The State government has decided to put in additional equity of Rs.216 crore for the expansion of the Konkan Railway.
It has also agreed to the proposal to increase the present authorised share capital of the Konkan Railway Corporation (KRC) from Rs.4,885.98 crore to Rs.8,485.98 crore.
The Rs.216-crore sanctioned by the Cabinet recently represents the State’s share of the additional equity infusion of Rs.3,600 crore for increasing the authorised capital.
The government has also given in-principle sanction for the convening of the share holders’ meeting to decide on this.
Konkan Railway Corporation has decided to go in for doubling and electrification to increase rail traffic efficiency all along the Konkan route.
According to information given by the Konkan Railway Corporation Managing Director to the State government, the approximate cost of the entire route would come to Rs.12,000 crore.
In order to take up this project, the KRC has requested the Centre and the four participating States, including Kerala, to share the project cost to the extent of a minimum of 30 per cent or Rs.3,600 crore.
Kerala has 6 per cent holding in the company and the Rs. 216 crore represents this amount.
The amount is the State’s share of additional equity infusion for increasing authorised capital