Maharashtra gives consent for Konkan Railway’s merger with Indian Railways

“I am pleased to convey the Maharashtra government’s consent for the merger of Konkan Railway Corporation Ltd with Indian Railways, subject to the reimbursement of Rs 396.5424 crore to Maharashtra, which was previously remitted to the corporation as the state’s share. Additionally, the name ‘Konkan Railway’ be retained for the railway lines transferred to Indian Railways post-merger, in recognition of its significant regional legacy,” Fadnavis said in the letter.

“I request you to kindly instruct the Railway Board to initiate the process for the merger,” the letter stated.

The development is considered as significant in view of the upcoming civic polls in Konkan. The people of Konkan have been demanding the merger for several years.

The KRCL, established in the early 1990s, is a joint venture between the Ministry of Railways and the governments of Maharashtra, Goa, Karnataka, and Kerala. The original equity pattern comprised the Centre with 51% shareholding, followed by Maharashtra (22%), Karnataka (15%), and Goa and Kerala (6% each). The last revision of its capital structure took place in a board meeting held on November 9, 2011.

“The corporation, by its nature, has limited access to capital and funding. As a result, several important works like doubling of lines and upgrading infrastructure have been stalled or delayed. A merger with the Indian Railways would allow it to get central government funding and ensure faster implementation,” a senior Maharashtra government official said.

Headquartered in Navi Mumbai, KRCL was set up to construct and operate a railway line through the difficult terrain of the Western Ghats, connecting Roha in Maharashtra to Mangalore in Kerala. The 741-km route, completed by the corporation, now serves as a crucial link for both regional and national train services, with several zonal railways also operating on the line.

Fadnavis acknowledged that the corporation’s limited income sources have hampered its ability to scale up operations and meet rising passenger and freight demand. With Karnataka, Kerala, and Goa already having submitted their written consents, Maharashtra’s agreement paves the way for the Railway Board to initiate the formal process of merger.