Trade unions offer PF deposits to help Rlys

Railway trade unions have offered employees' and pensioners' provident fund (PF) deposits to the ministry to overcome the public carrier's financial crisis.

The funds could be utilised through railway securities on lower interest than what is prevalent in the market. 

National Federation of Indian Railwaymen (NIFR) general secretary Raghaviah said this was part of the suggestions given to Rail Minister Suresh Prabhu. According to him, the railways has enough resources of its own, and does not require any private or foreign investment.

“It requires an honest effort and good planning. Railways has dedicated and specialised human resources and also other resources like huge tracts of land. They can be utilised for its development,” he told Deccan Herald.

Railway trade unions, including the NIFR and the Shiv Gopal Mishra-led All India Railwaymen’s Federation are opposing the introduction of FDI and domestic private investment. They say this is not in the nation's interest.

Detailing out the plan, Raghaviah said that PF and bonus deposits of both serving and retired employees could be mobilised at somewhat lower interest rates. This could fetch approximately Rs 10,000 crore per annum.

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