India’s freight network receives loan from Japan

The loan, worth $18.5 million, will develop India’s freight rail network.

It will help build 552km of rail track for freight traffic in the country’s ‘western corridor’ between Delhi and Mumbai. It is the second phase of the Japanese-Indian collaborative Dedicated Freight Corridor (DFC) project.

The total amount of ODA loan allocated to the DFC project is also among the largest in the world.

Both countries hope the cooperative implementation of the DFC project will become a new symbol of partnership.

A dedicated freight railway line will be constructed, complete with fully automated signals and communication systems, as part of the project.

It will also fund high-speed trains designed for freight transportation, as well as an initial review of the basic infrastructure design and tender preparation process.

SUPPORTING GROWTH

Since 1991, the volume of freight traffic in India has increased at a rate of 15 percent per year, prompting the Indian Government to ensure infrastructure is in line with growth.

The latest plan is to introduce high-speed freight trains and improved access to port facilities.

In 2005, the then-Japanese Prime Minister Junichiro Koizumi announced his Government’s intention to support the development of India’s western freight corridor through a Japanese ODA loan.

Following sustained support, it presented India with a $1 billion loan for the construction of the corridor’s first phase in 2009.

The DFC project is part of the Delhi-Mumbai Industrial Corridor (DMIC) initiative, set to become India’s largest industrial belt, promoting foreign export and investment – specifically from Japan.

Edited by Jennifer Denby

Links: www.jica.go.jp