LIABILITY OF INDIAN RAILWAYS
The Ministry of Railways
has extended financial support by way of loans to the Konkan Railway
Corporation Ltd. (KRCL). Till March 31, 2002, the Ministry had
lent Rs. 1378 crores on this account. Additional demand for Rs.
543 crores in 2002-2003 was also met.
Besides, KRCL
would need an additional amount of Rs. 3000 crores for redeeming
and servicing its debt over the next seven fiscal years.
The KRCL has
been set up with an investment of Rs. 3500 crores with equity
participation among Indian Railways, Governments of Maharashta,
Karnataka, Kerala and Goa. Out of this, about Rs. 2500 crores
was borrowed from market on the strength of letters of comfort
issued by the Ministry of Railways.
After commissioning,
the KRCL has been able to generte revenue just sufficient to cover
its operating expenses. It has, however, not been able to service
the interest and debt liability.
The Railways
are also carrying a liability of Rs. 2823 crores towards General
Exchequer on account of dividend deferred in 2000-2001 and 2001-2002.
Besides, it is carrying social burden of over Rs. 2000 crores
for running train services in backward and uneconomic lines.
