The Konkan Railway corporation Ltd. (KRCL) will seek the help of the Indian Railways and all its state shareholders to raise additional equity in near future to fund its expansion, acting Chairman and Managing Director of KRCL Sanjay Gupta said.
Operating marginsThough the corporation’s operating margins are in the range of between Rs.200 crore and 220 crore per annum for over past five years it was not sufficient for investment in major capacity expansion. It has to be through an increase in equity, Mr. Gupta said.
Apart from Railways it will approach its shareholders, namely, Maharashtra, Karnataka, Goa and Kerala for additional equity mobilisation, he said.
LoansThe company’s loans have been converted into preferred equity by Indian Railways and the repayment has been deferred by 15-20 years.
For other loans amounting to Rs.15,000 crores, the corporation has been paying about Rs.130 crores annually.
Ore pricesKonkan Railway’s revenue earnings were unfavourable because of 60:40 ratio between passengers and freight. Private port development along the route did not materialise as envisaged and to add to the woes international ore prices have declined leading to a fall in exports which has impacted KRCL’s revenue, he said.
He said that the KRCL has been upgrading passenger facilities and expanding rail tracks despite a hit on the revenue. A major electrification programme between Verna in Goa and Mangalore in Karnataka with an investment of Rs.720 crore will begin this year.
