Ahmedabad Municipal Corporation has reportedly returned the proposal for operating and maintaining the Kankaria Lakefront toy trains for further study for the second time in a month, after a committee sought basic financial and passenger data from the earlier contract period.
The proposal was discussed at a meeting of the corporation’s Recreational, Cultural and Heritage Committee on October 26. Members sought details of the previous year’s revenue from the toy train service, the number of passengers who used it and the amount paid to the corporation by the earlier operating agency.
The decision has kept the contract process on hold. The questions raised by the committee relate to the financial basis on which the new proposal is being assessed, including whether the proposed payment from the agency is comparable with the revenue and operating performance recorded under the previous arrangement.
According to the supplied report, the proposal was submitted by M/s Khodal Corporation, a joint venture, which had also handled the earlier operation and maintenance contract. The agency was reportedly the only qualified bidder in the tender process. The proposal concerns the operation of two new toy trains purchased by the corporation for the Kankaria Lakefront.
The report cites two different monthly payment figures for the proposal. One section states that the agency would pay the corporation Rs 10.59 lakh per month, or approximately Rs 1.27 crore annually. Another section refers to a monthly payment of Rs 10.50 lakh. This difference requires clarification from the Ahmedabad Municipal Corporation and the agency before the financial terms can be treated as confirmed.
The corporation is reported to have earned approximately Rs 1.53 crore from the toy train operation during the previous year. Officials have estimated that the new operation could generate around Rs 1.27 crore annually for the corporation. The supplied report does not provide the passenger count or the complete financial details of the earlier contract, which were among the figures sought by the committee.
The proposal reportedly envisages a 10-year contract for the same agency. Its return for further study follows an earlier instance in which the proposal was also sent back for additional examination. The repeated requests for information have brought attention to the preparation of the contract proposal and the process used to compare the new offer with the previous arrangement.
The corporation purchased two new toy trains for Rs 3.54 crore. Officials have estimated that the expected annual revenue could recover an amount equivalent to the purchase cost in about three years, although that calculation depends on the final operating terms, passenger numbers and actual collections.
The existing toy trains are reported to be about 15 to 16 years old and were imported from outside India. The newly purchased trains were manufactured in Vatva, Ahmedabad, and have been described as made in India. The reported current offset value of the two older trains is approximately Rs 28.70 lakh.
The committee’s next step is to examine the requested revenue, passenger and previous-contract data before the proposal is considered again. The monthly payment figure and other financial terms should also be confirmed through the corporation’s official records before a final decision is reported.
