MUMBAI, November 18: There will be no immediate cess on Mumbai suburban railway passengers to generate funds for the railway component of the Mumbai Urban Transport Project (MUTP-II).

Bowing to intense opposition by state ministers and MPs to the clause in the proposal for the formation of the Mumbai Rail Development Corp. (MRDC), the Chief Minister today announced that the decision on the cess has been withheld and a final view will be taken jointly by the Central and state governments.

With this, the state cabinet today approved the setting up of MRDC as a joint venture of the state and Central governments.

Last week, the cabinet had `in principle' approved the formation of the MRDC. An MoU in this regard will be signed between the Centre (Indian Railways) and State Government. One of the features of the proposal was that a cess be levied from April 1, 1998 or three months since the formation of the corporation, (whichever be later) on commuters of Mumbai suburban rail to generate funds for the Rs 5,000 crore transport project.

While the cabinet ministers today opposed the levy of the cess, a similar view was taken by the state MPs who met the CM for a pre-parliamentary session meeting yesterday.

``Looking at the present state of the city's railways, we think it will be unjustified to levy a cess. The cess will be reconsidered by the state and central governments and the amount and time for the levy will be taken in a joint decision ,'' Joshi said today.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.