HYDERABAD: Work on two key railway projects, the Manoharabad–Kothapalli and Bhadrachalam–Kovvur, has stalled due to the state government’s failure to deposit its share of the project costs.
While both projects were undertaken on a cost-sharing basis, the state government is yet to release a total of Rs 1,129.75 crore, according to railway officials.
They said that despite repeated reminders being issued, the state government has not released its share of the funds, delaying project completion.
The Bhadrachalam–Kovvur line (118.9 km), sanctioned in 2012–13 under a 50:50 cost-sharing agreement between the Union and the state governments, was to pass through Sattupalli, Dammapeta, Aswaraopet and Jillugumalli. In 2021, the state informed the Ministry of Railways that it would not provide further funding, citing potential savings due to a revised alignment that would make use of an alternative project funded by Singareni Collieries.
Subsequently, the Railway Board conveyed that work on the Bhadrachalam–Kovvur section could resume after the state government completes land acquisition at its own cost, though the overall cost-sharing arrangement would remain unchanged. However, the Railways has not received formal confirmation from the state government, and consent remains pending. For this project, the state governments’s pending share is Rs 511.2 crore.
Regarding the Manoharabad–Kothapalli railway line, the total share of the state government share amounts to Rs 926.93 crore, of which only rs 416 crore has been deposited. The remaining Rs 511.2 crore is yet to be paid. Delays in land acquisition by the state government have also contributed to the work stoppage, the officials stated.
Of the total 151.36 km project length, the stretch between Manoharabad and Siddipet (76.1 km) has been commissioned. Work on Siddipet–Sircilla (35.27 km) continues, but the final section between Sircilla and Kothapalli (42.95 km) has not begun, as the state government has not handed over the required land to the Railways.
The South Central Railway general manager recently wrote to the chief secretary stating that land acquisition delays are impeding progress. The letter noted: “Progress of this project is hampering due to delay in land acquisition by the state government. Due to this delay, the EPC tender for the last stretch of 32 km could not be invited.
Further, ongoing works between Siddipet and Sircilla are being obstructed by land losers due to delay in payment for land and non-payment for structures like borewells, trees, fencing, etc. The targeted completion date of this project has been shifted because of these issues, which has been taken seriously by the Railway Board and the Prime Minister’s Office.”
The letter also pointed out that the state government had in August 2024 assured that Rs 135 crore for land acquisition in Rajanna Sircilla and Karimnagar districts had been processed and that land would be handed over by September 2024. However, the land has not yet been transferred.