The Hindu Business Line : RVNL to raise Rs 1,000 cr for infrastructure projects

THE Government-owned Rail Vikas Nigam Ltd (RVNL) plans to raise about Rs 1,000 crore in fiscal 2005-06 from the domestic market for its ongoing and planned projects.

"The Rs 1,000 crore will be garnered from various sources including banks, financial institutions and other strategic investors as debt and equity. This is in addition to the equity component of Rs 493 crore that RVNL received as budgetary support and another similar amount of externally aided Asian Development Bank loan that has been extended for identified projects," the Managing Director, Mr J.P. Shukla, told Business Line.

In the financial year 2004-05, which is the first year of RVNL's operations, total expenditure is expected to be around Rs 500 crore, out of which Rs 150 crore was raised from private investors, and the rest was Government's equity investment.

"We now see a lot of interest in the domestic market to fund in bankable infrastructure projects — which is what RVNL ventures into. Given the different stages of implementation that various projects are in, as of now our demand projections for the year is in the range of Rs 1,000 crore. However, in case we feel the need for additional funds, we can raise up to Rs 3,000 crore from the market in 05-06," he added.

Out of the Rs 1,000 crore lined up for the next fiscal, RVNL is close to tying up Rs 250 crore as debt for Kutch Railway Company Ltd from various banks and financial institutions by April.

"Our major requirement of funds increases towards the end of the projects, thus in the years 2006-07 and 2007-08, we are likely to require much larger amount of funds,'' Mr Shukla added.

Some of the projects taken up by RVNL that are likely to be completed by March 2006 include the Delhi-Rewari rail link, Bellary-Hospet sector (except for the bridge), Panvel-JNPT doubling, connectivity to the Mangalore port, 18-km third line from Karakkupet to Ennore, connectivity from Kudremukh to Mangalore port, among others.

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