Life Insurance Corporation had committed to invest Rs 1.5 lakh crore in Indian railways over the next five years. As per the terms of the MOU inked by the two organisations, the railways will use the funds to enhance its capacity.
LIC will invest in bonds issued by various railway entities such as Indian Railways Finance Corporation, beginning next fiscal. There would be a five-year moratorium in interest and loan repayment. The bonds will have a tenor of 30 years and will be disbursed over the next five years.
