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Thursday, 23 June 2011

Indian Rail to Raise Funds for Expansion

June 23, 2011

Indian Rail is planning to raise Rs100bn ($2.2bn) in tax-free bonds by September to expand the country's rail network.

State-owned Indian Rail plans to use Rs53bn ($1.1bn) to lay additional rail tracks, Rs21bn ($460.5m) to widen of rail tracks and Rs8.5bn ($186m) for electrification.

Indian Rail intends to raise Rs205bn ($4.4bn) this year, including a record $750m from overseas, as the ministry improves facilities to lure traffic from roads.

The overseas plans include $200m from loans and a $300m bond sale, which will be mainly used to buy 18,000 cars for hauling iron, steel, cement and other cargo.

Indian Rail is planning to lay about 1,300km of new lines this year to cater to an increase in freight and passenger demand.

The country is expanding its rail network as it is aiming for rail to account for 50% of inland freight movement by 2020, compared with its 35% share in 2009, according to Bloomberg.


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