GROSS ASSET VALUE OF ROLLING STOCK
LEASED BY IRFC
The total capital
generated with the help of financial resources provided by Indian
Railway Finance Corporation (IRFC) since its inception in 1986
as on March 31, 2002 is Rs. 23,874 crores amounting to gross asset
value of rolling stock leased or sub-leased by it (IRFC) to the
Ministry of Railways.
Lease charges
paid to IRFC in respect of these assts have two components—principal
repayment and interest payment. Out of lease rentals paid to IRFC
till March 31, 2002, the amount of principal recovery effected
is Rs. 8214 crores leaving an outstanding principal liability
of Rs. 1566 crores.
The funds raised
through IRFC from the capital market are so far confined to financing
the acquisition of rolling stock except for a few short term loans
to Konkan Railway Corporation and RailTel Corporation of India—the
two public sector undertakings of the Ministry of Railways.
The rolling stock
assets leased by IRFC form part of the total rolling stock pool
of the railways. The wagons and coaches leased by IRFC constitute
about 46 per cent of the total wagon and coach holding respectively
as on March 31, 2002. The electric and diesel locomotives leased
by IRFC constitute about 49 per cent and 28 per cent of Indian
Railways diesel and electric loco fleet respectively. Based on
the ratio of IRFC leased wagon and coach assets to the total wagon
and coach holding on the system as on March 31, 2002, the revenue
generated by IRFC financed assets is estimated at Rs. 17,405 crores.
During the year
2001-2002, an amount of Rs. 2942 crores was paid by the Ministry
of Railways to IRFC as lease charges. This works out to about
17 per cent of the proportionate earnings of Indian Railways from
IRFC leased wagons and coaches in that year.
The advantages
that the IRFC has by its own efficiency and the fall of interest
rates are passed on to the railways fully or partially. The Railways
received Rs. 70 crores on account of reduction in lease charges.
Besides, advance dividend for the current financial year 2003-2004
amounting to Rs. 58 crores has been given to the Ministry of Railways.
Constituted in
1986, IFC mobilises funds from capital market and out of its buys
rolling stock and lease them to Indian Railways.
