Konkan Railway revenue hit by Karnataka mining scam: Official

The ban on mining in Karnataka and the imbroglio over illegal mining in Goa have hit hard the commercial freight revenues of the Konkan Railway (KR), a top official said Wednesday.

Speaking to reporters here, BP Tayal, managing director of the  Konkan Railway Corporation Limited (KRCL), said that iron ore traffic which until three years ago accounted for Rs300 crore of the corporation's commercial cargo earnings had dropped to two or three per cent of that figure.

"During the iron ore export boom, we had good commercial traffic. But then there was the ban (mining) in Karnataka and you know what is happening in Goa," Tayal said.

"Our earnings have had a dent because iron ore traffic, which was once at 37 percent of the total cargo volume, dropped to 2 to 3 percent," Tayal said.

The opposition has pegged the illegal mining scam in Goa at Rs25,000 crore. The state exported nearly 54 million tonnes of iron ore in the last fiscal.

The Konkan Railway chief said that in view of the low passenger fares, commercial freight traffic was the main revenue earner, of which there was a dearth on the KR route.

"We are trying to tap in commercial goods business by linking train services to two ports in Maharashtra. We must try to open new avenues in the commercial goods sector," Tayal said.