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‘Rlys to achieve 75% of 5-year capex target’

Fomura claims that railways will be able to secure financing worth Rs.8.5 lakh crore through different routes

Policy Pulse
Publish Date: Apr 12 2016 1:33PM | Updated Date: Apr 12 2016 1:33PM

‘Rlys to achieve 75% of 5-year capex target’

Market research firm Fomura has predicted that Indian Railways may achieve 75 percent  of its five-year capex target of Rs.8.5 lakh crore and enhance 0.8 percentage points to India’s average GDP growth over medium-term (5-8 years).

 
Pointing on in a recent report that chronic under-investment in last ten years has led to Railways reeling under constraints resulting in congestion on its routes, Fomura said the transporter was on tpath to reverse the trend with its capex seeing a 70 percent jump over FY15 in FY16 and a more 21 percent increase in FY17.
 
Firm claims that railways will be able to secure financing worth Rs.8.5 lakh crore through different routes. 
 
It forecasts funding of Rs.2.56 lakh crore through gross budgetary support and Rs.1.5 lakh crore secured loan funding from LIC.