Business Daily from THE HINDU group of publications
Wednesday, Feb 27, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Feb 27, 2008 ePaper | Mobile/PDA Version |
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Logistics
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Railway Budget Rlys to mop up Rs 7,200 cr in 2008-09 Our Bureau New Delhi, Feb 26 Indian Railways plans to mop up Rs 7,200 crore funds from the market though IRFC and RVNL in 2008-09. Indian Railway Finance Corporation (IRFC), the finance mobilisation arm of Indian Railways, would have to raise a record Rs 6,907 crore in 2008-09. In the current fiscal, IRFC was earlier budgeted to raise Rs 5,000 crore, which has now been lowered to Rs 4,750 crore in the revised estimates. IRFC mobilises funds from the market for buying rolling stock and providing it on long-term lease to the Indian Railways. In 2008-09, Railways proposes to procure 20,000 wagons, among others. Apart from IRFC, Rail Vikas Nigam Ltd (RVNL), the public sector unit that builds bankable rail link projects with private partnership, has also been budgeted to raise Rs 293 crore in 2008-09. Thus, in 2008-09, the market mobilisation of funds is almost equivalent to the gross budgetary support of Rs 7,874 crore (which includes Rs 774 crore from the Central Road Fund). “As on date, IRFC has raised Rs 4,250 crore from the domestic market, at weighted average cost of 9.3 per cent in the current fiscal. The average tenor for the borrowings is 10 years,” Mr R. Kashyap, Managing Director, IRFC, told Business Line. Till December 2007 end, IRFC had raised Rs 3,200 crore at an average cost of 9.5 per cent and weighted average tenor of 12 years. In 2006-07 fiscal, IRFC had raised Rs 4,000 crore. It had brought down its total cost of borrowing to about 8.22 per cent supported by two bond issues in the external markets. Out of the Rs 4,000 crore, IRFC raised Rs 2,900 crore from the domestic market and about Rs 1,100 crore from the external market. More Stories on : Railway Budget
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