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Blog Entry# 1777461
Posted: Mar 24 2016 (09:09)
3 Responses
Last Response: Mar 24 2016 (13:31)
3 Responses
Last Response: Mar 24 2016 (13:31)
Mar 24 2016 (09:09) NDLS/New Delhi (16 PFs)
SBCKLBGVandeSadharana~
SBCKLBGVandeSadharana~ 10816 blog postsCan anyone clear my doubt:
Does Indian Railways get any allocation of money from the Union Budget ? Do they have to return any dividends to the Union Govt similar to Public Sector Undertakings ??
Or is their money their own ie: IR has to generate their own revenues completely independent of allocations of Union Budget ???
Does Indian Railways get any allocation of money from the Union Budget ? Do they have to return any dividends to the Union Govt similar to Public Sector Undertakings ??
Or is their money their own ie: IR has to generate their own revenues completely independent of allocations of Union Budget ???
Railways unlike other PSUs IR is wholly managed (Rail Ministry) and funded (Union Budget) by GOI. So any funds by the government to the railways is like an equity investment. Like equity, GOI invests in IR , but would only get a return when there is net profit (which IR is not). So, until an unless railways make net profit and is able to fund all its investment plans it won't be able to provide returns to GOI. So for any deficit in revenue and expenditure is funded by the Union Budget. However, IR has pay interest on the borrowed fund from other PSU or GOI will pay for it in case of default. So, in this case GOI is the owner of IR and the guarantor for IR.
Also, in future if IR generates revenue which is more than the all planned and non planned expense then the excess will be transferred to Union budget as revenue income from IR.