Indian Railways to borrow $3.3 billion from market in 2012-13

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Indian Railways plans to borrow Rs.15,000 crore (about $3.33 billion) from the market, Railway Minister Dinesh Trivedi said on Wednesday presenting the railway budget for 2012-13 in the Lok Sabha.

"Within the constraints of funds, the annual plan outlay for 2012-13 has been targeted at Rs.60,100 crore which is the highest ever plan investment," Trivedi said.

"The plan would be financed through gross budgetary support of Rs.24,000 crore, railway safety fund of Rs.2,000 crore, internal resource generation of Rs.18,050 crore and an extra budgetary resource of Rs.16,050 crore which includes market borrowing of Rs.15,000 crore," he added.

The borrowing would be made through the Railway Finance Corporation.

Trivedi has made safety as the biggest priority in the budget. Also announced was a massive programme of modernisation of the world's third largest rail network.

The Indian Railways network is spread over some 64,000 km, with 12,000 passenger and 7,000 freight trains each day from 7,083 stations ferrying 23 million travellers and 2.65 million tonnes of goods daily.

The outlay for upgrading coaches, locomotives and wagons has been hiked 30 percent to Rs.18,193 crore.

About 11 per cent of the annual outlay (Rs.6,467 crore) will be spent modernising tracks and bridges, while that for signalling systems has been doubled to Rs.2,002 crore.

Capacity augmentation works will be allotted Rs.4,410 crore while Rs.1,102 crore has been set aside towards improving passenger amenities.