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India’s Konkan Railway Corporation Limited (KRCL) is set to merge with Indian Railways, following approval from all shareholder states.
1. Background of Konkan Railway
• Established in 1990 as a special purpose vehicle under the Ministry of Railways. • The KRCL was formed as a joint venture in which the Government of India held a 51% stake, Maharashtra 22%, Karnataka 15%, and Goa and Kerala 6% each.
2. Reasons for the Merger
• Financial Constraints: KRCL has struggled with limited revenue sources, making infrastructure upgrades difficult.
• Infrastructure Expansion:
The merger will allow KRCL to access ‘Indian Railways’ investment pool, enabling network expansion and service improvements.
3. Maharashtra’s Approval and Conditions
4. Expected Benefits
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