Konkan Railway to invite global bids for Skybus project

MUMBAI: The Konkan Railway Corporation (KRC) is set to invite global expressions of interest for its Skybus project as it celebrates its 18th foundation day on Monday (October 15).

A brainchild of KRC’s former CMD B Rajaram, the Skybus is a mass transit system where commuters can be transported in coaches suspended on overhead cables located two meters above ground. The idea behind inviting global players is to take the technology forward. “We have the wherewithal and the technology.

What we lack is capital to carry multiple tests and convert the tested prototype into commercially viable model,” Anurag Mishra, MD, KRC told ET. “KRC holds international patent for the technology. Our proposed partner can exploit it commercially and, in return, pay royalty to the corporation,” he said.

KRC believes that this can open an additional stream of revenue for the cash-starved corporation. Another of its invention, an anti-collision device, has already started making money. Following successful trial runs, the ministry of railways has awarded a Rs 1,600-crore contract to install the devices on all trains.

The device transmits vital information between two trains. An antenna on the roof of the train exchanges signals and the device gets activated on its own. If a train stops mid-way, the ACD in the train coming from the opposite direction detects this and warns the driver through a beep.

Though, at present, it is making operational surplus, it continues to incur net losses. KRC’s total revenue for the year has gone up to Rs 668 crore from Rs 630 crore in the previous year, it has a net loss burden to the tune of Rs 3,116 crore. “What bleeds us is a 7:1 debt-equity ratio. Efforts are on to bring it down to 0.63:1, thereby lowering interest liability to Rs 190 crore from the current Rs 300 crore,” Mr Mishra said.

Extending a helping hand, the Union railway ministry has agreed to convert its debt into non-cumulative quasi equity. “This saves us from paying dividends till we clear other debts. It has lightened our burden and has made our target achievable,” Mr Mishra said.