Railway Ministry working on $5 billion fund to finance infrastructure projects
The government is working on a proposal to
create a $ 5-billion fund to finance various infrastructure projects of
Railways. The proposed Railways of India Development Fund (RIDF) will be placed
before the Cabinet for its nod after sorting out some hurdles.
Key facts:
- The proposed fund, which will be anchored by the World Bank, will be of seven years.
- Nearly 20% of the fund will come from the finance ministry and the balance from pension funds and sovereign funds. The finance ministry’s share will come in the form of equity.
- It is being planned that the World Bank will route the funds through the finance ministry, which will be invested in RIDF as equity.
- The proposed fund will mainly invest in major infrastructure projects of the transport behemoth.
