KARACHI: Railways Minister Shaikh Rasheed has assured his full support for Karachi Circular Railway (KCR) project, Sindh government spokesman Murtaza Wahab said on Tuesday.
Talking to media, Wahab said that the federal government has agreed to transfer its shares of Karachi Urban Transport Company (KUTC) to Sindh.
The Karachi Urban Transport Company (KUTC), was formed in 2008 as a public company jointly owned by the federal and the provincial governments with federal government and Sindh having 60 % and 40% shares of the company.
It is a pivotal decision to run the KCR project, Murtaza Wahab said.
The Centre has also assured to provide guarantee for the project in CPEC, he further said.
Around five kilometer area of the circular railway project was still under encroachments and the federal government has assured its cooperation for rehabilitation of the people who will be affected by the project, provincial spokesman said.
He also said that the land given to the railways belong to the government of Sindh.
Railways Minister Sheikh Rasheed held a meeting with Chief Minister of Sindh Syed Murad Ali Shah at Chief Minister House on Monday to discuss KCR project and other matters.
Murad Ali Shah during the meeting urged the federal government to transfer the Karachi Urban Transport Company (KUTC) to Sindh government.
It was decided in 2018 to handover the company to Sindh, to accelerate the processing of the $2.5 billion soft loan approved by the Chinese government for completion of the long-delayed Karachi Circular Railway (KCR) project, under the China Pakistan Economic Corridor (CPEC).
The Joint Cooperation Committee (JCC) meeting of the CPEC is scheduled in April in Beijing this year, while a Chinese delegation is expected to arrive Pakistan in May.
The chief minister had urged for settlement of the issue before the JCC session of the CPEC in April.
Sheikh Rasheed told chief minister that the federal government was prepared to handover the KUTC to Sindh after completing required formalities.