Ahmedabad Toy Train Contract Sent For Second Review in a Month Over Questions on Financial Data

Ahmedabad Municipal Corporation has returned the proposal for operating and maintaining the Kankaria Lakefront toy trains for a second review within a month, seeking basic financial and passenger data before deciding on the contract.

At a meeting of the Recreational, Cultural and Heritage Committee on October 26, members sought details of last year's revenue, passenger numbers and payments made by the previous operator to the Corporation. The proposal was sent back for further scrutiny, leaving the contract decision pending.

₹1.27 Crore Annual Payment Proposed

M/s Khodal Corporation, a joint venture that previously operated the toy trains, submitted a proposal on October 26 offering to pay the Corporation ₹10.59 lakh per month, or around ₹1.27 crore annually.

Despite the agency's prior involvement in the service, officials sought a review of the earlier contract's financial performance before proceeding with the new proposal.

Committee chairman Jitendra Kharchariya confirmed that the proposal had been returned for further study. He said officials had been asked to provide details of revenue generated last year, passenger numbers and the amount paid by the previous operator.

The proposal had already been sent back once earlier in the month. Its return for a second review has raised questions about why these figures were not available during the initial assessment.

Previous Year Revenue Reached ₹1.53 Crore

The Corporation reportedly earned around ₹1.53 crore from toy train operations last year. The revenue figures and passenger numbers are among the key details needed to assess the proposed contract and compare the financial terms with the service's previous performance.

The Corporation has purchased two new toy trains for Kankaria Lakefront at a cost of ₹3.54 crore. Official estimates project annual revenue of approximately ₹1.27 crore from their operation.

Based on that estimate, revenue equivalent to the purchase cost could be generated in roughly three years. However, this calculation does not account for operating expenses or other costs.

Ten-Year Contract for Existing Operator Under Scrutiny

The Corporation has proposed awarding a 10-year operation and maintenance contract for the two new trains to Khodal Corporation, which emerged as the sole qualified bidder in the tender process.

The proposed monthly payment has also been reported at ₹10.50 lakh, while the latest proposal cites ₹10.59 lakh. The difference between the two figures will require clarification before the terms are finalised.

Khodal Corporation already operates and maintains the existing toy trains at Kankaria Lakefront. The prospect of awarding the long-term contract to the same agency has drawn attention to the tender process and the need for a clear assessment of past performance.

New Trains Manufactured in Ahmedabad

The two existing toy trains at Kankaria Lakefront are around 15 to 16 years old and were imported from abroad. The two newly purchased trains have been manufactured in Vatva, Ahmedabad, making them locally produced alternatives.

The estimated offset value of the two old trains is around ₹28.70 lakh.

The committee's decision remains pending until the requested financial and passenger data are reviewed.