26.11.12

Churchgate - Virar Elevated Rail Corridor update



Decks have finally been cleared for the 63-km Churchgate-Virar elevated rail corridor project to move ahead. After months of deliberations, the Maharashtra government and Western Railway have resolved their differences over the project’s implementation.
The wrangle between the two arose because the state government objected to a few clauses in the draft support agreement prepared by the railways for the project. The disagreement caused a delay in the agreement’s execution, which in turn impacted the process of tendering and other technical procedures. Now however, a consensus has emerged on the contentious clauses and the railways have agreed to redraft the agreement.
The earlier draft, officials explained, contained a clause requiring the state to shift underground utilities along the rail corridor within six months. It also granted the railways-appointed concessionaire the right to sue the government if it did not carry out this duty within the stipulated time frame. Furthermore, the previous draft mandated that the state acquire land needed for the project and to resettle project-affected people within 15 months; in this case too, a delay gave the concessionaire the right to sue.
Opposing the clauses, the state contended that the tasks of shifting utilities and land acquisition were too big for the time limits allowed. It also argued that the agreement was a bipartite arrangement and so the concessionaire and his rights should not be a part of it.
Protesting that existing buildings will have to be acquired for the project, the state pushed for finalization of the resettlement model for those displaced by their acquisition. The government, in addition, objected to an arbitration clause in the draft agreement.
The railways, after talks, agreed to consider the state’s demands and redraft the agreement. According to the newly achieved consensus, the time period for shifting utilities and resettlement will be relaxed; for resettlement, the deadline will be 24 months. The railways also consented to withdraw the clauses involving the concessionaire and arbitration.
Both sides are now readying to ink a new agreement next month. The railways meanwhile have awarded work for figuring out the project’s financial feasibility.

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