Date of Post: 09 July, 2018
New Delhi: SDCL (Sagarmala Development Company Ltd.) has decided to infuse Rs 125 crore in SPV (Special Purpose Vehicle) Krishnapatnam Railway Company Ltd (KRCL), formed to provide rail connectivity between Krishnapatnam Port and Obulavaripalli in Andhra Pradesh. KRCL is a Joint Venture (JV) of Ministry of Railways, in which Rail Vikas Nigam (RVNL) has equity contribution.
- The SDCL Board has resolved,”The in-principle approval of the Board of Directors be and is hereby accorded for infusion of up to Rs 125 crore in the form of equity in Krishnapatnam Rail Company Ltd pending completion of further financial and legal due diligence.”
- The total cost of the rail connectivity project between Krishnapatnam Port and Obulavaripalli is estimated to be at Rs 2,198.50 crore, of which Rs 1,458.9 crore will be met through debt, as per the financial information memorandum by SBI Capital Markets, which was roped in for the equity investment.
- As per a related document,”The existing equity in the project is Rs 270 crore with additional Rs 125 crore envisaged to be infused by SDCL, Rs 187.5 crore of the equity requirement to be met by existing shareholders or by RVNL and the remaining Rs 159.1 crore through internal accruals.”
- The existing shareholding pattern of KRCL includes 30% equity by RVNL and KPCL each, 12.96% by Andhra Pradesh Government, 14.82% by NMDC and 12.22% by Brahmani Industries.
Image Credit: Krishnapatnam Port