Goa government to contribute Rs 18 crore towards Konkan Railway project

Panaji: Goa government, which owns a 6% stake in Konkan Railway Corporation Limited (KRCL), has reportedly agreed to contribute an amount of Rs 18.60 crore to enable the corporation to take up track doubling and expansion in Goa. The funds will be contributed through an issue of shares by Konkan Railway to the state government in proportion to its 6% stake.
Following the approval from the Union ministry of railways, KRCL decided to increase its authorized equity share capital in order to raise funds for various capital expenditure projects, including doubling of tracks, electrification and upgradation of platforms. The clearance to increase the authorized equity share capital to Rs 4,000 crore from Rs 806 crore was given in December 2016.
The difference of Rs 3,194 crore will be contributed by the Union ministry of railways and the four states of Maharashtra, Karnataka, Goa and Kerala, based on their stake in Konkan Railway.
"This figure has enabled us to take equity from the government and raise our borrowing. We are going to have a rights issue and since the state of Goa is one of the shareholders, it will contribute too. I have already met the chief minister and the chief secretary and they have assured me that they will fund as 6% of Konkan Railway is owned by Goa," chairman and managing director Sanjay Gupta said.
In 2016-17, net profit of KRCL was Rs 62 crore but being largely passenger driven, Jover 60% of the revenues came from passenger movement. "We have a very small operating margin. A large part of it goes to debt repayment. First priority is safety and we have to spend a large part of our money to ensure safety of the track," Gupta said.
In 2016-17, net profit of KRCL was Rs 62 crore but being largely passenger driven, over 60% of the revenues came from passenger movement

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