On Sunday, the top boss of the Railway Board, VK Tripathi, said that they are hopeful that funds would be provided by the Maharashtra government to MRVC adding that there is no plan B to rescue Mumbai Rail Vikas Corporation (MRVC) out of financial trouble.
MRVC crisis
Sources have claimed that the situation within MRVC is in a dire state that could affect MUTP-3 and MUTP-3A which includes procuring of 238 AC locals as well. The state government needs to give Rs 2,000 crore in two years while MRVC hasn't paid contractors more than Rs 500 crore.
Sources in MRVC said that the situation here is tough as officers are looking at going back to the parent organization within Railways who were here in the deputation. "The projects have stopped. We have no money to pay contractors," said a railway official.
The Indian Railways have paid Rs 700 crore extra and so they have refused to disburse additional funds until the state government doesn't contribute.
"We are in touch with the Maharashtra government and have started receiving part funding," said VK Tripathi, Chairman and CEO, Railway Board who also warned that any more freebies and reductions in fares would take us to the path of the financial crisis as seen in Sri Lanka.
Coal crises
The Indian Railways is further talking about handling crises saying that the requirement for coal has gone up tremendously and that they have increased the loading of coal. For this, 450 long-distance trains were cancelled and instead were being run for supplying coal. There is a 20 per cent rise in demand and consumption of coal.
The Indian Railways has stated that they are doing everything to mitigate the coal demand in Maharashtra. "We have transported 15 per cent more coal in this April as compared to last year. We are running coal special trains on priority. We are transporting imported coals as well," added Tripathi.
Tripathi’s remarks came amid continued and increasing temperatures gripping Maharashtra thereby leading to an increase in demand for electricity and thus, coal.
Many parts of the state reported temperatures over 41-42 degree Celsius as part of the ongoing heatwave.
