Indian Railways is planning to set up a special fund named ‘Railways of India Development Fund (RIDF)’ with Rs 30,000 crore. The aim is to use these funds for undertaking remunerative projects across the country mainly with regard to expansion and modernisation of rail infrastructure. Multilateral funding agencies like World Bank, National Infrastructure Investment Fund, pension and insurance fund and other institutional investors are likely to be part of this fund. Funds would be invested only in those rail projects which promises higher rate of return in the range of 14-16 per cent such as redevelopment of stations and new lines for freight movement. Before taking up the project, a detailed survey would be conducted. The cabinet nod will be sought before setting up the infrastructure fund.
A survey will be carried out before taking up the project. Projects with minimum rate of return ranging between 14 per cent and 16 per cent will be taken up by the RIDF. The cabinet nod will be taken before setting up this infrastructure fund.