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Introduction
Konkan Railway, the 741-kilometre line connects Maharashtra, Goa, Karnataka and Kerala. The completion of the Konkan Railway was a tryst with destiny for many people in the Konkan region, redeemed in the 50th year of the nations Independence.
The first train flagged off on the completed track was on January 26, 1998, Republic Day (50th year of the nations Independence).
First cursory survey was completed upto Mangalore between 1971 and 1973, and an in-depth survey from Dasgaon to Ratnagiri between 1975 and 1977. In 1989, when Mr. George Fernandes became Railway Minister, the dream was pursued with greater vigour. On the first day of his taking over as Railway Minister, he told staff and officers at the Rail Bhavan that he had two projects in mind - Bagaha-Chittauni in Bihar, and Konkan Railway. Dr. Bimal Jalan, then Economic Adviser in the Finance Ministry, suggested the idea of a Corporation with the Centre and beneficiary states taking up the project and raising money.
By the time the Railway Budget was presented by Mr. George Fernandes in February 1990, the scheme was ready and included in the Budget.
Mr. Sreedharan was earmarked to head the Corporation as Chairman and Managing Director. On July 19, 1990, Konkan railway Corporation Limited (KRCL) was incorporated as a public limited company under the Companies Act, 1956. The entire project length of 760 Km. was divided in seven sectors, each approximately 100 Km. long, headed by a Chief Engineer.
Extensive use of IT
Using Innovative Information Management System Automating the Station platforms lighting with Train-movements Completely computerized Traffic Accounts, hence staff negligible in Traffic Accounts.
Accumulated losses
Net worth(Paid up Capital Accumulated losses) UNSECURED: MOR loan -Rs.2731.40Cr. (Int brg. Rs.1686 Cr Int free Rs. 1045 Cr) Interest Accrued -Rs. 491.04Cr. (Provision @ 7% - At par with dividend payable to General Rev) SECURED: Bonds Total Debt (MOR AND BONDS)
3262
(-) 2459
3222.44
2458.50 5680.95
Turnaround at KRCL
High interest rate loans were replaced by loans of lower interest rates. (Rates were now almost half!) Loan of about Rs. 2700 Crores from Indian railways was converted into NonCumulative Preference Shares. Freight Traffic picked up significantly as a number of industrial projects related to mining and manufacturing came up along the Konkan railway Pick up in the RORO(Roll on Roll Off) service along with freight Commissioning of new lines has also helped in the pickup in the passenger and freight traffic Freight and Passenger revenues have increased 75% over the last 6 years Abolition of safety surcharge has improved the marketability of Konkan railway
Revenue Streams
Regular operations from the railway business Undertaking execution of additional projects from the Indian Railways(Udhampur Srinagar Baramulla Rail Link (USBRL) Project) and other Infra companies (Balaji Infra projects ltd.) Construction of Rail Logistic Networks for industries located along Konkan Railways Income from deposits held and the loans advanced
Up to 31st March 07
2552.40
375.34
2927.74
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3. MOR will continue to provide financial assistance to KRCL for full interest servicing and 50% of the redemption of the Bonds for the next three financial years, i.e. from 2007-08 to 2009-10. This will also be converted into non cumulative preferential shares redeemable after 15 years from the date of payment. (In Rs. cr.) Period Redemption Interest Total
2008-09
215.00 324.00 20.00
2009-10
227.00 389.00 25.00
2010-11
234.00 467.00 30.00
2011-12
250.00 500.00 35.00
Total Income
Operating surplus (PBDIT)
559.00
172.00
641.00
194.00
731.00
217.00
785.00
215.00
Finance Charges
Total Expenditure Net Profit/( Loss) (Train Operations) Project Surplus Depreciation Net Profit/(Loss) Total Debt Net worth Debt/Equity ratio
180.81
648.81 (89.81) 70.00 81.00 (21.31) 2233.50 1023.98 0.53
171.70
699.70 (58.70) 85.00 81.00 24.55 1973.50 1338.53 0.44
142.76
737.76 (6.76) 100.00 81.00 91.24 1910.00 1429.77
18 0.42
127.79
778.79 6.21 125.00 81.00 128.96 1640.00 1558.73 0.36
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THANK YOU
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