New Toy Trains Arrive At Kankaria, AMC Plans ₹10.59 Crore Contract With Existing Agency

The Ahmedabad Municipal Corporation (AMC) has purchased two new toy trains for tourists at Kankaria Lakefront and is now preparing to hand over their operation and maintenance to Khodal Corporation, which currently manages the existing toy train service.

A proposal to award the agency a 10-year contract worth ₹10.59 crore has been placed before the upcoming Recreation Committee meeting.

Khodal Corporation Sole Qualified Bidder

The AMC had invited tenders for the operation and maintenance of the two new toy trains. Two agencies — Khodal Corporation and Shiv Corporation — submitted bids.

However, Shiv Corporation reportedly failed to qualify during the technical evaluation, leaving Khodal Corporation as the only technically qualified bidder.

The AMC has consequently proposed awarding the 10-year contract worth ₹10.59 crore to Khodal Corporation. The proposal will now be considered by the Recreation Committee.

Existing Operator Could Get New Contract

The proposal has drawn attention as Khodal Corporation is already responsible for operating and maintaining the existing toy train service at Kankaria Lakefront.

With the agency emerging as the sole technically qualified bidder in the fresh tender, the same agency could continue operating the service under the proposed new contract.

Two New Trains Purchased For ₹3.54 Crore

The AMC purchased the two new toy trains for ₹3.54 crore. Their operations are expected to begin within the next one-and-a-half to two months, subject to completion of the contract process.

According to a Kankaria Lakefront official, the new trains are expected to generate around ₹1.27 crore in annual revenue for the civic body. At that rate, the purchase cost of ₹3.54 crore could potentially be recovered through ticket revenue in around three years.

Officials said there are currently no plans to increase toy train ticket fares.

The existing toy train service generated around ₹1.53 crore in revenue last year, according to officials.

Existing Trains Are 15-16 Years Old

The two existing toy trains at Kankaria Lakefront are around 15 to 16 years old. They were imported from outside India when purchased.

In contrast, the two new trains have been manufactured in Vatva, Ahmedabad, making them domestically manufactured trains.

The existing trains currently have an estimated offset value of around ₹28.70 lakh, officials said.

Recreation Committee To Decide On Contract

The proposal to award Khodal Corporation the ₹10.59 crore, 10-year operation and maintenance contract will be placed before the AMC's Recreation Committee.

If approved, the contract process will move forward, with the new toy trains expected to begin operations at Kankaria Lakefront within one-and-a-half to two months.