Question : REPAYMENT OF RAIL BOND

(a) whether the repayment of Rail Bond is completed;

(b) whether many small investors have not received back the payment;

(c) if so, the facts thereof;

(d) the manner in which the railways are going to repay to the small investors;

(e) whether the Railways have incurred heavy losses due to its investments in Canfina;

(f) if so, whether the investment of the railways could not be recovered due to 1993 securities scam; and

(g) the manner in which the railways are going to recover its money?

MINISTER OF RAILWAYS (SHRI NITISH KUMAR)


(a) to (g): A Statement is laid on the Table of the Sabha.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (g) OF LOK SABHA STARRED QUESTION NO. 180 FOR 02.08.2001 BY SHRI KIRIT SOMAIYA REGARDING REPAYMENT OF RAIL BOND.


(a) Yes, Sir. All Railway Bonds which have matured have been redeemed on their respective due dates.


(b) No, Sir. All investors in Railway Bonds have been repaid on the due dates.


(c) Does not arise.


(d) Sufficient funds are provided each year by Indian Railway Finance Corporation (IRFC) for meeting the repayment liabilities in full.


(e) No, Sir. Recovery of Indian Railway Finance Corporation’s (IRFC) entire investment of Rs. 486.17 crore in Canbank Financial Services Limited (CANFINA), together with interest thereon, have been fully secured through an agreement between IRFC and the CANFINA/Canara Bank.


(f) & (g) Do not arise.