Railways to create Rs 30,000 cr fund for remunerative projects

New Delhi, Aug 22 (PTI) To attract investors for theexpansion and modernisation of rail infrastructure, Railwaysis setting up a Rs 30,000 crore fund, first-of-its-kind forthe national transporter, for implementation of remunerativeprojects across the country. We are creating a fund of Rs 30,000 crore for setting upRailways of India Development Fund (RIDF), said a seniorRailway Ministry official. Investors like World Bank, National InfrastructureInvestment Fund, pension and insurance fund and otherinstitutional investors are expected to be part of the RIDF. However, the RIDF will invest only on those rail projectswhich have high rate of return. "RIDF will focus on new lines for freight movement orredevelopment of stations. It will not invest in thoseprojects which are not remunerative," he said. A survey will be carried out before taking up the project.Projects with minimum rate of return ranging between 14 percent and 16 per cent will be taken up by the RIDF. Railways will seek the cabinet nod before setting up theinfrastructure fund. Since freight lines are more remunerative than passengerline, RIFD will focus on goods movement. Currently, railways has undertaken many new lines projectswhich are socially desirable but economically non-viable. Certain projects in the hilly and remote areas are beingtaken up to provide rail link to the people of those regions. Railways is facing about Rs 32,000 crore shortfall in thepassenger operation as it is heavily cross-subsidised fromfreight business. PTI ARU DBS RGDBS