Cabinet clears Indian Railways' plan to seek dividend waiver for 2016-17

The railway ministry can now move a resolution in both Houses of Parliament adopting the Railway Convention Committee's recommendations for a waiver on dividend for 2016-17

The Union Cabinet on Thursday cleared a proposal for a one-time waiver of Indian railways’ dividend payout of around Rs 9,000 crore to the general exchequer for 2016-17. With this, railways can now approach the Parliament for its approval to the waiver.
 
After the merger of the railway budget with general budget last year, it was decided that the national transporter would not have to pay dividend for the capital invested in it. While railways was budgeted to pay Rs 9,730 crore as dividend for last financial year, a subsidy of Rs 4,300 crore was claimed by it towards