MoR to set up development fund to implement projects

The MoR is planning to set up an infrastructure fund – the Railways of India Development Fund (RIDF) – with a corpus of Rs 300 billion to implement remunerative projects across the country. Funds will be provided by domestic and foreign investors such as the World Bank, the National Infrastructure Investment Fund, pension and insurance funds and other institutions. The RIDF will invest only in those rail projects that have a high rate of return. Prior to taking up a project, a survey will be conducted and only projects with a rate of return between 14 and 16 per cent will be taken up. The fund will especially focus on new lines for freight movement and the redevelopment of stations.