Jagran Josh Logo

Indian Railways signed MoU with LIC for implementing Railway projects

Mar 12, 2015 10:25 IST

Indian Railways on 11 March 2015 signed Memorandum of Understanding (MoU) with Life Insurance Corporation of India (LIC) to augment its resources for speedier execution of projects. The MoU was signed by Rajalakshmi Ravikumar, Financial Commissioner (Railways) and SK Roy, Chairman of LIC.

Under this MoU, LIC will make available a Financial Assistance of 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.

In his Budget Speech 2015-16, 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, such as market borrowings by tapping low cost long term funds.

Is this article important for exams ? Yes50 People Agreed
Read more Current Affairs on: Indian Railways , Life Insurance Corporation , MoU , LIC

Latest Videos

Register to get FREE updates

    All Fields Mandatory
  • (Ex:9123456789)
  • Please Select Your Interest
  • Please specify

  • ajax-loader
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

Newsletter Signup
Follow us on
This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK