Union Minister of State for Home Affairs G. Kishan Reddy has written a letter to Chief Minister K. Chandrasekhar Rao ruling out movement of local trains under Phase II multi-modal transport system (MMTS) for Hyderabad if the State government failed to release its share of cost for the project.
Mr. Reddy reminded Mr. Rao that the works under Phase II had stopped as the State government had not released its balance share of ₹414.14 crore so far. It had paid only ₹129 crore of its total estimated share of ₹544.36 crore.
In addition, there was a cost escalation for the project as it dragged on over the past six years. The revised cost of the project went up from ₹816.55 crore to ₹951 crore. At this cost, the State government’s share worked out to ₹634 crore while the liability of railways was ₹317 crore.
However, the railways had so far spent double its share amounting to ₹789.28 crore. As a result, there was no way the project could make further headway unless the State government released its balance share.
In this background, Mr. Reddy urged the Chief Minister to take the initiative for completion of works by releasing funds.
Mr. Reddy also urged Mr. Rao to take the initiative for commencement of MMTS works linking Ghatkesar with Raigir railway station as part of extension of the project up to Laxminarasimha Swamy temple at Yadadri. The railways had approved the proposal in 2016-17 with an estimated budget of ₹412 crore as per an agreement with the State government. The railways had asked the government to release an initial amount of ₹75 crore but it was not done.
Therefore, the work did not commence.
The Union Minister dwelt on the significance of MMTS extension project in view of works on temple construction nearing completion.
He offered his cooperation for any kind of support from the Centre to overcome all issues.