Planning Commission DeÂputy Chairman Montek Singh Ahluwalia and Railway Minister Pawan Kumar Bansal discussed options for funding crucial railway projects. The rail ministry feels the need to raise its own resources to fund these projects. Steps to raise funds could include an across-the-board increase in railway fares, reports suggest.
The ministry feels the need to generate own resources in order to manage the rise in costs in mega projects, as a significant rise in budgetary support in the coming Budget was unlikely, owing to the government's strained financial resources.According to Planning Commission officials, during 2012-13, the cost of building the first phase of the corridor had risen to about Rs 124,000 crore, against the estimate of Rs 28,000 crore. By the time the first phase is completed in 2017, the total cost will be much more than the earlier estimated Rs 80,000 crore, the official said.
Leave a Reply
You must be logged in to post a comment.