The Indian Railway Finance Corporation (IRFC) mobilised Rs 1,876 crore from the capital market during 1997-98 for the development of railways.
Of this, Rs 844 crore was mopped up through taxable bonds, Rs 500 crore through tax-free bonds and Rs 532 crore from external commercial borrowing, according to the railway ministry.
The public sector undertaking has struck a deal with the Corporation Bank for a Rs 100-crore loan. IRFC is also trying for a long-term borrowing from Life Insurance Corporation, State Bank of India and Indian Overseas Bank. The ministry said IRFC was poised to mobilise the balance Rs 300 crore tax-free bonds during the remaining period of the current financial year.
IRFC had been asked to mobilise Rs 2,150 crore during 1997-98 and another additional Rs 450 crore following the poor response to the build-own-lease-transfer (BOLT) scheme to attract private investment in the development of rail infrastructure. The main channels for resource mobilisation by railways are earnings from freight, passenger and other coaching services, budgetary support from the general exchequer and borrowing by IRFC from the capital market.
