To provide rail connectivity between Krishnapatnam Port and Obulavaripalle in Andhra Pradesh, Sagarmala Development Company (SDCL) will reportedly infuse Rs 125 crore in special purpose vehicle KRCL. The rail connectivity project between Krihsnapatnam Port and Obulavaripalle is expected to cost Rs 2,198.50 crore. According to PTI report, Rs. 1,458.9 crore will be met through debt. The Rs 125 crore in Krishnapatnam Rail Company Ltd in the form of equity will help  reduce financial liabilities. 

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The existing equity in the project is Rs 270 crore. according to the report, Rs 187.5 crore of the equity requirement will nbe met by existing shareholders and the remaining Rs 159.1 crore to be met through internal accruals.  At present, in KRCL per cent equity by RVNL holds and KPCL hold 30 percent each, Andhra Pradesh Government holds 12.96 percent, NMDC holds 14.82 percent, and Brahmani Industries holds 12.22 percent KRCL.

The rail connectivity will make  Krishnapatnam Port more accessible. The Sagarmala Development Company (SDC) will have an initial authorised capital of Rs 1,000 crore and a subscribed share capital of Rs 90 crore.