The state government is ready to rope in the Railways or its arm Indian Railway Catering Tourism Corporation (IRCTC), as a partner in the project so as to keep it moving, state tourism department officials said.
"The proposed project - modelled on the famed 'Palace on Wheels' - has not been shelved," they said, adding we have made our point to the central government and Ministry of Railways also and they have to revert back.
He said that the department has given its view saying that in the present scheme of things they will not be able to take it up. "But if the railway department through IRCTC comes on board then we are willing to extend it in our state."
Explaining the problems, he said the Railways have put lot of haulage charges in operating it.
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Karnataka tourism is putting in a lot of money to run this and it has become inviable for them, he added.
The 14-coach luxury train project was conceived in 2005 for promotion of tourism not only in Andhra Pradesh but also in other southern states with Hyderabad as the hub.
The Centre gave its clearance for the Rs 50 crore project on May 17, 2006 and the train was expected to hit the tracks in 2008. The Centre had also agreed to share Rs 10 crore out of the project cost while the balance was to be borne by the state.