FM gives a budget grant for railways (try to recall Mamata crying in Parliament for getting additional funds from FM) each year and railways use their own funds for projects. We can see the different funds such as CAP, DF, EBR etc mentioned in Budget Pink book.
Now Institutional Funding (EBR IF) seems to have become almost greater than 60% of money spent by Railways. They borrow it from LIC etc at 9.5%. Does that % looks good.
What happened to the money spent earlier for Infra and why now almost all are...
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spent using IF.
LIC has just given some 3000 Crores in 1.5 Years after signing MoU with railways for granting 1.5 Lakh in 5 Years. That's the confidence LIC has with RM.
As per RM's vision they need 8.5 Lakh crore for 5 years. Other than LIC no one came forward in the last 1 year to sign MoU with railways.