The news on the street is that Life Insurance Corporation will be investing Rs 1.5 lakh crore (Rs 1.5 trillion) In Indian Railways for development of various commercially viable projects.
This investment would be spread over a period of five years.
“Minister Arun Jaitley said that LIC has taken this task of supporting Indian Railways. It is a commercial decision
The investment would be done in bonds issued by various railway entities such as Indian Railways Finance Corporation, beginning next fiscal.
It is assumed that LIC will be subscribing bonds worth Rs 30,000 crore (Rs 300 billion) over next five years.
LIC Chairman S K Roy mentioned that yet it is not analysed that what kind of interest rate LIC would earn from this investment but since it is would be a commercial decision, it would be surely a win-win situation for both.