LIC to invest Rs1.5 lakh crore in Railways over next five years
Moneylife Digital Team 11 March 2015

LIC will invest around Rs30,000 crore each year by subscribing to bonds issued by various railway entities such Indian Railways Finance Corp over next five years

 

Life Insurance Corp of India (LIC), the country's largest insurer will invest Rs1.5 lakh crore in development of various commercially viable projects for Indian Railways, one of the largest railway networks in the world.
 
The investment would be made over a period of five years. 
 
“LIC has taken the task of supporting Indian Railways... It is a commercial decision... LIC will invest Rs1.5 lakh crore over a period of five years,” Finance Minister Arun Jaitley said.
 
The investment would be done in bonds issued by various railway entities such Indian Railways Finance Corporation (IRFC), beginning next fiscal.
 
On an average, LIC will be subscribing bonds worth Rs30,000 crore over next five years, its Chairman SK Roy said after the signing of MoU between Indian Railways and LIC.
 
When asked about that what kind of interest rate LIC would earn from this investment, Roy said, “The rate is yet to be finalised. Since it is would be a commercial decision, it would be win-win situation for both.” 
 
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