Lok Sabha Question No. 300 (STARRED), answered on 2017-03-22
Subject: Revival of Railway Projects
Ministry: RAILWAYS
Asked by: SUKENDER REDDY GUTHA

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA STARRED QUESTION NO. 300 TO BE ANSWERED ON 22.03.2017

## REVIVAL OF RAILWAY PROJECTS

* 300.   SHRI GUTHA SUKENDER REDDY:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether certain projects have been shelved though budgetary allocations  were  made  for  them  every  year  since  their conception of projects including  Nalgonda-Macherla Railway line;
- (b) if so, the details thereof, zone-wise and the reasons therefor; and

(c) whether  the Government  has  assessed  the  reasons  for allocating  funds  year  after  year  the  above  projects  in  case the projects were not viable?

## ANSWER

## MINISTER OF RAILWAYS

(SHRI SURESH PRABHAKAR PRABHU)

(a) to (c):   A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF STARRED QUESTION NO. 300 BY SHRI GUTHA SUKENDER REDDY TO BE  ANSWERED IN LOK SABHA  ON  22.03.2017  REGARDING  REVIVAL OF RAILWAY PROJECTS

(a) to (c): None of the Railway projects sanctioned in Railway Budget has  been  withdrawn/shelved.  Union  Government  is  persuading  the State Governments to provide land free of cost and/or to share cost for construction of these projects. Large number of railway projects are facing the situation of cost overrun, due to delay in acquisition of land, statutory clearances like forestry and wild life clearances, shifting of services, cutting of trees, construction of road over bridges and road under  bridges  by  road  maintaining  agencies  etc.  Indian  Railways  is working  on  the  alternative  means  of  funding  to  accelerate  project execution as detailed below:-

- (i) Approaching all  State  Governments  to  form  Special  Purpose Vehicles (SPV) to undertake mutually identified rail infrastructure projects through Joint Venture,
- (ii)   Arranging additional funds by way of loan from LIC for funding throughput enhancement projects,
- (iii)  Requesting  State  Government  for  cost  sharing  alongwith provision of free land & other concessions,
- (iv)  Encouraging PPP (Public Private Partnership),

Macherla-Nalgonda  (92  Km.)  new  line  project  in  the  State  of Andhra Pradesh was included in Supplementary Budget 1997-98 at an abstract cost of ` 125.09 Crore with Rate of Return of 5.86%.  Macherla is  located  in  Andhra  Pradesh  and  Nalgonda  falls  in  newly  created Telangana State.  The latest anticipated cost of this  project  is ` 815 Crores.    At  the  stage  of  Final  Location  Survey,  issue  of  change  of alignment was raised by public representatives and the State Government but in the meantime, a bankability study was conducted by  Rail  Vikas  Nigam  Limited  and  it  was  found  that  the  project  is financially  unviable  and  can  neither  be  implemented through  Special Purpose  Vehicle  route  nor  through  Public  Private  Partnership  mode. As such, the project could not be taken forward.  Though the project is socially  desirable,  the  unremunerative  nature  of  the  project,  huge throwforward  of  ongoing  projects  and  limited  overall  availability  of funds preclude taking up of this project further.  But so far, this project is not shelved and exploration of avenues for taking up of this project is  alive.    For  the  year  2017-18  and  outlay  of ` 0.5  Crore  has  been proposed.    Provision  of  fund  allotment  is  done,  to  all  such  projects those which have been included in Rail Budget.

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