The project was announced last April, and last July Premier Daniel Andrews said the work would begin sometime in 2018 and take between 12 and 18 months, but so far the project has been on hold.

Following this week’s state opposition promise to fund new V/Locity carriages for the Warrnambool line if elected, the state government called on the federal government to release funding for its project so it could get underway.

Victorian Transport Minister Jacinta Allan said “chaos coming out of Canberra” meant the state government was yet to receive funding to deliver the upgrades to every regional rail line throughout the state.

“We understand the Turnbull Government have no major concerns – so it’s time they sign the deal, deliver the money – so we can give passengers the train services they deserve,” she said.

The Warrnambool line project, announced last year under the $1.57 billion Regional Rail Revival package, would pave the way for the modern carriages to replace the outdated 1980s carriages that currently run.

The project includes a new crossing loop, signalling upgrades and track works.

A spokeswoman for Deputy Prime Minister and Infrastructure Minister Michael McCormack said the federal government remained committed to the package with a $1.42 billion pledge.

“Project scope for the Regional Rail Revival package is close to being finalised, and the Deputy Prime Minister looks forward to discussing with (Transport) Minister Allan in coming weeks,” she said.

The opposition promise to spend $633 million on a new fleet of V/Locity trains would see rail cars capable of speeds up to 160 km/h on the Warrnambool line, however, it is understood introducing the modern carriages onto the Warrnambool line would rely on the completion of the state government’s $114 million project.

Opposition Leader Matthew Guy said the plan was part of a Liberal National strategy to decentralise Victoria’s population, and a modern rail service was a central part of that plan.