LIC releases Rs 2,000-cr loan for Rlys

LIC releases  Rs 2,000-cr loan for Rlys

Railways on Tuesday received Rs 2,000 crore as first instalment of its loan from LIC that would likely help improve its infrastructure and services.

The crucial cash injection –part of the Rs 1.5 lakh crore funding LIC agreed to provide in the next five years- has buoyed the railways which hopes the loan would help decongest the traffic, improve infrastructure and generate adequate funds.

The two government-owned giants signed a MoU for the funding in March 2015.

“Finding resources for investment in capacity building project has been a major challenge,” Railway Minister Suresh Prabhu said, lauding the government-owned insurance company for the timely funds.

“Without investment, it would not be possible to increase traffic output and generate adequate internal resources.”

Prabhu acknowledged that Railways would have struggled with increasing traffic and crumbling infrastructure without the fresh funding.

The funds would not only meet the requirements of new projects, but will also expedite ongoing projects that would bring immediate benefits to the railway system, Prabhu said.

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