Railways to Borrow ₹13,800 Crore in 2014-15 from IRFC and RVNL

New Delhi:  Indian Railways will borrow less at ₹13,800 crore from market through its two companies IRFC and Rail Vikas Nigam Ltd for capital expenditure during 2014-15.

In the current fiscal, as per the revised estimate, these two companies raised ₹14,942 crore from markets.

Indian Railways Finance Corporation (IRFC) will raise ₹12,800 crore in 2014-14 for investment in rolling stock and projects, the Railway Budget document tabled in Parliament today said.

Besides, the other financial firm under Indian Railway, Rail Vikas Nigam Ltd (RVNL), plans to raise ₹1,000 crore through market borrowing.

In the current fiscal, IRFC raised ₹14,838 crore while RVNL mopped up ₹104 crore from the market.

Besides, Railways expects to mobilise ₹6,005 crore through the Public Private Partnership (PPP) route during 2014-15.

“Extra Budgetary Resources, including market borrowings through IRFC, ‘PPP’ and other schemes, has been pegged at ₹19,805 crore,” Railways Minister Mallikarjun Kharge said in his proposals while presenting the Interim Rail Budget.

“While efforts of the government to provide precious financial resources for growth of Indian Railways would undoubtedly continue, the phenomenal investment needs of rail infrastructure cannot be met entirely through Gross Budgetary Support, Internal Generation of Railways and Market Borrowing.

“Railways have therefore started targeting private investment in rail infrastructure to bridge the gap,” he said.