Konkan Railway Corp Accused Of Falsifying Figures

The NGO says Sebi is being duped - just before a planned Rs. 150 crore debenture issue and Rs 200 crore external commercial borrowing - by the KRC's latest project-related data.

Project cost has escalated sharply in the past three years alone, a rise of 54.7 per cent from Rs 1,800 crore to Rs 2,784 crore. The land acquired, earthwork, costing, number of major bridges and tunnels - figures that should remain constant through the construction of the project have all changed in the past three years, since the November 1993 bonds issue. Crisil had then rated the issue BBB while now it is rated A.

 

The Foundation has pointed out:

* Although the Konkan Railway Corporation has claimed to have increased its land acquisition in percentage terms from 99 to 100 per cent, the actual land area has - according to the latest figures - actually decreased from 5,072 hectare to 4,850 hectares. In 1993 the KRC's land use estimate was 5,285 hectares. As late as this monsoon, the Corporation was issuing acquisition notices in Goa.

* Earthwork has increased by 6.03 million cubic metres. The figure will probably rise, according to the NGO, given the relentless sinking to embankments across low-lying coastal tidal flats.

* The number of major bridges, tunnels and minor bridges have all increased in the past three years. Had there been a detailed survey of the 760 km route, as the Justice G J Oza Commission was told in August 1993, how could these major construction requirements have been overlooked, the NGO asks. The number of minor bridges along the route has increased by 214, from 1,605 to 1,819; that of tunnels has increased by 17 from 75 to 92. The number of major bridges has also increased by 96, from 143 to 179. How could the KRC possibly locate an additional 36 major rivers in the past three years, asks Claude Alvares of the Foundation.

* Track linking has increased by 41 km from 760 km in November 1993 to 801 km now.

The KRC has said that the weighted average of the project progress makes it 95.71 per cent complete. However, it needs to raise an additional Rs 350 crore - Rs 150 crore by way of a debenture issue and Rs 200 crore through external commercial borrowing - to complete the project and to service its debt.

In 1988 the Southern Railway estimated the cost of the Konkan Railway at Rs 861.9 crore for a 837 km route. Less than two years later, after major realignment, the KRC estimate stood at Rs 1,043 crore for 760 km./right.asp"-->