Home breadcru News breadcru Logistics breadcru JICA grants ₹8.5K crore ODA loan for freight corridor project in India

JICA grants ₹8.5K crore ODA loan for freight corridor project in India

04 Apr '22
2 min read
Pic: Shutterstock
Pic: Shutterstock

Japan International Cooperation Agency (JICA) has signed an agreement with the government of India to provide an Official Development Assistance (ODA) loan of 130,000 million Japanese Yen (approximately ₹8,553 crore) for the ‘Dedicated Freight Corridor (DFC) Project (Phase 1) (IV)’.

The objective of the project is to cope up with increase in freight transport demand in India by constructing new dedicated freight railway system between Delhi and Mumbai, thereby promoting comprehensive regional economic development along the freight corridor as the backbone of Delhi-Mumbai Industrial corridor (DMIC) development plan.

Katsuo Matsumoto, chief representative, JICA India, said, "JICA is committed towards the development of infrastructure in transportation sector. The Western Dedicated Freight Corridor being developed by the project runs between Delhi and Mumbai and covers the areas where significant commercial and industrial development is seen. The Western DFC Project is an important part of the ‘Delhi-Mumbai Industrial Corridor (DMIC) initiative’, which is part of the Japanese-Indian collaborative Project aimed at comprehensive regional development. It will help to promote comprehensive regional economic development along the freight corridor in DMIC area."

In this project phase 1, a new 950km freight line (Rewari to Vadodara) connecting the major cities in Gujarat, Rajasthan and Haryana states is being constructed. The project will help in creating India's largest industrial belt in DMIC area by linking the industrial parks and harbours of the states between Delhi and Mumbai to promote foreign export and direct investment.

Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is the Executing Agency of the Project.

The ODA loan agreement was signed between Dr. C S Mohapatra, additional secretary, department of economic affairs, ministry of finance and Katsuo Matsumoto.

ALCHEMPro News Desk (KD)

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