Ambani, France's TGV may tie up for Kolkata rail

The Reliance Anil Dhirubhai Ambani group is in talks with TGV of France to bid for the Rs 3,000-crore light railway transit system (LRTS) in Kolkata.

Sources close to the group said Reliance Energy Ltd, the power and infrastructure arm of the group, could form a special purpose vehicle with TGV for the purpose.

The group had already initiated discussions with the French company, whose technology was believed to be of top quality, for the project. "It is the best in the world in LRTS," they added.

One of the pre-conditions of the Kolkata LRTS project is that the bid should be supported by a proven technology already in use in some part of the world.

"Reliance Energy will give a formal presentation on its plan to the West Bengal government on July 24," the sources said. There is a possibility of Anil Ambani himself being present during the presentation in Kolkata.

Reliance Energy is also undertaking the metro rail project in Mumbai with a technology partner.

Sources in the state government said Chief Minister Buddhadeb Bhattacharjee was keen on the Reliance proposal because it was more attractive than the others.

Siemens and Amex International of the Czech Republic are also in the fray for the project, though none of them is willing to finance it fully.

The proposal by Srei-Metrail, another bidder for the project, is not being considered now as its initial proposal was for monorail.

"Reliance is ready to finance the project fully, but Siemens and Amex have asked for assistance; so the state government is eager to see Reliance Energy's formal proposal," the government sources said.