Konkan Railway’s Rs10,000-cr track doubling project to start next week
04 Nov 2015
On 8 November, Konkan Railway will kickstart work on a Rs10,000-cr project for doubling of tracks and subsequent electrification of the tracks, a senior official said on Tuesday.
The electrification project will cost another Rs750 crore.
"All paper work, including financing modalities, have been completed and foundation-laying ceremony would take place on 8 November in Kolad in the presence of railway minister Suresh Prabhu," Konkan Railway CMD Bhanu P Tayal said.
Doubling of the track will help Konkan Railway increase its passenger and cargo handling capacity, improve profitability and serve the people better, Tayal said.
Tayal said since the doubling work is unlikely to face land acquisition problems, the project could be completed in the next five years.
Konkan Rail extends from Roha in Raigad district adjoining Mumbai to Mangaluru in neighbouring Karnataka.
"Doubling of the tracks along with the electrification would start from 8 November. The process of awarding the tender would begin soon. LIC has come forward to finance us and offered loan of Rs250 crore at cheaper rates,'' he said, adding that some other major finance companies have also shown their interests in financing the project.
Alternatively, he said, Konkan Railway, with an AA+ credit rating, can also opt for a bond issue.
"Konkan Railway has got excellent rating of 'AA+' and hence lot of financing companies are likely to come forward to extend the loan. If need be, then we can come up with bonds also," he said.
The CMD further said Konkan Railway in 2014-15 fiscal achieved a net profit of Rs39.39 crore as against Rs13.11 crore in corresponding period of the previous fiscal.
The rail network that passes over 2,000 bridges and through 91 tunnels on a mountainous terrain, is considered an engineering marvel. It was constructed by KRCL, which also operates it.
