Andhra govt, Rlys to set up SPV for Southern Splendour

The Indian Railways and the Andhra Pradesh government will soon float a special purpose vehicle (SPV) to launch Southern Splendour, a tourist circuit train project covering important locations in the South India.

According to officials in the state tourism department, the Centre recently gave clearance to the Rs 40-crore project.

While the Centre has agreed to provide Rs 10 crore financial assistance to the project, the railways will chip in with another Rs 10 crore. The state government has decided to invest Rs 5 crore in the project.

Conceptualised on the lines of 'Palace on Wheels' to attract tourists from India and abroad, the circuit train project was proposed at the meeting of tourism ministers of five southern states held here.

The Andhra government, which has taken the lead in this regard, is in discussions with the railway authorities to start a company for the purpose.

State government officials said that the other states were also willing to join the project. The project is expected to be ready by 2008.