Not only in KR, in many other parts of IR also distance is inflated
Find list of all inflated routes here - click here
Konkan Railway was set up as corporation and not under the complete jurisdiction of Indian Railways. As KR cuts through Western Ghat, constructing line through it is considered as engineering marvel. Construction cost was so high that KRCL had to inflate the distance by 40% to cover up the massive investment.
For...
more... e.g. distance between Mumbai (CSTM) and Madgaon (MAO) is 540kms but passengers are charged 742 kms.
Source -
click here