Prime Minister approves second Financial Restructuring of Konkan Railway in the CCEA Review Meet

The Cabinet has also approved the creation of one circle office of Commissioner of Metro Railway Safety (CMRS), along-with all supporting officers and staffs for carrying out the functions of Commission of Metro Railway Safety as envisaged in the “Metro Railways (Operations and Maintenance) Act, 2002”.

MUMBAI/NEW DELHI: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Friday approved the second financial restructuring proposal of Konkan Railway Corporation Limited (KRCL), a CPSE under the administrative control of the Ministry of Railways (MoR).

The conversion of Non-Cumulative Redeemable Preference Shares (RPS), amounting to Rs.4,079.51 crore, held by President of India through Ministry of Railways, into Compulsorily Convertible Non-Cumulative Preference Shares (CCPS), has been approved.

This will shore up the net worth of the Company after implementation of the new accounting standard IND AS.

KRCL will have to present the previous year’s Balance Sheet figures restated as per IND-AS, as on March 31, 2016 and those at the opening of the business i.e., as on April 1, 2015. The conversion of the Non-cumulative Redeemable Preference Shares (RPS) into Compulsorily Convertible non-cumulative Preference Shares (CCPS) w.e.f. March 31, 2015 will make KRCL’s net worth positive.

Commissioner of Metro Railway Safety 

The Cabinet has also approved the creation of one circle office of Commissioner of Metro Railway Safety (CMRS), along-with all supporting officers and staffs for carrying out the functions of Commission of Metro Railway Safety as envisaged in the “Metro Railways (Operations and Maintenance) Act, 2002”, in the Commission of Railway Safety under the Ministry of Civil Aviation.

It also allowed assigning of additional charge of two circles to two existing Commissioners of Railway safety (CRSs) who will exercise their powers within their existing jurisdiction. These circles will not be under the jurisdiction of CMRS, New Delhi.

Creation of these posts will ensure focused attention on the passenger safety and metro rail operation related issues, in respect of existing, as well as upcoming various metro rail projects.

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