RESOURCES FOR NATIONAL RAIL VIKAS YOJANA
The Government has
decided to source funds for National Rail Vikas Yojana (NRVY)
from a mix of budgetary and non-budgetary sources.
The non-budgetary
resources will come from multi-lateral funding from agencies like
the World Bank and Asian Development Bank, loans from domestic
financial institutions and public-private partnerships. Non-budgetary
funding will be arranged by Rail Vikas Nigam Limited, a public
company set up by the Ministry of Railways. Terms and conditions
for such fundings will be decided as mutually worked out between
the company and the lenders.
For the financially
viable projects taken up by the company for strengthening of the
Golden Quadrilateral, the incremental railway receipts will be
earmarked to the extent of debt servicing requirement over a period
of amortization. This arrangement is intended to provide comfort
to the lender and enhance the credit thereby enabling the company
(Rail Vikas Nigam) to raise resources (debt) at competitive rates.
The projects in NRVY,
except the mega bridges, are planned for completion in a period
of five years. The mega bridges are targeted for completion within
six to seven years.
