The Railway Ministry has initiated the process of merging the Konkan Railway Corporation. The state government of Goa has agreed to transfer its shares to the Railway Ministry to facilitate the merger; however, consent from the states of Maharashtra, Karnataka, and Kerala is still pending.
In response to a question posed by MP Kota Srinivas Pujari in the Lok Sabha, the Railway Ministry provided details about the merger of Konkan Railway Corporation Limited. Currently, the Railway Ministry holds shares valued at Rs 1,256.1277 crore, accounting for 59.18 percent of the corporation. After the conversion of shares, which totals Rs 423 crore, the value of the Railway Ministry's shares will rise to Rs 1,679.8277 crore, representing 65.97 percent of the total shares.
The Maharashtra government possesses shares worth Rs 396.5425 crore, which constitutes 18.68 percent of the corporation. It does not hold any converted shares. Post-conversion, its share will remain the same in value but will represent a reduced percentage of 15.57 percent.
The Karnataka government shares are valued at Rs 270.3699 crore, equating to 12.74 percent, and it will fall to 10.62 percent after conversion. The Kerala government holds shares worth Rs 108.1481 crore, which is 5.10 percent. Goa holds a 4.30 percent stake in the corporation, with an existing share capital of Rs 91.2980 crore. Goa has yet to pay Rs 16.85 crore towards the rights issue of the third rights.
The corporation's total share capital stands at Rs 2,122.4862 crore, with the value of converted shares at Rs 423.70 crore. After conversion, the total value of the shares will increase to Rs 2,546.1862 crore. Additionally, the shareholding of the Ministry of Railways will further increase after the conversion of non-cumulative preference shares worth Rs 4,079.51 crore, expected on March 30, 2029.
The Railway Ministry has noted that the infrastructure of Konkan Railway is over 25 years old and requires significant repairs and capital investment. This investment is essential for projects such as doubling the tracks, repairing tunnels, and enhancing traffic safety.
To address these infrastructure needs, the Railway Ministry has proposed two options to all state governments: either contribute their share towards the capital expenditure of Konkan Railway or proceed with a direct merger of Konkan Railway into the Ministry of Railways through a share transfer.