Railways to seek Rs 2000 cr loan from govt
Reflecting its financial trouble, Railways is seeking a Rs 2000-crore loan from the Finance Ministry to meet the expenditure of ongoing development projects.
New Delhi: Reflecting its financial
trouble, Railways is seeking a Rs 2000-crore loan from the Finance Ministry to meet the expenditure of ongoing development projects.
"Our Minister (Dinesh Trivedi) has already spoken to the
Finance Minister about the loan and I am meeting the Finance
Secretary on October 10 for it," Railway Finance Commissioner
Pompa Babbar said.
On the nature of the loan, she said it would be a
"bridge" loan. "The modalities of the bridge loan is being
Asked whether the loan is being sought to meet the
requirement of bonus payment to about 13 lakh railway
employees, Babbar said "no, we have budgetary provision for
paying salary and bonus."
The union cabinet today approved railways` proposal to
give 78-day productivity linked bonus to its 12.61 lakh
emeployees during the festival season. The bonus expenditure
is estimated at Rs 1098.5 crore to railways.
Despite facing the financial crunch, railways decided to
give more bonus than last year. The national transporter had
given 77 days productivity linked bonus to its employees last
Railways cash surplus has been reduced to Rs 75 lakh
while the working expenses of Railways have increased from Rs
41,033 crore in 2007-08 to Rs 73,650 crore in 2011-12. The
pension outgo during the same period has also increased from
Rs 7953 crore to Rs 16,000 crore.