Indian Railways has approached the World Bank to examine the possibility of setting up a Railways Infrastructure Development Fund, Railway Minister Suresh Prabhu said.
The World Bank and the Indian Railways will work together to create a Railway Development Fund that will partly finance the $142 billion investment plans for the core infrastructure sector.
Prabhu said: “Our idea is to get part of this plan funded by multilateral bodies and the World Bank, that has global experience and access to technology, is a good partner.”
He also said the government has now allowed 100 per cent foreign direct investment (FDI) in rail sectors such as construction, operation and maintenance of suburb corridors, and coach manufacturing and maintenance facilities. The IFC could help Indian Railways to monetise its huge assets, he added.
World Bank was likely to work with global pension funds, among others, to raise money for the new fund.
, World Bank