FinMin turns down Railways bridge loan request

In a setback to Railways, the Finance Ministry is reported to have turned down the PSU's request for a loan of Rs 2,100 crore to meet its development expenses.

The Finance Ministry is believed to have asked Railways facing financial crunch to bring more efficiency in its functioning to shore up its finances rather than seeking financial support, sources privy to the development said.

The Railway Ministry had sought the bridge loan of Rs 2,100 cr in August to meet the planned expenditure.

The demand was met in view of minus balances in railway's capital fund and the development fund. The loan would have helped railways to meet its development expenditure.

Development fund goes for passenger amenities, staff amenities traffic facilities. Capital fund is for leasing purposes that is for IRFC payments.

Despite Finance Ministry's negative response, Railway Ministry officials, however, were hopeful of positive development in the days to come.

The matter is still being dealt at the inter-ministerial level, they said.