K-RIDE

Report
K-RIDE
In September 2000, the Government of Karnataka (GoK) and Ministry of Railways
(MoR) signed an MoU to set up a Joint Venture Company called “ Rail Infrastructure
Development Company ( Karnataka) Limited – K-RIDE”.
Objective : To expedite development and implementation of 4 identified Railway Projects
in Karnataka viz:
1) Hubli – Ankola New Line
2) Hospet – Guntakal Doubling
3) Sholapur – Gadag Gauge Conversion
4) Hassan – Mangalore Gauge Conversion
Nov’ 20, 2000 : Registered as a Public Limited Company under Companies Act,1956.
Oct’ 22, 2001 : Government Order issued vide IDD Letter No. 10 NSW 2001.
This SPV with financial participation by the MoR, GoK, FIs/Banks, etc. was set up to
meet the objective of funding certain identified projects in Karnataka, particularly those
with potential for attracting private investment.
Nov’2002 : Shareholders’ Agreement Signed.
Authorized Capital
Rs. 5.00 Crores
Share Capital Issued
Rs. 5.00 Lakhs
Share Application Money
Held
Rs. 4.95 Crores
Pattern of Contribution
GoK
26%
Rs. 1.3 Crores
MoR
26%
Rs. 1.3 Crores
iDeCK
48%
Rs. 2.4 Crores
Investment Done : Rs. 2.00 Crore in HMRDC
Board of Directors
Sl.
No
.
Name
Designation
1.
Dr. Rajkumar Khatri, IAS
Secretary to GoK, IDD & Chairman/K-RIDE
2.
Mr. Niraj Kumar
Executive Director/ Perspective Planning,
Railway Board/MoR
3.
Mr. B.N. Mohapatra
Executive Director/ Finance – Expenditure - 1,
Railway Board, MoR
4.
Mr. Vinay Singh, IRSE
Executive Director/ Works, Railway Board,
MoR
5.
Mr. Randeep D
Deputy Secretary to GoK, FD (B & R)
6.
Mr. Anil B. Shenoy
CFO/CS, iDeCK
Functional characteristics
 As per MOU, K-RIDE was to fund all the projects under its own name,
mobilize equity from strategic investors and debt funds from financial
institutions
 As per Government Order role of K-RIDE was changed from an
implementing agency of the projects to that of a project Development
Company.
 Each project to be developed separately as an independent SPV.
 Each project SPV would mobilize finances by a mix of
equity/subordinate debt contributions from K-RIDE and strategic partners/
investors and debt from banks, financial institutions and the capital market.
 MoR and GoK might also participate directly in the equity.
 SPVs would enter into contractual agreements with MoR for
construction, operations and maintenance.
 MoR and GoK might decide to give construction or maintenance or
operations to another agency or to the SPV itself if it would result in
improved performance or substantial savings.
Mandate Given and Status of Projects:
As per the Shareholders’ Agreement four on-going sanctioned
projects of the Indian Railways were identified for implementation
by K-RIDE. The present status is as under:
Hubli – Ankola new line
The line could not be taken up for
development as approval from MoEF is still
awaited.
Sholapur – Gadag
Gauge Conversion
No SPV was formed to take up this project as
it was not found viable enough. Instead GoK
and MoR agreed to share the balance cost as
on 01.04.2002. Project Commissioned in Dec’
2008.
Hassan – Mangalore
Gauge Conversion
A separate SPV was set up after CCEA
clearance to complete this project. Project
commissioned on 02.05.2006.
Guntakal – Hospet
Doubling
Funding of this project was taken over by
RVNL a PSU of Indian Railways.
New Projects
The Company has brought before BoD various possible projects that could
be implemented under PPP mode/as a part of Business Plan.
Kottur – Harihar New A traffic study was conducted and report submitted by M/s. A.F.
Line
Ferguson & Company suggesting high potential for development
through alternate financing. However, the project could not be
brought under the ambit of K-RIDE because Indian Railway did
not agree to change the mode of financing from cost sharing to
PPP.
Mechanized Iron Ore The draft pre-feasibility report submitted by the Consultant M/s.
loading
terminal
at BARSYL was incomplete and additional reports were solicited.
Hospet
The firm did not turn up. However, in the changed scenario, this
was not required.
Talaguppa - Honnavar
GoK has funded a study by M/s. KRCL on the traffic Potential in
the catchment area of the line. The final report is received and
sent to IDD/ GoK for study of traffic potential and environmental
impact of the line.
 iDeCK submitted Bankability report
 Sent to Railway Board Single Window Agency on 11.06.10 for
clearance.
 Railway Board vide letter No. 2000/PL/88/12 dt. 28.06.10
advised GoK that this project has been entrusted to RVNL for
examining implementation through PPP and suggested for
association with RVNL for project development and participation.
 RVNL was approached in July 2010 on this issue and a
meeting was held on 30.07.10.
RVNL in their letter dt. 10.01.11 stated that fresh bankability
report need to be made on behalf of GoK on commercial
terms.
No further development.
Bagalkot – Kudachi New
Line
This is one of the sanctioned project of Railways. This is a
greenfield project. Railways have advised that the Company
can take up traffic validation and bankability studies to assess
the feasibility to develop under PPP at its own cost. The
Company has sought funds from the Shareholders (GoK &
MoR) to meet the expenditure on these studies.
 iDeCK submitted Bankability report
 Sent to Railway Board Single Window Agency on 11.06.10
for clearance.
Further Railway Board stated that this line has already been
sanctioned and included in the Railway Budget 2010-11 for
execution on 50:50 cost sharing basis with GoK with the
approval of MoR. Hence, it would be appropriate to continue
implementation on cost sharing basis.
Bijapur – Shahabad New
Line
RVNL has entrusted traffic survey & bankability report to
Deloitte Touche Tohamatsu India Pvt. Ltd, Gurgaon. Work is in
progress.
Future Role of K-RIDE
Viewpoint
Government of Karnataka
GoK through G.O No. IDD 59 NSW 2009
dated
17.08.2009
empowered
the
Company to act as a Nodal Agency for
development of Rail Infrastructure within
the State which covers entire gamut of
railway activities viz.
 Identification of new viable Railway
Projects
for
execution
through
PPP/SPV
Ministry of Railways
As per the approval obtained from CCEA, KRIDE is mandated to develop, structure and
Finance four identified projects on SPV
route.
 This is also reiterated in S.H.A / MoA
 Specific approval of CCEA would be
required for any new ventures through
SPV route.
 Monitoring the progress of RoB’s /  No mention in any of documents of a coRuB’s (55 in progress) duly coordinate role to be performed by the
ordinating with RITES / BBMP/ BDA
Company.
and other State Agencies
 Liaisoning with DCs & SLAOs for land
acquistition of ongoing Railway projects
 Act as a facilitator for drawal of funds  Matter to be referred to MoR for
released by GoK towards its share to
concurrence for effecting modifications
various Railway Projects and interact
as per G.O. in the SHA.
closely with SWR, SCR, SR & CR.
MoR to be approached

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