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Railways signs lease for Rae Bareli Coach factory

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Express News Service

Posted: Jan 19, 2009 at 0136 hrs IST

Lucknow After almost three months’ row between the state government and the Ministry of Railways over the land for the Rae Bareli Rail Coach Factory, the ministry has finally signed the lease deed prepared by the state government.

The ministry has some objections in the current version as well and is expected to raise them during the next hearing on January 21.

The ministry had objected to certain points in the lease deed, after which the Lucknow Bench of the Allahabad High court had asked the state government to reconsider the document. The revised deed was submitted before the court on December 17 and the court had asked the Railways and the state government to settle the matter soon.

The objectionable points in the revised deed included the one about taking permission from the state government before setting up any ancillary unit and that the renewal of the deed after 30 years will depend totally on the state government. But in the interest of the factory, the Railways signed the deed on Saturday and agreed for the registration on Monday. “We do not want to delay the project further as its cost will increase manifold otherwise,” said a senior official of the ministry. Asked if the railways ministry has agreed to all the clauses of the deed, he said: “Our resentment over some of the clauses still remains and we will take it up in the court.”

Officials say after Monday’s registration, the ministry is planning to file an affidavit, requesting for a change in some of the clauses.

The work on site is expected to start after the January 21 hearing.

On October 14, UPA chairperson Sonia Gandhi was supposed to perform bhumi pujan at the site, which is within her constituency, Rae Bareli. But two days before her visit, the state government announced the withdrawal of the land, saying that the farmers were agitated and may commit suicide if the factory is built there. But later, a few section of farmers and the Railway Ministry filed a case in the Lucknow Bench of the Allahabad High court, demanding the cancellation of the UP government’s order.

In the meantime, the state government announced that it would restore the land, but only on lease. This was not acceptable to the Railways as the land was earlier given for outright purchase.

On December 17, the court gave its approval for construction, but said the lease document must be signed first.

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