LIC buys Konkan Railway bonds worth Rs250 cr
23 Mar 2016
Konkan Railway Corporation Ltd's plan for doubling tracks and electrification of the entire route got a fillip with Life Insurance Corporation of India (LIC) subscribing to Rs250-crore of KRCL bonds. KRCL is undertaking a major expansion programme, involving expenditure of over Rs10,000 crore.
This will enable KRCL to kick start various projects, including electrification of Konkan Railway route, construction of new halt stations and passenger terminals, doubling of lines, creation of additional loop lines and stations for augmentation of section capacity.
KRCL, which is entrusted with construction and operation of railway line along the west coast from Roha to Thokur, has drawn up ambitious projects as part of its silver jubilee year for betterment of the region.
KRCL would take up the doubling project in phases. To begin with, it would start with Roha-Veer (47 km- Rs295 crore), Sindhudurg-Sawantwadi Road (31 km-Rs250 crore) and Thokur (near Mangaluru)-Byndoor (112 km-Rs1,000 crore) sections.
The overall cost of doubling would be about Rs10,000 crore, while electrification would cost another Rs720 crore.
Apart from the union government, four coastal states have equity participation in KRCL.
On the eve of the 25th Foundation Day celebration of KRCL held on 15 October 2015, union minister of railways, Suresh Prabhu, has announced new projects.
KRCL is also expanding its reach by participating in projects which are meant for port connectivity. These include Jaigad port connectivity project or to provide rail connectivity to hinterlands in the Chiplun-Karad rail link.
Sanjay Gupta, CMD, KRCL stated that financial support received from LIC will go a long way towards assisting in development of capacity augmentation and passenger friendly projects.
