GBS for Railways pegged up to Rs.40000 Crore – an increase of Rs.10000 Crore over last fiscal

New Delhi: The Gross Budgetary Support (GBS) for the railways has been pegged at Rs.40,000 crore, an increase of Rs 10,000 crore over the last fiscal.

The increased allocation of GBS is 41.6 per cent of the total plan outlay Rs.1,00,011 crores in 2015-16 financial year.

During the period, the railways proposes to raise Rs.17,793 crore from internal resources and Rs 1645 crore from diesel cess.

The national transporter proposes to raise another Rs.17,000 crore from Indian Railway Financial Corporation (IRFC) and Rs.6000 crore from PPP models.

The rest of the amount will be met through support from multi-national agencies like World Bank, ADB, and corporations like LIC which have shown interest in the railways, said Railway Board Chairman A K Mital.

The Rail Budget has set a target of achieving of an operating ratio of 88.5 per cent which Railway Minister Suresh Prabhu in his budget speech described as best ever in the last nine years.

Operating ratio was targeted to be 92.5 per cent in 2014-15.

Significantly, the railways has earmarked Rs 18,000 crore from Rs.4000 crore allotted during the last fiscal for capacity expansion like doubling and trippling of the rail network to decongest the trunk routes.

The budget has proposed to cover 9,400 km of doubling/ tripling/quadrupling works proposed will attract more investments in the sector and refuel growth, thereby pushing it into higher trajectory.