Bhubaneswar, Dec. 13: Bhubaneswar Smart City Limited (BSCL) has formed an expert team for the modernisation and upgrade of the railway station.

Under this project, residential and commercial areas will be developed around the railway station.

The project will see the overall development of the Master Canteen area where the station is located.

The ambitious project, which will be executed at a total cost of Rs 250 crore, will be commissioned in two phases. While the first phase will see development of a city bus terminal and underground parking, among other things, phase two will witness real estate development.

"Since it is a big project, which comes under the area-based development of the smart city mission, we have decided to decentralise and segregate the proposed works to different stakeholders. The works department will do their job in the first phase," said mayor Ananta Narayan Jena adding the demolition of the existing railway station building would begin in a month.

At a high-level meeting held recently with chief secretary A.P. Padhi, administrators decided to start working on the project without waiting for financial assistance from the Japan International Corporation Agency or Asian Development Bank.

"The funds to begin the work will be taken out of the state's fund since waiting for assistance from the foreign agencies will delay the project," said Jena.

According to sources, 15 per cent of the total cost of the project will immediately be taken out from the Bhubaneswar Development Authority and BSCL funds.

More will be raised from pre-booking advance against the proposed office space to be built up and some more will come up as borrowings from the state government and Odisha Mining Corporation.

Moreover, the special team will work as a subsidiary of the development authority. A real estate marking consultant will also be appointed to provide further suggestions on the project.

A committee, which will be headed directly by the chief secretary, will look after the status of the project on a periodical basis.

Kharavela Nagar resident Janardan Rath said the meetings and the decisions were fine, but the administrations should ensure proper groundwork.

"It will be a year soon since the smart city list was declared, but nothing substantial has been done so far. I hope this time the government will start executing the projects," said Rath.