World Bank okays $650-mn loan to eastern freight corridor.

The World Bank on Wednesday said it has approved a $650 million debt funding for a part of the eastern arm of the ambitious Dedicated Freight Corridor (DFC) project.

The loan, which comes with a 22-year maturity period, is expected to help in faster and more efficient movement of raw materials and finished goods between the northern and eastern regions.

The Eastern Dedicated Freight Corridor is to be 1,840 km long, from Ludhiana to Kolkata. The World Bank is supporting the EDFC as a series of projects in which three sections with a total route length of 1,146 km will be implemented.

The third tranche of the World Bank loan EDFC 3 approved today will help build the 401 Km Ludhiana-Khurja section spanning Uttar Pradesh, Haryana and Punjab. The Project will help increase the capacity of these freight lines by raising the axle-load limit from 22.9 to 25 tons and enable speeds of up to 100 km per hour.

'Implementing the Dedicated Freight Corridor program will provide India the opportunity to create one of the world's largest freight operations. The corridor, which will pass through states like Uttar Pradesh and Bihar, will benefit from the new rail infrastructure, bringing jobs and much-needed development to some of India's poorest regions,' said Onno Ruhl, World Bank Country Director in India. 'Moving freight from road to rail will also reduce the carbon footprint of freight by 2.25 times,' he added.

BS