New payment mechanism of railways: 30 days max, else govt will pay interest

The step is expected to eliminate the "biggest risk" faced by contractors, meaning that railways will ensure that payments are made within the stipulated time, said the railway minister at an event

The railways have prepared a new mechanism to release payments to private contractors within 30 days, according to Union minister Ashwini Vaishnaw. The step is expected to eliminate the "biggest risk" faced by contractors, meaning that railways will ensure that payments are made within the stipulated time, said the minister, as reported by The Times of India (TOI). Furthermore, the minister added that if payments are not cleared within 30 days, railways will pay interest on the amount.

Minister Ashwini was speaking at the CII Partnership Summit, informing the audience that PM Narendra Modi had asked the railways to eliminate