<p>The cash-strapped Railways has finally managed to get the approval of the Finance Ministry for a loan of Rs 3000 crore against the demand for Rs 10,000 crore.<br /><br /></p>.<p>"We were seeking a higher loan, including a waiver on the dividend payment(of about Rs 1,200 crore)," said sources in railways.<br /><br />Railways had deferred the dividend payment once before,in 2001-02 during Nitish Kumar’s period at the ministry.<br /><br />Railways had demanded Rs 10,000 crore from the Finance Ministry to meet the requirement of different zones.<br /><br />The Finance Ministry will be giving a loan to railways after many years. The interest rate would be 8.5 per cent and the loan was expected to be repaid in two to three years.<br /><br />According to the loan stipulation, the amount would be spent prudently in different railway zones for enhancing performances.<br /><br />The Finance Ministry had earlier rejected the Railways request for a "bridge" loan of Rs 2100 crore in September last year. The loan was to meet the national transporters' development expenses.<br /><br />Railways is facing a financial crisis due to an increase in expenditure on account of payment of Pay Commission arrears and increased fuel prices.<br /><br />In 2011-12, the government has extended Rs 20,000 crore as gross budgetary support for the railway plan, besides Rs 1,041 crore from fuel cess.<br /><br />Seeking government support for railways modernisation plan, Railway Minister Dinesh Trivedi had also met Prime Minister last week.</p>
<p>The cash-strapped Railways has finally managed to get the approval of the Finance Ministry for a loan of Rs 3000 crore against the demand for Rs 10,000 crore.<br /><br /></p>.<p>"We were seeking a higher loan, including a waiver on the dividend payment(of about Rs 1,200 crore)," said sources in railways.<br /><br />Railways had deferred the dividend payment once before,in 2001-02 during Nitish Kumar’s period at the ministry.<br /><br />Railways had demanded Rs 10,000 crore from the Finance Ministry to meet the requirement of different zones.<br /><br />The Finance Ministry will be giving a loan to railways after many years. The interest rate would be 8.5 per cent and the loan was expected to be repaid in two to three years.<br /><br />According to the loan stipulation, the amount would be spent prudently in different railway zones for enhancing performances.<br /><br />The Finance Ministry had earlier rejected the Railways request for a "bridge" loan of Rs 2100 crore in September last year. The loan was to meet the national transporters' development expenses.<br /><br />Railways is facing a financial crisis due to an increase in expenditure on account of payment of Pay Commission arrears and increased fuel prices.<br /><br />In 2011-12, the government has extended Rs 20,000 crore as gross budgetary support for the railway plan, besides Rs 1,041 crore from fuel cess.<br /><br />Seeking government support for railways modernisation plan, Railway Minister Dinesh Trivedi had also met Prime Minister last week.</p>