Railways beat Reliance in borrowing at low interest

New Delhi, Apr 17 (UNI) In what is thought to be a proof of their high stocks in the international market, the Railways have been able to borrow from private US placement market this year at 5.95 per cent interest rate, which is lower than the rate Reliance could manage this year.

The Railways secured a loan of 126 million dollars (Rs 500 crore) at a rate, which is at 36 basis point less than what was given to Reliance.

The company could get loan on an interest rate of 6.30 per cent in February this year.

''With a huge profit and surplus, we did not need money as such, but we wanted to test our place in the international market. It's helping us in brand making,'' said a Railway official.

The borrowed money will be used in purchasing rolling stocks etc.

The official said Railways have achieved the bast operating ration of 78.7 per cent. The highest so far was 75 per cent achieved when late Lal Bahadur Shastri was the Railway Minister.

UNI