TEHRAN – The new government has lifted the former ban on withdrawals from the Forex Reserve Fund (FRF) for the development of the railroad projects, the fund will be mainly spent for the renovation of the rail system and purchases of train carriages, a report on Friday quoted Minister of Roads and Transportation Mohammad Rahmati as saying.

He said that last year, some $150 million from the FRF had been allocated to the nation’s rail network. The figure, however, is increased to $250 million in the current year.

In the last days of the past year (Iranian year ended March 20) the Economy Council in coordination with President Mahmud Ahmadinejad agreed to grant 220 billion rials in subsidies to the Islamic Republic of Iran’s Railroad Company, the minister said adding, this would be an effective move in the payments of the employees’ salaries and the supply of some equipments required by the nation’s railroad system.

He further commented on the issues regarding services rendered to the passengers, explaining that each month 10 passenger train carriages were added to the number of the carriages earlier existing in the rail network of the country.