VIJAYAWADA: Union Railways Minister Ashwini Vaishnaw said railway projects taken up in partnership with the Andhra Pradesh government were “severely affected” as the State has not been depositing its share of costs. A total of 10 projects, including the new line between Nadikudi and Srikalahasti, were taken up on cost-sharing basis in AP.
In response to BJP MP GVL Narasimha Rao’s question in Rajya Sabha on Friday, the Union minister noted that the State government has to deposit Rs 1351.5 crore towards its cost share in Nadikudi-Srikalahasti new line project. “... The Government of Andhra Pradesh is not depositing their cost share in the project. Execution of the project is held up on this account. Government of Andhra Pradesh vide letter dated November 3, 2020, has stated that the state will bear land cost only i.e. State Government refused to share construction cost of the project. Since the state has refused to continue with already agreed cost sharing arrangement for the project, the execution of project is held up on this account,” the union minister said.
The Union Railway Minister, to a query, added, “Railway has taken up 10 projects on cost sharing basis with the government of Andhra Pradesh. These include five new line projects of total length 958 mm costing Rs 13,399 crore and five doubling projects of total length 811 km costing Rs 8,935 Cr. An amount of Rs 3,263 crore is outstanding towards state share of costs, [but]it is not depositing its share... therefore execution of these cost sharing projects is severely affected on this account.”