The Railways have decided to earmark additional revenue received from individual projects under the Golden Quadrilateral Project for debt servicing of loans raised to fund these projects.
The newly-formed Rail Vikas Nigam Limited (RVNL), which is expected to tap the markets soon, has been promised the securitisation mechanism to ensure that it could raise debt at competitive rates to finance the projects.
Accordingly, the Railways will commit these incremental receipts to the extent of required debt servicing over the period of amortization of the projects.
Officials said this arrangement would not only enhance RVNL
