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CABINET APPROVES FINANCIAL RESTRUCTURING OF KONKAN RAILWAY: IMPROVES NET WORTH OF THE CORPORATION

In a move that bodes well for the Konkan Railway Corporation, the Cabinet Committee Economic Affairs has approved the corporation’s proposal on financial restructuring. This has given it the much needed boost for the debt liabilities. Konkan Railway is the only railway project in the country to be executed on BOT basis. During the phase of construction, the corporation had resorted to commercial borrowings on high interest rate and was not exempted from payment of dividends. Giving it the much needed hand, the corporation being a public utility project was extended loans by the ministry of Railway’s to meet its debt liabilities. The financial assistance will be restricted to the next three years. With the restructuring of finances, the Corporation would be able to meet its liabilities in future provided the traffic business plan materializes. With this now, Konkan Railway will also able to bid for big infrastructure projects. Bureau report NMTV

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