New Delhi: India and Japan on Tuesday decided to work out all logistical and funding issues related to the western Dedicated Rail Freight Corridor with an aim of implementing its first phase next year.
A joint statement issued after talks between Prime Minister Manmohan Singh and his Japanese counterpart Yukio Hatoyama, said the two leaders will work together for conclusion of the agreement for the main loan for the first phase by March 2010.
The main loan amount for the 900-km long first phase of the project from Rewari in Haryana and Vadodara in Gujarat is Rs17,700 crore, mainly from Japan.
“Both sides will strive for early finalisation of a funding and implementation schedule for the whole western corridor (that covers a distance of 1,483 km from Jawaharlal Nehru Terminal in Mumbai to Tughlakabad in Delhi via Maharashtra, Haryana, Rajasthan and Gujarat.)
“We have decided to finalise all details for phase I within the next few months, so that actual implementation can begin in 2010 itself,” Singh said.
“We also endorsed the plan to take the Delhi-Mumbai Industrial Corridor project forward,” he said, adding both the projects will have a significant positive impact on the Indian economy and on the scale of economic cooperation with Japan.
The second phase would involve an investment of about Rs8,424 crore.
Japan has already signed an agreement with India for
providing an engineering loan of Rs130 crore in October for the first phase construction between Rewari and Vadodara.
“This is an important project and it will help business and economy to grow,” Railway Minister Mamata Banerjee said.
“We are also expediting the Eastern corridor of the DFC and for this, negotiations are going on for getting funds for it,” she said.