Indian Railways signed MoU with LIC for implementing Railway projects [ Current Affairs ]
Indian Railways signed Memorandum of Understanding (MoU) with Life Insurance Corporation of India (LIC) for implementing Railway projects. The MoU was signed by Rajalakshmi Ravikumar, Financial Commissionerof Railways and SK Roy of Chairman of LIC.
- According to MoU, LIC will make available a Financial Assistance worth 150000 crore rupees to the Indian Railways for implementing Railway projects over the next five years. The Financial Assistance will be available from the Financial Year 2015-16.
- LIC will invest in bonds issued by various railway entities such as Indian Railways Finance Corporation. There will be a 5 year moratorium in interest and loan repayment.
- The bonds will have a tenor of 30 years and will be disbursed over the next five years.
- Union Railways Minister Suresh Prabhu had announced his intention of meeting a part of the total Plan Budget of 100011 crore rupees through extra budgetary resources in Railway budget 2015-16.
- Published on: March 13, 2015