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The peculiar indebtedness was provided by the Centre to the Railways contingent to definite repayment conditions linked to its show metrics.
The cardinal authorities has extended the moratorium by 2 years for a peculiar indebtedness taken by the Ministry of Railways during the Covid-19 pandemic. The indebtedness of Rs 79,398 crore, comprising Rs 63,000 crore arsenic interest-free indebtedness and Rs 16,398 crore bearing interest, was granted by the Centre to the Ministry of Railways successful the fiscal twelvemonth 2020-21.
According to the Budget documents for fiscal twelvemonth 2025-26, presented by Finance Minister Nirmala Sitharaman Saturday, the repayment of the indebtedness was to statesman successful fiscal twelvemonth 2024-25 arsenic the indebtedness was provided with 3 years of moratorium only. However, arsenic the Ministry of Railways was incapable to repay the loan, the Ministry of Finance has extended the moratorium by different 2 years up to fiscal twelvemonth 2025-26. The Railways volition wage an involvement of Rs 1,358 crore for FY25 and FY26.
The contented was archetypal reported by The Indian Express connected January 28, wherever Ministry of Railways had requested to person the peculiar indebtedness of Rs 79,398 crore into a grant. However, during the pre-budget consultations, the Ministry of Finance had turned down the petition and agreed to springiness different 2 years of moratorium.
The documents of Budget 2021-22 amusement that a “special loan” of Rs 79,398 crore was extended to the Railways for “COVID-related assets gap” successful 2020-21 and to conscionable the pension expenses of 2019-20. The opening equilibrium of Railways’ pension money for 2020-21 showed a shortage of Rs 28,298.46 crore. Out of the full indebtedness of Rs 79,398 crore, Rs 63000 crore was interest-free and different Rs 16,398 crore was bearing interest.
In a connection to The Indian Express, the Ministry of Railways had said, “Indian Railways is performing well. Considering IR (Indian Railways) successful the translation signifier of dense infrastructural development, IR has been granted a moratorium of different 2 years for fiscal indebtedness components. However, during the fiscal years, 2024-26 volition wage the involvement components of Rs 1,358 crore”.
The peculiar indebtedness was provided by the Centre to the Railways contingent to definite repayment conditions linked to its show metrics. However, it is learnt that the Railways recovered it hard to conscionable the presumption and conditions related to definite show metrics. Following this, the Railways sought a conversion of the indebtedness to a assistance successful its pre-Budget consultations.
Dheeraj Mishra is simply a Principal analogous with The Indian Express, Business Bureau. He covers India’s 2 cardinal ministries- Ministry of Railways and Ministry of Road Transport & Highways. He often uses the Right to Information (RTI) Act for his stories, which person resulted successful galore impactful reports. ... Read More
Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports connected the macro system and fiscal policy, with a peculiar absorption connected economical science, labour trends, taxation and gross metrics. With implicit 13 years of newsroom experience, she has besides reported successful item connected macroeconomic information specified arsenic trends and argumentation actions related to inflation, GDP maturation and fiscal arithmetic. Interested successful the past of her homeland, Kashmir, she likes to work astir its civilization and contented successful her spare time, on with trying to representation the journeys of displacement from there. ... Read More
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