The Union Ministry of Railways signed a loan facility agreement with State Bank of India and EXIM Bank for doubling and electrification works worth Rs 1,200 crore sanctioned by the Government of India.
PANAJI
Konkan Railway Corporation Limited has begun execution of these projects, which are now set to cost Rs 1,520 crore including financial charges. The railway ministry has sanctioned an amount of Rs 310 crore in the Union budget 2017-18 to cover the remainder of the amount required for the host of projects earmarked under the allocation.
Commenting on the external finance agreement, Union Railway Minister Suresh Prabhu stated, “Railway has been waiting for Santa Claus far too long and the ministry has been a casualty for too long. Santa has had other children to take care of and didn’t find the railways too attractive. Railways have been overburdened and plagued with lower efficiency and the ministry struggled to create infrastructure in the absence of resources.”
He further pointed out that the hallmark of his budget document was the new model of partnership with financial institutions and around 17 state governments to create more railway infrastructure.
The infrastructure project is funded on a 20 year-structured loan pattern and the fund from this facility would be availed from April 2017 onwards with the signing of the loan agreement.
