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LIC to Invest Rs 1.5 Lakh Crore in Rail Infrastructure
Mar 19, 2015

Railways signed a MoU with Life Insurance Corporation for raising Rs 1.5 lakh crore for financing its capacity augmentation projects. Railways and LIC both are going to be benefitted from this.

  • Under the MoU, state-run insurance major LIC will commit Rs 1,50,000 crore to Railways for developing infrastructure and the investment would be made over a period of five years.

  • The investment would be done in bonds issued by various railway entities such as Indian Railways Finance Corporation (IRFC), beginning next fiscal.

  • There would be a five year moratorium in interest and loan repayment.

  • The tenure of the bonds would be for 30 years.

  • With the fund, the cash-strapped Railways will be able to augment its resources for speedier execution of projects.

  • Railway Minister in his Rail Budget had announced that Rs 8.50 lakh crore will be invested investment of in Railways in next five years.

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