Ministry of Railways Grants In-Principle Approval for IRCON International Ltd's MCRL Closure

The Ministry of Railways has granted in-principle approval for the closure of Mahanadi Coal Railway Limited (MCRL), a joint venture company of IRCON International Ltd. The legal formalities for the takeover of Phases I and II are under process. IRCON holds a 26% share in MCRL, and the closure is estimated to result in a loss of Rs.41.11 lakh for IRCON in FY 2023-24, with a net worth contribution of Rs.109.73 Crore. The reasons for the closure are that the Ministry of Railways is interested in taking over the project.