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They also agreed to expedite the Phase II of the Rs 614 crore Multi-Modal Transport System (MMTS) with Andhra Pradesh bearing two-thirds of the project cost and the rest to be borne by the South Central Railways.
Apart from taking up some of the pending projects, the Railways and the State have agreed to take up development of a new line between Nadikudi Junction and Srikalahastri at an outlay of Rs 655 crore. While cutting short travel time by about 69 km, this rail link is being positioned as an alternative gateway to the East.
At an open interactive session between the Andhra Pradesh Chief Minister Dr Y S Rajasekhara Reddy, the Union Minister for State for Railways, K.H. Muniappa, and Members of Parliament from the State, the Railway Minister assured that the State projects would be taken up on a priority basis.
The Railway Minister said if all the State proposals were to be taken up, it would require an investment outlay of Rs 60,000-65,000 crore and will take more than two decades. Given the Budget constraints and allocation of Rs 682 crore during 2009-10, it would be appropriate to share cost of some projects that need immediate attention.
Dr Reddy agreed to this suggestion and wanted the Ministry to take up new lines on priority basis.
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