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Gujarat: ‘Redevelopment cost of Gandhinagar railway station shot up by 150%’

The ministry holds a 26 per cent equity stake through the Indian Railway State Development Corporation Limited (IRSDC), while the state government owns the remaining 74 percent stake in the firm.

Bihar: 13 coaches of Tapti Ganga Express derail in Saran, 4 injured Incorporated on January 1, 2017, GARUD is a joint venture of the Government of Gujarat and the Ministry of Railways.

The redevelopment cost of Gandhinagar Railway Station has shot up by almost 150 per cent at Rs 610 crore, after a decision was taken to convert an under-construction 300-room hotel on top of the railway station to the 5-star category.

“Initially, the estimated cost of the redevelopment was Rs 243.58 crore. However, considering the change in the budget, from a 3-star hotel to a 5-star hotel, the project cost has been increased to Rs 610 crore,” states the first annual report of the Gandhinagar Railway and Urban Development Corporation Limited (GARUD) for the year 2017-18, which tabled in the recently concluded budget session of the Gujarat Assembly.

The annual report further states that the cost of the project spiked after “structural changes were suggested by the Hotel Operator (The Leela Palaces, Hotels and Resorts)”, and the construction of additional structures, such as an approach and exit ramp, a road and an underbridge, were proposed to be developed as part of the project.

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The increased budget also includes the renovation of the railway station and the refurbishment of the adjoining Mahatma Mandir Convention and Exhibition Centre (MMCC) and the Helipad Exhibition Grounds (HEG), which play host to the biennial Vibrant Gujarat summits of the state government.

Incorporated on January 1, 2017, GARUD is a joint venture of the Government of Gujarat and the Ministry of Railways. The ministry holds a 26 per cent equity stake through the Indian Railway State Development Corporation Limited (IRSDC), while the state government owns the remaining 74 percent stake in the firm.

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On January, 9, 2017, Prime Minister Narendra Modi had attended the “Bhoomi Poojan” ceremony of the project.

When quizzed about the spike in the project cost, Raj Kumar Beniwal, managing director of GARUD said, “The earlier plan was to construct rooms of all three categories- 3-star, 4-star and 5-star. Then, we decided to construct all 300 rooms under the 5-star category. Secondly, we have increased the height of the structure from 50 meters to 73 meters. This has been done to ensure that the hotel premises do not get disturbed by the activities of the railway station located below.”

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On July 30, Gujarat Chief Minister Vijay Rupani had visited the project site at Gandhinagar.

“In the recent meeting held with the CM, railway officials had agreed to increase the equity contribution in the project” Beniwal said. “The civil work is almost complete and the final finishing is going on. Interior work is also being done parallelly,” the IAS officer added.

GARUD has requested both promoters, the Gujarat government and the Ministry of Railways, to allow an increase of the authorised capital from Rs 30 crore to Rs 100 crore.

While the former has given its approval, the latter’s is pending, the report added. As of March 31, 2018, the Government of Gujarat invested Rs 22.20 crore, while the Railways invested Rs 7.90 crore as equity contribution in GARUD.

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The state government and the ministry have also released a grant of Rs 59.99 crore and Rs 39.99 crore respectively. When asked if GARUD is considering to borrow Rs 400 crore for the project, Beniwal said, “This (decision) is in process, we are in talks with a few banks. We are also talking to the government if they would like to fund us, instead of us opting for the loan.”

First uploaded on: 03-08-2019 at 04:04 IST
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