'Maharashtra plug on funds puts brakes on MUTP tenders'

MUMBAI: The state government's freeze on its share of funds towards the Mumbai Urban Transport Project (MUTP) has started to have an adverse impact as the tendering process has been put on hold for various projects being executed by Mumbai Railway Vikas Corporation, MRVC officials said. The tendering process for a communications-based train control system, procurement of 191 AC rakes and an improvement plan for 19 stations is on hold, they said.

MRVC, formed to expand the city's suburban network capacity, is a 50:50 joint venture between the Maharashtra government and the ministry of railways. The cost of the projects is to be borne equally by both. Funds for the projects executed by MRVC are released by the Mumbai Metropolitan Region Development Authority (MMRDA) and the City and Industrial Development Corporation (Cidco).
The state government has not released its share of funds since 2020 and owes MRVC close to Rs 1,000 crore, said officials. The shortfall was bridged by the railway ministry, which is now not keen on releasing funds in excess of its committed share, they added.
MRVC has put on hold payment worth Rs 550 crore to various vendors and contractors, said officials. An official said, "MRVC has now decided to pause the process of appointment of contractors for redevelopment of 19 railway stations. The work is necessary to provide better access and amenities to commuters."
Also, several other tenders which were to be floated are now on hold. The official said, "MRVC was going to try out the communication-based train control system that will improve the headway between two trains in the same path, allowing authorities to run more trains. The tenders were to be floated but this too is delayed."
Another crucial tender which is getting delayed is the procurement of 191 air-conditioned rakes. The railway ministry had approved fully AC trains after deliberating for months on partial AC trains.
The official said, "We will have to go for global bids. Specifications for the kind of rakes needed for Mumbai have been finalised. The tender was about to be floated but due to uncertainty around funds, the tendering process on this project cannot move forward."
MRVC is also carrying out augmentation of railway lines in the Virar-Dahanu belt.
The official said, "The contracts for civil works have been allotted but now was the time to float tenders for over head electric (OHE) lines and laying of tracks. This too is now stuck." Another official said, "MRVC officials will not take the risk of awarding the contract when the flow of funds has stopped. The tenders take 3 months to finalise." MRVC officials have had multiple meetings with state officials who they said have assured the release of funds.