A significant amount will be earmarked for safety upgradation, electrification, doubling and modernisation of yards to clear traffic bottlenecks, sources in the railways said.

However, Railway Minister Suresh Prabhu will have to depend mostly on the External Budgetary Resources (EBR) for execution of the capacity augmentation projects and he will give details of his resource mobilisation plan in the Rail Budget 2016-17.

Since Gross Budgetary Support (GBS) from the Finance Ministry is unlikley to meet the railways' expectation, funding of projects will be mostly from EBR.

"Railways will execute only finacially viable projects. Those projects which are financially not viable but economically and socially desirable will be undertaken through joint ventures with state governments," the sources said.

Prabhu has written to the chief ministers of 18 states for taking up rail projects through joint ventures route. Sixstates, including Maharashtra, Odisha, Kerala, Andhra, Chhatisgarh, have signed MoUs with the railways for forming joint ventures.

While annoucement of new trains is unlikely for the second consecutive year, a scheme for premium high-speed parcel trains is slated to be unveiled in the budget.

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