Ahmedabad Municipal Corporation’s proposal to appoint an agency for operating and maintaining the Kankaria Lakefront Toy Train has been sent back for further study for the second time in a month, after a civic committee sought basic information on revenue, ridership and payments made under the previous contract.
The proposal was discussed at a meeting of the Recreational, Cultural and Heritage Committee on October 26. Committee members asked how much revenue the Toy Train generated last year, how many passengers used it and how much the previous agency paid the corporation. The committee chair confirmed that the proposal had been returned for additional examination.
The proposal concerns M/s Khodal Corporation, a joint venture that has previously operated and maintained the Toy Train at Kankaria Lakefront. According to the proposal, the agency would pay the corporation around Rs 10.59 lakh a month, or approximately Rs 1.27 crore annually. Another portion of the report refers to a monthly payment of Rs 10.50 lakh under the proposed contract.
The agency emerged as the only qualified bidder in the tender process, and the corporation proposed awarding it a fresh 10-year contract for the operation and maintenance of two new Toy Trains. The proposal had already been returned once for further study before it was placed before the committee again on October 26. The latest decision means the contract has not yet been finalised.
The financial information requested by the committee is central to assessing the new offer. The report states that the corporation earned approximately Rs 1.53 crore from Toy Train operations last year. Comparing that figure with the proposed annual payment would help the civic body assess the expected return from the contract and the terms under which the facility is being operated.
The corporation purchased two new Toy Trains for the Kankaria Lakefront at a cost of Rs 3.54 crore. Officials have estimated that their operation could generate about Rs 1.27 crore in annual revenue for the corporation. On that estimate, the expected annual income would be equivalent to the purchase cost over roughly three years, although the proposal remains under examination and the contract has not been approved.
The proposed reappointment of the existing agency for a 10-year term has also been contentious. Khodal Corporation is currently responsible for operating and maintaining the existing Toy Trains, and the proposal to continue with the same agency has previously led to controversy. The committee’s request for earlier revenue and contract-payment details comes as the civic body considers whether the new offer can be evaluated against the facility’s past performance.
The two older Toy Trains at Kankaria are around 15 to 16 years old and were imported from outside India. The replacement trains were manufactured in Vatva, Ahmedabad, and have been described in the proposal as made-in-India trains. The current offset value of the two older trains is reported to be around Rs 28.70 lakh.
The Recreational, Cultural and Heritage Committee is expected to examine the requested financial and operational details before the proposal is brought forward for a decision. Until then, the agency appointment and the 10-year operation and maintenance contract remain pending.
