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India to increase railway budget in 2009/10

Posted 07 4 2009 9:03PM

NEW DELHI (Reuters) – India will provide additional budgetary support of 50 billion rupees to its railways in 2009/10 and its financing arm Indian Railways Finance Corporation will issue tax-free bonds, a minister said on Friday.

"Finance ministry has approved the issue of tax-free bonds by IRFC for the first time after a gap of several years," Railways Minister Mamata Banerjee said, while presenting the railway budget for 2009/10.

In an interim budget in February, the budgetary support was 108 billion rupees, she said.