Mumbai

Hike in pay, fuel prices lower Konkan Railway profits

Profits for the Konkan Railway Corporation Ltd (KRCL) are expected to dip in the current financial year, with the organisation earning ₹129 crore in 2014-15 but managing only ₹39 crore in 2016-17 till date.

Sanjay Gupta, CMD, KRCL put this down to the Seventh Pay Commission salary hikes, rise in fuel prices and hire charges for wagon and coaches. Welcoming the inclusion of the rail budget in the Union Budget, he said KRCL is expected to get a part of the ₹55,000-crore government component as equity. “The exact figure will be known only after the release of the pink book by Indian Railways. The rest will be generated by KRCL.”

The Indian Railways has planned to generate a non-lapsable safety fund of ₹100,000 for next five years. Over the last 10 years, KRCL has spent ₹320 crore on safety projects including hill-stabilising and tunnel work, while ₹150 crore was spent on new rail tracks in the last three years.

“We also spend ₹80 crore every year on maintenance. ₹350 crore was granted to us this year and the work on projects has already started. In the coming financial year, we will request for more funds as required,” Mr. Gupta said.

Nine KRCL-operated stations have solar panels and two more will be added to the list.

To increase revenue, KRCL has plans for an integrated logistic solution for larger logistic players by providing them end-to-end logistic solutions.

“Instead of asking companies to bring their freight to the railway station, we plan on having this transported by us till the railway station and then to the designated point of delivery. We have also started construction of sidings for Mangalore Refinery and Petrochemicals Ltd (MRPL). We will also provide land owned by us at Balli station in Goa to the Container Corporation of India Ltd (CONCOR) for a container freight station. We have already signed an MoU with CONCOR.”


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Printable version | Jun 23, 2021 12:01:33 AM | https://www.thehindu.com/news/cities/mumbai/Hike-in-pay-fuel-prices-lower-Konkan-Railway-profits/article17129113.ece

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