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New Delhi, Nov. 28 The Indian Railways will have to pay dividend at a higher rate of 7 per cent to the Government for 2008-09. For the past few years, the Railways paid a divided of 6.5 per cent to the Government.

The Union Cabinet on Thursday gave its approval to move a resolution by the Minister of Railways in both the Houses of Parliament for adoption of certain recommendations of the Railway Convention Committee (2004)’s Ninth Report. Additionally, Railways received an approval to set aside Rs 11,000-12,000 crore for the pension fund in 2008-09.

In 2007-08, Railways had appropriated Rs 8,660 crore. Railway Finances were separated from General Finances in 1924 based upon the recommendations of the Acworth Committee (1920-21).

The financial arrangements between the Railways and the General Revenues have been reviewed by successive Convention Committees of Parliament.

The Ministry of Railways had submitted to the railway Convention Committee (2004) their interim Memorandum on ‘Rate of Dividend for 2008-09 and other ancillary matters’.

More Stories on : Dividend Announcement | Railways

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