Tuesday, 8 July 2014

Railways to borrow Rs 11,790 crore in current fiscal year

Railways to borrow Rs 11,790 crore
The estimated market borrowing by these two companies during current fiscal were pegged at Rs 13,800 crore from markets, as per the interim Railway Budget for 2014-15 tabled in February.

Thus, there has been downward revision in the market borrowing plan by Rs 2,010 crore for the current fiscal.

"As I have increased internal resource component of Plan, I propose to scale down market borrowings... to Rs 11,790 crore," Railways Minister DV Sadananda Gowda said in his proposals while presenting the Rail Budget on Tuesday.

Resources from PPP are kept at the interim (budget) level, he said.

Indian Railways Finance Corporation (IRFC) will raise Rs 11,500 crore in 2014-15 for investment in rolling stock and projects, the Railway Budget document tabled in Parliament said.

Besides, the other financial firms under Indian Railway, Rail Vikas Nigam Ltd (RVNL), plan to raise Rs 290 crore through market borrowing.

During 2013-14, IRFC raised Rs 14,688 crore while RVNL mopped up Rs 254 crore from the market.

Besides, Railways expects to mobilize Rs 6,005 crore through the Public Private Partnership (PPP) during 2014-15.

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