- The railways have finally identified the projects that will be funded by the Rs 1.5-lakh-crore loan that Life Insurance Corporation (LIC) has extended to the cash-strapped organization for the next five years.
- Railway officials claim that the organization is under close scrutiny of Prime Minister who thinks that a robust railways can greatly contribute to the country’s economy.
- Initially struggling to identify projects to be funded by the LIC, the railways have now shortlisted 24 corridors for expansion and strengthening from the loan money.
- The railways had signed an MoU with LIC in March to meet its capital requirement for network decongestion and expansion by 2019.
- The Mughalsarai section of Northern Railway is by far the worst section as far as congestion is concerned. It is over utilised by 150% of its capacity.
- In the past, the problem has been lack of consistent funding. A few lakh or a couple of crores were earmarked for projects every year that needed a much higher sustained investment.