Railways has lagged behind due to inadequate investment: MoS Railways

Several committees including the National Transport Policy Committee, the Rail Tariff Enquiry Committee and the Railway Reforms Committee have also highlighted the shortcomings

GN Bureau | March 29, 2018


#Indian Railways   #Railways   #Rajen Gohain  


 Railways has lagged behind due to inadequate investment, union minister Rajen Gohain informed parliament.

The minister said that railways has a huge throw-forward in its capital expenditure program. Currently, the throw-forward in capacity expansion program is over Rs 4 lakh crores.

Read: What’s ailing Indian Railway?

Several committees including the National Transport Policy Committee, the Rail Tariff Enquiry Committee and the Railway Reforms Committee have also highlighted the shortcomings.

Recent Committee headed by Bibek Debroy for “Restructuring and Mobilization of Resources” has recommended to explore sources of funding PPPs, JVs, -institutional finance, etc., in addition to the conventional mode of internal generation of resources.

The minister said that a new source of funding viz. Extra-Budgetary Resources (Institutional Finance (EBR-IF in short) has been introduced with effect from financial year 2015-16. It is envisaged to mobilize funds to the tune of Rs 1.5 lakh crore through EBR(IF) for financing railway projects over a period of five years (2015-16 to 2019-20).

The ministry of railways signed a Memorandum of Understanding(MOU) with the Life Insurance Corporation of India(LIC) on March 11, 2015 whereby LIC has agreed to provide funding assistance to the tune of Rs 1,50,000 crore over a five year period from 2015-16 to 2019-20 for financing railway projects. These funds will be routed through Indian Railway Finance Corporation who will finance the identified projects and lease them to the railways.
 

Comments

 

Other News

The light turns amber

In a black salwar-suit and matching headscarf, Ruksana (name changed) listens carefully from a corner of the hall. Members of her support group are talking about their suffering, struggles, aspirations and achievements. At her turn, she slowly opens up. Like that of many others, her story is one of deceit,

Aero India 2019 kicks off in Bengaluru

Five day long Aero India -2019 organised by Hindustan Aeronautics Limited (HAL) was inaugurated at Air Force Station, Yelahanka, Bengaluru on Wednesday.   The French origin Rafale fighter jets are also participating in the event.   Asia’ largest

BHEL builds India’s first regenerative 5,000 HP electric locomotive

In a major technological breakthrough, BHEL has developed the country’s first such regenerative 5,000 horse power (HP) WAG-7 electric locomotive with a modern regeneration system for Indian Railways.   The electric loco was flagged-off by member traction, railway board, Gha

Prime Minister dedicates Rs 33,000 crore projects in Begusarai

Prime Minister Narendra Modi dedicated a host of developmental projects at Ulao airport in Begusarai, Bihar. Modi said these projects will fuel the progress of Bihar and the eastern states. He said that Bihar had the potential to play a pivotal role in driving the growth of the country. “The

IOCL finalises term contract for import of US crude oil grades

IndianOil Corporation has finalised a term contract for import of up to three MMT (million metric tonnes) of crude oil of US origin grades to diversify term crude sources in 2019-20 fiscal. The enterprise has finalised the contact on February 15, 2019.   The value of the cont

For a healthy tomorrow

When Dr Shruti Kamdi (pictured on left), a transfusion specialist at a leading Mumbai hospital, had her first child, she struggled to nurse her baby as she was unable to secrete enough milk. Admitted to a private hospital, she was put on medication to increase breast milk. But that didn’t help much.

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter