IRBD to lend India $650 million for dedicated freight corridor
New Delhi: International Bank for Reconstruction and Development (IRBD), part of the World Bank Group, signed an agreement with the Union government on Friday to lend $650 million to the Dedicated Freight Corridor Corporation of India (DFCCIL) for its Eastern Dedicated Freight Corridor (EDFC)-III project.
The project aims to enhance rail transport capacity, improve service quality and boost freight carriage on the 401-km- long Ludhiana-Khurja section of the Eastern Dedicated Freight Corridor, along with developing institutional capacity of DFCCIL to build, maintain and operate the entire Dedicated Freight Corridor network.
The project is set to directly benefit the power and heavy manufacturing industries located in the Northern and Eastern parts of India as these industries depend heavily on a smooth railway network for the efficient transportation of their raw materials along with the distribution of bulk processed commodities, semi-processed commodities and consumer goods. In addition to this, railway passengers would also be benefitted as the existing passengers lines would get decongested, said a statement by the ministry of finance.
The first two phases of the EDFC are already being implemented by the DFCCIL with the help of financial assistance provided by the World Bank in the form of loans worth $975 million and $1,100 million respectively, for the Dadri-Khurja-Kanpur; and Kanpur-Mughal Sarai stretches of the Eastern Rail Corridor.