Ahmedabad Municipal Corporation Alters Controversial Kankaria Toy Train Tender: Operation and Maintenance Contract Reduced to 5 Years
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Following controversy over a proposal to lock in operations and maintenance fees for 15 years without a rent escalation clause, the Standing Committee of the Ahmedabad Municipal Corporation (AMC) has intervened to alter the contract parameters for the famous Kankaria Lake toy train.
Civic officials originally proposed awarding the operation and maintenance contract to Khodal Corporation for a 10-year term, with an option for a five-year extension. Under that initial proposal, the agency was set to pay a fixed rent of ₹1.27 crore annually, which translates to ₹10.59 lakh per month, with no provision for rent increases over the entire 15-year duration.
Standing Committee Halts Long-Term Lease Deal
The proposal faced significant pushback because standard municipal practice mandates annual rent hikes whenever civic properties, vacant plots, or parking spaces are leased out. Despite the fixed-rent clause, the Recreation Committee approved the officers' proposal after a month-long deliberation.
However, when the file reached the Standing Committee, members stepped in to cap the contract. The committee modified the draft, restricting the operation and maintenance rights to five years instead of 15. Once this five-year period concludes, the civic body will initiate a fresh competitive tendering process rather than granting direct long-term extensions.
Switch to Indigenous 'Make in India' Trains Saves Millions
Providing details on the project, Standing Committee Chairman Kamlesh Patel highlighted that the original toy train, 'Atal Express', launched at Kankaria Lake in 2008, had been imported from abroad at a cost of approximately ₹8 crore. Aligning with Prime Minister Narendra Modi's 'Make in India' and 'Atmanirbhar Bharat' vision, the corporation decided to replace the aging foreign engine with completely indigenous technology.
The procurement strategy yielded substantial cost savings for the civic body. While a single foreign train previously cost around Rs 8 crore, the AMC acquired two locally manufactured trains for a total of ₹3.59 crore.
Trial runs for both new indigenous trains have concluded successfully. Official clearances and police verifications are currently underway, and the civic body plans to open the new toy trains to the public during the upcoming Diwali festivities.
