Konkan Railway Merger With Indian Railways Stuck Over States’ Equity Demands And Ownership Transfer
Mumbai: The proposed merger of Konkan Railway Corporation Ltd (KRCL) with Indian Railways remains uncertain as the Railway Ministry has made it clear that integration can happen only after the corporation becomes 100 per cent owned by the Centre. The status of the participating states' equity has emerged as the key hurdle, with Goa agreeing to transfer its stake, Karnataka seeking an exit…
Mumbai: The proposed merger of Konkan Railway Corporation Ltd (KRCL) with Indian Railways is facing obstacles, primarily due to differing states' demands over equity transfer and ownership transfer. The Railway Ministry has stated that integration can occur only if KRCL becomes 100% owned by the Centre. Goa has agreed to transfer its stake, while Karnataka is seeking an exit mechanism and Maharashtra is demanding reimbursement of its share capital contribution.
The Ministry's response to a Lok Sabha query revealed varying positions among the shareholder states. While Goa has accepted the transfer, Maharashtra and Karnataka are yet to resolve their demands. The ministry emphasized that any merger or integration would require KRCL to become entirely owned by the Central Government, complying with the existing Shareholding Agreement.
The Korak Railway line, spanning 739 km between Roha in Maharashtra and Thokur in Karnataka, could see benefits from a merger, including easier access to funding and project approvals, as well as simplifying capacity expansion, safety upgrades, and asset renewal.
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