The Ahmedabad Municipal Corporation has kept a proposal to award the operation and maintenance contract for Kankaria Lakefront’s two new toy trains pending for the second time in a month, seeking details of passenger numbers, revenue and payments made by the previous operator before taking a decision.
The proposal was discussed at a meeting of the civic body’s Recreation, Cultural and Heritage Committee on October 26. Committee members sought information on how much revenue the toy train generated last year, how many passengers used the service and how much compensation the earlier agency paid to the corporation.
Committee chairman Jitendra Kharchariya said the proposal had been kept pending for the time being to obtain and examine these details. The decision means the proposed long-term operating arrangement will not receive approval until the committee reviews the additional information.
The proposal involves appointing Khodal Corporation to operate and maintain both new toy trains for 10 years. According to the report, the agency was the only bidder to qualify in the tender process. Khodal Corporation is already handling the operation and maintenance of the existing toy train service at Kankaria Lakefront.
Under the proposed contract, the agency would pay the corporation Rs 10.50 lakh every month. The financial terms have become a point of discussion because the same agency is currently operating the existing service and has again emerged as the sole technically qualified bidder for the new arrangement.
The corporation purchased the two new toy trains for Rs 3.54 crore. Officials have estimated that their operation could generate approximately Rs 1.27 crore in annual revenue for the civic body. On that estimate, the purchase cost could be matched by revenue in around three years, although the proposal’s approval has now been delayed pending further examination.
The reported figures also include approximately Rs 1.53 crore in revenue generated from the toy train operation last year. The committee’s request for passenger and payment details is intended to establish how the proposed revenue estimate compares with the service’s recent performance and the previous contract’s financial arrangement.
The next decision will depend on the information sought by the Recreation, Cultural and Heritage Committee. Until the proposal is reconsidered, the reported 10-year contract for operating and maintaining the two new trains remains pending.
