LIC signs agreement to commit Rs1.5 trillion for Indian Railways

By Ragini Verma  www.livemint.com

New Delhi: Railway minister Suresh Prabhu has secured some of the money he needs to invest in railway infrastructure over the next five years by tapping the country’s insurance behemoth, the state-owned Life Insurance Corporation of India (LIC).

Indian Railways has signed an agreement with LIC for a commitment to invest Rs.1.5 trillion in railways over the next five years. “We signed an agreement with the Life Insurance Corporation which will give to railways $25 billion minimum in the next five years, at a very attractive rate of interest,” said Prabhu.

Mint reported on 2 March that railways was in talks with LIC to sign such a deal. In his Railway Budget presented last month, Prabhu proposed investments of Rs.8.5 trillion over five years in capacity expansion and modernisation of railway infrastructure.

Over five years ending 31 March 2019, railways has planned investments in a dedicated freight corridor, high-speed rail and elevated corridor (Mumbai), wagon production, station development and logistics parks. More info

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