Rail Budget 2014: Railways to borrow Rs 11,790 crore in 2014-15

New Delhi: Indian Railways will borrow Rs 11,790 crore from market through its two companies IRFC  and Rail Vikas Nigam Ltd for capital expenditure during    2014-15.  

The estimated market borrowing by these two companies during current fiscal were pegged at Rs 13,800 crore from  markets, as per the interim Railway Budget for 2014-15 tabled  in February. Thus, there has been downward revision in the market  borrowing plan by Rs 2,010 crore for the current fiscal.  "As I have increased internal resource component of Plan,  I propose to scale down market borrowings... to Rs 11,790  crore," Railways Minister D V Sadananda Gowda said in his  proposals while presenting the Rail Budget today.  Resources from PPP are kept at the interim (budget)  level, he said.  

Indian Railways Finance Corporation (IRFC) will raise Rs  11,500 crore in 2014-15 for investment in rolling stock and projects, the Railway Budget document tabled in Parliament said. Besides, the other financial firm under Indian Railway,  Rail Vikas Nigam Ltd (RVNL), plans to raise Rs 290 crore  through market borrowing.   

During 2013-14, IRFC raised Rs 14,688 crore while RVNL mopped up Rs 254 crore from the market. Besides, Railways expects to mobilise Rs 6,005 crore through the Public Private Partnership (PPP) route during   2014-15.