Market borrowing, as per the revised estimate for current fiscal, has been pegged at about Rs 11,848 crore, lower than Rs 17,655 crore estimated earlier, according to the Railway Budget for 2016-17, which was tabled by Railway Minister Suresh Prabhu in Parliament today.

Indian Railways Finance Corporation (IRFC) will raise Rs 19,760 crore in 2016-17 for investment in rolling stock and projects, while RVNL plans to raise Rs 240 crore.

During 2015-16, IRFC raised Rs 11,591.66 crore while RVNL mopped up Rs 255.90 crore from the market as per the revised estimate.

Besides, Railways is expecting investment through various partnership to the tune of Rs 18,340 crore.

"With great pleasure I wish to inform the House that bankable railway projects are now assured of funding and should be completed within the next 3-4 years", Prabhu said in while presenting the Rail Budget.

"We have introduced a new way of funding our projects through institutional financing. LIC has agreed to invest Rs 1.5 lakh crore over five years on extremely favourable terms. We are also looking forward to setting up a Fund with multilateral assistance for financing railway projects", he said.

Railways is expecting to mobilise Rs 20,985 crore from institutional and multi-lateral funding agencies.

Latest News from India News Desk