Konkan Railway Poised for Turnaround.

Recent statements from the Centre and the Karnataka government regarding the proposed merger of Konkan Railway Corporation Ltd (KRCL) with Indian Railways (IR) have generated optimism among trade bodies, industry representatives, and local legislators in coastal Karnataka. The move is expected to lead to significant improvements in the region’s railway infrastructure.

KRCL, established in 1990, is a joint venture owned by the railway ministry and the governments of Maharashtra, Goa, Karnataka, and Kerala. However, the central government has indicated that KRCL's aging infrastructure, which has been in place for more than 25 years, requires a major overhaul to meet modern safety standards.

While KRCL has already doubled the 46.89 km Roha-Veer section to enhance line capacity, the remaining 700 km stretch will require substantial investments. To address this, the railway ministry has urged the shareholder states to contribute proportionately to KRCL's capital expenditure or relinquish their shares in favor of the ministry. Railway Minister Ashwini Vaishnaw recently informed the Lok Sabha that Goa has expressed willingness to surrender its share.

In response to questions from coastal Karnataka legislators, the state government has expressed full support for the proposed merger. The government also highlighted that due to KRCL’s financial challenges, the region’s railway network has seen little development. It added that discussions are ongoing to explore the best exit strategy from KRCL.

Industry leaders, including GG Mohandas Prabhu, a member of the Konkan Railway Users’ Consultative Committee and former president of the Kanara Chamber of Commerce and Industry, believe that the merger will resolve funding issues and boost the development of Konkan Railway. Prabhu emphasized that the merger would improve passenger amenities, upgrade stations, and reduce costs for goods transportation.

He urged local elected representatives to actively pursue the merger and work towards the overall development of the region’s railway infrastructure.

HBL