Lok Sabha Question No. 2951 (UNSTARRED), answered on 2021-12-15
Subject: Rail Vikas Nigam Limited
Ministry: RAILWAYS
Asked by: Uday Pratap Singh

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.2951

## TO BE ANSWERED ON 15.12.2021

## RAIL VIKAS NIGAM LIMITED †2951 SHRI UDAY PRATAP SINGH:

Will the Minister of RAILWAYS be pleased to State :

- (a)  whether  Rail  Vikas  Nigam  Limited  (RVNL)  an  undertaking  of  the Ministry of Railways has extended construction of new railway line for a private company Krishnapattnam Railway Company Limited (KRCL) and has spent more fund on this line from Railway/RVNL fund without receiving required payment from KRCL;
- (b) if so, the outstanding amount with interest received by RVNL from this company;
- (c)  whether  there  is  any  instance  of  Railways  amount  lying  with  private company  connecting  into  unsecured  advance  and  if  so,  the  details thereof;
- (d) the Government rules and procedure on the above issue;
- (e) whether the said rules have been adhered to by RVNL in this regard and if so, the details thereof; and
- (f) if not, the action taken by the Government against defaulting?

## ANSWER

MINISTER OF RAILWAYS, COMMUNICATIONS AND ELECTRONICS & INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

- (a) to (f) A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (f)  OF UNSTARRED QUESTION NO.2951 BY SHRI UDAY PRATAP SINGH TO BE ANSWERED IN LOK SABHA ON 15.12.2021 REGARDING RAIL VIKAS NIGAM LIMITED

(a)  to  (d)  Rail  Vikas  Nigam  Limited  (RVNL)  has  created  SPV  namely Krishnapattnam Railway Company Limited (KRCL).

Although KRCL has been registered as a private company, but majority shares are held by Central Government PSUs and State Government. The equity percentages of these are given below:

|                             | Initially   | Presently   |
|-----------------------------|-------------|-------------|
| RVNL                        | 30%         | 49.76%      |
| GoAP                        | 13%         | 5.60%       |
| NMDC                        | 15%         | 6.40%       |
| Krishnapattnam Port Company | 30%         | 12.96%      |
| BrahmniInd                  | 12%         | 5.28%       |
| Sagarmala Dev. Co.          | -           | 20.00%      |
| Total Equity                | 270 cr.     | 625.00 cr.  |

Rail Vikas Nigam Limited (RVNL) has constructed the rail connectivity on  behalf  of  Krishnapattnam  Railway  Company  Limited  (KRCL).  This was done after  entering  into  construction  agreement  between  RVNL and KRCL.

The  funding  of  this  rail  connectivity  Project  has  been  made  as  per following:-

- I) Bank Loans-₹ 1075 cr
2. II) Equity-₹ 625 cr.
3. III) Internal Accrual-₹ 89 cr.
4. IV) RVNL funds-₹ 853.84 cr.

Contd…….2/-

Outstanding  unpaid  amount  of  RVNL  is ₹ 853.84  cr.  Additionally  the interest on this amount as on date is ₹ 469.44 cr.

Regarding non-payment of RVNL's Bills by KRCL, relevant para 11.5 of the construction agreement stipulates:-

If  expenditure  incurred  by  RVNL  out  of  its  own  funds  on  the  project executed on behalf of KRCL on account of the failure of KRCL to make timely payment to RVNL against bills submitted to it, then RVNL shall charge  interest  at  the  Average  Prime  Lending  Rate  of  RBI  on  the amount so spent. The interest to be charged shall be fixed from the last  date  of  the  month  in  which  expenditure  has  been  incurred  and charged up to the date of actual payment is received from KRCL.

No  railway  fund  has  been  spent  on  this  project.  As  per  the  present procedure, Railway Ministry reimburses fund spent on railway project only..

The  execution  of  SPV  project  has  been  carried  out  as  per  the construction  agreement  entered  into  by  RVNL  with  SPV  and  the provisions of this agreement have been followed.

(e) & (f) As there is no default, questions do not arise. .

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