Chowta welcomes Karnataka govt. decision on merger of Konkan Railway with Indian Railways

Chowta welcomes Karnataka govt. decision on merger of Konkan Railway with Indian Railways

Mangalore Today News Network

Mangaluru, December 14, 2024: Dakshina Kannada MP Captain Brijesh Chowta on Friday, said he was happy to learn that the Karnataka government was in favour of the merger of Konkan Railway Corporation Ltd., (KRCL) with the Indian Railways.

The MP told The Hindu that he had been pursuing the merger with the Railway Ministry constantly as it was a long-pending demand of patrons in the coastal region. He thanked MLAs A. Kiran Kumar Kodgi (Kundapura) and V. Sunil Kumar (Karkala) for raising the issue on the floor of the Legislative Assembly at Belagavi through a calling attention motion on Thursday and enabling the discussion on the matter.

Responding to the issue raised by the MLAs on Thursday on behalf of Minister for Major Industries and Infrastructure Development M.B. Patil, Minister for Energy K.J. George stated that State government was in complete agreement over the merger of KRCL with the Indian Railways. The government has been corresponding with those concerned in this regard.

Responding to Mr. Kodgi and Mr. Kumar, the Minister said KRCL should have been merged with the IR much earlier; however it did not happen as the corporation was under loss. Because of the bad financial health of the corporation, the Railway network in Karnataka coast did not witness any development, Mr. George noted. The government was exploring the best exit option from KRCL in view of its investment of ₹270 crore in the venture and talks were on in this regard.

The Minister said upon merger, the region could get new trains and see improvement in rail infrastructure. Rural Development and Panchayat Raj Minister Priyank Kharge said the government was expecting response from KRCL with regard to the exit option.

₹9,158 crore needed for development

In its written response to the MLAs, Mr. Patil said the government has 11.62% equity shares in KRCL as of now. KRCL has said Karnataka needs to provide ₹9,158 crore for undertaking developmental projects in the next 15 years. If the government was unable to invest the sum, it may consider relinquishing its shares to IR, KRCL has said.

Mr. Patil said the government was awaiting the KRCL proposal on the best exit option.

Courtesy: The Hindu