New Delhi: India Railways, which is struggling to keep its afloat due to cash crunch, is reportedly received an approval of Rs 250 billion as gross budgetary support (GBS) from Finance Ministry for fiscal 2012-13.
It is just Rs 50 billion more than the GBS approved last fiscal, and half of the demand of Rs 500 billion of Ministry of Railways. Ministry had asked for extra funding to carry out several rail infrastructure projects.
"The approval for Rs 250 billion, an increase of Rs 50 billion, from the last year as GBS from Finance Ministry came yesterday," The PTI reported citing Railway Ministry sources.
The Railway Budget will be presented in Lok Sabha on March 14 followed by the General Budget on March 16.
Railway Minister Dinesh Trivedi had pitched for higher fund allocation to undertake massive modernization work like laying new lines, new rolling stock acquisition and electrification.
Finance Ministry's GBS approval for Railways is against the recommendation of Pitroda Committee - which came up with suggestion of at least Rs 700 billion investment to upgrade railway infrastructure.
Railways earning during April-January period of fiscal 2011-12 stood at Rs 553.88 billion, up 9.7% from corresponding period last fiscal.