ET GBS: Railways must look to new institutions for funding, says Minister Suresh Prabhu

Source:  articles.economictimes.indiatimes.com

NEW DELHI: The railways has the potential to help achieve Prime Minister Narendra Modi’s vision of making India a $20 trillion economy, but given the deep financial trouble Indian Railways finds itself in, the time has come to look for new institutions willing to fund infrastructure projects, railway minister Suresh Prabhu said, suggesting pension funds as one such possibility.

The minister, speaking at the Economic Times Global Business Summit on Saturday, gave the example of Australia and Canada which have made use of pension funds to lift the economy. He also said India could develop financial instruments to tap into the “money that is flowing in the world”.

While stressing on the need for a massive investment and private sector participation in railways, the minister said there is need to make the sector attractive to investors. He also emphasised on the need to keep the cost of capital low and to ensure that the capital cost of a new project is competitive and reasonable to ensure investor interest. More info

 

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