New Delhi: The government has approved the setting up of the dedicated western and eastern Railway freight corridors to be built by the Indian Railways at a cost of about Rs28,181 crore.
While the eastern corridor would cost Rs11,589 crore, the western one will set the railways back by Rs16,592 crore. The project is to be funded through internal accruals, market borrowings and lending from mutilateral institutions. The Centre also approved a proposal by the railways to set up a greenfield electric locomotive factory at Madhepura at a cost of Rs1,294 crore.
In another decision, the Cabinet Committee on Economic Affairs cleared two FDI proposals worth Rs2,800 crore, including a proposal by Indonesia-based Salim Group to pick up 40% equity in New Kolkata International Development Private Ltd (NKID), the operating-cum-holding company for Indian companies developing townships and special economic zones in West Bengal. “This approval will result in an FDI of Rs2,250 crore,” finance minister P. Chidambaram told media persons after the meeting.