Indian Railways is expected to have its highest plan outlay of around Rs 1.35 lakh crore for the next financial year.
The national transporter plans to seek an aid of almost Rs 60,000 crore from the finance ministry as gross budgetary support and another Rs 25,000 crore from LIC as loan.
The remaining amount will be raised by the Indian Railways Finance Corporation (IRFC) bonds, internal resources and public private partnerships (PPP).
“We’ll have the highest outlay for next financial year. We have already entered into a memorandum of understanding (MoU) with LIC as per which we can avail of an annual loan of Rs 25,000 crore.
Through IRFC bonds we can get anywhere between Rs 20,000 crore and Rs 25,000 crore. Several project will also be taken up on PPP,” a senior railway board official said.
Railways plans to use funds for constructing freight corridors, improving connectivity in Kashmir and North-east, upgrading signalling, redeveloping stations, improving passenger amenities, acquiring rolling stock, expanding critical freight lines near coal fields and ports.