“LIC has taken the task of supporting Indian Railways. It is a commercial decision. LIC will invest Rs 1.5 lakh crore over a period of five years,” Finance Minister Arun Jaitley said in the national capital.
LIC, state-run insurance major, on Wednesday pledged Rs 1.5 lakh crore to the Indian Railways for development of various commercially feasible projects in one of the largest railway networks in the world. The venture will be completed in period of over 5 years.
The investment would be done in bonds issued by various railway entities such as Indian Railways Finance Corporation (IRFC), beginning next fiscal. On an average, LIC (Life Insurance Corporation) will be pledging bonds worth Rs 30,000 crore over next five years.
When asked about that what kind of interest rate LIC would earn from this investment, LIC Chairman S K Roy said, “The rate is yet to be finalized. Since it is would be a commercial decision, it would be a win-win situation for both.”
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