The Hindu Business Line : Konkan Railway merger with Indian Railways unlikely

Panaji, June 21 Putting to rest continued speculation about the merger of Konkan Railway Corporation Ltd (KRCL), the Managing Director of KRCL, Mr Anurag Mishra, ruled out its merger with the Indian Railways.

Talking to presspersons informally here on Friday, Mr Mishra said KRCL had convinced the Railways that the merger would have no tangible benefits to either. According to the original agreement between the Railways and KRCL, the latter was supposed to be merged after completion of 15 years or as soon as the debt liabilities of the corporation were met. But the view that the corporation should continue in its present status has prevailed.

Sky bus project

“I do not see any chances of KRCL merging in the Indian Railways,” Mr Mishra said in reply to a question. Regarding the Sky Bus project, Mr Mishra said the safety certificate for the project was awaited and reiterated that it had recently floated global tenders to select agencies to help it identify business partners for commercial opstimisation of the sky bus technology. The tender would be opened shortly. The corporation has invested Rs 50 crore so far on the sky-station project station set up at Margao in South Goa.

Coming into profits

Speaking about the financial aspects of the corporation on completion of 10 years, Mr Mishra said it was all set to turn the corner and come into profits this fiscal after its losses came down to Rs 150 crore last financial year. It has also crossed the figure of Rs 500 crore in total annual earnings for the first time in its history. KRCL has achieved an operating ratio of 72.6 per cent, which is an improvement of over 13 per cent compared to the immediate previous year, said Mr Mishra.

It is hoping to tap potential for increased revenue streams as a result of growing port activities in the Konkan region of Maharashtra and is hopeful of generating Rs 500 crore from freight traffic and about Rs 250 crore from passenger stream by 2010.

He disclosed that freight earnings have increased by 90 per cent in just two months of the current financial year as compared to the same period the preceding year, and freight earnings of Rs 32 crore during this May were the highest ever by the corporation and an improvement of 94 per cent over the corresponding period last year.

Until last three years ago, lack of significant freight traffic on the KRCL route affected its financial growth, admitted Mr Mishra.

However, since 2005-06, it has brought about a turnaround in its finances, as a result of which the freight earnings surpassed the earnings from coaching for the first time in 2006-07 and negative coaching to freight ratio was reversed. The freight earnings increased by 78 per cent in 2005-06, by 38 per cent in 2006-07 and by 30 per cent in 2007-08. The operating surplus increased by 74 per cent in 2005-06 and is continuing to increase by 25-25 per cent a year, the Managing Director said and added that the total earnings are also increasing by a steady 20-25 per cent.

Staffing

Speaking about staff matters, he said the Konkan Railway employees would now get provident fund and pension benefits on the lines of Indian Railway scheme following a recent High Court ruling.

Mr Mishra also announced a change in the recruitment policy for the land losers — by permitting two persons to be recruited in KRCL from same land loser family instead of one as under the earlier policy; and also by raising the upper age limit for recruitment of land losers in KRCL to 35 years for general candidates and to 40 years for SC\ST candidates.

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