Railway Minister Suresh Prabhu on Thursday announced that state-run Life Insurance Corporation of India (LIC) has agreed to fund Rs. 1.5 lakh crore on “very favourable terms” for development of various commercially viable projects.
The investment would be made over a period of five years, he said. LIC will invest through railway entities such as Indian Railways Finance Corporation (IRFC).
The railways intends to spend Rs. 8.5 lakh crore over five years towards its ambitious modernisation programme.
Presenting the railway budget, Mr Prabhu said that investment for railway modernisation will to go up to Rs. 1.21 lakh crore in 2016-17, up 20 per cent from last year.