FUNDING OF NATIONAL RAIL VIKAS YOJANA
The Ministry of Railways has started negotiations with the World
Bank for funding the mega bridges and other National Rail Vikas
Yojana(NRVY) projects. The World Bank has accepted reform agenda
of Indian Railways.
Besides, Asian Development Bank(ADB) loan amounting to Rs.1500
crores has been tied up. ADB has also indicated the possibility
of considering second and third loans during 2006 and 2008 respectively,
depending upon the loan covenant of the first loan.
In addition, another Rs.1500 crores are expected as Gross Budgetary
Support(GBS).
Added to these, the Special Purpose Vehicle(SPV) umbrella company
formed in January 2003, Rail Vikas Nigam, will work out fundings
from other sources including the capital market.
The NRVY is an important non-budgetary initiative for the development
of Indian Railways. The scheme aims at removing all the capacity
bottlenecks in the critical sections of the railway network at
an investment of Rs.15000 crores over the next five years
