Speaking on the occasion Naik hoped that the move would start a tradition in public accountability within the railways, but more specifically reveal the performance or lack of it on part of the ministers.

Dispelling the myth that the suburban system was a loss-making operation, Naik revealed that for 1996-97, Mumbai's suburban system, which carries 59 lakh commuters daily made a surplus of Rs 137.83 crore. Calcutta, which caters to 13 lakh passengers daily, made a loss of Rs 296.15 crore and Chennai which carries 5.7 lakh commuters made a loss of Rs 58.36 crore. Thus although Mumbai was a lucrative system, in the context of suburban systems all over the country, there was a loss.

With the creation of the MVRC the minister hoped that Munbai'scommuters, who contribute so significantly to the railways, will get a better deal. Already the budgetary provision for major projects has been increased to Rs 159.34 crore in 1998-99 from Rs 66.47 crore in 1997-98.

Of the major projects currently underway are five of the Metropolitan Transport Project, estimated to have a total cost of Rs 1,766 crore.

Ram Naik admitted that one of the most serious issues facing the ministry at the moment is the development and regularisation of the slums along the railway line. The minister has categorically said that these would be removed and relocated. The railway ministry is currently in talks with the World Bank for Rs 400 crore of assistance to tackle this problem. The World Bank is seriously considering the matter.

Mumbai Rail Vikas Corporation
The Mumbai Rail Vikas Corporation (MRVC), the creation of which was cleared by the cabinet earlier this month will have a share capital of Rs 25 crore, split into 2.5 lakh shares of Rs 1,000 each. In addition tothe equity, the MRVC will raise funds from railway fare, commercial exploitation of railway land and budgetary support from the Indian Railways and the government of Maharastra, which have a 51 per cent and 49 per cent stake respectively.

A World Bank loan of Rs 2,400 crore is also being negotiated. The MVRC will implement 12 rail projects included in the Mumbai Urban Transport project (MUTP-II), estimated to cost Rs 4,741 crore.

The minister said that the MVRC will be incorporated within two months.