Railways set to hit global markets with Rupee bonds
Railways is scouting for new ways to generate funding including through offshore rupee bonds as part of its ambitious Rs 1.21 lakh crore capital expenditure plan for 2016-17. Besides, the public sector behemoth is also looking at forming joint ventures with states, signing new PPP agreements and engaging multilateral and bilateral agencies to mop up investments, Union Minister Suresh Prabhu said while presenting the Railway Budget for 2016-17. Prabhu further said that this magnitude of investment calls for abandoning business-as-usual approach and continually innovating to find new ways of sourcing funds and executing projects.
“This year our investment would be close to double of the average of previous years -- a feat never achieved earlier. For the year 2016-17, the capital expenditure plan has been pegged at Rs 1.21 lakh crore,” Prabhu said. “Be it by forming joint ventures with states, developing new frameworks for PPP, scouting international markets for rupee bonds or engaging with multi-lateral and bilateral agencies, Indian Railways will be at the forefront of infrastructure growth in the country,” he said.
This would be the first time, that the Indian Railways will go to the international markets to fund its investment plans. On the multiplier effect of the investment, he said every rupee of investment in Railways has the capacity to increase economy-wide output by Rs 5.