The Karnataka Government on December 17 said though it is willing to relinquish its stake in Konkan Railway Corporation Limited, a joint venture of Railway Ministry and other four State governments, to pave the way for its merger with Indian Railways, the Railway Ministry is yet to offer a better exit option.
Responding to a calling attention motion by Kundapura MLA A. Kiran Kumar Kodgi in the Legislative Assembly on behalf of Infrastructure Development Minister M. B. Patil in Belagavi, Revenue Minister Krishna Byre Gowda said Karnataka holds about 11% share in KRCL. At the present rate, the value of shares is about ₹270 crore.
Revenue Minister Krishna Byre Gowda responds to a calling attention motion by Kundapura MLA A. Kiran Kumar Kodgi on behalf of Infrastructure Development Minister M.B. Patil in the Legislative Assembly in Belagavi, on December 17, 2025.
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The government of Karnataka had asked the Ministry to offer a better exit option, but so far there was no response, Mr. Gowda said. “Let the Ministry give an offer, maybe full repayment, partial repayment, or no repayment. The government is open on the issue, and would take a suitable decision even if the finance department rejects ‘no repayment’ proposal,” the Minister said.
Merger inevitable
Raising a calling attention motion, Kundapura MLA A. Kiran Kumar Kodgi seeks to know Karnataka Government’s stand on relinquishing its stake in Konkan Railway Corporation Limited, in the Legislative Assembly in Belagavi, on December 17, 2025.
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Raising the issue earlier, Mr. Kodgi said the State Government appears not to have proceeded on the issue. “The same reply, given during the last session, is provided again,” he said stressing on the need for merger of KRCL with the Indian Railways. With no funds, KRCL network has been the same as it was three decades ago following which economic development in coastal Karnataka was getting affected, he said.
Intervening, Karkala MLA V. Sunil Kumar urged Speaker U. T. Khader to convene a meeting of all the stakeholders, including officials from the Railway Ministry to sort out the issue. Mr. Khader agreed to the same.
States told to either fund capital expenditure of KRCL, or relinquish shares
During the winter session of Parliament in November last, Railway Minister Ashwini Vaishnaw had informed the Lok Sabha that the Ministry had asked the four share-holding States either to fund KRCL’s capital expenditure or relinquish their shares. Only Goa has agreed to relinquish its share, he had said.
On March 19, 2025, Karnataka Infrastructure Development Secretary N. Manjula had written to the Railway Board Chairperson that instead of the Ministry’s demand to fund ₹9,158 crore capital expenditure, Karnataka had sought a better exit option. Despite writing letters in May, September and December 2024 seeking concrete proposals for a better exit option, the Railway Ministry did not respond, she said, urging the Ministry to send one.
Published – December 18, 2025 01:06 pm IST
