The license was granted by the Ministry of Railways, which was also concerned about the possibility of serious competition like that which arose between Osaka and Kobe; moreover, the Shinkeihan Railway was established as a subsidiary of the Keihan Electric Railway in order to build the new line thus proposed.
この免許申請は、鉄道省の阪神間のような熾烈競争を憂慮する考えと一致したことから認められ、その敷設を行うための子会社として新京阪鉄道が設立された。