The Finance Minister Shri P. Chidambram has said that new instruments and new mechanisms have to be identified to raise funds for railway projects. Presenting the Interim Budget in the Parliament today, he said budgetary support to railways has been increased from Rs. 26,000 crore, as it was in the Budget Estimates of 2013-14, to RS. 29,000 crore in the current budget of 2014-15. He said the railways need to mobilise huge resources through market borrowing and Private Public Partnership (PPP schemes).

Infrastructure financing: shift to market borrowing and PPPs to mobilise resources for railway projects alongside budgetary support. The Finance Minister announced identification of new instruments and mechanisms to raise funds for railway projects, emphasized increased budgetary support, and proposed mobilising substantial resources through market borrowing and public private partnership arrangements as primary channels alongside continued fiscal transfers.