PLANS to improve the historic Mid Hants Railway were hanging in the balance as the Chronicle went to press last night (Thursday).

Managers want to upgrade the Watercress Line between Alresford and Alton, and to buy an extra locomotive.

The cost of the project is likely to stretch into hundreds of thousands of pounds. They hope to find the money by attracting National Lottery funding and selling off a strip of land for housing.

The plot they intend to part with is beside Butts Junction, on the disused Alton to Basingstoke line. The land was bought from British Rail, along with the 10-mile Alton to Alresford route, in 1977.

Mid Hants Railway Plc has applied for permission to build 14 properties, including several starter homes, on the site.

East Hampshire District Council's planning committee was due to reach a decision at its meeting last night (Thursday).

To help their case, Colin Chambers, who chairs the railway, wrote to shareholders and asked them to contact the council in support of the application. He believes that their main obstacle is that around 30 trees on the proposed site are covered by preservation orders.

Permission had already been granted to fell 68 other specimens on the land, as they were in a dangerous condition, said Mr Chambers. He added that if they were allowed to remove the final 30 then new trees would be planted elsewhere on the company's land.

"We're actually going to replant more trees than are coming down."

Mr Chambers said their plan was supported by several politicians and Tourism South East, and was not opposed by the Forestry Commission.

He explained that if the land could be developed then the proceeds would be reinvested in the line. "We've always been hamstrung in terms of capital projects," added Mr Chambers.

The most expensive item on the company's shopping list is a second medium-sized passenger locomotive, which could cost £350,000.

At present, the firm only owns one, which is a replica of Thomas the Tank Engine, from the books by the Revd W Awdry.

All the other locomotives operating on the Watercress Line are currently leased by the company.

The firm also wants to reinstall a turntable at Ropley and to bring some old signal boxes back into service.