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Business News/ Politics / Policy/  World Bank nod for $1.1 billion loan for rail corridor
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World Bank nod for $1.1 billion loan for rail corridor

Total loan commitment is $2.725 billion

The World Bank has agreed in principle to partly finance the Eastern Corridor project from Mughalsarai to Ludhiana. Photo: Hemant Mishra/MintPremium
The World Bank has agreed in principle to partly finance the Eastern Corridor project from Mughalsarai to Ludhiana. Photo: Hemant Mishra/Mint

New Delhi: The World Bank has sanctioned a loan of $1.1 billion for the construction of a 393 km double line between the Mughalsarai-Bhaupur section of the Eastern Dedicated Freight Corridor (DFC) project. The World Bank board, in a meeting held at Washington on 22 April, sanctioned the second phase loan of the $1.1 billion for construction of electrified double line between Mughalsarai-Bhaupur section of the Eastern DFC after completion of the process of project appraisal and loan negotiations, said a senior Dedicated Freight Corridor Corp. (DFCC) official.

The loan agreement for the second phase is expected to be signed in June 2014. The World Bank has agreed in principle to partly finance the Eastern Corridor project from Mughalsarai to Ludhiana, which has been divided into three phases. The total loan commitment is $2.725 billion, out of which the loan for the first phase was to the tune of $975 million. It was sanctioned in May 2011 and the loan agreement was signed in October 2011. DFCC, a special purpose vehicle (SPV), is engaged in planning, construction, operation and maintenance of the dedicated freight corridors and in the first phase, the two corridors, namely, the Eastern Corridor from Ludhiana to Dankuni (1,839 km) and the Western Corridor from Dadri to Jawaharlal Nehru Port, or JNPT (1,499 kms), are being constructed. The entire Western Corridor is being funded by Japan International Cooperation Agency (JICA), while the Eastern Corridor from Mughalsarai to Ludhiana is being funded by the World Bank.

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Published: 23 Apr 2014, 11:39 PM IST
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