Railways Ministry meets banks and financial institutions

The Ministry of Railways and its PSU Indian Railway Finance Corporation, hosted a meeting of banks & financial institutions in late July to sensitise them of the opportunities and challenges posed by the Railways´ investment plans for modernising railway infrastructure. Dr. Raghuram Rajan, Governor, RBI, pointed out the long term nature of investments in Railways and the need to create appropriate structures to withstand political and regulatory risks in the long term. He said financing plans need to provide for more equity cushion, flexible debt structures and allow for a reasonable coverage of cost overruns.