Oldest Asia Railway Plans More Debt Than GDP of Some Nations
- Indian Railways is targeting a $127 billion upgrade by 2020
- That includes $37 billion of debt to help unclog the network
Commuters board a train at Kurla railway station during the morning rush hour in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Indian Railways plans to rack up debt to help fund an unprecedented modernization plan.
Some 2.5 trillion rupees ($37 billion) of debt is required in the five years through 2020, according to Railway Minister Suresh Prabhu. That’s more than triple the 692 billion rupees of outstanding Indian Railway Finance Corp. bonds. The network is also exploring non-fare revenue streams from advertising and land holdings, Prabhu said.