The project envisages operation of a luxury train connecting all the major tourism destinations in South India. The Southern Splendour is mooted on the lines of "Palace on Wheels" in Rajasthan.
Andhra Pradesh, Kerala, Karnataka and Tamil Nadu will work in co-ordination under the SPV. The Southern Splendour project is estimated to cost Rs 40 crore. Funds for the project will be mobilised through the SPV. The project cost will be borne by the member states, Central Government and the Union Railway Ministry.
According to an official of the AP Tourism Development Corporation (APTDC), there should be a consensus among the southern states for the smooth execution of the project. The Central Government has already sanctioned Rs 10 crore for the project. But the monetary contributions of Kerala, Tamil Nadu and Karnataka and the Railway Ministry are yet to be finalised. Discussions are under way at the Central Government level to sign a Memorandum of Understanding (MoU) among the four southern states. Under the Special Project Vehicle, each State is expected to provide Rs 5 crore for the Southern Splendour. Though the Southern Splendour project was mooted in 2002, much headway has not been made due to administrative glitches among the participant states.
