The 541-kilometre route will be constructed in three phases. The first, from Lalitpur to Satna with a length of 282.73 kilometres, is expected to cost Rs 481 crore. Phase 2 will link Khajuraho with Mahoba, a stretch of 46.48 kilometres with an estimated cost of Rs 86.6 crore. The final phase which will connect Rewa and Singrauli is 191.6 km and is to cost Rs 406.8 crore.

Spanning two states -- Madhya Pradesh and Uttar Pradesh -- the new route will finally give industries such as coal, limestone and cement a transportation system for their finished goods. So far Bundelkhand, long classified as a backward area,has been unable to exploit its mineral base as costly road transportation was a major deterrent.

Although exact details are not available, this route is expected to have a high internal rate of return - a factor that will have to become increasingly important in the Indian Railways choice of projects. To start with, there is the tourist flow to Khajuraho. With the government giving a renewed thrust to tourism in the area, the flow is expected to increase.

Foreign tourists will add another dimension with foreign exchange earnings for the Railways. While the pay back period is not available, a spokesperson for the Central Railway says the project is expected to break even very soon and will be a net earner for the Railways.

According to sources in the ministry of railways, following the white paper which revealed the financial crisis facing the Indian Railways, there has been consensus that some kind of prioritising of projects would have to be undertaken. According to the white paper, given the currentlevel of funding available to the Railways, all new projects, estimated to cost Rs 19,300 crore will take nearly 40 years to complete. What has caused even more concern is the fact that only 10 per cent of these are economically viable.

Given the acute nature of the crisis, the ministry and railway officials are reportedly working on a plan whereby the revenue generating projects are finished first and would help increase the funds flow so that the projects can be completed much faster. The Indian Railways have already indicated to the government that although they would be willing to develop economically unviable but socially desirable routes, the tab would have to be picked up through budgetary support.