In order to turn the Indian Railways into the world class mode of transport, the railway ministry has decided in invest a staggering sum worth Rs. 8.50lakh-cr amounting to $125 billion in the next half decade. In this connection, it has tied up funds for the next two years for its ambitious modernization programs, Union minister, Suresh Prabhu said, claiming that the ministry has already received a 30-year loan from LIC for the targeted investment plans and that pension funds too are more than willing to finance the rail projects but the transporter has already fixed funds for the next two years.
In fact, the transportation is the backbone of the country's economy and logistics will ultimately decide how India becomes a manufacturing hub. For speeding up the ongoing projects, the Cabinet has recently cleared a whopping sum worth Rs. 82,000cr for the dedicated freight corridor aimed at decongesting the existing rail network and the project is expected to be complete in four years as nearly 90% of the land has been acquired and big contracts have been awarded in the past six months.
Apart from this, the proposed investment will transform the face of Indian railways and the move will contribute two to three per cent to the country's GDP, he added.