Kolkata, Aug 16: Railways Minister Nitish Kumar today said the Indian Railways has identified development projects worth Rs 8000 crore to be undertaken by the proposed Rail Vikas Nigam in partnership with the private sector. "Projects worth Rs 8,000 crore have been identified. The funding for this purpose will be divided into Rs 3000 crore of equity and Rs 5000 of market borrowings," Kumar said.

Stating that the methodology for the market borrowings would be decided by the union Finance Minister Jaswant Singh, Kumar said the railways has already received the first tranche of Asian Development Bank loan of 330 million dollars for the purpose.

The Rail Vikas Nigam, which would undertake new projects besides expansion of existing ones, was currently at a "take-off stage," he said. The rail minister, who was addressing a press conference, said the railways was taking steps to increase its freight earnings and increase its share in total freight handling.

Measures like increasing the axle load of bogies, accommodating more cargo in a single bogie and reduction in travelling time for goods trains were being taken, he said.

Also, the railways would work in association with the Indian Institute of Technology for developing new technology for this purpose, he said.

Bureau Report