Konkan Railway Will Merge With Indian Railways To Avoid Losses


Mohul Ghosh

Mohul Ghosh

May 25, 2025


In a significant move, the Maharashtra government has officially agreed to merge the Konkan Railway Corporation Limited (KRCL) with Indian Railways. With Goa, Karnataka, and Kerala having already approved the merger, Maharashtra’s nod marks the final clearance required to fully integrate the 741-km scenic coastal route into the broader national railway system.

Konkan Railway Will Merge With Indian Railways To Avoid Losses

What Is the Konkan Railway?

Formed in 1990 as a special purpose vehicle under the Ministry of Railways, the Konkan Railway was tasked with constructing and operating railway lines through the challenging terrain of the Western Ghats. Officially operational since January 1998, the route connects Roha in Maharashtra to Mangaluru in Karnataka, passing through Goa and touching coastal Kerala. It has served as a vital corridor for both passengers and freight, dramatically cutting travel time and boosting economic activity in the region.

The KRCL was a joint venture, with the Government of India holding a 51% stake, followed by Maharashtra (22%), Karnataka (15%), and Goa and Kerala (6% each). Despite its operational success, KRCL remained a separate entity from Indian Railways.

Why Merge Now?

Financial distress has plagued KRCL in recent years, with rising infrastructure demands and stagnant revenue streams making the standalone model unsustainable. Maharashtra Chief Minister Devendra Fadnavis formally conveyed the state’s approval via a letter to Railway Minister Ashwini Vaishnaw, citing the merger as a strategic move to leverage Indian Railways’ vast investment capabilities.

However, Maharashtra’s approval came with two conditions:

  1. The name “Konkan Railway” must be retained post-merger.
  2. Indian Railways must reimburse Maharashtra ₹394 crore for its initial investment.

The Centre has reportedly agreed to both conditions.

What Does This Mean for Passengers?

Once the Railway Board finalizes the process, passengers can expect a host of improvements:

  • Enhanced connectivity with the national network.
  • Upgraded infrastructure, including better station amenities and rolling stock.
  • Increased train frequency and improved service reliability.
  • Unified ticket booking through Indian Railways’ existing platforms.
  • Standardized grievance redressal and customer service.

Though the administrative and legal integration will take time—restructuring hierarchies, contracts, and operational zones—the long-term benefits are expected to be substantial for the traveling public, tourism, and local economies along the Konkan coast.


Mohul Ghosh
Mohul Ghosh
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