According to Gowda, the cash-strapped Indian Railways will mobilise resources for infrastructure creation and upgradation through the funds of the state-run public sector companies (PSUs).

Gowda further said that large private investments, including foreign funds, will be attracted into the sector.

The fund inflows for modernisation of railway infrastructure will also be generated through promoting public-private partnership (PPP) models.

He added that a planned tax holiday scheme, which will incentivize investments for railways projects that have a long gestation period will also be promoted.

Currently, the Indian Railways is facing a huge cash crunch of Rs 26,000 crore amidst a decline in growth in passenger earnings.

In the interim budget, Mallikarjun Kharge, the then railway minister, had set a revenue target of Rs 1.65 lakh crore that included Rs 1.06 lakh crore from goods tariffs and Rs 45,255 crore from passenger fares and the balance from other sources.

Recently, the new government increased railway passenger fares by 14.2 percent and freight carriage charges by 6.5 percent. However, it will need more funds from international lenders to finance long gestation projects.


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