Regarding the very first page from the then Minister of State for Rail to the local MP inwhich he says "...I am delighted to be able to confirm that the project will funded to delivery, subject to future updates to the project business plan".
Worth pointing out that at this point the only thing that's been recommended to deliver is the OBC. Which may still conclude the VLR options aren't viable on closer inspection.
Having read sections of the Strategic Outline Business Case I got the impression that the DfT were in talks with Network Rail about the restoration project, so I asked Network Rail if they were currently in talks with Cambrian Heritages Railways. A representative of Network Rail phoned earlier today to really only restate what the SOBC says and that all development projects have been on hold due to the general election.
The outcome of the SOBC appears to be that heavy rail isn't viable for this proposal. It also strongly hints in the narrative that the project's best chance of success is to operate entirely separately from the national rail network, as that's when costs balloon. NR are not going to be particularly interested in this project as there's not really a lot for them to do on the isolated options and the Tram-Train running to Shrewsbury is going to be far more problems than it's worth from a maintenance and operations point of view.
In order to get a rail option for this study, the best chance of success will be to engage with National Highways, as the A5 is fundamental to this project, the VLR people, and possibly try and talk to Midland Metro (or whatever they're called now) about Trams vs VLR. Although what I'd actually be pursuing at this point is a 'fixed' bus link to Gobowen or even Shrewsbury station, with through rail ticketing and times in journey planners. This is a shorter lead (so lower costs and quicker returns), and will form the basis of some actual data with which to develop a Light Rail proposal at a later point.
Google says it's a c.35 minute drive to Shrewsbury down the A5, so two coaches operating an hourly service from Oswestry Coach park with a good layover in Shrewsbury to connect to as many things as possible with times, fares and delay repay would be relatively easy to setup.