HASSAN MANGALORE RAIL DEVELOPMENT COMPANY LIMITED. Board of Directors. Mr. V. Madhu IAS Principal Secretary to GoK – IDD Chairman
Hassan Mangalore Rail Development Company Limited was incorporated in July 2003 under the Companies Act of 1956 as a joint venture of the Government of Karnataka & the Ministry of Railways.
Objective: HMRDC to take over the gauge conversion of the Hassan Mangalore railway line and ensure its early completion through appropriate and timely funding.
The company was to raise the required resources through debt and equity.
Company is enjoying Tax Holiday for 10 years from COD & Company is paying MAT at 15% as against 33% IT.
Company’s Credit rating is LA (Adequate credit quality) given by ICRA
Under theConcession Agreement, the Ministry of Railways has granted HMRDC a concession for 32 years during which the company would convert the MG line between Hassan and Mangalore into a BG line and thereafter undertake its operation and maintenance during the concession period.
To enable construction of the new line, the existing assets including land, station buildings, formation, bridges etc.
(assets forming part of the rail network and necessary for gauge conversion) have been leased to the company.
Under theOperations and Maintenance Agreement HMRDC has contracted with SWR for operation of goods train services on the line and its maintenance till the termination of the concession period.
Under theConstruction Agreement signed between HMRDC and South Western Railway (SWR) the later has been appointed as the Engineering, Procurement and Construction (EPC) Agency for the line and entrusted with the construction work.
Initial Project Cost Rs. 293 cr
Construction Cost Rs. 275 cr
RMV Equipment Rs. 4 cr
Pre-operative exp & IDC Rs. 14 cr
Subordinate debt from IR Rs. 141 cr
Equity Rs. 112 cr
Term loans from banks Rs. 90 cr
The Operations and Maintenance of the line from Commercial Operations Date (COD) i.e. 5thMay 2006 is being done by SWR under the terms of the O & M agreement.
Freight due to HMRDC from traffic carried on the line is calculated as per the inter-railway rules of apportionment.
O & M ( Fixed & Variable) costs payable by HMRDC are calculated on the basis of the formula prescribed in the O & M agreement.
Fixed costs covering cost of manpower, cost of consumables etc. are payable irrespective of the traffic moved.
Variable costs including fuel, cost of crew, loco and wagon usage etc. vary according to the tonnage carried on the line.
Apportioned freight minus the O&M costs constitutes HMRDC’s share of revenue.
The Hassan Mangalore line is expected to carry up to six million tonnes of freight per annum that includes
Towards Mangalore Area:
Export iron ore to Port from Chitradurga – Tumkur and Hospet –Bellary sectors
Iron ore for KIOCL pellet plant at Mangalore
Cement, foodgrain and other general goods to Mangalore goods shed
From Mangalore Area:
Limestone, Iron Ore Pellet
Fertilizer from MCF, Mangalore.
POL and LPG from Mangalore Refinery, Thokur.
Section Elevation (MSL)
Hassan – 900m
1 in 100 plateau
Sakleshpur – 967m
1 in 50 Ghat
Subramanya Rd. – 113m
Subramanya Rd.– 113m
1 in 100 plain
Mangalore – 9.5m
Salient Physical Features of Hassan - Mangalore Section
1. Physical features
1. Physical features
Main line track
class I - 52 Kg rails
class II - 52 Kg rails
Hassan to Sakleshpur
60 Kg PSC sleepers - M+ 4 density
Sakleshpur to Mangalore
60 Kg PSC sleepers - M+ 7 density
52 Kg PSC sleepers - M+ 4 density
Class - I fittings - ERC Clips, GR pads, metal liners in mid section and GFN liners in yards
D. Ballast - 250 mm cushion.
3. Bridges - Total - 670Major Bridges – 91 Minor Bridges – 549 Road over bridges – 16 Road under bridges – 12 FOB –2
4. Tunnels - Total Nos. 57
Total length - 10.98 kms. Longest tunnel - 578 mts
5. Level Crossings - Total - 65
Manned– 31 Unmanned - 34
8. Slip Sidings
6. Curves - Total – 110
80 - 85 Nos.- 30 to 50 - 25 Nos
7. Catch Sidings
Donigal station –
Rs. - Crores
Rs. - Crores
Cost for Fuel – Rs. 39.10 per lit
* SFC – Fuel consumption for 1000 GTKM
Rs. - Crores
Rs - Crores
GAV – Gross Asset Value NAV – Net Asset Value
Rs. - Crores
This ‘Terms of Reference’ (TOR) outlines the objectives, methodology and costs associated with Operational Improvements Assessment (OIA).Objectives :a) To document the market potential (both medium term & long term) of traffic. B) To conduct a SWOT Analysis and suggest ways and means of retention/enhancement of existing traffic with specific stress on capturing road traffic.C) The likely impact of the future projects proposed by GoK such as Hubli-Ankola New Broad Gauge line, Talaguppa-Honnavar Broad Gauge line, Hospet-Vasco doubling being executed by RVNL to be quantified on realistic terms.D) To suggest ways to overcome short term constraints faced by clients like shortage of Box-N wagons and locos so as to approach Railway Board for redressal of grievances.E) To explore ways for reducing running time in the critical section like increasing permissible speed, augmentation of line capacity with financial implications. F)To achieve profit optimization.G) To identity appropriate measures to avoid, remedy or mitigate, where practical, any adverse effects of the proposed activity on environmental/cultural values.H) To review Railway Board’s policy on R3i and suggest for improvements.I) To evaluate the need based requirement of conducting a techno economic feasibility through a Professional Agency like RITES for Doubling of Line. The Second Line will be an independent line requiring environmental & MOEF clearance.
ASSETS INSURED : Permanent way, Station Buildings, Signaling, and Telecom, Mechanical & Electrical Equipments
RISKS COVERED : Force Majeure occurrence such as fire, root, flood, breaches, lightning, earthquake and other natural disaster – mainly on account of landslides/ rockslides during monsoon.
LOSSES COVERED : I) Restoration cost of tracks and assets damaged
ii) Loss of Profit/ Revenue on account of stoppage of operation on account of Force majeure events.
POLICY PERIOD : 4th January 2010 to 3rd January 2011
PREMIUM PAID : 2008 Rs. 33.60 Lakhs 2009 Rs. 40.08 Lakhs 2010 Rs. 69.53 Lakhs
CLAIMS SETTELED : 2008 : Restoration Cost : Rs. 61 Lakhs Loss of Profit : Rs. 1.83 Crores (Under Process)
2009 : Restoration Cost : Rs. 97 Lakhs Loss of profit : Rs. 4.33 Crores Under ProcessINSURANCE
Nature of exemption : Eligibility U/s 80IA being Infrastructure facility
Quantum of Exemption : 100% of Profit/ Income of the Company
Period of Exemption : For 10 Consecutive years from the Initial year
Exemption Availed : From FY 2007-08
Exemption Available upto : FY 2016 – 17
The Company is required to Pay minimum Alternative Tax (MAN) on Book Profits U/s 115JB of Income Tax Act.
The Book Profit and MAT paid are :
FIN YEAR Book Profit Rate% including Surcharge Rs. In Crores Amt and Education Cess of MAT Paid
2007-08 34.12 11.33 (10%+10%+3%) 3.88
2008-09 87.79 11.33 9.95
2009-10(Prov) 52.96 16.95 (15%+10%+3%) 9.00