Highest Ever Funding of Rs. 1.5 Lakh Crore for Railways – MoU Signed with LIC
Ministry of Railways
11-March, 2015
A Big Step Forward to make Indian Economy more Robust: Suresh Prabhu
Just within fifteen days of presenting the Railway Budget 2015-16,
the Minister of Railways Shri Suresh Prabhakar Prabhu fulfilled yet
another commitment of his Budget announcement by achieving the highest
ever funding of Rs. 1.5 lakh crore for Railways. In this historic
landmark achievement, a Memorandum of Understanding (MoU) was signed
between the Ministry of Railways and Life Insurance Corporation (LIC) in
the presence of the Minister of Finance Shri Arun Jaitley and the
Minister of Railways Shri Suresh Prabhakar Prabhu at a function here
today. The signatories of MoU were Smt. Rajalakshmi Ravikumar, Financial
Commissioner, Ministry of Railways and Shri S.K.Roy, Chairman, LIC.
Speaking on the occasion, the Railway Minister said that this is the
first such step in its endeavour to make Indian Railways prosperous in
the future. He said that with such encouraging initiatives, the Ministry
of Railways will be able to augment its resources for speedier
execution of projects. Shri Suresh Prabhu said that the resultant
enhanced throughput of traffic is likely to further increase the
capacity to carry more to meet with a growing transportation demand
leading to a robust economy. He thanked the officials of the Finance
Ministry, LIC and the Railway Ministry for working together as a team to
make this deal a big success.
Under this MoU, LIC will make available to the Ministry of
Railways/its entities a Financial Assistance with a limit of 1,50,000
crore over the next five years for implementing Railway projects. The
Financial Assistance will be available from the Financial Year 2015-16.
In his Budget Speech, Shri Suresh Prabhu had announced his intention of
meeting a part of the total Plan Budget of Rs 1,00,011 crore for the
financial year 2015-16, through extra budgetary resources, such as
market borrowings by tapping low cost long term funds. The challenge has
been successfully met in a substantial measure by the signing of this
MoU for mobilising resources.
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.
The Minister of State for Finance, Shri Jayant Sinha, the Minister of
Railways, Shri Manoj Sinha were also present on the occasion. Also
present on the occasion, among others, were Shri A.K.Mital, Chairman,
Railway Board, Shri Hasmukh Adhia, Secretary (FS), Railway Board Members
and senior officials from Ministry of Finance, Ministry of Railways and
LIC.
Earlier, just a few days after the presentation of Railway Budget
2015-16, the Minister of Railways Shri Suresh Prabhakar Prabhu fulfilled
commitment of his budget announcement by launching a ‘Customer
Complaint Web Portal and Mobile Application’. This ‘Customer
Complaint-cum-Suggestion’ portal and mobile App which can be freely
downloaded, is very useful as one can track the status of the complaints
which he or she registered on this portal with the help of mobile App.
Soon after his taking over as the Minister of Railway,, Shri Suresh
Prabhu started the process of welcoming suggestions from the people to
further improve the passenger services and valuable suggestions on this
newly launched portal can be incorporated in all possible ways, if found
suitable.
PIB