New Delhi, Aug 10 (IANS) The government on Monday said it has authorised the Indian Railway Finance Corporation (IRFC) to issue tax-free bonds worth Rs.6,000 crore during 2015-16 to finance acquisition of rolling stocks.
Minister of State (MoS) for Railways Manoj Sinha informed the Lok Sabha during Question Hour that the target for raising funds through tax-free bonds has been authorised by the Finance Ministry.
“IRFC has been authorised to issue tax-free bonds through public issue/ private placement. The funds would be utilised mainly to finance acquisition of rolling stock,” Sinha said.
Answering another question, the minister informed the lower house of parliament that the total “throw forward of funds” at the end of the fiscal required for railway development schemes stands at Rs.4.99 lakh crore.
“In addition to funds received through budget, railways have taken up mobilisation of funds from alternate sources like market borrowings, public private partnership and institutional financing,” Sinha said.
According to Sinha, apart from gross budgetary support of Rs.41,646 crore, railway is raising funds through internal resources (Rs.17,793 crore), extra budgetary resources (Rs.40,572 crore).