Funds Shortage To Delay Konkan Rly Parallel Line Project

The cash-strapped KRC is unlikely to go in for the second line immediately. Its immediate task will be to generate business that will be enough to repay the large amounts it has borrowed in the domestic as well as foreign markets.

Based on the expected goods and passenger traffic flow, we decided to set up the entire project on single track, said KRC director (projects) B Rajaram.

As a long-term measure, KRC has acquired land along its entire 760-km west coast line taking into consideration the requirement for a two-track railway for a larger traffic flow.

The railway stations along the KRC project route have been built considering the requirement for both single- and double-track rail line.

 

The delay in completion of the KRC project has already cost the corporation dearly in terms of cost escalation and loss of business. From the initial cost of Rs 1,800 crore, the outlay of the project has shot up to Rs 2,700 crore, a whopping Rs 900 crore cost overrun.

As the KRC gets down to business, it is planning diversion of rail traffic on the Konkan railway that will substantially reduce the distance and time for both passenger and goods trains. To begin with, KRC plans to divert four passenger express trains: Rajkot Express, Cochin Express, Gandhidham Express and Netravati Express.

Three foodgrain-carrying trains from Punjab to the South will use KRC rail line everyday. Besides, it will service the goods trains carrying cement, fertilisers and steel. A large number of oil tanker trains too are expected to use the shorter route of KRC.

As the trains plying the KRC route will lead to substantial savings due to shorter distance and faster travel, KRC will charge inflated distance of 40 per cent for passenger trains and 50 per cent in the case of goods trains. KRC has already received the approval of the railway ministry to charge the inflated distance for trains plying on the KRC railway line. This will bring in additional revenue to KRC.

In the first two years of operation, KRC will have negative cash flow and will break even in the third year.

It will come on the profit track only in the fourth year, according to Rajaram.

The two sides of the project

At least 1,000 trucks and over 200 passenger buses will get displaced when the Konkan Railway project gets on track in January 1997.

On the flip side, the railway, with a track line of 760 km, is expected to save fossil fuel worth over Rs 300 crore, besides reducing pollution and congestion on the roads.

The Konkan Railway project has been under fire from environmentalists, especially those in Goa, and has paid a heavy price. The work suspension in Goa alone cost the Konkan Railway Corporation Rs 100 crore in terms of price escalation.

KRC officials said the corporation had to invest Rs 30 crore in Goa to take care of the environment, following the recommendation to this effect by the Justice Oze Committee.