, that the project will be implemented at any cost and funds will be generated internally.

Saying that he was aware about the problems of the over 5.4 million suburban commuters, he assured that the railways will make every effort to improve the daily travel conditions of the Bombay commuter.

Meanwhile, a status paper prepared by the railway ministry to be presented in Parliament, will highlight the railway's dual role -- as an organisation with commercial interests and social commitments -- and an account of its projects, Nitish Kumar said.

He stated that the Indian railways's role is very important as it has several social commitments. But the commercial aspects are also to be taken into consideration.

He said that the railways has to take up projects in the far flung backward areas, where the rate of return on investments are very low. But since a balanced development is needed for the country, such projects cannot be ignored.

Kumar said the BJP-led coalition government is committed to projects in the rural and backward areas and far flung states on the North-Eastern frontiers for the development of those regions even if they were not commercially viable.

The status being presented on the opening day of Parliament tomorrow will also highlight pending projects to the tune of Rs 400 billion. The paper is aimed to make the public aware about the operation and financial aspects of the railway.

UNI