MUTP: WB asks development bodies to sort out differences

The MRVC has objections over MMRDA not paying its share in the MUTP works. According to agency,the MMRDA is supposed to pay around Rs 200 crore for the phase I work for 2010-11. Both the agencies are at loggerheads over the R&R cost incurred during the execution of the rail component in MUTP. Under phase I,the MMRDA incurred Rs 401 crore as the R&R cost on the rail component. This is a bone of contention between the two agencies.

As per the agreement,the MMRDA and MRVC are to equally contribute for the rail component of the project. Both the agencies have interpreted the signed agreement differently and the matter is now likely to be forwarded to an arbitration committee comprising representatives from the state government and the Ministry of Railways.

The MRVC states that the cost incurred for R&R work has to be shared equally by both agencies as per the agreement. The MMRDA is refusing to accept that. “It was the railways that approached us and asked us to carry out the R&R work for them. As per the agreement,whatever amount is spent on R&R of rail component will be counted as state government’s contribution to the project,” said Dilip Kawathkar,joint project director (public relations). This means,the MRVC has to shell Rs 200 crore extra. Till March 2010,the MMRDA paid Rs 1,879 crore to the MRVC as its share,while the cost of the entire project is Rs 4,175 crore.

Amid the standoff,work on components of the MUTP such as the Virar car shed has almost come to a standstill. As the car shed is meant to accommodate and maintain additional trains,delay in the project will affect the services whenever the last batch of new rakes are commissioned in the Western Railway. The respite,however,is that the MMRDA has released Rs 47 crore early this week for 2011-12 meant for the works to be undertaken under phase II.