Railways plans to raise Rs 1.84 lakh cr this fiscal

Railways plans to raise Rs 1.84 lakh cr this fiscal

Railways plans to raise Rs 1.84 lakh cr this fiscal

The Railways, which missed its revenue target in the current financial year, is expecting to garner Rs 1.84 lakh crore in 2016-17. This is 10 per cent more than this year’s revised estimates.

It proposes to spend Rs 1.21 lakh crore on capital expenditure in the coming financial year. These are expected to be financed through Gross Budgetary Support from the Centre which is estimated at Rs 40,000 crore.

Besides, the railways will also raise internal resources through freight and passenger fares, leasing of railway land.

Some extra budgetary resources such as market borrowings, public private partnerships and bilateral financing from other countries are also expected to finance railways capital expenses.

Railway Minister Suresh Prabhu said Rs. 1.5 lakh crore will be funded by state-run Life Insurance Corporation of India over the next five years towards the railways’ modernisation plan. LIC will lend the money at favourable terms, Prabhu said in his budget speech on Thursday. The railways plans to spend Rs 8.8 lakh crore on infrastructure in the next five years. The Railways will borrow Rs 20,000 crore from markets through two companies IRFC and Rail Vikas Nigam during 2016-17.
The Railways is expecting investment through various partnership to the tune of Rs 18,340 crore.

“With great pleasure, I wish to inform the House that bankable railway projects are now assured of funding and should be completed within the next 3-4 years,” Prabhu said .

“The Railways is also looking forward to setting up a fund with multilateral assistance for financing railway projects,” Prabhu said.

The Railways is expecting to mobilise Rs 20,985 crore from institutional and multi-lateral funding agencies.