Government likely to pave way for railway PSUs merger in Budget 2022: Report

Rail Vikas Nigam Limited is under the ownership of Indian Railways, Ministry of Railways & Government of India.

According to a report by MoneyControl, it is anticipated that the centre will come up with a roadmap for the merger of six public sector undertakings (PSUs) under the Ministry of Railways in Budget 2022-23, starting the process for a root-and-branch restructuring of these organisations.

Finance Minister Nirmala Sitharaman is likely to pave the way towards the merger of Rail Vikas Nigam Ltd (RVNL) with Indian Railway Construction Ltd (IRCON), RailTel Corporation with Indian Railway Catering and Tourism Corporation(IRTC) and Braithwaite & Co Ltd with Rail India Technical and Economic Services (RITES) when she presents Budget 2022-23 on February 1.

“Two out of the three railway PSU mergers are likely to be completed next year but adherence to timelines will depend on regulatory approvals,” one official said as per MoneyControl. Indian Railways Finance Corporation, Rail Vikas Nigam and Konkan Railway Corporation are among the PSUs listed. The Indian Railways has 11 PSUs under it.

Rail Vikas Nigam Limited is under the ownership of Indian Railways, Ministry of Railways & Government of India involved in building rail infrastructure required by the railways and is the number  1 PSU. The Union Cabinet in 2016 had decided to merge the Railway Budget with the General Budget, thus ending the 92-year-old tradition of having a separate Railway Budget.

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