Funding of more than EUR 14 billion for Indian Railways
Published: Thu, 2015-03-12 13:57India’s Ministry of Railways has signed a Memorandum of Understanding (MoU) with Life Insurance Corporation (LIC) for a funding of more than EUR 14 billion for Indian Railways.
According to the MoU, LIC will provide financial support to the Ministry of Railways and its entities to implement railway projects over the next five years. LIC’s financial assistance will be available from the Financial Year 2015-16.
There would be a five-year moratorium on interest and loan repayment and the rest of the terms would be negotiated while signing the finance assistance agreement, according to the statement.
“This is the first such step in its endeavour to make Indian Railways prosperous in the future. With such encouraging initiatives, the Ministry of Railways will be able to augment its resources for speedier execution of projects,” said Suresh Prabhu, Minister of Railways.