WB conditions unacceptable: Naik

MUMBAI, FEB 14: The minister of state for railways Ram Naik today stated that some conditions of the World Bank for the grant of an estim...

MUMBAI, FEB 14: The minister of state for railways Ram Naik today stated that some conditions of the World Bank for the grant of an estimated Rs 4250 crore loan for the Rs 6300 crore Mumbai Urban Transport Project (MUTP-II) were unacceptable to the railways.

The WB had stated that the tenders for the purchase of new coaches and the upgradation of the existing ones, which at Rs 2000 crore is approximately half the assistance package, would be handed over exclusively to foreign suppliers. “They have stated that the railways cannot compete or quote in such a tender. This is unacceptable to us,” Naik said adding this provision would be negotiated.

The minister was speaking at a press conference shortly after commissioning a new platform at the Thane railway station. Senior railway officials have agreed with this stand. “We have several coach manufacturing facilities in the country, it would be foolish to expect us not to compete for the bid.”A WB team had visited Mumbai in October last year. Apparentlysatisfied with the progress of railway ministry and state government, the WB delegation, had promised to initimate the railways about the loan by the end of January. Naik said the railways would wait till the end of the month before reverting to the WB.

Threatening to withdraw from the project in 1997, the WB has set a list of stiff preconditions for granting a loan. Among them was the setting up of a separate corporation to oversee the execution of the loan. The railways agreed to this by setting up the Mumbai Rail Vikas Corporation (MRVC) which was approved by the central cabinet last month. The MRVC is to be online by March 31 this year.