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India : CENTRE plans INR 8.50 lakh crore finance to Modernize Railways
Publish Date : 30-Jun-2015
Indian Railways has tied up finance for the following 2 years for its goal-oriented modernization program.
Union minister for rail routes Suresh Prabhu passed on to institutional financial specialists the government would be spending Rs 8.50 lakh crore ($125 billion) over the course of the following 5 years to modernize Indian Railways.
“We have already received a 30-year loan from LIC with a moratorium of five years. Pension funds too are more than willing to fund us and, frankly, we are spoilt for choice. Funding is not an issue for the next two-three years time,” said Prabhu.
He said the rail system was the foundation of the incorporated business that would be made after the presentation of the merchandise and services tax.
At a seminar on infrastructure organised by Edelweiss and Wells Fargo, Prabhu said, "A market cannot be built by one tax system alone but needs to be supported by infrastructure, and it will come from the railways. Logistics will ultimately decide how India becomes a manufacturing hub."
He said the Cabinet had cleared the Rs 82,000 crore devoted cargo passageway, which would decongest the current system.
The venture is required to be finished in 4 years.
About 90% of the area has been taken over and enormous deals have been issued in the most recent 6 months.
