As soon as the PMO has expressed the concern over the slow pace of investments by railways, Suresh Prabhu said, they had increased the capital expenditure target of Rs. 8.5 lakh crore till 2019, which also includes current FY’s budget target of Rs 1 lakh crore.
Minister said that the ministry will manage to achieve the target. The budget excludes the funding of recently approved Dedicated Freight Corridor project worth Rs 82,000 crore by the Union Minister. He also informed that his ministry has issued contracts of Rs 15,000 crore in this FY.
Prabhu informed that Coal India and Steel Authority of India will invest for evacuation of rail projects, and they have signed MoUs with the state governments and port connectivity projects.
Talking about the meeting with World Bank Chief Mulyani Indrawati, he said The World Bank may fund $30 billion for rail projects.
The cabinet has recently approved a PPP model under which it will get funding of $15-20 billion and it will also implement the government’s plan to award contracts to remodel 400 stations on the Swiss Challenge method.
Indian Railways will seek Rs 1.5 lakh crore from Life Insurance Corporation for investing in railways with high rate of interest approved by the board of the state-owned insurer.
17 states have also given their consent for the investments in a new line capacity of rail projects through JV.
For setting up diesel and electric locomotive factories in Bihar and supply of 15 electric multiple unit train sets or 315 rail cars for improving the speed of Rajdhani and Shatabdi trains, he said that within next few months, the ministry will receive at least Rs 70,000 crore.
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