New Delhi: State-run insurance major LIC on Wednesday committed Rs 1.5 lakh crore to the Indian Railways for development of various commercially viable projects in 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 Rs 1.5 lakh crore over a period of five years," finance minister Arun Jaitley said here.
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 Rs 30,000 crore over next five years, its Chairman S K Roy told PTI 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."